Anax Metals DFS Highlights Robust Copper-Zinc Economics at Whim Creek
- Noel Ong
- 1 hour ago
- 7 min read
Anax Metals Limited (ASX: ANX) outlined its updated definitive feasibility study (DFS), highlighting strong economic metrics for its Whim Creek Copper-Zinc Project in Western Australia.
I came across the Anax Metals story a couple of years ago, and it has finally come to a very interesting stage. This latest ASX release is probably a welcome update for existing shareholders. There is still some way to go to raise the funds but the copper price is buoyant and hopefully, for existing shareholders, this could be the light at the end of the tunnel.
The February 2026 ASX announcement outlines a development scenario with strong financial metrics, supported by updated commodity prices and revised capital assumptions.
About Whim Creek Copper-Zinc Project
The Whim Creek Copper-Zinc Project in the Pilbara region of Western Australia. The project hosts a polymetallic volcanogenic massive sulphide (VHMS) system containing copper, zinc, lead, silver and gold.
The project is located approximately 120 km southwest of Port Hedland, close to established logistics infrastructure including ports, highways and power supply.
Anax currently holds an 80% interest in the project, with the remaining 20% held by Develop Global Limited.
Anax metals and their Copper Story is centred on redeveloping the historic Whim Creek mining district using modern processing methods, including ore sorting and polymetallic flotation circuits, to produce copper, zinc and lead concentrates with silver and gold credits.
Anax Metals Updated Whim Creek DFS
The company's updated DFS indicated:
Pre-tax NPV7: A$501 million
Internal Rate of Return: 98%
Forecast free cash flow: A$723 million
These values are based on forecast commodity prices. Under spot metal prices, the project’s NPV increases to A$649 million and free cash flow to A$928 million.
The study assumes development capital of approximately A$91 million, including A$77 million pre-production capital and A$14 million working capital. Payback is estimated at approximately 14 months from commencement of mining.
Production is expected from a 400,000 tonne per annum polymetallic concentrator, generating copper, zinc and lead concentrates with precious metal by-products.
Figure 1: Whim Creek Project Location Map (source: Anax Metals Limited)
Key Highlights of the 2026 DFS Update
Key metrics from Anax Metals Whim Creek DFS included:
Project Financial Metrics
NPV7: A$501 million (pre-tax)
IRR: 98%
Free cash flow: A$723 million
Development capital: A$91 million
Payback period: 14 months
Under spot commodity prices:
NPV7: A$649 million
IRR: 118%
Free cash flow: A$928 million Whim-Creek-DFS-Update-Confirms-…
Ore Reserves and Mine Life
The project is based on 4.61 Mt of proven and probable ore reserves, grading:
1.36% Copper
2.31% Zinc
0.67% Lead
30 g/t Silver
0.27 g/t Gold
The Life-of-Mine production schedule totals 4.91 Mt, including a small proportion of inferred material.
Contained metals in the production target include:
66 kt Copper
120 kt Zinc
35 kt Lead
4.7 Moz Silver
43 koz Gold
Figure 2: VHMS Deposit Geological Model (source; Anax Metals Limited)
Project Overview - Mining Strategy and Production Profile
Mining will commence with open pit operations at Mons Cupri, followed by the Whim Creek open pit.
Underground mining will later be introduced at:
Evelyn deposit
Salt Creek deposit
Underground mining at Evelyn is expected to begin in year three of operations and continue for approximately three years.
The overall project plan supports a ten-year mine life, with an average annual production of 13 kt copper equivalent per year during the first eight years (Figure 3).
Figure 3: Ore Reserve and Life-of-Mine Production Schedule (source: Anax Metals Limited)
Processing Strategy- Polymetallic Concentrator and Ore Sorting Circuit
Anax Metals Whim Creek processing plant will utilise a 400 ktpa polymetallic concentrator incorporating (Figure 4):
X-ray transmission (XRT) ore sorting
Inline pressure jig gravity separation
flotation circuits for copper, zinc and lead concentrates
Figure 4: Proposed Whim Creek Concentrator (source: Anax Metals Limited)
The flowsheet (Figure 5) includes:
crushing and screening
ore sorting and gravity pre-concentration
flotation recovery circuits
concentrate filtration and storage
Figure 5: Simplified Concentrator Flowsheet (source: Anax Metals Limited)
The processing strategy is designed to reject waste material early in the processing stream and improve feed grade to the concentrator.
Infrastructure and Logistics - Established Infrastructure and Pilbara Access
Anax Metals Whim Creek site benefits from existing infrastructure (Figure 6), including:
haul roads
gas pipeline and power supply
bore water supply
offices and workshops
bulk fuel storage
historic heap leach infrastructure
Figure 6: Existing Site Infrastructure (source: Anax Metals Limited)
Concentrate transport is planned using containerised transport via Port Hedland using specialised concentrate containers operated by logistics provider Qube.
Funding Update - Debt Funding Offers Received
Anax Metals reports receiving multiple non-binding debt funding offers.
Indicative term sheets include offers of up to A$57 million, which would fund approximately 75% of Anax’s development contribution.
Funding options under consideration include:
project debt
equity funding
royalties or streaming agreements
joint venture participation
Near-term Milestones to Watch
Key upcoming activities outlined in the announcement include:
updated ore reserve estimation in H1 2026
evaluation of 500 ktpa concentrator expansion
drilling program at Salt Creek in Q3 2026
update of the heap leach study in H2 2026
potential addition of a pyrite flotation circuit to recover additional silver and gold
Samso Concluding Comments
Anax Metals updated DFS outlines the technical and financial parameters for the development of the Whim Creek polymetallic project in the Pilbara region of Western Australia.
The study incorporates updated commodity price assumptions, revised capital costs and modifications to underground mine designs. These inputs produce updated financial metrics including a project NPV of A$501 million and free cash flow of A$723 million under forecast pricing assumptions.
The project design integrates open pit and underground mining operations supported by a 400 ktpa processing facility capable of producing copper, zinc and lead concentrates with precious metal by-products.
Sensitivity analysis within the study indicates that project economics are most sensitive to exchange rate movements, copper price and operating cost variations.
The development strategy incorporates the use of existing site infrastructure and established logistics pathways to export concentrate through Port Hedland.
The company is currently evaluating financing options and progressing discussions with potential debt and off-take partners to advance the project toward a final investment decision.
Market Implications
The anticipation of something happening in a very buoyant copper market is clearly seen in Figure 7. The slow rise in value for Anax Metals Limited is positive for shareholders but at this point, the hard part is to convince the g money to come and get in t game.
Figure 8: The price chart for Anax Metals Limited (source: Anax metals Limited)
The key for Anax Metals is to get its partner, Develop to chip in with the funds to get things going. However, as Develop is not really in a hurry to do things as they are themselves "doing well", getting them to get inon the game may be easier thought of than executed.
Where Anax Metals will fail, is the inability to raise the appropriate funding to make the project happen. The new shareholder for Anax may have the capacity but getting Develop to be part of the party will be the key, or they sell their stake and then the game will probably happen as there will no longer be this giant elephant in the room.
The key for any potential shareholders lurking on the fence deciding whether to enter the play is to keep your eyes wide and ears on the ground and do some serious DYOR. I do see some risk now with the uncertainty and having had a similar situation with Cyprium Metals Limited before they went into administration, I am cautious. I don't see Anax metals Limited having the same ending, as the wind of fortune does feel like its flowing with Anax.
Hence, if things go well for Anax Metals Limited, the laughing will be the shareholders. The good news is that commodity pricing is going to go higher due to the the rise of the next generation of industrialists.
As I always say, DYOR.
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