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Coda Minerals Advances Copper-Cobalt Exploration at Emmie East with Strategic Drilling Campaign

Coda Minerals Ltd-COD-Desert landscape with a large drilling rig surrounded by trucks and workers on red sandy terrain.
Coda Minerals initiates focused drilling program at Emmie East, targeting expansion of copper-cobalt resources in South Australia's Olympic Copper Province.

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Coda Minerals Ltd

  • ASX Code: COD


  • Market Cap: $21,155,078


  • Shares on Issue (SOI): 248,883,271


  • Cash: $5,991,000 (as of June 2023)

Energising Growth: Coda Minerals Commences Drilling at Emmie East

Coda Minerals Ltd has embarked on a pivotal drilling program at the Emmie East Prospect, marking a crucial phase in its quest to bolster copper and cobalt resources within the esteemed Olympic Copper Province in South Australia. This region is a powerhouse in global copper and cobalt production, hosting some of the world's most significant deposits.

Coda's current drilling campaign involves up to 2,000 metres, utilising Reverse Circulation (RC) rigs for pre-collars, followed by diamond drilling to reach the targeted depths. The initial diamond tail is expected to be completed in the coming weeks. This meticulous approach aims to uncover potential repeats of the Emmie Bluff–style sediment-hosted mineralisation to the east and southeast of the company's established resources.

A Strategic Focus on Resource Expansion

The initiation of this drilling program aligns with Coda Minerals' broader ambition to enhance its portfolio of substantial copper-cobalt-silver deposits surrounding the Emmie Bluff Mineral Resource, which currently stands at 40.2 million tonnes at 1.87% copper equivalent (CuEq). The exploration efforts at Emmie East could significantly augment the company's resource base, reinforcing its position as a key contributor to the global demand for critical energy transition metals.

Copper and cobalt are fundamental components in renewable energy infrastructure and electric vehicle (EV) production. The escalating demand for these metals, driven by the global shift towards decarbonisation and electrification, underpins the strategic importance of Coda's exploration activities.

Understanding Sediment-Hosted Copper Deposits

What Are Sediment-Hosted Copper Deposits, and Why Do They Matter?

Sediment-hosted copper deposits are a vital resource type that form the backbone of many mining operations worldwide. These deposits occur within sedimentary rock formations, particularly at the interfaces between black shales and red-bed sandstones. The Olympic Copper Province, where Coda's activities are concentrated, is exemplary of such geological settings.

Key characteristics of sediment-hosted copper systems include:

  • Thin, Laterally Extensive Mineralisation: They often present as broad sheets of copper-rich mineralisation, which can extend over large areas.


  • By-Product Metal Credits: Associated metals such as cobalt, silver, and zinc contribute significant economic value as by-products.


  • Accessible Formations: These deposits are typically located at relatively modest depths, facilitating more straightforward extraction processes.

These features make sediment-hosted copper deposits particularly attractive from an economic standpoint. Higher grades of copper reduce extraction costs and improve project feasibility. Additionally, revenue from by-product metals like cobalt and silver can substantially offset operating expenses, enhancing profitability.

The Role in Global Energy Transition

As the world accelerates towards electrification, the demand for copper and cobalt is experiencing sustained growth. Copper is integral to electrical infrastructure due to its excellent conductivity, while cobalt is a critical component in lithium-ion batteries used in EVs and energy storage systems. The exploration and development of sediment-hosted copper deposits are, therefore, essential to meet the burgeoning demand for these critical minerals.

Drilling Program Details and Objectives

Timelines and Next Steps

Coda Minerals' drilling program at Emmie East is strategically planned to maximise outcomes and inform future exploration decisions. The initial phase involves 5–7 days of RC drilling to establish pre-collars, focusing particularly on the easternmost holes. These areas have exhibited geophysical signatures similar to those identified at the Emmie Bluff Mineral Resource, indicating a high potential for significant mineralisation.

Following the RC drilling, a second drill rig will be deployed to complete the diamond tails, enabling the team to reach deeper, more prospective geological horizons. The diamond drilling is crucial for obtaining core samples that provide detailed geological and structural information.

Adaptable Exploration Strategy

The results from this drilling campaign will be instrumental in shaping Coda's subsequent exploration activities. Depending on the findings, the company may choose to:

  • Continue Focus at Emmie East: If significant mineralisation is encountered, further drilling may be concentrated in this area.


  • Shift to Oakden Prospect: Located further south, the Oakden Prospect represents another high-potential target within Coda's tenements.


  • Revisit Emmie Bluff Deposit: Additional exploration at the main Emmie Bluff deposit may be warranted to enhance resource definition.

This flexible approach ensures that resources are allocated efficiently, with the exploration strategy continually refined based on empirical data.

Investment Thesis: Roadmap to Value

Why Coda Minerals Represents a Compelling Investment Opportunity

Coda Minerals presents a robust investment proposition underpinned by several key factors:

Scale and Quality of Assets

  • Significant Resource Base: With a combined inventory exceeding 1 million tonnes of contained copper equivalent, Coda's resource portfolio is substantial.


  • High-Grade Mineralisation: The Emmie Bluff Mineral Resource boasts 40.2 million tonnes at 1.87% CuEq, indicating a high-quality deposit.

Strategic Geographic Positioning

  • Prime Location: Operating within the Olympic Copper Province places Coda amidst some of the world's most significant copper operations.


  • Proximity to Major Players: Close to BHP's assets, including Olympic Dam and Carrapateena, offering potential for future collaborations or synergies.

Exploration Upside with IOCG Potential

  • Iron Oxide Copper-Gold (IOCG) Prospects: Adjacent IOCG systems provide additional avenues for resource expansion.


  • Recent Drilling Success: Intersections of substantial copper sulphide mineralisation indicate promising exploration results.

Positive Economic Indicators

  • Favourable Scoping Study: Economic evaluations highlight the project's viability, with noteworthy metrics such as:
  • 16-Year Mine Life: Indicating long-term production potential.


  • Pre-Tax Net Present Value (NPV7) of $1.18 Billion: Reflecting strong projected profitability.


  • Competitive Operating Costs: Average all-in sustaining costs (AISC) of USD $1.80 per pound of copper after by-product credits.

Strong Demand Fundamentals

  • Growing Market Demand: The global shift towards renewable energy and electric mobility is fuelling increased consumption of copper and cobalt.


  • Essential Minerals for Decarbonisation: Both metals are critical for manufacturing EVs, batteries, and renewable energy infrastructure.

Navigating the Future: Strategic Outlook

Why Investors Should Keep Watching

Coda Minerals is strategically positioned to capitalise on the surging demand for critical minerals essential to the global energy transition. The company's focused exploration efforts, particularly the drilling at Emmie East, have the potential to significantly enhance its resource base.

Key reasons for investors to monitor Coda Minerals include:

  • Potential for Resource Expansion: Successful exploration could lead to new discoveries, increasing the company's mineral inventory.


  • Experienced Management Team: A skilled leadership team with a track record of successful project development.


  • Alignment with Global Trends: The company's focus on copper and cobalt aligns with the macroeconomic trends of electrification and decarbonisation.


  • Prospective Partnerships: Proximity to major mining operations opens possibilities for strategic partnerships or joint ventures.

As exploration progresses, upcoming milestones such as drilling results, resource updates, or feasibility studies could serve as catalysts for the company's growth and investor interest.

Conclusion

Coda Minerals Ltd stands at a promising juncture, with its active drilling program at Emmie East representing a concerted effort to unlock further value from its assets. The combination of substantial existing resources, strategic location within a world-class mining province, and exposure to metals critical for the energy transition, positions the company favourably within the mining sector.

Investors seeking opportunities in the critical minerals space may find Coda Minerals' growth trajectory and strategic focus compelling. The coming months will be pivotal as the company advances its exploration programs, aiming to deliver tangible results that could significantly enhance shareholder value.

Ready to Dive Deeper into Coda Minerals' Copper Potential?

Discover the full investment story behind Coda Minerals' exciting Emmie East drilling program and explore the strategic opportunities in this critical minerals project. Visit Coda Minerals' official website to access comprehensive investor information, detailed project insights, and uncover why this ASX-listed company is positioned at the forefront of copper and cobalt exploration in South Australia's premier mineral province.

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