Arc Minerals Limited (AIM:ARCM) is expected to deliver more good news from its exploration project in Zambia, where partner Anglo America is currently drilling.
Paul Smith, analyst at Zeus Capital, has described drill results out today as “impressive”, whilst noting “significant high-grade copper” and pointing out that the mineralisation can be considered mineable.
“Of the six holes drilled we are still waiting for assays from three so we expect more good news to come," analyst Paul Smith said.
“This is an early stage of an intensive copper exploration strategy and we are encouraged today by the results in the RNS.”
Arc earlier today released the drill assay results, and executive chairman Nick von Schirnding connected with the Proactive studio.
Arc is set to retain a 20% stake in the project once Anglo American has completed its earn-in programme (which sees it acquire 70% by spending $88.5 million on the asset).
The earn-in brings Anglo American back to this territory, as Smith today highlights.
“Built in 2012, Sentinel was discovered on exploration licences formerly owned by Anglo American the first time it operated in this part of Zambia and was discovered on an anomaly which not deemed as high a priority as those being drilled by the Anglo/Arc joint venture today," Smith added.
“To put it in context, Sentinel produced 231kt of contained copper in 2024 at a cash cost of <$2/lb – plenty of profit margin.”
With a ‘fair value’ estimate of some 5.8p, Zeus Capital sees substantial upside to Arc’s current market price of just 1.6p.
“The JV licences are in good hands being advanced by Anglo’s expert exploration team and supported by funding beyond that easily obtained by the typical junior explorer in such restricted capital markets,” analyst Smith added.