Given that we are still in the exploration phase ... results once again exceeded all our initial expectations, showing significant, relatively shallow, high-grade intersections of copper as well as good continuity of mineralisation.
Nick von Schirnding, executive chairman
What Arc Minerals does
Arc Minerals Ltd (LON:ARCM) is an AIM-listed explorer focused on copper, cobalt and gold projects in Africa.
What it owns
Assets include the Zamsort copper-cobalt project in Zambia, the Casa and Misisi projects in the Democratic Republic of Congo and the Sturec gold project in Slovakia.
How it is doing
Assay results from the latest hole at Cheyeza again exceeded all initial expectations, said Nick von Schirnding, Arc’s executive chairman.
The hole showed significant, relatively shallow, high-grade intersections of copper as well as good continuity of mineralisation.
One section showed copper at a grade of 2.31% over a width of 13m.
“Whilst we continue to explore this target, we are also continuing our soil sampling and geological interpretation of the other large targets on our tenements and look forward to releasing results of our next hole shortly," said von Schirnding.
Previous holes at Cheyeza had already indicated copper near the surface in good quantities.
This latest hole was the fifth in the programme.
Hole 4 showed significantly higher copper grades but these are being verified before being released.
The first hole had already indicated 3.94m at 0.72% copper ,while in the second there was 1.05% over 25m, which included some bonanza grades.
Cheyeza target is estimated to be around 3,000m by 800m in size.
What the broker says
Drilling so far has been relatively shallow at 70-100m deep, which leaves plenty of scope for further mineralisation to be discovered at greater depth said house broker SP Angel.
The broker is a big fan of Arc and believes it might have stumbled upon a major copper discovery at Cheyeza.
“The potential value of a significant copper discovery is likely to be a multiple of the current market capitalisation with the market recognising the value of the discovery on further drill results and resource estimation.
Discoveries that have led to producing mines in the locality include Sentinel, and Lumwana.
Arc Minerals has discovered several large new anomalies on the Zamsort project.
The two most prospective are Cheyeza and Lumbeta.
Assay results from more shallow holes at Cheyeza to confirm potential Deeper drilling to test depth of mineralisation
Arc Minerals sold its 18.48% stake in Eritrea-focused copper explorer Andiamo Exploration for US$250,000 in February.
At 4.65p, the company is worth £33mln.