Copper 360’s share price increased sharply yesterday after it announced that a drone survey had confirmed a large on surface high-grade copper deposit, which could indicate a substantial new copper mine, near the historically mined Tweefontein Copper Mine.
CEO Jan Nelson said in a statement yesterday, “This discovery is significant as we have only scratched the surface and have yet to drill further to depth and test the other three anomalies, which are much larger than the first anomaly we drilled. Should these anomalies yield the same result then we could easily have identified a new mine that could be four times the size of the Rietberg Mine and three times the grade.”
The news sent the share price surging 6.3% to R3.25 on the JSE by yesterday afternoon.
Earlier this week the company announced a R100million capital raise through the issue of shares, for its short-term working capital requirements.
The company said a high-resolution drone survey delineated at least a 1.5km magnetic anomaly on the surface, with four distinct copper anomalies.
Surface sampling confirmed copper grades of between 2.12% and 17.47% on surface at the first anomaly.
Mineralised borehole intersection grades varied from 5m @ 2.71% Cu in situ to 14m @ 3.74% Cu in situ at anomaly 1.
The strike-extent of the anomaly was projected to be at least 500m from current geological data.
“The copper mineralisation represents what could be a new copper mine adjacent to the historically mined Tweefontein Mine,” the company said.
The Tweefontein Mine reportedly produced 138 683 tons of rock at a recovered grade of 25.4% between 1937 and 1950.
Drilling would target anomalies 2, 3 and 4 next.
The Tweefontein Mine that was historically mined was the highest grade mine in the entire copper district with an average recovered grade of over 25%.
“Our drilling down to 50m confirmed a zone of between 5m to 14m with grades of between 2.71% Cu and 3.74% Cu in situ. The mineralisation is open to depth,” said Nelson.
The available historical exploration and mining data of Tweefontein Mine had been digitally captured and utilised for delineation of drill targets.
To date, 10 short core-size holes where completed on three drill sections.
The high-resolution drone magnetics survey was carried out at 50m line spacing and 30m flight height.
“The magnetic data clearly delineated at least 1.5km strike with four strong anomalies correlating well with known and historically mapped copper mineralised mafic rock types. Cross-cutting structures such as faults were also located. Drilling is currently taking place on anomaly 1.”
In December, Copper 360 entered into various loan agreements to fund the Nama Copper acquisition and Expanded Production Growth plan for the Rietberg Mine.
BUSINESS REPORT