Great Western Exploration Signs McKinlay Copper-Gold Earn-In Near Cloncurry

Great Western Exploration Moves into Cloncurry Copper-Gold Country with McKinlay Farm-In

Great Western Exploration (ASX: GTE) has signed a binding earn-in agreement to acquire up to 100% of the McKinlay Copper-Gold and Silver Project, located 80km south-east of Cloncurry in north-west Queensland. According to the ASX announcement, the project covers 180 square kilometres across two tenements and sits in the Mt Isa Eastern Succession, a geological belt that hosts several major Australian copper-gold and silver-lead mines.

The announcement matters because Great Western is entering the project through a staged, relatively low-cost structure. The company can earn an initial 51% interest by spending $500,000 on exploration and issuing 2,000,000 options to a Moffat Resources shareholder, with further stages linked to additional exploration spend and a later cash or scrip payment.

With $3.4 million cash at 30 June 2026, Great Western appears funded to begin the first phase if shareholders approve the deal at a general meeting scheduled for late September 2026.

McKinlay Sits in a Proven Copper-Gold and Silver-Lead District

In the announcement, Great Western placed heavy emphasis on project location. McKinlay is positioned in the same broader geological province as Ernest Henry, Eloise, Osborne, and Cannington, all well-known deposits in north-west Queensland.

That regional context is material for investors because these deposits were discovered beneath shallow cover, rather than from obvious mineralisation at surface. Great Western noted that the nearby deposits were identified from geophysical anomalies, particularly overlapping magnetic and gravity responses, which is also the exploration model being applied at McKinlay.

The project comprises EPM27957 covering 124 sq km and EPM27958 covering 56 sq km. Historical holders have included BHP, Aberfoyle, Ivanhoe Australia, Sandfire Resources, and Newmont, indicating longstanding industry interest in the ground. However, the bulk of the exploration work was completed in the 1980s and 1990s, with little on-ground activity in the past 25 years.

For investors, that mix can be attractive but also requires caution. The project is not a new conceptual land package, yet it has not benefited from sustained modern follow-up across its priority targets.

What Is an IOCG Deposit and Why Does It Matter at McKinlay?

A key part of the McKinlay story is the search for Iron Oxide Copper-Gold (IOCG) mineralisation. This is a style of deposit that can host large volumes of copper and gold and is particularly important in the Cloncurry region.

In simple terms, an IOCG deposit forms when hot fluids carrying metals move through deep structures in the crust and deposit copper, gold, and iron-rich minerals in favourable rocks. These systems often create strong magnetic and gravity signatures, which means explorers can frequently identify targets before drilling.

That matters at McKinlay because Great Western is not drilling blind. Furthermore, the company is targeting anomalies that match the regional discovery pattern seen at Ernest Henry and other deposits in the district.

The announcement also refers to Cannington-style or Broken Hill-type silver-lead targets in the southern part of the project. These are a different deposit style, generally linked to specific rock layers and structural settings, and can also be detected through a combination of geology and geophysics.

Why Do Investors Watch IOCG Targets?

IOCG systems can be large and long-life if discoveries are made at economic grades and scale. At McKinlay, the investment relevance lies in the combination of regional geological setting, historic drill support, and untested geophysical targets rather than any defined resource.

Historical Drilling Gives McKinlay a Stronger Starting Point

The ASX announcement outlined several named targets, with historical drilling already indicating copper, gold, silver, or lead anomalism. This is important because it reduces the project's reliance on purely conceptual targeting.

Deere

Deere is presented as the leading IOCG target. It is defined by a coincident magnetic and gravity anomaly, and Great Western interprets historical drilling to have hit the southern margin of a potentially larger Ernest Henry-style system.

The key historical result reported was:

• 28m @ 0.78 g/t Au and 632ppm Cu from 78m in hole ANP444

According to the announcement, there is no drilling for up to 1km north of that hole, leaving the core of the anomaly effectively untested. For investors, that gap is one of the more compelling aspects of the deal.

Dylans

Dylans is another Ernest Henry-style target based on its magnetic and gravity signature. Historical wide-spaced drilling returned several broad copper intervals:

• 66m @ 514ppm Cu from 50m, including 14m @ 1,130ppm Cu from 72m
• 24m @ 470ppm Cu from 54m
• 12m @ 505ppm Cu from 30m

These are not ore reserve-style grades, and the company does not present them that way. Their relevance is that they confirm copper is present within the target area and support further drilling of the broader anomaly.

Ventura

Ventura is described as an IOCG target with a coincident electromagnetic and magnetic anomaly beneath very shallow cover of about 2m to 3m. A surface copper soil anomaly has also been identified. Importantly, the basement beneath that cover has not been drilled, giving Great Western a relatively direct early-stage test using modern work methods.

Stellantis

At Stellantis, previous shallow drilling intersected copper and gold anomalism, including:

• 6m @ 0.11% Cu from 82m
• 6m @ 0.12% Cu from 0m
• 12m @ 0.15% Cu from 0m
• 4m @ 0.29 g/t Au from 20m

The announcement states that mineralisation remains open below and along trend, while a magnetic high to the north remains untested.

South Zone, South Sugarbag and Ridgeback

The South Zone includes both IOCG-style and silver-lead targets, with historical drilling returning results such as:

• 24m @ 472ppm Cu from 66m
• 34m @ 3.06 g/t Ag from 36m
• 10m @ 0.21% Pb

At South Sugarbag, Great Western highlighted the continuation of favourable host rocks from the known Sugarbag IOCG deposit area into McKinlay ground, with limited historical drilling completed within the project. At Ridgeback, mineralised shear-hosted copper has been drilled outside the project boundary, including 8m @ 0.3% Cu from 15m and 20m @ 0.14% Cu, with the interpreted structure extending into McKinlay tenure.

Nearby Brumby Result Provides Regional Context

Great Western also referenced AIC Mines' Brumby Prospect, located about 26km south-west of McKinlay and within the same broad stratigraphic package. AIC reported significant copper and gold results on 13 August 2026, and Great Western cited Brumby as support for using modern exploration methods in this part of the basin.

This is relevant because many historical programs in the district were completed before current geophysical processing, geological modelling, and targeting methods became standard. The comparison does not confirm McKinlay will deliver the same outcome, but it does support the company's rationale for revisiting underexplored anomalies.

Earn-In Structure Limits Upfront Cost While Preserving Exposure

The transaction is structured across three stages, giving Great Western considerable flexibility.

If Great Western reaches 100% ownership, Moffat Resources retains a 1% Net Smelter Return royalty. In addition, the agreement contains a withdrawal right, allowing the company to exit at any time before completing Stage 3, subject to notice requirements.

Management and Governance Detail

Moffat Resources is 50% owned by Great Western Managing Director Shane Pike, who acquired the McKinlay tenures before joining the company. Great Western stated that Mr Pike abstained from all board discussions regarding the transaction, which was negotiated by independent directors on an arm's length basis. Shareholder approval is required under ASX Listing Rule 10.1 because the acquisition is classified as a substantial related party transaction.

Planned Exploration Focuses on Near-Term Drill Testing

In the announcement, Great Western outlined a clear first-pass work programme to begin after completion of the acquisition, subject to shareholder approval. The planned activities are:

1. Ground gravity survey at Deere to refine the target before RC drilling
2. Aircore drilling at Ventura to test the anomaly below shallow cover
3. RC drilling at Stellantis and Dylans once permitting is complete

This sequencing is useful from an investor perspective because it shows a pathway from geophysical refinement to actual drill testing. It also means McKinlay could produce steady exploration newsflow if approvals and field execution proceed as planned. The company also noted that results from the Juggernaut Copper-Gold Targets at its Yerrida North Project in Western Australia are expected next month, adding another potential catalyst outside McKinlay.

What Should Investors Watch Next?

McKinlay gives Great Western exposure to a district with a strong geological track record; however, the investment case still depends on execution. Historical drilling has identified mineralisation and geophysical support, yet no resource has been defined and the key anomalies remain under-tested.

There is also a tenement timing issue investors should note. The project's first five-year term expires on 28 February 2027, when a compulsory 50% relinquishment is required under the Queensland Mineral Resources Act. Great Western stated there is no assurance that specific sub-blocks will be retained or regranted, which could materially reduce the project area.

Against that backdrop, the immediate points for the market are relatively clear:

• Late September 2026 shareholder meeting for transaction approval
• Commencement of ground gravity and drilling programmes
• Results from initial testing at Deere, Ventura, Stellantis and Dylans
• Any update on tenement retention ahead of the February 2027 deadline

For investors following ASX copper and gold explorers, the McKinlay farm-in stands out because it combines a recognised mineral district, multiple historic drill-supported targets, and a low initial entry cost. Whether that translates into a new discovery will ultimately depend on the company's ability to convert old anomalies into modern drill results.

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