Tertiary Minerals PLC (AIM:TYM, OTC:TTIRF) has confirmed that KoBold Metals, the Silicon Valley-backed exploration company, will move to the next stage of its copper exploration programme in Zambia after completing the first phase of drilling under their partnership.
KoBold, which uses artificial intelligence to identify mineral deposits, has met the Stage 1 requirements of its earn-in agreement on the Konkola West Copper Project, having drilled two holes totalling 4,153 metres, more than double the minimum commitment.
The company will now proceed to Stage 2, which involves up to $6 million of further exploration spending over the next two years.
The Konkola West project sits within Zambia’s Copperbelt, one of the world’s richest sources of copper, about five kilometres from KoBold’s Mingomba deposit, reported to be among the largest undeveloped copper assets globally, and close to the long-established Konkola and Lubambe mines.
Drilling so far has faced technical challenges, with one hole, KWDD001, reaching a depth of 2,711 metres, believed to be the deepest ever drilled in the Copperbelt.
Despite not hitting the target zone, both holes produced valuable geological information now being fed into KoBold’s regional exploration model.
A new joint venture company will be formed to manage the project, with initial ownership stakes of 39% for Tertiary Minerals Zambia, 51% for KoBold’s local subsidiary, and 10% for Mwashia Resources, Tertiary’s Zambian partner. If KoBold completes the Stage 2 spend, its share will rise to 70%, while Tertiary’s will fall to 20%.
Richard Belcher, managing director of Tertiary, said: “We are delighted that KoBold has completed Stage 1 of the Earn-In Agreement requirements and has opted to proceed to Stage 2, despite the technical drilling challenges in this groundbreaking exploration programme.
"This marks a major milestone not only for the project but for the collaboration between our respective companies.”
Mfikeyi Makayi, chief executive of KoBold Metals Africa, said the data from the first two holes would help guide future drilling plans.
The project is part of Tertiary’s broader focus on energy transition metals, with operations in Zambia and Nevada.
The company said its partnership with KoBold, whose backers include Bill Gates and Jeff Bezos through Breakthrough Energy Ventures, limits its capital risk while preserving upside exposure to any future copper discovery.