Arc Minerals is set to deliver promising news from its Zambian exploration project as Anglo American conducts drilling. Analyst Paul Smith has highlighted impressive drill results indicating significant mineable copper. Arc will retain a 20% stake after completion of a $88.5 million earn-in by Anglo American, which has the potential for considerable market upside.
Arc Minerals Limited (AIM:ARCM) is poised to announce positive developments in its Zambian exploration project, currently being drilled by its partner Anglo American. Analyst Paul Smith from Zeus Capital has described the recent drill results as “impressive,” noting the presence of “significant high-grade copper,” which suggests potential mineability. With three assay results pending, expectations are high for continued favorable outcomes from the drilling campaign.
The exploration strategy is still in its early stages, but recent findings have prompted optimism, according to Smith. Arc Minerals released the latest assay results, and executive chairman Nick von Schirnding engaged with the Proactive studio to discuss developments. Once Anglo American completes its earn-in program by investing $88.5 million, Arc will retain a 20% stake in the asset.
This earn-in signifies Anglo American’s return to Zambia, where it had initially explored and discovered Sentinel in 2012, a project that proved immensely profitable, producing 231kt of copper at a low cash cost under $2 per pound in 2024. As Smith indicated, the current drilling targets are deemed higher priority than previous anomalies.
Zeus Capital has set a ‘fair value’ estimate of approximately 5.8p for Arc, which indicates substantial upside potential compared to the current market price of 1.6p. Smith emphasized the expert handling of the joint venture licenses by Anglo’s exploration team, which benefits from more robust funding compared to typical junior explorers in challenging capital markets.
Arc Minerals operates in the copper exploration sector in Zambia, known for its rich mineral deposits. The current collaboration with Anglo American enables them to leverage expert resources and financial backing for exploration efforts. With a significant investment structure in place, Arc intends to maintain a substantial stake in its projects while benefitting from Anglo American’s exploration capabilities.
In summary, Arc Minerals is on track for significant advancements in its Zambian exploration initiatives, particularly due to the recent drilling efforts by Anglo American. Promising assay results suggest a favorable outlook for mineable copper, supported by strong analytical insights and a strategically favorable earn-in agreement. The potential upside for Arc’s market position presents new investment opportunities as the venture progresses.
Original Source: www.proactiveinvestors.com
