New Shallow VMS Target at Cleveland Raises Exploration and Resource Risks
Elementos Limited has pinpointed a significant shallow copper, gold, silver, and zinc target at its Cleveland Tin Project, leveraging advanced downhole electromagnetic survey data. The discovery lies just 70 metres below surface and is adjacent to previously reported high-grade mineralisation, prompting imminent drilling plans.
- Downhole electromagnetic survey reveals a shallow target 70m below surface
- Target located within 10-20m of high-grade copper, gold, silver, and zinc intercept
- Target modelled at ~60m depth extent and >80m strike, potentially extending beyond 150m
- Work Programme submitted to Mineral Resources Tasmania for follow-up drilling
- Potential new stratiform VMS-style mineralisation distinct from main tin-copper body
Discovery Context and Significance
Elementos Limited (ASX: ELT) has announced a compelling new target at its Cleveland Tin Project in Tasmania, identified through a downhole electromagnetic (DHEM) survey conducted in December 2024. This target is notable for its shallow depth, approximately 70 metres below surface, and its proximity to a previously reported high-grade copper-gold-silver-zinc intercept from the 2024 drilling campaign.
The DHEM survey, carried out on drill hole C2124, revealed a conductive plate interpreted to extend roughly 60 metres vertically and over 80 metres along strike, with potential to stretch beyond 150 metres when correlated with historic ground magnetic and airborne electromagnetic data. This multi-dataset convergence strengthens the geological confidence in the target's significance.
Geological Interpretation and Mineralisation Style
Managing Director Joe David highlighted that while precious metals are not currently the company’s core focus, the copper-gold-silver target's potential cannot be overlooked. The mineralisation style is interpreted as a shallow, stratiform volcanic massive sulphide (VMS) deposit, distinct from the main Cleveland tin-copper mineralisation which formed through hydrothermal replacement processes.
The high-grade intercept from drill hole C2123, 0.45 metres grading 9.7% copper, 5.15 g/t gold, 18 g/t silver, and 1.35% zinc, supports this interpretation. The mineralisation consists of semi-massive, laminated sulphides including pyrite, pyrrhotite, and chalcopyrite within fine-grained sediments sandwiched between mafic volcanic units.
Next Steps: Drilling and Exploration Plans
Elementos has submitted a Work Programme to Mineral Resources Tasmania aiming to mobilize drill rigs as soon as possible. The plan involves drilling 2-3 reconnaissance diamond holes to test the target’s thickness and orientation, critical parameters that the DHEM survey cannot resolve. These holes will be drilled to approximately 200 metres depth using HQ/NQ triple tube core to thoroughly evaluate the mineralisation.
This follow-up drilling is scheduled for February through April 2025 and will provide essential data to assess the target’s economic potential and its relationship to the broader Cleveland mineral system.
Strategic Implications for Elementos
The discovery of a new copper-gold-silver-zinc target adjacent to the existing tin-copper resources could materially enhance the Cleveland Project’s resource base and diversify Elementos’ commodity exposure. Given the global demand dynamics for copper and precious metals driven by electrification and green technologies, this target could add significant strategic value.
In addition, the identification of a potentially extensive VMS-style mineralisation lens opens new exploration avenues distinct from the main tin-copper mineralisation, underscoring the project’s exploration upside.
Bottom Line?
Elementos’ upcoming drilling campaign at Cleveland could redefine the project’s resource profile and broaden its commodity mix, setting the stage for a pivotal exploration phase.
Questions in the middle?
- What will the follow-up drilling reveal about the thickness and continuity of the new target?
- Could this copper-gold-silver-zinc mineralisation lead to a separate economic deposit alongside tin resources?
- How might this discovery influence Elementos’ strategic focus and capital allocation in 2025?
