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Cobre Ltd (ASX:CBE) has made a significant advancement in its Kitlanya West and East Copper Projects located in Botswana's Kalahari Copper Belt by entering into a letter of intent (LoI) with a wholly owned subsidiary of BHP. This joint venture (JV) agreement represents a notable endorsement of Cobre's projects and their potential to host Tier 1 copper and silver deposits.
The partnership follows Cobre's involvement in the BHP Xplor program, which provided funding for a seismic survey recently completed on the Kitlanya West project. This initiative not only validates Cobre's exploration efforts but also enhances the likelihood of discovering economically viable mineral resources through BHP's extensive expertise and exploration capabilities.
Cobre's CEO, Adam Wooldridge, remarked on the significance of this agreement, stating that the successful negotiation with one of the world's foremost mining companies marks a pivotal moment for Cobre. The participation in the BHP 2024 Xplor cohort has enabled a comprehensive review of the Kalahari Copper Belt, culminating in the collection of vital seismic data over the promising northern margin of the belt. The proposed transaction with BHP is anticipated to fully finance Cobre's ongoing exploration initiatives, specifically targeting the identification of Tier 1 deposits within the Kitlanya West and East Projects.
In addition to this joint venture, Cobre plans to advance its 100% owned Ngami Copper Project, focusing on in-situ copper recovery. A scoping study is scheduled for release in early October, alongside further drilling efforts at the 100%-owned Okavango project. This multifaceted strategy allows Cobre to explore potential Tier 1 discoveries while also developing opportunities at Ngami and pursuing short-term exploration goals at Okavango.
The joint venture is contingent upon obtaining necessary approvals and the completion of BHP’s due diligence investigations. Cobre is committed to releasing final details once the agreement has been formalized, further illuminating the company's path forward in copper exploration and development.
This collaboration with BHP not only enhances Cobre's operational capacity but also positions the company strategically within the competitive landscape of mineral exploration in Botswana. With a robust exploration plan and partnerships with industry leaders, Cobre aims to maximize its potential in the Kalahari Copper Belt, thereby reinforcing its commitment to discovering high-quality copper and silver resources.
