West Cobar Metals Identifies Copper, Gold and Carbonatite Targets in Albany Fraser Orogen

West Cobar Metals Ltd (ASX: WC1) holds a commanding tenement position in the highly prospective and underexplored southern extension of the Albany Fraser orogen.

West Cobar has been acquiring ground over the past year, and has now generated a number of new targets for copper, gold and carbonatites.

The wholly-owned Salazar Project covers 1,171 square kilometres and lies in the Biranup Zone, a structural extension of the Fraser Zone that hosts the Nova-Bollinger nickel-copper deposit.

Salazar features some of the highest grade saprolitic clay-hosted rare earth element and co-product resources discovered in Australia.

Previous drilling has defined rare earth element mineralisation in alkalic intrusive complexes and potential associated carbonatite systems.

Valuation proposition

What makes the potential of this company interesting, is the enterprise value.

With a share price of $0.053 and 122 million on issue, the company is capped at just over $6 million.

The cash balance at the end of March 2024 was $1.1 million, for an enterprise value of $5 million.

All this while the register remains tight, with 20% held by the board and management and over 53% by the top 20 holders.

Next steps at Salazar

Matt Szwedzicki, managing director, commented:

“We believe our ground has potential for copper – including IOCG and carbonatite related mineral systems.

“The fact that there is shallow transported cover means that limited exploration has occurred historically – our target areas have great potential but require aircore drilling to obtain bedrock geochemistry and map the geology.

“Now that we have converted Dundas Minerals’ retained mineral rights over three of the tenements into a net smelter royalty we will fast track exploration, heritage and approval processes in order to pursue these targets.”

Salazar overview

Salazar is located near Esperance in southern Western Australia and is a unique mix of high-grade critical minerals in saprolite clays near surface.

Across two deposits, Newmont and O’Connor, is a substantial indicated and inferred resource of 190 million tonnes at 1172 ppm total rare earth oxide.

The project is close to essential infrastructure with port, rail and air services nearby.

 

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