Comet Resources enhances copper exposure by completing acquisition of Northern Territory projects

Comet Resources Limited (ASX:CRL) has finalised due diligence and completed the acquisition of a portfolio of highly prospective copper assets from Bath Resources Pty Ltd in Australia’s Northern Territory, with added gold-zinc-silver-lead. Assets included in the acquisition are Oonagalabi Copper-Zinc Project, Paradise Well Copper-Gold Prospect and Silver Valley Copper-Gold-Silver-Lead Prospect. The total combined area of these assets is more than 840 kilometres. At Oonagalabi the best intersections from historical drilling include 36.6 metres at 1.0% copper and 1.7% zinc from 1.5 metres, 5 metres at 1.26% copper and 1.22% zinc from 70 metres, 6 metres at 0.9% copper from 102 metres and 14 metres at 0.7% copper from 148 metres. Rock chip samples from Paradise Well returned up to 8.9% copper and 2.2 g/t gold while Silver Valley rock chip samples returned 554 g/t silver, 20% lead, 11.9% copper and 2 g/t gold. “Great time to add portfolio” Comet Resources managing director Mathew O’ Kane said: “With copper prices recently touching records highs, it’s a great time for us to add this portfolio of both advanced and early-stage copper, gold and base metals targets to our existing copper exposure. “Being located in Australia, a Tier 1 mining jurisdiction, they complement our existing copper and base metals project at Barraba in NSW and provide us with further exposure to the copper upside. “Industry analysts believe copper prices will continue to strengthen as a result of increased global infrastructure spending and the transition to clean energy. “We look forward to getting onto the ground in the Northern Territory shortly to review the projects and make plans for the commencement of field exploration activities.” Surge in copper prices Copper prices have been increasing due to an increase in demand as a result of global efforts to reduce fuel emissions and from the generation of renewable electricity, combined with the recent lack of development of major new projects and lack of new supply. Copper is not only an important part of the batteries used in battery electric vehicles (BEV) but is also used extensively in the electric motors that drive the wheels of BEVs. As per the UBS estimates, a BEV will require on average 95 kilograms of copper while traditional internal combustion engine vehicles need only 25 kilograms. Copper is also used intensively in the generation of electricity from renewables, such as solar and wind and government spending initiatives, such as the recently approved US COVID-19 relief bill of US$1.9 trillion, will also generate demand pressure for copper. Oonagalabi Project The Oonagalabi Project exploration licence and exploration licence application contains around 1.7 kilometres of outcropping copper, zinc and lead mineralisation, hosted in anthophyllite-cordierite and forsterite marble sitting within the Strangways Metamorphic Complex. The mineralised Oonagalabi formation represents a very similar geological setting as other known copper deposits in the region, including KGL Resources Ltd’s (ASX:KGL) Jervois Copper Project, which is host to a 20.97 million tonnes JORC resource. According to the company, there is the opportunity through methodical exploration, utilising stratigraphic/structural mapping, combined with ground geophysics, to target primary mineralisation of potential higher metal tenor. Paradise Well The Paradise Well Copper-Gold Prospect exploration licence application sits around 10 kilometres south of the Oonagalabi exploration licence and covers around 250 square kilometres. Two prospects have been identified on the tenement through historical rock chip sampling programs which returned copper grades of up to 8.88% copper (Manny Prospect) and copper/gold rock chips of 6.24% copper and 2.15 g/t gold (New Paradise Well Prospect). Numerous outcropping copper oxide locations are known across the tenement from previous work but have never been tested with modern exploration. Silver Valley The Silver Valley Copper-Gold-Silver-Lead exploration licence application is about 300 kilometres north of the Oonagalabi Project exploration licence. Four outcropping lead/silver-bearing quartz veins, which have been worked by historical pits and shafts, are present within the tenement. Key prospects in the licence include the Chablo Prospect, which is prospective for lead, silver, copper and gold. Terms of acquisition The agreement allows for the acquisition of 100% of the portfolio of tenements from Bath, which is not a related party of the company nor are they a shareholder in the company. The key terms of the acquisition are: The company will pay Bath Resources a non-refundable deposit of $50,000 to secure an exclusive right to acquire the sale shares; The exclusivity fee is to be paid into Bath Resources nominated bank account within five business days after execution of the agreement ; The company will pay Bath Resources $50,000 upon completion of the agreement; Comet will issue shares to the value of $450,000 to Bath Resources based on a price of $0.025 per share or the 20-Day VWAP, upon completion of the agreement;  The company will issue shares to Bath Resources to the value of $200,000, payable 12 months after the completion of the agreement; and The company will issue shares to Bath Resources to the value of $200,000 on the delineation of the maiden JORC resource of no less than 5 million tonnes at a copper equivalent of 1% or greater.