Strategic Energy Resources Gears Up for Exciting Drill Campaign at Canobie
Strategic Energy Resources (ASX:SER) has announced significant progress at its Canobie Project in North West Queensland, with gravity modelling revealing multiple high-priority targets now ready for drill testing. The project, explored under a Farm-in and Joint Venture Agreement with Fortescue, is rapidly advancing toward a diamond drilling program scheduled to commence this quarter.
Gravity Survey Identifies Multiple Promising IOCG Targets
SER has completed a comprehensive 1,494-station ground gravity survey across the recently granted western tenement (EPM28864), successfully identifying several compelling targets for further investigation. The survey significantly enhanced the resolution of existing gravity data, reducing the previously sparse 2km spacing to a much more detailed 500m grid, with selected areas further infilled to 250m spacing.
This detailed gravity mapping has proven crucial in identifying four new prospects that warrant immediate follow-up. These targets are being evaluated for their potential to host significant Iron Oxide Copper-Gold (IOCG) mineralisation, particularly in proximity to the Gidyea Suture Zone – a crustal-scale fault system associated with several major copper-gold deposits in the region, including the Ernest Henry mine.
"The Canobie FJV team is eager to commence the next round of drilling given the encouraging results from the recent gravity modelling. With multiple priority targets identified and budgeted to test over the next twelve months, we are pushing to start drilling as soon as practical." – SER Managing Director Dr. David DeTata
Advanced Magnetotelluric Survey Now Underway
Following the successful gravity survey, SER has initiated a detailed full tensor, broadband Magnetotelluric (MT) survey across the four newly identified prospects. This advanced geophysical technique will characterise the electrical response of the basement rocks, specifically searching for conductive signatures that may indicate IOCG mineral systems.
To provide valuable geological context for the MT survey, an initial survey line is being completed over the previously drilled Apollo Bore Prospect, where earlier drilling intersected a magnetic body at 898m depth. This magnetic response was determined to originate from magnetite and pyrite-rich alteration zones – key indicators of potential IOCG systems.
Up to four additional MT lines will be completed over the new prospects, with modelling expected to be completed within the coming month. This data will be crucial in refining drill targets for the upcoming diamond drilling campaign.
What is Magnetotelluric (MT) Surveying?
Magnetotelluric surveying is a sophisticated geophysical method that measures natural variations in the Earth's electromagnetic field to map subsurface resistivity structures. Unlike other geophysical techniques, MT can penetrate to extraordinary depths – sometimes kilometres below the surface – making it particularly valuable for exploring deeply buried mineral systems like IOCGs.
The technique works by measuring electrical and magnetic field variations at the Earth's surface. These variations result from naturally occurring electromagnetic waves generated by lightning discharges and solar-terrestrial interactions. By analysing how these waves interact with subsurface materials of varying conductivity, geophysicists can create detailed models of the subsurface structure.
For investors, MT surveys represent a cost-effective method to refine drill targets before committing to expensive deep drilling programs. The technology is especially valuable in the Canobie Project area, where mineralisation is hidden beneath thick cover sequences, making traditional exploration methods less effective.
Diamond Drilling Program Set to Commence This Quarter
Site preparations for the upcoming diamond drilling program are now underway, with Native Title clearance expected to be completed in the coming weeks, followed by necessary earthworks. The Strategic Energy Resources Canobie Project drilling rig is scheduled to arrive later this quarter.
The drilling program represents a significant milestone in the Fortescue joint venture, which gives Fortescue the right to earn up to 80% interest in the Canobie Project by sole funding $8 million in exploration over a six-year period ending mid-2029.
Under the terms of the agreement, Fortescue may earn:
- 51% interest by incurring $4 million in exploration expenditure, including a minimum of 3,000m of basement drilling in the first three years
- An additional 29% interest (total 80%) by spending an additional $4 million on exploration over a further three years, including a minimum of 3,000m of basement drilling
To date, 1,467m of basement drilling has been completed under the joint venture, indicating steady progress toward the Stage 1 target.
Why Investors Should Pay Attention to SER's Canobie Project
The Canobie Project represents a compelling exploration opportunity for several key reasons:
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Strategic Location: Positioned in the undercover extension of the world-class Mt Isa Province, the project targets an area with limited historical exploration but high mineral potential.
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Strong Joint Venture Partner: The partnership with Fortescue provides significant funding support ($8 million) and technical expertise for exploring this challenging but potentially rewarding terrain.
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Systematic Approach: SER is employing a methodical, multi-stage exploration strategy using cutting-edge geophysical techniques to refine targets before drilling – maximising the chances of discovery while managing costs.
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Multiple Target Prospects: With four new priority targets identified through gravity modelling, the project offers multiple opportunities for success.
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Technical Validation: Previous drilling at the Apollo Bore Prospect encountered encouraging alteration typical of IOCG systems, providing technical validation for the exploration model.
The upcoming Strategic Energy Resources Canobie Project drilling program represents a critical phase for SER, with the potential to deliver significant news flow and value-creating discoveries in the months ahead. With preparations already underway and MT survey results expected soon, investors should watch closely for further updates on this promising copper-gold exploration play.
Ready to Join SER's Discovery Journey?
Discover more about Strategic Energy Resources' exciting Canobie Project and their upcoming drill campaign targeting multiple IOCG prospects in Queensland's highly prospective Mt Isa Province. As SER advances toward diamond drilling with strong backing from joint venture partner Fortescue, now is the ideal time to explore this compelling investment opportunity. For comprehensive information about SER's projects and to stay updated on drilling results, visit www.strategicenergy.com.au today.
