Cosmo Metals Kicks Off First Drilling Campaign at Bingara in Nearly Three Decades
Cosmo Metals (ASX: CMO) has commenced its maiden drilling program at the 484.1km² Bingara Project in New South Wales, marking the first drilling activity in the area since the mid-1990s. The 13-hole, ~1,000m reverse circulation (RC) drilling program at the Spring Creek prospect aims to follow up on exceptional historical high-grade gold intersections.
The programme specifically targets the exceptional historical high-grade gold intersections, including 6.0m at 6.43 g/t Au from 8.0m, including 2.0m at 17.59 g/t Au from 12.0m. These remarkable results demonstrate the significant potential within this underexplored region.
The Spring Creek prospect sits strategically within the centre of the 12km-long Star of Bingara to Lone Hand Trend, with 4-5km of largely untested strike length extending both north and south. This positioning offers significant exploration upside in an area that has seen limited modern exploration.
High-Grade Gold Intersections Drive Drilling Strategy
The current Cosmo Metals Bingara drilling program specifically targets some of the most promising historical intercepts recorded at Spring Creek. These intersections provide compelling evidence of the mineralisation potential in the area.
| Drill Hole | Intersection | Grade (g/t Au) | Higher Grade Intervals |
|---|---|---|---|
| SC17 | 6.0m from 8.0m | 6.43 g/t Au | 2.0m at 17.59 g/t Au from 12.0m |
| PDHSC10 | 6.0m from 19.5m | 2.97 g/t Au | 3.0m at 5.51 g/t Au from 19.5m |
| SC26 | 8.0m from 1.0m | 2.83 g/t Au | 5.0m at 3.60 g/t Au from 4.0m |
| SCDH3 | 14.0m from 19.0m | 1.53 g/t Au | 5.0m at 2.45 g/t Au from 23.0m |
Historical drilling has been predominantly shallow, with 45 holes totalling just 1,737.2m at an average depth of only 38.6m. This shallow historical drilling presents a significant opportunity for Cosmo to test for steep dipping feeder zones that previous drilling would not have intersected.
Furthermore, the limited depth of historical exploration suggests substantial untested potential at greater depths. The company's approach to target deeper structures represents a logical evolution of the exploration strategy.
What Did the Managing Director Say About the Programme?
Managing Director Ian Prentice commented: "The start of our maiden drilling campaign at Spring Creek, one of the few areas at Bingara to have been subject to previous drilling, is an important milestone for Cosmo and we are very excited to be following up on the wide, shallow, high grade gold intersections returned from that drilling as well as testing the southern extensions of the known Spring Creek mineralisation as a first step in unlocking the potential of this high conviction target."
Understanding Orogenic Gold Systems: Why Structure Matters
Orogenic gold deposits represent one of the most significant gold deposit types globally, typically forming during mountain-building events when gold-bearing fluids are channelled along major fault systems. These deposits often feature a combination of low-grade bulk tonnage mineralisation and high-grade structural zones.
The Bingara Project straddles the regional-scale Peel Fault in the New England Orogen, a major structural feature that has historically been associated with gold-antimony and copper mineralisation. Orogenic gold systems often exhibit feeder zones – steep-dipping structures that channel mineralising fluids upward into shallower, more gently dipping ore zones.
Why Does This Matter for Investors?
Orogenic gold systems can deliver both immediate high-grade targets and long-term bulk tonnage potential. The identification of feeder zones often leads to discovery of much larger mineralised systems than initially apparent from surface or shallow drilling.
Additionally, these systems typically demonstrate excellent continuity and predictability once the structural controls are understood. This characteristic makes them particularly attractive for resource development and mining operations.
Strategic Drilling Programme Design
The current 13-hole RC drilling program has been strategically designed to address three key objectives. However, the programme's systematic approach reflects careful consideration of the geological setting and historical results.
What Are the Primary Targets?
The drilling programme focuses on several critical areas:
- Follow-up drilling on southern-end intersections with demonstrated high-grade gold
- Steep feeder zone testing in positions not tested by historical shallow drilling
- Southern extension evaluation of shallow east-dipping mineralisation associated with strong gold-arsenic soil anomaly
Technical Programme Parameters
The programme specifications demonstrate a well-planned approach to testing the mineralisation:
- Hole depths: 30m to 130m
- Drilling method: Reverse Circulation (RC)
- Total meters: ~1,000m across 13 holes
- Results expected: Late November 2025
The gold mineralisation at Spring Creek consists of a 1-14m thick shallow easterly dipping sheet that daylights to the west, currently defined over a ~350m north-south strike and up to 65m wide zone. Critically, mineralisation has only been tested to a maximum depth of 36 metres below surface.
Geological Setting and Exploration Upside
The Bingara Project is located within the New England Fold Belt, a complex tectonic collage that hosts multiple deposit styles. The project area demonstrates exceptional geological diversity and mineralisation potential.
What Makes the Structural Framework Significant?
The structural setting provides several advantages for mineralisation:
- Position along the Peel-Manning Fault System (270km strike length)
- Juxtaposition of contrasting geological terranes
- Historical production from gold, mercury, antimony, and copper deposits
Which Mineralisation Styles Are Present?
The project area hosts multiple mineralisation styles, providing diversified exploration opportunities:
- Mother Lode-style orogenic gold systems with bulk tonnage potential
- Besshi-Cyprus style volcanic-hosted massive sulfide (VHMS) copper-gold-zinc deposits
- Fissure vein high-grade gold deposits
The 1.4km-long coherent gold-arsenic soil anomaly at Spring Creek extends well beyond areas of previous drilling, indicating significant strike potential. Historical soil sampling from 1984 and 1995 clearly outlines known gold mineralisation and untested extensions both north and south of previous drilling.
Investment Thesis: Three Decades of Exploration Gap
Cosmo Metals presents a compelling investment opportunity centred on systematic modern exploration of a historically productive but underexplored gold district. The company's approach represents a significant opportunity to unlock value through modern techniques.
Key Investment Drivers
| Factor | Opportunity |
|---|---|
| Exploration Gap | ~30 years since last significant drilling |
| Historical High Grades | Up to 17.59 g/t Au in shallow drilling |
| Strike Potential | 12km trend with 4-5km largely untested |
| Depth Potential | Maximum 36m depth testing to date |
| Multiple Deposit Styles | Orogenic gold and VHMS copper-gold |
What Are the Strategic Advantages?
The company's position offers several competitive benefits:
- 484.1km² of tenure in proven mineral district
- Modern exploration techniques applied to historical targets
- Advanced LiDAR interpretation completed in 2025
- Systematic approach to large-scale structural systems
The project's location along the Peel-Manning Fault System positions it within one of NSW's most significant mineral belts, with historical production from numerous gold, copper, and antimony operations dating back to the 1890s.
Why Should Investors Track This Gold Story?
Cosmo Metals has positioned itself as a systematic explorer of New South Wales' underexplored gold districts, with the Bingara Project representing a high-conviction opportunity to create significant value through modern exploration techniques. The company's methodical approach distinguishes it from speculative exploration plays.
Near-term Catalysts
Several upcoming milestones could drive share price performance:
- Drilling results expected in late November 2025
- Follow-up drilling programmes based on initial results
- Strike extension exploration along 12km trend
- Depth extension drilling below historical 36m limit
Long-term Value Drivers
The project offers multiple pathways to value creation:
- Resource definition drilling on confirmed high-grade zones
- Regional exploration across 484.1km² tenure
- Multiple deposit style targeting for diversified discovery potential
- Strategic positioning in proven NSW gold district
What Recent Corporate Actions Signal Confidence?
The commencement of Cosmo Metals Bingara drilling has triggered the conversion of second tranche performance shares, with 66.7 million fully paid ordinary shares to be issued to vendors. This action demonstrates confidence in the project's progression and alignment between management and shareholders.
Moreover, the timing of the drilling programme reflects careful consideration of seasonal conditions and logistical factors. The company's systematic approach to exploration activities suggests experienced management with realistic expectations.
The Cosmo Metals Bingara drilling represents a rare opportunity to apply modern exploration techniques to a historically productive gold district that has seen minimal exploration for three decades. With exceptional historical high-grade intersections, significant strike and depth potential, and systematic exploration approach, the Bingara Project represents compelling upside potential for investors seeking exposure to NSW gold discovery stories.
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