How is C29 Metals (ASX:C29) positioned as copper demand improves?

Highlights

• Copper’s long-term outlook remains positive due to increased emphasis on green energy and battery technology.
• C29 Metals continues to increase its copper footprint in Australia.
• The Company recently completed a drilling campaign over the Reedy Creek Project with encouraging visual results.

Copper prices on the London Metal Exchange (LME) have bounced back from interim lows made in mid-March. Copper is the building block of all electrical equipment manufactured around the world.

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All eyes are on battery metals

Australia ranks second in copper resources, only after Chile. As per a Cochilco (Chilean Copper Commission) report, copper production from Chile fell 7% in January to 425.7kt, the leanest January in over a decade. The time seems apt for copper explorers to fast-track their exploration and development operations to substitute production losses from Chile.

ASX-listed copper explorer C29 Metals Limited (ASX:C29) is positioning itself to leverage the vibrant copper market. The Company holds copper assets across Australia and is moving aggressively to grow its project inventory.

Last month in February, the mineral explorer signed an option agreement to acquire the Mayfield Copper Project located in Queensland. C29 believes that the Mayfield project provides an excellent exploration opportunity in a well-established mineral camp.

The project is located in a structurally promising area dominated by the fertile corella formation. It lies along the massive Pilgrim Fault Zone, and mineralisation is believed to be obscured by the thin alluvial or the Cambrian cover.

Related read: C29 Metals (ASX:C29) reports an action-packed December quarter

Mayfield Exploration Licence map (Image source: Company update, 21 February)

The project’s tenement package is spread across an area of 91km², and the exploration licence, EPM19483, is being processed to extend it for another three years. The previous explorer, Isa Tenement Pty Ltd, had identified at least three mineralisation styles over the project area. Regional soil sampling programs also indicated magnetic anomalies associated with the mineralisation of Cu-Au or base metals.

C29 is currently engaged in due diligence of the project and will update the market about the results once it is completed.

Related read: C29 Metals up 5% on execution of an option agreement to acquire Mayfield Copper Project

Maiden drilling at Reedy Creeks Project returned positive visual mineralisation     

During the 2021 December quarter, C29 commenced a drilling campaign over its 100%-owned Reedy Creek Project, situated in the NSW region. The project lies in the Lachlan fault belt, a prolific mining jurisdiction of Australia.

The Company on 8 March 2022, announced the completion of the drilling program with seven holes drilled for 1059.9m. The drilling was planned to test and confirm historical high-grade zones of Cu, Au, Pb, Zn, Mn, and Ag. Additionally, the drilling operation also tested the mineralised extension between the Endeavour 1 prospect and the Reedy Creek Mine.

Drillhole locations between Reedy Creek Mine and Endeavour 1 (Image source: Company update, 8 March 2022)

Related read: C29 Metals (ASX:C29) wraps up drilling at Reedy Creek with mineralisation extending 200m of strike

The campaign was significant for the Company as it commenced within one month from its listing on the ASX. Visual inspection confirms the intersection of sulphide and oxide zones. Also, one of the holes intersected a 24m section of sulphide-bearing skarn zone, which indicates the presence of significant mineralisation on the project.

Apart from Reedy Creek, C29 Metals holds significant exposure to copper assets through its Sampson Tank Project in the NSW region. The Company carried out a geochemical survey over the project tenement recently, which generated multiple targets for the drilling campaign.

Also, C29 has one Exploration Licence Application under process for the Torrens tenement package that has iron oxide copper gold (IOCG) potential.

C29 is positioning itself to become a major player in the copper mining industry through its Tier-1 mining projects. Given good visibility of copper demand in the future, C29 is leaving no stones unturned as it embarks on the journey to make the best of the opportunities unfolding.