Narryer Metals Secures District-Scale Chilean Copper Project With 49Mt Upside
Key Takeaways
- Narryer Metals (ASX: NYM) has agreed to acquire 100% of the Redhill Copper Project in southern Chile, a district-scale asset with five deposits hosting a JORC Inferred Resource of 4.3Mt at 1.7% Cu, 33 g/t Ag, and 0.3 g/t Au.
- The project carries a substantial Exploration Target of 16–49Mt at 1.2–2.6% Cu equivalent, representing the conceptual upside that NYM's staged three-year, 7,000m+ diamond drill programme is designed to test and convert.
- ASX-listed 29Metals has subscribed A$1.0 million into NYM at A$0.10 per share — a 54% premium to the pre-announcement share price — signalling strong strategic conviction from the vendor.
- The milestone payment structure ties a further A$1.0 million payment to delineation of a 12Mt JORC Resource at 2% or greater CuEq, directly aligning 29Metals' ongoing interest with NYM's exploration success.
- The transaction remains conditional on regulatory conditions precedent being satisfied on or before 31 December 2026, and consideration shares are subject to 12-month escrow from the date of issue.
Narryer secures 100% of district-scale Chilean copper project
Narryer Metals Limited (ASX: NYM) has announced a transformative transaction to acquire 100% of the Redhill Copper Project in southern Chile, a district-scale, high-grade copper, gold, and silver asset located on the Brunswick Peninsula in the Magallanes region, 110km southwest of Punta Arenas. The deal gives NYM entry into the world’s pre-eminent copper jurisdiction and exposure to a project with an existing JORC Inferred Resource, a substantial Exploration Target, and multiple deposits yet to be drill tested.
Alongside the acquisition, ASX-listed 29Metals Limited (ASX: 29M) has agreed to subscribe A$1.0 million in NYM placement shares at A$0.10 per share, representing an approximate 54% premium to NYM’s share price prior to the announcement date, signalling strong strategic alignment with NYM’s exploration programme.
Richard Bevan, Executive Chairman
“The Redhill Copper Project represents a rare, district-scale opportunity in a premier, mining-friendly jurisdiction. Cutters Cove, the most advanced area within the Project, features historic, high-grade copper production, an existing Resource and a substantial Exploration Target. The Cutters Cove mineralisation remains completely open along the current 5km strike length with multiple high-priority target areas already identified that have seen no historic drilling…”
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What the Redhill Copper Project brings to the table
An established resource base with room to grow
Redhill hosts an existing JORC Inferred Mineral Resource of 4.3Mt @ 1.7% Cu, 33 g/t Ag, and 0.3 g/t Au across five deposits, established through multiple drilling and channel sampling campaigns. The resource is classified as Inferred, reflecting the current level of geological confidence.
| Deposit | Category | Tonnes (Mt) | Cu% |
|---|---|---|---|
| Cristina | Inferred | 1.3 | 2.3% |
| Angelica | Inferred | 0.6 | 1.5% |
| Gorda | Inferred | 0.4 | 0.6% |
| Cutters | Inferred | 0.3 | 3.0% |
| Franceses | Inferred | 1.7 | 1.2% |
| Total | Inferred | 4.3 | 1.7% |
A large-scale Exploration Target signals major upside
Beyond the existing resource, the project carries a substantial Exploration Target of 16–49Mt @ 1.2–2.6% Cu, 0.4 g/t Au, 34–55 g/t Ag (1.8–3.3% CuEq). It is critical to understand what this means in practical terms: the potential quantity and grade of this Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Mineralisation remains open at multiple locations along a current 5km strike length, with numerous mineralised prospects yet to be drill tested. The Exploration Target breaks down into three styles:
- Extensions to existing veins: 14.6–23Mt @ 1.2–1.8% Cu, 1.8–2.5% CuEq
- New veins: 1.1–18.8Mt @ 1.9–3.5% Cu, 2.3–4.2% CuEq
- Sedimentary/shear contact hosted: 0.4–7.1Mt @ 1.5–2.8% Cu, 1.7–3.2% CuEq
What is a JORC Resource — and why does it matter for investors?
A JORC Resource refers to a concentration of minerals in the Earth’s crust with reasonable prospects for eventual economic extraction, classified by confidence level under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). The framework is used across Australia, New Zealand, and internationally, providing a standardised and auditable basis for reporting that reduces information asymmetry between companies and investors.
The three confidence categories matter. Inferred is the lowest, based on limited data with lower geological confidence. Indicated sits in the middle, with sufficient data to assume reasonable continuity. Measured is the highest, supported by enough data to apply modifying factors with confidence. Redhill’s existing 4.3Mt sits at the Inferred level, meaning it is real but conservative — established through drilling and channel sampling, not speculative.
An Exploration Target is a separate concept entirely. It is not a resource estimate and cannot be treated as one. It represents the conceptual upside that systematic drilling aims to test. For NYM, the gap between the 4.3Mt Inferred Resource and the 16–49Mt Exploration Target is the exploration opportunity: the drill programme is designed to begin converting that target into resource tonnes.
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Deal structure, strategic backing, and next steps
How the acquisition is structured
The transaction involves two separate streams that investors should distinguish clearly.
Transaction 1 — Acquisition of Redhill Magallanes, SpA from 29Metals:
- Upfront consideration of 20,000,000 new NYM shares, subject to a 12-month escrow from the date of issue
- A milestone payment of A$1,000,000 (payable in cash or NYM shares) upon delineation of a 12Mt JORC Resource at 2% or greater CuEq. Any milestone shares would be issued at the 10-day VWAP for NYM shares prior to achievement of the milestone, and the issue of any milestone shares is subject to shareholder approval
Transaction 2 — Strategic placement by 29Metals into NYM:
- 29Metals subscribing A$1.0 million at A$0.10 per share into NYM, representing an approximate 54% premium to NYM’s share price prior to the announcement date
- Placement shares subject to 12-month escrow from the date of issue. Funds raised are intended for further exploration at Redhill and working capital
Both the consideration shares and placement shares will be issued under Listing Rule 7.1 and 7.1A capacity. The transaction remains conditional on regulatory conditions precedent being satisfied on or before 31 December 2026.
In-country team and board appointment provide immediate operational capability
The acquisition includes an experienced in-country operational team, providing continuity and immediate capability on the ground at Redhill. Alongside this, Dean Hildebrand will be appointed as a Non-Executive Director, effective upon completion of the acquisition.
Hildebrand is currently Head of Investments at Mimaro, a major NYM shareholder. He was previously a director of Black Mountain, a US-based private equity firm focused on upstream and midstream energy and mining investments in the US and APAC, and a former director of ASX-listed Poseidon Nickel Ltd.
Drilling roadmap targets significant resource growth
NYM has outlined a staged three-year drill programme designed to systematically test and expand the current Exploration Target:
- Stage 1: Approximately 7,000m of diamond drilling targeting 5–15Mt of Exploration Target, with the goal of increasing the current Inferred Resource
- Stage 2: Additional diamond drilling targeting a further 5–20Mt of Exploration Target, focusing on sedimentary-hosted mineralisation
- Stage 3: Additional diamond drilling targeting a further 5–20Mt, focused on targeting depth extensions to mineralisation
Immediate work underway includes preparing and submitting regulatory drilling approvals, reviewing the previous conceptual mine study, preparing for the upcoming field season (which will initially focus on short-hole drilling around Ingleses and Franceses), and undertaking a structural mapping programme. The milestone payment structure — triggered by delineation of 12Mt @ 2% or greater CuEq — directly aligns 29Metals’ continued interest as a substantial shareholder with NYM’s exploration success, creating a logical progression from conceptual Exploration Target to expanded JORC Resource.
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