Polymetallic Explorer Sees 'Excellent Averages' For Recoveries

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCMKTS; LLJA:FSE) announced an update on its metallurgical testing program at its wholly-owned Iberian Belt West (IBW) project in Spain.

The goal of the program, which is only in its first phase, was to demonstrate that commercial-grade concentrates can be produced from La Romanera and La Infanta deposits.

This phase focused on copper, lead, and zinc, concentrates and showed "excellent averages," according to the company: 85.6% zinc (Zn) recovery, 62% copper (Cu) recovery, and 59% lead (Pb) recovery, obtaining commercial grade concentrates from both deposits.

"These results, which have been normalized based upon resource head grades, are in line with, and in fact, exceed the metallurgical performance of polymetallic ores presently in production in the Iberian Belt," Emerita said in a release. "Copper recoveries improve in areas of the deposit with higher copper grades."

Precious metals were not the focus of testing in this phase, the company said. But data from Phase I provided insights with respect to optimizing gold and silver, including recoveries of up to 48.6% silver (Ag) and 17.2% gold (Au) in different products.

"Phase II, which has now been initiated, will investigate optimizing gold and silver recoveries as gravitational and/or concentrate products to bring that up to a target of 60% recovery or more," the company said.

*Technical Analyst Clive Maund wrote on May 27 that in April, Emerita "blasted higher" and peaked at CA$0.78 on May 17, but Maund said he expected it could still go higher. He gave the stock a Strong Buy rating.

He said, "The conclusion is that Emerita Resources continues to be rated a Strong Buy despite its considerable percentage gains this month, especially if we should see a minor near-term correction."

Detailed Results

The IBW project hosts three massive sulfide deposits: La Infanta, La Romanera, and El Cura. El Cura is presently being drilled.

At La Infanta, the results of the Phase I work showed zinc concentrate of 52.7% Zn, 0.4 grams per tonne (g/t) Au, and 113 g/t Ag; with recoveries of 81.5% Zn, 9.6% Au, and 12% Ag. The copper concentrate was 23.9% Cu, 7.4 g/t Au and 1,780 g/t Ag, with recoveries of 47.5% Cu, 35.4% Au, and 37.7% Ag.

Lead concentrate was 41.6% Pb, 4.42%Cu 0.6g/Au, and 510g/t silver, with recoveries of 84.5% Pb, 33.5% Cu, 11% Au, and 41.3% Ag.

Technical Analyst Clive Maund gave Emerita a Strong Buy rating on May 27.

The company said a highlight at La Infanta included the recovery of 56% Au and 91% Ag in the deposit, with the gold "mainly associated with copper concentrate and silver associated with copper and lead concentrates.

At La Romanera deposit, the metallurgical work showed Zinc concentrate of 52.6% Zn, 2.4 g/t Au, and 182g/t Ag; and recoveries of 86.5% Zn, 9.3% Au, and 13.6% Ag. Lead concentrate was 43.5% Pb, 13.8% Cu, 5.2 g/t Au, and 1,165 g/t Ag, with recoveries of 50.5% Pb, 57% Cu, 6.6% Au, and 28.5% Ag.

At La Romanera, it has been determined that 8.9% of the gold is accessible for hydrometallurgical treatment and that 34.27% is associated with sulfides and 27.9% is associated with arsenopyrite.

"The results of these tests show a potential to increase gold recovery by up to an additional 43.25%," said Jorge Blanco, director of metallurgy for the company. "With what we have learned from the Phase I testing and the mineralogical work now being completed in support of Phase II, we see potential to achieve 60% recoveries of the gold in Romanera. Given the gold enrichment that occurs in portions of that deposit, this represents an important opportunity for the project."

The Phase I metallurgical test work was carried out by Wardell Armstrong International Laboratories in the United Kingdom, the company said. SRK Consulting was also commissioned to provide oversight to ensure the program was completed to the highest standard.

Phase II will also be initiated with Wardell Armstrong and will have two main objectives: ratifying the experimental data obtained in Phase I and increasing gold recoveries at La Romanera.

The Catalyst: Metals Needed to Power Clean Energy Switch

Zinc and copper are in demand as the world's economies attempt to switch from fossil fuels to cleaner sources. Zinc is used in batteries, and electric vehicles (EVs) use as much as four times the copper as gas-powered cars.

According to Mordor Intelligence, the zinc market will be an estimated 13.58 million tons (Mt) this year and is expected to rise to 14.68 Mt by 2029, a compound annual growth rate (CAGR) of greater than 1.5%. Growing demand for zinc in Zinc-based batteries and rising urbanization and industrialization are expected to provide opportunities for future market growth, Mordor noted.

Despite some cooling due to slower-than-expected electric vehicle (EV) sales, the global copper market was worth US$304.1 billion in 2022 and is expected to grow at a CAGR of 5.1% from 2023 to 2032 to US$496.8 billion, Acumen Research and Consulting reported.

"The increasing demand for copper could be met through developments in mining technology, well-organized designs for ore processing, and the discovery of new copper reserves," Acumen's report noted. "According to the United States Geological Survey (USGS), international copper reserves rose by approximately 720 million tons in 2017, and undiscovered copper reserves are estimated to be approximately 3,500 million tons."

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 5.33% of the company.

According to Reuters, Michael Lawrence Guy owns 1.75% of the company, David Patrick Gower owns 1.12%, Joaquin Merino-Marquez owns 0.84%, Catherine Stretch owns 0.65%, and Marilia Bento owns 0.4%.

Institutions own 1.11% of the company, Reuters reported.

This includes Merk Investments LLC 1.11%.

According to Refinitiv, there are 247.32 million shares outstanding with 234.13 million free float traded shares, while the company has a market cap of CA$143.45 million and trades in a 52-week range of CA$0.26 and CA$0.78.

Important Disclosures:

1. Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

* Disclosure for the quote from the Clive Maund article published on May 27

1. For the quoted article (published on May 27), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. 
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.