David Lenigas-led Clancy Exploration (ASX: CLY) has identified copper grading up to 17% during surface exploration at its Moroccan licences where it is carrying out due diligence.
The samples were taken from the licences adjacent to the renowned Bou Azzer cobalt mine, with nine out of 15 surface samples assaying above 1% copper.
According to Clancy, copper mineralisation was found in hand cut trenches and shallow pits at the three tenements with the majority arising out of the Imdere tenement, but the high-grade 17% copper hit was unearthed at Tizi Belhaj.
Traces of other elements including iron, nickel, zinc, gold, silver, tin and cobalt were also detected at some or all three tenements.
“There is surprisingly very little exploration on these three tenements, considering how close they are to one of the most famous primary cobalt mines in the world,” Clancy executive chairman David Lenigas noted.
“Where there is smoke, there is usually fire and the fact that we are picking up copper grades at surface of this order all bodes well for future exploration programs,” he said.
The results are the last step in the technical due diligence program to acquire the tenements with the acquisition to be put to a shareholder vote at an upcoming meeting.
“This company is now also actively seeking to acquire an interest in further tenements proximal to Bou Azzer cobalt mine,” Mr Lenigas said.
“The board looks forward to putting this exciting Moroccan deal to shareholders, getting it approved and starting an aggressive exploration program,” he added.
Altogether, the tenements encompass 32 square kilometres, with Tizi Belhaj and Bou Amzil projects next to Managem Group’s Bou Azzer mine, which has operated since the 1930s.
During its operation, more than 100,000 tonnes of cobalt was produced from Bou Azzer, which is also prospective for nickel, silver and gold.
The mine is currently producing about 2,000t a year of cobalt at an average grade of 1.3%.
To carry out due diligence, Clancy paid the vendors a A$25,000 exclusivity fee. Further payments amounting to US$975,000 plus 610 million in shares are payable upon reaching various milestones, which will eventually see Clancy holding 100% in the three assets if shareholders approve the acquisition at the upcoming vote.