Somerset Minerals has significantly expanded its footprint in Nunavut’s Coppermine copper region, acquiring 458 km² to become the largest landholder and gearing up for a maiden drilling campaign.
- Acquisition of additional 458 km² increases Somerset’s tenure to 1,665 km²
- 91% of Somerset’s land covers Copper Creek Basalt, key to high-grade copper mineralisation
- Fully funded $2.39 million placement supports imminent surface sampling and drilling
- Maiden drill campaign targeting Coronation prospect near White Cliff Minerals’ Danvers deposit
- Bridge loan facility secured to expedite tenure acquisition, subject to shareholder approval
Strategic Expansion Solidifies Regional Dominance
Somerset Minerals Limited (ASX:SMM) has taken a decisive step to cement its position as the dominant player in the Coppermine copper province of Nunavut, Canada. By acquiring an additional 458 square kilometres of highly prospective exploration licences, Somerset now controls a contiguous landholding of 1,665 km², making it the largest landholder in this underexplored but highly promising copper region.
This expansion is particularly significant because it boosts Somerset’s control over the Copper Creek Basalt Formation, which hosts the district’s highest-grade copper mineralisation styles. With 91% of its tenure covering this key geological formation, Somerset surpasses White Cliff Minerals, which holds approximately 1,225 km² with just 52% coverage of the Copper Creek Basalt.
High-Grade Copper Potential and Historical Indicators
The Copper Creek Basalt Formation is known for two dominant copper mineralisation styles: fault-hosted veins with grades ranging from 2% to as high as 45% copper, and flow-top replacement mineralisation grading between 2% and 15% copper. The newly acquired tenure targets the upper members of this formation, which are more copper-enriched and host the majority of known copper occurrences, including the notable Danvers deposit.
Historical data reveals 35 mapped copper occurrences within the new ground, many showing chalcocite and native copper in fracture fills and fault zones, classic indicators of high-grade mineralisation. Surface sampling results from previous campaigns have returned remarkable grades, including rock chips with up to 45.4% copper and 263 g/t silver, underscoring the potential richness of the area.
Fully Funded Exploration and Upcoming Drilling Campaign
Somerset is well-positioned financially to advance its exploration ambitions, having recently completed a two-tranche placement raising $2.39 million before costs. This capital injection, combined with all necessary permits now in place, enables the company to commence a regional surface sampling program immediately. This program aims to build on historical high-grade results and refine drill targets.
The maiden drill campaign is scheduled to begin in early July, focusing on the high-priority Coronation target. Located just 7 kilometres from White Cliff Minerals’ Danvers prospect, which recently reported an exceptional intercept of 175 metres at 2.5% copper, Coronation offers a compelling opportunity to delineate significant copper mineralisation. Somerset’s Managing Director, Chris Hansen, highlighted the strategic importance of this campaign, describing it as a “high-impact period” for the company with strong newsflow expected.
Bridge Loan Facility Supports Timely Acquisition
To facilitate the rapid acquisition of the new tenure ahead of shareholder approval for the second tranche of the placement, Somerset secured a $100,000 unsecured bridge loan from BT Global Holdings Pty Ltd. The loan carries no interest and offers the lender the option to convert the amount into shares at a 15% discount to the 15-day volume-weighted average price, subject to shareholder approval. Additionally, the lender will receive 5 million unlisted options exercisable at $0.03, expiring in 2029.
This financial maneuver underscores Somerset’s commitment to maintaining momentum in a region that has seen limited exploration since the late 1960s but is now attracting renewed interest due to recent high-grade discoveries nearby.
Positioning for a Global-Scale Copper Opportunity
The Coppermine Project’s geological setting is analogous to the Keweenaw Peninsula copper deposits in Michigan, known for high-grade native copper in continental flood basalts. Somerset’s extensive landholding covers multiple high-priority targets beyond Coronation, including the Laphroaig, Ardbeg, Jura, and Oban districts, each supported by historical drilling, surface sampling, and geophysical anomalies.
While historical resource estimates in the region are not compliant with modern reporting standards and require further validation, Somerset’s systematic approach to exploration, backed by solid funding and strategic land acquisition, positions it well to unlock value in this globally significant copper province.
Bottom Line?
Somerset’s expanded footprint and imminent drilling mark a pivotal moment as it seeks to translate geological promise into tangible discoveries.
Questions in the middle?
- Will Somerset’s maiden drilling at Coronation confirm high-grade copper mineralisation akin to nearby Danvers?
- How will shareholder approval impact the bridge loan conversion and Somerset’s capital structure?
- What are the timelines and expected milestones for assay results and subsequent exploration phases?