The copper frenzy surrounding Cohiba Minerals (ASX: CHK) has been given another adrenalin shot with results from a gravity survey conducted over the Horse Well project area in South Australia revealing signs of a possible iron oxide-copper-gold (IOCG) target.
The Horse Well project ground sits adjacent to BHP’s (ASX: BHP) Oak Dam West project, with the gravity survey identifying a possible IOCG target in the western part of the survey area.
Possible prospective structures inferred from the gravity gradients trend from Oak Dam West into the Horse Well Project area and wrap around the gravity target
Furthermore, the Total Magnetic Intensity data from the Department for Energy and Mining shows that the Horse Well magnetic anomaly is similar in dimensions to BHP’s Oak Dam East anomaly.
Cohiba Minerals executive director Mordechai Benedikt said the possible identification of IOCG was extremely encouraging.
“These results have opened up immense new potential at the Horsewell project particularly with the projects close proximity to BHP’s Oak Dam west IOCG discovery and could prove to be a game-changer at every level for Cohiba and its exploration efforts,” he said.
The company and its consultants will continue to investigate the data set to delineate the most prospective targets for drilling early in the program.
Cohiba in the spotlight
It was a monumental year in 2018 for rising copper play Cohiba Minerals, as the company’s shares exploded after BHP announced it had uncovered what has been referred to as the thickest high-grade copper intersection seen in many years.
BHP’s major copper find included a 425.7m intersection grading 3.04% copper 0.59 grams per tonne gold, 346 parts per million uranium and 6.03g/t silver.
It didn’t take long for shareholders to connect the nearology dots given Cohiba Mineral’s Olympic IOCG ground is located just 2km to the east of BHP’s discovery.
As a result, Cohiba Minerals has accelerated exploration efforts at its Olympic Domain project having raised $1.6 million to fast-track its planned program in the area.
The company’s shares soared to a 2018 high of $0.021 in the wake of the impending drilling campaign news and the project’s proximity to BHP’s discovery. Just a year prior, Cohiba Minerals was trading at $0.009.
Investors reacted positively to the Horse Well gravity survey results, moving the company’s shares up 11.1% to $0.020.