Tali Resources Schedules Diamond Drilling at Khya Copper-Gold Target

Tali Resources Sets Drilling Date for Large-Scale Khya Copper-Gold Target in West Arunta

Tali Resources Ltd (ASX: TR2) has scheduled diamond drilling to begin in mid-August 2026 at the Khya prospect within its West Arunta Project in Western Australia, bringing a near-term test of a concealed copper-gold target that the company says has been sharpened by additional geophysical interpretation. Khya stands out for its 3.5km diameter magnetic structure and 2.0km strike semi-coincident gravity high anomaly, with Tali interpreting the target as prospective for intrusion-related copper-gold mineralisation.

The ASX announcement also confirmed that Tali has secured a $270,000 Exploration Incentive Scheme (EIS) co-funding grant from the Geological Survey of Western Australia (GSWA), while all heritage and regulatory approvals are already in place. For investors, that combination matters because it moves the story from target generation to execution, with drilling set to test whether the geophysical signals correspond to mineralised rock at depth.

"Khya is an exciting, concealed target positioned within the major crustal-scale Lake Mackay Fault Zone in the West Arunta. The combination of a circular magnetic structure, semi-coincident gravity high anomalies and a favourable structural setting, provides a compelling target for an intrusion-related copper-gold system," said Rhys Bradley, Managing Director.

"With additional geophysical interpretation, EIS co-funding secured, and all approvals in place, we are looking forward to drill testing Khya in mid-August."

What Makes Khya a Priority Drill Target?

According to the ASX announcement, Khya has been prioritised over the nearby Vanda prospect because its geophysical signature is simpler and more clearly defined. In exploration, clarity matters. A more focused anomaly can make the first drill test more efficient and may provide a cleaner read on whether the geological model is correct.

The company described Khya as a discrete magnetic and gravity target within the Lake Mackay Fault Zone, which it referred to as a major trans-lithospheric fault corridor. In simple terms, that means a very large fault system that extends deep into the crust and may act as a pathway for heat, magma and metal-bearing fluids.

Several features form the basis of Tali's interpretation:

• A broadly circular magnetic feature measuring about 3.5km in diameter
• Elevated magnetic intensity with a peak of about 350nT above background in the south-west
• A discrete gravity high anomaly of about 1.0mGal above background
• A priority 2.0km-long tabular gravity body on the south-west side of the system
• Bedrock depth modelled at 250m to 300m below ground level
• A planned drill hole designed to intersect modelled gravity and magnetic target zones toward an end-of-hole depth of around 700m

Tali's interpretation is that the magnetic ring may represent a felsic to intermediate intrusive ring dyke above a deeper intrusive plug. The denser gravity responses may reflect alteration, veining, or a more mafic phase. For non-specialists, alteration refers to chemical changes in rock caused by hot fluids, while veining refers to minerals filling cracks in the rock. Both can be associated with mineral systems.

Why Khya Was Selected Ahead of Vanda

The ASX update made it clear that the choice to drill Khya first was deliberate rather than simply sequential. Vanda remains part of the broader project portfolio, but Khya offered a more straightforward test case.

A comparison of the two prospects, based on the company's description, is set out below:

The announcement stated that unconstrained inversion modelling indicates a subvertical to south-west dipping gravity source, developed in and above a south-west dipping magnetic unit. In practical terms, that modelling helps geologists estimate the likely shape and orientation of buried rocks using measurements taken from the surface.

For investors, the value of this lies in the drill design. Tali has outlined a single purpose-built diamond hole intended to pass through the cover sequence and into both the modelled gravity and overlapping magnetic target zones. A clear target does not guarantee success, but it can improve the quality of the geological test.

What Is an Intrusion-Related Copper-Gold System?

Tali is targeting an intrusion-related copper-gold system at Khya. This is a useful concept for investors to understand because the geological model explains why the company considers the target worth drilling.

An intrusion-related system forms when magma moves into the Earth's crust and cools underground. As it cools, it can release hot fluids that carry dissolved metals such as copper and gold. If those fluids move through fractures and reactive rocks, the metals may be deposited and concentrated into zones of mineralisation.

At Khya, the company interprets the circular magnetic feature as evidence of an intrusive complex. The adjoining gravity high may indicate denser rock, alteration, or mineral-bearing veining around that intrusive centre. Furthermore, the location within the Lake Mackay Fault Zone adds another supportive feature because major deep structures can provide pathways for magma and fluids.

Key Terms Explained

Some key terms from the announcement are worth breaking down:

• Magnetic anomaly: A local change in the Earth's magnetic field caused by rocks with different magnetic properties.
• Gravity anomaly: A local variation in gravity caused by underground rocks having different densities.
• Ring dyke: A circular or curved body of intrusive rock formed when magma fills fractures.
• Inversion modelling: A process used to convert surface geophysical readings into a three-dimensional estimate of what may be below ground.
• Trans-lithospheric fault: A deep fault that cuts through a large part of the crust and may help move magma and fluids upward.
• EIS co-funding grant: A drilling support programme administered by GSWA for eligible exploration programmes that generate new geological information.

In investment terms, large intrusion-related systems can host sizeable deposits if the geology, fluids and timing all align. Khya's 3.5km scale indicates a large geological footprint, although drilling is needed to determine whether that footprint includes economically meaningful mineralisation.

Planned Khya Drill Hole and What It Is Designed to Test

The ASX announcement outlined that the planned diamond hole will target the south-west Khya gravity high anomaly. The company stated that the hole is designed to pass through the base of cover and into the modelled gravity zone before reaching the overlapping magnetic target area at depth.

The main technical parameters disclosed are summarised below:

Diamond drilling is commonly used when a company needs continuous rock core rather than chips. That core can provide more precise information on rock type, structure, alteration and any mineralisation encountered. In Khya's case, the method is well suited to a first-pass test of a deep concealed target.

Importantly, the company reported that all heritage and regulatory approvals are in place. That reduces the risk of timetable slippage from administrative processes and keeps the focus squarely on operational execution.

Aircore Drilling Continues to Build the Broader West Arunta Pipeline

Khya is the immediate catalyst, but the ASX update also highlighted progress across Tali's wider West Arunta Project. An expansive aircore drilling programme began in June and is targeting a mix of:

• Gravity-only anomalies
• Coincident gravity and magnetic-high anomalies
• Magnetic-high only anomalies

These anomalies are located near the Central Australian Suture, which the company described as a major crustal-scale structure. Tali stated that these prospects are considered prospective for copper, critical minerals and precious metals.

Prospects Already Drilled

Aircore drilling has been completed at Lonar East, Chilka, Gibson West, Caspian East and Hutt. Following the Khya diamond programme, aircore drilling is planned to recommence in late September 2026 to test Caspian North, Caspian North-East, Hutt West, Verde East and Verde West.

For investors, this broader pipeline is relevant because it means Tali is not relying solely on one target for newsflow. The company is running a staged exploration programme across multiple prospects within the same regional project area.

Why the West Arunta Setting Is Attracting Attention

The ASX materials describe the West Arunta Orogen as prospective for several deposit types, including:

• Iron oxide copper gold (IOCG)
• Nickel-copper-platinum group element sulphides
• Carbonatite-associated mineralisation
• Sediment-hosted copper deposits

The region remains relatively underexplored in parts because much of the bedrock is covered by sediment and desert sands, which can make surface mapping difficult. That is why geophysics takes on a larger role in generating targets. Magnetic, gravity and passive seismic surveys are being used by Tali to identify buried structures and potential intrusive centres beneath cover.

That geological context does not confirm a discovery at Khya. It does, however, explain why a concealed target with coincident magnetic and gravity features inside a major fault corridor is being advanced to diamond drilling.

Investment Relevance and Upcoming Catalysts

Tali's latest update presents a classic early-stage exploration setup. The market now has a defined timetable, a specific drill target, and a funded first-pass hole aimed at a large concealed copper-gold system. The near-term points investors are likely to monitor include:

Several elements stand out from the announcement:

1. Large-scale target footprint — Khya's 3.5km magnetic structure and 2.0km strike gravity anomaly provide a sizeable geological target.
2. Multi-dataset target generation — The target has been refined using airborne magnetics, airborne gravity gradiometry, ground gravity and passive seismic data.
3. External support through co-funding — The $270,000 EIS grant helps offset drilling costs and reflects that the programme met the criteria of the GSWA scheme.
4. Execution readiness — With approvals in place, the programme is positioned to move directly into drilling.
5. Broader project pipeline — The ongoing aircore campaign adds additional datapoints across the West Arunta landholding.

For junior explorers, a first drill test of a concealed geophysical target is a key inflection point because it can either support or challenge the company's geological model. At Khya, the upcoming hole is designed to answer that question directly.

Why Investors Will Be Watching the Khya Result

The immediate significance of the announcement is straightforward. Tali Resources is moving from interpretation to drill testing at one of its highest-priority copper-gold targets. According to the company, Khya combines scale, structural position and coincident geophysical signatures in a way that justifies diamond drilling.

Whether the hole confirms the model remains to be seen, and the ASX announcement does not make any claim of discovery. What it does provide is a well-defined exploration target, a set drilling timeline, and a broader regional programme that continues after the Khya test.

For ASX investors focused on early-stage copper-gold exploration, the next phase at TR2 is likely to centre on two questions: whether the planned drill hole intersects the intrusive and dense zones as modelled, and what that reveals about the mineral potential of the broader West Arunta Project.

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