This article is a sponsored feature from Mining.com.au partner Loyal Metals. It is not financial advice. Talk to a registered financial expert before making investment decisions.
A past-producing mine, untouched by exploration for nearly three decades, could hold the key to junior explorer Loyal Metals’ (ASX:LLM) future success.
After a calculated and thorough review of multiple opportunities, Loyal Metals acquired the long-forgotten Highway Reward Copper-Gold Mine — a project with the hallmarks of high-grade operations such as Sandfire Resources’ (ASX:SFR) DeGrussa Mine and MAC Copper’s CSA Mine.
DeGrussa transformed Sandfire from a junior explorer into a successful mid-tier copper producer, while CSA remains one of Australia’s highest-grade, longest-operating, and deepest copper mines.
A forgotten giant
Highway Reward operated between 1997 and 2005, producing 3.65 million tonnes @ 5.7% copper and 260,000 tonnes @ 4.5g/t gold.
At the time, copper traded at around $1.14 per pound, and gold hovered just below $400 per ounce.
“In 1997, the previous owners completed a Feasibility Study, developed a mine plan, executed it to plan, and closed operations in 2005,” says Loyal Metals’ Managing Director, Adam Ritchie, in an interview with Mining.com.au.
“This project hasn’t been reassessed in 28 years, and so much has changed —copper is up 600%, and gold has surged nearly 1,400%.”
Gold, now trading above $5,500 per ounce, has outpaced copper’s growth nearly twofold. Ritchie notes that the original mine plan focused solely on copper, overlooking the gold potential locked within sulphides.
Situated in Queensland’s prolific copper-gold region, Highway Reward shares strategic traits with revival stories like Spartan Resources’ (ASX:SPR) Dalgaranga Gold Project and Northern Star Resources’ (ASX:NST) Jundee operations.
Like DeGrussa and CSA, Highway Reward is a volcanic-hosted massive sulphide (VHMS) system, known for steeply dipping, high-grade copper “pipes” that often extend well beyond historical mining limits.
While DeGrussa evolved from a shallow pit to a multi-lens underground operation, CSA reaches depths of 1.9km and continues to produce. Highway Reward, by contrast, was only mined to 220m (open pit) and 390m (underground) — leaving its depth potential largely unexplored.
Modern tech, new eyes underground
Loyal Metals is applying a modern, data-led approach to unlock new potential at Highway Reward. The company is leveraging advanced geophysics and AI-driven 3D modelling to reinterpret historical data and uncover previously overlooked mineralisation zones.
In August, Loyal Metals adopted VRIFY’s DORA platform, which uses machine learning to integrate drilling, geochemistry, geophysics, and structural data —pinpointing drill targets in hours rather than months.
Complementing this, a high-resolution MobileMTd drone survey is underway to detect conductors that may have been missed by earlier exploration methods.
This strategy aligns with KoBold Metals, a Silicon Valley-based tech company pioneering the use of artificial intelligence in mineral exploration. Backed by high-profile investors, KoBold combines machine learning with geoscience to accelerate the discovery of critical metals like copper and lithium.
Its data-driven approach has already led to major finds in Africa and exploration partnerships across Australia and North America — setting a new benchmark for modern mineral discovery.
By adopting similar methodologies, Loyal Metals is positioning itself to uncover high-grade targets that traditional exploration may have missed — bringing a Silicon Valley mindset to one of Queensland’s most promising copper-gold assets.
Unlocking remnant and regional potential
Loyal Metals is also exploring remnant mining opportunities at Highway Reward, previously uneconomic due to low metal prices and the exclusion of gold in sulphides from the original mine plan.
The company has partnered with Dr Simon Beams, a geologist with nearly 40 years of experience in the Mount Windsor Volcanic Belt.
Beyond the mine itself, Loyal Metals sees significant upside across 3km of strike along favourable northeast-trending polymetallic VHMS zones within Trooper Creek dacite, rhyolite, and volcaniclastic rocks.
Highway Reward is located less than 40km from Charters Towers, a region with a rich copper-gold mining history.
Nearby operations include Newmont’s (NYSE:NEM) 3.2Moz Mt Leyshon Gold Mine and Yuxin Holding’s 3.4Moz Pajingo Gold Mine.
The project sits on granted mining leases, close to two processing plants, Glencore’s (LSE:GLEN) Townsville copper refinery, road and rail infrastructure, and the Port of Townsville.
“The granted mining leases provide an amazing speed-to-market opportunity, especially with copper and gold at all-time highs,” Ritchie says.
“This was an extremely attractive proposition for us.”
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Images: Mining.com.au & Loyal Metals
