Can Elizabeth Creek’s New Metallurgical Breakthrough Lower Costs and Risks?

Technical Breakthroughs at Elizabeth Creek

Coda Minerals has delivered a significant technical advance at its flagship Elizabeth Creek Copper-Cobalt Project in South Australia. During the June quarter, the company’s metallurgical testwork on mineralised material from the Emmie Bluff deposit demonstrated copper recoveries of 92.5% using a catalysed ammonia oxidative leach and 95.9% with an ammonium chloride oxidative leach. These results represent a substantial uplift from the previous average recovery of 82.8% based on flotation methods.

Equally notable was the silver recovery, which reached up to 97.3% using the ammonium chloride leach, far exceeding prior assumptions and potentially boosting the project’s overall economics. Both leach processes operate under near-neutral or alkaline conditions, well suited to the carbonate-rich ore, and offer the prospect of processing the whole ore directly without flotation.

Implications for Project Economics and Development

The metallurgical improvements suggest a simplified flowsheet that could materially reduce both capital expenditure (CAPEX) and operating expenditure (OPEX). By eliminating the flotation step, Coda anticipates lower complexity and cost in processing, which is a critical factor in advancing the project’s feasibility.

Supporting this technical progress, Coda has materially finalised the scope, plan, and budget for the Pre-Feasibility Study (PFS). Key tenders for processing, process engineering, mine design, metallurgy, and infrastructure have been completed, with important workstreams such as hydrogeology already underway. This structured approach positions Elizabeth Creek well for the next stages of development.

Regulatory Milestone Achieved

Post-quarter, Coda submitted a Draft Scoping Report to the South Australian Department for Energy and Mining. This report is a pivotal step in securing environmental approvals, establishing a transparent and fixed pathway towards obtaining a Mining Lease. The acceptance of this report by the government will reduce regulatory risk and provide clarity on the environmental studies and data collection required.

Chairman Keith Jones highlighted the strategic importance of these developments, noting that the company aims to capture the value uplift typical of advanced peers progressing towards development. Recent mergers and acquisitions in the junior copper sector underscore the potential returns for quality assets like Elizabeth Creek.

Financial Position and Outlook

Financially, Coda Minerals ended the quarter with $3.96 million in cash, supporting ongoing exploration and evaluation activities. Operating cash outflows were $0.97 million, reflecting continued investment in metallurgical work and corporate administration. The company also issued shares to settle part of directors’ fees, a practice expected to continue.

Looking ahead, the company will focus on optimising the preferred leaching technology for the PFS, including cobalt recovery and cost assessments. The combination of technical progress and regulatory advancement sets a promising stage for Elizabeth Creek’s next phase.