Cobre soars 267% in one week on massive visible copper in cores from Botswana play

Wed 03 Aug 22, 2:04pm (AEDT)
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Key Points

  • Cobre’s share price has risen 267% since last Wednesday and 592% since this time last month
  • Dramatic price increase comes as Cobre reveals to market pictures of drill cores from its Ngami Copper project in Botswana
  • The company’s shares are currently in a trading halt ahead of another announcement due Friday

Shareholders who bought Cobre Limited (ASX:CBE) shares last month are likely to be over the moon with a one month share price gain of nearly 600% on the back of unusually high copper mineralisation visible in core samples. 

The company’s Ngami Copper Project, located in Botswana, solicited great interest from the market when drilling commenced at the start of last July. At the time, the news pushed the share price up 28%. 

Last Wednesday (27 July), the company published pictures of the core samples retrieved from that drill run. 

It appears those photos alone, which show thick blue copper mineralisation, have left investors' mouths watering. 

Cobre did the same again on Monday with a second update, including further photographs of mineralisation evident in yet another batch of photos. 

That blue colouring? That's the copper mineralisation
That blue colouring? That's the copper mineralisation

Today, it has reported a third update (sans photographs), and the company is now in a trading halt with yet another announcement prepared for Friday. 

Huge potential for huge acreage at Ngami 

Cobre’s Ngami permit covers some 500km worth of target area in the Kalahari Copper Belt, in a region of Botswana the company is intending to help develop into a new African copper province. 

Part of investor enthusiasm for the copper project is no doubt also due to projected forecasts of the copper market. Everybody from BloombergNEF to the Australian Chief Economist predict copper prices to continue experiencing a rally well into the 2030s. 

Next on the cards for Cobre is an infill drilling phase to better define and locate priority target areas for future drilling. The initial results announced today are partial, with drilling on the third target ongoing. 

Currently, the company has a market cap of $29.7m and held $2.7m in cash at the end of the June quarter.

Cobre's three month charts compared to the materials index in red
Cobre's three month charts compared to the materials index in red


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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