Key Highlights

  • Reconnaissance drilling of more than 7,000 metres has started at the Cosmo gold project.
  • The project covers 580 square kilometres in the Laverton district.
  • It is the first drilling on the project in more than 30 years.
  • Soil anomalies are being tested under up to 100 metres of cover.

Riedel Resources (ASX:RIE) has started a reconnaissance drilling programme of more than 7,000 metres at its 580-square-kilometre Cosmo gold project in Western Australia's Laverton district. The company says it is the first drilling on the project in more than 30 years.

The programme focuses on the Ironbar, Toecutter and Cheedo prospects on the western side of the project and will only partially test targets defined by recent soil geochemistry.

Chief executive Paul Schmiede said the drilling would test targets near interpreted structures and rock contacts and, beyond testing for gold, would provide geological information to guide exploration across more than 50 kilometres of largely unexplored, mostly covered greenstone belt.

How the programme works

Riedel plans about 110 aircore holes, with reverse circulation where needed, along five east-west drill fences ranging from 200 metres to about 2,000 metres long. Holes will be spaced about 40 metres apart and drilled until the bit can no longer penetrate, typically at the boundary between cover and fresh rock.

Sand and clay cover is expected to be about 50 metres thick but could exceed 100 metres. Samples will be taken every metre, with four-metre composites sent for assay first and individual metres re-assayed where composites exceed a threshold.

Aircore drilling is a fast, relatively cheap way to sample the top of bedrock beneath cover. It is designed to find signs of gold and map geology, not to define a resource.

What the targets are based on

The targets come mainly from regional soil surveys that Riedel describes as the first broad-scale exploration on the project. They outlined gold-in-soil anomalies over an aggregate strike length of 45 kilometres, with individual footprints up to 1.8 kilometres wide. Interpretation of airborne geophysics suggests regional and smaller structures near some targets, as well as contacts between mafic-ultramafic volcanic rocks and intrusive rocks.

These features are inferred from interpretation. A soil anomaly shows gold at surface but does not confirm mineralisation below, particularly where thick transported cover may have moved material.

Why the area may have been overlooked

The Laverton district hosts major deposits, including Gruyere at 9.1 million ounces and Duketon at 7.4 million ounces. Riedel attributes the lack of major discoveries at Cosmo to historical land access constraints and the differing Commodity priorities of past explorers at Mt Venn, rather than poor geology. That is the company's explanation; Riedel itself notes that nearby discoveries do not guarantee success on its ground.

Gold was first discovered in the area in the 1890s, and numerous historic workings are recorded across the tenure, which suggests gold is present at least locally.

Setting expectations

Reconnaissance aircore programmes rarely produce headline intercepts. Success at this stage usually means identifying anomalous gold in bedrock, favourable rock types or alteration that justify tighter follow-up drilling. Investors should therefore judge the results by whether they narrow the search, rather than by whether they deliver a discovery straight away. Thick cover can also mute surface signals, making soil anomalies much harder to interpret reliably.

Ownership

Riedel acquired the Cosmo and Mt Venn projects, covering about 1,000 square kilometres, in late July 2026. It owns 100% of Yikarri Resources, which holds 80% of the Cosmo exploration licences, except E38/2274, where its effective interest is 60%. Yikarri's right to buy the remaining 20% from Cosmo Gold Limited expires in early December 2026. Exercising it would lift Yikarri to 100% of most licences and 75% of E38/2274.

What comes next

Drilling is expected to take about three weeks, followed by composite assays and, depending on results, further drilling. The option decision in December is the other near-term item to watch. Riedel's ability to follow up any encouraging results will depend on raising further capital.