Redstone Resources Strikes High-Grade Copper at Record Depths: TLD005 Reveals Potential for Large-Scale Discovery
Redstone Resources (ASX: RDS) has delivered breakthrough exploration results from its West Musgrave Project in Western Australia, with deep diamond drill hole TLD005 discovering significant copper mineralisation 400 metres deeper than any previously recorded at the Tollu Deposit. This high-grade copper discovery by Redstone Resources Ltd suggests the copper system extends far beyond current understanding and may be connected to a much larger magmatic source.
The company's latest assay results reveal multiple high-grade copper intersections at unprecedented depths, with the deepest occurring over 800 metres below surface in previously unexplored territory. These discoveries mark a pivotal moment for Redstone's exploration strategy and could fundamentally reshape the scale and potential of the Tollu system.
Diamond Drilling Uncovers Multiple High-Grade Zones
Deep diamond hole TLD005 has delivered exceptional results across multiple zones, confirming copper mineralisation extends much deeper and more extensively than previously understood. According to the company's announcement, the high-grade copper discovery by Redstone Resources Ltd includes multiple significant intersections at varying depths.
New High-Grade Intersections:
- 1.8m at 2.5% Cu from 912.4m downhole
- 4m at 1.3% Cu from 1,048m downhole, including 1.6m at 2.7% Cu
- 10m at 1.37% Cu from 193m downhole (previously announced), including 4m at 2.37% Cu
The deepest intersection at 1,048m represents copper mineralisation occurring 400m deeper vertically than any previously recorded at Tollu. Significantly, this zone sits in complete isolation from known surface mineralisation, located approximately 130m south of the main Chatsworth Prospect.
| Depth Zone | Intersection | Grade | Comments |
|---|---|---|---|
| Upper Zone | 10m from 193m | 1.37% Cu | Previously announced |
| Middle Zone | 1.8m from 912.4m | 2.5% Cu | New discovery |
| Deep Zone | 4m from 1,048m | 1.3% Cu | Deepest ever at Tollu |
Additional anomalous copper intersections were recorded throughout the 1,195.5m drill hole at multiple depths, indicating the pervasive nature of the mineralising system.
Chairman Richard Homsany commented: "TLD005 has dramatically expanded the known limits of the Tollu Cu mineralisation, having intersected high-grade Cu mineralisation, some 400m deeper (vertically) and 130m south, in isolation of all known Cu mineralisation in the area of the Tollu Cu deposit."
Evidence Points to Magmatic Sulphide Source
One of the most significant aspects of TLD005 extends beyond the copper grades themselves. The drill hole has provided compelling evidence for a magmatic sulphide source underlying the Tollu system, potentially elevating the project's prospectivity to world-class status.
Key Geological Discoveries:
- Gabbro intrusion identified from 811m to end of hole, confirming mafic source rocks beneath Tollu
- Cobalt mineralisation shows strong association with sulphur in mafic samples, suggesting magmatic sulphide source
- Significant cobalt intersections: 1.1m at 0.11% Co from 728.3m and 0.6m at 0.076% Co from 1,048m
- Multiple cobalt anomalies biased toward deeper mafic rocks, supporting magmatic origin theory
The discovery of a substantial gabbro intrusion beneath the copper system aligns perfectly with Redstone's exploration model targeting Voisey's Bay-style magmatic Cu-Ni-Co-PGE deposits. This geological setting is identical to the world-class Nebo-Babel deposit located just 60km west of Tollu.
Understanding Magmatic Sulphide Deposits: A Primer for Investors
Magmatic sulphide deposits represent some of the world's most valuable and long-life mining operations, formed when sulfide-rich magmas cool and concentrate metals like copper, nickel, cobalt, and platinum group elements.
Why This Matters for Investors:
- Scale potential: These systems can host billions of tonnes of mineralised material
- Multiple commodities: Often contain valuable by-products (Co, Ni, PGE) increasing project economics
- Long mine life: Typically support decades of production due to their size
- Strategic metals: Cobalt and nickel are critical for battery technology and energy transition
Famous Examples:
- Voisey's Bay (Canada): One of the world's largest nickel-copper deposits
- Nebo-Babel (60km from Tollu): Major Cu-Ni-Co deposit owned by BHP
The evidence from TLD005 suggests Tollu could be the surface expression of a much larger magmatic system at depth, similar to these world-class operations.
Structural Controls and Exploration Implications
TLD005 encountered continuous structural disruption throughout its entire 1,195.5m length, indicating the copper-bearing structures extend much deeper than previously recognised. The drill hole, originally planned to test directly beneath the main Tollu deposit, veered 130m southwest due to challenging drilling conditions in this intensely fractured zone.
This deviation proved fortuitous, revealing:
- High-grade copper exists in completely untested areas south of known mineralisation
- The structural system hosting copper extends to at least 800m depth and likely beyond
- Surface expression may not be required for significant copper accumulations at depth
This high-grade copper discovery by Redstone Resources Ltd suggests multiple copper zones may exist throughout the broader structural corridor. Furthermore, surface geochemistry and limited historical drilling potentially missed significant buried mineralisation.
Government Support Fuels Expansion Plans
Redstone's exploration momentum is backed by substantial government co-funding, demonstrating external validation of the project's potential. This support significantly reduces exploration risk whilst accelerating the company's discovery timeline.
Recent Grant Awards:
- Round 32 EIS Grant: Up to $180,000 for RC drilling programme targeting magnetic anomalies
- Round 31 EIS Grant: Up to $220,000 for additional deep diamond drilling
The company plans to commence a universal RC drilling programme in H1 2026, testing priority magnetic targets in a 7.5km corridor northeast of Tollu. These targets have shown early promise, with hole TLC170 previously intersecting 94m of visible copper sulphides at grades of 0.03-0.06% Cu from just 66m depth.
| Target Area | Distance from Tollu | Status | Previous Results |
|---|---|---|---|
| EM5 Prospect | ~3km NE | Limited drilling | 94m Cu sulphides identified |
| Cigar West/East | ~4km NE | Minimal testing | Confirmed mafic intrusions |
| Hiding Maggie | ~6.5km ENE | Early stage | Magnetic anomaly confirmed |
| Eastern Magnetic Body | Adjacent | Undrilled | 6.5km strike length |
What Makes These Targets Compelling?
The magnetic targets identified throughout the 7.5km corridor share similar geological characteristics to the productive Tollu zone. Moreover, initial testing has already confirmed the presence of mafic intrusions and visible copper mineralisation, suggesting a connected mineralising system.
In addition, the Eastern Magnetic Body represents a particularly compelling target with its 6.5km strike length remaining completely undrilled. This target could potentially host multiple Tollu-scale deposits within a single continuous system.
Investment Thesis: Positioning for a Major Discovery
TLD005 has fundamentally altered the exploration equation at West Musgrave, transforming Tollu from a modest copper deposit into a potentially significant discovery with magmatic sulphide upside. However, several key factors make this opportunity particularly attractive for investors.
Key Investment Drivers:
- Depth potential: Copper system now proven to 800m+ depth with potential for much deeper mineralisation
- Scale expansion: Mineralisation extends 130m+ beyond known boundaries with multiple untested zones
- Magmatic source evidence: Gabbro intrusion and cobalt geochemistry support world-class deposit model
- Strategic location: 60km from Nebo-Babel, leveraging established infrastructure and geological understanding
Upcoming Catalysts:
- H1 2026: Universal RC drilling programme targeting 7.5km magnetic corridor
- 2026: Additional deep diamond drilling (government co-funded)
- Ongoing: Detailed geological analysis of TLD005 core to refine exploration model
Risk-Adjusted Opportunity:
- Government co-funding reduces exploration risk and validates project merit
- Proven copper system with multiple high-grade intersections already discovered
- Analogous geology to world-class Nebo-Babel deposit provides exploration blueprint
Why Investors Should Track Redstone Resources
This high-grade copper discovery by Redstone Resources Ltd positions the company at a potential inflection point, with evidence suggesting the company may be sitting on a significant copper-dominant magmatic system. The combination of proven high-grade mineralisation, substantial depth extension, and compelling geological indicators for a magmatic source creates a unique opportunity in the Australian copper exploration space.
Compelling Tracking Reasons:
- Proven high-grade copper with multiple intersections exceeding 2% Cu at depth
- Magmatic sulphide potential supported by geological evidence and proximity to Nebo-Babel
- Government validation through substantial co-funding grants
- Systematic exploration approach with clear targets and funded drill programmes
- Strategic location in established copper-nickel province with existing infrastructure
Key Takeaway
Redstone Resources has evolved from a junior copper explorer to a company with legitimate potential for a major discovery. The TLD005 results demonstrate both the immediate copper opportunity and longer-term potential for a world-class magmatic sulphide system.
With government-supported drilling campaigns planned for 2026 and a clear exploration strategy, investors should monitor developments closely. The company is working to unlock what could be a transformational discovery in Australia's critical minerals sector.
Current Market Cap: Monitor ASX:RDS for current valuation
Next Reporting: Follow-up drilling results expected throughout 2026
Investor Focus: Deep drilling results, magnetic target testing, and geological interpretation updates
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