Targets for the next drilling stage
The proposed drilling will test the strongest chargeability responses within the Southern Breccia Prospect, along with other locations where geological and geochemical anomalies coincide. The annual report describes a program that has been designed, rather than completed drilling or new drill results.
The targets follow an induced polarization (IP) survey completed in May 2025. According to the company's May 29, 2025, ASX announcement, Australian Geophysical Services used Gradient Array (GAIP) and Dipole-Dipole (DDIP) configurations, covering two GAIP blocks measuring 1,000 by 1,100 meters each.
The survey's highest chargeability response extended 400-500 meters along strike and was centered on 303525E-7128150N. Consulting geophysicist Mitre Geophysics recommended testing the best chargeability anomalies with at least two drill holes.
Subsequent geological mapping identified the Southern Breccia Prospect. The weakly silicified breccia zone runs approximately 600 meters north-south and reaches up to 170 meters in width in places. The annual report records subdued gold values at parts-per-billion levels in rock, soil and rubble samples. Copper values associated with the breccia and IP anomalies were weak, as were zinc responses along the main IP axis.
Project location and earlier gold intercepts
May Queen consists of two granted Exploration Permits for Minerals, EPM 19419 and the adjacent EPM 27746, in Queensland's Brovinia goldfield. The 2026 Annual Report places the project approximately 375 kilometers by road from Brisbane and approximately 225 kilometers from the Port of Bundaberg.
The company's assessment of the area's gold potential also draws on drilling by previous explorers and its own maiden diamond drilling program. Its May 29, 2025, announcement reported an intercept in hole BPH015 of 26 meters at 8.37 grams per metric ton of gold from surface. That interval included 3 meters at 18.9 grams per metric ton from 9 meters and 4 meters at 38.8 grams per metric ton from 21.8 meters.
Hole BPH01 returned 2 meters at 73.4 grams per metric ton of gold from 32 meters, including 1 meter at 145 grams per metric ton. Other reported intercepts were 3 meters at 9.27 grams per metric ton from 46 meters in MQN05 and 6 meters at 1.99 grams per metric ton from 35 meters in MQD0001.
Capital raised and financial position
Australasian Metals completed a placement on September 15, 2026, issuing 8,076,918 fully paid ordinary shares at $0.13 each. The transaction raised approximately $1.05 million before costs, according to its September 2026 quarterly activities report. At September 30, the company reported approximately $3 million in cash and no debt. Its corporate disclosures have also included quotation of new securities.
For the year ended June 30, 2026, the company recorded an after-tax loss of $656,344, compared with a loss of $2,582,668 in 2025. Cash reserves stood at $2,307,487 at June 30, according to the annual report.
The company remains loss-making. Explorers of its size often require additional capital, and further share issuance can dilute existing holders. Potential gold-price weakness, permitting timelines and the early stage of the projects are also risks to consider as exploration advances.
Gold portfolio discussions and separate bauxite work
The September 2026 quarterly report also disclosed preliminary discussions about potentially spinning off Australasian Metals' gold portfolio into a separately listed entity. These remain early-stage discussions, not a completed transaction.
Separate from the gold project, May Queen South Bauxite has a JORC 2012 Inferred Mineral Resource of 54.9 million metric tons, grading 37.5% total Al2O3, 5.2% TiO2 and 7.9% reactive SiO2. The quarterly report also cited bulk sampling reported on July 22, 2026: composite Al2O3 grades averaged 41.77%, while individual samples reached up to 58.7%.
