Shares of Arc Minerals (LSE: ARCM) were on the move in the London market this morning as the company announced what is called the largest copper sulfide discovery since the company began drilling there four years ago. Arc said the initial XRF (X-ray fluorescence) data indicated important degrees of copper mineralization.
Arc Minerals drilled at its Cheyeza East project in Zambia. The intersection is described as supporting the thesis of a large mineralized system and a marker horizon for further drilling. Arc holds a majority-controlled license on the site in northwestern Zambia.
Arc Minerals shares soared on the news, going from 3.32p yesterday to 4.16p this morning. Stocks still have a long way to go to return to their 52 week high at 8.9p. The miner currently has a market cap of Â£ 46million.
Arc Minerals Drill Results at Cheyeza East
The first hole drilled at Cheyeza East, inclined and oriented to intersect the interpreted stratigraphy perpendicularly, was drilled approximately 500 meters northwest of the 2019 oxide drilling campaign. The massive and disseminated sulphide mineralization was intersected at a depth of about 275 meters at the contact between the dolomite and the underlying mafic shale.
ARC Minerals’ current holdings include a 66% stake in Zamsort Limited, a private company focused on a future copper license in the Zambia Copper Belt, as well as a convertible loan to Zamsort which converts into an additional stake of about 5% in Zamsort. It also owns a 72.5% stake in Zaco Investment Limited (âZacoâ), a private company focused on a future copper and cobalt license adjacent to Zamsort.
The allure of the Zambian copper belt
Arc Minerals holds a majority stake in several licenses in sub-Saharan Africa. In the North West Province of Zambia, its permits are located in the Domes region of the Zambian Copper Belt, close to world-class mines such as First Quantum Minerals’ Sentinel and Kansanshi copper mines and the mine Lumwana from Barrick. In Botswana, its licenses are located in the Kalahari Copper Belt, an area that has recently undergone an exploration transformation, with discoveries of copper-silver deposits making it an emerging world-class destination for new mines.
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Arc, through its Zambian subsidiaries, owns a majority stake in a total of 872 km2 of licensed areas located on the opposite flank of the Kabompo Dome from First quantum Sentinel operations. In Botswana, through its Botswana subsidiary, it holds a majority stake in 215,000 km2 of licensed area located respectively less than 15 km and 38 km from Cupric canyons ” Zone 5 copper-silver project and. northeast and along the direction Sandfire Resources NL T3 copper-silver project.
Copper miners, regardless of their location, look like hot properties right now. Investors in Arc Minerals speculate that if the results of the analysis look strong enough, the bigger players will be more interested in the property.
Arc Minerals has filed two block listing applications – over 242 million warrants have been issued, of which 37.6 million have been exercised to date. The company has delayed the release of its interim results under AIM Rule 18 and will release them no later than October 31.