(TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") reports the following updated share capital and voting rights, in accordance with the Swedish Financial Instruments Trading Act: View PDF version
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Pursuing Near Term Revenue Opportunity Producing Construction Materials from Whim Creek Waste Rock
Anax Metals Limited(ASX: ANX) (Anax or the Company) is pleased to advise on the waste rock repurposing initiative. The Whim Creek Copper-Zinc Project, located 100 km southwest of Port Hedland, is jointly held by ANX (80%) and DVP (20%). Anax is focussed on developing a copper mine and processing hub to produce copper concentrates and cathode along with valuable by-products. A definitive feasibility study1 and subsequent leaching study2 detailed an initial 8-year mining project that will deliver in excess of $400M in free cashflows.
- Anax is pursuing an opportunity to generate near term revenue through the production of road base / aggregates from existing waste rock
- Working with Castle Civil Pty Ltd, the team is looking to develop a business that will reclaim waste rock and turn it into valuable products
- A commercial scale trial is underway producing material for blending to road base products
- Whim Creek is fully permitted for mining and processing activities and the site is ideally located to supply road base and aggregate products to a rapidly developing Pilbara region
- Aggregate production at Whim Creek will be complementary to the planned regional copper and base metals hub while delivering environmental benefits through the repurposing of waste.
- The team continues with its primary focus on the growth of the copper business through the development of the processing hub at Whim Creek and consolidation and exploration
Anax’s Managing Director, Geoff Laing commented: “Anax is pleased to be pursuing an early-stage revenue opportunity for Whim Creek, while we advance growth initiatives to establish the project as a production hub for the sustainable development of copper and base metals projects in the Pilbara. This innovative approach to repurposing waste materials underlines our commitment to maximise shareholder value through diversified revenue streams from the project. Since acquiring Whim Creek, the Anax team has committed significant resources to improving the site, including key upgrade works, resulting in revoking the Environmental Protection Notice and securing operating permits for the planned mining operation. Repurposing the existing waste rock dumps is another positive initiative that can potentially deliver economic and environmental benefits for us and the region.”
Figure 1: Location of the Whim Creek Project3,4,5,6
While the Company remains 100% focussed on the Whim Creek Copper project, it is investigating the potential to efficiently produce road base, fill and aggregate materials utilising the readily available mined and stacked waste rock and existing site infrastructure. Whim Creek is an established site that is fully permitted for mining and producing copper concentrates and associated products. Site infrastructure includes process plant, water and power systems, offices, roads, and a camp. Applications have been submitted to the Department of Energy, Mines and Industrial Regulation and Safety (DMIRS) and the Department of Water and Environment Regulations (DWER) for relevant amendments to the existing permits to facilitate the repurposing of existing waste rock. The distribution of potential products will be via the northwest highway, which runs directly past the Whim Creek site. Anax intends to pursue producing repurposed waste products in parallel with its ongoing copper growth strategy and closing out financing for the planned copper project.
Click here for the full ASX Release
This article includes content from Anax Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Codelco Makes US$500 Million Bid for 10 Percent Stake in Quebrada Blanca Mine
Chilean state-run copper giant Codelco has made a US$500 million bid to acquire a 10 percent stake in the Quebrada Blanca mine, operated by Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK).
According to a Tuesday (September 3) Bloomberg report, the offer, directed to fellow state entity Empresa Nacional de Minería (Enami), is currently under consideration by Enami's board. The move is part of Codelco’s strategy to sustain its position as the world’s leading copper supplier amid declining production levels.
Enami’s stake in Quebrada Blanca represents a carried interest, meaning it is not responsible for the mine’s capital expenditures. The sale, if approved, would provide Enami with funds to address financial challenges.
The company has faced consistent losses in recent years due to its role in processing minerals for small-scale miners in Chile. The infusion of US$500 million could help reduce its debt burden while limiting the necessity for public funding.
Quebrada Blanca, located in Northern Chile, is a significant copper mine that is primarily owned by Teck Resources (60 percent), with Japan’s Sumitomo Metal Mining (TSE:5713) holding a 30 percent interest.
As mentioned, acquiring Enami's stake in Quebrada Blanca would help Codelco stabilize its copper production, which dropped to its lowest level in 25 years in 2023. It would also help the company retain its title as the world's top producer.
However, the proposed purchase is not without obstacles. The Chilean National Mining Society (Sonami), which holds a position on Enami’s 10 member board, has voiced concerns about the process.
Sonami believes any sale of the Quebrada Blanca stake should be conducted via an open and competitive bidding process, not a direct transaction with Codelco — potentially delaying or complicating the approval process for the bid.
Regardless, the move comes at a critical time for Chile, as the nation faces challenges in maintaining its status as the top global copper producer. Declining ore grades, aging infrastructure and competition from other copper-producing countries have all combined to put pressure on the state’s output.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Golden Deeps Intersects 80m Mineralised Zone with Semi-Massive Copper and Zinc Sulphides at Havilah Project, Lachlan Fold Belt, NSW
Up to 18.5% Copper & 34.8% Zinc in initial pXRF readings* on drillcore
Golden Deeps Ltd (ASX: GED) is pleased to announce the intersection of significant sulphide mineralisation in all three completed diamond drillholes at its 100% owned Havilah Project in the Lachlan Fold Belt Copper-Gold Province of central NSW (see Figure 1, below, and regional location, Figures 3 and 4).
- Thick copper and zinc sulphide mineralisation has been intersected in diamond drilling of key targets at the Company’s Havilah Project in the world-class Lachlan Fold Belt Copper-Gold Province of NSW1,2 (see Hazelbrook Prospect plan - Figure 1, cross section - Figure 2 and location plans - Figures 3 and 4).
- Diamond drillhole HVD003, which tested the extensive Hazelbrook copper soil and rockchip (>1% Cu) anomaly3, intersected patches of semi-massive copper (chalcopyrite) and zinc (sphalerite) sulphides as well as vein and disseminated sulphides across an 80m zone in the targeted Sofala Volcanics (see Image 1 showing the sulphide mineralisation; Appendix 1 for drillhole details & Appendix 2 for descriptions of mineralisation).
- The mineralised intersection in HVD003 included a 28m zone (from 85.8m) of more intense sulphide mineralisation which produced high-grade portable XRF (pXRF) readings of up to 18.5% Cu and 34.8% Zn, averaging 0.5% Cu and 0.7% Zn* (see Appendix 3 for full tables of pXRF readings and Cautionary Note below).
- Diamond hole HVD001, which tested the Hazelbrook North Cu-Zn-Au anomaly3, intersected 40m of silicified breccia/veining and disseminated sulphides (py +/-cpy, sph) from surface, and HVD002, which tested a strong Induced Polarisation (IP) anomaly1, intersected a 130m zone of altered mafic volcanics with scattered veinlets and disseminations of pyrite and rare chalcopyrite (see Figure 1, location, and Appendix 2, descriptions).
- The diamond drilling program continues with HVD004 testing the Hazelbrook anomaly 200m along strike to the northeast of HVD003, again under rockchip sample values of >1% Cu3 (see Figure 1).
Image 1: HVD003, 85.8m to 86m: semi-massive sulphide patches of copper sulphide - chalcopyrite (cpy) and zinc sulphide - sphalerite (sph) in Ordovician mafic volcanics (pXRF readings up to 18.5% Cu, 34.8% Zn* – see Appendix 3)
*Cautionary Note in relation to disclosure of visual estimates and pXRF readings described in this release and detailed in Appendix 2 and 3 respectively: The Company cautions that visual estimates of sulphide mineralisation abundance and pXRF readings should never be considered a proxy or substitute for laboratory analyses. Laboratory assays (ICP MS/OES and Fire Assay for gold) are required to determine representative grades and intervals of the elements associated with the visible mineralisation reported from geological logging and pXRF readings. Core is being sampled for submission to ALS laboratories in Orange, NSW. Laboratory analytical results are expected within 3 to 6 weeks.
Golden Deeps CEO Jon Dugdale commented: “The intersection of sulphide mineralisation in all three initial holes at Havilah, including thick zones of copper and zinc sulphide mineralisation in HVD003, indicates we’re on top of a large porphyry-sulphide system with similar characteristics to other major copper-gold discoveries in the Lachlan Fold Belt such as Cadia-Ridgeway and the recent Boda-Kaiser discovery.
“We look forward to completing the remainder of our diamond drilling program and receiving the laboratory results from the holes completed, which will be released as soon as they come to hand and are compiled.”
Figure 1: Havilah Project, soil and rockchip copper anomalies on magnetics image with current drilling
The third hole of the program, HVD003, tested the Hazelbrook target where an extensive northeast-southwest trending copper-zinc soil anomaly has been defined with rockchip values of over 1% Cu3 (Figure 1).
HVD003 intersected a sulphide mineralised zone from 85m to 119m which included patches and stringers (averaging 1-2%) of the copper-sulphide - chalcopyrite and the zinc-sulphide - sphalerite. These patches occur within extensively altered (Ordovician) mafic volcanic/volcanoclastic rocks with disseminated chalcopyrite-sphalerite-pyrite mineralisation which occurs from 85m to 166m (over 80m) (see Appendix 2).
The mineralisation aligns with the surface soil and rockchip copper-zinc anomaly, striking northeast, dipping to the northwest, and the drilling intersection approximating true width (see cross section, Figure 2, below).
Click here for the full ASX Release
This article includes content from Golden Deeps, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Looming Copper Supply Crunch Highlights Need for New Discoveries
Governments attempting to move toward electrification are learning that copper is a major component of that effort.
Countries seeking the security of their vital materials through protectionism is one of the factors throttling copper demand.
There have been no large copper discoveries since 1990. Currently, most copper production comes from expanding previous deposits. Yet the demand for copper until 2050 is greater than the total copper produced throughout human history.
What’s driving rising copper demand?
Electric vehicles are a major driver of copper demand because each requires at least twice the amount of copper than internal combustion engines. Wind turbines, solar panels and electricity infrastructure also use copper. Increased adoption of solar- and wind-generated power, and storage batteries, will require even more.
Copper consumption by green energy sectors globally is expected to jump fivefold in the 10 years to 2030, data from consultancy CRU Group shows.
Supply, however, cannot keep up with demand. A new copper mine requires more than 10 years from exploration to production. Increasingly difficult regulations slow development. For example, Chile, which is the largest copper producer, has demanded a royalty increase. The mining industry claims the burden of the higher royalty is hitting it when companies are struggling with declines in ore grades.
The cyclical nature of commodity markets resulted in underinvestment. Previous low copper prices led to reduced exploration budgets and fewer discoveries.
Copper producers view redistributing existing assets through M&A as faster, less costly and less risky than exploring and developing new properties. Consolidating creates bigger companies with better economies of scale and operational efficiency, with lower costs. Integrated supply chains and improved processes give producers more influence during price and regulation negotiations.
Focusing on M&A instead of discoveries has slowed response to price signals and has led to prolonged market tightness, which makes for a bullish outlook.
As increased demand outpaces current supply, rising prices ought to invigorate the copper market.
Historical production and discoveries
When China began industrializing and urbanizing hundreds of millions of people it caused a commodities supercycle. The current copper supercycle is global, sees greater demand, and is tangled with several countries’ national security.
Higher US tariffs and materials import bans are meant to assist stateside industries while tackling security concerns about Chinese control over minerals.
China will run parallel or duplicate supply chains from the same limited global supply, while producers look for other means of increasing copper output.
Analysts identified 239 copper deposits discovered between 1990 and 2023, containing 1.315 billion tonnes of copper in reserves, resources and past production. Of those, five have at least 500,000 tonnes of contained copper.
Most of this comes from the expansion of older discoveries and deposits found during the 1990s. Despite exploration budgets increasing 12 percent in 2023, there were only four discoveries during the previous five years (2019 to 2023) totaling 4.2 million tonnes of copper, underscoring the decline in major discoveries.
Unless this exploration trend reverses, there will be fewer discoveries.
Copper supply landscape
While copper recycling rates are rising, a truly circular economy in which it’s almost entirely recycled is unlikely. Aurubis (OTC Pink:AIAGF,ETR:NDA) for example, claims almost half of its copper cathodes are made from recycled material, yet admits it will be decades before it reaches 100 percent.
Increasing copper reserves is accomplished by finding deposits large enough to turn into mines or by copper companies lowering the cut-off grades. A cut-off grade is the minimum grade necessary for a unit of rock to be economically extractable at a given price.
Any ore below that grade remains in the ground. When prices rise, the producer earns more per tonne and can lower the cut-off grade while still profiting.
The industry head grade was already 30 percent lower by 2015 than in 2001, while the capital cost per tonne had risen fourfold.
A Wood Mackenzie Metals and Mining division report states that delivering the base metals to meet Net-Zero 2050 “strains project delivery beyond the breaking point” from people and plant to financing and permitting. Copper “sits at the nexus of the energy transition.”
Net-Zero 2050 requires 19 million tonnes of additional copper annually. The equivalent of BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) Escondida (1 million tonnes annual production) must be discovered and enter production every year for the next 20 years.
That means global copper production must grow by one million tonnes annually for two decades until it reaches 40 million tonnes by 2040. That’s one Escondida or two Collahuasis (0.6 million tonnes annual production) per year, every year, for 20 years.
Achieving half that goal, 10 million tonnes per year by 2040, requires one new Collahuasi mine per year for the next 20 years. Yet none of the new copper mines entering production can exceed 200,000 tonnes per annum.
Agreements already exist at four of the new copper supply mines. In Kamoa-Kaukula, owned by Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF), all initial production is split between two Chinese companies, one of which owns 39.6 percent of the joint venture project.
Emerging new project with large-scale potential
Located about 25 kilometres southwest of the regional center of Halls Creek on the Great Northern Highway in Northeastern Western Australia, the Koongie Park copper-zinc project lies in the Halls Creek Mobile Belt, which also has the Savannah (Sally Malay) and Copernicus nickel projects, the former Argyle diamond mine, and the Pantoro gold mining operation at Nicolsons.
AuKing Mining (ASX:AKN) has secured 100 percent (subject to a 1 percent net smelter royalty) ownership of the Koongie Park project. The 500 square kilometre area includes over 40 kilometres of the base metals prospective at Koongie Park.
Significant exploration drilling and analysis has been done there since the 1970s, usually increasing with commodity prices. Most drilling has been at the Sandiego and Onedin deposits. Through exploration and development, AuKing aims to become a mid-tier copper producer.
Also in Australia, True North Copper’s (ASX:TNC) Mount Oxide project is highly prospective, yet underexplored. The project’s Vero deposit has an updated mineral resource estimate that contains 15.03 million tonnes at 1.46 percent copper and 10.59 g/t silver for a contained 220,000 tonnes of copper and 5.13 million ounces silver.
In Arizona, World Copper (TSXV:WCU) is fast tracking the path to production for its Zonia project, a 1,732 hectare property past producer with an excellent potential for additional discoveries through an already identified pipeline of copper targets.
Investor takeaway
The widening supply/demand gap for copper is opening up opportunities for new projects with potential for significant new discoveries that will provide high-quality, game-changing new copper supply to the market. Investors looking at the copper market should keep an eye on these projects.
This INNSpired article is sponsored by AuKing Mining (ASX:AKN). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by AuKing Miningin order to help investors learn more about the company. AuKing Mining is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with AuKing Mining and seek advice from a qualified investment advisor.
Lundin Mining Announces Updated Share Capital and Voting Rights
News Provided by Canada Newswire via QuoteMedia
Can Deep-Sea Mining Solve the Critical Metals Supply Crunch?
As the world keeps transitioning toward an electric future, the need for critical minerals such as copper, cobalt and nickel is increasing.
However, as the demand for minerals soars, the challenges associated with bringing them to market is also increasing.
Over the past decade, lack of funding has led to fewer new discoveries and fewer projects entering the development pipeline. Red tape can vary by jurisdictions and push timelines to seem almost glacial. There are also social, legal and environmental concerns that can cause miners to avoid certain jurisdictions.
It’s these reasons why some are turning to the deep oceans as the next resource bonanza for the upcoming energy revolution.
Companies such as The Metals Company (NASDAQ:TMC), DEME (OTC Pink:DEMGF,EBR:DEME) subsidiary Global Sea Mineral Resources and Ocean Minerals subsidiary Moana Minerals are all working on technologies that will allow them to harvest polymetallic nodules from the ocean floor.
Table of contents
- What are polymetallic nodules?
- Where are polymetallic nodules found?
- How does deep-sea mining differ from traditional mining?
- Deep-sea mining's environmental impact
- What investors should know about deep-sea mining
What are polymetallic nodules?
Discovered in the late 1800s, polymetallic nodules are composed of concentric layers of manganese and iron around which nickel, cobalt, copper, titanium and rare earths contained in seawater are deposited.
Exactly how the nodules are formed is still the subject of scientific discussion, but one idea is that they begin to form around a nucleus like a shark’s tooth or a clam shell. The nodules then grow as the small amounts of metals found in seawater begin to collect on the surface. They may also accumulate as the water reacts with sediments on the seafloor and are deposited on the nodule.
Their formation is among the slowest of geological processes, with one centimeter of accumulation taking place over several million years.
Where are polymetallic nodules found?
Due to the way the nodules are formed, they can be found on sea and lake beds around the world.
So far, much of the exploration has been conducted on the abyssal plains within specific regions of the Pacific and Indian Oceans where the seabed is at a depth of 4,000 to 5,000 meters. The majority of these regions are in international waters and overseen by the International Seabed Authority (ISA), a UN agency.
Because of their occurrence, individual nations are also looking to mine the nodules in their sovereign waters.
Norway was among the first countries to do so when it passed legislation in early 2024 allowing for commercial-scale mining off its coast, though it said it wouldn’t do so without rigorous environmental study.
The Cook Islands have also looked into the potential of mining the seabed within its territory. The Prime Minister of the small island nation said in 2023 that it was looking into the feasibility of the practice, suggesting it was the right thing to do.
So far the most studied area is a region in the Eastern Pacific Ocean known as the Clarion-Clipperton Zone, which contains more nickel, manganese and cobalt than all resources found on land combined.
In 1981 it was estimated that a total of 500 billion metric tons of nodules can be found on the seafloor, but the amount that can be extracted would be far smaller due to the low number of economic mining sites.
The ISA defined a mine site as a portion of the seafloor where commercial operations could be sustained for 20 to 25 years, with annual production of 1.5 to 4 million metric tons of “good” nodules. To qualify as good, the nodules must meet certain criteria, hosting average grades of 1.25 to 1.5 percent nickel, 1 to 1.4 percent copper, 27 to 30 percent manganese and 0.2 to 0.25 percent cobalt.
Given these conditions, the estimations for the number of mining sites range between 8 and 225 with a combined speculative inferred resource of 480 million to 13,500 million metric tons.
How does deep-sea mining differ from traditional mining?
With demand set to rise and a limited amount of new resources set to come online over the next couple of decades, operators have looked to the ocean for new resources.
Because the main area being proposed for the mining polymetallic nodule beds is located in international waters, the ISA's oversight should mean greater consistency in the application of environmental and social regulations.
While mining the deep sea comes with its own logistical challenges, there are several other factors working in its favor. For example, the extraction of minerals from the seabed doesn’t have the requirement for massive earthworks like an open pit or underground mine does, because the nodules are just lying on the seabed or below a thin layer of sediment.
Additionally, deep-sea mining doesn’t require the type of manpower that traditional mines use. Extraction of resources could be carried out via remote control or fully autonomous systems. The styles of machines can range from rovers with scoops that scour the seafloor to pickers that find individual nodules.
Once acquired, the nodules are sent back to the surface vessel through a riser system that was developed by the oil and gas industry. On board, the nodules are sorted from the sediment, which is returned to the ocean.
Like ore recovered in terrestrial mining, the nodules need further processing to separate the individual metals. This process won’t be completed at sea but will occur back on land, requiring more traditional mining and smelting equipment.
Because of the depth of the deposits, it is nearly impossible for artisanal mining to take place. These operations are most often conducted outside of legal frameworks and carried out by criminal organizations that exploit workers, use violence to protect territory and ignore environmental regulations.
How could deep-sea mining impact the environment?
Overall, there are still many unanswered questions when it comes to the implications of mining the deep oceans. The companies wanting to mine the deep ocean are adamant that it is more environmentally friendly than terrestrial counterparts.
This is in part because the method of extraction doesn’t release tailings into the ocean, and the companies believe fears over pollution from sediment plumes are largely unfounded. Because the sediment doesn’t contain harsh chemicals like tailings do, it's largely benign and the vast majority is released on the seabed as extractors gather nodules.
What is of most concern to scientists is the quantities of sediment that are hauled to the surface and then released into the water column.
In a review of published literature, environmental watchdog Mining Watch Canada reported the effects of sediment plumes released into the ocean could have disastrous effects on phytoplankton blooms. These organisms are critical to the survival of countless species of marine life and are also responsible for the creation of significant amounts of the Earth’s oxygen.
The report notes that because plankton accumulate metals, this could cause a significant amount of harm to both ocean and land animals. The plankton could pass these up the marine food chain as other fauna consumes them. This could ultimately impact human food chains for commercially fished species.
The report also indicates that, depending on the depth that sediment is released into the water column, the plumes could limit the available light that plankton need to survive.
In a paper published in the journal Nature Geoscience on July 22, it was reported that the nodules themselves may be responsible for the creation of oxygen on the seabed. While the process is still being studied, experiments carried out by the scientific mission, funded in part by The Metals Company, demonstrated that more oxygen was being produced in nodule areas.
While they have yet to determine the cause, the theory they’ve put forward is that a higher voltage on the surface of the nodules is causing electrolysis in the surrounding seawater. Scientists are uncertain as to what the removal of these oxygen sources might mean to marine life on the seabed.
In its own response to the paper, The Metals Company said researchers used flawed methodology and there were contradictory studies that showed net oxygen consumption. The Metals Company also said it was preparing its own rebuttal to the paper.
The companies involved in undersea mining suggest the impact to life in the deep ocean will be minimal and recovery relatively quick, but observing the impact of historical trials at deep-sea mining suggest that recovery would be slow.
In the 1970s and 1980s, researchers tested the viability of mining within the Clarion Clipper zone by dredging the seabed and harvesting nodules.
In the past decade, scientists who had returned to the area discovered that evidence of dredging activities is still visible today Because the abyssal plains are made up of sediment beds, some of the fauna would use the hard surfaces of the nodules to cling to. In these regions the nodules are home to sponges and mollusks unique to the deep ocean. The scientists observed that the tracks left in the sediment were still visible and compacted, and ocean life had not returned to normal after nearly 50 years.
In a study produced in 2020 by The Metals Company, researchers suggested that 93 percent fewer organisms would be affected by mining nodules from the ocean floor versus a similar-sized region on land. They also said the abundance of life at the bottom of the ocean was less concentrated and less diverse than on land.
However, the same study also noted that there was still a lack of understanding of marine life at the depths deep-sea mining would be taking place and that “the actual number of species on or in the CCZ seabed and their geographic ranges remain unknown due to limited sampling.”
The deep sea remains largely unexplored and hosts an estimated 10 million species. It will pose a challenge for regulators who need to strike a balance between future energy needs and preservation and understanding of marine life deep below the surface of the ocean.
What should investors know about deep-sea mining?
For investors considering investing in the early stages of the deep-sea mining industry, there are several publicly traded companies in the space, including the ones we've discussed above.
However, the regulatory environment is currently uncertain, making the space a risky play.
In 2021, the Pacific island nation of Nauru invoked a two-year rule, forcing the ISA to hold to a deadline to finalize a code for mining the deep ocean. That deadline lapsed in July 2023 as 21 nations, including Canada, Fiji and Palau, called for a moratorium on deep-sea mining, while China, the UK and Norway have supported deep-sea mining.
Ultimately, the delays in ISA regulations has opened up the possibility of unregulated mining in international waters. Although no unregulated mining has begun, the ISA is in a challenging position as it works on regulations. While it presented a set of suggestions at its meeting this past July, it won’t have a ratified code until at least the end of 2025.
In the meantime, 19 exploration licenses have been granted to companies and governments to explore within the Clarion Clipper Zone for polymetallic nodules. This will allow them to advance technologies and study the mineral potential of the region.
The deep-sea exploration companies awarded contracts include:
- Nauru Ocean Resources, a subsidiary of The Metals Company
- China Minmetals (SHA:600058)
- Ocean Mineral Singapore, a subsidiary of Seatrium (OTC Pink:SMBMF,SGX:5E2)
- Global Sea Mineral Resources, a subsidiary of DEME
- Loke Marine Minerals
Ultimately, the ISA and national authorities must weigh environmental concerns against the effects of traditional mining and the increasing need for critical minerals.
But it's not just the ISA that needs to take a hard look at regulations, so too must those countries who are looking to host mining operations in their sovereign waters.
Although arguments remain on both sides, with a growing list of companies willing to extract resources from the ocean and a growing list of countries backing them, it seems quite possible that mining of the deep oceans will be authorized in some form. However, it won’t happen overnight.
While some of the technology may provide the ability to extract minerals from the seabed, companies still need to build processing facilities for nodules, which will take additional regulatory approvals with partner nations. In addition to the red tape, these operations will take time to build.
Investors should take a cautious approach, especially in cases where regulations are not finalized. Early opportunities may have significant potential, but they also pose the greatest risks and uncertainties, as was the case for Canada’s Nautilus Minerals, which was granted an exploration license in 2011.
The company aimed to mine copper and gold from seafloor massive sulfide deposits in the sovereign waters of Papua New Guinea, but faced significant opposition from Papua New Guinea locals who cited environmental concerns and the effect mining would have on the fishing industry.
Failing to get its project off the ground, the company faced bankruptcy and was bought by private company Deep Sea Mining Finance in 2019. Although the project failed to gain traction then, renewed interest in mining the seabed may provide Deep Sea Mining Finance opportunities to build on the original license in the coming years.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
High-Grade Copper-Zinc Confirmed at Evelyn
Anax Metals Limited (ASX: ANX, Anax, or the Company) is pleased to provide an update on drilling at the Evelyn deposit (Evelyn), part of the Whim Creek Project, located 115km southwest of Port Hedland (Figure 1).
- Preliminary continuous XRF scanning results confirm high-grade copper-zinc intersections
- Diamond drilling now completed with visually-observed sulphide mineralisation intersected in all holes
- Samples submitted for laboratory analysis with results expected in September
- Evelyn regional exploration programme commenced aimed at identifying Evelyn- type high-grade VMS base metal deposits
- Auger sampling and geophysics planned ahead of RC-drilling of high priority targets
Anax’s Managing Director, Geoff Laing commented: “These results again demonstrate the high-grade nature of this VMS deposit, and we are pleased with the outcomes of this drilling campaign. The team will continue to focus on leveraged growth outcomes at Whim Creek and we look forward to providing ongoing updates on the near mine exploration along with our regional consolidation strategy”
The Company has received results from continuous XRF-scanning of the first two holes, and these have confirmed the high-grade nature of the visual intersections. 1
CAUTIONARY STATEMENT ON CONTINUOUS XRF SCANNING RESULTS
Core was processed through the Minalyzer CS (Minalyzer) continuous XRF scanning unit in Perth. Six trays of calibration core samples were submitted with the new drilling, but no high-grade mineralisation was available. The results presented in this announcement are therefore considered partially calibrated as the upper limit of likely assays are not represented in the calibration core. The XRF results that are subject of this report will be submitted for laboratory assay and some variation from the results presented herein should be expected. Further information about Minalyzer is provided at the end of this announcement.
Figure 1: Location of the Whim Creek Project and Evelyn Deposit
The best visual intersection from the drilling programme previously reported1 is from Hole 24AED002A which encountered a strongly mineralised zone between 176.45 and 189.9m (Figure 2).1 Preliminary results from Minalyzer continuous XRF-scanner have confirmed the high-grade nature of the intersection (Table 1).
In addition, Evelyn mineralisation typically contains significant gold and silver enrichment. However, the continuous XRF-scanner is unable to accurately quantify gold and silver grades, and these are therefore not reported. Laboratory analyses will include gold and silver assays, and results for precious metals will be reported once received.
Table 1: Significant continuous XRF-scanning results for 24AED002A
Figure 2: Massive sulphide mineralisation in 24AED002A
Hole 24AED001 was designed to intersect the high-grade shoot below previous drill hole, JER074, which intersected 13m @ 2.56% Cu, 4.98% Zn, 1.92 g/t Au and 41 g/t Ag.2 The hole deviated in a southerly direction from its planned intersection position and clipped the base of the shoot. Preliminary results from continuous XRF scanning are shown below in Table 2. Laboratory analyses will include gold and silver assays, and results will be reported once received.
Table 2: Significant continuous XRF-scanning results for 24AED001
The final two holes of the diamond drilling programme at Evelyn have now been completed. Both 22AED003 and 222AED004 encountered sulphide mineralisation in the anticipated positions, including localised sections of strong copper and/or zinc mineralisation (Figure 3).
Figure 3: Sphalerite, galena and minor chalcopyrite in 24AED003
Cautionary Statement: Certain information in this announcement may contain references to visual results. The Company draws attention to the inherent uncertainty in reporting visual results. Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.
Both 24AED003 and 24AED004 encountered sulphide mineralisation, but they did not intersect the mineralised horizon at the planned target zones due to excessive swing to the south. The possibility for down-plunge resource extensions remains (Figure 4), and the Company anticipates that areas of potential resource growth will be tested in future with Reverse Circulation (RC) drilling. Summary logs for 24AED003 and 004 are provided below in Table 3 and Table 4.
Geotechnical logging of the first two diamond holes have completed. Encouragingly, the hanging wall mafic unit in which the decline at Evelyn will be developed, appears very competent containing minimal fractures or foliation.
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This article includes content from Anax Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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