Cosmo Metals Confirms Broad Gold Zone at Adder, Kanowna Project

Drilling Confirms Broad Mineralised Zone at Adder as Cosmo Tests Depth Potential Along the Kanowna Shear

Cosmo Metals Ltd (ASX: CMO) has reported assay results from two diamond drill tails at the Adder prospect within its Kanowna Gold Project (KGP) in Western Australia. The latest drilling indicates a broad gold-bearing zone at depth along a lightly tested section of the Kanowna Shear. The standout result came from hole ADRD003, which returned a broad interval of 31.1m at 0.33g/t Au from 189.9m, including 15.1m at 0.35g/t Au and 12m at 0.35g/t Au.

According to the ASX release, this new intersection sits about 100 metres down dip from a 2024 Cosmo hole, 24KGRC001, which returned 29m at 0.48g/t Au from 87m. For investors, that matters because it suggests the same mineralised corridor may continue vertically — an early but important sign when assessing whether a broader gold system could be defined with follow-up drilling.

The Kanowna Gold Project is located 13km north-east of Kalgoorlie and sits adjacent to Northern Star Resources' +7Moz Kanowna Belle gold mine. Cosmo's current work is focused on an underexplored section of a major regional structure that the company believes may host additional mineralised positions at depth.

"The drilling at the southern end of the Adder prospect adjacent to Kanowna Shear has identified a large mineralised system, confirming the concept that the Kanowna Shear and associated splays are conduits for gold mineralised fluids. Having confirmed the scale potential of the mineralised system, the next steps are to hone in on the structural and lithological traps within this sparsely tested section of the shear with scope to host higher grade mineralisation." — Managing Director Ian Prentice

What the Latest Drilling Results Indicate

The 2026 Adder programme comprised three widely spaced holes across a roughly 2km section of the Kanowna Shear. This included one standalone RC hole, ADRC001, and two RC pre-collars extended with diamond tails, ADRD002 and ADRD003.

Cosmo outlined that the southernmost hole, ADRD003, delivered the most meaningful result from the campaign. The intercepts are summarised below.

All reported widths are downhole widths, with true widths not yet established. The company stated that intervals were calculated using a 0.3g/t Au cut-off, with up to 2m internal dilution and no top-cut applied.

How Does ADRD003 Compare to the 2024 Intersection?

The significance of ADRD003 is not simply the grade. It is the position of the intersection relative to the earlier 2024 hit. In practical terms, the result suggests the mineralised black shale-hosted zone may persist to depth within the same structural corridor.

For an early-stage exploration target, continuity can be as important as grade because it helps narrow where the next round of drilling should be directed.

By comparison, ADRD002, drilled around 1.5km north-west of ADRD003, returned only 2m at 0.31g/t Au from the upper shear zone and no significant broader gold interval in the diamond tail. Even so, geological features such as black shales, quartz veining, pyrite and arsenopyrite were still present, which may help refine the search for better mineralised traps along the shear.

Why the Kanowna Shear Matters in Gold Exploration

A central part of this update is the geology. Why do companies place so much emphasis on a shear zone?

A shear zone is a major zone of rock deformation where movement has occurred over geological time. In gold systems, these structures can act as pathways for hot, metal-bearing fluids. If those fluids move into the right rock type, or slow down in the right structural setting, gold may be deposited.

At Adder, the Kanowna Shear cuts through the Panglo Basin, which contains sedimentary rocks including black shales, sandstones and conglomerates. These rocks sit above older granite and greenstone basement. This kind of geological contact can matter because contrasting rock types may create the physical and chemical conditions needed for gold to precipitate from fluid.

Key Technical Terms for Investors

For non-specialist investors, several technical terms in the report are worth understanding:

• Down dip means the direction a geological layer or structure continues as it angles deeper into the ground.
• Black shale is a fine-grained sedimentary rock that can be chemically favourable for trapping gold-bearing fluids.
• Arsenopyrite and pyrite are sulphide minerals often associated with gold systems.
• Pathfinder elements such as arsenic, antimony, bismuth and tellurium can help geologists track where mineralising fluids have moved.
• Diamond drilling provides rock core, allowing more detailed geological interpretation than chip-based drilling methods.

Furthermore, the report described the Adder target as prospective for orogenic gold — a common style of gold deposit formed during periods of crustal pressure and fluid movement, often along faults and shear zones. Importantly, the nearby Kanowna Belle mine is hosted within the same broader structural environment, although Cosmo has not stated that Adder is directly comparable in scale or grade.

Geological Observations Support a Larger Mineralised System

The core observations from ADRD003 provide more context than the assays alone. In the report, Cosmo described a progression of altered and mineralised rocks that appears consistent with a functioning hydrothermal system.

Key observations included:

• Hematite-stained grey and black shales with volcaniclastics from around 155m to 184m
• Late-stage arsenopyrite in that upper part of the diamond tail
• A discrete sheared zone between about 184m and 190m
• Widespread pyrite mineralisation in black and grey shale from around 190m to 228m
• A 1m at 0.51g/t Au interval at the base of a mixed shale and siliciclastic unit at 232.5m
• A polymictic conglomerate below that, with the hole completed at 270m

These details matter because broad mineralised systems are rarely judged on one interval alone. Geologists also look for alteration, sulphides, veining and structural disruption, as these features can indicate the presence of a larger mineral system even where grades vary from hole to hole.

In addition, the company noted that on-site portable X-ray fluorescence (pXRF) readings for pathfinder elements, combined with visible alteration and sulphides, were encouraging enough to extend ADRD003 beyond its original target depth. That suggests the decision to drill deeper was based on geological evidence observed during the programme.

How Much of the Target Area Remains Under-Tested?

One of the more important points in the ASX update is the amount of ground that remains lightly tested below shallow levels. According to Cosmo:

• The south-eastern ~5.5km section of the Kanowna Shear within KGP has been only sparsely tested below 100m vertical depth
• The north-western ~2.5km section is described as effectively untested
• There is negligible drilling below 100m vertical along the ~1.5km between ADRD002 and ADRD003
• The project contains more than 8km of strike along the Kanowna Shear

For investors, this creates two interpretations. On one hand, the project remains early stage, so there is still limited drilling support for continuity across the whole corridor. On the other, the lack of deep drilling means each successful intercept has the potential to materially improve understanding of the system.

What Happens Next at Kanowna and Across Cosmo's Portfolio?

The report stated that Cosmo is reviewing results from the recent Kanowna drilling campaign to define follow-up targets across the broader project area. The company's planned work includes:

1. Reviewing all 2026 drilling data to support follow-up targeting along the Kanowna Shear and Fitzroy Fault
2. Submitting 1m sub-samples from 2m composites at Laguna Verde for individual gold analysis
3. Completing multi-element analysis at Laguna Verde to support lithological interpretation and vectoring
4. Assaying 4m composite samples from upper parts of RC pre-collars not yet tested for gold
5. Advancing soil geochemistry and mapping at Antimony Gully within the Bingara Project in New South Wales
6. Progressing approvals and stakeholder engagement for first-ever drilling at the Mona copper-gold-silver prospect within the 20km Bingara VMS belt

Historic sampling from mullock dumps at Mona has returned grades of up to 4.93% Cu, 11.65g/t Au and 204g/t Ag, according to the announcement. These are historical surface-related results rather than drill intercepts, but they provide a basis for the current drilling preparation.

Cosmo also noted that its Bingara and Nundle projects in New South Wales cover about 743km², while the company's Yamarna Project in Western Australia contains the Mt Venn Cu-Ni-Co deposit.

How Should Investors Read Broad, Low-Grade Gold Intersections?

Broad gold intervals such as 31.1m at 0.33g/t Au can be difficult to assess without context. However, a lower grade does not automatically make a result unimportant.

In exploration, a broad lower-grade interval can still be useful if it does one or more of the following:

• Confirms a mineralised structure continues at depth
• Expands the known footprint of a targeted system
• Identifies the host rock and structural setting of mineralisation
• Provides vectors toward higher-grade zones nearby

That appears to be the main importance of ADRD003 in this report. The result is being interpreted less as a standalone economic statement and more as evidence that the Adder mineralised corridor remains open and coherent at depth.

Exploration Significance vs Development Significance

Investors should separate exploration significance from development significance. Exploration significance relates to whether drill results improve the geological model and justify more drilling. Development significance comes later and usually requires much denser drilling, resource estimation, metallurgical work and project studies.

At this stage, the Adder result appears to fit the first category. It adds confidence to Cosmo's geological interpretation of the Kanowna Shear but does not, on the information provided, define a resource or an economic deposit.

Why This Update Matters for CMO Shareholders

The latest Adder drilling update gives Cosmo a stronger technical basis for follow-up work at Kanowna. The company has now reported a broad mineralised zone in ADRD003 that appears to continue approximately 100m down dip from a previous 2024 intersection — an important step in testing continuity along a major regional gold structure.

The report also reinforces that much of the +8km Kanowna Shear corridor within KGP remains lightly tested below shallow depths. That leaves scope for additional targets to emerge as drilling and geological interpretation progress.

For the market, the immediate focus is likely to be on how Cosmo converts this geological evidence into sharper drill targeting. If future holes can identify stronger structural or lithological traps within the same corridor, the Adder Prospect could consequently become a more defined focus within the company's broader gold exploration strategy.

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