• Cobre Ltd. (ASX: CBE) share price has rallied on the back of new drilling in the Ngami Copper Mine (NCP)

• Preliminary research reveals strong potential for high-grade copper and silver 

• Metal prices are rallying

• Botswana is the top mining jurisdiction in Africa and 7th in the World

Cobre Ltd. (ASX: CBE)  has begun drilling in the Ngami Copper Mine (NCP) with strong prospects for high-grade copper and silver. In the past when the company announced drilling, its share price rallied. This time around a bullish pattern appears to be taking hold and exploration in the Ngami Copper Mine (NCP) will ensure that the share price holds a bullish pattern over the medium term. 

Cobre (ASX: CBE) owns 100% of its tenements and is strategically located in Botswana, which is the top jurisdiction for mining in Africa and 7th in the World. Botswana has toppled Morocco to return on top as Africa's most investment-attractive jurisdiction in mining according to the Fraser Institute. The rating was derived from evaluating policy factors such as regulation, business environment, taxation regime, labor laws, political stability, and quality of the geological database. The ranking equally includes skill availability and community development conditions. The share price has reacted as a response as fundamentals suggest a potential upside over the medium term. 

On April 2nd, COBRE Limited (ASX: CBE) formed a bullish pin bar, signaling a potential reversal. This was confirmed on April 3rd with a strong bullish candle. The closing above the 200-day Simple Moving Average on April 4th indicates a bullish trend, setting the stage for potential significant long-term gains.

With a market capitalisation of $23.51 million, the advanced exploration in the Ngami Copper Project (NCP) targets copper-silver mineralisation with several encouraging drill intersections from the Comet target as well as surrounding targets. There is strong potential for trap sites in the over 100km of prospective Ngwako-Pan/D’Kar Formation contact for traditional limb-based mineralisation. Cobrex Limited (ASX: CBE) experienced a "Golden Cross" formation today, with the 50-day moving average crossing above the 200-day moving average. This technical event often signals a bullish trend, suggesting potential upward momentum and a favorable outlook for the stock in the near term.

On April 4th, Cobre Limited (ASX: CBE) closed above the upper boundary of a parallel channel, indicating a breakout. Historical patterns suggest that this breakout could lead to significant gains, potentially around 200 percent or more if past behavior repeats itself.

Upside for Cobre Ltd. (ASX: $CBE).

Whenever Cobre started drilling new wells, its share price reacted positively and it is plausible to think that its environmentally friendly methods and approach could create a new floor for the share price. The appreciation in the share price reflects past trends, but this time new methods, the choice of jurisdiction, and potential high-grade minerals underpin the rally. 

Cobre is poised to benefit from the rally in metal prices with both copper and silver gaining significantly on a year-on-year basis, driven by demand for metals to power the energy transition. In March 2024, Spot silver prices rose 0.2% at $24.36 per ounce and Futures contracts rose 5% in the week ending March 2024. At current prices, silver prices were $22.92 in January and $22.66 suggests that silver prices have risen from $21.92 one year ago. Although prices fell between January and February 2024 by about -1.13% last month, they have risen on a year-on-year basis by about 3.36%. Silver could comfortably reach $24 as gold prices rally and spread to the dual-use metal. Inflation will keep pressure on gold as investors try to hedge against high inflation, and this will likely spread to silver, which tends to rally later than gold and is considered gold’s poorer cousin. 

Even so, this presents a potential upside for Cobre Ltd. (ASX: CBE) which stands to benefit from a supportive metal backdrop as it begins drilling to identify potential sites for exploration. Survey results reveal a strong potential for high-grade minerals and diamond drilling could allow up to 95% recovery rates under the right conditions. Cobre appears to be a good buying opportunity for investors looking for exposure across good mining jurisdictions in Botswana, Africa and the demand for metals is poised to rise as countries transition away from fossil fuels towards more sustainable economies.