The morning sun brought a meteoric rise for ASX mining stock Cobre Ltd (ASX: CBE), catapulting its market valuation by an astounding 112.2% in under 30 minutes. This unexpected surge follows a significant announcement by the company and marks a remarkable turnaround from its closing price of 4.1 cents the previous day.


Image Credit: Pexels

BHP's 2024 Xplor Program

The standout news revolves around Cobre's selection by mining giant BHP Group Ltd (ASX: BHP) to participate in its 2024 Xplor program. This initiative, designed for young companies in critical minerals, aims to accelerate operations and foster potential long-term partnerships. Over the six-month program, Cobre will receive a non-dilutive funding of US$500,000 from BHP, along with access to internal expertise and a global network of suppliers.

Kitlanya West Project Acceleration

Cobre's strategic utilization of the funds is directed towards expediting its Kitlanya West Project in Botswana, situated in the Kalahari Copper Belt (KCB). Spanning 5,348 square kilometers, the KCB stands out as one of the most promising areas globally for copper exploration.

BHP's Confidence and Exploration Targets

The Xplor program underscores BHP's confidence in Cobre's Kitlanya West Project, following the announcement of "encouraging new targets" in November. Drilling results prompted an upward revision of the target size to an impressive 4 km x 1.2 km. The deal also includes BHP's option to retain pre-emption rights at Kitlanya West for a year post-program conclusion.

Insights from Cobre's CEO

Cobre's CEO, Adam Wooldridge, expressed enthusiasm about the Xplor program, emphasizing its unique opportunity to collaborate with BHP experts. He highlighted the rigorous selection process as a testament to the technical merits of Cobre's team and exploration projects.

Additional Endeavors: Perrinvale Project

In tandem with its participation in the Xplor program, Cobre is actively engaged in its Perrinvale project, located in the Panhandle Greenstone Belt of Western Australia. The project boasts a globally rare VHMS deposit enriched in high-grade copper, gold, silver, and zinc.

Share Price Overview

Since its listing on the ASX in early 2020 at 20 cents per share, Cobre has witnessed a remarkable journey, culminating in the recent surge that has captured the market's attention.

Conclusion

The selection of Cobre for BHP's Xplor program marks a pivotal moment in the company's trajectory. With an unwavering focus on the Kitlanya West Project and promising exploration targets, Cobre is poised for significant developments. The confidence instilled by BHP, coupled with Cobre's technical prowess, positions the company favorably in the dynamic landscape of mineral exploration.