Critical Mineral Resources PLC (LSE:CMRS, FRA:98J) this week outlined continued progress at its Agadir Melloul copper project in Morocco, with chief executive Charlie Long highlighting strong drilling results, an upcoming maiden resource estimate and ambitions to move into production within three years.
Speaking to Proactive, Long described Morocco as one of Africa’s most attractive yet underexplored mining jurisdictions. He noted that the country ranks second in Africa behind Botswana according to the Fraser Institute and said the combination of established mineralisation and limited historical drilling presents a significant opportunity for discovery-focused companies.
Long said the company’s latest drilling campaign at Agadir Melloul delivered copper intercepts averaging five metres, exceeding the company’s conservative two-metre target width. He added that the project remains at an early stage, with less than 3% of the total target area drilled so far.
According to Long, geological similarities between Agadir Melloul and a nearby 100-million-tonne deposit continue to reinforce management confidence in the project’s long-term potential. He said Critical Mineral Resources is targeting a medium-term resource of 25 million tonnes while continuing to expand drilling activity systematically. Long stated that the company already believes sufficient data exists internally to support a resource model, although an external consultant will be required to complete a formal JORC-compliant estimate. A maiden resource remains targeted for the third quarter.
Here, we take a closer look at what Charlie Long said when he joined the Proactive studio.
roactive: Charlie very good to speak with you; it's been a while since we last spoke, so for new investors what makes Morocco such an attractive jurisdiction for copper exploration and why did Agadir Melloul catch your attention?
Charlie Long: Morocco is very convenient, only around a three-hour flight, and about 2.5 hours to site from Agadir. It has long been regarded as underexplored despite extensive mineralisation across the country and relatively limited drilling activity. Morocco is ranked as the number two mining jurisdiction in Africa after Botswana according to the Fraser Institute rankings, so it is a great place to operate.
Proactive: Your first assay results from Agadir showed copper intercepts averaging five metres, well above your two-metre target. What does that tell you about the scale and quality of the project?
Charlie Long: These are the first results from this year’s drilling campaign, although the company also completed drilling last year and achieved average widths above two metres then as well. The company is remaining conservative with its assumptions while recognising the mineralisation could be thicker. Only a tiny portion of the target area has been drilled so far, and there is a nearby mine with similar geology containing around 100 million tonnes. The company’s medium-term target is 25 million tonnes, and management is confident the drilling points toward a meaningful resource, while continuing to advance the project step by step.
Proactive: You have drilled less than 3% of the target area and are targeting a maiden resource by the third quarter. How confident are you in that timeline?
Charlie Long: The company is very confident. An internal geologist already believes there is sufficient information to model a resource internally, but an external consultant is required to complete a formal JORC resource estimate. The amount of drilling completed and the success rate between now and then will determine the ultimate size of the maiden resource.
Proactive: Sedimentary copper is described as a hot sector globally but remains underrated by UK investors. Why is that?
Charlie Long: Long said many UK investors tend to trade in and out of mining stocks quickly and focus heavily on short-term news flow. By comparison, investors in mining-focused jurisdictions such as Canada and Australia have a deeper understanding of sedimentary copper systems because mining forms a much larger part of those economies and investment cultures.
Proactive: You have secured additional permits and more projects under exclusivity. What does Critical Mineral Resources look like in three years if drilling continues to deliver?
Charlie Long: If drilling success continues, the company hopes to define a 25-million-tonne resource. Long also expects construction of the first mine to begin next year, potentially leading to production within three years. The initial operation would likely be modest in scale but industrial in nature, with scope for future expansion as resources grow.
Proactive: Aside from the maiden resource, what other milestones should investors watch for?
Charlie Long: Investors should look out for environmental approvals for the processing plant, metallurgy work and the broader feasibility studies, all of which the company expects to publish later this year.
Proactive: Charlie, thank you very much for joining us today.