Potential for high profitability demonstrated
Australian copper explorer Tennant Minerals (ASX TMS / WKN A3ET0R) is able to report excellent results from recent metallurgical tests on ore from its high-grade copper and gold discovery Bluebird. These have shown that the company could produce high-grade copper concentrates grading between 24 and 29%, with gold grades of up to 4 g/t. At the same time, Tennant announced that the copper recovery rate was more than 90% and reached up to 98%.
The company had carried out the tests on material from diamond core drilling, which had shown significant copper and gold grades. For example, a sample with 2.7% copper and 0.47 g/t gold was turned into a concentrate with 29.6% copper and 3.96 g/t gold. Tennant achieved recovery rates of 94.4% and 75.8% respectively, there. Another sample yielded 25.4% copper and 1.84 g/t gold with recoveries of 91.3% and 79.3% respectively.
Potential for high profitability demonstrated
As Tennant Minerals CEO Vincent Algar explained, the “cleaner”, more detailed test work now reported built on the results of initial testing and was undertaken on a wider range of material types. The positive results would indicate the potential for positive results from future studies on the economics of mining and extraction to produce a saleable copper and gold concentrate.
In particular, a comparison with traded copper and gold concentrates and comparable material from successful mines in the Tennant Creek area would support the view that the concentrates produced at Bluebird have the potential to be extremely valuable at current copper and gold prices. And, as Mr. Algar pointed out, copper and gold prices continue to rise.
Next drill phase in preparation
Also in light of these strong metallurgical results, Tennant is already preparing the next drill program at Bluebird to further define, but also expand on, the discovery to date. The goal is to deliver a “substantial” maiden copper and gold resource estimate that has the potential to support a dedicated mining and processing operation. As soon as the current wet season is over and the access roads are usable again, drilling work will begin, according to the company.
Conclusion: The environment could not be better for Tennant Minerals. Both copper and gold have been soaring for some time and many experts expect this trend to continue for the time being - perhaps with somewhat higher volatility. For copper in particular, many observers see a significant increase in demand in view of the global energy transition. In view of this, the starting position for Tennant Minerals and the Bluebird discovery is excellent. If the company now starts drilling the announced holes quickly and can deliver similar results as in the past, we believe there is a good chance that the market will pay more attention to the company again. We will definitely be sticking with this explorer, which is still risky but, we believe, also very promising.
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