Thanks, Chrissy. Good afternoon, everyone. Red Hill is a dividend-paying, diversified royalty and exploration company operating across Australia. We're well-funded and derive ongoing cash flows from our royalty on the Onslow Iron Ore Project. This income has allowed us to pay dividends, make royalty acquisitions, and continue to invest in exploration. The map shows the location of our projects and royalty interests, and I'll take you through these shortly. Our team have a track record of creating shareholder value and making significant discoveries. We're entering 2026 with a strong cash balance of AUD 61 million and no debt as of the end of December. We're actively looking for new projects and royalty opportunities to leverage our strong capabilities and financial position. Our market cap is AUD 320 million.
We have a strong and supportive shareholder base, with the Board and Management holding 43% of the company's shares. At Red Hill, we have a proven business model. It's repeatable. We create opportunities by forming strong relationships and pursuing mutually beneficial agreements. We conduct systematic exploration. The company has made substantial and consistent commitment to in-ground exploration, and our team has proven experience in making discoveries. We have a track record of generating significant value from exploration and discovery, including monetizing exploration assets. We focus on shareholders and people, and aim to continue to deliver strong returns for shareholders, work with our stakeholders, and look after our employees. To date, Red Hill has returned AUD 236 million in dividend payments to our shareholders. So I'm gonna take you through our royalty portfolio first.
So this slide shows our Onslow Iron Ore royalty, which covers a total mineral resource of 1.1 billion tons. You can see the red mine symbol in the middle of the map there, and this is the location of the Ken's Bore deposit and the processing facilities, like the stacker shown on the previous slide. The dashed line across to the coast is the Haul Road, and Red Hill retain ownership of all the other mineral rights other than iron on the red-shaded ground there, and I'll cover our exploration progress on this later, but you can see the Barkley gold target there for reference. Since the Onslow Iron Project commenced production, we've received over AUD 27 million in royalty payments.
For the current financial year, at a production rate of 35 million tons per annum, at the current iron ore prices and exchange rates, we're expecting AUD 28 million in royalty payments for the current financial year, with almost AUD 15 million received over the past two quarters, and half of this is being paid back to shareholders as dividends. While on the topic of iron ore, I'll cover our Pannawonica Iron Project up there in the north, has a resource of 63 million tons and a mining reserve of 4.7 million tons at a grade of 56% iron. Recently, we finalized several environmental studies to a standard suitable for supporting mining proposals and development approvals.
So as part of our strategy to expand and diversify our royalty portfolio, we purchased two new royalties last year, and the acquisitions were opportunistic, and we really like the ground. Starting with the Sandstone Gold Royalty, our 2% gross revenue royalty covers a portion of Brightstar's broader Sandstone hub. The ground our royalty covers currently contains just over 1 million ounces of gold, so this is the ground that Brightstar acquired from Alto. Brightstar have been very active on the ground and are currently drilling 100,000 m across the broader hub, and much of the drilling's occurring on our royalty tenements. An updated mineral resource is expected in the June quarter, and then the PFS and mining reserve, I think, in the September quarter. Brightstar will be seeking to make an investment decision after they've completed the DFS next year.
We also acquired a 1.5% net smelter royalty on Legacy Minerals' earlier stage, but large-scale Thomson Copper-Gold Project in the far west of New South Wales. More recently, Rio Tinto Exploration entered into an option agreement with them to commit significant exploration funding up to AUD 25 million, reinforcing our view on the large-scale potential of this early-stage project. We have three royalties. We have the Onslow Iron Royalty, which is in production. We have the Brightstar royalty, which is near production, and then the longer-term Thomson Royalty as well. I'll take you through our exploration projects. This is out on the Mundi Mundi Plains from some of the recent drilling we've done out at Broken Hill. As part of our diversification strategy, we also entered into the Curnamona Earn-In Joint Venture with Peel Mining.
Red Hill Minerals has the right to earn 75%, 75% by spending AUD 6.5 million within five years. The earn-in area comprises of 1,700 sq km . It's made up of the Broken Hill Project, which has tier one potential for lead, zinc, silver deposits undercover, as well as the Anabama Project in South Australia, which is prospective for shear-hosted copper-gold. I'll take you through these projects in the next couple of slides. At Broken Hill in New South Wales, since commencing the earn-in, our team's undertaken a comprehensive review of historic exploration data and acquired several new geophysical datasets. The integrated data has been instrumental to our target generation, which has resulted in four priority targets being drilled late last year.
For our maiden drill program, we completed just over 3,700 m of diamond drilling, focusing on Broken Hill-type mineralization at Dementus, Woolley, and Immortan, and copper-gold mineralization at K1. So you can see there the four red dots on the map. And drilling aimed to test areas along strike of previous mineralized intersections from past explorers at the Polygonum target, which is the yellow dot there. Sorry, best results returned were from the Dementus target, where we drilled a 958 m hole, and we intercepted 91 m at 0.1% lead and 0.3 g per ton silver from 328 m. So although lower grade, the key Broken Hill-type textural features, including stratabound lead, was encountered.
So you can see in the core photo there, the galena within the bedding, indicating proximity to a primary source. So the broad stratabound lead intercept confirms the significant exploration potential of the Dementus target, and follow-up drill testing is a high priority for us. To do this, we have high-resolution gravity and AMT surveys, or ground magnetotelluric surveys, starting next week. This will help us vector in on structures that may be associated with the source fluids and higher-grade mineralization, and we have drilling planned in the second half of the year. At Anabama in South Australia, we're targeting shear-hosted copper-gold mineralization. There's historic drilling and old workings at the Anabama target, you can see there on the map, and most of that old drilling focused on near-surface mineralization. Much of that drilling's less than 200 m deep.
It's along the shear zone, which is the white dashed line there, and they completed that historic drilling over about a 2 km strike length. So prior to our drilling, we completed a 20-line km IP survey, which is the dashed blue lines there on the map, and the results showed excellent correlation between the IP anomalies and known mineralization, and we've extended the prospective corridor along the shear zone over 6 km of strike length, so that red shading there. So our maiden drill program aimed to extend the copper-gold mineralization at depth and along strike, and we did two diamond holes for a total of 946 m You can see the green dots there on the map. So assay results from the first diamond drill hole have confirmed hydrothermal copper, gold, and silver mineralization associated with the shear zone.
As a highlight, you can see the diamond core photo there, which contained the highest gold grades from the prospect so far, which is 6.5 g gold, 2.3% copper, and 10.3 g silver over a 44 cm interval in hydrothermal breccia. So that bit of core there is from about 313 m, which is part of that assay, the broader 20 m at 0.6 shown on the screen. We've got this section of core available at the booth if you want to come and have a look as well. Early results are encouraging and support the interpretation of continuous mineralization at depth, so this is at least 100 m deeper than the surrounding holes.
So further drill testing is warranted along strike to get the scale, and then, depending on those results, we'll come back and step out and drill across the old drilling as well. We're expecting the results from the second hole shortly, and that'll help guide our follow-up work later this year. So the West Pilbara, while it's best known for its iron ore resources, it's also highly prospective for its gold and base metal mineralization. Much of the gold mineralization is related to the deep-seated mantle-tapping regional faults that continue between the Hamersley and Ashburton Basins, from basically where the Mount Olympus gold mine is, up through Paulsens, and then up into our tenements. You can see there on the map. In the location plan, the dashed colored lines, they're the regional faults.
So most of our drilling's been focused at the Barkley gold target, adjacent to one of these regional faults, and we've continued to intercept gold mineralization consistently over approximately 1 km of strike. As you can see, further drilling's required at Barkley. It's still very early stage. Mineralization remains open in most directions. So down there in the south, you can see 9 m at 2.4 g. The hole to the north was stopped at 70 m in a dike, but the holes to the north of that, 6 m at 1.5 g, 4 m at 2.6 g, 5 m at 1.7 g, and there's no drilling out to the east there. Also, up in the north, it's open, and there's some areas in the west that need some more drilling. So we've stepped out quite a reasonable distance.
So when we come back, we'll basically be putting some holes into those red shaded areas. So 11 holes is about 3,000 m, but we'll continue to extend the gold mineralization. So we have heritage surveys completed and approvals in place to get this started. We have a rig booked for April. We've also been progressing several other greenfields targets up in the Pilbara, and we'll keep working them up to generate drill targets, conduct heritage, and maybe drill them later this year. So we have an exciting year ahead of us. We're anticipating royalty income of approximately AUD 28.7 million, and we've already received almost AUD 15 million over the past two quarters.
We have our dividend policy in place, targeting 50% of funds received from the Onslow Iron ore royalty to be paid back to shareholders as dividends. We'll continue with our substantial and systematic exploration program, operating on a campaign basis to provide us with the most flexibility. With our JV with Peel at Anabama, we'll continue to step out and drill along strike of the shear zone away from the historic drilling to test the copper and gold mineralization at depth as well. At Broken Hill, we have gravity surveys and AMT surveys commencing next week. This will help us refine our drill area at Dementus, and we'll drill test this later in the year, along with some new targets that we've been working up. In the West Pilbara, we'll continue to step out at Barkley.
We'll be drilling there from April, and we'll work up new targets, conduct heritage surveys, and start drill testing. In terms of business development, we'll continue to assess new opportunities, including purchasing and/or creating royalties on exploration projects. In summary, we've a proven business model and a diversified asset portfolio with strong exploration potential. We're well-funded and dividend-paying with long-life royalties. We have a very busy year ahead of us with our systematic exploration program over large prospective areas, and our team's motivated and looking forward to the year and continuing to build our exploration and royalty portfolio and delivering another strong year. Thank you!