Octava Minerals (ASX: OCT) is swinging big with a fresh $1.5 million raise to chase copper, silver, and zinc in the wild west of Tasmania. The small-cap explorer just locked in an option to scoop up the Federation project, a mineral-rich patch with historic drill hits that were ignored back in the day when everyone only cared about tin.
Now, with commodity markets shifting and metals like copper and silver getting popular, Octava’s looking to pick up where the old timers left off, and also uncover something much bigger.
X Marks This Mining Spot
So, here’s what got investors paying attention. Back in the 1970s, the Renison team drilled 18 diamond holes into Sweeney’s prospect, which sits inside the Federation project. Not all holes hit the jackpot, but some were loaded with minerals. We’re talking intercepts like:
- 23 meters with 1.19% copper, 1.70% zinc, and 121g/t silver
- 24 meters with 0.25% copper, 0.52% zinc, and 42g/t silver
- Even tin was found in decent grades
It’s wild that these results were basically left to gather dust. But Octava believes these are just the surface clues to something bigger, maybe a large volcanogenic massive sulphide (VMS) system.
Where’s the $1.5M Going?
Octava raised USD $1 million (AUD $1.5M) in a two-tranche deal, offering shares at just 3 cents each. Investors also get bonus options to buy more stock later, which is a smart way to keep people interested.
The funds are going toward a full-scale groundwork work that means early drilling, scoping out the land, and testing how the metals actually behave in real conditions.
They’re also continuing work with CSIRO on another project in Western Australia tied to rare earths and lithium, but that’s a side story. The main focus now is Federation.
Tiny Stock, Huge Discovery Potential
Octava’s play is about catching a metal revival wave. Copper is in demand thanks to electric vehicles and energy grids. Silver is starting to gain traction, too. And while zinc isn’t making headlines, it still plays an important role in steel production and batteries.
Western Tasmania has a solid track record when it comes to big mineral finds. The Federation project sits in a pretty ideal spot, too. It’s close to hydropower, existing infrastructure, and processing facilities. If the project ends up being the real deal, that location could save a lot of time and money down the line.
Octava’s CEO, Bevan Wakelam, says it best: “The historic grades and the geology point to something significant, and no one’s followed it up in 40+ years.”
To conclude, it’s still too early to invest. But if you’re someone who likes getting in before the crowd, especially with small mining stocks, Octava’s latest move could be one to keep an eye on.