Arc Minerals is set to reveal further positive updates from its Zambian exploration project alongside Anglo American. Analyst Paul Smith noted impressive drill results indicating mineable high-grade copper. Arc will retain a 20% stake post earn-in, reflecting a strong potential for upside from the project as Anglo American leverages its exploration expertise.
Arc Minerals Limited (AIM:ARCM) is poised to announce further positive developments from its Zambian exploration project, where joint venture partner Anglo American has commenced drilling activities. Analyst Paul Smith from Zeus Capital has characterized the latest drilling results as “impressive,” highlighting substantial high-grade copper mineralization that is deemed mineable. “Of the six holes drilled, we are still waiting for assays from three, so we expect more good news to come,” he added.
Smith emphasizes that this marks the beginning of an ambitious copper exploration strategy, with today’s results providing significant encouragement. Earlier today, Arc published its drill assay outcomes, and executive chairman Nick von Schirnding engaged with Proactive’s studio regarding this advancement. Post-completion of Anglo American’s earn-in program, which will see the company invest $88.5 million to acquire a 70% interest, Arc is to maintain a 20% stake in the project.
This earn-in effort signifies Anglo American’s return to the region, which is supported by historical context. Smith noted that the Sentinel mine, established in 2012, was also located on exploration licenses previously held by Anglo American. The mine, producing 231,000 tons of copper in 2024 at a cash cost of less than $2 per pound, showcases the potential profitability of the area.
Zeus Capital has set a fair value estimate of 5.8p for Arc Minerals, suggesting considerable upside potential compared to its current market price of 1.6p. Smith expressed confidence in the joint venture’s progression, stating, “The JV licences are in good hands, being advanced by Anglo’s expert exploration team and supported by funding beyond that easily obtained by the typical junior explorer in such restricted capital markets.”
Arc Minerals Limited is engaged in copper exploration in Zambia, collaborating with Anglo American, a major mining enterprise. The company is currently in a phase where Anglo American is drilling to uncover high-grade copper deposits, which represents a crucial opportunity for both entities. Furthermore, this venture allows Arc to maintain a minority ownership stake in a project that could yield significant financial returns following Anglo’s investment.
In summary, Arc Minerals is strategically positioned for growth due to its partnership with Anglo American in Zambia, where positive drilling results for high-grade copper have been reported. With a solid future outlook and a fair value assessment by Zeus Capital, Arc’s market presence may significantly increase, bolstered by Anglo’s expertise and funding capabilities in exploration.
Original Source: www.proactiveinvestors.co.uk
