Highlights

  • Updated Halls Creek Scoping Study outlines staged development of the Onedin and Sandiego deposits using a common copper-zinc-silver processing plant.
  • Life-of-mine production averages approximately 4,000 tonnes copper cathode, 13,000 tonnes zinc oxide, and 130,000 ounces silver doré per year over 11 years.
  • JV partner Cobalt Blue Holdings holds 51% (optioning to 75%) with AuKing holding 49% of the Halls Creek Project.
  • A Pre-Feasibility Study is the agreed next step, targeting completion in H1 2028.
  • AuKing's core exploration focus remains rare earths and niobium in Malawi and Greenland.

AuKing Mining Limited (ASX:AKN) has updated the market on the Halls Creek Copper-Zinc-Silver Project in Western Australia, following the release of an updated Scoping Study by joint venture partner Cobalt Blue Holdings. The study, which builds on a 2025 version, incorporates silver recovery for the first time and outlines a capital-efficient development pathway using a single processing plant to produce three separate metal products.

Latest Development

The updated Scoping Study, released by JV partner Cobalt Blue Holdings, outlines a staged development of the Onedin and Sandiego deposits using a common processing plant at Onedin to produce copper cathode, zinc oxide, and silver doré. The study estimates average annual production of approximately 4,000 tonnes of copper cathode, 13,000 tonnes of contained zinc in zinc oxide form, and 130,000 ounces of silver doré across an estimated 11-year production life. The Scoping Study also identifies potential for regional feedstock additions that could extend mine life and increase production. As the next development step, Cobalt Blue Holdings has exercised its right to increase its project interest from the current 51% to 75% by sole funding a further A$1.5 million on the Halls Creek tenements by June 2028, leaving AuKing's interest at 25% under that scenario. The agreed next step is a Pre-Feasibility Study targeting completion in H1 2028.

Company Background

AuKing Mining holds a 49% interest in the Halls Creek Project (also known as Koongie Park), with Cobalt Blue Holdings as the majority JV partner and project operator. While the Halls Creek Project provides AuKing with exposure to base and precious metals, the Company's primary exploration focus is on rare earths and niobium in Malawi and Greenland. AuKing has stated that it will maintain passive participation in the Halls Creek JV as Cobalt Blue Holdings progresses the project through the PFS phase.

Sector Context

Global copper Supply constraints have been a central theme in Commodity markets for several years, underpinned by declining ore grades at mature operations, long project development timelines, and the growing electrification-driven Demand profile. Zinc is likewise used in galvanising and industrial applications with relatively stable demand. The addition of silver as a third product stream — enabled by processing optimisation not included in the prior study — improves the per-unit Economics of the Halls Creek operation by diversifying revenue. Projects producing multiple products from a single processing Facility tend to benefit from Capital efficiency and operational synergies.

Market Perception

For AuKing's shareholders, the Halls Creek JV provides optionality on a base metals project advancing toward a formal feasibility study, while the Company's primary value proposition remains its rare earths and niobium exploration in Africa and Greenland. The JV structure means that Cobalt Blue Holdings carries the majority of the development cost burden in the near term. The PFS, targeted for H1 2028, represents the next meaningful technical milestone for the project, at which point the economic case for the Halls Creek development will be evaluated at a materially higher confidence level than the current Scoping Study.

Growth Drivers

The Halls Creek development pathway benefits from the common plant design that reduces upfront capital by eliminating a proposed separate concentrator for Sandiego that featured in the prior study. The regional feedstock potential provides optionality for extended mine life. Silver recovery as a third product, not previously included in the development model, adds incremental revenue. AuKing's parallel rare earth and niobium exploration programs in Malawi and Greenland represent independent value creation pathways that do not depend on the Halls Creek project timeline.

Risks and Challenges

Scoping studies are early-stage assessments and their outcomes are inherently subject to material uncertainty. Capital cost estimates, production assumptions, and economic projections at this stage typically carry a range of plus or minus 25–35%. The JV dilution mechanism means AuKing's direct project interest could decline to 25% if Cobalt Blue Holdings exercises its option to reach 75%. Technical, permitting, and market risks associated with a remote Western Australian mining operation remain relevant. Additionally, the PFS timeline of H1 2028 is approximately 18 months away, meaning significant near-term cash outflows are likely modest for AuKing.

Recent Announcements

AuKing's focus remains on its Malawi and Greenland exploration programs targeting rare earth elements and niobium, which the Company has stated represent its primary strategic priorities. The Halls Creek JV update is provided as a material portfolio item, with detailed technical information available through Cobalt Blue Holdings' own ASX disclosures. AuKing has confirmed it is not aware of any new information that materially affects the information included in the JV partner's market announcement.

Key Insights

The updated Halls Creek Scoping Study provides a refreshed development framework for the copper-zinc-silver project, incorporating silver recovery for the first time and demonstrating a capital-efficient single-plant approach. For AuKing, the JV structure limits near-term capital requirements while providing retained upside through its project interest. The Pre-feasibility Study timeline of H1 2028 sets a clear next milestone for the asset, while the Company's primary focus continues to be its African and Greenlandic rare earth and niobium exploration programs.