Offtake Talks Heat Up Amid Drilling at Horseshoe Lights Copper-Gold Project
Horseshoe Metals has launched a new phase of reverse circulation drilling at its Horseshoe Lights Copper-Gold Project in Western Australia, targeting near-surface copper oxide and gold zones. Concurrently, the company is progressing offtake negotiations with major commodity traders.
- RC drilling underway at Motters Zone and gold targets west of Horseshoe Lights open pit
- Approximately 1,550 metres planned in phased drilling campaigns
- Mining proposal preparation for copper oxide and gold surface material processing ongoing
- Negotiations with multiple commodity traders for copper offtake and funding progressing
- Updated mineral resource estimates confirm significant copper and gold resources
Exploration Momentum Builds at Horseshoe Lights
Horseshoe Metals Ltd (ASX, HOR) has initiated a new round of reverse circulation (RC) drilling at its flagship Horseshoe Lights Copper-Gold Project in Western Australia. The current campaign focuses on infilling the near-surface copper oxide mineralisation at the Motters Zone and testing gold targets located west of the historic open pit. This drilling phase, comprising approximately 1,550 metres, is designed to refine the understanding of mineralisation extensions and support upcoming development plans.
The Motters Zone drilling is being conducted in close-spaced 10 by 10 metre patterns to a depth of about 50 metres, targeting the oxide to transitional mineralisation that extends from surface down to 40-60 metres. This area has shown promising copper grades in previous campaigns, and the current work aims to confirm and potentially expand these zones, particularly along a 300-metre strike length north of the eastern pit wall.
Gold Potential and Site Preparations
In addition to copper-focused drilling, Horseshoe Metals is testing a northwest trending structural zone west of the open pit where historic drilling intersected gold-only mineralisation. This strategic move could add a valuable gold component to the project’s resource base, enhancing its overall economic potential.
Supporting these exploration activities, site infrastructure upgrades are underway, including the mobilisation of a front-end loader to maintain access, prepare drill sites, and facilitate the start-up of direct shipping ore (DSO) operations this quarter. Concurrently, the company is preparing mining proposals for processing copper oxide surface material via heap leach methods and gold surface material, signalling a clear pathway toward near-term production.
Commercial Discussions and Resource Confidence
Horseshoe Metals is actively engaging with several well-known commodity traders to negotiate potential copper offtake agreements and funding arrangements. Site visits by prospective partners are scheduled to commence shortly, reflecting growing commercial interest in the project’s development prospects.
The announcement also reaffirms the robust mineral resource base at Horseshoe Lights, with updated estimates showing a total of approximately 128,600 tonnes of contained copper and 36,000 ounces of gold across measured, indicated, and inferred categories. The Kumarina Project, another asset in the company’s portfolio, also reports a solid inferred resource of 10,600 tonnes of copper, underpinning Horseshoe Metals’ broader exploration and development strategy.
These developments come amid a backdrop of ongoing exploration success and infrastructure recommissioning, positioning Horseshoe Metals to accelerate its DSO strategy and advance towards commercial production.
Bottom Line?
As drilling results and offtake negotiations unfold, Horseshoe Metals is poised to transform exploration progress into tangible production milestones.
Questions in the middle?
- What assay results will the current RC drilling campaign yield, particularly regarding copper grades and gold intersections?
- How will the ongoing offtake negotiations influence Horseshoe Metals’ financing and project development timeline?
- What are the next steps for advancing mining approvals and processing infrastructure following the mining proposal submissions?
