Coda Minerals Strengthens Regional Copper Exploration Pipeline in South Australia

About Coda Minerals

Coda Minerals Limited (ASX: COD) is a mining exploration company focused on discovering and developing minerals critical to the global energy transformation. The company is headquartered in West Perth, Western Australia.

Coda's flagship asset is the 100%-owned Elizabeth Creek Copper-Cobalt Project, located in the Olympic Copper Province in South Australia's most productive copper belt. The project is centered 100km south of BHP's Olympic Dam copper-gold-uranium mine and in close proximity to other projects owned by major mining companies like OZ Minerals.

In December 2021, Coda announced a maiden mineral resource estimate for the Emmie Bluff copper-cobalt deposit at Elizabeth Creek of 43Mt @ 1.3% copper, 470ppm cobalt, 11g/t silver and 0.15% zinc (1.84% CuEq). This resource contains approximately 560kt copper, 20kt cobalt, 15.5Moz silver and 66kt zinc (800kt CuEq). Over 90% of the contained metal is classified as Indicated Resource, allowing it to be used in mining studies.

Emmie Bluff is one of three known ‘Zambian-style’ copper-cobalt deposits at Elizabeth Creek. The other two, Windabout and MG14, also have JORC-compliant mineral resources. Collectively, the three deposits contain over 1 million tonnes of contained copper equivalent.

In March 2023, Coda released a scoping study for developing these three deposits. It outlined an economically robust 14-year mine life capable of producing 25,000 tonnes of copper and 1,000 tonnes of cobalt per year at steady state.

Alongside advancing these known copper-cobalt resources, Coda is also exploring for IOCG deposits adjacent to Emmie Bluff. Initial drilling has intersected significant widths of copper and gold mineralization pointing to a large IOCG system.

Coda's growth strategy focuses on expanding the resources at Elizabeth Creek while advancing technical studies, as well as making new regional copper discoveries that can be processed at its planned facilities at Elizabeth Creek.

Coda Secures New Regional Copper Exploration Ground

The recent press release from Coda Minerals outlines expansion of the company's copper exploration footprint in South Australia through a strategic partnership with uranium developer Boss Energy.

Under a mineral rights sharing arrangement, four highly prospective exploration tenements have been jointly granted to Coda and Boss Energy by the Government of South Australia.

The new tenements are located approximately 350km from Coda's flagship Elizabeth Creek Copper-Cobalt Project and cover a total area of 3,184km2 in the northern Murray Basin.

This region is considered prospective for both copper and uranium mineralization. Under the agreement, Coda will focus exploration on the copper potential while Boss will focus on uranium, related to its Honeymoon uranium mine nearby.

Coda will have 100% rights to any base metals discovered, including copper, while Boss will retain 100% of rights to any uranium found. The companies plan to finalize a formal mineral rights sharing agreement soon.

According to Coda's CEO Chris Stevens, the partnership will allow both companies to leverage their respective expertise in base metals and uranium exploration. It also provides Coda with a low-cost way to expand its copper exploration footprint in the region.

Importantly, any copper discoveries by Coda on the new tenements can be processed at the planned mine and processing facilities at Elizabeth Creek. This infrastructure has the potential to become a central processing hub for multiple copper deposits in the district.

Next Exploration Steps

With the tenement awards now granted, Boss Energy and Coda will commence stakeholder engagement with local communities regarding upcoming exploration work.

They will also compile all available geological and geophysical data for the project area to identify key targets and plan the next exploration phase.

Significant regional geophysical surveys are expected to be undertaken to map out potential palaeochannel sequences prospective for copper mineralization within the sedimentary basins.

Coda will likely take the lead on initial exploration focused on the copper potential. Further details of the upcoming work programme will be announced once the mineral rights agreement has been formalized.

Strategic Importance for Coda's District Growth Plans

This new joint venture aligns well with Coda's strategy to grow its resource base and production profile beyond the known deposits at Elizabeth Creek.

The large size of the tenement package (over 3,100 km2) provides substantial greenfield exploration potential. The geology is considered very prospective for shallow copper discoveries that could feed Coda's planned central processing hub at Elizabeth Creek.

Any discoveries made will further strengthen Coda's position and leverage in the region, building on its flagship project. Having an established processing facility with excess capacity close by adds to the economics of exploring and developing additional copper resources in the district.

The partnership also diversifies Coda's risk and reduces exploration costs through the mineral rights sharing structure. The arrangement allows both companies to focus their expertise on different commodity targets in the same prospective region.

Conclusion

For investors, Coda's regional expansion through this joint venture is a positive signal of the company's growth ambitions beyond its flagship Elizabeth Creek Copper-Cobalt Project.

The large size of the tenement package provides substantial leverage to new copper discoveries that would further strengthen Coda's production base and leverage in the district. The exploration potential complements plans to establish central processing facilities at Elizabeth Creek.

The deal structure is also beneficial, allowing Coda to secure highly prospective ground at low cost while sharing risks. The partnership with an established uranium producer in Boss Energy provides further technical expertise.

With its clear strategic rationale and upside potential, the tenement acquisition aligns with Coda's approach of combining targeted exploration with technical de-risking to systematically build up a major new copper-cobalt production hub in South Australia's copper belt.