Somerset Minerals Advances with High-Grade Coppermine Acquisition in Nunavut

Strategic Acquisition in Nunavut

Somerset Minerals Ltd (ASX:SMM) has announced a conditional agreement to acquire 100% ownership of the Coppermine Project, a high-grade copper exploration asset located in the Kitikmeot region of Nunavut, Canada. This acquisition, pending shareholder approval, would position Somerset as the third largest landholder in the Coppermine region with a substantial 1,208 km² land package.

The Coppermine Project is notable for its extensive coverage of the Copper Creek Formation basalts, a geological setting known for hosting structurally controlled, high-grade copper and silver mineralisation. Historic and recent rock chip sampling from the project area has returned remarkable copper grades, including samples exceeding 45% copper and significant silver values, underscoring the project's exploration potential.

Exploration Prospects and Regional Context

The project area includes four high-priority districts, Laphroaig, Ardbeg, Jura, and Oban, each demonstrating promising mineralisation trends supported by historic drilling and surface sampling. Notably, the Laphroaig District lies immediately along strike from White Cliff Minerals’ Vision District, which has recently yielded rock chip samples with copper grades as high as 64%. The Oban District neighbors White Cliff’s Danvers prospect, which contains a historic non-JORC resource of 4.16 million tonnes at 2.96% copper.

Somerset’s acquisition complements the regional exploration landscape, which includes significant players such as White Cliff Minerals and Ivanhoe Electric. The geological analogy to the Keweenaw Peninsula copper deposits in Michigan and the Mt Isa region in Australia highlights the potential for structurally controlled, high-grade copper mineralisation in this underexplored region.

Upcoming Exploration and Operational Plans

Subject to acquisition completion, Somerset is preparing for a maiden exploration campaign scheduled for the first half of 2025. The campaign will leverage extensive historical data and is expected to include a maiden drilling program alongside comprehensive surface geochemical sampling. The nearby township of Kugluktuk will serve as a logistical hub, facilitating year-round access to the project area.

Meanwhile, Somerset continues to advance its Prescott Project in Nunavut, where recent geochemical sampling has confirmed zinc and lead mineralisation, further diversifying the company’s exploration portfolio.

Corporate and Financial Developments

During the quarter, Somerset secured $600,000 through convertible loan notes arranged with RM Corporate Finance Pty Ltd, providing vital funding to support ongoing exploration and corporate activities. The company also completed the sale of its Valle del Tigre II mineral concession in Ecuador to Barrick Gold (Ecuador) S.A., receiving approximately US$250,000 in cash proceeds and granting a 1.5% net smelter royalty on the concession area sold.

Despite a modest cash balance of $294,000 at quarter-end, Somerset’s management remains confident in its ability to raise additional funds to sustain exploration efforts, with director remuneration temporarily reduced to conserve capital.

Outlook

Somerset Minerals’ strategic acquisition and planned exploration activities in Nunavut mark a pivotal phase in its growth trajectory. The company’s focus on high-grade copper-silver targets in a historically underexplored region could unlock significant value, contingent on successful exploration outcomes and shareholder approval of the Coppermine acquisition.