• Noel Ong

Why Cyprium Metals Limited (ASX: CYM) is a Different Copper Producer


Coffee with Samso Episode 108 with Barry Cahill, Executive Director of Cyprium Metals Limited (ASX:CYM)



As the only small cap company on the ASX that is on the verge of becoming a copper producer, Cyprium Metals Limited, is making all the right noises.


In this episode of Coffee with Samso Barry shares with us what the Cyprium business is all about. We get a good insight into how the business works and why this is a simple business that will just happen. This is not to say that it is "simple", but it is more to say that Barry Cahill and his team have done this often enough to know what should work, will work and how to fix if it is not working.



Cyprium Metals is the only player in this space as a small cap copper producer. For this reason, I feel that this is a good bet for those interested to have exposure in this small capitalisation arena. The unvalued Nanadie Well Copper-Gold Project is one of the upsides for the company.


Chapters


00:00 Start

00:15 Introduction

01:16 Barry updates company activities.

02:15 Why is Cyprium different?

05:02 The process of Heap Leaching

11:28 How long is a slow reach for Chalcopyrite?

12:36 The key to the process is Cyprium's IP.

13:45 What is the room for error?

16:35 Heap Leach is not as easy but not difficult.

19:28 Is there a critical step in the whole Heap Leach process?

22:06 Is there such a thing as a Pilot Plant for Heap Leach Process?

23:25 In the process of Heap Leach, is there a "spanner" in the mix?

25:15 Is there a critical price that will kill the business?

26:29 Thoughts on ESG pushing costs up.

28:22 Other projects.

30:18 Could CYM spin out Nanadie Well?

30:44 Why Nanadie Well looks good.

32:28 Reasons why Samso Likes CYM.

34:28 CYM is in the middle of a period of no interest.

36:05 Why investors should do serious DYOR at Cyprium.

40:59 Conclusions


PODCAST



About Barry Cahill

Executive Director


Mr. Cahill is a mining engineer with over 30 years’ experience in exploration, operational mining and management. In particular, his experience covers management of project development and construction from exploration drilling through project funding, commissioning and development. He was the Managing Director of Finders Resources Limited from 2013 until its takeover in 2018. Mr. Cahill has previously been Executive Director of a number of public companies including Operations Director at Perilya Limited and Managing Director of Australian Mines Limited and Norseman Gold Plc.


About Cyprium Metals Limited (ASX:CYM)


Cyprium Metals Limited (ASX: CYM) is an ASX listed company with copper projects in Australia. The Company has a highly credentialed management team that is experienced in successfully developing sulphide heap leach copper projects in challenging locations. The Company’s strategy is to acquire, develop and operate mineral resource projects in Australia which are optimised by innovative processing solutions to produce copper metal on-site to maximise value.

The Company has projects in the Murchison and Paterson regions of Western Australia that is host to a number of base metals deposits with copper and gold mineralisation.

Paterson Copper Projects This portfolio of copper projects comprises the Nifty Copper Mine, Maroochydore Copper Project and Paterson Exploration Project.

The Nifty Copper Mine (“Nifty”) is located on the western edge of the Great Sandy Desert in the north-eastern Pilbara region of Western Australia, approximately 330km southeast of Port Hedland. Nifty contains a 2012 JORC Mineral Resource of 732,200 tonnes of contained copper (i). Cyprium is focussed on a heap leach SX-EW operation to retreat the current heap leach pads as well as open pit oxide and transitional material. Studies will investigate the potential restart of the copper concentrator to treat open pit sulphide material.

The Maroochydore deposit is located ~85km southeast of Nifty and includes a shallow 2012 JORC Mineral Resource of 486,000 tonnes of contained copper (ii). Aeris Resources Limited (ASX: AIS, formerly Straits Resources Limited) holds certain rights to “buy back up to 50%” into any proposed mine development in respect of the Maroochydore Project, subject to a payment of 3 times the exploration expenditure contribution that would have been required to maintain its interest in the project.

An exploration earn-in joint venture has been entered into with IGO Limited on ~2,400km2 of the Paterson Exploration Project. Under the agreement, IGO is to sole fund $32 million of exploration activities over 6.5 years to earn a 70% interest in the Paterson Exploration Project, including a minimum expenditure of $11 million over the first 3.5 years. Upon earning a 70% interest, the Joint Venture will form and IGO will free-carry Paterson Copper to the completion of a pre-feasibility study (PFS) on a new mineral discovery.

Murchison Copper-Gold Projects Cyprium has an 80% attributable interest in a joint venture with Musgrave Minerals Limited (ASX: MGV) at the Cue Copper-Gold Project, which is located ~20km to the east of Cue in Western Australia. Cyprium will free-carry the Cue Copper Project to the completion of a definitive feasibility study (DFS). The Cue Copper-Gold Project includes the Hollandaire Copper-Gold Mineral Resources of 51,500 tonnes contained copper (iii), which is open at depth. Metallurgical test-work has been undertaken to determine the optimal copper extraction methodology, which resulted in rapid leaching times (refer to 9 March 2020 CYM announcement, “Copper Metal Plated”, https://cypriummetals.com/copper-metal-plated/).

The Nanadie Well Project is located ~650km northeast of Perth and ~75km southeast of Meekatharra in the Murchison District of Western Australia, within mining lease M51/887. The Cue and Nanadie Well Copper-Gold projects are included in an ongoing scoping study, to determine the parameters required to develop a copper project in the region, which provides direction for resource expansion work. (i) Refer to CYM ASX announcement dated 17 November 2021 “Updated Nifty Copper Mineral Resource Estimate” (ii) Refer to MLX ASX announcements: 10 March 2020, “Nifty Copper Mine Resource Update” and 18 August 2016, “Annual Update of Mineral Resources and Ore Reserves” (iii) Refer to CYM ASX announcement: 29 September 2020, “Hollandaire Copper-gold Mineral Resource Estimate”


 

Disclaimer

The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer.

Share to Grow: Your Bonus


Samso has just released an eBook: How to Add Value to your Share Portfolio

A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.



If you find this article informative and useful, please help me share the information.  I try and write about topics that are interesting and have the potential to be of investment value.  It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au.

About Samso

 

Click on image above for Coffee With Samso investment column featured on Brilliant-Online.


Our new Brilliant partnership allows us to distribute stories from ASX companies and private businesses to a wider community. As subscribers to Samso, you will find Brilliant stories inspiring.