Resurgent copper prices have ENRG Elements (ASX: EEL) waiting keenly for assays after its joint venture (JV) partner Arc Minerals drilled 3023m in its latest campaign to unearth the red metal at their Virgo project in the southern African nation of Botswana.
It comes as copper prices have jumped back up the charts on the back of the United States Federal Reserve’s decision last week to cut interest rates by 50 basis points.
Arc has confirmed that all 309 samples from core drilling in the program have been submitted to a Johannesburg laboratory for analysis and the results are anticipated to be returned by the end of next month. ENRG holds a 25 per cent stake and Arc has a 75 per cent share in Alvis-Crest – the entity holding the two prospecting licences that comprise the Virgo project.
The phase-one campaign at one of the licenced tenements has been completed, with 1978m of RC drilling and 1045m of core diamond-drilling. Arc says the drill rig has now been moved to its other licenced ground where scout drilling in 2022 intersected a solid hit of 3m at 1.45 per cent copper, with 9.33 grams per tonne silver as a side-bonus.
A phase-one program on the site will consist of six holes, with the possibility of extending the campaign depending on visual observations of the drill core.
I am very pleased with progress made at our Botswana licence and look forward to providing shareholders with a more comprehensive update once we receive the assay results. In line with our original plan we have now relocated drilling to our second license.
Arc Minerals Executive Chairman Nick von Schirnding
Recently, Arc completed an induced-polarisation (IP) survey that confirmed potential targets along two distinct trends of high-chargeability, with an unknown anomaly discovered at depth. The sizeable anomaly of high-chargeability and low-resistivity was almost screaming to be drilled and Arc plans to test the prospect as part of its phase-one drilling campaigns across its licenced grounds.
Virgo’s two licences total 210 square kilometres and lie both within and adjacent to the renowned central structural corridor of the Kalahari Copper Belt (KCB). The licences are surrounded on three sides by the prospecting licences of Khoemacau Copper Mining, acquired by Hong Kong Stock Exchange-listed mining firm MMG for US$1.875 billion (AU$2.73 billion) last year and which is now subject to a JV with investment company CNIC Corporation.
The renowned KCB stretches 1000km from north-east Botswana into Namibia and has become a focal point for the discovery of sediment-hosted copper deposits. The total resources to date exceed 8 million tonnes of contained copper.
ENRG also has a 10 per cent stake in a JV with Kavango Resources for its Karakubis project that also sits within the renowned Kalahari Copper Belt (KCB). Copper is expected to play a significant role in the future global transition to cleaner energy production.
The company recently inked a deal worth $250,000 in scrip and cash to buy 100 per cent of the Lamont Lake uranium exploration project in the northern part of the Canadian province of Saskatchewan, which is renowned for its uranium riches. It also has an interest in lithium in the North American country and holds exploration ground in Niger that is prospective for both commodities.
Keeping an interest in the copper space in Africa while fully focusing on uranium in Canada, may prove to be a win-win outcome for ENRG.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au