Arras Minerals (ARK.V) has released the assay results of the final five holes it drilled on its Berezski target, part of the Elemes project in Kazakhstan. After releasing an initial batch with very encouraging results, the final five holes confirm the discovery of a new copper porphyry system.
Not all holes were great; 152 meters of 0.13% CuEq and 76 meters containing 0.20% CuEq aren’t anything exciting, but hole EL24006 was already substantially better with 56 meters containing 0.68% CuEq starting close to surface. Hole EL24005 provided the headline result with an interval of 547 meters of 0.70% copper-equivalent (consisting of 0.23% copper and 0.48 g/t gold) starting just 14 meters downhole. This interval contained several higher grade zones with for instance a very thick layer of 206 meters of 0.83% CuEq starting at a depth of just 24 meters dowhole.
Also important: hole EL24005 ended in mineralization, further emphasizing the importance to complete a follow-up drill program this year. The 2024 drill program has now confirmed there are at least two porphyry centers on the Berezski target, and Arras is currently in the planning stage for a 2025 drill program. On top of that, Arras will be working on a drill program on its Arras-Teck exploration alliance licenses this year.
The share price reacted well to the news of the discovery, and Arras Minerals has notified the owners of the C$0.40 warrants that were issued as part of a placement in the first half of 2024 the acceleration clause has been triggered. This means all 10 million warrants will expire on March 15 and considering the warrants are deeply in the money, we should expect all warrants to be exercised. This will bring in C$4M in cash proceeds. That being said, as the trading volumes still aren’t very high (despite the massive volume on the day of the most recent drill result announcement), we may see some price pressure as investors may want to sell some shares to exercise the warrants.
Disclosure: The author has a long position in Arras Minerals but recently sold some shares to exercise the warrants. Please read the disclaimer.
