Somerset Minerals advances its strategic acquisition of the Coppermine Project in Nunavut, identifying multiple drill-ready copper anomalies and securing $2.39 million to fund maiden exploration.
- Shareholders approve 100% acquisition of Coppermine Project
- Reprocessed geophysical data reveals 15 anomalous zones with strong copper signatures
- $2.39 million capital raise committed to fund ~1,500m maiden drill program
- Sale of Valle del Tigre II concession to Barrick Gold completed with 1.5% royalty retained
- Exploration activities scheduled to commence early July 2025
Strategic Acquisition and Exploration Focus
Somerset Minerals Ltd (ASX:SMM) has marked a significant milestone in its growth trajectory with shareholder approval secured for the acquisition of a 100% interest in the high-grade Coppermine Project, located in Nunavut, Canada. This acquisition positions Somerset as the third largest landholder in the Coppermine region, a prolific copper-silver province with historical indications of substantial mineralisation.
The Coppermine Project spans over 1,200 square kilometres and covers a significant portion of the Copper Creek Formation, known for hosting structurally controlled high-grade copper mineralisation. Somerset’s landholding strategically surrounds White Cliff Minerals’ Rae Project, including the Danvers prospect, which boasts a historical non-JORC resource of 4.16 million tonnes at 2.96% copper.
Drill-Ready Targets Identified Through Reprocessed Data
During the March 2025 quarter, Somerset reprocessed several historical geophysical surveys, including induced polarisation (IP) and resistivity data, revealing 15 anomalous zones. Notably, at the Coronation Prospect, two highly anomalous chargeable zones measuring up to 1,700 by 300 metres have been identified as walk-up drill targets. These zones are supported by historical drilling with significant copper intercepts, some ending in mineralisation, underscoring their potential.
Similarly, the Jura District hosts several large geophysical isoshells coincident with known mineralisation, extending over a 7-kilometre high-grade trend. These anomalies, alongside others in the Laphroaig and Ardbeg districts, are set to be the focus of Somerset’s maiden exploration campaign.
Funding and Upcoming Exploration Campaign
To capitalise on these promising targets, Somerset has secured firm commitments to raise $2.39 million (before costs). This capital injection will fund a maiden exploration program, including approximately 1,500 metres of drilling and an extensive surface sampling campaign. The program aims to validate the historical high-grade rock chip samples, which include exceptional grades such as 45.4% copper with 60 g/t silver and 44.1% copper with 263 g/t silver.
Permitting is progressing smoothly, with a positive screening decision from the Nunavut Planning Commission confirming exemption from the Nunavut Impact Review Board. The company has secured its water licence, and final approvals from the Kitikmeot Inuit Association are anticipated imminently. Exploration activities are scheduled to commence in early July 2025, with logistical support from the nearby township of Kugluktuk.
Portfolio Management and Financial Position
In parallel with its Canadian focus, Somerset completed the sale of its Valle del Tigre II mineral concession in Ecuador to Barrick Gold (Ecuador) S.A., receiving remaining cash proceeds of approximately $401,000 and retaining a 1.5% net smelter royalty. This divestment aligns with Somerset’s strategy to concentrate on high-potential base metals projects.
At quarter end, Somerset held $542,000 in cash reserves, supplemented by the committed capital raise. Exploration and evaluation expenditure for the quarter was modest at $56,000, reflecting preparatory activities ahead of the maiden drill campaign.
Other projects, including the Prescott Project in Nunavut and the Elizabeth-Blackdome Joint Venture in British Columbia, remain on care and maintenance, with no exploration activities reported during the quarter.
Outlook
Somerset Minerals is poised to transition from acquisition and planning to active exploration, targeting high-grade copper mineralisation in a historically underexplored region. The upcoming drill results will be critical in validating the project’s potential and shaping the company’s growth trajectory.
Bottom Line?
Somerset’s imminent drilling campaign at Coppermine could redefine its copper exploration profile and attract renewed market attention.
Questions in the middle?
- Will the maiden drill program confirm the historical high-grade copper mineralisation at Coppermine?
- How will the $2.39 million capital raise impact Somerset’s financial flexibility and exploration pace?
- What are the potential timelines and hurdles for converting historical estimates into JORC-compliant resources?