Octava fills its coffers for new Tasmanian copper tilt

Octava Minerals has clinched a $1.5 million raising to help the company secure the Federation copper-zinc-silver project in western Tasmania, tapping into a region famed for its mineral wealth and pro-mining jurisdiction. 

The project, stumbled upon decades ago by then operator and nearby tin prodigy Renison, has a promising set of high-grade historical intercepts at its Sweeney’s prospect that are untested since the 1970s. 

Octava has simultaneously knocked out a placement to sophisticated investors to the tune of $1.5 million by issuing 50 million shares at 3 cents per share - a 25 per cent discount to the last close of $0.04. 

The investor faithful will also receive one free unlisted option for every two shares for which they subscribed, exercisable at $0.08 over three years, subject to shareholder approval. 

Octava says the funds will drive exploration and due diligence at Federation, while the company continues to advance metallurgical test work at its Byro rare earths and lithium project.

Located 12km west of the Tasmanian town of Zeehan, Federation spans 121 square kilometres near the world-class Renison tin mine, which is Australia’s largest tin producer. 

Renison’s geologists were focused on cassiterite in the 1970s and drilled 18 diamond holes, accidentally striking a copper treasure trove, with standout hits including 23m at 1.19 per cent copper, 1.70 per cent zinc, 121 grams per tonne (g/t) silver and 1.17 per cent tin from 71m. 

Accessory antimony, lead and fluorite were also logged, but with tin as their priority, Renison left the multi-metal bounty untouched and the mineralisation open at depth and along an interpreted south-southeasterly strike.

Octava Minerals chief executive officer Bevan Wakelam said: “The historic mineral grades, alteration assemblages and geological structures encountered at Federation point to a potentially significant discovery opportunity. The western region of Tasmania has a strong history of prospectivity and mineral discovery. We look forward to drilling this target and others identified within the project area.”

Octava says Federation’s geological setting is a miner’s dream. It is perched on the edge of Heemskirk granite, a multiphase intrusion that pumped metal-rich fluids into Proterozoic quartzite, black shale and carbonate-rich beds. 

Large regional faults acted as highways for these hot fluids, forming what could be a substantial volcanogenic massive sulphide system at Sweeney’s. 

Untested by modern geophysics, the prospect holds promise for stringer zones and deeper conductors, with additional targets across the project area ripe for exploration.

The project’s proximity to Renison’s world-class operation, 15km northeast, as well as Kaiser Reef’s profitable Henty gold mine gives Federation plenty of promise in a mining-friendly address. 

Renison churns out about 6400 tonnes of tin annually, leveraging top-tier infrastructure such as three-stage crushing and flotation circuits, plus it has access to Tasmania’s renewable hydropower grid. Federation has the same logistical edge, with nearby processing facilities, roads and access to the Port of Burnie.

The acquisition of Federation, previously held by Magnes25, is subject to 12-months’ due diligence. Upon completion, Octava will issue 3.5 million shares to Magnes25 shareholders, escrowed for 12 months, and grant a 1 per cent net smelter royalty. An additional 2 million shares will be issued if a mineral resource equivalent to 100,000 ounces of gold, copper or tin equivalent is defined.

Octava says its broader portfolio remains on the go. At its Byro project, in WA’s Gascoyne region, a CSIRO team is busy testing low-cost extraction methods for rare earths and lithium from the hosting Permian black shales.

The company’s move into Tasmania’s critical minerals space helps highlight the state’s drive to generate more than 50 per cent of its export earnings from mining. As copper hits an all-time high price, it’s a timely pivot for Octava as it aims to turn a forgotten find into Tasmania’s next big mining story.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au