logo-loader

Argonaut Resources shares run higher on Olympic Dam comparison

Published: 05:25 21 Sep 2017 BST

Map of South Australia showing nearby major mines
Final approvals are expected to be gained this calendar year

Argonaut Resources (ASX:ARE) shares are trading 55% higher over the past month as interest from investors continues to build around the Torrens Copper Project located in South Australia.

The project hosts a very large iron-oxide, copper, gold (IOCG) target and is the company’s primary focus.

The sheer size of the anomaly is impressive given it is larger than the nearby multi-billion-dollar Olympic Dam mine, one of the largest copper deposits in the world.

In the event of discovery, there is scope for a very large tonnage deposit and successive discoveries.

Final access approvals are nearing completion and expected this year, which will allow for drilling to commence soon after.

Torrens Copper Project

The project consists of three exploration licences, the primary licence is held in joint venture with Aeris Resources (ASX:AIS) who holds 70% alongside Argonaut’s 30% operating interest.

The confirmed IOCG target consists of a very large 130 square kilometre broad, intense geophysical anomaly that shares similarities to Olympic Dam.

Within this larger anomaly, there are 10 individual target zones, which creates multiple discovery opportunities.

Each target is large enough to host a world-class deposit bigger than the nearby US$1 billion Carrapateena mine under development.

The project lies within a prominent geological address in South Australia that hosts major IOCG deposits including Olympic Dam, Carrapateena and Prominent Hill.

The right time for a copper discovery

With the copper price recovering more than 50% from its 2016 low, the commodity is now thought to be in a sustained upswing.

The copper market is seen to be in a structural deficit with demand growth exceeding new supply.

The ongoing demand growth is being supported by urbanisation trends such as the fact that electric vehicles require much more copper than conventional cars.

Project portfolio

Argonaut has an international exploration focus spread across multiple commodities.

Its project portfolio includes:

- Torrens Copper Project, South Australia;
- Higginsville Gold Project, Western Australia;
- Lumwana West Copper-Cobalt Project, Zambia;
- Crescent Lake Lithium Project, Canada; and
- Kroombit Zinc Copper Project, Queensland.

Upcoming events

Upcoming potential catalysts for Argonaut include:

- Sept-Oct 2017: Drilling at Higginsville Gold Project;
- Dec 2017: Final access approvals expected for Torrens Copper Project;
- Dec 2017: Announcement of exploration program scope considering a 30 hole program over 16-18 months;
- Dec 2017: Finalisation of exploration program funding; and
- Jan 2018: Drilling expected to commence at Torrens.

While Argonaut is the operator of the joint venture, any expenditure will be shared pro-rata.

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

1 hour, 52 minutes ago