Elizabeth Creek Project Set to Become a Major Critical Minerals Producer
Coda Minerals (ASX: COD) is rapidly progressing its flagship Elizabeth Creek project by Coda Minerals Ltd in South Australia, with recent scoping study results highlighting a potentially transformative development with robust economics in a Tier-1 mining jurisdiction.
The project, situated in the heart of South Australia's copper belt near Olympic Dam and Carrapateena, boasts a remarkable $1.2 billion pre-tax NPV and 35% IRR, positioning Coda as one of the most promising emerging copper developers on the ASX.
With over 1 million tonnes of contained copper equivalent resources and a clear pathway to production, Elizabeth Creek represents a significant opportunity in the critical minerals space at a time when copper and cobalt demand is surging for energy transition applications.
A Substantial Resource Base in a Premier Mining District
The Elizabeth Creek project consists of multiple deposits spanning a 701 km² area in South Australia's prolific copper belt:
| Deposit | Resource Classification | Tonnage (Mt) | Copper (%) | Cobalt (ppm) | Silver (g/t) | CuEq (%) | CuEq Contained (kt) |
|---|---|---|---|---|---|---|---|
| Emmie Bluff | 93% Indicated, 7% Inferred | 40.2 | 1.3% | 569 | 17 | 1.9% | 751 |
| MG14 | Indicated | 1.8 | 1.2% | 334 | 14 | 1.7% | 31 |
| Windabout | Indicated | 17.7 | 0.8% | 492 | 8 | 1.4% | 249 |
| Cattle Grid South | Inferred | 5.8 | 0.6% | – | 4 | – | 36 |
| Total | 65.5 | 1.6% | 1,067 |
The company's large-scale resource base is located in an exceptional jurisdiction with established infrastructure and proximity to major mining operations, including BHP's Olympic Dam (114km north-northwest) and Oak Dam West (16km northeast), as well as OZ Minerals' Carrapateena operation (40km east).
Innovative Mining Approach for Maximum Recovery
Elizabeth Creek's deposits present a unique mining opportunity, with the flagship Emmie Bluff deposit featuring a remarkably flat, stratiform orebody reminiscent of a coal seam. Coda's scoping study outlines an efficient underground mining plan using mechanical cutting with pillar recovery, enabling:
- 86% extraction – significantly higher than typical underground operations
- 13-year mine life based on current resources
- 400m depth – relatively shallow for an underground operation
- Production target of 31.81Mt @ 1.81% CuEq from Emmie Bluff alone
This innovative approach to mining the flat-lying deposit maximises resource recovery while minimising dilution, contributing to the project's robust economics.
Understanding Stratiform Copper-Cobalt Deposits
Stratiform copper deposits are sediment-hosted copper occurrences that form parallel to rock layering, typically in reduced sedimentary rocks. These deposits are among the world's most important copper sources, accounting for approximately 20% of global copper production.
What makes Elizabeth Creek project by Coda Minerals Ltd particularly valuable is the presence of cobalt alongside copper. The mineralisation predominantly occurs as carrollite (CuCoâ‚‚Sâ‚„), a copper-cobalt sulphide mineral that enables high recoveries of both metals through appropriate processing. The flat geometry facilitates efficient underground mining techniques not typically seen in Australian copper operations.
Unlike most Australian copper deposits that are hosted in volcanic or intrusive rocks, Elizabeth Creek's mineralisation is more similar to the prolific copper belt in Zambia and the Democratic Republic of Congo, which produces a significant portion of the world's cobalt alongside copper.
Proven Processing Route with Strong Recoveries
A key strength of the Elizabeth Creek project is its well-defined processing route that achieves exceptional recoveries for both copper and cobalt:
- Phase 1: MG14 concentrate sales (25.3% Cu, 1.5% Co, 248 g/t Ag)
- Phase 2: Windabout and Emmie Bluff downstream processing via flotation and Albion Process
The metallurgical flowsheet delivers impressive recoveries:
- >85% cobalt recovery to concentrate
- >93% cobalt recovery to final product
- High-grade copper cathode production
These strong metallurgical results significantly enhance project economics, with the ability to produce battery-grade cobalt sulphate as a critical mineral that qualifies for production tax credits.
Compelling Economics Driving Development
The recently completed scoping study highlights Elizabeth Creek's potential to become a major contributor to Australia's critical minerals sector:
| Metric | Value |
|---|---|
| Pre-Tax NPV₇ | $1.2 billion |
| Pre-Tax IRR | 35% |
| Post-Tax NPV₇ | $802 million |
| Post-Tax IRR | 28% |
| Pre-Production CAPEX | $331 million |
| AISC | $1.80/lb Cu (USD) |
In steady-state production, the project is expected to deliver:
- 26,700 tonnes of copper annually
- 1,300 tonnes of cobalt annually
- 1.13 million ounces of silver annually
Over the life of mine, Elizabeth Creek will produce an estimated 384,000 tonnes of copper, 19,000 tonnes of cobalt, and 16 million ounces of silver.
Importantly, the project economics remain robust even under various sensitivity scenarios, including current spot commodity prices. At recent spot prices, the project still delivers a post-tax NPV of $489 million with a 21% IRR.
Clear Path to Production
Coda has outlined a structured timeline to advance Elizabeth Creek from scoping study to production:
- 2025: Complete pre-feasibility and definitive feasibility studies
- 2026: Secure approvals and make final investment decision
- 2027-2028: Construction of flotation plant, hydromet plant, and mining infrastructure
- 2029: First production with concentrate sales (Phase 1)
- Beyond 2029: Full-scale production of final products (Phase 2)
The company is also investigating technical improvements that could further enhance project economics, including whole ore leaching and Halion Loopâ„¢ technology to improve recoveries, decrease capital costs, and reduce operating expenses.
Significant Exploration Upside
Beyond the current resource base, Elizabeth Creek offers substantial exploration upside:
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Emmie Bluff Extension: Recent drilling has identified a 1,000m by 300m south-eastern corridor for future exploration, with hole EB0038 encountering copper mineralisation beyond the current resource boundary.
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Emmie Deeps IOCG Target: A potentially game-changing Iron Oxide Copper Gold (IOCG) system beneath the stratiform deposits represents a separate major opportunity. Emmie Deeps is the fifth major IOCG system discovered in South Australia and remains largely undrilled, with a 2.5km long target area identified.
The Emmie Deeps target offers Tier-1 scale potential and "Stage 3" optionality beyond the current development plan.
Why Investors Should Follow Coda Minerals
Coda Minerals presents a compelling investment case for several key reasons:
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Quality Asset: Elizabeth Creek hosts over 1.1 million tonnes of contained copper equivalent with robust economics in a premier mining jurisdiction.
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Innovation-Driven Value Creation: The company is applying innovative technical solutions to maximise recoveries and optimise project economics.
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Experienced Management: Coda's board has an exceptional track record in project development, including former executives from Deloitte, BHP, Newcrest, Fortescue, and PwC.
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Critical Minerals Exposure: The project provides direct exposure to copper and cobalt, two metals essential for the global energy transition.
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Significant Exploration Upside: Beyond the defined resources, Elizabeth Creek offers substantial growth potential through both resource extensions and the high-potential IOCG target at Emmie Deeps.
Key Takeaway:
"Coda Minerals has positioned itself as a major player in Australia's critical minerals sector, with significant upside potential due to its large resource base, innovative approaches, and exploration opportunities. With upcoming milestones in 2025-2026 and a clear path to production, investors should keep a close eye on developments at Elizabeth Creek."
With a current market capitalisation of just $20 million ($0.079 per share) and $6 million in cash as of December 31, 2024, Coda Minerals represents a potentially undervalued opportunity to gain exposure to critical minerals essential for the global energy transition.
Ready to Invest in Australia's Next Major Critical Minerals Producer?
Discover why Coda Minerals' Elizabeth Creek project represents a compelling investment opportunity with its $1.2 billion pre-tax NPV and clear pathway to producing copper, cobalt and silver in a Tier-1 jurisdiction. With over 1 million tonnes of contained copper equivalent resources and significant exploration upside, Coda is positioning itself as a key player in the critical minerals sector. To learn more about this potentially transformative opportunity and stay updated on Coda's development milestones, visit www.codaminerals.com today.
