Metal prices are rising and copper prices have rallied to $9,800 a ton putting the spotlight on explorers across the world who are set to benefit from higher demand as countries across the world transition away from fossil fuel to renewable energy. Not only have major explorers rallied, but smaller ones like Cobre have equally seen a price boost from greater demand for copper prices. Cobre Limited is an ASX-listed, mineral exploration company with a focus on base & precious metals, particularly copper – in the Kalahari Copper Belt and Western Australia. 

The company has a range of projects, strategically located in Africa’s top mining jurisdiction and the top 7th jurisdiction in the world according to the Fraser Institute. Cobre has launched an exploration project that targets traditional copper-silver mineralisation on the steeply dipping anticline limbs as well as fold-related mineralisation. 

Why is the Okavango Project a Good Investment

• The geology of this project has always been compelling, and its location has become that much more strategic with MMG entering the KCB.
• Good signs of metal that could generate significant revenue.
• Strong copper demand to support short and medium-term prospects. 

Cobre has used a combination of high-resolution magnetics and detailed AEM to provide an effective map of prospective contact undercover. The Okavango Copper Project includes the strike extension of several prospective D’Kar/ Ngwako-Pan Formation contacts from Khoemacau’s Expansion Project (168 Mt @ 2.1% Cu and 27 g/t Ag). In short, the project targets sediment-hosted copper-silver deposits in doubly-plunging fold trap sites that are above traditional D’Kar/Ngwako Pan Formation contact similar to those being developed by neighbors Sandfire. The geology of this project has always been compelling, and its location has become that much more strategic with MMG entering the KCB. 

Early results reveal dark pyritic carbonaceous siltstones that reduce trap site sin rocks, limestones and algal mats that indicate a shallow marine environment, possible evaporites and elevated copper mineralisation in drill hole OCP06 and silver mineralisation in drill hole OCP02 are proof of mineralisation.

OKAVANGO PROJECT TIMELINE

• 13,281 soil samples were collected and analyzed before 2018.

• In 2018, 2,369km of regional and detailed data provided a means for generating underlying contact. 

• In 2018, data was collected using high-resolution magnetic data, providing the necessary layer to assist with target generation. 

• In 2019, a total of six holes were drilled alongside the prospective Ngwako Pan / D’Kar Formation contact. Diamond drilling minimizes environmental costs and improves productivity. 

Cobre Limited has begun a 5-hole, 2, 000-meter diamond drilling programme at its wholly-owned Okavango Copper Project in Botswana to test for copper-silver mineralisation. The project is strategically located near the MMG’s Khoemacau Copper mine and has a strong chance of discovering copper-silver mineralisation upon drilling. 

Why does this matter? 

Africa is one of the most important sources of copper in the world and is home to some of the most impressive copper belts. Two of the world’s 10 top copper-producing countries are found in Africa. While production comes primarily from the Democratic Republic of Congo (DRC), Zambia, and South Africa, a new hot spot is emerging in Namibia. Read on for a look at copper in those four countries.

As concerns for climate change increase over the coming years, FDI in environmental technologies such as wind and solar will emerge as the fastest-growing sector outside services. The United Nations Conference on Trade and Development. (UNCTAD) finds that the total share of greenfield investment in non-services sectors has risen from 1 - 20% over the last two decades. If one takes a closer look at projects in the EV sector, they have grown by 27% annually since 2016. 

Metal prices are rallying and while the price of silver is still low in comparison to the metals, its industrial and dual-use will allow it to rally later in the year as it usually follows gold rallies a bit later. Higher metal prices will support Cobre’s share price over the short run, but support revenue growth over the medium term.