Premium Resources Ltd. has reported favorable drill results from its Selebi Mines project in Botswana, highlighting strong copper equivalent grades that exceed existing resources. The company plans further drilling to expand known mineralization and is enhancing its financial position through strategic placements and refinancing. Market analysts express strong confidence in the company, projecting substantial stock price appreciation as copper demand rises.
Premium Resources Ltd. (PREM:TSX.V) has announced positive stepout drill results from its underground Selebi Mines copper-nickel-cobalt project in Botswana, highlighting significant intercepts from the Selebi North deposit that lie outside the known resource envelope. The encouraging drill results included a remarkable 14.2 meters of 5.14% copper equivalent from hole SNUG-24-172 and 14.4 meters of 3.99% copper equivalent from hole SNUG-24-144. According to Dr. Stefan Ioannou of Cormark Securities, these results extend known mineralization at depth, surpassing the existing resource grade of 3.25% copper equivalents.
To build on these findings, Premium Resources plans to conduct additional drilling utilizing its own low-cost rigs. One rig will specifically target a 100m downplunge beyond the area tested by SNUG-24-172, while a second rig will investigate depths between the N2 and N3 limbs following up on results from SNUG-24-144. Amid these developments, the company has also expanded its private placement to CA$44 million from CA$36 million, reflecting strong investor demand.
Premium Resources has welcomed notable strategic investors including Frank Giustra and Andrew Bowering, supported by a robust financing strategy. The company is also gearing up for a leadership change, with Morgan Lekstrom set to take over as CEO, bringing a wealth of experience from notable mining projects. Furthermore, the firm has successfully refinanced a CA$20.9 million term loan, turning it into 69.6 million units at CA$0.30 each, as part of measures to stabilize the company financially.
The company’s efforts focus on revitalizing the mining industry in Botswana, particularly in the Phikwe region, where both the Selebi Mines and Selkirk projects hold significant potential. Giustra noted that Premium’s assets are “significantly undervalued” compared to peers and stressed the team’s vision for immediate value generation through strategic execution. With a total identified resource of 27.7 million tons at Selebi Mines, the firm aims to capitalize on continued metal demand stimulated by the clean energy transition and technological advancements.
Analysts have identified compelling copper market fundamentals, indicating a surge in demand driven by electric vehicles and sustainable energy initiatives, which are expected to experience significant growth in the coming years. Cormark Securities’ Ioannou maintains a Buy rating on Premium Resources, projecting a remarkable 194% upside in the stock price. The expectation is that ongoing drilling and exploration work could uncover additional resources, further enhancing the project’s value and attracting corporate attention.
Premium Resources Ltd. is making strides in its operations at the Selebi Mines project, with promising drill results that suggest a significant opportunity for resource expansion. The company’s strategy involves enhancing financial stability through strategic investments and refinancing efforts. Analyst endorsements signify confidence in Premium’s future, particularly amidst a burgeoning market for copper driven by critical technological and energy demands.
Original Source: www.streetwisereports.com
