Loyal Metals picks up historic high-grade copper-gold mine

• LLM to acquire Highway-Reward copper-gold mine in Queensland
• The mine hasn’t been explored since 2005 and copper and gold prices have soared in the time thereafter
• LLM expects modern exploration may help make new discoveries

Special Report: Loyal Metals is acquiring one of the world’s highest-grade copper mines in the Highway Reward mine near Charters Towers in North Queensland.

The project boasts past production totalling 3.65Mt at 5.7% copper and 260,000t at 4.5 g/t gold.

No exploration has been conducted since operations ceased in 2005 – despite a ~700% increase in copper prices to A$8.45/lb and ~1256% increase in gold prices to A$5,006/oz since the 1997 feasibility study.

Loyal Metals (ASX:LLM) said the increased prices combined with the previous exclusion of gold in sulphides from the mine plan, highlighted the enhanced remnant copper-gold potential.

“The Highway Reward copper gold mine, considered one of the highest-grade copper mines in the world, is now primed for a revisit after 20 years of dormancy,” LLM managing director Adam Ritchie said.

“The granted mining leases of the Highway Reward mine provide an amazing speed to market opportunity – especially when both copper and gold are near all-time highs.

“The short-term and long-term opportunities at Highway Reward are exciting, considering the significant growth in commodity prices since the 1997 feasibility study.”

With over $4.4 million in funding, the company is well-positioned to revisit the high-grade mine by deploying modern exploration techniques.

New discoveries at higher prices

The company is confident there’s potential for new discoveries along strike and at depth, as previous mining only reached depths of 220 metres for open pit and 390 metres for underground operations – with limited exploration beyond mined zones.

“Copper is driving our electric future and gold continues to play an important role in our global economy,” Ritchie said.

“Whilst a lot has changed in the past 28 years, the unwavering demand for copper and gold has only intensified.

“This is truly an amazing opportunity to unlock and showcase the immense potential of this forgotten mine.

“With modern technology and innovative mining techniques, we believe the Highway Reward copper gold mine will provide exceptional value and returns to our Loyal shareholders.”

The company plans to look for copper-gold extensions to subvertical trends that may exist below current mining levels and will assess previously mined, copper-gold rich pipes along strike.

The plan is to use the latest innovations in exploration technology combined with the plethora of historical data Loyal will acquire along with the mine to generate new drill targets.

This article was developed in collaboration with Loyal Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.