Horseshoe Metals Appoints Copper Expert to Launch DSO Operations

Horseshoe Metals Bolsters Leadership with Copper Expert to Accelerate DSO Operations

Horseshoe Metals (ASX: HOR) has appointed copper mining veteran Steve Sickerdick as General Manager of Oxide Copper Operations, signaling the company is on the cusp of commencing its Direct Shipping Ore (DSO) operations at the historic Horseshoe Lights Copper Gold Project in Western Australia.

Strategic Leadership Appointment Brings Decades of Copper Expertise

In a significant move to strengthen its operational team, Horseshoe Metals has secured the services of Mr. Steve Sickerdick, a copper processing specialist with an impressive 40-year career in the mining sector. Sickerdick's appointment comes at a crucial time as the company transitions from development to production at its flagship Horseshoe Lights project.

Sickerdick's track record includes developing and operating specialised copper processing facilities at prominent Australian mines:

• Designed and operated a modified heap leach plant for oxide copper ore at the Kanmantoo Copper Mine in South Australia
• Created and managed an SX-EW plant at Whim Creek in Western Australia that produced approximately 5.7 tonnes of high-grade copper cathode daily
• Implemented innovative solutions including a flooded leach system and a rotating copper precipitator at Kanmantoo to handle variable quality scrap steel

"We are delighted to welcome such an experienced operator as Steve Sickerdick to the team as we advance DSO mining operations at Horseshoe Lights. Steve brings to the table a wealth of relevant mining experience, having successfully implemented and operated tailored and profitable copper ore processing solutions at several well-known Australian copper mines," said Horseshoe Metals Director and CFO Kate Stoney.

Horseshoe Lights: A Historic Copper-Gold Asset Preparing for Rebirth

The Horseshoe Lights Project represents a significant copper-gold opportunity with a rich production history. The historic open pit operation, which ceased in 1994, produced:

• Over 300,000 ounces of gold
• 54,000 tonnes of contained copper
• Including 110,000 tonnes of Direct Shipping Ore grading between 20-30% copper

The project is already showing signs of momentum, with initial field personnel now on site conducting early access works in preparation for the DSO operation launch.

Understanding Direct Shipping Ore (DSO): A Path to Early Cash Flow

Direct Shipping Ore represents a strategic approach for Horseshoe Metals copper operations to generate early revenue with minimal processing requirements. DSO refers to high-grade mineral ore that requires minimal processing before sale to customers.

For investors, DSO operations offer several advantages:

1. Lower capital expenditure – Requires less upfront investment in processing infrastructure
2. Faster path to revenue – Can begin generating cash flow while larger processing facilities are developed
3. Reduced operational complexity – Simpler operations with fewer technical challenges
4. Market flexibility – Ability to capitalise on favourable commodity price environments

In the context of Horseshoe Lights, the historical DSO production graded between 20-30% copper, representing exceptionally high-grade material that can command premium prices in the market.

What is Direct Shipping Ore?

Direct Shipping Ore (DSO) refers to minerals that require minimal processing before they can be exported. For copper operations, this typically means high-grade ore that contains sufficient copper content to be economically shipped directly to smelters or refineries without extensive concentration or beneficiation processes.

The primary characteristics of DSO include:

• High mineral grade – Generally much higher than the average grade of the deposit
• Simple mineralogy – Typically oxide or near-surface minerals that are easily recoverable
• Minimal processing requirements – Often requiring only crushing, screening, and perhaps simple sorting
• Lower infrastructure demands – Can begin production without large processing plants

For Horseshoe Metals, the DSO strategy provides a means to generate cash flow from high-grade portions of the resource while developing longer-term plans for processing lower-grade material. Historical records indicate the exceptional quality of Horseshoe Lights' DSO, with grades of 20-30% copper, which is substantially higher than most operating copper mines globally, where grades typically range from 0.5-2%.

Geological Insights: The VMS Deposit Advantage

The Horseshoe Lights ore body is interpreted as a deformed Volcanogenic Hosted Massive Sulphide (VMS) deposit that has undergone supergene alteration. This geological characteristic is significant for investors to understand for several reasons:

• VMS deposits typically contain multiple metals (polymetallic), providing commodity diversification
• These deposits often form in clusters, suggesting exploration upside beyond the known resource
• The supergene alteration process has created a gold-enriched cap, enhancing the economic potential

The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation and features distinct mineralisation zones:

• Main Zone: A series of lensoid ore zones transitioning from gold-rich oxide to high-grade chalcocite and eventually massive pyrite-chalcopyrite at depth
• Northwest Stringer Zone and Motters Zone: Contains veins and disseminations of chalcopyrite and pyrite with oxide copper extensions

Understanding VMS Deposits

Volcanogenic Massive Sulphide (VMS) deposits are important sources of copper, zinc, lead, gold, and silver. They form on or near the seafloor through hydrothermal processes associated with submarine volcanic activity.

Key characteristics of VMS deposits include:

• Formation process: Created when hot, metal-rich fluids from volcanic activity are discharged onto the seafloor, where they cool and precipitate sulphide minerals
• Structure: Typically lens-shaped bodies of sulphide minerals that may be stacked or occur in clusters
• Metal zonation: Often display vertical and lateral metal zonation, with copper typically concentrated near the core (higher temperature zones) and zinc, lead, and precious metals in the periphery
• Alteration halos: Surrounded by distinctive alteration zones that can serve as exploration guides

The supergene alteration at Horseshoe Lights refers to near-surface chemical processes where primary sulphide minerals are oxidised and enriched by descending surface waters. This process often creates a gold-enriched cap (as seen at Horseshoe Lights) and zones of high-grade copper mineralisation, including minerals like chalcocite, which can contain up to 80% copper by weight.

Why Investors Should Track Horseshoe Metals

Horseshoe Metals presents a compelling investment case for several key reasons:

1. Near-term production catalyst: With DSO operations nearing start-up and personnel already on site, the company is positioned for an imminent transition to producer status

2. Proven resource with historical production: The project's history of producing high-grade copper and gold provides confidence in the resource quality

3. Strategic expertise: The appointment of Steve Sickerdick brings critical operational expertise precisely when needed for production launch

4. Copper market fundamentals: Copper continues to be essential for global electrification and renewable energy transition, with supply constraints supporting favourable pricing

5. Production optionality: The project offers multiple development pathways, with DSO representing an initial step toward potentially larger-scale operations

The company's strategic appointment of Steve Sickerdick is particularly significant given his specialised expertise in copper oxide processing. His track record of designing and operating tailored processing solutions for Australian copper mines is directly relevant to the planned operations at Horseshoe Lights.

Sickerdick's prior experience includes owning the Kanmantoo Copper Mine before its sale to Hillgrove Resources (ASX: HGO) in 2009, where he developed innovative solutions for processing oxide copper ore. His subsequent work at Whim Creek involved designing and operating an SX-EW plant that produced approximately 5.7 tonnes of high-grade copper cathode product daily.

As Horseshoe Metals advances toward copper production in a market hungry for new supply, investors have an opportunity to participate in a company at an inflection point—transitioning from developer to producer with a resource of demonstrated quality at the historic Horseshoe Lights mine.

With field personnel already mobilised and a copper processing expert now heading operations, Horseshoe Metals appears poised to execute its near-term production strategy while building a foundation for longer-term growth.

Interested in Capturing This High-Grade Copper Opportunity?

For investors seeking exposure to near-term copper production with a proven resource and strong leadership, Horseshoe Metals presents a compelling opportunity. With DSO operations imminent at the historic Horseshoe Lights Project and copper expert Steve Sickerdick now at the helm, the company is strategically positioned for growth. To learn more about this emerging copper producer and their high-grade project with historical production of over 54,000 tonnes of copper, visit Horseshoe Metals' website for investor information and the latest updates.