Published On: April 23rd, 2024
Figure 1: Terra Metals Limited
GCX Metals Limited’s shareholders have approved the proposal to change the Company’s name to Terra Metals Limited. This rebranding isn’t just a cosmetic alteration; it embodies the Company’s forward-thinking vision. Terra Metals Limited (ASX: TM1) (Terra Metals or the Company) is an exploration company primarily focusing on developing a suite of critical metals projects across Western Australia. The Company owns its flagship asset, the Dante Copper-Platinum Group Element-Gold-Nickel Project, in the West Musgrave region.
The West Musgrave region in Western Australia is known for its significant copper deposits. One notable Project in this region is BHP’s $1.7 billion Nebo-Babel Project. The region’s strategic location, mineral wealth, and existing infrastructure position it as a key player in Australia’s mining sector
Copper is one of the futuristic metals that is mandatory for a clean and green future. Global digitalisation, electrical vehicles (EVs) and renewable power are key sectors that will push future copper demand. Russia’s Nornickel predicts a cumulative growth of 20% by 2035. The global copper demand will rise to 30 million metric tons annually by 2035, up from 24.8 million metric tons in 2022.
Figure 2: Copper Price Chart
Mr. Robert Friedland, the billionaire founder of Ivanhoe Mines, forecasts a potential increase in copper prices to $9,500 a metric ton by the end of 2024. This bullish call is supported by lower interest rates and a ramp-up in demand from China. Terra Metals is expediting progress at its key asset, Dante Copper-Platinum Group Elements-Gold and Nickel asset.
Terra Metals’ Lucrative Project Portfolio
The Dante Copper-Platinum Group Element-Gold-Nickel Project was acquired 100% by the Company in October 2023. Terra Metals’ Rock Chip program confirmed the site’s high-grade Platinum Group Elements and Copper mineralisation. The Project exhibited a Magmatic mineralisation style in the same intrusive types as Nebo-Babel, Succoth, and Manchego. Following a comprehensive review of historical EM data, the Company has pinpointed several high-priority anomalies in airborne electromagnetic (AEM) and ground EM surveys.
Four priority prospects have been defined over 31km of combined strike:
- The Cronus intrusion (Cu-Au-Pd + Ni) 7km strike
- The Hyperion Reef (PGE-Au-Cu + V-Ti) 8km strike
- The Crius Reef (PGE-Au-Cu + V-Ti) 8km strike
- The Oceanus Reef (PGE-Au-Cu + V-Ti) 7km strike
Moreover, the Project encompasses large-scale magmatic Cu-PGE-Au-Ni targets and PGE-Au Reef targets, including a 23 km stretch of outcropping mineralised strike. High-grade mineralisation from rock chips (up to 3.4g/t PGE3, 1.92% Cu, 1.46% V2O5, 36.2% TiO2, 78.2% Fe2O3). Systematic RC drilling is underway.
Figure 3: Dante Project Location
The Maiden 7,000m RC drilling program commenced in March 2024 across priority targets, and was subsequently increased to ~10,000m mid-program, based on “visual observations”. Copper and gold are the primary target commodities at Cronus, while copper, gold and PGEs are the primary target commodities at Hyperion, Crius and Oceanus. The first samples have already been dispatched to the laboratory for assay, and results are expected soon.
Figure 4: Dante Copper-Platinum Group Elements-Gold-Nickel Project Tenements
The Project will get logistic and infrastructure benefits from its strategic location close to Australia’s largest Cu-Ni sulphide deposit of the Nebo-Babel Project, which is expected to be operational by 2025.
Other Prospective Gold, Lithium and Rare Earth Elements Assets in Portfolio
The Southern Cross Lithium Project
Lithium plays a critical role in the batteries used in electric vehicles (EVs) and various other electronic devices. Lithium-ion batteries offer high energy density, meaning they can store significant energy in a relatively small and lightweight package. Global governments are pushing electric vehicles to curb fossil fuel usage, driving the lithium demand.
Terra Metal’s Southern Cross Lithium Project is located within the greenstone belts of Southern Cross, which are rich in lithium (Li) deposits (a Tier 1 jurisdiction). The Project comprises four tenements covering approximately 800km2. The occurrence of Li throughout the greenstone belt is evidenced by the presence of the Mt Holland project (186Mt @ 1.53% Li2O) and the Split Rocks project (11.9Mt @ 0.72% Li2O). In September 2023, the Company started Phase 1 of soil sampling, comprising 1,770 samples. The initial soil sampling results have been promising; hence, the Company is expediting further detailed sampling and exploration.
The Onslow Copper-Gold Project
Growing tensions in the Middle East prompted investors to seek refuge in the safe-haven assets. Gold prices rose above $2,400 per ounce to an all-time high on April 12th, 2024. Meanwhile, Goldman Sachs hiked its year-end gold price forecast to $2,700 per ounce from $2,300, citing the metal’s bull market’s indifference to the usual macro factors. Terra Metals is advancing its gold assets to benefit the gold prices.
The Onslow Copper-Gold Project is located in the north-western extension of the Capricorn Orogen. This site is considered prospective for gold and copper deposits. The Project covers 567km2 and comprises three tenements. Historically, drilling at the Project primarily targeted iron mineralisation. However, Terra Metals is now conducting comprehensive drilling efforts to identify critical minerals. In December 2023, the Company completed 1,300 meters of diamond drilling, with the drill results currently under analysis.
The Company announced the results of an intensive airborne electromagnetic (EM) and magnetic survey conducted over its Onslow Copper-Gold Project. Analysis and interpretation of the survey data have revealed 11 priority targets showing robust mid-to-late peaks deemed suitable for further exploration, including air-core drilling. The survey encompassed a total of 1,538 line kilometres with 200-metre line spacing, covering both granted tenements (E08/3311 and E08/3197) within the Project.
Looking forward
Terra Metals Limited has a robust project portfolio containing critical minerals aligned with future global demand. The Company’s Project’s strategic location and stage position it ahead in the industry. Mr Thomas Line, CEO and MD of Terra Metals Limited, understands the commodity markets and metal demand. He is advancing the Company’s projects to ensure the Company and its shareholders are positioned with exposure to the commodity cycle uptrend in the Critical Metals sector.
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