Cobre Uncovers New Copper Zones and High Purity Quartz with $4.6M Capital Raise

Botswana: Expanding Copper Horizons at Ngami

Cobre Limited’s December quarter update highlights significant progress at its Ngami Copper Project in Botswana. Two exploration drill holes, NCP55 and NCP56, intersected thick zones of chalcocite-dominant copper mineralisation approximately 7.5 kilometres along strike from the established Comet Target. This discovery extends the mineralised strike continuity into previously untested ground, unveiling a new target area dubbed Cosmos.

The mineralisation is characterised by fine-grained chalcocite hosted along fractures and cleavage planes, with grades visually estimated up to 5% chalcocite near the footwall contact. These results build on historical drilling and airborne gravity data, suggesting a structurally controlled copper system with potential for sizeable deposits. Assay results are anticipated in early February 2025, which will be critical to confirming the extent and grade of this new target.

Complementing exploration, metallurgical test work has demonstrated encouraging copper and silver recoveries exceeding 90%, supporting Cobre’s strategy to pursue In-Situ Copper Recovery (ISCR) methods. This approach could offer a cost-effective extraction pathway for the large Exploration Target previously estimated between 103 and 166 million tonnes at 0.38 to 0.46% copper.

Western Australia: Unlocking High Purity Quartz Potential at Perrinvale

In Australia, Cobre’s Perrinvale Project has emerged as a significant new frontier with the identification of multiple quartz units exhibiting exceptionally high silica content. The maiden Exploration Target ranges from 5.1 to 28.3 million tonnes at a pre-beneficiation SiO2 grade of 99.1% to 99.6%, positioning Perrinvale as a potential supplier of high purity quartz (HPQ) critical for silicon production in electronics and renewable energy technologies.

Ongoing beneficiation and contaminant deportment test work aims to upgrade the quartz to ultra-high purity standards, which command premium market prices. Importantly, an Aboriginal Cultural Heritage Survey completed in November 2024 cleared the way for future drilling activities, subject to regulatory approvals. The project’s strategic location within the Yilgarn Craton and its pegmatitic quartz textures further enhance its prospectivity.

Corporate and Strategic Developments

Financially, Cobre successfully completed a two-tranche placement raising approximately A$4.6 million at a price of A$0.065 per share, attracting strong support from both new and existing institutional investors. The second tranche, subject to shareholder approval, is expected to raise an additional A$0.8 million, bolstering the company’s balance sheet to fund ongoing exploration and development activities.

On the strategic front, negotiations with BHP Group continue regarding a material earn-in joint venture over the Kitlanya West and East copper projects in Botswana. This partnership could accelerate exploration for Tier 1 copper-silver deposits, leveraging BHP’s technical expertise and financial resources.

Additionally, Cobre maintains a 3.8% equity stake in Rapid Lithium Limited, which has expanded its portfolio through the acquisition of Midwest Lithium Limited and is advancing zinc, germanium, and gallium projects in Canada. This investment aligns with Cobre’s broader exposure to critical minerals beyond copper and quartz.

Outlook and Next Steps

Looking ahead, the market will keenly await assay results from the Ngami Cosmos target, which could redefine the scale of Cobre’s copper resources in Botswana. Concurrently, metallurgical and beneficiation outcomes from Perrinvale will determine the feasibility of producing ultra-high purity quartz products, potentially opening new revenue streams aligned with global decarbonisation trends.

With a strengthened financial position and advancing projects in two continents, Cobre is well-positioned to deliver on its exploration ambitions. However, the transition from Exploration Targets to JORC-compliant Mineral Resources remains a critical milestone that will underpin future valuation and development decisions.