Huge copper and gold finds at Bluebird: Tennant Minerals stock set for a rebound?

Tennant Minerals Limited (ASX: TMS) has announced a series of significant high-grade copper and gold intersections from its Bluebird discovery within the Barkly Project in the Northern Territory. Despite these strong exploration results, the company’s share price has shown little reaction, remaining stagnant at AUD 0.016. Tennant Minerals is down 20% over the past month and 51.52% for the year, reflecting broader market uncertainties and investor caution.

The recent announcement follows Tennant’s latest drilling campaign, which has expanded the potential of Bluebird further east and west within the ironstone corridor. While the market has yet to react, the company’s discoveries could significantly impact future resource development, making the disconnect between share price and exploration results a focal point for analysts.

Major Copper and Gold Discoveries at Bluebird

Tennant Minerals’ recent drilling campaign revealed thick, high-grade copper and gold intersections, raising the resource potential at the Bluebird discovery. The company confirmed new copper-gold zones both to the west and at depth, signalling the possibility of continued expansion along the Bluebird-Perseverance trend.

Key results from the campaign include a 5-metre section grading 8.3 grams per tonne (g/t) of gold and 2% copper, alongside significant silver intersections in drill hole BBRC0040. This section forms part of a larger 14-metre zone with copper equivalent grades of 4%, signalling robust copper and gold potential. The intersection also included notable concentrations of silver (9.8 g/t) and bismuth (0.27%).

Further high-grade intersections include a 28-metre copper-gold zone grading 2.1% copper equivalent in BBRC0034, with a peak of 7.9% copper over 2 metres. These results demonstrate that Bluebird contains multiple high-grade lenses, with up to four distinct copper-gold zones identified so far. According to Tennant Minerals, the lenses extend over a 300-metre length and are open to the east, west, and at depth, offering strong potential for further discoveries.

In a statement, Tennant Minerals CEO Vincent Algar emphasised the importance of these intersections, noting that they confirm the high gold and copper grades seen in previous drilling programs while extending the resource potential. He described Bluebird as hosting multiple large, high-grade lenses, open in all directions, which could lead to further resource expansion across the 5-kilometre gravity corridor within the Barkly Project.

Stock Price Disconnect Despite Exploration Success

Despite the significant progress made at Bluebird, Tennant Minerals’ share price has struggled to reflect the potential of these discoveries. The stock remains unchanged at AUD 0.016, with the company’s market capitalisation at just over AUD 15 million. Tennant’s shares are down 51.52% year-to-date, reflecting a wider struggle among small-cap mining stocks on the ASX. The company ranks 1,591 out of 2,358 listed companies, underlining its position in the lower end of the market.

Tennant’s poor stock performance comes despite the company’s strong operational progress. The Bluebird discovery, located within the Tennant Creek Mineral Field, is emerging as one of the most promising new copper-gold deposits in the region. Tennant Creek itself has a rich history of copper and gold production, having produced over 5.5 million ounces of gold and 700,000 tonnes of copper since the 1930s.

Experts point to several factors that could be impacting Tennant’s share price, including investor caution in the broader market and a lack of immediate financial returns. While the high-grade intersections at Bluebird are encouraging, it may take time for the market to recognise the full value of the discoveries, particularly as the company continues to define the resource.

Future Outlook and Potential for Bluebird Expansion

Tennant Minerals is now focused on expanding the Bluebird discovery, with plans for further step-out drilling along the 2.5-kilometre Bluebird-Perseverance trend. The current drilling campaign has identified a new well-mineralised zone of copper-gold to the east, which thickens at depth, further expanding Bluebird’s potential. In addition, the company has identified several large, high-grade copper-gold lenses, each up to 300 metres long and 200 metres deep, which remain open for further exploration.

The upcoming drilling phases aim to extend mineralisation both to the east and west, as well as at depth, as the company continues to explore the full potential of the ironstone corridor. With further results pending from several step-out drill holes, Tennant hopes to define new priority targets along the 5-kilometre gravity corridor at Bluebird.

While Tennant Minerals’ share price remains subdued, industry experts believe that sustained exploration success at Bluebird could eventually lead to a market revaluation. With strong copper and gold grades already confirmed and the potential for further discoveries, Tennant is positioning itself as a key player in the Tennant Creek Mineral Field.

Expert View: Will Tennant’s Bluebird Discovery Translate to Market Success?

Despite the underperformance of its share price, Tennant Minerals’ ongoing exploration success at Bluebird has generated optimism among industry experts. Analysts believe that the high-grade copper and gold intersections identified so far could eventually translate into a resource estimate that significantly enhances the company’s valuation. However, the market remains cautious, with some investors likely waiting for more tangible financial results before committing to the stock.

In conclusion, while Tennant Minerals is experiencing a disconnect between its exploration success and stock market performance, the Bluebird discovery remains a promising asset with significant potential for future growth. As the company continues to explore and define the resource, the market may eventually recognise the full value of this emerging copper-gold deposit.