Norfolk Metals enters Chilean copper earn-in

Norfolk Metals enters binding earn-in and option agreement to acquire 100% of the Carmen copper project
Drilling highlights include oxide results of 41m at 2.46% Cu from surface and sulphide intercept of 69m at 1.37% Cu from 43m
Transcendence Mining’s Jason Greive and David Fowler appointed as project operators bringing extensive expertise with the right to elect a board member to Norfolk
Capital structure favourable with minimal shares vested until earn in completion as achieved and elected by Norfolk

Special report: Norfolk Metals is breaking into the world’s leading copper producing nation through an earn-in agreement to acquire the Carmen copper project.

The 46.6km² concession is 82km from the mining centre of Vellenar in Chile’s Huasco province within the Atacama region, renowned for its vast copper deposits including Escondida, the world’s largest copper mine by reserve.

With an historical NI 43-101 copper oxide resource of 5.6Mt at 0.6% copper and multiple drill-ready targets on more than 7.5km of untested strike, Norfolk Metals (ASX:NFL) believes the project is a transformational opportunity.

Adding to its appeal, test work demonstrated high copper solubilities of up to 82% within the oxide ore zone, which is conducive to proven and cost-effective heap leach processing methods.

Target locations to be tested this year

The Carmen copper project spans 46.6km² in Chile, the world’s top copper-producing nation. It features a historical oxide resource from surface open in all directions and substantial exploration potential across 7.5km of untested strike length.

High-grade results outside proven resource showcase dual mineralisation opportunities including 41m @ 2.46% Cu from surface (oxide) and 69m @ 1.37% Cu from 43m (sulphide).

Having both oxide and sulphide mineralisation in a copper project offers two distinct paths for value. Oxides, near the surface, can be processed cheaply and quickly via heap-leaching — lower capex, faster cash flow.

Sulphides, typically deeper, often hold larger reserves and can be mined later via flotation, promising longer-term, higher-volume output but with higher costs.

The transaction will see Norfolk earn-in and subsequently acquire CCP with benefit of millions of dollars of exploration data, drill core and metallurgical test work which has already assisted in the definition of multiple drill-ready target locations.

Carmen copper project potential. Pic: NFL

Rapid near-term expansion

NFL executive chairman Ben Phillips said the company had secured a highly prospective, scalable, low risk, value accretive and easily accessible project in one of the most prolific copper producing areas of the world.

“Outside of the known Carmen resource area, which is open along strike and at depth, there is also 7.5km of highly anomalous untested strike length across the concession package hosting numerous compelling drill-ready targets,” he said.

“The project area is known to host both oxide and sulphide mineralisation as evidenced by past drilling intercepts.

“With further drilling we are aiming to rapidly expand the oxide resource in the near term, which is conducive to heap-leaching and amenable to efficient and cost-effective development.”

Transcendence Mining founders Jason Greive and David Fowler are the option vendors and nominated project operators of the CCP. Jason, David and their team bring a wealth of exploration, metallurgy, engineering, studies, financing and development experience to Norfolk.

The newly appointed general manager exploration, Alex Raab, brings over 30 years exploration and resource development experience in Latin America and North America.

Transcendence have the option to elect a board seat to Norfolk which will further solidify the partnership in the planned exploration at the CCP.

Greive’s recent roles include Evolution Mining as general manager of the Cowal Gold Mine (NSW) and Red 5 as chief operating officer.

Fowler was the CEO of Finders Resources that operated the 20,000-tonne per annum Wetar copper heap leach project.

As the CFO at Merdeka Copper Gold, he has been instrumental in funding the growth of the group from a single asset gold project into a multi-commodity business with an enterprise value of US$9 billion in 2024. He has led debt & equity funding processes to raise more than US$400 million in equity and US$4 billion in debt during this time.

What now?

NFL and Transcendence will form a joint operating committee to oversee and coordinate exploration programs over the earn in period.

Preparing a maiden drill program at Carmen, expected to consist of approximately 40 drill pads totalling around 4000 metres. This program will include both reverse circulation and diamond drilling to target high-priority areas

Rapidly expand the existing copper oxide resource with a new JORC resource by drilling untested strike lengths (over 7.5km) and following up on high-grade oxide and sulphide intercepts

Firm commitments for a $1m capital raising to support the transaction have been received and will help fund the high-priority drilling and work programs, subject to shareholder approval.

This article was developed in collaboration with Norfolk Metals, 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.