Orbminco’s Mt Venn Divestment Could Reshape Its Project Portfolio
Orbminco Limited reports encouraging diamond drilling results at its Bronze Fox Copper-Gold Project in Mongolia, alongside progress on divesting its Mt Venn Project in Western Australia.
- Completed 16 diamond drill holes totaling 2,516 meters at Bronze Fox
- Notable copper equivalent intersections including 26m at 0.91% CuEq and 2m at 8.29% CuEq
- Progress on Mt Venn Project divestment with non-binding agreement signed
- Exploration expenditure of $706,000 during the December quarter
- Plans for further exploration including geophysical surveys and drilling in 2025
Strong Drilling Results at Bronze Fox
Orbminco Limited (ASX: OB1) has delivered a robust update for the December 2024 quarter, highlighting the successful completion of a 16-hole diamond drilling campaign at its Bronze Fox Copper-Gold Porphyry Project in Mongolia. The program, totaling 2,516 meters, aimed to both infill and extend mineralisation, with a focus on a higher-grade structural zone near historic hole F62.
The drilling intersected mineralisation in most holes, with standout results such as 26 meters at 0.91% copper equivalent (CuEq) from 14 meters in hole F111, including a high-grade 2 meters at 8.29% CuEq. Another significant intercept was 486 meters at 0.21% CuEq from 352 meters in hole F109, demonstrating the potential for a substantial resource expansion westward from previous drilling.
Strategic Progress on Mt Venn Divestment
In parallel with its Mongolian exploration, Orbminco has advanced negotiations to divest its 80% interest in the Mt Venn Project in Western Australia. A non-binding heads of agreement was signed in January 2025 with Sarama Resources Ltd (ASX: SRR), which includes a non-refundable exclusivity payment and a proposed issue of 12 million Sarama CDIs to Orbminco upon completion. This move aligns with Orbminco's strategy to streamline its portfolio and focus on high-potential assets.
Financial and Operational Overview
During the quarter, Orbminco spent $706,000 on exploration and development activities, reflecting its commitment to advancing key projects. The company reported a cash balance of $521,000 at quarter-end, with ongoing plans to raise additional funds as needed to support exploration. No fieldwork was conducted on the Mt Cattlin and Mt Short lithium projects during this period, and the Labyrinth Project tenure was surrendered.
Looking ahead, Orbminco intends to continue exploration at Bronze Fox with geophysical surveys and further drilling planned for the upcoming field season from May to October 2025. The company is also focused on metallurgical test work to verify recovery rates, which will be critical in refining resource estimates and assessing economic viability.
Outlook and Market Positioning
Orbminco’s drilling results at Bronze Fox reinforce the project’s potential as a significant copper-gold porphyry deposit within the prolific Southern Gobi belt. The extension of mineralisation and confirmation of higher-grade zones could materially enhance the resource base, positioning the company well for future development phases.
Meanwhile, the Mt Venn divestment, if completed, will provide Orbminco with strategic capital and allow a sharper focus on its Mongolian assets. Investors will be watching closely for the finalisation of this deal and the outcomes of the next exploration campaign, which together will shape Orbminco’s trajectory in 2025.
Bottom Line?
Orbminco’s latest drilling success and strategic divestment moves set the stage for a pivotal year in advancing its copper-gold ambitions.
Questions in the middle?
- What will the final metallurgical recovery rates be following further test work at Bronze Fox?
- How will the completion of the Mt Venn divestment impact Orbminco’s financial flexibility?
- What are the next target areas for exploration following the recent drilling results?
