Union Star Metals Advances Cobb Creek Nevada Gold Target in Q2 2026

Union Star Metals Sharpens Its Focus as Cobb Creek Targeting Advances in Q2 2026

Union Star Metals Limited (ASX: USM) used its Q2 2026 quarterly activities report to show a company narrowing its attention around one core exploration idea at the Cobb Creek Gold Project in Nevada. The update did not contain drilling results, but it did outline a more defined geological model, a newly prioritised concealed target, continued permitting work, and a leaner corporate structure as the company reduces exposure to non-core assets.

At the centre of the quarterly report is the identification of the Central Concealed Target at Cobb Creek. According to the report, this target sits beneath shallow volcanic cover and is supported by multiple datasets that point to the potential for a larger gold system than historical shallow drilling had previously tested.

A Concealed Nevada Gold Target Is Now the Main Technical Focus

In the quarterly update, Union Star Metals said the principal technical outcome of the June quarter was the definition of the Central Concealed Target in the central part of Cobb Creek. This area is interpreted as a priority because several independent exploration indicators converge in the same location.

Those indicators include:

• A substantial gravity low
• A broad annular thallium geochemical anomaly
• Interpreted structural corridors that may have allowed mineralising fluids to move through the system
• Historical gold occurrences and shallow drilling around the margins of the area

For investors, the importance of this lies in what has not yet been tested. According to the quarterly report, historical work at Cobb Creek was largely focused on shallow oxide mineralisation, including around the McCall deposit. The deeper geological source behind the gravity and geochemical responses under cover was not adequately tested by previous drilling.

That leaves Union Star with a clearer exploration gap to pursue. Rather than treating the project as a collection of isolated historical prospects, the company is now assessing whether Cobb Creek may host a broader concealed mineralised system at depth.

What Did the CEO Say About the Central Concealed Target?

"The identification of the Central Concealed Target is a direct outcome of the technical work completed over recent months and reinforces our belief that Cobb Creek has the potential to host a much larger mineralised system than previously recognised," said Lucas Stanfield, CEO of Union Star Metals.

Why Does the Cobb Creek Location Matter?

Cobb Creek sits within Nevada's Independence Trend, which the company describes as a prolific gold district hosting several mines and deposits. In the report, Union Star noted the project lies immediately north of Western Exploration's Aura Project and along the same regional structural corridor as the Gravel Creek and Doby Gorge gold deposits.

It is also located approximately 30 km south of First Majestic's Jerritt Canyon Mine and 35 km north of the Big Springs Mine. That does not confirm comparable mineralisation at Cobb Creek, but it does place the project in a district with known gold endowment and established geological fertility.

The company also highlighted the historical McCall deposit as evidence of an active gold system within the broader project area. Furthermore, the current model extends beyond that near-surface mineralisation and tests whether McCall may represent only one part of a larger system.

What the Planned DDIP Survey Means for Investors

Before drilling the Central Concealed Target, the quarterly report said the company is progressing planning for a Deep Dipole Induced Polarisation (DDIP) geophysical survey. This is one of the most important near-term technical steps for Cobb Creek.

How Does DDIP Geophysics Work?

Induced Polarisation, or IP, is a geophysical method that measures how rocks respond to an electrical current. Some rock types, particularly those containing sulphide minerals, can produce stronger electrical responses than surrounding rocks.

Why is that relevant to gold? In many gold systems, sulphide minerals occur alongside or near the gold-bearing fluids that moved through the rocks. An IP survey does not detect gold directly, but it can help identify subsurface zones that may be associated with mineralisation.

The deep dipole configuration is designed to look further below surface than standard IP layouts. At Cobb Creek, this matters because the target sits beneath volcanic cover and the company wants a better image of what lies underneath before committing to drilling.

Why Does This Survey Matter at Cobb Creek?

According to the report, the DDIP survey is expected to refine priority drill targets before drilling begins. This is a practical risk-reduction step. Instead of drilling blind into a covered target, the company is aiming to use geophysics to better define:

• The location of any conductive or chargeable bodies at depth
• The possible geometry of the target
• Which parts of the broader target area may be most prospective for a first-pass drill test

For investors, this kind of sequencing matters. A geophysical programme is typically far less expensive than a drilling campaign, and if it improves drill positioning, it may improve the efficiency of exploration spending.

It is also worth clarifying the key technical terms referenced throughout the report. A gravity low can indicate lower-density rocks at depth, sometimes linked to altered or intrusive geological bodies. A thallium anomaly is a surface geochemical signal that can occur around some Nevada gold systems. A structural corridor refers to faults and fractures that may have acted as pathways for mineralising fluids.

Geological Interpretation and Permitting Continue to Build Towards Drilling

The quarterly report made clear that the June quarter was focused on technical interpretation rather than field drilling. Union Star continued integrating historical drilling, surface geochemistry, gravity data and regional geology to refine its understanding of the relationship between the McCall mineralisation, the Central Concealed Target and the broader structural setting.

This appears to be shaping a more coherent project-wide model. According to the report, historical exploration was largely directed towards shallow mineralisation and did not fully assess concealed systems beneath cover or at depth.

At the same time, the company said it continued permitting and environmental activities at Cobb Creek. Ongoing engagement with regulatory authorities and environmental consultants is intended to support the next phase of exploration. The stated objective is to position Cobb Creek for:

• Completion and interpretation of the DDIP survey
• Continued permitting advancement
• Drill planning and target prioritisation
• Eventual maiden drilling

That sequence matters because it shows the company is still in the target definition and de-risking stage. Investors looking for immediate drilling news may need to wait, but the report frames the current work as preparation designed to improve the quality of future drill testing.

Portfolio Changes Are Reducing Non-Core Exposure

Outside exploration, the quarterly update also highlighted continued portfolio optimisation. The company is shifting away from a broader mix of Australian and Brazilian assets and moving toward a more focused United States precious metals strategy.

Post quarter end, Union Star announced a binding agreement to sell the Scanty Rare Earth Project in Brazil to Harvest Minerals Limited. According to the quarterly report, the consideration includes:

• An upfront cash payment
• Equity in Harvest Minerals
• Potential milestone payments linked to future development

The company also said the transaction transfers ongoing funding obligations associated with Scanty to the buyer, subject to completion conditions. From a capital management perspective, that is relevant because it may lower future cash commitments. Further changes include:

• Continued progress on the planned divestment of the Kalgoorlie Gold Project under a previously announced option agreement
• Relinquishment of the Gascoyne Project tenement E52/4066 during the quarter

Stanfield noted in the report that initiatives over the past 12 months had reduced monthly operating costs by removing spending linked to non-core assets, office facilities and corporate overheads. The result, according to management, is a leaner company with more of its available capital directed to US exploration.

Financial Position and Cash Runway

At 30 June 2026, Union Star Metals reported cash and cash equivalents of $601,000, down from $1.171 million at the start of the quarter.

The accompanying Appendix 5B showed:

Related party payments of $69,000 were described in the report as director fees, company secretarial and accounting services, administration services and consulting fees.

The estimated funding runway of 1.03 quarters triggered the disclosures required under ASX Listing Rule 5.3. The company addressed this directly in the Appendix 5B.

According to the filing, Union Star expects operating cash outflows to reduce as its portfolio rationalisation continues. In addition, the company said it is pursuing potential funding avenues including:

• Strategic partnerships
• Project-level funding arrangements
• Further portfolio rationalisation
• Equity capital markets if required

The directors stated that, after reviewing cash flow forecasts, they believe the company can continue operations and meet business objectives based on current cash resources, management of discretionary expenditure and expected access to additional funding. For investors, the funding position remains an important near-term consideration alongside the technical story at Cobb Creek.

Idaho Projects Remain Part of the Broader US Portfolio

Although Cobb Creek is clearly the flagship, the quarterly report also covered work at the company's two Idaho assets in the Central Idaho Gold Belt.

Colorado Gulch Gold Project

According to the report, Colorado Gulch hosts historically mined gold-bearing quartz vein systems and multiple mineralised structures identified by previous work. The company described it as an early-stage exploration opportunity that has not yet been systematically assessed using modern exploration methods. During the quarter, work focused on reviewing historical data and integrating geology into the broader US portfolio assessment.

Silver Star Project

Silver Star includes historical gold and silver workings in a prospective structural corridor hosting several significant gold deposits. The report said modern exploration has been limited to date. Union Star continued reviewing historical geological, geochemical and exploration data during the quarter to identify priority areas for future work. These projects may provide a pipeline of secondary opportunities, although the immediate market focus is likely to remain on Nevada.

What to Watch in the September 2026 Quarter

The next quarter has a defined list of planned activities, with the DDIP survey at Cobb Creek as the main technical milestone.

For the market, the key question is straightforward: will the geophysical survey strengthen the case for a maiden drill campaign at the Central Concealed Target?

That answer is still pending. However, the quarterly report shows Union Star Metals entering the next phase with a clearer technical priority, a narrower asset base, and a corporate plan centred on US precious metals exploration. If the upcoming DDIP work supports the geological interpretation, Cobb Creek could move from concept definition into drill-ready target testing over the coming quarters.

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