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Demetallica hits more high-grade copper at Jericho ahead of Q4 resource upgrade

Wed 31 Aug 22, 11:24am (AEDT)
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Key Points

  • New assays at Jericho’s J1 Lode confirm high grade copper
  • New data will form part of pending resource upgrade in late October
  • Mineralisation is confirmed to extend at depth along strike over 3km in length

Demetallica (ASX:DRM) has received its latest assay results for the most recent drilling at its Jericho copper-gold project in QLD. Jericho is part of the larger ‘Chimera’ polymetals project. 

In mid-late July, the company highlighted its plans to upgrade its mineral resource estimate for Jericho in late 2022. 

Ahead of that process, the company today reports new assay results from drilling at the ‘J1 Lode’ target; part of a two corridor system at Jericho forming the J1 and J2 Lodes respectively. 

Demetallica has stuck to a strategy of running RC and diamond drill rigs together throughout its year so far; the company only listed on the ASX back in late May

All holes reported today from the J1 Lode are positive for copper and gold, though, copper mineralisation is the obvious eyebrow raiser. 

What has Demetallica found at Jericho? 

Investor information provider Undervalued Equity notes copper mineralization in concentrations greater than 1.5% reflects high grade copper. 

High grade gold, meanwhile, is classified as that over 5 grams of ore per tonne (5g/t).

Compare that to the following results from the J1 Lode at Jericho. The J1 Lode prospect contains two smaller targets, called Matilda and Jumbuck respectively. 

Matilda - RC rig

  • 10m @ 3.08% copper and 0.54g/t gold 

  • 7m @ 2.34% copper and 0.31g/t gold 

Matilda - Diamond rig 

  • 25m @ 1% copper and 0.28g/t gold 

  • 23m @ 1.24% copper and 0.29g/t gold 

Jumbuck - RC rig

  • 09m @ 2.14% copper and 0.85g/t gold 

  • 07m @ 3.57% copper and 0.72g/t gold

Resource update by late October 

Demetallica notes today it expects its new resource update for Jericho to be complete by late October. 

A new 56 drill holes of data will be incorporated into the revision. SO far, the company has sunk 152 holes for some 43,750m of drilling at the project; the company notes overall data interpretation supports mineralisation at depth along a total strike of 3.7km. 

What’s so good about Jericho?

The first assay results for Jericho came only weeks after the company first commenced trading on the ASX. By the time its ticker was live, activity was already underway on-site. 

The company has noted its current mineral resource estimate is only based on a 2.2km strike length, whereas targets across both J1 and J2 lodes comprise a total of 3.7km.

That total 3.7km potential is what will form part of the October-November resource upgrade. 

High-grade copper also stands as something to watch: Sentiment for copper’s future in the battery supply chain is firmly bullish

The Australian Chief Economist, alongside BloombergNEF, predicts copper prices to continue experiencing a rally well into the 2030s.

Demetallica's six month charts with underlying volume information
Demetallica's six month charts with underlying volume information
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Demetallica was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

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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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