Premium Resources Ltd. has reported positive drill results from its Selebi Mines project in Botswana, highlighting significant mineral intercepts that exceed existing resource grades. The company plans additional drilling to further explore these findings. Additionally, a recent upsize of their private placement indicates strong investor interest. With a focus on revitalizing its projects and a favorable market outlook for copper, Premium Resources is set for potential growth.
Premium Resources Ltd. (PREM:TSX.V) recently shared encouraging stepout drill results from its underground Selebi Mines copper-nickel-cobalt project in Botswana, according to their Jan. 27 news release. Notably, two significant mineral intercepts were recorded outside the existing resource area of the past-producing Selebi North underground mine—14.2 meters at 5.14% copper equivalent from hole SNUG-24-172, and 14.4 meters at 3.99% from hole SNUG-24-144. Dr. Stefan Ioannou of Cormark Securities stated that these findings expand the known mineralization at depth, surpassing the existing grade of 3.25% copper equivalent.
The company intends to follow up on these promising results with further drilling using its own rigs. One rig will focus on the South Limb, while the second will target depths between the N2 and N3 Limbs. Additionally, Premium Resources announced on Feb. 20 an upsize of its recent private placement from CA$36 million to CA$44 million, attributed to high demand. Units are selling for CA$0.30 each, attracting a new group of strategic investors, including Frank Giustra and others.
The refinancing efforts are slated to conclude in early March, appointing Morgan Lekstrom as Premium Resources’ new CEO. Lekstrom’s experience includes roles at several important mining projects, making him a promising leader for the company. Furthermore, Premium Resources has converted a CA$20.9 million term loan, enhancing its financial flexibility as it refocuses on its Botswana assets.
In the Phikwe region, the company is revitalizing the mining industry by advancing both the Selebi Mines and the Selkirk project, according to its February Investor Presentation. Both projects have confirmed mineral resources and necessary permits in place. Giustra emphasized that their asset portfolio is undervalued compared to industry peers, and they see potential for increases in value in the near future.
Globally, copper is recognized as crucial for the clean energy transition, artificial intelligence, and data centers, according to a January Sprott report. The demand for copper is escalating, particularly in energy transition sectors expected to see a compound annual growth rate of over 10%. Pricing predictions suggest that significant demand will continue to build, with a notable focus on electric vehicles.
Currently, Cormark Securities’ Dr. Ioannou maintains a Buy rating on Premium Resources with a target price implying a potential return of 194%. With ongoing drilling activities and the potential for resource growth, Premium Resources finds itself strategically positioned in a market where supply constraints may drive prices further upward. Investors continue to explore various avenues, including ETFs and mining stocks, to gain exposure to this potentially lucrative metal.
In conclusion, Premium Resources Ltd. is making significant strides in advancing its copper-nickel-cobalt projects in Botswana, particularly the Selebi Mines. The recent drill results indicate promising expansions in mineralization, and the company’s financial restructuring is paving the way for future development. With strong market fundamentals backing the demand for copper, Premium appears well-positioned for substantial returns, supported by strategic investments and ongoing exploration activities.
Original Source: www.streetwisereports.com
