CMR signs ‘key’ Morocco copper-silver earn-in

Critical Mineral Resources plc has broadened its Moroccan portfolio with a 60% earn-in to a sedimentary hosted copper-silver deposit, expected to become a “significant new discovery”.

SCALE

A diamond drill rig is due to leave Canada next week ahead of drilling starting during the third quarter at the site in Central Morocco.

“In some areas there is widespread surface mineralisation, allowing for open pit mining during the earlier stages of the mine plan,” said CMR.

“Maximum depth estimated to be 50m, which should ensure straightforward and productive exploration drilling using the company’s new multi-power HD discovery diamond rig.

“The shallow nature of the deposit should also ensure relatively low reserve development and mine operating costs.

“The shallow nature of the deposit should also ensure relatively low reserve development and mine operating costs.”

The company anticipates to fast track production to 1,000 tonnes per day copper flotation while at the same time delineating a “large-scale strategic resource”.

An initial exploration will target 150,000 to 200,000 tonnes of contained copper at 1.2% copper equivalent.

CMR has also received the second tranche investment of £1.325 million, of which £825,000 comprises 56,896,552 new ordinary shares, issued at 1.45p per share, conditional on approval.

The balance of £500,000 is via a loan instrument, convertible at 1.45p with 5% accruing interest.

Chief executive Charlie Long added that the company had worked towards the agreement for two years.

“Whilst we have optioned, promoted, explored and been genuinely excited by two or three other copper-silver projects during this period, our key target has always been this.

“And by some margin.

“The investment, underpinned by the opinion of the anchor investor’s independent mining expert, points to the quality of the project and its overall potential.

“Their investment represents validation of the quality of the deposit and its potential scale.”