Daly Resources Launches Soil Sampling on World-Class Zinc Corridor
Key Takeaways
- Daly Resources has commenced soil sampling at the Hot Spring target within its 100%-owned, 1,124 km² Batten Project in the Northern Territory, with results expected to sharpen drill targeting ahead of maiden diamond drilling.
- Hot Spring sits on the Bald Hills Fault structural corridor — the same geological architecture that controls the position of the 227Mt HYC deposit (13.3% Zn+Pb) and the 58Mt Teena deposit (12.7% Zn+Pb), located 20–30 km to the east.
- The soil sampling grid runs at 100m centres along lines spaced 400m apart, directly replicating the approach used at Teena, where historical sampling identified a coherent multi-element anomaly above deeply buried mineralisation.
- Environmental approvals for drilling at Hot Spring are already in place, meaning a positive geochemical result could support an efficient transition to maiden diamond drilling once target definition is complete.
- Daly holds more than 6,500 km² of granted tenure across three Northern Territory projects — Batten (zinc), Huckitta (fluorite and sediment-hosted copper), and Broughton (sediment-hosted copper-zinc) — providing multi-commodity exploration exposure.
Soil sampling kicks off at Hot Spring as Daly targets world-class zinc corridor
Daly Resources (ASX: DLY) has commenced a systematic soil sampling programme at the Hot Spring target within its 100%-owned Batten Project in the Northern Territory, with results expected to sharpen drill targeting ahead of maiden diamond drilling. The company’s high-priority zinc prospect sits on the same structural corridor that hosts the world-class HYC and Teena zinc deposits, located 20–30 km to the east, and environmental approvals for drilling at Hot Spring are already in place.
The programme launches at a favourable moment for zinc exploration, with LME zinc prices trading near four-year highs on the back of tightening global supply. Alongside the geochemical work, a regional target review is underway with specialist consultants engaged to widen the broader exploration pipeline.
Key project facts:
- Batten Project size: 1,124 km², 100%-owned
- Hot Spring distance from HYC/Teena: 20–30 km west
- Drilling environmental approval: already secured
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Why the Hot Spring target matters — following a world-class deposit blueprint
Hot Spring sits on the western continuation of the Bald Hills Fault structural corridor, the same geological architecture that controls the position of two of the world’s largest sediment-hosted zinc systems: the McArthur River Mine (known as HYC) and the Teena deposit. Both are on third-party tenure and are presented here as regional geological benchmarks only — Daly has no interest in either deposit.
The exploration model rests on a proven geological principle. Growth fault-bounded sub-basins within the Barney Creek Formation created the accommodation space, thicker prospective stratigraphy, and fluid pathways that concentrated and preserved the giant zinc-lead systems at HYC and Teena. Daly is applying this same architecture to the underexplored western segment of the same deposit trend, where Hot Spring displays comparable host rock geology and structural setting.
Regional zinc benchmarks — third-party deposits, geological context only
| Deposit | Size | Grade (Zn+Pb) | Silver | Host Formation | Distance from Hot Spring |
|---|---|---|---|---|---|
| McArthur River Mine (HYC) | 227Mt | 13.3% Zn+Pb (9.2% Zn, 4.1% Pb) | 41g/t | Barney Creek Fm | ~20–30 km east |
| Teena (JORC 2012 Inferred) | 58Mt | 12.7% Zn+Pb (11.1% Zn, 1.6% Pb) | — | Barney Creek Fm | ~8 km west of HYC |
Note: HYC and Teena are on tenure outside Daly’s ground. Historical estimates and geochemistry results are third-party data that Daly has not independently verified.
How the soil programme works — and what a positive result means
Soil geochemical sampling involves collecting surface soil samples across a target area at regular intervals to detect trace metal signals that may indicate mineralisation at depth, even where that mineralisation is substantially buried. The technique is particularly effective when a long-lived fault system has acted as a conduit for metal leakage over geological time.
The Teena deposit provides the direct analogue. Historical soil sampling at Teena identified a coherent multi-element anomaly — elevated lead, zinc, arsenic, cadmium, and thallium — above deeply buried mineralisation, interpreted to reflect fault-related metal leakage through the Bald Hills Fault system. This is the proven approach Daly is now replicating at Hot Spring.
The sampling grid covers the full target corridor at 100m centres along lines spaced 400m apart, spanning the projected growth fault zone, the concealed sub-basin, and existing airborne electromagnetic responses. Multi-element results will be assessed for coherent metal and pathfinder anomalies.
For investors, a coherent multi-element surface anomaly at Hot Spring would validate the sub-basin model and sharpen drill-hole positioning, moving the company materially closer to first drill testing. With environmental approvals already in hand, and while remaining approvals are still being progressed, a positive geochemical result would support moving efficiently toward a drill programme once target definition work is complete.
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Executive Chairman’s view and what comes next
Mike Edwards, Executive Chairman
“What makes this soil program compelling is the direct analogy with Teena, where historical work demonstrated that a deeply concealed sub-basin hosted zinc system can generate a coherent multi-element geochemical footprint at surface, interpreted to reflect fault-related metal leakage through the long-lived Bald Hills Fault system.
“At Hot Spring, we are testing the interpreted western continuation of that same structural corridor, which controls the position of the world class HYC and Teena deposits. A coherent geochemical response along this trend would materially strengthen our growth-fault and concealed sub-basin model and provide a much stronger basis for targeting drill hole positions – work that comes at an opportune time, with zinc prices trading near multiyear highs on the back of tightening global supply.
“Receiving environmental approval for drilling at Hot Spring is an important step forward for the project, and while we are still progressing the remaining approvals required, it means we are well placed to move efficiently toward drill testing once our target definition work is complete.”
The near-term pathway from here follows a clear sequence:
- Soil geochemistry results assessed for coherent multi-element anomalies
- Regional prospect review findings integrated, drawing on specialist consultant input
- Drill targets refined and finalised based on combined datasets
- Maiden diamond drilling to follow, with environmental approvals already in hand
Batten is one piece of a broader Northern Territory portfolio. Daly holds more than 6,500 km² of granted tenure across three projects: Huckitta (prospective for fluorite and sediment-hosted copper), Broughton (targeting sediment-hosted copper-zinc), and Batten (zinc), providing multi-commodity exposure across some of Australia’s most underexplored mineral provinces.
The Huckitta fluorite discovery, located 5km west of the original target, adds another dimension to Daly’s Northern Territory portfolio alongside the zinc-focused work at Batten, underscoring the company’s multi-commodity exposure across the region.
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