Highlights

  • Drone magnetic surveys covered roughly 100 square kilometres in Sweden.
  • Survey data will be combined with mapping and geochemistry before a drilling decision.
  • Regulatory transfer of seven exploration licences remains pending.
  • Cash at 30 September 2026 was A$557,483, with additional funding requirements.

Turnstone Resources Ltd (ASX:TSR) has copper-gold exploration interests in Sweden and potash assets in Germany. During the September 2026 quarter it completed drone magnetic surveys over the Glava, Torsby West and Klinten areas in the Värmland belt. Its report also described a staged exploration decision, pending Swedish licence transfers and a cash position that limits how much work existing funds can support.

Mapping will determine the next exploration step

In July 2026, the company flew approximately 670 line-kilometres at 25-metre line spacing across about 100 square kilometres. Turnstone Resources (ASX:TSR) did not report drilling during the quarter. Instead, the magnetic survey is being combined with geological mapping and existing geochemical information to determine whether drilling should proceed directly or targeted electromagnetic surveys should first refine possible targets.

The surveys provide geophysical observations rather than drilling assays or a newly defined mineral resource. Their role is to identify patterns for closer ground investigation. The company reported exploration expenditure of A$152,885, primarily associated with Swedish magnetic surveys and licence permitting, and described the next decision as dependent on interpretation of the combined datasets.

Swedish licences and approvals

The Swedish portfolio contains seven exploration licences covering approximately 98 square kilometres, held on a 100 per cent beneficial basis. Formal transfer of all seven licences to Turnstone Resources (ASX:TSR) still requires approval by the Mining Inspectorate of Sweden. The company expected that process to advance early in the December 2026 quarter, but the transfer had not been reported as completed in the September quarterly update.

The company exercised its option over Glava 100 on 1 June 2026, with A$150,000 consideration paid through 4,261,363 shares at A$0.0352. Foreign investment approval was obtained in July and shareholders approved the consideration in September. Those steps concern the acquisition process, whereas regulatory transfer of the broader Swedish licence portfolio is a separate pending milestone.

German potash interests remain under review

Turnstone Resources (ASX:TSR) also holds three perpetual mining licences at its Ohmgebirge potash project in Germany. The company reports a Probable Ore Reserve of 83.1 million tonnes at 12.6 per cent K2O and a Mineral Resource of 286 million tonnes at 13.1 per cent K2O. These are reported project figures rather than new September-quarter resource estimates.

Management is reviewing strategic options for the German assets, potentially involving a separate corporate vehicle or a joint venture investor. No definitive transaction was announced. An exclusivity arrangement relating to the Sollstedt mine purchase extends to 31 December 2027. The potash review remains separate from the Swedish copper-gold exploration programme and its immediate technical decision.

Quarterly liquidity and governance

At 30 September 2026, Turnstone Resources (ASX:TSR) held A$557,483 in cash following A$655,000 of operating outflows and A$773,000 of net financing inflow. Its A$1.1 million placement comprises 55 million shares at A$0.02, with the A$265,000 second tranche approved in October and received after quarter end. The Appendix 5B estimated funding of 0.85 quarters at the reported spending rate, with no committed facilities.

Board changes included Richard Pearce becoming non-executive chair in August and chief executive Len Jubber leaving that role in September. Directors were covering executive responsibilities while a future chief executive search was contemplated. A delayed German research and development tax rebate also remained unresolved. Such matters sit alongside the funding and licence dependencies affecting exploration planning.

Key Insights

Turnstone Resources (ASX:TSR) has completed airborne data collection in Sweden but has not yet made its subsequent electromagnetic-survey or drilling decision. Regulatory licence transfers, exploration prioritisation and new funding are still relevant conditions. Its German potash strategic review is another unfinished corporate workstream, rather than a completed disposal or restructuring.