Norfolk Metals proceeds with Carmen copper earn-in

• Norfolk Metals ticks off conditions tied to an earn-in agreement for the Carmen project 
• This paves the way for the company to acquire a 70% interest in Transcendentia
• The permitting process for drilling has kicked off and is expected in Q3 

Special Report: All conditions precedent to an earn in agreement for the Carmen copper project in Chile’s Atacama region have been satisfied with Norfolk to proceed with stage 1. 

The company will acquire a 70% interest in Transcendentia – the mining company with which it signed a binding agreement – by spending $3 million on Carmen over three years.

Conditions included the approval of Norfolk Metals (ASX:NFL) shareholders for the issue of 425,000 shares in Norfolk, required to begin the stage 1 period, and approval for the issue of the Norfolk shares under a share placement. 

Norfolk has now issued the 425,000 shares and successfully placed the $1 million capital raise, completing all required steps to commence the Stage 1 earn-in period.

Primed for copper drilling 

NFL is advancing preparations for maiden drilling at Carmen in the mineral-rich Pre-Cordillera of Chile along the regionally significant San Felix Fault and Fold System.

This belt is home to multiple copper, gold and silver deposits hosted in IOCG, Manto-style copper, porphyry and epithermal systems, including the Relincho and Fortuna (El Morro) deposits, both of which hold proven and probable mineral reserves.

The permitting process has kicked off for Carmen and these are expected to be granted in early Q3. 

Once granted, a 5,100m RC and diamond drilling program will begin, with 3,500m dedicated to validating and extending mineralisation defined in the foreign resource estimate of 5.6Mt at 0.6% copper within the Carmen Oxide Zone.

While Carmen is currently shaping up as a copper oxide project with highly soluble mineralisation near surface, historical drilling has also flagged strong sulphide potential that Norfolk plans to follow up.

The company is targeting a low-cost, high-margin copper heap leach operation that could ultimately deliver copper cathode straight from the mine gate.

Encouraging long-term copper demand 

Although copper prices fell to $US4.80 per pound today, down 0.79% from the previous day, over the past month the price has risen 4.31% and is up 6.81% compared to the same time last year. 

Industry experts maintain that the looming copper supply shortage remains a key underlying theme, with demand continuing to grow, particularly from grid infrastructure and electric vehicles. 

This sets a favourable backdrop for junior copper explorers such as Norfolk, whose Carmen project is in Chile, the world’s leading copper producer.

The project is just 16km from major copper development projects such as Relincho and El Morro plus the proposed water infrastructure recently announced by Hot Chili (ASX:HCH) runs past NFL’s doorstep.

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.