Unearthing a Major Critical Minerals Resource in a Premier Mining Jurisdiction
Coda Minerals (ASX: COD) is positioning itself as a significant player in the critical minerals space with its flagship Elizabeth Creek Copper-Cobalt-Silver Project in South Australia. Located in a premier mining district close to established mining operations like BHP's Olympic Dam and Carrapateena, the company has defined a substantial resource with robust economics that warrant serious investor attention.
The Elizabeth Creek Project hosts a remarkable 65.5Mt resource at 1.6% copper equivalent, containing over 1 million tonnes of copper equivalent metal. With 93% of the resource in the Indicated category, Coda has established a high level of geological confidence in its flagship asset.
Recent scoping study results demonstrate the project's compelling economics, with a pre-tax NPV7 of $1.2 billion and an IRR of 35% (post-tax NPV7 of $802 million and IRR of 28%). These figures position Elizabeth Creek as a potentially transformative project in Australia's critical minerals landscape.
Strategic Location in a Tier-1 Mining Jurisdiction
One of Coda's key advantages is the project's location in South Australia, a mining-friendly jurisdiction with low sovereign risk. The Elizabeth Creek Project is situated in a region that hosts world-class mines including:
- BHP's Olympic Dam (114km north-northeast)
- BHP's Oak Dam West (16km northeast)
- BHP's Carrapateena (40km east)
This strategic positioning provides Coda with established infrastructure advantages and operational precedent in a region known for successful mining ventures. The project's proximity to Port Augusta and major transportation routes further enhances its development potential.
Multiple Deposits Creating a Diversified Mining Operation
Elizabeth Creek comprises several deposits, each contributing to the overall resource:
| Deposit | Type | Depth | Production Target |
|---|---|---|---|
| Emmie Bluff (Flagship) | Underground | ~400m | 31.81Mt @ 1.19% Cu, 0.06% Co (1.81% CuEq) |
| Windabout | Open Pit | 50-70m | 5.96Mt @ 1.03% Cu, 0.07% Co (1.71% CuEq) |
| MG14 | Open Pit | ~20m | 5.96Mt @ 1.03% Cu, 0.07% Co (1.71% CuEq) |
| Cattle Grid South | Open Pit | ~30m | 4.04Mt @ 0.54% Cu, 10.75g/t Ag |
The company has also identified deeper exploration potential with its Emmie Deeps Iron Oxide Copper Gold (IOCG) target at approximately 800m depth, where discovery drilling has returned promising results including an aggregate intercept of 35m @ >1% copper.
Steady-State Production Profile
At full production, the Elizabeth Creek Project is expected to deliver:
- 26.7Ktpa of copper
- 1.3Ktpa of cobalt
- 1.13 million ounces of silver annually
The pre-production capital expenditure is estimated at $331 million, with an attractive All-In Sustaining Cost (AISC) of USD$1.80/lb copper, positioning the project in the lower half of the global cost curve.
Understanding Copper-Cobalt Mining and Processing
Innovative Mining Approach
Coda plans to employ mechanical cutting with pillar recovery for its flagship Emmie Bluff underground deposit. This approach is well-suited to the remarkably flat, consistent ore body and is expected to achieve an 86% extraction rate over a 13-year mine life.
Advanced Processing Solution
The company has developed a comprehensive processing flowsheet for the project, initially comprising crushing, milling, and flotation with concentrate produced in Phase One. Phase Two would involve oxidative leaching (Albion Process) and downstream processing to produce:
- Copper cathode
- Cobalt sulphate
- Silver doré
- Zinc carbonate
Particularly impressive are the high metallurgical recoveries for cobalt, with +85% recovery to concentrate and +93% recovery to final product via the Albion process. This is significant given cobalt's status as a critical mineral with production tax credits available in various jurisdictions.
The company is also investigating a simplified whole ore leach process that could potentially streamline operations further.
Investment Thesis: Why Coda Deserves Attention
Experienced Leadership Team
Coda is led by a highly experienced board and management team with a proven track record in project development:
- Keith Jones (Non-Executive Chair): Former Chairman of Deloitte Australia
- Chris Stevens (CEO, Director): Former CEO of Gindalbie Metals, led acquisition and demerger in 2019
- Robin Marshall (Non-Executive Director): Managed delivery of some of the world's largest resource projects
- Paul Hallam (Non-Executive Director): Directly responsible for delivery and operation of 11 resource projects
- Colin Moorhead (Lead Geology Advisor): Highly experienced exploration and mine geologist, past president of AusIMM
Critical Minerals Exposure
The project provides investors exposure to metals essential for the global energy transition:
- Copper: Key electrification metal with a looming supply deficit
- Cobalt: Critical battery metal linked to the EV revolution
- Silver: Essential component in solar panels with demand exceeding supply
Environmental and Social Governance
Coda has made significant progress on project approvals and ESG considerations, including:
- Working within a supportive mining jurisdiction
- Establishing productive relationships with Traditional Owners
- Advanced approvals processes in a non-environmentally sensitive region
- Operating in an established mining area distant from major population centres
- Proximity to established infrastructure including roads and rail
Why Investors Should Follow Coda Minerals
With a current market capitalisation of just $20 million (share price $0.079) and $5 million in cash as of March 31, 2025, Coda represents a compelling opportunity to gain exposure to a substantial critical minerals project with robust economics at an early stage.
The company's technical approach to value creation, combined with a high-quality asset containing over 1 million tonnes of copper equivalent in a premier mining jurisdiction, positions Coda as a standout in the junior resources sector.
For investors seeking exposure to future-facing critical minerals in a stable jurisdiction, Coda Minerals offers a compelling investment case backed by strong technical fundamentals, experienced leadership, and significant potential upside as the Coda Minerals copper-cobalt project development advances toward development.
"Coda Minerals has positioned itself as a major player in the critical minerals sector, with significant upside potential due to its large-scale copper-cobalt resource in South Australia. With upcoming development milestones and strong project economics, investors should keep a close eye on this emerging opportunity in the critical minerals space."
Ready to Invest in Australia's Next Critical Minerals Producer?
Discover how you can be part of Coda Minerals' journey to develop the Elizabeth Creek Copper-Cobalt-Silver Project with its impressive $1.2 billion NPV and 35% IRR. With a substantial 65.5Mt resource containing over 1 million tonnes of copper equivalent metal in a premier mining jurisdiction, Coda represents a compelling investment opportunity at its current $20 million market capitalisation. To learn more about this significant critical minerals project and how to position yourself for potential upside as development progresses, visit www.codaminerals.com today.
