Highlights

  • The company estimates 1.68 quarters of funding and says it is assessing equity and other funding options.
  • Megado has agreed to acquire 80% of Iberian Copper Pty Ltd, which owns the project in Navarra and Aragón.
  • Three holes totalling 939.5 metres were completed at the Etayo permit: ET-01, ET-01bis and ET-04.
  • After reinterpreting the geology, Megado cut back the programme and has submitted a revised plan with better-positioned holes for approval.

Megado Minerals (ASX:MEG) has reported on the September 2026 quarter, during which it drilled three holes at its Iberian Copper Project in Spain, reduced the scope of that programme after a geological reinterpretation, and ended the period with cash of $1.27 million. The company estimates 1.68 quarters of funding and says it is assessing equity and other funding options.

Iberian Copper Drilling

Megado has agreed to acquire 80% of Iberian Copper Pty Ltd, which owns the project in Navarra and Aragón. The project comprises 12 permits covering about 777 square kilometres and targets sedimentary copper in Oligocene sandstone, a style the company compares with Lisbon Valley in the United States.

Drilling began on 14 July 2026. Three holes totalling 939.5 metres were completed at the Etayo permit: ET-01, ET-01bis and ET-04. Only ET-01 has been reported. Its best intercept was 0.55 metres at 0.84% copper and 11 grams per tonne silver from 75.05 metres, including 0.25 metres at 1.39% copper. Minor chalcocite was observed. Assays for the other two holes are pending.

After reinterpreting the geology, Megado cut back the programme and has submitted a revised plan with better-positioned holes for approval. A dipole-dipole induced polarisation survey at Mina Emilia is in final processing, and trial downhole surveys on two holes are being interpreted. A second programme in the Etayo and Eslava permits has been documented, but timing depends on board approval, results, rig availability and permitting. The report is inconsistent on whether drilling is paused or planned for the current quarter, with the cash flow section stating it is paused while results are assessed.

Other Projects

At Alpartir in Aragón, where Megado holds an option for up to 80% of a silver, copper and antimony project, shareholders approved the acquisition on 9 October 2026, after quarter end. The company cites more than 36 kilometres of historical workings. A 451.3 square kilometre airborne magnetic survey is being reprocessed, with results expected in the December quarter, and assays from 403 stream sediment samples are also expected this quarter. Drilling is proposed only after outstanding investigation permits are granted.

In Idaho, the North Fork Rare Earth Project is under an exploration agreement and purchase option with a subsidiary of Iluka. Iluka reports mapping, soil sampling and geophysics that have identified more carbonatite occurrences, with further geophysics planned. The option allows a 100% purchase for $1 million, less amounts owed to Iluka, with a further payment tied to future production revenue.

In Québec, Megado holds 100% of the Cyclone lithium-gold and K Lithium projects and says it is in discussions with potential partners. It notes that high-grade gold showings on the neighbouring Aquilon property are not necessarily indicative of its own ground.

Cash And Funding

Cash fell from $2.026 million at 1 July to $1.27 million. Operating outflow was $325,000, and exploration spending was $431,000. Related-party payments were $213,000, covering director and officer fees, remuneration and a short-term incentive. No funds were raised in the quarter, and no debt facilities are in place.

Management expects spending to fall in the December quarter because drilling is paused while results are assessed. It says it expects to keep operating through cost control and access to additional funding, but no funding is arranged.

Risks And What To Watch

Funding is the central consideration given the stated runway of 1.68 quarters. The one reported intercept is narrow, and pending assays and the revised drilling approval will determine the next stage.

Dates the company gives are stream sediment assays this quarter, magnetic reprocessing results in the December quarter, and pending interpretation of induced polarisation data, with no firm dates for the revised drilling.