Eagle Mountain Poised for Growth with Strong Oracle Ridge Assay Results

About Eagle Mountain Mining

Eagle Mountain Mining Limited (ASX: EM2) is a copper-gold explorer focused on the strategic exploration and development of the Oracle Ridge Copper Mine Project and the highly prospective Silver Mountain Project, both located in Arizona, USA.

The company is headquartered in Perth, Australia and its shares trade on the Australian Securities Exchange. Eagle Mountain's vision is to grow into a mid-tier copper producer with operations in the stable mining jurisdiction of Arizona.

The company's flagship asset is the 100% owned Oracle Ridge Copper Mine, located 30km northeast of Tucson, Arizona. Oracle Ridge is a past producing mine that was operated by various companies in the 1980s and 1990s. Eagle Mountain acquired the project in 2019 and has been working to upgrade the historical resources and explore for additional mineralization.

In addition to Oracle Ridge, Eagle Mountain controls a large greenfields exploration project called Silver Mountain, also located in Arizona. This project provides upside potential from new discoveries.

Strong Assay Results Expand Oracle Ridge Mineralization

Eagle Mountain recently announced strong assay results from channel sampling at the Oracle Ridge Mine Project, further expanding the known copper mineralization.

The latest assay results are from underground sampling at the highest level (6550 level) of the historical Northwest Mine area. They delivered both high grades and wide intersections, including:

• 15.3m at 4.02% Cu, 18.71g/t Ag and 0.14g/t Au
• 19.2m at 3.32% Cu, 37.66g/t Ag and 0.31g/t Au
• 35.7m at 2.60% Cu, 14.86g/t Ag and 0.08g/t Au

These new high-grade channel sample results continue the trend of mineralization increasing towards the upper levels of the deposit that was demonstrated from previous sampling on the lower 6500 and 6400 levels.

The consistently strong grades and widths of mineralization have now been traced across an area measuring approximately 150 metres by 120 metres over 3 underground levels. This expanded footprint of copper mineralization bodes well for mining studies by providing additional sources of mill feed.

Incorporating New Drilling into Updated Resource Model

In addition to the channel sampling, Eagle Mountain has been actively exploring Oracle Ridge over the past year with surface and underground diamond drilling campaigns.

Approximately 16,500 metres of new drilling has been completed, with assays received for 11,500 metres so far. These new drill results will be incorporated into an updated Mineral Resource estimate for Oracle Ridge scheduled for completion in Q4 2023.

The combination of positive channel sampling and drill results points to a significant increase in tonnage and contained copper pounds for the project. The previous 2019 JORC resource estimate for Oracle Ridge stood at 2.5Mt at 1.5% Cu for 38kt of contained copper.

Advancing Oracle Ridge Towards Development

With the expanded Mineral Resource update on the horizon, Eagle Mountain is also conducting extensive technical studies to evaluate the optimal development path for Oracle Ridge.

Metallurgical test work is ongoing, with detailed speciation analyses of copper mineralogy being used to fine-tune process flow sheet design. Trade-off studies are assessing potential mining scenarios and production rates.

The company is taking a flexible approach to the project evaluation, considering both open pit and underground mining options. Different processing alternatives are also being examined, including toll milling at nearby facilities.

This engineering work will feed into a Preliminary Feasibility Study expected for completion in 2023. Eagle Mountain is fully funded to advance Oracle Ridge to the PFS stage.

The project has extensive existing infrastructure in place from past mining operations, including a 1,000 ton per day processing plant, tailings storage facility, and over 6,500 metres of underground mine development.

Leveraging this existing infrastructure and permitting advantages of being a brownfields project on private patented mining claims puts Oracle Ridge on a fast track to getting back into production.

Upside Exploration Potential

In addition to the known copper mineralization at Oracle Ridge, Eagle Mountain is also unlocking exploration upside at the project.

One emerging new target area is the high-grade Golden Eagle polymetallic system located 2km west of the Oracle Ridge mine. Eagle Mountain recently completed an initial drill program at Golden Eagle that intersected broad zones of gold, silver, zinc and copper mineralization. These early results suggest Golden Eagle represents a large mineralized system and future drilling will be aimed at delivering a maiden resource.

Regional exploration drilling is also testing copper targets in the OREX area and identifying new zones across the wider Oracle Ridge property package. Success from this exploration provides scope to further boost resources beyond the known deposits, adding to the project’s expansion possibilities.

Conclusion

With cash reserves of ~A$15 million, Eagle Mountain is in a strong financial position to continue advancing Oracle Ridge while also pursuing new discoveries.

The pending Oracle Ridge resource update is expected to illustrate a significant increase in contained copper pounds, while ongoing technical studies will allow optimization of development plans.

Exploration results have demonstrated additional resource growth potential, both from nearby satellite deposits like Golden Eagle and new regional targets across the project area.

Supported by rising copper demand from the global energy transition and scarce new supply growth, Oracle Ridge is well placed to emerge as a medium-scale copper producer in a Tier One mining jurisdiction.

The project’s short timeline to production provides leverage to the copper price for investors. Eagle Mountain represents an attractive investment opportunity among the junior copper developer space.

The company offers exposure to a high-quality copper development asset with expansion upside in a proven mining district, underpinned by backing from management with a track record of success.