Demetallica tracking towards high-impact October resource upgrade

Mon 12 Sep 22, 10:46am (AEST)
An image of an outback sealed road in remote Australia, Northern Territory
Source: Unsplash

Key Points

  • Next month, Demetallica will update the JORC resource estimate for copper and gold at its Jericho play in QLD
  • Recent findings mineralisation extends below 400m will be a significant factor in boosting the project’s geo credentials
  • Assay results for a further 13 drillholes remain pending

Demetallica (ASX:DRM) has posted the latest RC assay results for copper on-site its Jericho project in QLD, underscoring the likelihood of a significant upcoming MRE resource in October. 

Mineralisation of copper at the project has also been shown to extend below a depth of 400m, where the current JORC resource cuts off; as well as at a number of shallow deposits on-site. 

While that 400m depth confirmation is not reflected in today’s results, the company wound up a 56 hole drilling campaign, conducted by both RC and diamond rigs. 

Assay results for 13 remaining drillholes are expected to be returned to the company in the next two weeks. 

JORC upgrade to underpin open-pit 

October’s resource upgrade will see deposits closer to the surface moved from ‘inferred’ to the ‘indicated’ category, reflecting not only a higher level of geotech confidence in the acreage, but also improved prospects for bankability. 

Worth noting is that the company today claims it is strengthening its case for an open-pit copper project.

What has Demetallica found at Jericho? 

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

Today’s results pertain to the Jumbuck target, part of the J1 Lode on-site. 

Compare that to the following results from Jericho:

  • 09m @ 3.13% copper from 72m depth 

  • 08m @ 2.56% copper from 61m depth 

  • 05m @ 3.19% copper from 115m depth 

  • 6.8m @ 2.98% copper from 333m depth 

What’s so good about Jericho?

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 resource upgrade. 

The presence of high-grade copper at Jericho 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.

The shape of Demetallica's three month charts
The shape of Demetallica's three month charts
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.


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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