Canobie Drilling Underway: Will Strategic Energy’s JV with Fortescue Deliver a Major Copper Discovery?
Strategic Energy Resources has kicked off a fully funded 2,000-metre diamond drilling program at its Canobie Project in Queensland, targeting major copper-gold mineralisation under a joint venture with Fortescue.
- 2,000m diamond drill program underway at Canobie Project
- Drilling targets two priority IOCG anomalies, Charcoal Bore and Wills prospects
- Fortescue can earn up to 80% interest by funding exploration over six years
- Program fully funded under Farm-In and Joint Venture agreement
- Assay results from related North Isa drilling expected mid-November; Canobie results mid-December
Strategic Energy Advances Canobie Exploration
Strategic Energy Resources Limited (ASX – SER) has commenced a significant 2,000-metre diamond drilling campaign at its Canobie Project in Queensland. This program is part of a Farm-In and Joint Venture (FJV) agreement with Fortescue Ltd, which allows Fortescue to earn up to an 80% interest by funding exploration activities over six years. The Canobie Project is strategically located northwest of the Ernest copper-gold mine, within a region known for its iron oxide copper-gold (IOCG) mineralisation potential.
Targeting High-Priority IOCG Anomalies
The current drilling focuses on two geophysical targets identified through combined gravity and magnetic surveys – the Charcoal Bore and Wills prospects. Both targets exhibit strong coincident anomalies suggestive of pipe-like mineralised bodies extending several hundred metres below surface. Charcoal Bore is modelled as a magnetite-rich cylindrical pipe with a vertical extent of approximately 500 metres, while Wills features a broad semi-ovoid magnetic high with a modeled depth of up to 600 metres. These characteristics make them compelling targets for undercover copper-gold mineralisation.
Fully Funded Exploration and Strategic Partnership
The drilling program is fully funded under the terms of the Farm-In and Joint Venture agreement with Fortescue’s subsidiary FMG Resources Pty Ltd. Fortescue has committed to staged exploration expenditure, including a minimum $2.5 million and 3,000 metres of basement drilling in the initial two years, with the potential to increase its stake to 80% by funding further exploration. Strategic Energy will operate the exploration activities during the first stage, with an exploration committee overseeing progress.
Looking Ahead – Assay Results and Market Implications
Assay results from a recent two-hole diamond drill program at Strategic Energy’s North Isa Project are expected by mid-November, while results from the Canobie drilling are anticipated by mid-December. These results will be critical in assessing the potential for a major copper discovery at Canobie, which could significantly enhance the project’s value and Strategic Energy’s position in the copper-gold exploration sector. The partnership with Fortescue, a major player in the mining industry, adds credibility and financial backing to the exploration efforts.
Bottom Line?
As drilling progresses, all eyes will be on assay results that could unlock a major copper discovery in Queensland’s emerging IOCG province.
Questions in the middle?
- Will the assay results confirm the presence of economically viable copper-gold mineralisation at Charcoal Bore and Wills?
- How will Fortescue’s increasing stake influence Strategic Energy’s future exploration strategy and project control?
- What are the broader implications for Queensland’s IOCG exploration landscape if Canobie yields significant discoveries?
