Promising Drilling Results Indicate Potential Expansion in Major Mining Project

Source: Streetwise Reports 07/10/2024

Emerita Resources Corp. (TSX-V: EMO; OTCQB: EMOTF; FSE: LLJA), a mineral exploration company, has announced promising drilling results from the El Cura deposit area, part of its wholly-owned Iberian Belt West project (IBW). What else do these results have to say about things moving forward?

Emerita Resources Corp. (TSX-V: EMO; OTCQB: EMOTF; FSE: LLJA), a mineral exploration company, has announced promising drilling results from the El Cura deposit area, part of its wholly owned Iberian Belt West project (IBW). The recent drilling activities have intersected substantial mineralization, indicating potential expansion of the deposit.

Drill Hole EC014, the deepest and thickest intercept to date in the El Cura area, intersected 11.4 meters of massive sulfide at approximately 350 meters vertical depth. Located along section 9750E, this drill hole is part of a series of five that have all intersected mineralization, showcasing the continuity of the mineralized zone from near-surface to significant depths. The mineralization in section 9750E is more than 600 meters west of the historic El Cura mine workings, underscoring the potential for further expansion.

Widely spaced core drilling has intersected significant mineralization over a 400m x 300m area within a mineralized corridor extending at least 600 meters. Initial drilling results include hole EC007, which intersected 2.2 meters grading 2.9% Cu (copper), 2.3% Pb (lead), 4.6% Zn (zinc), 2.81 g/t Aug (gold), and 82.5 g/t Ag (silver). These results, along with recent findings, have prompted Emerita to add a second drill rig and plan an additional 15 drill holes to delineate the new El Cura mineralization further.

A Look At Critical Metals

In a July 3 BullionVault article, it was highlighted that gold and silver saw significant gains as the US labor market weakened and the services sector showed signs of contraction. “Gold and silver leapt against a falling Dollar on Wednesday as new data showed the US labor market weakening while activity across the services sector has suddenly begun shrinking,” the article noted. The article further reported, “Gold priced in Dollars has risen 13.9%, silver 27.4%.” This surge reflects the metals’ roles as safe-haven assets during times of economic uncertainty.

UBS, a Swiss bank and global bullion market maker, emphasized gold’s attractiveness in the current geopolitical climate, stating, “We see gold as an attractive geopolitical hedge and portfolio diversifier, and rate the metal as most preferred.” Rhona O’Connell, a bullion-market specialist at brokerage StoneX, also commented on the supportive U.S. economic data, stating, “[These] U.S. numbers are gold friendly.”

Technical Analyst Clive Maund said, “Emerita Resources is exploring and delineating a wide range of base and precious metal deposits, which is definitely the right place to be at this time with a massive broad-based commodities and especially metals bull market in prospect that has already begun.”

According to a report from the World Gold Council on June 18, central banks have continued to show strong interest in increasing their gold holdings.

“More than eight in ten (81%) of respondents to a central bank survey have indicated that they expect reserve managers will continue to increase their gold holdings in the next 12 months,” the report noted. This sentiment was echoed by Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific, who said, “Extraordinary market pressure, unprecedented economic uncertainty, and political upheavals around the world have kept gold front of mind for central banks.”

The copper market has been experiencing significant price increases due to supply shortages and increasing demand from the green energy sector. According to a May 27 report from Credendo, “Copper prices have been on an upward trend since the end of 2023. They have surged over 20% since mid-February 2024, reaching a two-year peak of nearly US$10,000 per tonne due to copper ore shortages.”

The report also highlighted the potential for continued growth in copper demand, stating, “Copper demand could double by 2035. The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy and the boom in investments in green technologies (e.g., renewables and electrical vehicles) and in AI technologies.”

Additionally, the expansion of major copper mining projects is expected to bolster supply in the coming years. “In the Democratic Republic of the Congo (DRC), copper mining production is expected to grow strongly in 2024. The Kamoa-Kakula Copper Complex is expanding, and the third phase of the expansion is expected to be completed by the end of 2024,” the report stated.

Company Catalysts

The recent drilling results at El Cura represent a significant catalyst for Emerita Resources Corp., highlighting the potential for substantial expansion of the deposit.

David Gower, P.Geo., CEO of Emerita, expressed optimism about the results, stating in the company news release, “We are very encouraged with the recent results at El Cura. Drilling on the western side of the area has returned excellent copper-gold values over significant widths, and this zone is growing significantly. A step out such as EC014 with the thickness and continuity we are seeing in the mineralized zone represents a material increase to the El Cura deposit.”

The addition of a second drill rig is a strategic move to accelerate the exploration program, aiming to test the continuity of mineralization both at depth and along strike. The company’s commitment to thorough quality assurance and quality control measures, including reanalysis of samples at independent laboratories, ensures the reliability of these promising results.

The release touted Emerita’s proactive approach to expanding the El Cura deposit and its focus on maintaining high standards of quality control, which underscore its potential for future growth and value creation.

Expert Opinions

*In a May 28 report, technical analyst Clive Maund provided a comprehensive overview of Emerita Resources, emphasizing the company’s strategic positioning and recent accomplishments. He noted, “Emerita Resources is exploring and delineating a wide range of base and precious metal deposits, which is definitely the right place to be at this time with a massive broad-based commodities and especially metals bull market in prospect that has already begun.”

Maund highlighted the significant discoveries made on the company’s properties, particularly at the La Romanera property. He stated, “Elevated copper and gold grades have been discovered at the La Romanera property, which is good to know given that copper is entering probably its biggest bull market ever with impending massive supply shortages on the horizon and gold is also embarking on a massive bull market due to the current fiat money system reaching its nemesis.”

Additionally, Maund pointed out the positive business environment for resource companies in Europe, stating, “It is a big positive that the business environment for resource companies in Europe is improving.” [OWNERSHIP_CHART-10036]

Regarding stock performance, Maund noted that Emerita Resources’ stock has shown impressive growth, stating, “The strong rally this month has the characteristics of an ‘impulse wave,’ i.e., a move in the direction of the primary trend, and thus marks the start of a major bull market,” he stated.

Ownership and Share Structure

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 5.33% of the company.

According to Reuters, Michael Lawrence Guy owns 1.75% of the company, David Patrick Gower owns 1.12%, Joaquin Merino-Marquez owns 0.84%, Catherine Stretch owns 0.65%, and Marilia Bento owns 0.4%.

Institutions own 1.11% of the company, Reuters reported.

This includes Merk Investments LLC 1.11%.

According to Refinitiv, there are 247.32 million shares outstanding with 234.13 million free float traded shares, while the company has a market cap of CA$153.3 million and trades in a 52-week range of CA$0.26 and CA$0.78.

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Important Disclosures:

1. Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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* Disclosure for the quote from the Clive Maund article published on May 28, 2024

1. For the quoted article (published on May 28, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE, )