Proactive Investors - Run By Investors For Investors

Tethyan’s Serbian upside is about to be put to the drillbit test

Tethyan is zeroing in on a potential copper porphyry target at Suva Ruda in Serbia
Tethyan’s Serbian upside is about to be put to the drillbit test
Suva Ruda is highly prospective for copper

Drilling at Suva Ruda is set to get underway by 26 October, according to Peter Mullens, chief executive of Tethyan Resources PLC (LON:TETH).

The news comes as Tethyan initiates an £890,000 fundraising to help it accelerate the pace of work on its portfolio of Serbian copper-gold projects.

The idea is to place around 30 mln new Tethyan shares with Canadian investors and a further 10 mln shares with UK investors and to use the money to make further progress at Suva Ruda, and at Gokcanica, Tethyan’s second, less advanced project.

The first bit of work is already in the bag, following the signing of the option over Suva Ruda back in September. Tethyan has completed a programme of geological mapping and soil sampling that was designed to zero in on potential drill targets.

That’s now been done, and the news that a new zone of mineralisation has been identified as part of this process was seen as a real boon by investors, who boosted the company’s share price by 5% to 2.5p on 18 October.

A second zone targeted an area about which significant data is already known, but this too delivered positive results, and now sets the company up well for the rigs to begin turning within the next couple of days.

And it could be a real game-changer for Tethyan if it lives up to expectations. Both First Quantum and Euromax Resources have been active in this area, but Mullens points out that previous exploration work was done only to relatively shallow depths.

And if, as Tethyan is now hypothesising, Suva Ruda is in fact a copper porphyry of some size and scale, then it’s likely that mineralisation will run much deeper.

“We’re optimistic the grades will improve at depth,” he says. And he cites recent success from other copper companies as one reason why the market may well support that view.

Solgold’s (LON:SOLG) mineralisation runs down deeper than 1,000 metres at Cascabel, and that company is now worth several hundred million dollars, after two majors bid up the price of the latest funding.

And Reservoir Minerals, now part of Nevsun, has also had a major success in Serbia itself, with the discovery of Timok project.

So with £500,000 already in the bank, new money coming in, and a growing appetite in the market Tethyan looks likely to gain some real traction as the exploration cranks up.

Approximately 2,500 metres of drilling is planned before Christmas. But that’ll be just the start.

“Depending on what we get we’ll then do a bigger programme,” says Mullens.

By the spring of next year it’s likely that Tethyan will also be ready to drill Gokcanica, following an ongoing programme of stream sediment sampling.

All told, it should be a very busy period for Tethyan, but it may not end there.

For one thing, the question of how to fund Suva Ruda and Gokcanica into and beyond next year is likely to recur.

“We have two choices,” says Mullens. “One would be looking for a mid-tier partner. But for preference we’d like to drive our own bus. Let’s see what the results bring first.”

So there’s that. And there’s also the possibility of other projects emerging in what, all told, is a country that remains relatively under-explored.

Gokcanica and Suva Ruda both occur on highly prospective ground that forms part of a total Tethyan land package of 197 square kilometres.

This ground, says the Tethyan literature, is highly prospective for the discovery of epithermal and porphyry copper, gold and polymetallic mineralisation. It will be interesting to see how it all plays out. 

View full TETH profile View Profile

Tethyan Resources PLC Timeline

February 26 2018

Related Articles

November 27 2017
Goldplat's recovery business provides a cash-generating foundation for future growth
December 22 2017
The plan in 2018 is to deliver not one doré bar, but a 130,000 ounces of the yellow metal
May 22 2018
New money allows Scotgold to proceed with long-awaited redevelopment of Cononish

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use