Drilling Confirms Big Resource Expansion at Iberian Belt West Project

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Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has announced an updated independent mineral resource estimate (MRE) for its wholly owned Iberian Belt West (IBW) project in Spain. The estimate, completed by Wardell Armstrong International Limited (WAI), reflects a 35% increase in total indicated mineral resource tonnage and a 44% increase in total inferred mineral resource tonnage compared to the previous estimate released in May 2023. 

The updated MRE is based on 105,554 meters of drilling across 299 drill holes, covering three volcanogenic massive sulphide deposits: La Romanera, La Infanta, and El Cura. The IBW project's total indicated resource now stands at 18.96 million tonnes (Mt) with grades of 2.88% zinc, 1.42% lead, 0.50% copper, 66 grams per tonne (g/t) silver, and 1.28 g/t gold (8.44% ZnEq or 3.01% CuEq). The total inferred resource is reported at 6.80 Mt, grading 3.25% zinc, 1.50% lead, 0.73% copper, 56.3 g/t silver, and 0.77 g/t gold (8.72% ZnEq or 3.00% CuEq). 

The La Romanera deposit remains the largest contributor to IBW's resource base, with an indicated MRE of 17.34 Mt at 2.64% zinc, 1.25% lead, 0.43% copper, 65 g/t silver, and 1.34 g/t gold. The La Infanta deposit includes an indicated MRE of 1.09 Mt grading 7.38% zinc, 4.39% lead, 1.08% copper, 94.6 g/t silver, and 0.35 g/t gold. The El Cura deposit, which now reports its first mineral resource estimate, is characterized by its copper-rich profile and contributes to a 45% increase in contained copper in the total indicated resource and a 90% increase in the total inferred category.

Emerita highlighted the incorporation of actual metal recoveries derived from ongoing metallurgical test work in the updated resource estimate, providing greater accuracy in assessing the project's potential.

President Joaquin Merino commented in the news release, "These results show Emerita's successful approach in adding more resources to the project. Not only has the company successfully increased the total resource tonnage since the 2023 MRE, but we've added an entirely new deposit to the project's inventory of resources with El Cura, which is rich in both copper and gold."

Strong Demand and Supply Challenges in Copper, Gold, and Silver

The mining sector continued to experience robust demand across copper, gold, and silver, driven by industrial applications, electrification, and economic uncertainty. However, long-term supply constraints have raised concerns about the industry's ability to meet future demand.

A March 16 report from NPR emphasized copper's critical role in global electrification, noting that demand had surged by nearly 75% since 2020. The report highlighted that the world's largest copper mines, particularly in Chile, Peru, and the Democratic Republic of the Congo, were struggling to keep pace with demand due to underinvestment, declining ore grades, and geopolitical risks. BHP projected that existing copper mines would produce about 15% less by 2035 compared to 2024, further tightening supply. Analysts cited in the report warned that permitting delays and environmental concerns were making it increasingly difficult to bring new copper projects online.

Clarus maintained a Speculative Buy rating on the company and assigned a CA$3.15 target price, citing multiple upcoming catalysts. 

On March 17, an analysis from John Newell & Associates highlighted silver's dual role as a store of value and an industrial commodity, suggesting the metal was positioned for a potential price surge.

The report outlined key factors supporting silver's bullish outlook, including inflationary pressures, increased demand from the electronics and solar industries, and supply limitations due to reduced exploration spending. Historical patterns indicated that silver had the potential for significant upward movement, with analysts pointing to previous price surges as a reference for future trends.

Technical Analyst Clive Maund, that same day, reinforced the bullish case for precious metals, stating that silver was breaking out of a long-term technical pattern that could lead to sustained gains. The analysis suggested that silver remained undervalued compared to historical ratios with gold, indicating further room for appreciation. Gold was also expected to continue rising, with the report citing increasing economic instability as a primary driver for continued investment in the metal.

Stockhead, on March 18, pointed to continued strength in the gold market, with prices reaching new highs above US$3,000 per ounce. The article attributed this rise to increased investor interest in safe-haven assets amid global economic and geopolitical uncertainty. Silver also saw strong momentum, with analysts projecting further gains based on growing industrial demand, particularly in renewable energy applications like solar panels. The article further noted that despite higher gold and silver prices, production challenges remained, as new mining projects faced rising costs and permitting hurdles.

Analyst Sees Significant Upside as IBW Resource Expands

A March 17 report from Clarus Securities highlighted a substantial increase in the mineral resource at the Iberian Belt West (IBW) project, with the total global resource growing by 37% to 25.77 million tonnes at 8.51% zinc equivalent (ZnEq), adjusted for recoveries. Analyst Varun Arora noted that this increase exceeded expectations, particularly at the La Romanera deposit, which added more than 5 million tonnes while improving its ZnEq grade to 7.85%, up from 7.49%. "We were only expecting approximately 2 million tonnes in resource growth and are pleasantly surprised by the significant increase of 33%," Arora stated. He attributed the expansion to step-out drilling that extended mineralization by 150–200 meters below the prior resource boundary, as well as improved metallurgical recovery assumptions, especially for gold.

The report also introduced a maiden mineral resource estimate for the El Cura deposit, which came in at 1.3 million tonnes, slightly below Clarus' initial projection of 2 million tonnes. Arora explained that the lower estimate resulted from drill density constraints, noting that further infill drilling should add more tonnage. He described El Cura as a high-grade, copper-rich deposit with a copper equivalent (CuEq) grade of 3.16%, including a strong gold credit of 1.44 grams per tonne. Looking ahead, Clarus projected continued resource growth at El Cura and La Romanera, estimating that El Cura's resource could more than triple to approximately 4 million tonnes with further drilling.

Clarus maintained a Speculative Buy rating on the company and assigned a CA$3.15 target price, citing multiple upcoming catalysts. The firm identified key milestones, including an environmental certificate for IBW expected in the first half of 2025, continued drilling at El Cura and La Romanera, and a preliminary economic assessment (PEA) slated for late Q3 or early Q4. Arora emphasized that IBW's permitting progress and metallurgical advancements positioned the project for long-term growth, reinforcing its potential as a significant asset in the Iberian Pyrite Belt.

IBW Expansion and Permitting Progress Strengthen Project Outlook

Emerita continues to advance its IBW project through ongoing drilling and metallurgical studies. as explained in its investor presentation The company is conducting further exploration at El Cura, where mineralization remains open in all directions. Additional drilling is also underway at La Romanera and La Infanta to expand the known resource base.

The company has also submitted an application for an exploitation license, which, if approved, would grant a 30-year operating term renewable up to 90 years. IBW has been designated as a project of strategic interest by the Andalusian government, which is expected to expedite permitting. Concurrently, metallurgical test work is being refined to optimize gold and base metal recoveries, further supporting the development of a future economic study.

Emerita is progressing toward the completion of a preliminary economic assessment (PEA) expected in the first half of 2025. The study will integrate the expanded resource estimate and updated metallurgical findings to assess the viability of IBW's development. As the company advances its permitting process and resource expansion efforts, it aims to position IBW as a key player in the Iberian Pyrite Belt, a region known for hosting large-scale polymetallic deposits.

Ownership and Share Structure

According to Refinitiv, management and insiders own 5.65% of Emerita. Of those, Michael Lawrence Guy owns 1.46% of the company, David Patrick Gower owns 1.31%, and Joaquin Merino-Marquez owns 1.05%.

Institutions own 1.13% of the company, including Merk Investments LLC, with 1.05%.

According to Refinitiv, there are 261.04 million shares outstanding with 246.3 million free float traded shares, while the company has a market cap of CA$360.24 million and trades in a 52-week range of CA$0.38 and CA$2.00.