Arc Minerals Limited (AIM:ARCM) earlier this week reported its first assay results from its joint venture with Anglo American in Zambia.
Executive chairman Nick von Schirnding joined the Proactive studio to share the details from the Mining Indaba conference in Cape Town, where he highlighted positive mineralization results and the company’s strategic plans.
Here, we take a closer look at what was said.
Proactive: Joining me is Arc Minerals executive chairman Nick von Schirnding. Nick, very good to speak with you, and you're all the way from Mining Indaba in Cape Town.
You're out with your first assay results from your joint venture with Anglo American in Zambia, and they look really positive.
Before we dig into those, could you maybe tell us a little bit about the company?
Nick von Schirnding: Arc Minerals is an exploration company with two projects, one in Zambia and one in Botswana.
We are looking for copper in both those regions, and we have found copper in both. So we're at a very exciting juncture in our short history.
Proactive: So you're out with the first assays from the Anglo JV. Those came out yesterday, and they confirm additional near-surface copper mineralization at the targets.
Take us through the highlights of the assays.
Nick von Schirnding: We operate in the northwest of Zambia in what’s known as the Domes region. This area was once wholly owned by Anglo American, but when they left Zambia, it was acquired by others.
Today, part of the Domes region is owned by First Quantum and Barrick, which have three major operations - Kansanshi, Sentinel, and Lumwana—producing hundreds of thousands of tons of copper annually. We own the other side of the Domes region.
Today, we announced the first assay results from our joint venture with Anglo, which is tremendous news for us.
The results show 0.6% copper over a 40-meter thickness near surface, with high-grade intersects reaching 1.7% copper over eight meters.
To put that in perspective, anything at or above 0.5% copper is considered economic. Sentinel operates at 0.4% copper and still produces significant output.
Most encouraging for us is the discovery of traces of sulfides below the oxide zone, which is important because it suggests the potential for a major copper discovery.
Proactive: What are the next steps at the project?
Nick von Schirnding: Right now, it's the rainy season in Zambia, so we aren't able to drill - just like every other mining company in the region.
In the meantime, we are reviewing all our data and formulating plans with Anglo American.
Some of our drilling so far has been exploratory, aimed at understanding the geology rather than immediately targeting a major deposit.
We have 767 square kilometers of terrain with multiple interesting targets, so we expect a busy year ahead.
Proactive: Tell us more about the joint venture with Anglo American. It must be quite comforting to have such a strong partner?
Nick von Schirnding: It is indeed. For a project of this scale - nearly 800 square kilometers—you need two things: deep pockets and technical expertise.
Anglo American provides both. It took us a long time to close this deal, and in our view, it's one of the best joint ventures ever secured by a junior exploration company, certainly in the last 25 years.
Anglo acquired 70% of the project and is investing close to $90 million, with $14.5 million allocated directly to Arc Minerals.
That’s a huge benefit for us, as it ensures a stable cash flow while the majority of the funding - $75 million - goes directly into exploration.
The scale of investment underscores the project's importance for Anglo, which doesn’t enter these types of agreements often.
Proactive: You're currently at the Mining Indaba conference in Cape Town. Can you tell us about some of the conversations you're having there?
Nick von Schirnding: Yes, it’s always a great conference. You have the major mining companies, Yjunior explorers, mid-cap firms, and various government ministers from African countries with mineral opportunities. There’s also a strong presence of investors.
The attention we’re receiving here has put us on the map.
We’re getting a lot of meeting requests, including from competitors who are interested in potential collaborations after seeing our success with Anglo American.
Proactive: Finally, what’s the investment case for Arc Minerals?
Nick von Schirnding: In my view, it's a very strong investment case. We have a top-tier joint venture with one of the world's biggest mining companies, and they are putting significant funding into the ground.
Our goal is to make a major discovery, and we have the cash reserves to sustain operations at least into 2026.
Zambia offers some of the most prospective copper terrain in the world.
When people ask about our market cap - currently around £25 million - I point to examples like Greatland Gold and Solomon Gold.
These companies started small but saw massive growth after making significant discoveries. I fully expect Arc Minerals to follow a similar path.
Proactive: I hope you'll keep us updated on your progress. Thank you for speaking with us