Cyprium Metals (ASX: CYM) building copper assets amid strong market thematic for copper demand

Highlights

• Cyprium Metals claims to be driving ahead to become a “significant profitable copper producer” targeting 100Kt+ of copper production every year.
• The company’s mission and vision are backed by the growing demand for copper in the global market for green transition.
• The company hosts attractive portfolio of three copper projects in Western Australia with a Mineral Resource of +1.6 million tonnes of contained copper.
• Cyprium’s 100% owned brownfield project, Nifty Copper Project is one of the significant historical mines with continuous operations for more than 25 years.

Australia-based copper developer and explorer Cyprium Metals Limited (ASX: CYM) has been driving ahead to become a “significant profitable copper producer” targeting 100Kt+ of copper production every year.

The company’s goal is to own, build and run mineral resource projects across the country. It aims to optimise these projects using novel processing solutions for producing copper metal at the project location to enhance its value.

Rising demand for Cu for green transition

Currently, the company’s mission and vision are backed by the growing demand for copper in the global market. There has been a significant surge in demand for copper for green transition.

As per Resources and Energy Quarterly: March 2023 released by the Department of Industry, Science and Resources, ‘Copper prices are projected to grow to US$9,200 a tonne in 2028 as demand from the energy transition outweighs future production growth.’

Also, the report highlighted that ‘Australia’s copper exports are projected to grow from 868,000 tonnes in 2022–23 to around 970,000 tonnes in 2027–28, supported by additional production from new mines and mine expansions. As output grows and prices strengthen, Australia’s copper export earnings are projected to grow from $13 billion in 2022–23 to $15 billion (in real terms) in 2027–28’.

CYM’s focus on discovery of copper
The company hosts attractive portfolio of three copper projects in Western Australia with a Mineral Resource of +1.6 million tonnes of contained copper. It is operating on a multi-asset strategy to capitalise on the global electrification thematic.

Nifty Copper Project

 
Source: Company presentation

Cyprium’s 100% owned brownfield project, Nifty Copper Project is basically a large open cut resource with copper oxides and predominately copper sulphide ores. It is one of the significant historical mines with continuous operations for more than 25 years.

The Nifty Copper Mine is equipped with essential infrastructure, such as Cu cathode heap leach SX/EW facility, Mtpa sulphide concentrator, a gas turbine power station, and an all-weather airstrip with sunk capital of around AU$450m. Also, the company has received permits to begin open pit oxide heap leach SX-EW operations at the project site.

Restarting the Nifty operation by developing a large-scale open cut mine through its important sunk capital infrastructure will open path for Nifty’s +15 year, +900Kt copper resource.

Maroochydore Copper Project

Source: Company website

The project holds potential to build value from a substantial copper resource.

It has substantial shallow Oxide and Sulphide Mineral Resource of over 480,000 tonnes of copper. The company has concluded the diamond drilling at the site for metallurgical testwork.

The mineralogy of Nifty and Maroochydore is similar as it is hosted in the shales of the Broadhurst Formation, demonstrating potential for synergies with the Nifty Heap Leach strategy. The current resource also contains material cobalt endowment and potential for synergies with the Nifty operation.

Murchison Copper Project

Source: Company website

This project is a shallow resource development opportunity for the company. The Hollandaire and Nanadie Well are complementary deposits containing the Murchison Copper Project. Hollandaire Mineral Resource (JORC 2012) 2.8Mt @ 1.9% Cu Contained metal of 51.5kt of Cu, 28Koz Au & 0.5Moz Ag while Nanadie Well Mineral Resource (JORC 2012) 40.4Mt @ 0.4% Cu Contained metal of 162kt of Cu, 130Koz Au & 1.4Moz Ag.

Nanadie Well is a polymetallic deposit with Cu, Au, Ag, PGE’s as well as other base metals including Nickel.