Cobre Limited has a market capitalisation of $18 billion and projects set to generate long-term returns across Botswana, Africa. The company has a range of strong potential projects in Africa, where its mines are set to be exploited with advanced and environmentally friendly methods and after its second year being included in the BHP Xplore program, with a $500,000 prize, it is imperative to take stock of how far Cobre has come. 

Should I invest in Cobre Limited (ASX: CBE)? 

• Cobre has seen positive results from the Ngami Copper project already. 

• It is one of the six global companies selected to take part in the BHP Xplore program, which selects 6 winners out of 600 companies. 

• Its shareholders are confident in its prospects and management has taken up important positions recently. 

Cobre recently enjoyed positive hydrogeological results from the Ngami Copper Project as well as the new intersection encountered when drilling the PW001 production well. As such, significant value will be unlocked in the Botswana projects. Botswana’s supportive business environment means value for money for investors and a higher share price for Cobre Ltd over the long run.

Ngami Copper Mine (NCP)

Advanced exploration at the NCP targeting Copper-Silver mineralisation has begun and the Ngami Copper Project (NCP) is currently undergoing advanced exploration targeting copper-silver mineralisation with several encouraging drill intersections from the Comet target as well as surrounding targets. 

The project includes over 100km of prospective Ngwako-Pan/D’Kar Formation contact for traditional limb-based mineralisation. There is a range of minerals in this site ranging from copper, silver, and various hybrid forms that can be exploited for a range of markets and industries. Also, the returns from this project are reassured by Botswana’s supportive and encouraging business environment. 

The potential for mineralisation in folded trap sites is also evident. Consistent anomalous copper-silver intersections on this project have highlighted the significant endowment of this portion of the Kalahari Copper Belt. Combined with Kitlanya West, this project area offers district-scale opportunities on the northern margin of the Kalahari Copper Belt where Cobre holds the dominant license position. Meanwhile, the US Geological Survey rates this belt, the Kalahari Copper Belt, as the number one belt in the world to find new sedimentary copper deposits, ranked number one globally.

Botswana- Kalahari Belt to Support High-Grade Copper Production at Cobre

• The KCB is regarded as one of the world’s most prospective areas for yet-to-be-discovered sediment-hosted copper deposits by the US Geological Survey and is emerging as a new copper production belt. 

• Botswana ranks in the top 10 countries globally for mining investment attractiveness by Fraser Institute 2022.

• Advances in geological understanding and geophysical technology have yielded an exponential increase in exploration success.

• Giant Deposits – 1/3 of known sediment-hosted copper deposits contain 500,000t of contained copper with grades >1%

• Excellent infrastructure, well-developed road networks, and ongoing multi-million-dollar projects, including the North-west Transmission Grid Connection (NWTGC), aimed at providing power supply to new KCB mines. 

• 100%-ownership of highly prospective copper and silver exploration tenements in the Kalahari Copper Belt (KCB).  

• The second largest tenement package in the KCB consists of four project areas: Ngami Copper Project (727 km2 ), Kitlanya East (1,359 km2 ), Kitlanya West (1,900 km2), and Okavango (1,362 km2). 

• Along strike, and adjacent to, producing mining operations: Cupric Canyon’s high-grade Zone 5 Cu-Ag deposit and Sandfire’s (ASX: SFR) T3 Motheo Cu-Ag Production Hub.

Strata Investment Holdings (ASX: $SRT)

Strata Investment Holdings is based in Bangkok and currently owns around 22% of Cobre. This same project was managed privately by Strata Investments who spent many years getting this project into the earlier stages of exploration. Two years ago, Strata became a shareholder when Cobre acquired 100% of the site from Strate Investment Holdings. 

As Cobre’s largest shareholders, they spent around $9 million to get 22% of Cobre and Strata recently put in another $800,000, Cobre recently raised a total of four million dollars. The board of Cobre also participated effectively and Martin Holland invested $400,000 of his own capital into this placement. With directors and shareholders all participating in the funding round, it shows a certain level of confidence on the part of the board. Meanwhile, international and local institutions are equally working with Cobre to boost its capacity and ensure positive results. 

Cobre has been accepted into the BHP Xplore program, illustrating that it has strong potential on a technical and strategic level. With investors confident about its prospects and funding the capital raise, Cobre’s advances in geological understanding and its geophysical technology have yielded an exponential increase in exploration success. It is safe to say that Cobre is well positioned to find the next tier 1 discovery in Botswana, the Kalahari Copper Belt.