With company-making copper grades emerging from the Patersons province and BHP announcing its own set of mind-bending drill hits from its Oak Dam tenements, nearby players are reaping rewards – no more so than Cohiba Minerals (ASX:CHK) which has seen its shares leap 520 percent since the start of this week.
The market junior holds the Horse Well project, which lies adjacent to BHP’s Oak Dam site and has seen a dramatic rise from half a cent per share to as high as 2.6 cents.
The BHP discovery at Oak Dam, which included a massive 425.7m at over 3 percent copper, in addition to gold, uranium and silver hits, lies just 2km from Cohiba’s Horse Well project.
The Horse Well project also lies approximately 45km to the south of the Olympic Dam minesite.
Although we couldn’t have predicted such great results, nevertheless its proximity to BHP Olympic Dam and the Carrapateena mine was a main consideration why the Company pursued this transaction in the first instance,” Cohiba executive director Mordechai Benedikt said.
“We are convinced with BHP’s results, this will only grow stronger and strengthen CHK’s position for our shareholders.
“Finally, the company is in a strong financial position to commence this exciting phase of exploration of the project,” he said.
In response to the copper craze, Cohiba has announced it will accelerate its base metals exploration to target the IOCG trend running from Oak Dam to Horse Well.
The company reports it has already engaged with consultants and an exploration team to fast track permitting and plan a drill campaign.
