SLM completes geophysics, copper drilling to come in 2025

Published 15-OCT-2024 12:00 P.M.

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Our copper exploration Investment, Solis Minerals (ASX: SLM) today announced that it has completed a combined drone and ground magnetometry survey over its Cinto copper permits in southern Peru.

The survey identified magnetic anomalies that coincide with alteration zones detected from previous remote sensing work, highlighting priority targets for follow-up exploration.

This was at it’s promising Cinto project in Peru, which sits just 10kms south east of the massive Toquepala porphyry system, where there is an operating copper mine run by $137BNBN capped Southern Copper Corporation:

(Source)

Southern Copper Corporation is one of the top 10 copper producing companies in the world. (Source)

So naturally, interest in the Cinto project could increase if the company is successful in firming up drill targets at this particular Peruvian copper project.

In a July 2024 announcement SLM showed off some vividly coloured copper grab samples with grades as high as 7%:

(Source)

We covered in the below note:

Microcap explorer Solis Minerals (SLM) setting stage for Peru copper drilling

Peru is the 2nd largest producer of copper in the world after Chile, so we see this as an excellent jurisdiction for SLM to operate in.

SLM has been quick to pick up highly prospective ground in Peru, as evidenced by the company’s recent announcement of new ground:

SLM adds to copper ground in Peru

While SLM failed to deliver at its Brazilian lithium projects, we remain Invested in SLM to see it find success at its Peruvian copper projects, which are shaping up nicely.

We are firm believers in the long term copper macro thematic, as it remains crucial to electrification and decarbonisation.

We’ve recently seen BHP involved in ~$16.5BN worth of deals to acquire copper projects, including a 2023 acquisition of copper-gold producer OZ Minerals for $9.6BN and a ~$4.8BN acquisition of Filo Corp in conjunction with Lundin Mining.

BHP also recently released an excellent copper report called “How copper will shape our future“.

Below you can see a chart from that report, which indicated that copper grades at mines around the world have declined 40% over the last three decades:

(Source)

So, if SLM can define a high grade copper deposit at one or more of its Peruvian copper projects, we think this could lead to a sustained re-rate for the company.