Noronex Gains Complete Control Over Snowball Copper Project
NRX (NRX) Share Update July 2024 Wednesday 24th
Noronex Takes Full Control of Snowball Copper Project in Namibia
Noronex Limited (ASX: NRX) has announced a significant development in its copper exploration efforts, taking 100% control of the Eastern Licence of the Snowball Copper Project in Namibia. This move is part of the company's strategic efforts to streamline its asset base and focus on the most promising areas for exploration.
Instant Summary:
- Noronex takes 100% ownership of the Eastern Licence, Snowball East.
- Over A$1.5 million spent on exploration at Snowball Project.
- Part payment of A$0.4 million received for Dordabis sale, with final payment extended.
- Strong endorsement of the district with a $15 million earn-in and Strategic Alliance with South32.
Noronex Gains Full Control of Snowball Copper Project
Noronex Limited (Noronex or the Company) has announced that it has taken 100% control of the Eastern Licence area of the Snowball Copper Project in Namibia. This decision follows the discontinuation of the previous farm-in arrangements with Heyn Ohana Investment Ltd PLC (Heyn Ohana), under which Noronex was to earn up to 80% of the project by spending $4 million on exploration by April 2026.
To date, Noronex has spent over A$1.5 million on exploration activities, including drilling at several targets such as Hennep, Richlyn, and Helm. A total of 20 holes were drilled on EPL 7415, covering approximately 5km centers. The exploration efforts have helped define the prospective stratigraphy and structures within the licence area.
Strategic Management and Endorsement
This acquisition is part of Noronex's ongoing strategic management of its extensive copper portfolio in the Kalahari Copper Belt. The company aims to streamline its asset base, reduce costs, and focus on the most promising areas for ongoing exploration. The Snowball tenements cover over 200,000 hectares of prospective stratigraphy for sedimentary copper-silver mineralization under cover.
The decision to take 100% ownership of Snowball East follows a strong endorsement of the district, highlighted by the recently announced $15 million earn-in and Strategic Alliance with a wholly-owned subsidiary of South32. This alliance aims to target further base metal projects in Namibia.
Exploration and Future Plans
Noronex's exploration efforts during 2022 and 2023 have tested several prospective targets under cover, including Hennep and the antiformal closure at Helm. Drilling confirmed the presence of a prospective horizon under 70-100m of cover, marking the first drilling ever conducted in the licence area. The company has identified several further targets for exploration, which will commence upon the transfer of the licence.
Dordabis Sale and Financial Details
In addition to the Snowball Project developments, Noronex has received a part payment of A$0.4 million for the sale of the Dordabis asset, with the final payment date extended to August 2024. Dordabis is the westernmost licence in Noronex's extensive Namibian portfolio and represents approximately 4% of the total licence area held in Namibia.
The Dordabis asset was part of the original Witvlei and Dordabis asset group, acquired in November 2020. It was subject to an earn-in through a joint venture vehicle now controlled by Noronex.
The acquisition of 100% ownership of the Snowball East licence is a significant strategic move for Noronex. It allows the company to focus its resources on the most promising areas for copper exploration, potentially leading to significant discoveries. The strong endorsement from South32 further validates the potential of the Kalahari Copper Belt and could attract additional investment and interest in the region.
The part payment received for the Dordabis sale provides additional financial flexibility for Noronex, allowing it to continue its exploration activities without immediate financial pressure. Overall, these developments are likely to positively impact Noronex's stock as investors recognize the company's strategic focus and potential for future discoveries.
Investor Reaction:
Analysts and investors have reacted positively to the news, noting the strategic benefits of consolidating ownership of the Snowball East licence. The strong endorsement from South32 has also been seen as a positive indicator of the project's potential. Some investors have expressed optimism about the company's future exploration activities and the potential for significant discoveries in the Kalahari Copper Belt.
Conclusion:
Noronex's acquisition of 100% ownership of the Snowball East licence marks a significant milestone in the company's exploration efforts in the Kalahari Copper Belt. Investors should monitor the company's ongoing exploration activities and the potential for future discoveries. Noronex's strategic focus and strong endorsement from South32 position it well for future success in the region.