Published On: April 30th, 2024
Figure 1: Terra Metals Limited
Terra Metals Limited (ASX: TM1) (formerly known as GCX Metals Limited) is a critical metals explorer in Western Australia. The Company, now under its new name, has announced results for the quarter ending March 2024. It showed significant progress in its critical metals mining projects during the quarter. This name change reflects the company’s renewed focus and alignment with its vision.
Highlights of Terra Metals March quarterly report:
- Maiden Drill Program commenced at the Dante Copper-Gold-Platinim Group Elements (PGE) Project in the West Musgrave region of Western Australia. Expanded the drill program to approximately 10,000 metres, approximately 14 more than 14km of strike based on promising visual observations at Crius and Hyperion reefs
- The first 31 completed drill holes were sent to a laboratory for assay, with initial results expected soon
- Multiple mineralised gossans identified and returned high-grade copper and PGE mineralisation through a rock chip program at the Dante Project.
- Completed a regional soil sampling program at the Southern Cross Lithium Project that identified a large 10km x 2km Li soil anomaly >100ppm Li2O
- Reviewed and logged diamond core holes drilled at the Onslow Project, awaiting assay results
- Completed a share placement to institutional and sophisticated investors to raise gross proceeds of $2.1
The recent surge in copper prices, crossing USD 10,000 per ton for the first time in two years, presents a promising opportunity for Terra Metals Limited. This comes just a day after the news that mining major BHP Group is trying to buy Anglo American Plc. BHP, the largest producer, is eager to ramp up copper production to incentivise the growing demand for electric vehicles, grid infrastructure, and data centres. Terra Metals Limited is strategically positioned to benefit from this trend, further enhancing its financial prospects.
First Quantum’s Cobre Panamá is another reason behind the spurt of commodity prices. The mine has sat idle since November 2023. Before its closure, it was responsible for 1.5% of the world’s copper production.
The metal price climbed more than 11% in 2024, supported by the closure of a massive mine operation in the Panamanian jungle. This event widens the supply-demand imbalance.
In other words, the world is short on copper. Besides the Cobre Panama Copper mine, capital expenditure on new copper mines has declined in recent years. CRU, the metals consulting agency, estimates that USD 150 billion is required to plug the current supply gap.
Rising red metal prices motivate explorers like Terra Metals Limited to expedite the progress at its vital asset, the Dante Copper-Platinum Group Elements-Gold and Nickel asset.
The West Musgrave region in Western Australia, known for its significant copper deposits, is the strategic location of Terra’s flagship asset, the Dante Copper-Gold and Platinum Group Element (PGE)-Nickel Project. This location, coupled with the project’s potential for high-grade mineralisation, makes it attractive from a cost point of view and underscores its potential profitability.
Focus on the Dante Copper-Gold and Platinum Group
Element (PGE)-Nickel Project
Figure 2: Dante Project Location
Terra Metals’ Rock Chip program confirmed the site’s high-grade Platinum Group Elements and Copper mineralisation. The Project has a Magmatic mineralisation style in the same intrusive types as Nebo-Babel, Succoth, and Manchego. Following a comprehensive review of historical EM data, several high-priority anomalies detected through airborne electromagnetic (AEM) and ground EM surveys have been identified.
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.
The Maiden 7,000m RC drilling program commenced in March 2024 across priority targets. Copper and gold are the primary target commodities at Cronus. The first batch of completed drill holes is under laboratory assay, with anticipation high for the initial findings.
The Project’s strategic location close to Australia’s largest Cu-Ni sulphide deposit, the Nebo-Babel Project, which is expected to be operational by 2025, will benefit its logistics and infrastructure.
Other Prospective Gold, Lithium and Rare Earth Elements Assets in Portfolio
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 USD 2,400 per ounce to an all-time high on April 12th, 2024. Meanwhile, Goldman Sachs hiked its year-end gold price forecast to USD 2,700 per ounce from USD 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 northwestern 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 revealed 11 priority targets showing robust mid-to-late peaks deemed suitable for further exploration, including air-core drilling. The survey encompassed 1,538 line kilometres with 200-metre line spacing, covering both granted tenements (E08/3311 and E08/3197) within the Project.
The Southern Cross Lithium Project
Figure 3: Lithium Soil Heat Map Revealing A Large 10km Anomaly At Southern Cross Lithium Project
Lithium is critical 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, deriving 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. Sampling revealed a significant lithium anomaly, approximately 10 X 2 kilometres. Soil results indicate lithium concentrations exceeding 100 ppm Li2O, suggesting substantial potential for lithium extraction. The company plans to explore the anomaly further.
Investor Outlook
As of March 29th, 2024, Terra Metals Limited’s shares traded at AUD 0.058 per share, with a 52-week range of AUD 0.023 – 0.069. The Company’s market capitalisation is AUD 16.26 million, with 295.8 million shares issued.
Surging copper price is deriving the Terra Metals to swift progress at its strategically positioned flagship asset, the Dantee Project. The progressive quarter reflects the Company’s dedication to project development, growth, and value creation. Mr Thomas Line, CEO and MD of Terra Metals Limited, is closely observing the bullish sentiment of copper prices. He understands the rationality behind it, hence pushing the Company’s Dantee Project to get incentivised from the market conditions that will eventually reflect in the Company’s stock.
Disclaimer
The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should inquire about any investments, and Colitco LLP strongly suggests the users seek advice from a financial adviser, stockbroker, or other professional (including taxation and legal advice), as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website are copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.
