BHP Commits US$25M to Cobre’s Kitlanya Copper Projects in Botswana

Strategic Partnership with BHP

Cobre Limited (ASX: CBE) has taken a significant step forward in its exploration ambitions by executing an earn-in agreement with BHP Group Ltd. Under this deal, BHP will fund up to US$25 million (approximately A$40 million) in exploration expenditure on Cobre's Kitlanya East and West copper projects located in Botswana's prolific Kalahari Copper Belt (KCB). This funding enables BHP to earn a 75% interest in these projects, marking a major validation of Cobre's basin-margin exploration strategy.

The initial phase has already commenced with BHP providing a first cash call payment of over US$2 million in early April 2025. The program includes deep diamond drilling and seismic surveys designed to test large anticlinal trap sites and refine the geological understanding of the basin architecture, crucial for identifying Tier 1 copper deposits.

Encouraging Exploration Results at Ngami

Meanwhile, at Cobre’s flagship Ngami Copper Project, assay results from two exploration holes at the Cosmos target have returned promising copper and silver grades. Notably, hole NCP55 intersected 20.05 meters at 0.85% copper and 19.6 grams per tonne silver, including higher-grade intervals up to 2.2% copper and 45.2 g/t silver. These results extend mineralisation over a strike length exceeding 4 kilometers and suggest potential for further high-grade discoveries adjacent to the previously drilled Comet target.

Infill drilling at Comet is ongoing to support a forthcoming Mineral Resource Estimate, with initial assays from recent holes already released. The style of mineralisation, dominated by fine-grained chalcocite amenable to acid leaching, aligns well with the structural controls typical of the KCB, enhancing the project's development prospects.

Advances in Australian High Purity Quartz Project

On the Australian front, Cobre has reported successful beneficiation and thermal testing at its Perrinvale High Purity Quartz (HPQ) Project in Western Australia. The beneficiation process has upgraded silica content from 99.64% to an impressive 99.907%, with further improvements anticipated. Thermal stability and cohesion index tests indicate suitability for smelter furnace feedstock, opening potential for dual product streams: high purity silica and furnace feedstock.

An Aboriginal Cultural Heritage Survey has been completed with no sites of significance identified, clearing the way for ground-disturbing exploration activities such as drilling. Samples from Perrinvale have attracted international interest, including from a silicon smelting operation in Malaysia, where further testing is underway.

Corporate and Financial Overview

During the quarter, Cobre also progressed its capital raising initiatives, approving a second tranche at an Extraordinary General Meeting. Exploration expenditure totaled approximately A$1.05 million, predominantly in Botswana. The company addressed an ASX listing rule query related to continuous disclosure, concluding that its current policies are sufficient to prevent future breaches.

With cash reserves of A$1.65 million at quarter-end and ongoing funding from BHP, Cobre is well-positioned to advance its exploration programs aggressively. The partnership with BHP not only provides financial muscle but also access to technical expertise, enhancing the prospects of making significant new copper discoveries in the Kalahari Copper Belt.

Looking Ahead

Cobre’s dual focus on copper exploration in Botswana and high purity quartz development in Australia reflects a diversified approach to capitalising on critical minerals demand. The next phases of drilling at Kitlanya and Ngami, combined with advancing the Perrinvale project towards a Mineral Resource Estimate, will be key milestones to watch. The BHP earn-in agreement represents a pivotal moment, potentially accelerating Cobre’s transformation from explorer to developer.