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Firetail Resources Limited ("Firetail" or "the Company") (ASX: FTL) is pleased to provide an update on future works planned for the Picha Copper Project (“Picha) in Peru.
Highlights:
- Maiden diamond drilling (“DD”) program to commence at Picha in the first week of October 2023.
- Exploration camp installation at Picha is nearing completion.
- Drilling contract signed and equipment mobilised to site, with drill rig expected on site at the end of this month.
- Drilling platforms are well advanced with several drill pads and access tracks completed.
Executive Chairman, Brett Grosvenor, commented:
"We are very pleased with the progress made at the Picha Copper Project in Peru.
“The local team in Peru is on target to commence drilling in the first week of October and their approach to the preparation has been extremely thorough. Picha has undergone a substantial exploration program in the past 18 months to identify a significant number of targets, and the team has done an excellent job to advance these targets to the drilling stage.
“The excitement is building within the Firetail team and we are confident that the targets identified have potential to position the project for a significant discovery in the coming months.
“We look forward to the commencement of drilling in the next two weeks.”
Figure 1: Drill site preparation at Cumbre Coya target
Transaction Completed
On 21 August 2023, shareholders of Firetail voted to approve the issue of shares and performance rights relating to Firetail’s acquisition of up to an 80% interest in Valor Resources Limited’s (“Valor”) (ASX:VAL) Picha Copper Project and Charaque Copper Project in southern Peru1.
Under the acquisition agreement, Firetail acquired up to 80% of the issued share capital of Kiwanda S.A.C. (Kiwanda) which holds the mining concessions that make up the Picha and Charaque Projects.
The transaction was completed on 6 September 20232 and has resulted in Firetail inheriting Valor’s experienced in-country management and technical team as well as an Earn-in Agreement with leading global gold and copper producer Barrick Gold Corporation covering the Charaque Project3.
Figure 2: Picha and Charaque Copper Projects in Peru
Approvals and Drill Planning
Final regulatory approval was received by Valor4 and announced on 4 August 2023. Receipt of the Autorización de Inicio (Permission to Begin Drilling) from the Peruvian Ministry of Energy and Mines (“MEM”) is a key milestone for the Picha Copper Project, and allows the Company to commence the maiden drilling program within the approved “Effective Area”.
The drilling permit allows drilling of up to 120 holes at Picha, comprising of up to 40 drill platforms with three holes planned per platform. A maiden diamond drilling program of around 5,000m is proposed to test four targets within the Effective Area – Cobremani, Cumbre Coya, Maricate and Fundicion (see Figure 3 below).
Firetail has selected a well-regarded local drilling contractor to undertake the maiden drilling program.
Camp installation has progressed according to plan and completion works are now underway on the final fittings.
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FTL:AU
Firetail Resources
Overview
Firetail Resources (ASX:FTL) is an Australian exploration company building a strategic portfolio of battery metals in Australia and Peru.
Batteries are a critical foundation of the transition to a greener and more sustainable future. Consequently, between electric vehicles and renewable energy, global demand for batteries is expected to increase from 185 GWh in 2020 to over 2,000 GWh by 2030. This is expected to have a profound impact on the market for battery and base metals such as lithium, nickel, cobalt and copper.
Firetail Resources aims to leverage this significant opportunity to find the critical resources to support the world’s journey to electrification. Under the direction of a proven board and management team with decades of collective experience in mining exploration, development and production, Firetail Resources boasts a diversified asset portfolio with multiple drill-ready targets and advanced exploration projects that all have tremendous potential to increase shareholder value.
Firetail's Australian Yalgoo-Dalgaranga, Mt. Slopeaway and Paterson projects are all located in proven geologic domains and display significant upside for substantial mineral resources. The company's more recent acquisition of two projects in Peru strongly complements these assets.
As the world's third-largest copper producer, Peru has a massive mining industry with a strong prominence in the country’s national economy. Long recognized as an excellent, low-risk mining jurisdiction, the country recently approved roughly $600 million worth of new mining projects. Unsurprisingly, nearly every major global mining company is either operating in the jurisdiction or is aware of it.
Although only recently acquired, Firetail's Picha Copper project is now one of its most promising assets. The Picha Project was acquired as part of a deal that includes a farm-in agreement with Barrick Gold Corporation (TSE:ABX) for an earn-in of up to 70 percent interest in the Charaque Project.
Picha is located along a NNW regional trend of carbonate-replacement (CRD) and epithermal deposits, including the San Gabriel Gold Project (Buenaventura NYSE:BVN), which is fully permitted and in construction; and the Berenguela Ag, Cu, Mn, Zn Deposit (Aftermath Silver TSXV:AAG).
In 2024, Firetail Resources announced the acquisition of York Harbour copper project, Canada. The company has signed a binding option agreement to acquire up to 80 percent of York Harbour project via a staged earn-in. York Harbour is a Cyprus-style volcanogenic massive sulphide (VMS) exploration project, located 180 km west-south-west of FireFly Metals Ltd (ASX:FFM) Green Bay copper project.
With a diversified portfolio of battery and base metals assets in two leading mining jurisdictions, Firetail is perfectly positioned to take advantage of the transition to green energy, driving considerable shareholder value in the process.
Company Highlights
- Demand for batteries is expected to exponentially increase by 2030, consequently driving the demand for battery and base metals.
- An Australian exploration company, Firetail Resources is well-positioned to take advantage of this market trend via a portfolio of Australian and Peruvian battery metals projects.
- Firetail's drill-ready assets are supported by smart field exploration and drilling programs to unlock their resource potential and increase shareholder value.
- The company's current portfolio of assets includes lithium, copper, cobalt, manganese, molybdenum, lead, zinc and nickel.
- All of Firetail's exploration activities are directed by a board and management team with a proven track record in mineral exploration, development and production.
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Diversified Portfolio of Battery Metals Assets in Australia and Peru