Lightning Minerals Ltd (ASX:L1M, FRA:YZ1) earlier this week outlined accelerated exploration activity across its flagship northern Queensland projects during the June quarter, following a strategic reset focused on gold and critical minerals.
Managing director Troy Brice said the company had completed four field programs during the period, supported by petrology, geochemistry and geophysical work across the Mt Turner Gold Project and the Warby Tungsten Project.
Brice said the field and technical teams had worked productively to strengthen the company’s geological understanding of both projects.
“We’ve had a great few months,” he said, adding that the team had “aligned really well together” during an intensive period of exploration.
At Mt Turner, Lightning Minerals completed post-wet-season preparations ahead of Phase 2 drilling targeting gold and copper mineralisation. The work included replacing culverts, improving track access, preparing drill pads and positioning supplies close to the drilling area.
Brice said the company was awaiting mobilisation of the drill rig and that the site was ready for work to begin.
“The guys are good to go. We’ve got stores pre-positioned at the drill pads, so we can’t wait to pull the trigger on that,” he said.
The forthcoming drilling program represents a potential near-term catalyst, with assay results and further exploration updates expected following completion of the work.
Lightning Minerals also advanced exploration at Warby, where the company is assessing a tungsten opportunity near Mount Surprise. Brice said the project’s proximity to the company’s Georgetown base allowed Lightning Minerals to manage activity at Warby alongside work at Mt Turner.
The company plans to complete additional geophysics at Warby during the September quarter. Brice said the work would support deeper target generation ahead of potential tungsten drilling early next year.
Further catalysts are expected from the planned divestment of Lightning Minerals’ Canadian and Brazilian lithium assets. Completion of those transactions would allow the company to focus capital and management resources on its Australian portfolio.
Lightning Minerals also completed a strongly supported A$1.85 million capital raising during the quarter. Brice said the company intended to continue reducing corporate overheads while increasing its engagement with the investment community.
With drilling, geophysics, assay results and portfolio changes in progress, the company enters the September quarter with several operational and corporate milestones ahead.
Interview highlights
- Lightning Minerals completed four field programs during the June quarter.
- Technical work included petrology, geochemistry and geophysics across Mt Turner and Warby.
- Preparations for Phase 2 drilling at the Mt Turner Gold Project were completed after the wet season.
- Access tracks, culverts and drill pads were prepared, with supplies positioned near the drilling area.
- Mt Turner is being explored for gold and copper mineralisation.
- Exploration continued at the Warby Tungsten Project near Mount Surprise.
- Both projects can be supported from the company’s base in Georgetown, northern Queensland.
- Lightning Minerals completed a strongly supported A$1.85 million capital raising.
- The company progressed the divestment of its Canadian and Brazilian lithium assets.
- September-quarter work is expected to include geophysics at Warby, drilling progress at Mt Turner and assay results.
- The company also plans to reduce corporate overheads and increase investor engagement.
Proactive: Lightning Minerals accelerated exploration during the June quarter after completing a strategic reset focused on gold and critical minerals. Here to discuss the highlights of the quarter is managing director Troy Brice. Troy, good to see you again.
Troy Brice: Thanks, Jonathan.
Proactive: Let’s start with the key achievements for the quarter. Talk me through what the company achieved.
Troy Brice: We’ve had a great few months, Jonathan. The team has aligned really well and is working very productively across both the field and technical teams.
We kicked off the quarter with four field programs. We also received a University of New South Wales petrology report, which helped firm up our geological model in a practical sense, alongside the geochemistry and geophysics work at both the Mt Turner gold-copper project and Warby.
We’ve been really pleased with the results from what has been an intense period of activity.
Proactive: At Mt Turner, there is a Phase 2 drilling program to come. What are the main targets?
Troy Brice: That’s right. We’re ready to go and are waiting for the drill rig to mobilise very shortly.
All the post-wet-season work has been completed, including replacing culverts and preparing track access and drill pads. The team is ready to go, and we have stores pre-positioned at the drill pads, so we can’t wait to pull the trigger on that program.
Proactive: Plenty of work also took place at Warby. It is an exciting tungsten opportunity. Talk us through the work completed there.
Troy Brice: We’re fortunate to have two key projects targeting different commodities within driving distance of our central location in Georgetown, northern Queensland.
Mt Turner is only about 15 kilometres down the track, so accessing the gold and copper prospect and developing that project is an easy day trip for us.
The Warby Tungsten Project, out towards Mount Surprise, is a little further away but is still logistically well positioned.
We have been running concurrent and alternating programs across both commodities and projects. While waiting for results from one program, we have been initiating contractor support for the other. It has been a strong period of simultaneous activity across both projects.
Proactive: You also raised money and reset the portfolio. The June quarter was a significant one. What can investors expect during the September quarter?
Troy Brice: It was a strong capital raising and was well supported by our shareholders.
During the next quarter, we expect to wrap up the divestment of the international lithium assets. We will also continue to secure major reductions in corporate overheads and increase our engagement with the investment community across several fronts.
More importantly, on the operational side, we plan to complete geophysics at the Warby project to improve deeper target generation ahead of potential tungsten drilling early next year.
We will also progress Mt Turner. We expect assays and several other catalysts from those drilling programs in the near term.
There is a lot going on, but the team is well positioned to deliver it.
Proactive: It looks as though the September quarter will be just as busy as the June quarter. Thanks for your time this morning. We’ll speak again soon.
Troy Brice: Thanks, Jonathan.