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Stage 2: Discovery drillingIllustrative example

Project Steppe-42

This is an invented example. It is not a real project and not an offer.

Summary

An invented example of a gold-copper porphyry at the discovery-drilling stage in Central Kazakhstan. Three seasons of drilling, 40 holes for about 11,500 m, hit a broad stockwork of quartz veins in most holes. The best intercepts are long and low to moderate grade, the typical pattern of a porphyry system near surface.

The holes are 80 to 200 m apart, too far apart for a resource estimate. The owner is looking for about $4 million of project-level equity to fund infill drilling, first metallurgical tests and a maiden JORC resource.

The data room is open to any signed-in user, without an NDA. Its viewer shows the drill holes, soil samples, geology map, 3D surfaces and a block model. This listing is illustrative and does not describe a real project.

  • 40 drill holes for about 11,500 m, diamond and RC, 2021–2023
  • Gold-copper stockwork intersected in 31 of the 40 holes
  • Best hole: 186 m at 0.82 g/t gold and 0.31% copper from 42 m
  • 1.6 km soil anomaly, open to the north-east under thin cover
  • Sealed road 18 km away; grid power line crosses the licence

History. Soviet-era geologists mapped copper staining and old workings in the area in the 1960s and drilled six shallow holes in 1978, which found low-grade copper but were never assayed for gold. The ground then lay idle. The current owner applied for the exploration licence in 2020 after reviewing the archive, was granted it in March 2021, and has since run a soil survey, ground magnetics and induced polarisation, and three drill seasons.

Stage classification

Stage 2: Discovery drilling, 40 holes hit, too widely spaced for a resource

In short: Drilling has found a gold-copper porphyry system: most of the 40 holes intersected stockwork mineralisation. The holes are still too far apart to estimate tonnes and grade, which keeps Steppe-42 in stage 2, towards its end.

What puts it at this stage

  • 40 diamond and RC holes for about 11,500 m, drilled 2021–2023
  • Mineralisation intersected in 31 of the 40 holes, over a zone about 900 m long and 400 m wide
  • Modern data with certified standards, blanks and duplicates, assayed at an accredited laboratory

What keeps it from stage 3

  • Hole spacing of 80 to 200 m is too wide for a resource estimate
  • No density measurements or metallurgical testwork yet
  • No resource under any reporting code

What would move it up

  • About 9,000 m of infill drilling at 50 m spacing, density and metallurgical tests, then a maiden JORC resource (stage 2 to 3). This is what the deal funds.

What could move it back

  • If infill holes show the higher-grade core is narrower or less continuous than the wide holes suggest, the resource may be too low-grade to be economic

Read about stage 2 or see the full stage guide.

Title and ownership

100% held by the owner · 2 encumbrances · title: stated by the owner

Who holds the ground, how much of it is on offer, and what already sits over it.

Licence
Exploration licence
Area
25 km²
Licence expiry
2030
Owner's share
100%
Title
Stated by the owner
Renewal
Six-year term to 2027, extendable once to 2030; conversion to a mining licence can be applied for during the term
Work commitments
Minimum annual exploration spend set in the licence work programme; the owner reports spend above the minimum for 2021–2025
Encumbrances
  • Royalty: 1% net smelter return royalty to the vendor of the Soviet-era data package
  • Other: Kazakhstan's state pre-emptive right over transfers of subsoil-use rights; consent is needed for any sale of the licence or a stake in it
Disputes
None known

Licence numbers and the owner's name are not published.

Location and access

Central Kazakhstan, Kazakhstan · Sealed regional road 18 km away

The shaded circle is deliberately imprecise. Exact locations and licence numbers are not published.

  • Sealed regional road 18 km away; graded track to the camp
  • Rail siding about 65 km away, on the line to Karaganda
  • A 35 kV grid power line crosses the southern part of the licence
  • Regional centre with an airport and services about 140 km by road

Geology and resources

40 holes, 11,500 m drilled · no resource yet

What is in the ground, how well it has been tested, and how confident the estimate is.

A gold-copper porphyry system around a quartz-feldspar porphyry stock that intrudes Devonian siltstones and andesitic volcanic rocks. Mineralisation is a stockwork of quartz-magnetite-chalcopyrite veins with pyrite, strongest in a potassic core about 400 m across and fading outwards into a pyrite-rich halo. Oxidation reaches 20 to 40 m below surface. A north-east-trending fault cuts the eastern side of the system.

Best results

  • ST008: 186 m at 0.82 g/t gold and 0.31% copper from 42 m, including 38 m at 1.64 g/t gold and 0.52% copper
  • ST014: 142 m at 0.71 g/t gold and 0.27% copper from 18 m
  • ST022: 96 m at 0.94 g/t gold and 0.22% copper from 110 m
  • ST031: 64 m at 0.58 g/t gold and 0.35% copper from 205 m, ending in mineralisation
  • Soil grid: a 1.6 km by 0.6 km gold-copper anomaly above 40 ppb gold, open to the north-east

As reported by the owner. Best results are, by definition, not typical of the whole project.

Drilling

Holes and metres
40 holes, 11,500 m
Years drilled
2021–2023
Methods
Diamond core, Reverse circulation (RC)
Hole depths
150–480 m
Hole spacing
80–200 m
Historical share
0% of metres drilled before modern codes
Quality control
Certified reference standards and blanks inserted every 20 samples, field duplicates every 40. Fire assay for gold (50 g charge) and four-acid ICP for copper at an accredited laboratory in Almaty. Collars surveyed by differential GPS; downhole surveys every 30 m. One hole (ST017) was not surveyed downhole and is treated as vertical.

Resources

No resource estimate yet. The typical next step is enough drilling for a maiden resource. See the odds and costs

Exploration upside

The system is open at depth: hole ST031 ended in mineralisation at 269 m. The soil anomaly continues north-east under thin sand cover where no holes have been drilled, and an induced-polarisation chargeability high 1.2 km to the south has not been tested.

Engineering and reserves

PEA planned (2028) · no reserves

Studies are events: reserves exist only once a pre-feasibility or feasibility study is published.

Studies

  • Preliminary economic assessment (PEA)Planned, 2028

    Planned after a maiden resource. The owner expects to study an open pit with conventional flotation for a copper-gold concentrate, and heap leaching of the oxide cap.

Metallurgy

Notes
No testwork yet. Coarse rejects from six holes are stored for first bottle-roll and flotation tests.

Reserves

No reserves. Reserves need at least a published pre-feasibility study.

Permitting and social licence

2 granted · 1 in progress · 2 not started (of 8 steps)

The approvals a mine needs, in the usual order. Early projects only need the first few.

  1. Exploration permits

    Exploration licence with an approved work programme; drilling notified to the regional authority each season

    Granted
  2. Surface rights and land access

    Temporary land-use agreement with the district for the drill area and camp

    Granted
  3. Environmental baseline studies

    Planned to start alongside infill drilling

    Not started
  4. Environmental impact assessment

    Needed before conversion to a mining licence

    Not yet required
  5. Mining licence or concession

    Can be applied for during the exploration term after a reserve report

    Not yet required
  6. Water rights for operations

    The steppe is dry; a groundwater search is part of the next programme

    Not started
  7. Community and Indigenous agreements

    Informal engagement with the district administration and herder families since 2021

    In progress
  8. Other approvals

    Protected areas, heritage, power connection, tailings design, closure plan and bond.

    Not yet required

Environment and community

Open steppe used for seasonal grazing; two herder winter camps about 6 km from the drill area. No protected areas or recorded heritage sites inside the licence. Water for drilling is trucked from a licensed borehole. Informal meetings with the district administration and herders since 2021; no baseline studies yet.

The checklist is general. Exact steps vary by country. Draft, pending review.

Deal and use of funds

Equity or project financing / Joint venture or earn-in · about $4M

What the owner is offering and what the money pays for.

What is offered

  • 30% stake for $4MOption 1: Equity or project financing

    Project-level equity in the licence-holding company, for a 30% stake.

  • 51% interest for $9M of spendingOption 2: Joint venture or earn-in

    The partner earns 51% by spending $9M over 4 years. The partner, after earning 51%.

Use of funds

ActivityAmountWhat it achieves
Infill drilling, about 9,000 m diamond and RC at 50 m spacing$2.4MEnough data density for an Inferred and part-Indicated resource
Density measurements and first metallurgical testwork$0.4MRecoveries for oxide and sulphide material
Maiden resource estimate under the JORC Code$0.3MFirst code-compliant resource
Ground geophysics and 3,000 m of scout drilling on the north-east and south targets$0.6MTest for a second centre in the system
Environmental baseline start, community work and licence holding costs$0.4MLicence in good standing; baseline under way for a future mining licence
Total$4M

Indicative terms from the owner. Not an offer. Any deal is subject to due diligence and final documentation.

Source of the information

Provided by the owner, not verified by Lode Exchange

Everything in this listing and its data room comes from the owner. Lode Exchange does not verify licences, technical data or the owner’s claims. Do your own due diligence.

Lode Exchange publishes educational material only. Nothing on this site is an offer, solicitation or investment advice, and Lode Exchange is not authorised or regulated by the Financial Conduct Authority. Mineral exploration is high risk and most projects fail; investors could lose all of their capital. Project listings are teasers, not offers, and examples and figures marked illustrative do not describe real projects.

Deal terms on this page are indicative, provided by the owner, and not an offer. Any deal is subject to due diligence and final documentation. The deal calculator uses the reader's own assumptions; its results are illustrations, not valuations by Lode Exchange. Registering interest is not an application to invest.