Resources Quarterly Wrap: Next-gen copper projects take shape

• Strong demand and supply concerns are fuelling interest in new copper developments
• CuFe advances Tennant Creek studies as GreenTech targets Whundo resource growth
• Pivotal’s Horden Lake study outlines a potential copper operation in Québec

Special Report:Copper is attracting renewed attention as demand grows for electricity, clean energy technologies and digital infrastructure.

The metal is used in everything from electric vehicles and renewable energy systems to power grids and the data centres supporting artificial intelligence.

The International Energy Agency forecasts copper will record the largest volume growth among critical minerals, adding about 7Mt to annual demand by 2040.

CuFe (ASX:CUF)

CuFe is advancing development studies at its Tennant Creek copper-gold-bismuth project in the Northern Territory, where work during the September quarter focused on bringing the Orlando and Gecko deposits into a full project scoping study.

Together, the deposits have a resource of 23.5Mt at 1.73% copper and 0.72g/t gold, containing about 405,000t of copper, 544,000oz of gold, 2.9Moz of silver and 16,500t of bismuth.

The full project study builds on the earlier Orlando scoping study and is expected to be completed this quarter.

CuFe is also assessing options to use existing regional processing infrastructure and third-party toll treatment.

Alongside Emmerson Resources and Tennant Minerals, it is investigating a multi-user processing facility for the wider Tennant Creek mineral field.

A pre-feasibility engineering and cost-estimate study is expected by the end of November.

CuFe held a 55% interest in the Tennant Creek project during the quarter, then announced a binding, conditional agreement to acquire the remaining 45% through the purchase of Gecko Mining Company.

The proposed acquisition would give CuFe full ownership of the project, subject to due diligence, shareholder approval and other conditions.

Since quarter-end, CuFe has started a 20,100m drilling program to improve resource confidence, test extensions and collect technical information for future development studies.

GreenTech Metals (ASX:GRE)

GreenTech is working to expand the resource base of its West Pilbara copper portfolio, with drilling at the Whundo project a September-quarter highlight.

Whundo has a JORC 2012 Mineral Resource of 6.2Mt at 1.12% copper and 1.04% zinc.

At the Ayshia deposit, diamond drilling returned 4.8m at 7.1% copper, 1.2% zinc, 0.9g/t gold and 30g/t silver from 367m.

The intersection included 3.4m at 9.4% copper, 1.6% zinc, 1.2g/t gold and 40g/t silver, extending the tested mineralised trend about 65m down plunge beyond the existing resource envelope.

GreenTech says the result points to further high-grade copper potential at depth.

A further 11 diamond holes were drilled during the quarter, with assays expected in the December quarter and an updated resource also targeted for then.

Wider-diameter drilling is supporting metallurgical sample collection for the updated resource, which is expected to include gold and silver.

GreenTech is also advancing its nearby Munni Munni platinum group element-copper-nickel project.

An independent geochemical review identified priority targets around the base of the intrusion and a copper anomaly measuring about 5km by 2km.

Heritage clearance for priority drill locations was secured after quarter-end, and a fixed-loop electromagnetic survey was completed, with data processing and interpretation under way.

An updated Munni Munni resource estimate reported under the JORC Code 2012 is targeted for the December quarter.

Pivotal Metals (ASX:PVT)

Pivotal released a maiden scoping study for its Horden Lake copper project in Québec during the September quarter, supported by an expanded resource and metallurgical testwork.

The 100%-owned project has a mineral resource of 52.4Mt at 1.05% copper equivalent for 549,000t of contained copper equivalent.

The study estimated a post-tax NPV7 of A$920 million and an IRR of 49% using base-case prices, rising to A$1.34 billion and 63% under its spot-price scenario.

Net pre-production capital is estimated at A$411 million, with payback forecast at 1.3 years from first ore in the base case.

The study used a copper price assumption of US$5.50/lb, alongside prices for nickel, gold, silver and other by-products.

The proposed operation would produce about 247,000t of copper equivalent over an initial 10-year mine life, including average annual output of about 29,000t during the first eight years.

All-in sustaining costs are estimated at about US$1.00/lb of copper after by-product credits, based on an open-pit mine and flotation plant.

Metallurgical testwork completed during the quarter recovered 90.5% of the copper into a concentrate grading 25.7% copper in a locked-cycle test.

Pivotal says the scoping study mine plan uses only part of the existing resource, leaving room to expand the initial development concept.

The deposit extends for more than 2.8km along strike and remains open along strike and at depth, with more resource-definition and extension drilling planned for the coming Québec winter field season.

At the 100%-owned Belleterre project, Pivotal completed drilling at Lorraine Mine East and Shanty Lake during the quarter.

First assays from Lorraine Mine East were released after quarter-end, while a follow-up downhole electromagnetic survey at Shanty Lake refined a conductor that remains untested by drilling.

At Stockhead we tell it like it is. While CuFe, GreenTech Metals and Pivotal Metals are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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