Has Cobre (ASX: CBE) hit the copper jackpot?

Even in bear markets, investors love a good hit and that’s just what Cobre (ASX: CBE) has served its shareholders this morning.

The explorer reported a significant new copper intersection at its Ngami Copper project. But is it on to something or will it just be a one hit wonder? 

 

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Who is Cobre? 

Cobre is a copper explorer with projects in Western Australia and Botswana. It’s Ngami project, where the positive news came from, is located in the latter jurisdiction.  

Cobre listed in early 2020 at 20 cents a share and after 18 months of trading roughly at its listing price, shares retreated in the bear market of 2022. But after hitting 2 cents last months, shares gradually recovered over July. And this morning, shares went as high as 10.3c – more than double yesterday’s 4.9c close.   

 

 

 

Cobre has a big copper hit 

This morning, Cobre told shareholders the first diamond drill hole intersected significant visual copper mineralisation. It did not report the exact grade, but noted that the mineralisation was visual (meaning significant enough to be seen) and it extended roughly 59m downhole. 

Despite not announcing the grade, shareholders are excited because this is just the start of the current drilling program. It is the first of 57 ranked targets across the company’s license holding.  

 

Good result, but wait for the next hole 

But as is a risk with all resources exploration companies, Cobre could be a one-hit wonder. We think investors who were not shareholders of Cobre already would be safer to wait to buy in until results from the next hole are announced. 

The next hole will be crucial as it will drill a further 1km to the southwest to test the strike continuity of mineralisation. In other words, if copper is anywhere near as prevalent 1km southwest of the initial hole.  

Nonetheless, this result is significant because of the high extent of copper mineralisation (nearly 60m) and because it is early stages in the current drilling campaign. 

 

 

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