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Litchfield Minerals (ASX:LMS) is about to start RC drilling in the desert of the Northern Territory, following chargeability results management has labelled “off the charts.”
The team hopes to soon reward investors with a copper, silver, and zinc discovery – but it’s been a long road to get to this point…
Back to the early 2000s
When father and son team Michael and Matthew Pustahya headed out into the vast untamed lands of the Northern Territory desert, they knew fortune would favour the bold.
Bold they were – foreseeing the demand that would come for high-purity quartz, in line with the solar panel and renewable energy market boom.
Michael was a keen prospector, and Matt had not long left school when they set out from New South Wales. Their mission: To discover the next great mineral deposit and redefine how junior explorers could operate.
For more than 15 years, armed with picks, spades, drills, ‘and an unrelenting drive for success,’ Matt and Michael Pustahya traversed the most remote and rugged corners of the Northern Territory and Queensland.
Matt recalls it was hard work, with rewards along the way.
“When you’re in the heart of Australia, you’re standing on top of a granite outcrop which might be hundreds of metres high and sometimes kilometres long, and you’re looking out over the valleys there’s an indescribable sense of peace. It’s beautiful, outback Australia beautiful,” he told HotCopper.
Trading to make ends meet & getting to know characters who matter
Sometimes the pair would camp out, but often they’d stay in the pubs of outback towns, getting to know the characters and industry leaders over a beer or two.
As Matt and Michael prospected, they were embedding themselves in the industry, forging relationships with high-profile executives with experience in how to turn a discovery into a mine.
They were building an enviable network of bush-hardened drillers, earthmovers, and geologists.
“We didn’t have much when we started,” Matt said.
“We battled and made our own path – funding our mineral prospecting by share trading.
“Doing that, I became more and more frustrated with the state of junior resource companies, seeing too many explorers chasing pay cheques instead of discoveries, comfortable with diluting shareholder value, all the while delivering little in return.
“This made me determined that I would do things differently.
“I knew that when I built a company, it would be in the spirit of the great mineral explorers of the 1980s – I would run a lean, hungry and driven team that put discovery ahead of everything else.”
Adventures provide results
In the early 2000s, the Pustahyas acquired oil shale and vanadium tenements at Julia Creek, facilitating a successful exit that provided the capital to advance their ventures. These funds laid the foundation for the unlisted company Nova Strategic Minerals, which later transitioned into the privately held Mt Isa Minerals, of which Matt and Michael continue to be key shareholders.
But the work also set the path for the foundations for what is now Litchfield Minerals (ASX:LMS).
“Dad picked up Mount Doreen in 2017 – 350km northwest of Alice Springs – because historical data showed us it was worth pegging, and, because of its geological location,” Matt said.
“Copper was the focus, along with lead, zinc and gold.
“It sits on the contact of the Ngalia basin, and numerous granites and volcanics which is a good sign for these polymetallic mineral deposits.”
Other companies had already shown interest in the region, including Tanami Gold (ASX:TAM) and Normandy Mining (which was acquired by Newmont (ASX:NEM) in 2002).
Time to go public & drive value
In March 2024, Litchfield Minerals made its ASX debut.
While Michael Pustahya has now retired, he continues to watch the progress of investments closely, with son Matt at the helm.
His Mt Doreen project is now firmly in Litchfield Mineral’s portfolio.
So is the Lucy Creek Project – an early-stage manganese, rare earths, and base metals project further east.
But the focus now is Oonagalabi, just 120km east of Alice Springs, which was picked up late last year. That’s where chargeability results have been “extraordinary”.
Matthew Pustahya is confident Litchfield Minerals could soon unveil its true potential for a commercial discovery of silver, copper, gold, and zinc.
Matt knew of the Oonagalabi deposit for years, recognising it aligned with his vision and philosophy. However, it had been lost to the Northern Territory’s long history of tenement sitting.
When the opportunity arose to acquire it, he acted swiftly to secure it under a $200,000 deal.
The most recent Induced Polarisation (IP) survey at Oonagalabi revealed two large, high-chargeability sulphide-bearing targets extending over 1km in strike length and more than 500m in depth, with a potential high-grade core. The results showed chargeability levels exceeding 40mV/V, with some zones peaking at 60mV/V – “suggesting the presence of a substantial mineralised system”.
Now, Matthew and the team at Litchfield are on-site about to embark on the next step – the RC drilling phase. There’ll be six holes sunk at Oonagalabi this month.
IP results have been promising, but the real proof will be in the drilling
The best hole in historical drilling at Oonagalabi intersected 36 metres grading 1% copper and 1.7% zinc. Gold was also assayed in this hole, averaging 1g/t across three mineralised 1.5-metre composites.
Between 1970 and 1981, 21 holes were drilled across 1.5km of mineralised outcrop, all of which encountered varying degrees of mineralisation.
But before now, Oonagalabi hadn’t had modern exploration techniques applied.
“While historical Oonagalabi had proven too complex for previous explorers, by applying modern geophysics and a disciplined approach, Litchfield could unlock value without excessive expenditure,” Matt said.
Good geology needs good people
Good geology is one thing, good people is another.
Matthew Pustahya recognises success in the mining industry requires the right people – and so he set out to find the best in the business.
He appointed Peter Eaglen as Non-Executive Chair, an industry veteran with extensive experience at major mining companies, culminating in his role as General Manager of Operational Risk at Rio Tinto. Additionally, globally renowned resources geologist Mark Noppe joined the Board. Matt describes Noppe as “one of the most respected geologists in the world.”
“With these heavyweights on board, I knew the foundations of Litchfield Minerals were set,” Matthew Pustahya said.
“But there was still one missing piece – a full-time staff geologist, someone who could match my pace and passion for discovery. They had to be relentless.
“The right person is Russell Dow, a man whose pedigree in the industry is undeniable.
“Russell is the son of a former Newmont Chair, but he’s also built a name for himself, playing a pivotal role in the NYSE-listed Fortuna Mining Corp’s Lindero Gold Discovery in Argentina.
“He isn’t just another geologist. He’s an explorer in the truest sense, willing to push the limits to find what others miss.
“I knew he was the right fit for Litchfield Minerals.”
Drill-for-equity to preserve cash flow
To facilitate the upcoming drilling campaign, Litchfield has secured a drill-for-equity partnership with Bullion Drilling.
“That’ll see up to 2,000m of RC drilling while preserving cash flow for further exploration,” he said.
“This drill is not just about proving the potential of the project, it’s about proving the concept of Litchfield Minerals itself, our values, our mission and our mandate.”
Fail fast or succeed quickly – betting on the latter
“In an industry where many play it safe, Litchfield Minerals is doing what the greats of the past did: We’re betting on and trusting experienced instincts as we chase the kind of discoveries that change the game,” Matthew Pustahya said.
“Litchfield Minerals operates with a simple but effective strategy – fail fast or succeed quickly.
“In mineral exploration, time is money, and the company refuses to sink years into projects that show little promise.
“Instead, Litchfield has built a dynamic exploration pipeline, ensuring a steady flow of projects where each target is rapidly assessed and either advanced or discarded. This agile approach maximises efficiency, conserving capital while focusing resources on the most prospective opportunities.
“Around camp this week there is a mix of excitement and anxiety, as we know the next steps will be defining for the company.
“The story of Litchfield Minerals is unfolding and we’re confident this next chapter will be one to watch.”
Strategy to drive success
Pustahya is building a robust pipeline of exploration projects as Litchfield prioritises a mix of brownfield and greenfield targets, leveraging existing geological data to fast-track exploration.
“This method of targeting de-risked assets allows the company to move faster and smarter than its competitors,” he said.
“Litchfield’s approach is not just about drilling – it’s about monetisation.
“The company understands that true success comes from turning discoveries into shareholder value. To this end, it’s mapped out multiple monetisation pathways, from asset sales and farm-ins to spin-outs and potential production partnerships.
“By positioning itself as a nimble, transaction-driven explorer, Litchfield ensures that every dollar spent on exploration has a clear path to delivering returns.”
In a capital-constrained market, Litchfield Minerals’ leadership is determined to minimise its reliance on external funding.
Partnerships & agreements to reduce dilution
Whether through partnerships with major mining houses, or strategic agreements with cash-rich juniors, Litchfield is actively seeking ways to fund its work without excessive shareholder dilution.
“We don’t want to rely on brokers or the market long term, we will rely on ourselves for success, and, to do that, we need a revenue-generating asset,” he said.
“We’re determined to ensure we have a near-term revenue-generating asset that can self-fund exploration without constant dilution.
“That will be key.
“I enjoy the commercial aspect of what I do, the dealmaking.
“But I’m lucky because I also enjoy being out in the bush, amongst the hills and where perhaps just a few people have been before.
“Having said that, I don’t lose sight – for even a moment – that we need to deliver, and I will do everything I possibly can to make sure that we do.”
Litchfield Minerals was trading around 20.5c on March 18, 2025.
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