Can Alma Metals’ Scoping Study Unlock Briggs’ Full Potential Amid Funding Needs?

• Completed $1.06 million pro-rata rights issue and shortfall placement
• Updated Briggs MRE includes 2Mt copper, 73Mlb molybdenum, and 16.5Moz silver
• Metallurgical tests show 95% copper recovery into high-grade concentrates
• Scoping study underway with mining, processing, and tailings management
• 900m diamond drill planned to test deep geophysical anomaly and grade distribution

Capital Raising and Financial Position

Alma Metals Limited has successfully completed a $1.06 million capital raising through a one-for-six pro-rata rights issue, with the entire shortfall placed to institutional investors shortly after. This funding boost strengthens the company’s balance sheet, which closed the quarter with approximately $3.4 million in cash and liquid investments, positioning Alma well to advance its flagship projects.

Briggs Copper JV Project Resource Update

The company announced a significant update to the Mineral Resource Estimate (MRE) for its Briggs Copper JV Project in Queensland. For the first time, the resource now includes silver as a by-product alongside copper and molybdenum. At a 0.15% copper cut-off grade, the MRE contains an estimated 2 million tonnes of copper, 73 million pounds of molybdenum, and 16.5 million ounces of silver. Notably, a substantial portion of this resource is classified as Indicated, offering potential for a higher-grade starter pit with a low strip ratio, which could improve project economics.

Encouraging Metallurgical Test Results

Metallurgical studies have demonstrated very high copper recoveries of up to 95% into concentrates grading as high as 29% copper. These recoveries were achieved at coarse grind sizes, suggesting potential for lower power consumption and operational efficiencies in processing. The test work also confirmed the presence of payable silver and gold credits in the concentrates, enhancing the project's value proposition. Tailings characterisation indicates non-acid forming material with good settling properties, simplifying environmental management.

Progress on Scoping Study and Exploration

Alma has engaged consultants to advance mining, mineral processing, and tailings management studies as part of a comprehensive scoping study, expected to be completed in the September quarter. This study aims to evaluate the feasibility of a large-scale, long-life open-cut mine producing a marketable copper concentrate. Concurrently, drilling activities are set to resume with a 900-metre diamond drill hole planned to test a deep geophysical anomaly southwest of the current resource and to better understand grade distribution across the deposit. This drill hole is partially funded by a $250,000 grant from the Queensland Government’s Competitive Exploration Initiative.

Broader Project and Corporate Developments

Alma continues to manage its joint venture with Canterbury Resources Ltd, holding a 51% interest in Briggs with the option to increase to 70% by spending an additional $10 million by 2031. The company is also advancing exploration in the East Kimberley Copper Project in Western Australia, having secured key exploration licences and agreements with Traditional Owners to commence reconnaissance activities. On the corporate front, Lowell Resources Fund has become a substantial shareholder with an 8.03% stake, and Alma remains debt-free, maintaining a solid financial footing.

Bottom Line?

With robust metallurgical results and a strengthened balance sheet, Alma Metals is poised to unlock further value at Briggs as the scoping study and drilling programs progress.

Questions in the middle?

• Will the upcoming scoping study confirm economic viability for a large-scale open-cut mine at Briggs?
• How will the deep geophysical anomaly drilling impact the resource size and grade profile?
• What are the timelines and funding plans for advancing Briggs toward pre-feasibility and development?