Materials

Cobre’s share price soars as investors eye launch of Botswana copper drill run

Wed 06 Jul 22, 1:45pm (AEST)
A technician holds a piece of ore with copper mineralisation present
Source: File photo

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Key Points

  • Cobre is trading up 28% in lunchtime trades to 5c
  • Dramatic movement comes as Botswana drilling program launched
  • Cobre is hunting for copper, eyeing coincidence of gold and silver

Cobre Limited (ASX:CBE) has had a morning full of positive momentum as investors flock to pick up shares at the start of exploration drilling for copper in Botswana. 

In the last leg of lunch hour, the company’s share price is up nearly 30%. 

Investor interest in copper resources remains strong with prices remaining high and tipped to increase.

Bullish sentiment for materials needed in batteries, and decarbonisation and electrification initiatives all capture copper as a lucky bystander.

In short: none of the above can take off without copper. Copper stocks have come to the fore at the same time lithium has skyrocketed along with other rare earths (and nickel.) 

A map locating the presence of the Ngami project along the copper belt; Sandfire Resources' project located to the south
A map locating the presence of the Ngami project along the copper belt; Sandfire Resources' project located to the south

What’s going on at Ngami? 

Early stage exploration drilling at Ngami is targeting the northern margin of Botswana’s Kalahari Copper Belt (KCB) geology. 

The four hole program will be executed with a diamond drill rig following up on evidence indicating copper mineralisation extends beyond logged dimensions. 

Two separate historical drill targets have turned up evidence of copper and silver at the northern end of the KCB. 

Cobre notes that portion of the formation remains relatively unexplored. 

World-class deposit 

Company management notes the KCB is a highly sought after bit of acreage, and hopes to see it turn into a new copper district.

“The KCB is one of the most prospective copper belts world-wide,” Executive Chairman Martin Holland said. 

“We are thrilled to be recommencing exploration work with our Africa-based technical team and look forward to providing updates.” 

Prospective acreage still to be explored 

Kalahari Metals also holds another licence nearby the northern KCB, called Kitlanya West. 

Kitlanya is immediately adjacent the northern KCB at Ngami and boosts Kalahari’s total licence package to an impressive 500km worth of prospective target area.

While mineralisation across the entire area remains to be proven, the one clear thing is that investors are paying close attention. 

One month performance for Cobre is up 31.5%; and over the last week, that figure sits at 66.6%. 

Cobre's three month charts clearly reflect an upward swing in interest from investors since late June
Cobre's three month charts clearly reflect an upward swing in interest from investors since late June

 

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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. Email Jon at [email protected].

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