Empire Resources surges to 52-week high after striking high-grade copper at Yuinmery—what it means for investors

Empire Resources Limited (ASX: ERL) has announced positive results from its latest reverse circulation (RC) drilling campaign at the Yuinmery Copper-Gold Project, located in the resource-rich Youanmi Greenstone Belt in Western Australia. The program, completed in March 2025, yielded multiple zones of copper-gold mineralisation across the YT12 and YT19 prospects, reinforcing the project’s mineral potential and prompting renewed investor interest in the ASX-listed explorer.

These results follow earlier drilling campaigns in late 2024 and January 2025, with Empire Resources seeking to build on historical intercepts and systematically define new high-priority targets. The company’s share price rose by 25% following the announcement, reaching its 52-week high, and triggering a broader conversation around the long-term potential of copper-gold exploration in Western Australia.

Where is the Yuinmery Copper-Gold Project and why is it attracting investor interest?

The Yuinmery Copper-Gold Project is located approximately 470 kilometres northeast of Perth and 80 kilometres southwest of Sandstone. The site is accessible via major regional highways, providing convenient logistics for ongoing exploration activities. Empire Resources holds full ownership over key tenements in the project area, which covers the eastern portion of the Archaean Youanmi Greenstone Belt—a proven mineral province hosting significant gold and base metal occurrences.

Empire’s flagship asset at the project is the Just Desserts deposit, which contains an Inferred JORC 2012 Resource of 2.52 million tonnes grading 1.31% copper, 0.49 grams per tonne gold, and 1.76 grams per tonne silver using a 0.5% copper cut-off. The geology of the region is favourable for volcanogenic massive sulphide (VMS) mineralisation, supported by a history of successful exploration and copper-gold intercepts along shear zones and mafic contacts.

What were the key findings from the March 2025 RC drilling campaign?

The March 2025 RC drilling program included four holes totalling 564 metres, with three drilled at the YT12 prospect and one at YT19. This drilling followed up on results from slim-line RC drilling in January 2025 and aircore drilling completed in late 2024. The aim was to test for deeper extensions of known copper-gold zones in fresh bedrock and validate targets defined by magnetic and geophysical data.

At YT12, significant results included 10 metres at 2,555 parts per million (ppm) copper and 0.23 grams per tonne (g/t) gold from 137 metres in hole YRC25-01, including higher-grade intervals such as 1 metre at 1,219ppm Cu and 0.72g/t Au. YRC25-02 returned 6 metres at 5,563ppm Cu and 0.41g/t Au from 108 metres, which included a standout 2-metre zone grading 1.62% Cu and 0.57g/t Au. YRC25-03 intersected 36 metres at 1,595ppm Cu and 0.06g/t Au from 36 metres, with internal higher-grade intercepts up to 3,385ppm Cu.

At YT19, hole YRC25-04 intersected 48 metres at 1,568ppm Cu and 0.05g/t Au from 68 metres. This confirmed the mineralisation trend previously encountered in aircore hole YAC24-21, which intersected 31 metres at 2,060ppm Cu. The March 2025 results have extended known mineralisation zones and demonstrated continuity, providing strong justification for further resource drilling.

What geological structures control copper-gold mineralisation at Yuinmery?

The Yuinmery project covers highly prospective terrain within the Youanmi Greenstone Belt, which is known for structurally controlled gold and VMS copper-gold systems. Host rocks include altered chloritic felsic volcanics, intermediate volcanic breccias, and sulphidic cherty sediments. These are interbedded with mafic units, with mineralisation typically forming near lithological contacts and shears.

The mineralised zones at YT12 and YT19 are interpreted to be associated with lower-order shear zones branching from the Youanmi and Yuinmery Shear Zones. Copper and gold are hosted in sub-vertical quartz-sulphide lodes and steeply plunging high-grade shoots. The consistent presence of mineralisation near the contact between magnetic and non-magnetic mafic rocks has guided the company’s drilling strategy, leveraging magnetic survey data to prioritise targets.

How does this campaign compare to historical exploration?

Empire Resources has been actively exploring Yuinmery since 2006, building on a legacy of regional exploration dating back to the 1970s. Previous operators, including Western Mining Corporation and CRAE, conducted early-stage soil geochemistry, geophysics, and drilling across the greenstone belt. In recent years, Empire’s exploration efforts have focused on systematic aircore and RC drilling, along with electromagnetic surveys and detailed mapping.

The latest drilling results represent a continuation of Empire’s methodical approach. They expand upon historical intercepts at YT12 and YT19 and confirm mineralisation at depth, validating the exploration model and setting the stage for resource definition drilling.

What are the company’s next steps at the Yuinmery Project?

Empire Resources has announced plans to carry out deeper RC drilling at the YT01 target, conduct downhole electromagnetic (EM) surveys at YT12, and continue strike extension drilling across prospective zones including Magnetic Hill. Further structural mapping and geophysical work are also planned to delineate dolerite contacts and refine exploration targeting.

The company intends to survey existing collars with differential GPS (DGPS) and assess new drilling strategies for more structurally complex areas such as the western flank of YT01. Empire is also considering incorporating downhole geophysics to better define sulphide zones and vector future drill programs.

What does Empire Resources’ stock performance reveal about investor sentiment?

Empire Resources Limited (ASX: ERL) saw its share price rise to AUD 0.005 following the drilling update, marking a 25% gain and reaching its 52-week high. This surge reflects strong short-term investor sentiment, driven by confidence in the copper-gold potential of the Yuinmery project. The stock’s upward movement occurred amid rising interest in critical mineral exploration plays on the ASX, particularly those targeting copper amid global electrification trends.

Empire’s market capitalisation now stands at approximately AUD 7 million, with a 12-month average daily volume of nearly 580,000 shares. Financially, the company reported a net loss of AUD 0.99 million for FY2024, down from AUD 1.42 million the previous year. While earnings remain negative, the narrowing loss and increased exploration success are viewed positively by the market.

How are institutional flows and insider ownership shaping ERL’s outlook?

Institutional investor participation remains limited in Empire Resources, with the shareholder base predominantly retail-driven. Insider ownership is notably high, with Non-Executive Chairman Michael Ruane holding over 36% of the company’s shares. Another major stakeholder, Bill Brooks Pty Ltd, controls an additional 8.8%.

The absence of foreign institutional investor (FII) or domestic institutional investor (DII) flows suggests the stock’s performance is currently sentiment-driven, tied to exploration outcomes rather than large-scale fund movements. However, as the company advances toward more advanced project stages and potential JORC upgrades, institutional interest could increase.

Given its current exploration stage, analysts may adopt a ‘Hold’ recommendation for Empire Resources stock. While the company remains speculative, the combination of strong geological fundamentals, improving financial discipline, and growing resource potential positions it well within the junior explorer category.