Digger_image_banner_01

Silver City Minerals: Copper Blow is Starting to Shape Up!

Stephen Bartrop - Breakaway Research - 17-Apr-2018

KEY POINTS

  • Silver City Minerals is fast tracking exploration on its new ‘IOCG’ Copper Blow project near Broken Hill after its initial 15-hole programme has demonstrated potentially economic copper and gold mineralisation along with continuity at depth.
  • Copper Blow has been segregated into North and South zones based on the location of magnetic high zones. Drilling in the North Zone has revealed broad mineralised zones with a highlight being Drillhole 18CB054 reporting:
    • o 41m @ 1.3% copper & 0.40g/t gold from 183.8 m
  • In contrast drilling in the South Zone has generally revealed higher grade but narrower zones including Drill Holes CB09 and 17CB041 reporting:
    • o 11.8m @ 6.7% copper and 1.92g/t gold,
    • o 4m @ 6.1% copper, 4.23 g/t gold, 13 g/t silver and 220 ppm cobalt
  • The broad intersection reported in the North Zone is highly encouraging as it suggests increasing widths of higher grade mineralisation with depth. Testing whether the higher-grade zone does in fact increase in width as the mineralisation gets deeper will be an exciting aspect of the forthcoming drilling. In addition, the drilling will also test the magnetic low area between the North and the South Zones where mineralisation has not previously considered to occur.
  • While exploration has focused on the southern end of the 4km magnetic trend, there is no reason why the rest of the belt should not be as prospective below the surface as the southern portion.
  • Copper Blow is held in a Joint Venture structure with CBH Resources contributing 25% of the funding in proportion to its equity position but has no special rights to ore processing or offtake. Both CBH Resources and Perilya have processing plants within trucking distance at nearby Broken Hill. This leaves SCM in a strong negotiating position to secure competitive processing costs.

Silver City Minerals Ltd is fast tracking exploration on the Copper Blow copper-gold-cobalt project which exhibits Iron Oxide Copper Gold style mineralisation that is uncommon in the Broken Hill province. After raising $2m at 4 cents per share in a recent placement, the Company is fully funded to commence the Phase 2 drilling programme. If this drilling programme is successful, it could have significant ramifications for the economics of the project as well as the potential for further discoveries along the 4 km trend. 


Our recommendation is a SPECULATIVE BUY for Silver City Minerals on the back of the implications that may emerge from any success in the Phase 2 drilling programme.