Redstone Completes 1,192m Deep Drillhole, Raises $490K for Exploration

Exploration Milestone at West Musgrave

Redstone Resources Limited (ASX – RDS) has successfully completed its deep diamond drilling program at the 100% owned West Musgrave Copper Project in Western Australia. The single drillhole, TLD005, reached a depth of 1,192 metres targeting the Chatsworth Prospect, located beneath the high-grade Tollu copper deposit.

The drilling aims to test a compelling geological theory – that the copper mineralisation at Tollu may be remobilised from a deeper, Voisey’s Bay style magmatic massive sulphide system rich in copper and nickel. This style of deposit is renowned for its high grades and significant scale, exemplified by the nearby world-class Nebo-Babel deposit owned by BHP, just 60 kilometres west of Tollu.

Encouraging Early Signs and Cost Efficiency

While assay results from the 214 half-core samples are pending and expected in August, initial geological observations have been described as encouraging by Redstone’s technical team. The company is awaiting detailed geochemical and mineralogical analyses before providing a comprehensive update.

Importantly, the drilling costs were substantially offset by a $220,000 grant from the Western Australian Government’s Exploration Incentive Scheme (EIS), reflecting confidence in the project’s potential and easing financial pressure on the company.

Supporting Infrastructure and Future Plans

Alongside drilling, Redstone completed heritage surveys around the Chatsworth and Forio Prospects, which are critical for planning potential follow-up Reverse Circulation (RC) drilling. These surveys ensure that future exploration respects cultural and environmental considerations, smoothing the path for ongoing work.

The company’s exploration model is underpinned by the region’s favourable geology, situated at a tectonic triple junction with structural features conducive to hosting significant magmatic sulphide deposits. This geological setting mirrors that of the famed Voisey’s Bay deposit in Canada, adding weight to Redstone’s exploration thesis.

Capital Raising to Fuel Exploration

To support its exploration activities, Redstone successfully raised $490,000 through a private placement to sophisticated and professional investors. The funds will primarily be directed towards advancing the West Musgrave project, including further drilling and evaluation. The placement includes an option component subject to shareholder approval, reflecting prudent capital management and investor engagement.

Redstone ended the quarter with a cash balance of $818,000, positioning it to continue its planned work programs without immediate funding concerns.

Broader Portfolio and Outlook

While the West Musgrave project remains the company’s exploration focus, Redstone also holds interests in the James Bay Lithium Projects in Canada (in a 50/50 JV with Galan Lithium) and the HanTails Gold Project near Kalgoorlie, Western Australia. No exploration activity was reported at these projects during the quarter, allowing the company to concentrate resources on its copper-nickel ambitions in WA.

As Redstone awaits assay results from its recent drilling, the market will be watching closely for confirmation of the presence of deeper, high-grade mineralisation that could materially enhance the project’s value and strategic importance.