Locksley Resources Secures Iron Duke Copper and Gold Project in Cobar NSW

Locksley Resources Secures High-Grade Copper and Gold Project to Strengthen Its Cobar District Footprint

Locksley Resources acquires Iron Duke copper and gold project in Cobar NSW, marking a significant step forward for the ASX-listed explorer. Through a binding option agreement, Locksley has secured 100% of the Iron Duke Copper and Gold Project in New South Wales, adding a high-grade, drill-ready asset to its growing Australian project portfolio. The move builds directly on the company's existing Tottenham Project in the Cobar region and comes structured in a way that limits upfront financial exposure while preserving meaningful exploration upside.

The Iron Duke acquisition adds a system with historical drilling intercepts exceeding 1.5% copper and 4.48 g/t gold, a historical inferred resource of 1.3 million tonnes at 1.0% copper and 0.6 g/t gold (JORC 2004, KBL Mining 2012), and a series of largely untested prospects sitting 2.5 km to the south of the main deposit.

Technical Director Ian Stockton commented: "Iron Duke presents a compelling high-grade copper and gold system with strong structural continuity and clear geological controls on mineralisation. Importantly, the acquisition has the potential to materially expand the Tottenham Project's mineral inventory, while also opening up significant exploration upside on the under-explored Iron Duke shear zone. In addition, the largely untested Christmas Gift workings represent a strong opportunity to expand the mineralised footprint."

What Is Iron Duke and Why Does It Matter?

The Iron Duke Project comprises two granted exploration licences — EL9191 (174 km²) and EL6064 (15 km²) — covering a combined 188.3 km² in New South Wales. The project sits within the well-known Cobar mineral district and hosts a copper-gold quartz-sulphide system within Girilambone Group sediments.

Mineralisation is interpreted as steeply dipping, shear-hosted lodes — a structural style associated with robust grade continuity at depth. Historical drilling has confirmed mineralisation over approximately 550 metres of strike, extending from near surface to depths of around 150 metres, with the system remaining open to the south and at depth.

Furthermore, the project is located within 15 kilometres of Locksley's Tottenham Project, creating a genuine opportunity for district-scale exploration coordination, including shared targeting strategies and longer-term development efficiencies.

The Historical Drilling Results at a Glance

Multiple high-grade drill intercepts have been reported at Iron Duke over successive exploration campaigns. The table below summarises the standout results from historical reverse circulation drilling:

Source: KBL Mining, referenced in Locksley ASX announcement 14 May 2026. Historical results reported under JORC 2004 and have not been independently validated by Locksley under JORC 2012.

Surface rock chip and mine dump sampling by prior explorer Sky Metals returned copper values of up to 26.1% Cu, with 11 out of 21 samples exceeding 1% copper — a striking surface expression that underscores the richness of the underlying mineralised system.

Understanding the Mineralisation Type: Shear-Hosted Lodes

What Are Shear-Hosted Lodes?

Shear-hosted lodes are mineral deposits formed when metal-bearing fluids migrate through fault or shear zones in the Earth's crust. As these fluids cool and react with surrounding rocks, metals like copper and gold precipitate out and concentrate within the shear structure.

Why Does This Matter to Investors?

Shear-hosted systems often exhibit strong grade continuity along their length and depth, which can support resource growth with systematic drilling. The steeply dipping geometry at Iron Duke means the system extends at depth — drill holes designed to test below the current resource have the potential to add significant tonnage.

This deposit style is well understood by the industry, which supports the reliability of historical exploration interpretations and the predictability of where new mineralisation may occur.

Glossary of Key Terms

A Deal Structured to Protect Capital

One of the more investor-friendly aspects of this announcement is the transaction structure itself. Rather than committing to a large upfront payment, Locksley has negotiated a milestone-based acquisition that keeps financial risk proportionate to exploration progress.

The total acquisition outlay is capped at $1.1 million in consideration, with a significant portion only triggered if a material resource milestone is achieved. Consequently, this structure means shareholders gain exposure to exploration success at Iron Duke without bearing the full cost burden before the value is demonstrated.

Immediate Drill-Ready Targets Beyond the Known Resource

While the Iron Duke mine site has seen meaningful historical drilling, the broader tenement package remains substantially underexplored. Four prospects — Christmas Gift, Monarch, Mount Pleasant, and Silver Lining — sit approximately 2.5 km to the south of the main Iron Duke deposit and are largely untested by modern drilling techniques.

These represent immediate, high-priority targets for Locksley's initial 2,000-metre drill programme. The structural corridor connecting these workings to the Iron Duke system suggests potential for the discovery of additional lode development beyond the currently defined mineralisation.

This is particularly significant because the existing resource estimate was derived from just 11 RC holes totalling 704 metres drilled by KBL Mining in 2012 — a relatively limited programme by modern exploration standards. There is, however, ample scope for resource expansion through systematic step-out and depth extension drilling.

What Comes Next: The Exploration Pathway

Locksley has outlined a clear, sequenced set of near-term activities following the announcement:

The company intends to complete due diligence on the Iron Duke tenements and formally exercise the option within the 9-month window. The initial 2,000-metre drilling programme will target both resource extension at the main Iron Duke deposit and the untested southern prospects, with validation of historical data against current JORC 2012 standards to establish a compliant resource base.

How Iron Duke Fits the Broader Locksley Strategy

It is important to note that while Iron Duke represents a meaningful addition to Locksley's Australian asset base, the Mojave Project in California remains the company's primary strategic focus. The Mojave Project targets rare earth elements and antimony as part of a mine-to-market strategy for critical minerals aimed at U.S. domestic supply chains.

Iron Duke is positioned as a complementary copper and gold asset that enhances the value proposition at Locksley's Tottenham Project without diverting resources from the flagship. The milestone-structured acquisition cost and the minimum 2,000-metre drilling commitment reflect a disciplined approach — getting boots on the ground to test real targets without overcommitting capital.

The proximity of Iron Duke to Tottenham (within 15 km) creates genuine potential for operational synergies. Exploration data, geological models, and contractor relationships can be leveraged across both projects, improving the cost efficiency of running a district-scale programme.

Why Investors Should Pay Attention

Locksley Resources acquires Iron Duke copper and gold project in Cobar NSW as part of a broader strategy that offers several distinct points of interest for investors tracking copper and gold exploration. In summary, the key reasons include:

• High-grade foundation. Historical intercepts of up to 24–31 metres at grades consistently above 1% copper, with gold credits in several holes, indicate genuine grade quality in this system.

• Resource growth potential. The existing historical resource of 1.3 Mt at 1.0% Cu was based on limited drilling. With 550 metres of confirmed strike and an open-ended system at depth, the resource growth pathway is clear.

• Untested southern targets. The Christmas Gift, Monarch, Mount Pleasant, and Silver Lining prospects 2.5 km to the south represent an entirely fresh exploration opportunity within the same structural corridor.

• Capital-disciplined deal structure. The $100,000 option fee and milestone-linked acquisition terms mean shareholders are not exposed to large upfront costs before the asset proves its worth.

• District-scale positioning. Owning two proximate copper-gold projects in the Cobar region — one of Australia's historically significant mineral districts — builds a coherent exploration strategy with long-term development optionality.

• Dual-listed platform. Trading on ASX, OTCQX, and FSE gives Locksley access to multiple investor markets, supporting broader institutional and retail awareness.

Key Takeaway: Locksley Resources has moved decisively to secure a high-grade copper and gold asset in one of Australia's most prospective mineral districts, structured in a way that limits downside while preserving substantial upside. With a 2,000-metre drill programme planned and multiple untested targets awaiting the bit, Iron Duke is shaping up as a near-term exploration catalyst for investors tracking LKY's evolving project portfolio.

Important Note on Historical Data: The Mineral Resource Estimate of 1.3 Mt at 1.0% Cu and 0.6 g/t Au was prepared by KBL Mining Limited in 2012 under the JORC 2004 Code. This estimate has not been updated to comply with JORC 2012 and has not been independently validated by Locksley. Investors should note that confidence in these historical results may be revised following further evaluation and modern drilling. The historical drilling intercepts cited are drawn from previous public announcements by KBL Mining and Sky Metals and are similarly subject to this cautionary note.

Ready to Explore Locksley Resources' Growing Cobar District Portfolio?

With a high-grade copper and gold acquisition structured to limit downside and a 2,000-metre drill programme targeting multiple untested prospects, Locksley Resources (ASX: LKY) is building a compelling district-scale story in one of Australia's most historically significant mineral regions. To learn more about the Iron Duke Project, the Tottenham Project, and Locksley's broader strategy, visit the company's official website at locksleyresources.com.au.