Eagle Mountain has full exposure to copper upside at Oracle Ridge
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Eagle Mountain has moved to full ownership of the Oracle Ridge project, increasing its resources by 81Mlb of copper and granting full exposure to its exploration potential.
The acquisition of Vincere’s 20 per cent stake in the project in Arizona has also dissolved the joint venture, which will simplify operations and administration.
Eagle Mountain (ASX:EM2) chief executive officer Tim Mason says the acquisition is a highly value accretive transaction given the surging copper prices due to strong global demand and supply limitations.
“The acquisition of Vincere’s 20% interest in Oracle Ridge increases the company’s JORC resources by 81 million pounds of contained copper, but more significantly provides full exposure to the exploration potential at the project,” he added.
“This potential includes multiple high-grade drilling intercepts outside the JORC resources along with large scale prospective areas underneath the Leatherwood granitic intrusive at OREX.
“The acquisition also enables a much simpler structure to progress Oracle Ridge through all phases leading to production.”
Vincere received 10 million EM2 shares as consideration for the acquisition, giving it a 5.2 per cent stake in Eagle Mountain.
Oracle Ridge sits in an established copper district, with 18km of pre-existing underground workings close to its existing resources and kitted out with air, ventilation and water access and currently disconnected electrical reticulation services.
It was last mined in the 1990s and acquired by EM2 in November 2019.
Recent drilling by the company has highlighted the potential for further copper resources with results such as 12m at 3.47% copper and 50.22g/t silver at just 70m below surface and 40m west of the existing resource.
Despite this, Eagle Mountain believes it has not found the source of mineralisation at the project.
As part of its efforts to address this, the company expects to mobilise a second diamond drill rig to site by May 10.
The combination of the new rig and the transition to full-time drilling will lead to a three-fold increase in drilling activity from June.
This article was developed in collaboration with Eagle Mountain, 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.