Arc Minerals Limited (LON:ARCM) shares jumped in mid-morning trading Wednesday after it said it had intersected “significant” copper mineralisation at the Kalaba Cobalt-Copper project in the Zambia copperbelt.
In an update for the project, the mining and exploration firm said higher copper grade mineralisation had been intersected in the sulphide zone to the north of the Kalaba open pit approaching 1% copper and 0.1% cobalt.
READ: Arc Minerals reveals significantly higher grade cobalt results from shallow drilling at Kalaba Cobalt-Copper Project oxide portion
The company added that further high-grade cobalt and copper oxide mineralisation for the commercial scale and demonstration (CSD) plant had been intersected at the surface, with disseminated mineralisation down to 115 metres below the surface.
Highlighted drill holes included:
• KDD20 – 7.12m at 0.87% copper and 0.1% cobalt
• KRC020 – 8m at 1.25% copper and 0.19% cobalt
• KRC021 – 115m at 0.67% copper equivalent
Arc added that the technical team had completed the front end of the CSD plant comprising two crushers, screen, a ball mill, and conveyors with the section capable of processing 10,000 tonnes per month.
The back end of the plant is expected to be completed in several weeks with commercial production to start thereafter.
Nick von Schirnding, executive chairman of Arc, said that the results were “very encouraging” as they suggested that in the sulphide zone to the north of the pit there appeared to be “increasing width and grade to the copper mineralisation in a north-westerly trend”.
Schirnding also said that the drilling had confirmed “sufficient oxide feed” for the CSD plant together with existing stockpiled material, adding that capital expenditure for the plant had come in under budget at US$300,000.
Shares were up 4.5% at 2.9p.