COBRE : SIGNIFICANT NEW COPPER INTERSECTION AT THE NGAMI COPPER PROJECT
Last Wednesday Cobre (ASX:CBE) announced a significant new copper intersection at the Ngami Copper Project in Botswana. The project is located in the Kalahari Copper belt (KCB), which is considered to be one of the most prospective regions in the world for new copper discoveries according to the US Geological Survey. This new discovery is located nearby Sandfire Resources (ASX: SFR) Motheo Project, where they are currently building a A$371m 3.2 million tonnes per annum processing plant with the potential to quickly upgrade to 5.2 million tonnes per annum.
- The KCB is one of the world’s most prospective areas for yet-to-be-discovered sediment-hosted copper deposits by the US Geological Survey
- KML’s landholdings are along strike, and adjacent to, two major development projects: Cupric Canyon’s high-grade Zone 5 Cu-Ag deposit and Sandfire’sT3 Motheo Cu-Ag deposit
- Recent discoveries have targeted high-grade structurally controlled mineralisation hosted in anticlines above the contact
- Botswana is a stable jurisdiction investing heavily in power transmission to the KCB region
- Recently published drill intersections at Sandfire’s A4 deposit demonstrates the significant Cu-Ag grades achievable for this style of mineralisation at depths suited to open pit mining
- Sediment-hosted copper deposits account for 15% of world mine copper production
- Deposits are often giants – more than 1/3 of the known sediment-hosted copper deposits contain over 500,000t of contained copper with grades over 1%
After reviewing the reasons why we invested in the first place, we strongly believe the factors outlined above are still pertinent and enhanced the likelihood of success – which we are now seeing unfold.On Wednesday the 27th CBE announced a “Significant New Copper Discovery at the Ngami Copper Project.”
The entire announcement can be found by following the link below.
The chart shows grades per metre which have been estimated using a portable XRF machine. Based on the information presented above, the high-grade interval could contain 10m grading @ 2% copper. This is a very encouraging start to the current exploration program and it was no surprise that the shares reacted accordingly with an ~80% gain for the day. Yesterday morning, Cobre called a trading halt pending further drilling results and we assume there is more good news to come. Further encouraging results will further reinforce our belief in the potential of the project to deliver a significant copper resource and this should increase the markets level of interest in the company.
Cobre is in the process of moving to a 100% ownership of Kalahari Metals Ltd (KML) in two stages, first by purchasing 24.5% of KML for GBP £750,000 from Metals Tiger PLC, with a 12-month option to buy the remaining 24.5% for either GBP £750,000 or equivalent in Cobre shares. This will give the company a 100 percent interest in 8,595 km² of tenements in the Kalahari Copper Belt, which makes the company the second largest holder in the region behind Sandfire.
We await the next announcement with anticipation.
