Redstone’s West Musgrave Drill Program Could Unlock Major Copper-Nickel Risk

Exploration Momentum Builds at West Musgrave

Redstone Resources Limited (ASX: RDS) has taken a significant step forward in its quest to unlock a major copper-nickel discovery at its 100% owned West Musgrave Copper Project in Western Australia. The company has commenced a deep diamond drilling program at the Chatsworth Prospect within the Tollu Copper deposit, aiming to test for a Voisey’s Bay-style magmatic massive sulphide system at depths of up to 1,200 metres.

This drilling initiative marks a critical phase in Redstone’s exploration strategy, seeking to validate a model where the high-grade copper veins at Tollu represent remobilised copper sourced from a deeper, large-scale magmatic sulphide accumulation. The geological setting of West Musgrave, positioned at a tectonic triple junction and intersected by major fault systems, is considered highly prospective for such deposits, drawing parallels with the world-class Voisey’s Bay deposit in Canada.

Strong Geological Indicators and Regional Context

Redstone’s prior drilling has confirmed high-grade copper mineralisation extending from surface to approximately 400 metres depth, with notable intercepts including 25 metres at 1.46% Cu and 10 metres at 3.4% Cu. The presence of cobalt alongside copper further supports the hypothesis of a magmatic sulphide source. Additionally, geophysical data reveals a deep-seated N-S Tollu Fault cross-cut by an E-W shear zone, potentially acting as conduits for mineralising fluids and sulphide accumulation.

Importantly, the proximity of the Nebo-Babel deposit, owned by BHP and located just 60 kilometres west, underscores the region’s capacity to host world-class nickel-copper-cobalt mineralisation. Nebo-Babel shares Voisey’s Bay characteristics, reinforcing Redstone’s confidence in the potential scale and quality of mineralisation at Tollu.

Funding Support and Upcoming Milestones

The drilling program benefits from a $220,000 Exploration Incentive Scheme (EIS) grant from the Western Australian government, significantly reducing the financial burden of this deep diamond hole. Redstone expects to report initial drilling results during the third quarter of 2025, a key catalyst for the company and its investors.

Other Project Updates: Lithium and Gold Ventures

Outside Australia, Redstone’s 50/50 joint venture with Galan Lithium Limited in the James Bay Lithium Projects in Québec, Canada, remained inactive during the quarter. The JV holds tenure adjacent to promising pegmatite discoveries by Patriot Battery Metals, but no fieldwork was conducted this period.

Similarly, the HanTails Gold Project near Kalgoorlie-Boulder, Western Australia, where Redstone holds an 80% interest under a farm-in and joint venture agreement, saw no exploration activity this quarter. The project remains under evaluation for future development potential.

Financial Position and Corporate Governance

Redstone reported a net cash outflow from operating and investing activities for the quarter, with cash and cash equivalents standing at $445,000 at period end. Payments to related parties amounted to $17,000, reflecting director remuneration. The company continues to manage its exploration expenditure prudently while advancing its key projects.

As Redstone embarks on this deep drilling campaign, the market will be watching closely for assay results that could redefine the company’s resource base and growth trajectory.