Arc Minerals (LON:ARCM), an exploration company forging partnerships to discover and develop Tier 1 copper deposits, has provided an update on exploration activities at its Joint Venture with a subsidiary of Anglo American in Zambia.
DirectorsTalk caught up with Executive Chairman Nick von Schirnding and Chief Operating Officer Vassili Carellas to break down the significance of these findings, the potential for a large-scale copper deposit, and what this means for the joint venture with Anglo American. They also discuss the legal and financial stability of Arc Minerals, upcoming exploration plans, and why Zambia remains a prime location for copper mining.
Highlights
· Diamond Drill Hole KCDD002 – 40.60m @ 0.61% Cu from 22.25m
o Incl. 7.70m @ 1.72% Cu from 26.75m, or
o 12.75m @ 1.20% Cu from 22.25m
· Mineralisation confirmed 1.5km from Cheyeza East Oxide Occurrence
· Both Oxide and Sulphide Mineralisation Intersected
· Six holes completed for a total of 4,016m drilled at four targets
· Deepest hole drilled down to 977.40m
· Sulphide Mineralisation confirmed at Nkwazhi
Nick von Schirnding, Executive Chairman of Arc Minerals, commented:
“I am delighted to report that the first assay results of the Anglo JV confirm additional near-surface copper mineralisation at the Cheyeza target. The newly drilled mineralisation is similar to historic assays in terms of both grade and thickness and is over 1.5 km away from Cheyeza. Work is now underway to identify further potential drilling targets at Cheyeza to test the extents of sulphide mineralisation.”
Commentary
Following an extensive geological mapping and rock chip and soil sampling program over the Anglo JV license areas (Fig 1.), a diamond drilling campaign commenced in August 2024 with six drill holes completed for 4016 m. Assay results have now been received for three of the six holes.
Figure 1. Anglo JV License Area
Near surface mineralisation observed at a new target approximately one and a half kilometres east of the existing oxide occurrence at Cheyeza (November 7th 2024 announcement, Figure 2.) has been verified by diamond drilling. Assay data from hole KCDD002 includes 40.60m at 0.61% Cu from 22.25m down the hole, including 12.75m @ 1.20% Cu from 22.25m and 7.70m @ 1.72% Cu from 26.75m.
The KCDD002 assay results demonstrate the potential to add to the known extents of the oxide occurrences at Cheyeza, where similar high grade zones have been intersected and reported in the past. Historic hole CHDDE004 intersected 18m @ 2.35% Cu from 30.60m with a higher grade zone of 7.60m @ 4.15% Cu from 39m, and hole CHDDE060 intersected 39m @ 1.47% Cu with a higher grade zone of 10m @ 2.25% Cu from 41m.
Importantly and unlike the previously reported oxide occurrence which is characterised as being a remobilised copper oxide occurrence, the oxide mineralisation intersected in hole KCDD002 may be the result of weathering of sulphide mineralisation at source, which is supported by the presence of sulphide mineralisation below the oxide zone.
Figure 2. Anglo JV Drillhole at Cheyeza East in relation to the Oxide Occurrence
Assay results have also been received for the two holes drilled at the new target Nkwazhi, where low grade sulphide mineralisation was confirmed in the first hole.
Details and a summary of the results received can be viewed in the Table 1. Report in Appendix A.
Qualified Persons
Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Operating Officer for Arc Minerals and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Mr Carellas consents to the inclusion in this announcement of the technical matters based on his information in the form and context in which it appears.
The Directors of Arc are solely and entirely responsible for the content of this announcement. Neither Anglo American nor any other person, accepts responsibility for the adequacy or accuracy of this news release.
Background on the Anglo American Joint Venture
Arc Minerals has entered into a Joint Venture Agreement with Anglo American on its Zambian Copper Project (ZPC) comprising a number of licenses covering circa 870km2 in the North Western Province, in the Domes region of the Zambian Copperbelt near world-class mines such as First Quantum Minerals’ Sentinel and Kansanshi copper mines and Barrick’s Lumwana mine.
The license areas are located approximately 900 km from Lusaka, in Mwinilunga, North Western Province, and is well within the trending arm of the major geological structure known as the Lufilian Arc (Copperbelt), on the western flank of the Kabompo Dome.
The Copperbelt is home to all the major copper mines in Zambia and these licenses represent one of the last dome-related areas in Zambia yet to be explored in any detail.
Under the agreement, Anglo American can an earn-in on the ZCP by making a number of project expenditures and assume operator ship of the project. The details of the agreement are set out below:
· Phase 1 – Anglo will pay $14.5M in staged cash payments to Unico Minerals Ltd (67% owned by Arc) and invest up to $24m in exploration expenditures (total $38.5M) within three years and 180 days of the signing of the Agreement (RNS 20.04.23) to secure a 51% interest in ZCP.
· Phase 2 – Anglo may elect to increase its interest in the ZCP to 60% by investing a further $20M (total $58.5M) within two years of the completion of Phase 1.
· Phase 3 – Anglo may elect to increase its interest in the ZCP to 70% by investing a further $30M (total $88.5M) within two years of the completion of Phase 2.
