Anax Metals Initiates Phase 1 Diamond Drilling at Mons Cupri Copper-Zinc Deposit in Western Pilbara

Strategic Significance of the Mons Cupri Copper-Zinc Deposit

Mons Cupri is the cornerstone asset of Anax Metals' Whim Creek Project and plays a pivotal role in the company's development strategy. The deposit contains a Proven and Probable Ore Reserve of 2.55 million tonnes grading 1.09% copper and 1.29% zinc, accounting for 55% of Anax's total ore reserves. It is expected to serve as the primary feed for the planned 400 kilotonne per annum concentrator during the project's early years, making it vital to the company’s economic viability and operational planning. The deposit’s scale and grade underscore its fundamental importance in underpinning the project's development case.

Geologically, Mons Cupri is situated within the broader Whim Creek Project and features a thick, high-grade main lens with mineralisation open at depth, indicating significant exploration upside beyond current reserves. Since the 1970s, 515 drill holes have been completed at Mons Cupri; however, many sections of the primary VHMS sulphide horizon remain largely untested by modern techniques. Of these, 282 rotary circulation holes average only 75 metres depth, insufficient for deep horizon testing, while 233 diamond holes averaging 186 metres form the main geological framework. Despite this extensive historical data, critical gaps remain that the current Phase 1 drilling aims to address.

Design and Targets of the Phase 1 Drilling Programme

The Phase 1 diamond drilling programme consists of 18 holes targeting a total of 5,000 metres, specifically designed to test extensions of the Mons Cupri mineralisation at depth and along strike. The focus is on the primary VHMS sulphide horizon, which remains largely untested below approximately 120 metres vertical depth. This approach addresses the exploration gap identified in historical drilling, where deeper mineralised zones have seen limited investigation despite evidence of high-grade mineralisation at shallower levels. Diamond drilling provides high-quality core samples suitable for detailed geological and metallurgical analysis.

In addition to resource expansion, the Phase 1 programme will collect samples for metallurgical testing aimed at de-risking the Whim Creek Project. Metallurgical test work on Mons Cupri ore is essential for understanding processing characteristics, recovery rates, and concentrate quality. This dual-purpose strategy maximises drilling investment by supporting both exploration and development goals simultaneously, combining geological testing with metallurgical sampling to advance the project comprehensively.

Historical Drilling Highlights Supporting Current Exploration

Previous drilling campaigns have confirmed the quality and scale of Mons Cupri mineralisation. Notable historical intercepts include hole 20AMCD002 with 80 metres at 1.95% copper from 78 metres depth, hole MCR005 with 63 metres at 1.91% copper from 48 metres, hole MCR001 with 53 metres at 1.73% copper from 40 metres, and hole 20AMCD003 with 40 metres at 2.11% copper from 51 metres. These significant intercepts across multiple holes demonstrate the consistency and thickness of the main mineralised lens.

This historical data supports the current Phase 1 targeting strategy. Repeated metre-weighted grades between 1.73% and 2.11% copper over intervals of 40 to 80 metres indicate a robust mineralised system with strong economic potential. However, the broader lens system and targets beyond the main lens remain largely untested at depth and with downhole electromagnetic (DHEM) surveys, which have been applied to only a small fraction of the 233 diamond holes. The Phase 1 programme will systematically address these gaps by testing deeper zones and applying modern geophysical methods to better characterise mineralisation.

Funding and Project Development Schedule

The Phase 1 exploration programme is fully funded by a $6 million placement completed in June 2026, ensuring uninterrupted drilling operations. This funding eliminates near-term capital risks, allowing Anax’s management to focus on exploration execution and timely results delivery. The placement reflects strong investor confidence in the Whim Creek Project’s development potential and Anax’s exploration approach. With funding secured, the company is poised to complete the 18-hole, 5,000-metre programme and provide ongoing market updates.

The Phase 1 drilling fits within a broader development timeline for Whim Creek, which is described as the only fully permitted, development-ready base metals project in the Western Pilbara capable of processing both oxide and sulphide ores. The project benefits from substantial existing process and non-process infrastructure onsite. This readiness includes all necessary regulatory approvals and operational facilities to support the planned 400 kilotonne per annum concentrator. The Phase 1 drilling and associated metallurgical testing represent critical steps toward project development and production initiation. Managing Director Geoff Laing noted the company’s strong position to unlock further value as results emerge.

Whim Creek Project’s Deposit Portfolio and Location Benefits

The Whim Creek Project comprises multiple VHMS deposits, including Mons Cupri, Whim Creek, Evelyn, and Salt Creek, offering a diversified exploration and development platform. Mons Cupri is the flagship asset, but the additional deposits provide opportunities for resource growth and alternative ore feed sources. Located approximately 120 kilometres southwest of Port Hedland and 3 kilometres south of the historic Whim Creek Hotel, the project has access via the North-West Coastal Highway, providing proximity to regional infrastructure and the Port Hedland export facility—key advantages for a copper-zinc concentrator operation.

Anax holds an 80% interest in Whim Creek, with the remaining 20% owned by Develop Global Limited (ASX:DVP), a structure that grants operational control while maintaining partnership alignment. The Pilbara region’s established mining infrastructure and supportive regulatory environment further facilitate project advancement. The project’s development-ready status highlights mature permitting and infrastructure planning. Combined with a high-quality primary asset, multiple deposits, strategic location, and regulatory maturity, Whim Creek is positioned as an advanced-stage project capable of supporting near-term development decisions based on exploration and metallurgical outcomes.

Technical Overview of VHMS Mineralisation and Deposit Features

Mons Cupri’s mineralisation occurs within a VHMS (volcanogenic hosted massive sulphide) system, a globally recognised base metal deposit type characterised by high-grade copper and zinc formed via submarine hydrothermal processes. VHMS deposits typically feature one or more massive sulphide lenses hosted within volcanic and sedimentary sequences, with mineralisation concentrated in thick, laterally extensive zones. Mons Cupri’s main lens is thick and high-grade, with mineralisation open at depth, consistent with a well-developed VHMS system offering further exploration potential. The primary VHMS sulphide horizon below 120 metres, largely untested, is the focus of the current Phase 1 programme.

Understanding structural and stratigraphic controls on VHMS mineralisation is crucial for effective targeting, as these systems are often stacked or aligned along regional structures or stratigraphic horizons. The historical drilling database of 515 holes provides a geological framework for Mons Cupri’s geometry and grade distribution, but modern downhole electromagnetic (DHEM) surveying remains limited. DHEM is especially effective for VHMS exploration, detecting conductive massive sulphide bodies and guiding drilling toward economic mineralisation zones. The Phase 1 programme will increase DHEM application, enhancing the company’s ability to characterise the system and prioritise future drilling.

Whim Creek’s Market Position in Western Australia’s Base Metals Sector

The Whim Creek Project holds a unique position in Western Australia’s base metals development landscape. It is described as the only fully permitted, development-ready base metals project in the Western Pilbara, reflecting significant progress in permitting, engineering, and infrastructure. This status distinguishes Whim Creek from earlier-stage exploration projects that require additional feasibility, permitting, or infrastructure development before production decisions. Its capability to process both oxide and sulphide ores, supported by substantial onsite infrastructure, offers operational flexibility and lowers capital requirements compared to greenfield projects.

While the Western Pilbara region has historically focused on iron ore, it also hosts historical base metal mining and known VHMS deposits attracting renewed exploration interest. Whim Creek’s development readiness and Mons Cupri’s quality position Anax as a potential copper and zinc concentrate producer in a region evolving toward diversified commodities. Proximity to Port Hedland and established haulage networks provides export logistics advantages. The Phase 1 drilling and metallurgical test work are expected to enhance the project’s technical profile and support future development decisions, potentially increasing investment interest in Whim Creek and similar Western Pilbara projects.

Exploration Risks and Geological Uncertainties at Mons Cupri

Although Phase 1 drilling targets extensions of Mons Cupri mineralisation at depth and along strike, exploration outcomes carry inherent geological uncertainties. The primary VHMS sulphide horizon below 120 metres remains largely untested, so the geometry, thickness, grade distribution, and continuity of mineralisation at these depths are unknown until drilling results are received and evaluated. While shallower historical intercepts have demonstrated mineralisation quality, these cannot be assumed to extend laterally or vertically without confirmation. The broader lens system and targets beyond the main lens also remain untested at depth with modern geophysical methods.

Additional risks include the possibility that drilling may miss target horizons, intersect narrower or lower-grade zones than historical data suggest, or reveal metallurgical properties differing from assumptions. Reserve and resource estimates based on historical drilling and geological interpretation may be refined or reduced following new data. Operational challenges such as weather or site conditions in the Pilbara could impact drilling progress. Ultimately, the Phase 1 outcomes’ impact on project economics will depend on metallurgical results, market conditions, permitting timelines, and other factors beyond the exploration programme’s direct control. Investors should consider these risks when assessing Anax and the Whim Creek Project.

Role of Metallurgical Testing in Project De-Risking

Phase 1 drilling includes sample collection for metallurgical testing aimed at further de-risking the Whim Creek Project. Metallurgical test work on Mons Cupri ore will provide critical data on ore processing characteristics such as grindability, flotation recovery rates for copper and zinc, concentrate grades, tailings properties, and overall processing efficiency. This information is vital for validating economic assumptions and refining engineering and cost estimates for the planned 400 kilotonne per annum concentrator. Metallurgical results will also guide circuit design and may identify process optimisations to improve project economics and operational flexibility. Samples collected during Phase 1 will represent a depth profile of the Mons Cupri system, supporting a robust test programme.

Integrating metallurgical sampling within the Phase 1 drilling campaign reflects a coordinated approach to advancing the project, addressing exploration and development objectives concurrently. This strategy reduces costs and accelerates timelines compared to separate exploration and metallurgical drilling programmes. Metallurgical results will inform feasibility studies and support engagement with potential offtake partners, financiers, and strategic investors. The timing of Phase 1 drilling and metallurgical outcomes is expected to provide material updates to shareholders throughout 2026.

Next Steps and Anticipated Milestones

Phase 1 diamond drilling at Mons Cupri has commenced with the rig mobilised onsite. The 18-hole, 5,000-metre programme will progress through successive drilling phases, with results released to the market as data becomes available. The company has indicated a staged approach to results dissemination rather than a single comprehensive update. Although no specific completion date was provided, the fully funded status and active rig deployment suggest the programme will advance through the latter half of 2026.

Following drilling completion and data interpretation, metallurgical testing will commence using samples collected during Phase 1. This test work typically spans several months depending on scope and complexity. Outcomes from drilling and metallurgical programmes will support updated resource and reserve estimates and inform feasibility assessments. Given Whim Creek’s development-ready status, positive Phase 1 results could facilitate progression toward detailed engineering and development planning. Investors should monitor company announcements for drilling results, assay data, and metallurgical updates, which will provide significant insights into the project’s technical profile and development trajectory.