Critical Mineral Resources (AIM:CMRS) reported further drill results from its Agadir Melloul copper project in Morocco, alongside progress on resource definition and the start of development studies.
The Morocco-focused critical minerals explorer, which holds an 80% stake in local exploration group Atlantic Research Minerals, said drilling remains concentrated on infill and step-out work at Zone 1 North.
Intercepts included 6.9 metres at 0.45% copper and 1.0g/t silver from surface, and 2.9 metres at 0.67% copper and 2.5g/t silver from 11 metres, including a higher-grade section of 1.24% copper.
The company has now drilled close to 6% of the project area, with its internal, non-JORC model estimating approximately 25,000 tonnes of contained copper, equivalent to roughly $250m of net revenue at a $13,500 per tonne copper price.
A recent hole intersected more than 10 metres of mineralisation from 52 metres downhole, with massive sulphide enrichment identified at 66 metres and assays pending; further results are expected in August.
Chief executive Charlie Long said the latest grades, while below previous results, sit above the company's internal 0.3% cut-off and reflect variability typical of a sedimentary copper system.
"Our strategy is to bring a modest sized Initial Mine into production quickly, fund it with the minimum possible dilution, and use that platform to prove up what we believe will be a district-scale copper system," Long said.
An independent consultancy has been engaged to deliver a maiden JORC Mineral Resource Estimate, targeted for October, alongside metallurgical testwork and an environmental impact assessment for the proposed processing plant, with feasibility study completion targeted by the end of the year.
News Intelligence what this means for the company
Critical Mineral Resources reported further copper-silver intercepts from Zone 1 North at its Agadir Melloul project in Morocco, with grades ranging from 0.45% to 1.24% copper. The company has now drilled 6% of the project area and targets a maiden JORC resource estimate in October, alongside a feasibility study by year-end—a material progression toward production decision, though the latest grades sit below some prior results and remain subject to resource definition risk.
The October resource estimate and year-end feasibility study represent concrete near-term catalysts for valuation. However, the company's strategy hinges on rapid development of a "modest sized Initial Mine" with minimal dilution; execution risk on permitting, metallurgy, and capital raise remains unquantified, and the internal non-JORC estimate of ~25,000 tonnes contained copper is not yet independently verified.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
