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Copper market dynamics serve up a golden opportunity for Coda Minerals (ASX: COD)

Highlights

  • Coda is engaged in the exploration and development of the Elizabeth Creek Cu-Co Project and the Cameron River Cu-Au Project.
  • Coda is undertaking drilling operations on the Emmie Bluff and the IOCG target Emmie Bluff Deeps on the flagship Elizabeth Creek Project.
  • The Company is well placed in terms of cash and finance and galloping ahead with a well-seasoned and experienced Board.

The junior copper explorer Coda Minerals Limited (ASX:COD) is going strength to strength to develop copper potential on its flagship Elizabeth Creek Project. The project holds potential for Zambian-style copper-cobalt mineralisation as well as iron oxide copper gold (IOCG) potential.

Coda’s exposure to copper and cobalt makes it a rare investment opportunity as both the metals are in huge demand and Coda is all set to advance to the next level on the project.

Copyright © 2021 Kalkine Media, Data source: Company update, 31 August 2021

Elizabeth Creek Project: A copper project in the heart of the Olympic Copper Province

Coda is engaged in an aggressive exploration and drilling campaign on the Elizabeth Creek copper-cobalt Project. The project is spread across a 701 km2 area in South Australia. The project hosts several copper and cobalt prospects, including Emmie Bluff, Windabout, MG14, Powerline, MG14 North and Hannibal. The project has established mineral resources of 280,000 tonnes of Cu Eq from two of its prospects - Windabout and MG14.

Read more: Coda steps up efforts to unlock IOCG potential of Emmie Bluff Deeps

Since Coda entered into the project through a Farm-in agreement and JV, the focus of exploration activities was shifted to Emmie Bluff. The prospect hosts Zambian-styled copper-cobalt mineralisation. Coda is targeting a maiden mineral resource during the second half of 2021.

IOCG and Zambian-style targets on Elizabeth Creek Project. Coda has the right to earn up to 75% interest in the Elizabeth Creek assets. Current ownership 70% Coda (ASX:COD), 30% Torrens (ASX:TRN) (Image source: Company update, 31 August 2021)

Drilling at Emmie Bluff Deeps

During the June quarter, Coda commenced a drilling operation on IOCG prospect, Emmie Bluff Deeps. The first hole drilled on the prospect was DD21EB0018, drilled to the depth of 1,041.6m. The hole encountered 200m of haematitic and altered sediments and granites. The hole also hosts 50m of moderate to intense copper sulphide mineralisation in between 200m of the altered zone.

To validate the result and establish the mineralisation envelop, Coda decided to drill wedges (daughter) holes to DD21EB0018. Two wedges have been drilled with assay results as below:-

  • Wedge 1 (West) : 17m @ 1.18% Cu and 0.31g/t Au
  • Wedge 2 (East) : 24m @ 2.17% Cu and 0.29g/t Au; 12.9m @ 3.46% Cu and 0.64g/t Au

Follow-up drilling at Emmie Bluff Deeps (Image source: Company update, 31 August 2021)

Related read: Coda Minerals (ASX: COD) strikes high grade Copper-Gold mineralisation at Emmie Bluff Deeps

The wedge DD21EB0018W1 intersected narrow but more intense chalcopyrite mineralisation. The second wedge DD21EB0018W2 has a stronger pathfinder element signature and intersected a thicker haematite cap. Wedge 2 indicates possible increasing alteration intensity to the east.

The drilling campaign is further progressing to test the area of interest with holes DD21EBD0002 in the east and DD21EBD0003 to the South.

Regional exploration

Coda has identified Hannibal, Powerline, and MG14 North prospects with potential for significant mineralisation. The Company is planning an extensive exploration program on these prospects, including drilling campaigns.

The prospects provide an excellent opportunity for resource expansion of the project.

Cameron River Project

The Cameron River Project in Queensland is prospective for copper and gold. Coda entered into a Farm-in and JV agreement on the project with the right to earn up to 80% interest. The geological team of Coda collected 59 samples from the tenure area. The assay result shows that the samples are highly anomalous for gold, copper and nickel.

Related read: Progress on JVs with Terrace Mining, and Wilgus, strong finances highlight Coda Minerals’ (ASX:COD) Q3 FY21 report

Cameron River Project provides additional exposure to the buoyant copper market.

Copper: A transition metal for green future

Copper is in uptrend since the onset of the pandemic. It made a low of ~US$4,000/tonne, then started its upward journey to breach the 10-year high price and reached its all-time high price. The red metal on 10 May 2021 made its all-time high of US$10,724.5 per tonne on the London Metal Exchange (LME).

Related read: A glance at Coda Minerals’ (ASX:COD) transformational June quarter

The application of copper will grow with increasing energy needs of the world. The transitions into greener energy with new solar and wind farms need copper for a greener future. The demand is projected to remain strong while the supply side may see some dwindling as no major project or reserve is being added to the supply chain.

Price chart of copper at LME (Image source: Company update, 31 August 2021)

Why Coda bodes well with investors?

Copyright © 2021 Kalkine Media, Data source: Company update, 31 August 2021

Path forward

Coda is focused on delivering Mineral Resource at its flagship project Emmie Bluff while advancing on IOCG and other exploration opportunities at Elizabeth Creek and Cameron River.

Image source: Company update, 31 August 2021

Related read: Coda Minerals’ (ASX:COD) shares fly 235% on discovery of IOCG zone at Emmie Bluff Deeps

Share price

Shares of COD were trading at AU$1.1 on 1 September 2021 at 12:12 PM AEST, with a market capitalisation of AU$107.54 million.

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