C29 Metals (ASX:C29) shares jump 15% on completion of Mayfield copper gold Project acquisition

Highlights

• C29 Metals has received indicative approval for the transfer of exploration license EPM19483 to the company, by the Queensland Governments Department of Resources.
• Mayfield Project represents an excellent potential for copper mineralisation as 80% of the tenure is covered under thin alluvial cover.
• C29 to commence exploration activities soon on the project with geophysical surveys planned for this year.
• Shares of C29 surged more than 15% on the back of regulatory approval for the deal.

The ASX-listed copper explorer C29 Metals Limited (ASX:C29) announced the completion of the acquisition of the highly prospective Mayfield Copper-Gold Project located in Queensland. The Department of Resources of the Queensland Government has provided its indicative approval for the transfer of the licence EPM19483 to C29 Metals.

On back of this news C29 shares zoomed up  15.4%  to AU$0.15 apiece during the early hours of trade despite the broader index S&P 200 trading in the red zone.

Mayfield acquisition deal

On 21 February 2022, C29 announced its intention to acquire Mayfield Project. The deal was negotiated for a cash consideration of AU$210,000 and issue of 1,558,963 ordinary shares at a price of AU$0.157 per share.

C29 reported that it has completed all requirements for the settlement of the deal.

Image source: © 2022 Kalkine Media® (Data source: C29 update, 31 August 2022)

The Mayfield Project is spread across 91km², and the licence EPM19483 consists of a single large tenement and a smaller single block. The project is located in the eastern fold belt of Proterozoic Mount Isa Inlier, a region highly prospective for copper.

Projects like Nil Desperandum and Lady Fanny of Carnaby Resources (ASX:CNB) and Kalman deposit of Hammer Metals (ASX:HMX) lie in the close vicinity of Mayfield.

Project location map (Image source: C29 update, 31 August 2022)

Previous exploratory works on the tenement have identified at least three mineralisation styles. These include mylonite hosted gold, ironstone hosted magnetic Cu-Au and Zn-Pb-Ag mineralisation. Magnetic anomalism associated with copper-gold or base metal has also been detected along much of their strike length at Mayfield. 

Near-term plan

The exploration licence has been recently renewed for additional three years. C29 is planning to commence an exploration program on the project immediately. The company has already commenced on-ground exploration, which will be followed by a geophysical survey soon.

Once these initial exploration activities are complete C29 will proceed with target ranking and prioritising them for follow-up exploration programs with an aim to generate targets for drill testing.

The company would run a geochemical sampling program, including soil sampling, auger drilling and aircore drilling for lesser advanced targets. With more advanced targets, it will proceed with electromagnetic (EM) surveys and drilling of the basement using RC or diamond drilling methods.