Stavely on track for a “high-grade, long-life” copper mine in Australia, says top Sydney analyst

Copper explorer Stavely Minerals is on track to define and develop a high-grade, long-life copper mine at its namesake project in Victoria, with the added speculative appeal of a Tier-1 porphyry deposit.
15th April 2021

Copper explorer Stavely Minerals (ASX: SVY) is on track to define and develop a high-grade, long-life copper mine at its namesake project in Victoria, with the added speculative appeal of a Tier-1 porphyry deposit at depth, according to respected Sydney-based resource analyst Jean-François Bertincourt.

JF Bertincourt, whose equity research firm Terra Studio covers a number of emerging resource stocks, is a former senior mining analyst with Canaccord and a Vice President with banking giants BNP Paribas and Société Générale.

In an initiation note on Stavely, he says the company’s investment proposition should be viewed in the context of sustained copper prices “with price risk on the upside”.

“Discovered in September 2019, the Cayley Lode shows some strong similarities with the Butte (Montana) and Magma (Arizona) deposits,” he wrote.

“For those unfamiliar with the US copper deposits mentioned, the closer analogue in Australia is the CSA mine operated by Glencore.

“The Cobar copper-silver deposit, discovered in 1871, has been mined for more than 100 years to a current depth of in excess of 1,000m. As at 31 December 2020, the ore reserves amount to 7.7 million tonnes at 3.8% Cu and 16g/t Ag. In 2020, the CSA mine produced 46,200t of copper in concentrate and 516,000oz of silver.

“In 2019, Glencore received an offer to buy the CSA mine for US$575 million by Aeris Resources Limited.

“Compared to Cobar, the Stavely project adds a confirmed 1,500m strike extent to a 1,000m depth extend defined so far.”

In his initiation note, JF Bertincourt says Stavely is well advanced towards defining a “globally significant copper project” based on the Cayley Lode, with its initial focus on defining an open pit mineral resource to a depth of 200m below surface.

The next stage will be to target a mineral resource on lodes extending at depth while in parallel progressing development studies based on a growing mineral resource inventory and continuing to pursue the Tier-1 porphyry discovery at depth.

He says that since the discovery hole into the Cayley Lode of 32m at 5.9% Cu, 1.0g/t Au and 58g/t Ag from 62m drill depth, Stavely has completed more than 90 holes into the Cayley Lode and parallel structure with “numerous outstanding intercepts in terms of width, copper grade and at times good precious metals credits.”

He says the tight drill spacing of the resource drill-out and geo-statistics show that a significant portion of the maiden mineral resource is expected to be in the Indicated category.

To read the full Terra Studio initiation note on Stavely Minerals, click here.

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