Is now the time to capitalise on this junior explorer’s impressive EM survey results?

Copper demand will surpass supply earlier than expected because as the population grows, so too does copper demand.

Copper demand will surpass supply earlier than expected because as the population grows, so too does copper demand.

Most notable are changes in the global Copper landscape, where the higher grade copper resources have been largely depleted and now require more earth to be moved than ever before for the same amount of copper.

This is one of the reasons why smaller unmined resources are now of interest to larger mining companies in search of high grade copper that requires less earth be moved.

In recent years, the West Musgrave region in Western Australia has proven to be prosperous to explorers, with drilling having unearthed sizeable amounts of nickel and copper sulphides in particular. 

Being one of Australia’s most prospective locations in recent years, larger explorers in the West Musgrave region have continued to develop their projects but when looking for potential value in the West Musgrave region, small market capital explorer Redstone Resources (ASX: RDS) stands out with a 214km2 land holding beaming with potential. 

In recent years, Redstone’s Tollu project has identified resources of more than 38,000t of copper, with cobalt.

Considering copper currently trades around USD $6,000 per tonne, Redstone’s 38,000t resource is a significant asset for a small company.

But further looking to explore the area beyond their Tollu project, Redstone conducted an airborne electromagnetic survey in 2017, with results lighting up 13 individual EM.

The company reported drilling of one anomaly to depths of 300m where they intersected sulphides, often associated with major mineralisation discoveries. Following this sulphide intersection, Redstone immediately upgraded drilling of the other 12 EM anomalies as a priority.

With near term newsflow expected to come regarding those EM anomalies, Redstone Resources have already progressed their West Musgrave project significantly. Firstly, by identifying the 13 EM anomalies and secondly, intersecting sulphides when drilling to a limited depth.

As the company prepare to drill further into the other EM anomalies, Redstone Resources presents a speculative stock operating in a highly prospective region capable of delivering some significant newsflow with drilling planned to commence in early 2019.

Redstone Resources trade under the ASX code: ‘RDS’

*Oz Financial Australia Pty Ltd trading as Reach Markets are the advisors assisting RDS with the management of an Entitlement Offer and may receive fees depending on whether the offer is taken up by investors.

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