Polymetallic Explorer Gets Special Designation From Spanish Region
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced that the Junta of Andalusia has declared that the company's wholly owned Iberian Belt West project is of strategic interest for Andalusia. One analyst says the company is "in the right place to be."
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced that the Junta, or regional government, of Andalusia has declared in a written resolution that the company's wholly owned Iberian Belt West project is of strategic interest for Andalusia.
The government has granted the project a Declaration of Strategic Interest, which is designed to streamline the administrative procedures and support economic business initiatives and job creation in the region.
"This is a highly innovative approach the Andalusia and Huelva governments have taken and truly represents concrete action that is expected to improve the business investment climate in the region," said David Gower, chief executive officer of Emerita. "By this declaration, they have essentially declared the project is important to the economic well-being of the region and they have become a partner by assisting the company to ensure its successful implementation."
The project is hosted within the renowned Iberian Pyrite Belt, one of the most productive volcanogenic massive sulfide (VMS) terranes in the world. The IBW Project encompasses three polymetallic deposits, from east to west: Infanta, El Cura, and Romanera.
In May 2023, Emerita released a maiden NI 43-101 compliant mineral resource estimate for the La Romanera and La Infanta deposits, and last September applied for the exploitation concession derived from an investigation permit. In February 2024, the Company filed an application to present IBW as strategic for the region, as it was considered that it met the necessary requirements.
"The fact that our project has been declared of strategic interest is a significant step for Emerita's success at IBW," said company President Joaquin Merino. "This declaration is aligned with our efforts to achieve a leading-edge project committed to the preservation of the environment; and to the social, economic and employment development, using the most modern technologies available, in the province of Huelva."
Once the declaration is granted, the Junta of Andalusia assigns officials from different areas of government to deal with the documents submitted by the company as a matter of priority.
"Once a project is screened into this designation, there are firm timelines established for completing documentation and with the assistance of the senior government officials assigned to the project the time required to complete the regulatory process is highly streamlined," Emerita said in a news release. "Junta officials are already engaging in the IBW Project, with the initial kick-off meeting taking place today (July 31, 2024)."
The Catalyst: Results Accelerate Additional Drilling
Earlier in July, the company announced promising drilling results from the El Cura deposit area. Hole EC014, the deepest and thickest intercept to date in the El Cura area, found 11.4 meters of massive sulfide at approximately 350 meters vertical depth. Hole EC014 also indicates the massive mineralized zone is likely becoming thicker with the zone remaining open at depth.
"Emerita Resources is exploring and delineating a wide range of base and precious metal deposits, which is definitely the right place to be at this time with massive broad-based commodities, and especially metals, bull market in prospect that has already begun," Technical Analyst Clive Maund wrote.This hole was part of a series of five that all intersected mineralization, showcasing the continuity of the mineralized zone from near surface to significant depths, the company said. The mineralization in section 9750E is more than 600 meters west of the historic El Cura mine workings, underscoring the potential for further expansion.
Widely spaced core drilling has intersected significant mineralization over a 400-meter by 300-meter area within a mineralized corridor extending at least 600 meters. Initial drilling results include hole EC007, which intersected 2.2 meters grading 2.9% Cu (copper), 2.3% Pb (lead), 4.6% Zn (zinc), 2.81 grams per tonne gold (g/t Au), and 82.5 g/t Ag (silver). These results, along with recent findings, have prompted Emerita to add a second drill rig and plan an additional 15 drill holes to delineate the new El Cura mineralization further.
Emerita said additional drilling was being accelerated at El Cura.
"With the high-grade, near surface character of the El Cura mineralization, good potential exists to quickly outline significant tonnage near to envisioned development and processing facilities for the Romanera and Infanta deposits," the company said in a release. "Accordingly, a second rig was mobilized to El Cura."
Critical, Precious Metals Needed for Energy Transition
As the world's economies attempt to switch to green energy, many metals are in demand for use in batteries and other related technologies. Electric vehicles (EVs) use as much as four times the copper as gas-powered cars. According to Credendo, demand for red metal could double by 2035.
"The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy, and the boom in investments in green technologies (e.g., renewables and electric vehicles) and in AI technologies," the site reported last month.
The hunt for copper "has been accelerating, as companies involved in all parts of the copper supply chain realize the structural supply deficit facing the copper market," wrote Rick Mills, author of the newsletter Ahead of the Herd.
"They understand the need to find sources existing mines, expansions, brownfield projects, greenfield projects, etc. and are making deals to acquire the base metal, which is not only essential to electrification and decarbonization but industry in general," Mills wrote.
Even precious metals like silver play a role. The most conductive element in nature, silver is used to coat electrical contacts in computers, phones, cars, and appliances. It's also an important element in solar technology.
According to the Silver Institute's World Silver Survey, global demand for silver "massively exceeded" supply last year, a deficit that is expected to extend into a fourth consecutive year in 2024.
Analyst: European Environment Positive for Resource Companies
Technical Analyst Clive Maund recently provided a comprehensive overview of Emerita Resources, emphasizing its strategic positioning and recent accomplishments.
"Emerita Resources is exploring and delineating a wide range of base and precious metal deposits, which is definitely the right place to be at this time with massive broad-based commodities, and especially metals, bull market in prospect that has already begun."*
Maund highlighted the significant discoveries made on the company's properties, particularly at the La Romanera property. "Elevated copper and gold grades have been discovered at the La Romanera property, which is good to know given that copper is entering probably its biggest bull market ever with impending massive supply shortages on the horizon and gold is also embarking on a massive bull market due to the current fiat money system reaching its nemesis," he wrote.
Streetwise Ownership Overview*
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE)
*Share Structureas of 7/31/2024Source: Emerita Resources Corp.Additionally, Maund pointed out the positive business environment for resource companies in Europe, stating, "It is a big positive that the business environment for resource companies in Europe is improving."
Ownership and Share Structure
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 5.13% of the company.
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%.
Institutions own 1.19% of the company, Reuters reported, 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$180.54 million and trades in a 52-week range of CA$0.23 and CA$0.78.
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Important Disclosures:
Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.Steve Sobek 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.
* Disclosure for the quote from the Clive Maund article published on May 28, 2024
For the quoted article (published on May 28, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedClivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.