Cohiba hits copper paydirt next door to BHP

The results from Cohiba’s recent drilling program at the Horse Well prospect in South Australia indicate it is drilling in the right area and potentially sitting on the next big IOCG deposit.

Cohiba Minerals (ASX:CHK) has released the results from two of four deep holes drilled into the prospect, with both encountering rock types typical of an iron oxide-copper gold (IOCG) environment and one returning some spectacular copper grades.

The results from hole HWDD_04 included top grades of up to 12.15 per cent copper, 2.62 grams per tonne (g/t) gold and 42.5g/t silver from 1,033m.

Other notable hits from the same hole were 28m at 0.13 per cent copper, 0.26g/t gold and 2.18g/t silver from 950m — including 0.9m at 1.85 per cent copper, 0.15g/t gold and 9.2g/t silver; and 0.5m at 2.58 per cent copper, 0.15g/t gold and 1.94g/t silver from 1,225.5m.

Horse Well is part of Cohiba’s Olympic Domain project that covers 831sqkm in South Australia’s highly prospective Gawler Craton, the world’s premier address for IOCG deposits.

Cohiba has uncovered multiple targets in close proximity to world class deposits like BHP’s (ASX:BHP) giant Olympic Dam and OZ Minerals’ (ASX:OZL) $1bn Carrapateena copper-gold mine, which began production in December 2019.

The Horse Well prospect also borders BHP’s large Oak Dam West discovery.

Cohiba hits copper paydirt next door to BHP — Proximity of Horse Well to BHP’s Oak Dam West project. Pic: Supplied.

Previous comprehensive geophysical analysis by Cohiba indicated the presence of a major “feeder” system believed to be associated with IOCG mineralisation that is comparable in size to the Olympic Dam feeder system.

IOCG systems can be tremendously large, high grade, and simple-to-process concentrations of copper, gold and other economic minerals.

During the drilling phase, Cohiba spent considerable time reviewing data and assessing the overall Horse Well region.

A number of distinct target zones were identified, and the company is planning to undertake further drilling to test for possible extensions of the existing targets as well as these new target areas.

“The results from the Horse Well drilling program, particularly drill hole HWDD_04, have provided significant encouragement that we are drilling in the right location,” CEO Andrew Graham said.

“Cohiba will expand its exploration efforts at Horse Well to further investigate these target areas as well as additional new targets that have been identified.

“We remain focused on identifying one or more IOCG deposits to generate significant value for our shareholders.

“The company is also committed to its other projects at Pernatty C and Lake Torrens and is planning to conduct programs of work at these locations as well.”

In December Cohiba added $5.3m to its coffers, via a heavily oversubscribed capital raising, taking its cash balance to $7m to expand its exploration push at the Horse Well and Pernatty C projects in South Australia, as well as investigate new IOCG targets at Lake Torrens, also in South Australia.

The new drilling results have given Cohiba strong incentive to continue its targeted exploration activities in the Horse Well area, with further deep drilling programs currently being developed.

This article was developed in collaboration with Cohiba Minerals, a Stockhead advertiser at the time of publishing.

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