Latest Drill Campaign at El Cura Deposit Confirms Westward Extension of High-Grade Minerals
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has announced further drilling success at the El Cura deposit.Read about these results and how they are leading to a third drilling hole to probe potential discoveries moving forward.
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has announced further drilling success at the El Cura deposit. This deposit is part of its Iberian Belt West (IBW) project. The latest drilling results reveal a 6.5-meter intercept with high-grade polymetallic mineralization, including 1.1% copper, 1.1% lead, 3.1% zinc, 73.35 grams per tonne (g/t) silver, and 1.36 g/t gold. These findings highlight the extension of mineralization both laterally and to the west. A total of three drill holes were highlighted, with notable mineralization extending up to 50 meters westward from the previous drilling, signaling further exploration potential for the project.
Emerita continues to gain geological insights into El Cura, with recent drilling reinforcing the deposit's 730-meter strike length and mineralized depth extending over 300 meters. Plans are underway to add a third drill rig to increase drill hole density and accelerate the exploration campaign.
Drill Highlights From The News Release Include:
Drillhole EC020 intersected 6.5 m, grading 1.1% copper, 1.1% lead, 3.1% zinc, 73.35 g/t silver, and 1.36 g/t gold.Drillhole EC018 intersected 4.1 m, grading 0.3% copper, 0.4% lead, 0.6% zinc, 14.98 g/t silver, and 0.36 g/t gold.Drillhole EC019 intersected 0.5 m, grading 0.8% copper, 0.3% lead, 1.2% zinc, 21.00 g/t silver, and 0.36 g/t gold. This is the most western intercept to date in El Cura, extending the deposit 50m to the west.Sulfide mineralization at El Cura continues to the west and at depth.Critical Metal's Role in Global Decarbonization and Technology
Copper is increasingly sought after in applications ranging from electric vehicles (EVs) and renewable energy systems to essential electronics and construction. According to the Precedence Research 2024 Copper Market Report, "the global copper market is poised for significant growth, with projections for its size to reach around US$548.20 billion by 2034," driven by copper's critical role across diverse industries, including construction, automotive manufacturing, and electronics.
In recent months, copper prices have surged significantly, with Watcher.Guru reporting on September 25 that "copper prices are skyrocketing in the charts" following a Federal Reserve interest rate cut and an overall increase of 13.3% year-to-date. This surge, fueled by strong demand and a tightening supply chain, has positioned copper as one of the top gainers in the commodity markets this year.
The price per tonne reached US$10,000 on September 30, marking a return to levels not seen since July, as reported by Ahead of the Herd on October 5. The publication noted that copper's rally "put lead in the pencils of copper proponents" and reflected a shift in market sentiment fueled by economic activity in China and steady growth across industries reliant on copper.
As Ahead of the Herd noted, "sometime in 2025 surplus is going to turn to deficit... demand post-2025 is practically certain to outstrip supply, due to continued copper requirements from the energy transition." This looming supply gap underscores the value of new sources of copper-rich deposits, positioning companies like Emerita at the forefront of meeting future market demands.
Copper is a cornerstone in the push toward global decarbonization, and with increasing support for electrification initiatives, demand is projected to grow by 70% by 2050, reaching an estimated 50 million tonnes annually. This demand is particularly driven by the transportation sector, which uses copper extensively in electric vehicle production and charging infrastructure, with the sector's share of copper demand expected to grow from 11% in 2021 to 20% by 2040, as per BloombergNEF's Transition Metals Outlook. Emerita's ongoing expansion efforts in Spain's Iberian Belt West align well with the forecasted demand surge, which could drive long-term growth in the copper market and contribute to the company's value.
Looking ahead, the copper market's expansion could require investments totaling US$2.1 trillion by 2050 to meet the material demands of a net-zero transition. This figure, shared in BloombergNEF's Transition Metals Outlook, emphasizes the critical infrastructure and investment needed to secure a sustainable copper supply.
Gold and silver are also becoming increasingly valuable as reserve assets amid global economic shifts. The Bubble Bubble Report on October 6 highlighted Russia's strategic move to add silver to its state reserves alongside gold. "Russia's decision to add silver to its reserves distinguishes it from most other central banks, which have largely focused on accumulating gold while overlooking silver," noted Jesse Colombo. With plans to allocate 51.5 billion rubles (or US$538.7 million) annually toward precious metals over the next three years, Russia's silver acquisitions could be a key driver for prices reaching US$50 an ounce and beyond, bolstering silver's role in the precious metals market.
Egon von Greyerz, founder of Matterhorn Asset Management, highlighted the importance of gold as a hedge against debt-driven currency devaluation. He stated on October 10 at Von Greyerz that "gold is going to multiples of the current price" as the global economy continues to grapple with high debt levels and inflation. He explained that "higher debt and inflation lead to falling currencies and a higher gold price," pointing to central banks' sustained shift toward physical gold as they diversify away from fiat currencies. Von Greyerz further remarked that "only 0.5% of global financial assets are invested in gold," underscoring its potential for substantial growth if demand were to increase even marginally.
Key Drivers for Emerita's IBW Project
As outlined in the company's investor presentation, Emerita's Iberian Belt West project stands out as a strategic asset, bolstered by the Andalusian government's designation as a "strategic interest" project, which accelerates permitting. The increased drilling density at El Cura supports resource expansion and the potential for an NI 43-101 compliant resource estimate to include El Cura's high-grade zones, as indicated in the company's recent investor presentation.
Streetwise Ownership Overview*
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE)
*Share Structureas of 8/21/2024Source: Emerita Resources Corp.Joaquin Merino, Emerita's President, underscored the value of these results: "We continue to intersect high-grade, copper-rich mineralization at El Cura, providing excellent opportunities to rapidly expand the deposit." The company's commitment to systematic drilling and detailed geophysical surveys could drive sustained growth for the IBW project and highlight its value within Spain's prolific mining region.
Ownership and Share Structure
According to Reuters, Michael Lawrence Guy owns 1.54% of the company, David Patrick Gower owns 1.12%, Joaquin Merino-Marquez owns 0.84%, Catherine Stretch owns 0.65%, and Marilia Bento owns 0.4%.
Reuters reported that institutions own 1.19% of the company, including Merk Investments LLC, with 1.11%.
According to Refinitiv, there are 247.39 million shares outstanding with 234.7 million free float traded shares, while the company has a market cap of CA$165.8 million and trades in a 52-week range of CA$0.26 and CA$0.78.
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Important Disclosures:
Emerita Resrouces is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.