Metals Australia (ASX: MLS) has received the green light for a fresh exploration campaign at its Warrego East copper-gold project in the Tennant Creek Mineral Field (TCMF), Northern Territory. This milestone comes alongside a significant development in the region: an $82 million acquisition by Pan African Resources, a UK-listed company, of Tennant Consolidated Mining Group (TCMG), which holds tenements adjacent to Warrego East. The move has brought a renewed spotlight on Tennant Creek, a historically productive but largely underexplored mineral field that may yet harbour significant mineral wealth.
What’s on the Cards at Warrego East?
With regulatory approval from the Northern Territory Government, Metals Australia is preparing to launch a comprehensive exploration program at Warrego East. The campaign will prioritise targets along a key geological corridor that links Warrego to the Gecko and Orlando copper-gold deposits, noted for their similar mineral characteristics. The Warrego mine itself, adjacent to Warrego East, produced nearly 5 million tonnes at an impressive 2.0% copper and 8 g/t gold over its life. Metals Australia’s focus will be on gravity and magnetic anomalies within this corridor, which could indicate ironstone-hosted copper-gold deposits.
CEO Paul Ferguson underscored the importance of the Pan African transaction in highlighting the region's potential, describing it as a “clear show of confidence” by a major player. "With a market cap of more than $1 billion, South African-based Pan African Resources has recognised the potential of this underexplored region to host significant mineral resources," Ferguson noted. This vote of confidence, he added, bodes well for Metals Australia’s own exploration in the area.
The Exploration Roadmap
The Warrego East tenements sit on shallow soil cover, which means these areas have yet to be extensively explored using modern techniques. Metals Australia plans to commence aircore drilling as soon as land access agreements are secured, with an eye to testing gravity and magnetic anomalies identified within the Warrego-Gecko/Orlando corridor. Anomalies in these regions have shown similarities to known deposits, fuelling the company’s hopes for Tennant Creek-style discoveries.
Should aircore drilling yield promising signs, Metals Australia intends to follow up with more targeted methods, including reverse circulation and diamond drilling, to better define potential resources. The goal: unearth a new copper-gold deposit similar to the historical Warrego and Gecko mines. Metals Australia’s exploration will also leverage reprocessed magnetic imagery, which has shown a string of magnetic anomalies within the company’s tenements that align with the known structural trend.
Why Tennant Creek?
The Tennant Creek Mineral Field has a rich mining history, having produced 25 million tonnes at 6.9 g/t gold and 2.8% copper. Yet, less than 10% of past drilling in the area has ventured deeper than 150 metres. The Warrego mine itself was initially identified in 1956 as a magnetic anomaly beneath the surface cover, underscoring the potential of advanced geophysical techniques in uncovering new resources.
By honing in on the Warrego-Gecko/Orlando corridor, Metals Australia is zeroing in on some of the most prospective ground in the region. Recent exploration by other companies in this belt, including Emmerson Resources, has yielded high-grade mineralisation, further highlighting Tennant Creek’s potential.
A Broader Portfolio of Ambitions
While the Warrego East project is a priority, Metals Australia is not a one-project outfit. The company has been busy across multiple fronts, with exploration campaigns recently completed or underway at projects in Canada and Western Australia. These include its flagship Lac Carheil high-grade flake-graphite project in Quebec and lithium and base metal projects near James Bay, Canada.
This diversified portfolio of critical minerals and metals assets aligns with growing demand from the electric vehicle and green energy sectors. Metals Australia’s Canadian graphite assets, for example, are well-positioned to supply the North American market as demand for lithium-ion battery materials surges. Locally, the company’s Manindi project in WA has shown promise with recent high-grade lithium intersections, and further drilling is underway.
Investors Watching for Results
With Pan African’s hefty investment sparking new interest, Tennant Creek may see a surge in exploration and potentially new discoveries. Metals Australia’s planned work at Warrego East could turn up new deposits that add significant value, not only to its own portfolio but to the mineral field’s standing as a copper-gold district of note.
As Metals Australia begins drilling, both the company and its investors will be eagerly awaiting results. The program is set to begin in earnest, weather permitting, as soon as the remaining land access permissions are finalised. A successful campaign at Warrego East would be a feather in Metals Australia’s cap, bolstering its reputation as an active and diversified player in high-potential mining jurisdictions across Australia and Canada.
