Highlights

  • EQ Resources shares jumped 7.41% on 23 April 2026, following the commencement of a structured drilling program at Mt Carbine.
  • Drilling campaign includes 28 holes spanning approximately 7,700 metres, aimed at improving geological confidence and supporting mine planning
  • Initial progress includes 1,900 metres of diamond drilling and 710 metres of RC drilling completed to date
  • Program designed to support a planned resource and reserve update expected in late 2026
  • Increased focus follows access to higher-grade in-situ ore, supporting potential production uplift

EQ Resources Ltd (ASX:EQR) shares rose 7.41% to AUD 0.29 during the afternoon session on 23 April 2026, extending a notable long-term upward trajectory with the stock remaining approximately 625% higher over the past year. The latest upward movement follows the release of an operational update confirming the commencement of a new drilling program at the Company’s Mt Carbine Tungsten Mine in North Queensland, signalling progress in its strategy to expand resources and support future mine planning.

Following the announcement, investor attention appears to be focused on the implications of the drilling campaign, particularly as it aligns with the Company’s broader objective of enhancing reserve confidence and positioning the asset for potential production growth. The update highlights a structured and ongoing effort to build on recent operational developments at Mt Carbine, including access to higher-grade ore zones.

Company Overview and Mt Carbine Asset Context

EQ Resources Limited operates as a global tungsten producer, with mining activities spanning Australia and Spain. The Company’s flagship Mt Carbine operation in Queensland represents a central component of its asset portfolio, alongside its Barruecopardo project in Spain. With tungsten increasingly recognised as a critical mineral across industrial and emerging technology applications, the Company’s strategy centres on expanding its resource base while leveraging advancements in processing technologies.

Mt Carbine Drilling Program: Scope and Progress

At Mt Carbine, the Company reported production of 487 tonnes of WO₃ in FY2025, supported by an established reserve mine life of approximately eight years. Importantly, only around 23% of the current resource has been converted into reserves, indicating potential for further conversion through continued exploration and drilling activities. This context underscores the relevance of the newly announced drilling program, which is intended to refine geological understanding and support long-term mine development planning.

The drilling program officially commenced on 16 March 2026 and is expected to run for approximately four months. It comprises a total of 28 drill holes, covering approximately 7,700 metres. The program is structured to improve confidence in existing resource areas while also testing potential extensions of known mineralisation zones. These efforts are expected to contribute directly to a planned resource and reserve update scheduled for later in 2026.

Progress to date indicates that the diamond drilling component has completed five holes, totalling approximately 1,900 metres. In addition, a reverse circulation (RC) drilling rig was mobilised to site on 11 April 2026 to support grade control drilling and broader exploration objectives. The RC rig has so far completed three holes for a total of 710 metres.

Target Zones and Exploration Objectives

The drilling campaign is focused on several key ore zones within the Mt Carbine operation, including Bluff, Dazzler, Iolanthe, Johnson, Ruby, and Iron Duke. These areas have been selected based on their potential to support extensions to existing stage 2 and stage 3 open pit mine designs. The program aims to further define these mineralised zones, test continuity, and assess the potential for additional high-grade ore shoots linked to structural features such as faults or geological traps.

Beyond immediate exploration objectives, the program is also intended to support broader mine planning initiatives. By improving geological confidence and refining the understanding of mineralisation controls, the Company aims to optimise future pit designs and assess opportunities for extending mine life. This is particularly relevant given recent movements in tungsten prices, which have prompted a review of reserve positions associated with current mining plans.

The Company has outlined several key objectives for the drilling program. These include enhancing geological confidence in planned resource areas, evaluating the continuity and potential extensions of known mineralisation, supporting reserve optimisation, and contributing to the upcoming resource and reserve update. The results from the program are expected to play a role in shaping future development decisions at Mt Carbine.

Assay Timeline and Expected News Flow

Assay analysis for the drilling samples is being conducted by Intertek, with turnaround times currently guided at approximately 20 to 30 business days from receipt of samples in Townsville. Based on this timeline, EQ Resources expects to release drilling results progressively over the next three to six months, allowing for ongoing updates as data is reviewed and validated.

The Company has indicated that the drilling results will provide deeper insights into the structural controls influencing tungsten mineralisation across the targeted zones. In addition, the program will assess the potential for mineralisation at depth and along strike, areas that have seen limited exploration historically. This is particularly relevant as much of the broader deposit remains underexplored, presenting opportunities for further expansion.

Recent operational developments at Mt Carbine also provide additional context for the drilling initiative. The Company recently gained initial access to higher-grade in-situ ore, marking a transition into a new phase of operations. This development is expected to support a step-up in production from April 2026, aligning with the broader objective of increasing output and enhancing asset performance.

Broader Strategy and Market Positioning

Management has highlighted that the current drilling program represents a continuation of this momentum, with a focus on systematically advancing exploration across priority areas. The emphasis on improving geological confidence and supporting mine planning reflects a measured approach to resource development, aligned with longer-term production objectives.

In addition to its operational implications, the expansion of Mt Carbine’s resource base also has broader considerations for regional activity. The Company noted that extending the mine life has implications beyond production, including supporting employment, contractors, local suppliers, and regional communities. This aligns with the Company’s positioning within the critical minerals sector, where supply chain stability and regional development are increasingly relevant.

What This Means for Investors?

EQ Resources continues to position itself as a supplier of tungsten into global markets, with a focus on delivering reliable and traceable production. The Company’s dual-asset strategy across Australia and Spain provides geographic diversification, while ongoing exploration initiatives aim to unlock further value from its existing portfolio.

Looking ahead, the progression of the drilling program and the subsequent release of assay results are expected to be key areas of focus for investors. The anticipated resource and reserve update later in 2026 may provide additional clarity on the impact of the current exploration efforts and their contribution to the Company’s growth strategy.