Strategic Energy Resources Secures Sumitomo JV and Government Grants to Launch Three Copper-Gold Drilling Programs in Queensland

Sumitomo JV Unlocks Significant Exploration Capital for Bulimba Gold Project

Strategic Energy Resources has executed a binding Joint Venture Agreement with Sumitomo Metal Mining Oceania Pty Ltd (SMMO) for the Bulimba Gold Project, marking a pivotal advancement in the company’s exploration strategy. Under the agreement, SMMO may earn up to an 80% interest by committing $6 million in exploration expenditure and completing 7,500 metres of drilling within five years. SER has already received a $100,000 farm-in fee from SMMO upon signing, with further exploration funding anticipated as programs advance.

SMMO, a wholly owned subsidiary of Sumitomo Metal Mining Co. Ltd, contributes extensive mining expertise. The parent company operates the Hishikari Mine in Japan and is involved in mine development and operations worldwide, including the Northparkes mine in New South Wales. This partnership enables SER to retain operational control of exploration while leveraging SMMO’s technical skills and financial resources. SMMO can increase its interest to 90% by completing a Definitive Feasibility Study, paving the way for potential production-stage development if exploration results prove promising.

Bulimba Gold Project Situated in a Highly Prospective Queensland Fault Zone

Located approximately 50 kilometres northwest of Chillagoe and 200 kilometres west of Cairns, the Bulimba Gold Project covers 1,315 square kilometres over the undercover extension of the Palmerville/Gamboola Fault Zone. This geological structure hosts numerous significant gold and copper deposits. Nearby Mungana and Red Dome deposits within the same fault zone contain a combined mineral resource of 2.7 million ounces of gold, 273,000 tonnes of copper, and 34 million ounces of silver, highlighting the prospectivity of SER’s tenure.

Previous exploration has been limited due to younger sedimentary cover masking target geology. This presents both challenges and opportunities, as the area remains highly prospective for Intrusion Related Gold System (IRGS) deposits. SER’s exploration targets a compelling reversely magnetised feature identified via geophysical surveys, exhibiting magnetic polarity, scale, and depth characteristics consistent with IRGS-epithermal gold-copper systems.

Diamantina Drilling Targets Extensions of High-Grade Copper-Gold Mineralisation

The Diamantina Copper-Gold Project includes two granted Exploration Licences and four applications, covering over 1,800 square kilometres of the projected undercover southern extension of the Mt Isa Eastern Fold Belt. SER recently completed a comprehensive review and modelling of geophysical data, identifying new targets including the Elizabeth Springs East, West, and South prospects, plus a high-amplitude magnetic anomaly west of Elizabeth Springs yet to be drilled.

Upcoming diamond drilling at Diamantina will focus on extending known mineralisation at Elizabeth Springs East. The initial hole targets extensions of mineralisation intersected in historical drill hole DCT010, which recorded 6.5 metres at 0.52% copper and 0.16% nickel from 423 metres depth. Further drilling will test high-grade mineralisation from hole DTD002, approximately 500 metres northeast, which returned 161 metres at 0.4% copper and 0.11 g/t gold from 449 metres, including 17.3 metres at 1.76% copper and 0.37 g/t gold. Additionally, an interval within DTD002 yielded 0.67 metres at 25.6% copper and 1.29 g/t gold, underscoring the system’s significant grade potential.

Queensland Government Grant Supports Diamantina Drilling Program

Strategic Energy Resources secured partial funding for Diamantina drilling through a $275,000 Queensland Government Collaborative Exploration Initiative (CEI) grant. This backing acknowledges the project’s exploration significance and reduces SER’s funding requirements for the September Quarter drilling campaign, which aims to test extensions of known mineralisation and new geophysical targets.

The government grant complements a $1.5 million capital raise completed during the quarter, dedicated to Diamantina’s diamond drilling. Alongside joint venture funding from partners on other projects, SER has secured robust financial support for what Managing Director Dr David DeTata described as a "massive field season." This funding structure enables three simultaneous high-impact drilling programs while efficiently managing capital across the portfolio.

Canobie Copper Project JV with Fortescue to Begin Drilling

Drilling will commence at the Canobie Copper Project under a joint venture with Fortescue. The initial diamond drill hole will follow up on a distinctive iron-oxide-copper-gold (IOCG) geochemical anomaly previously identified at Charcoal Bore and test the highest-ranked magnetic anomaly near the intersection of the Gidyea and Quamby shear zones, key geological structures known for hosting significant mineral systems.

The Fortescue JV exemplifies SER’s strategy of partnering with larger, financially strong explorers to fund exploration. After Canobie drilling, the rig will move to Diamantina, enhancing operational efficiency by sequentially deploying equipment across projects rather than demobilising and remobilising, thereby optimizing productivity and timing.

Capital Raise and Corporate Actions Fuel Exploration Progress

In the June 2026 quarter, Strategic Energy Resources completed a $1.5 million capital raise aimed at funding diamond drilling at Diamantina and sustaining exploration momentum. The company also conducted a sale of unmarketable share parcels and a capital consolidation to streamline its shareholder register and capital structure.

The combination of equity capital, joint venture funding, and government grants equips SER with substantial financial resources to execute its 2026 exploration plans. Managing Director Dr David DeTata emphasized that two of the three planned diamond drilling programs are fully funded through joint ventures with Fortescue and Sumitomo, while the Diamantina program is partially funded by the Queensland Government grant and capital raise. This diversified funding reduces reliance on any single source and reflects strong investor and partner confidence.

Geophysical Surveys to Generate Additional 2027 Drill Targets

Alongside the three major 2026 diamond drilling programs, SER plans multiple geophysical surveys across Canobie, Diamantina, and Bulimba to refine and generate future drill targets. These surveys will extend the exploration pipeline beyond 2026, employing gravity and magnetic modelling techniques similar to those that identified new prospects at Diamantina.

Target generation continues through systematic geophysical interpretation and geological analysis. SER’s strategy prioritizes creating multiple drill-ready targets for progressive testing, enabling efficient allocation of exploration capital. Dr DeTata noted ongoing efforts to identify value-creation opportunities through project generation, acquisitions, or additional joint ventures, maintaining an active business development approach alongside core exploration.

Strategic Positioning for Enhanced Exploration Activity and Value Creation

The Sumitomo joint venture execution, capital raise completion, and government grant acquisition collectively position Strategic Energy Resources for an expanded exploration campaign across its Queensland copper-gold assets. With three fully or partially funded drilling programs starting in the September Quarter, the company is significantly ramping up exploration compared to historical levels. This acceleration targets high-priority prospects identified through integrated geophysical and historical data analysis.

The partnership with Sumitomo, a major global miner with operational expertise and capital, provides SER access to technical knowledge and long-term funding. Should Bulimba exploration confirm a substantial mineral system, the joint venture offers a pathway to development and potential production without SER bearing full advancement costs. Similarly, Fortescue’s involvement at Canobie and the Queensland Government grant at Diamantina reduce SER’s direct capital needs while advancing multiple prospects concurrently.