Cash Constraints Loom as SER Plans Aggressive Follow-Up at Achilles and Mundi

Drilling Success at Achilles 1 Prospect

Strategic Energy Resources (ASX: SER) has reported encouraging results from its December 2024 quarterly activities, highlighted by the completion of a 25-hole reverse circulation drill program at the Achilles 1 Prospect within its South Cobar Project in New South Wales. The program, spanning 4,254 metres, confirmed widespread polymetallic mineralisation including lead, zinc, silver, copper, and gold across 17 holes.

The mineralisation is associated with a sericite-pyrite-quartz alteration zone within intermediate volcanics and volcanoclastics, with notable intercepts such as 10 metres at 1.99 g/t silver and 0.68% combined lead and zinc from 85 metres. The mineralised zone extends over approximately 600 metres along a probable north-northwest striking trend, open to the north and along the Achilles Shear Zone, which connects to Australian Gold & Copper’s nearby Achilles 3 discovery.

Strategic Follow-Up Exploration Plans

Building on these results, SER is planning a second phase of exploration at Achilles, including detailed geological mapping and induced polarisation (IP) surveys aimed at identifying deeper, sulfide-rich bodies beneath cover. Additionally, soil sampling is scheduled for the Tooronga Prospect, another target within the South Cobar Project area, which remains largely underexplored.

Electromagnetic Survey Uncovers New Targets at Mundi

At the Mundi Cu-Au Project, also in New South Wales, a Moving Loop Electromagnetic (MLEM) survey has confirmed the presence of a major conductor at drillable depths. This conductor is spatially associated with reversely magnetised ovoid bodies interpreted as igneous intrusions, which are potential hosts for Iron Oxide Copper Gold (IOCG) mineralisation. The conductor’s conductivity and geometry are consistent with massive sulfide orebodies, making it a compelling target for further geophysical work and eventual drilling.

The Mundi Project covers over 1,300 square kilometres of the Curnamona Province, a region known for its mineral endowment, including Broken Hill-type deposits. The combination of MLEM and airborne magnetic surveys has allowed SER to refine its target models, with plans for additional ground EM and drone magnetics surveys to better define the conductor bodies before prioritising drill targets.

Financial Position and Corporate Overview

Financially, SER reported exploration and evaluation expenditure of $721,000 for the quarter, alongside employee and corporate costs of $144,000. The company ended the quarter with $1.316 million in cash, representing approximately 1.5 quarters of funding based on current expenditure levels. Management acknowledges the need to carefully manage cash flow and is actively considering fundraising and joint venture opportunities to sustain its exploration momentum.

Strategic Energy Resources continues to hold a significant equity stake in Ionic Industries, an unlisted graphene technology company, reflecting a diversified investment approach. The company’s portfolio spans multiple projects across Queensland, New South Wales, South Australia, and Western Australia, with a focus on undercover mineral exploration targeting world-class copper deposits.

Outlook

The recent drilling success at Achilles 1 and the geophysical breakthroughs at Mundi position Strategic Energy Resources well for advancing its exploration pipeline. The company’s methodical approach to follow-up work and its focus on high-potential polymetallic systems underscore its commitment to unlocking value in underexplored Australian mineral provinces.