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Loyal Metals Ltd (ASX:LLM) has exercised its binding option to fully acquire the Highway Reward Copper-Gold Mine in Queensland, Australia, recognized as one of the world’s highest-grade copper mines with historical production of 3.65 million tonnes at 5.7% copper and 260,000 tonnes at 4.5 g/t gold. This acquisition coincides with Loyal Metals’ progression of a proposed scheme of arrangement with Indonesian conglomerate PT Bumi Resources Tbk, which has agreed to purchase 100% of Loyal Metals’ shares at A$0.45 per share, valuing the company at about A$79.1 million. Recent drilling at Highway Reward has confirmed the mineralised system’s scale and continuity, revealing significant copper-gold intersections that indicate strong potential for resource expansion.
Key Points
- Loyal Metals Ltd (ASX:LLM) has exercised its option to acquire 100% ownership of the Highway Reward Copper-Gold Mine and Big Magpie Project in Queensland
- PT Bumi Resources Tbk agreed to acquire all Loyal Metals shares at A$0.45 per share via a court-approved scheme of arrangement, valuing the company at approximately A$79.1 million
- Highway Reward drilling returned 179 metres at 1.47% copper equivalent, including 8 metres at 5.97% copper equivalent, confirming mineralisation continuity beneath the historic open pit
- The mine is located 37 km south of Charters Towers within the Mt Windsor Volcanic Belt, 172 km from the Port of Townsville, with no exploration since operations ceased in July 2005
- Loyal Metals also owns the Trieste Lithium Project in North America, covering roughly 250 square kilometres of spodumene pegmatite hosting eight lithium mineralised dykes
Completion of Highway Reward Acquisition Strengthens Loyal Metals’ Copper-Gold Growth Strategy
Loyal Metals confirmed it has exercised its binding option to acquire 100% of the Highway Reward Copper-Gold Mine and Big Magpie Project, activating the Sale and Purchase Agreement and initiating the transfer of mining leases and project assets to a wholly owned subsidiary, pending satisfaction of remaining conditions precedent. The binding option was secured on 2 July 2025, marking a pivotal step in Loyal Metals’ strategy to develop a significant copper-gold resource in Queensland.
Strategically situated 37 kilometres south of Charters Towers within the Mt Windsor Volcanic Belt, the Highway Reward site lies in a well-established mining region with access to infrastructure, including an all-weather highway and proximity to the Port of Townsville, 172 kilometres away. The geological setting within a recognized metallogenic province supports the copper-gold mineral system’s further exploration and development.
Historic Production and Substantial Commodity Price Increases Since Operations Halted
Highway Reward boasts a strong production history with 3.65 million tonnes mined at 5.7% copper and 260,000 tonnes at 4.5 grams per tonne gold. No exploration has been conducted on the granted leases since mining ceased in July 2005, spanning over 20 years. Since the 1997 feasibility study, copper prices have surged approximately 680%, and gold prices have risen about 1,256%, significantly enhancing the economic potential of the mineralisation.
Previous mining reached depths of 220 metres for open pit and 390 metres underground, leaving considerable potential at depth. The combination of high-grade historical production, a lengthy exploration hiatus, and elevated commodity prices underpins Loyal Metals’ strategic interest and opportunity to reassess the asset’s economic viability under current market conditions.
Recent Drilling Confirms Extensive High-Grade Mineralisation Below Historic Open Pit
Since securing the option, Loyal Metals completed three diamond drillholes at Highway Reward, confirming the mineralised system’s scale and continuity beneath the historic open pit. January 2026 drilling results include drillhole 25HRDD003 intersecting 179 metres at 1.47% copper equivalent, with an 8-metre interval at 5.97% copper equivalent, demonstrating a substantial mineralised body extending below prior mining depths.
The three drillholes yielded: 25HRDD001 with 145 metres at 1.37% copper equivalent; 25HRDD002 with 86 metres at 2.34% copper equivalent; and 25HRDD003 with 179 metres at 1.47% copper equivalent. These results confirm a large, continuous copper-gold-silver volcanogenic massive sulphide (VHMS) system with strong potential for resource expansion, supported by consistent thickness and grade across multiple holes.
Extensive Geophysical Surveys and Historical Data Validation Enhance Exploration Planning
Loyal Metals has validated and reconciled approximately 122,000 metres of historical drilling data at Highway Reward, establishing a robust foundation for mineral system interpretation and future exploration. This comprehensive database, combined with new drilling results, enables confident three-dimensional modelling of mineralisation geometry and grade distribution.
The company conducted extensive geophysical surveys over the leases, including 3D induced polarisation (IP), magnetotellurics (MT), gravity surveys, and drone-based LiDAR and magnetics. These methods map sulphide chargeability, image deep conductive structures, and identify density and magnetic contrasts associated with the VHMS system, supporting delineation of mineralisation extent and identification of new exploration targets.
PT Bumi Resources Scheme of Arrangement Offers Strategic Value and Shareholder Exit
On 27 April 2026, Loyal Metals entered a Scheme Implementation Deed with PT Bumi Resources Tbk, under which Bumi agreed to acquire all issued shares via a court-approved scheme of arrangement at A$0.45 per share, valuing Loyal Metals at approximately A$79.1 million. This transaction offers Loyal Metals shareholders a clear exit and reflects strategic recognition of the company’s valuable asset portfolio, including the Highway Reward Copper-Gold Mine and North American lithium projects.
During the quarter ending 30 June 2026, Loyal Metals prioritized advancing the scheme, which remains subject to customary conditions such as court approval and other precedent requirements. The scheme clarifies ownership transition and financing for ongoing development of Highway Reward and other exploration assets.
Trieste Lithium Project: Extensive Spodumene Pegmatite Portfolio in North America
Loyal Metals’ Trieste Lithium Project encompasses approximately 250 square kilometres of spodumene pegmatite hosting eight lithium mineralised dykes, notable for spodumene mega crystals indicating coarse-grained lithium mineralisation with potential processing benefits. The dykes mainly occur within metasediments, with Dyke #07 discovered in 2024 within the Trieste greenstone, suggesting geological diversity and further discovery potential.
Between late 2023 and 2024, Loyal Metals drilled 41 holes across three dykes (Dyke #01, #04, and #05), confirming world-class lithium grades over thick intervals from near surface. Highlights include: Dyke #01 intersecting 40.0 metres at 1.2% lithium oxide from 15.0 metres depth; Dyke #04 intersecting 32.8 metres at 1.2% lithium oxide from 27.6 metres and 31.1 metres at 1.5% lithium oxide from 21.4 metres; Dyke #05 intersecting 31.8 metres at 2.2% lithium oxide with 499 ppm tantalum oxide from 2.9 metres and 28.6 metres at 1.7% lithium oxide with 1,050 ppm tantalum oxide from 6.5 metres.
Mobile Magnetotellurics Survey Identifies Significant Lithium Pegmatite Extensions
In 2024, Loyal Metals conducted an innovative Mobile Magnetotellurics (Mobile MTm) survey over 77 square kilometres, using sensors to probe beyond 600 metres depth. Results include plans, sections, and 3D inversions revealing significant inferred extensions of seven lithium pegmatites within metasediments at Trieste.
The 3D model highlights three high-resistivity metasediment-hosted trends—META 1 (3,800 metres), META 2 (4,700 metres), and META 3 (2,500 metres)—extending over 300 metres below surface. These trends correlate with known spodumene-bearing pegmatite dykes and drillholes, indicating substantial potential for additional lithium mineralisation beyond drilled areas.
Hidden Lake Lithium Project Offers Strategic Location and Development Prospects
Loyal Metals wholly owns the Hidden Lake Lithium Project, located 65 kilometres from Yellowknife, a mining city in North America. Proximity to Yellowknife’s established mining infrastructure, skilled workforce, and support services provides locational advantages for future project development. Situated in a recognized lithium-prospective region, Hidden Lake complements Loyal Metals’ North American lithium portfolio.
The Hidden Lake project, alongside Trieste, represents significant spodumene pegmatite exploration ground with demonstrated lithium grades and geophysical evidence of mineralisation continuity. Their strategic positioning in established mining jurisdictions with infrastructure access supports future development potential.
Copper Equivalent Calculation Methodology and Economic Assessment Framework
Loyal Metals calculates copper equivalent (CuEq) grades for Highway Reward drill intersections using modelled prices at 80% of spot values at reporting time: US$4.54/lb copper, US$3,735.20/oz gold, US$2,590.40/t zinc, US$74.58/oz silver, and US$1,643.20/t lead. Metallurgical recoveries assumed are 80% copper, 70% gold, 60% zinc, 70% silver, and 60% lead, yielding net-recovered values for CuEq calculations.
The CuEq formula is CuEq = Cu + (1.051 × Au) + (0.194 × Zn) + (0.021 × Ag) + (0.123 × Pb), with zinc and lead applied only in certain intervals. Specifically, only the 148–165 metre interval in drillhole 25HRDD001 includes zinc and lead in CuEq; all other intersections use copper, gold, and silver only. This methodology reflects the VHMS system’s polymetallic nature, incorporating gold, silver, and base metals into economic assessments.
