Sentinel Resources Options Waterloo Silver-Gold Property Near Vernon, BC; Announces Private Placement to Raise $500,000

Sentinel Resources Corp. is pleased to announce it has entered into an option agreement with RebelEX Resources Corp., to acquire up to a 100% interest in the historic Waterloo silver-gold property, located near Vernon, British Columbia. President and CEO, Rob Gamley commented, “I am pleased to announce the addition of the Waterloo silver-gold property to Sentinel’s BC exploration project portfolio. The Waterloo …

Sentinel Resources Corp. (CSE: SNL) (US OTC PINK: SNLRF) (“Sentinel” or the “Company”) is pleased to announce it has entered into an option agreement with RebelEX Resources Corp., to acquire up to a 100% interest in the historic Waterloo silver-gold property, located near Vernon, British Columbia.

President and CEO, Rob Gamley commented, “I am pleased to announce the addition of the Waterloo silver-gold property to Sentinel’s BC exploration project portfolio. The Waterloo project, which includes the historic Waterloo Mine, has clearly shown the potential to host high-grade silver and gold mineralization. Historic work on the project such as geological mapping and prospecting have produced compelling results of high-grade silver and gold – metals which have been mined in the region for over 100 years.”

Waterloo highlights:

  • Road accessible, 3,130 hectare project close to developed infrastructure
  • High-grade silver and gold veins exposed over an area of approximately 4 .0 by 0.7 kilometers
  • Grab samples from historic workings returned assays of 2,790 grams per tonne (g/t) silver (Waterloo) and 45.70 g/t gold (Au showing)
  • The property has not been systematically drill tested and numerous untested targets are defined

Waterloo Property

The Waterloo Property consists of 3,130 hectares located in the historic Lightning Peak silver and gold camp in the Vernon Mining District. The property is host to numerous high-grade silver and gold showings exposed over an area of 4.0 by 0.7 kilometers. Central to the property is the historic Waterloo Mine that has seen sporadic production of high-grade silver since 1903, resulting in numerous shipments of ore to the Trail, BC smelter in 1954, 1967 and 1983. The Waterloo Mine is centered east-west striking shear zone, host to structurally controlled high-grade silver, lead and zinc mineralization (Waterloo structure). This zone is reportedly mineralized along its mined length (approximately 550 meters in the #4 adit) including numerous higher grade sections from vertically oriented ore shoots. Based on geophysical and geochemical surveys, previous operators have interpreted the Waterloo structure to extend below thick cover to the east, with a potential strike length of up to two kilometers. The structure has never been systematically drill tested over its proposed length or at depth.

Gold dominant showings (e.g., the Au showing located 550 meters northeast of the Waterloo Mine) are hosted in north-south trending quartz – sulphide veins with associated iron carbonate alteration. The Forge area, 590 meters east of the Waterloo mine and 850 meters south of the Au showing, marks the projected intersection of the east-west trending Waterloo structure and the north-south trending structures of the Au showing. These zones of structural intersections remain largely untested and represent priority targets for follow-up.

Table of selected grab sample assays compiled from previous operators

Target

Sample

Type

Ag (g/t)

Au (g/t)

Pb (%)

Zn (%)

Forge East

1717023

grab

3,095

3.8

0.47

0.71

Forge East

1710502

grab

1,507

2.81

0.44

0.03

AU Showing

1717037

grab

794

45.7

7.82

3.63

AU Showing

J486140

grab

141

25.4

1.8

0.69

Waterloo

1717035

grab

1,482

0.03

1.81

26.77

Waterloo

1710270

grab

1,159

0.02

18.53

7.53

Waterloo

E924007

grab

2,790

0.01

1.94

3.82

All results stated above were previously reported by former project option holder, Tower Resources Ltd. Samples were reportedly collected from outcrops, trenches, and dump piles located near old workings. Sentinel cautions readers that grab samples are selective by nature and the resulting assays from the samples may not be representative of all the mineralization on the property.

Project maps showing the locations of the main target areas are found on the company’s website (www.sentinelexp.com).

Option Terms

Terms of the Option Agreement include the right of Sentinel to exercise the Option and acquire the 100% Interest is conditional on Sentinel:

  1. Making cash payments to RebelEX of an aggregate of $200,000, including: (i) $30,000 within ten (10) Business Days of the Effective Date; (ii) $30,000 on or before the date that is twelve (12) months following the Effective Date; (iii) $40,000 on or before the date that is twenty four (24) months following the Effective Date; (iv) $40,000 on or before the date that is thirty six (36) months following the Effective Date; and (v) $60,000 on or before the date that is forty eight (48) months following the Effective Date;
  2. Issuing to RebelEX the aggregate amount of 4,000,000 common shares in the capital of Sentinel (the “Option Shares”) as follows: (i) 300,000 Common Shares within ten Business Days following the Effective Date; (ii) 600,000 Common Shares on or before the date that is twelve (12) months following the Effective Date; (iii) 700,000 Common shares on or before the date that is twenty four (24) months following the Effective Date; (iv) 800,000 Common Shares on or before the date that is thirty six (36) months following the Effective Date: (v) 1,600,000 Common Shares on or before the date that is forty eight (48) months following the Effective Date;
  3. Funding aggregate Expenditures on the Property of $1,200,000 as follows: (i) $200,000 on or before the date that is twelve (12) months following the Effective Date; (ii) $250,000 on or before the date that is twenty four (24) months following the Effective Date; (iii) $250,000 on or before the date that is thirty six (36) months following the Effective Date; and (iv) $500,000 on or before the date that is forty eight months following the Effective Date.

After Sentinel has earned the 100% Interest, Sentinel will pay to RebelEX a royalty (the “Royalty”) being equal to 2% of Net Smelter Returns. Sentinel may purchase 1% of the Royalty Interest, for $1,000,000.

In connection with the transaction, Sentinel will pay an arm’s length finder of 435,000 common shares over the term of the Option Agreement.

Financing

Sentinel also announces that the Company has arranged a non-brokered private placement financing of up to 2 million units at a price of 25 cents per unit for gross proceeds of up to $500,000. Each unit comprises one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share for 40 cents for a period of one year from the date of issuance. The Company may pay a finder’s fee in connection with the offering to qualified non-related parties, in accordance with the policies of the Canadian Securities Exchange.

Proceeds from the offering will be used for general working capital purposes. All securities issued under the offering, including securities issuable on the exercise thereof, are subject to a hold period expiring four months and one day from the date of issuance. The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the exchange.

About Sentinel Resources

Sentinel Resources is a Canadian-based exploration company focused on the acquisition and exploration of gold and silver projects with world-class potential. Its current portfolio includes the Waterloo, Pass, and Little Bear projects in British Columbia. For more information, please go to the Company’s website at www.sentinelexp.com.

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Greg Bronson, P.Geo, a director of the Company and a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Greg Bronson, P. Geo., a Qualified Person as defined by NI 43-101, has reviewed and approved the contents of this news release.

Historical exploration data summarized in this release are compiled from publicly available assessment reports (http://aris.empr.gov.bc.ca) and news releases (www.sedar.com). Assays and geological observations have not been verified by Sentinel. All quoted assays are accompanied in the assessment reports by copies of certified laboratory assay certificates.

Sentinel Resources Corp.

“Rob Gamley”
President and Chief Executive Officer

Neither the Canadian Securities Exchange (“CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE Sentinel Resources Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2020/02/c1214.html

T – 604.689.7422, F – 604.689.7442, 204 – 998 Harbourside Drive, North Vancouver, BC, V7P 3T2Copyright CNW Group 2020

News Provided by Canada Newswire via QuoteMedia

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Featured

District-scale potential in world-class jurisdictions

This Sentinel Resources profile is part of a paid investor education campaign.*

Overview

Sentinel Resources (CSE: SNL,OTC:SNLRF) is a Canadian exploration company targeting high-quality precious metals through the strategic acquisition of resource-rich properties located within world-class mining jurisdictions. The company's projects are currently in Australia, Peru and Canada. Each project benefits significantly from low-cost of entry or acquisition and easy access to infrastructure, minimizing capital and operational costs during explorational periods.

The company's flagship projects, located in New South Wales (NSW), Australia, have district-scale potential. NSW lies on the east coast of Australia and has been established as a prospective state for gold exploration and production since the 1850s. Between 2015 and 2016, NSW produced over 37 tonnes of gold, valued at AU$1.9 billion. Sentinel's property package in NSW includes 94,500 hectares and eight gold projects. At least 198 historic gold mines and gold exploration prospects are present across the NSW property package. Historic production records indicate that gold grades were often multi-ounce.

Sentinel has also acquired, through staking, seven silver-focused exploration concessions totaling 38,600 hectares in NSW. Sentinel's property package includes at least 23 historic silver and three historic gold mines and exploration prospects. Historic production records indicate high-grade silver production that exceeded 1 kg/t. Sentinel's technical team is currently reviewing historic data in order to fast-track reconnaissance follow-up and definition of high-grade, drill-ready targets.

Rob Gamley, president and CEO of Sentinel, commented, “The acquisition of eight strategically located gold projects within the prolifically mineralized Lachlan and New England orogenic belts provides the company with an extremely solid exploration portfolio on which to build. To acquire such a commanding land package, with numerous high-grade historic gold mines and showings, is a remarkable achievement given the large numbers of companies that are now focusing their acquisition and exploration activities in New South Wales. Our highly experienced team continues to review precious metal opportunities worldwide." The company's NSW property package is 100 percent owned with no NSRs, back-in rights, future cash payments or royalties.

Sentinel recently appointed a seasoned technical team with a proven track record of success in exploration. Gamley stated, “We are delighted to announce the appointment of such an experienced exploration and development team, which has over 90 combined years of experience in over 80 countries, across almost all commodities and deposits types, from grass roots through to resource definition and advanced project development. The technical team has significant public market experience and understands the importance of economically focused, results-driven exploration."

The company's property portfolio also includes the Salama project in Peru and the Waterloo project in British Columbia. The Waterloo property can be found 65 km east of Kelowna, near the historic Lightning Peak, a high-grade gold and silver mining camp. Several high-grade drill targets have been identified on-site. While the area has received attention historically, the Waterloo property has never been systematically drilled — Sentinel intends to capitalize on the significant potential for low-cost, high-grade gold and silver development.

The company's Salama project consists of four gold-focused exploration concessions totaling 2,700 hectares located in the Anta province of Peru. The project is situated within the prolific gold-polymetallic Miocene skarn and porphyry belt. More than 20 million ounces of gold has been produced within a 45 km radius of the Salama concessions from established mines such as the Lagunas Norte, La Virgen, La Arena and others.

Sentinel Resources' Company Highlights

  • Projects are located in mining-friendly jurisdictions: Australia, Peru and Canada.
  • The eight gold projects and seven silver projects in NSW, Australia, are 100 percent owned.
  • The NSW projects have no NSRs, future cash payments, back-in rights or royalties.
  • The technical team has a proven track record of success in exploration and development.
  • The Waterloo project is located near the historic Lightning Peak, a high-grade gold and silver mining camp.
  • The Salama project is located within the prolific gold-polymetallic Miocene skarn and porphyry belt in the Anta province of Peru. The surrounding region has produced more than 20 Moz of gold.

Sentinel Resources' Key Projects

New South Wales Project (Australia)

Sentinel's current NSW portfolio includes high-grade gold and silver orogenic projects. The portfolio consists of eight gold-focused concessions (Star of Hope, Golden Bar, Alliance Reef, Stanleys, Lady Mary, Waddery West, Wittagoona Reef and Toolom South) and seven silver-focused concessions (Wallah Wallah, Stony Creek, Carrington, Dartmoor, Glens Skarn, Broken Hill West and Goongong). At least 198 historic gold mines and 23 historic silver mines and exploration prospects are present across the entire NSW property package. Historic production records indicate that gold grades were often multi-ounce and that silver grades were generally high-grade and exceeded 1 kg/t Ag in some instances.

Mineralization

Five of Sentinel's eight NSW gold projects are located within the New England orogenic terrane, which hosts an extensive network of alluvial gold fields and, historically, has attracted a significant number of underground gold and silver mines. For instance, Toolom South, one of Sentinel's NSW gold projects, covers 165.5 square kilometers that includes over 60 historic gold mines and high-grade gold showings. Another project, Alliance Reef, traces 12 kilometers of the significantly mineralized Peel-Manning fault system. The Golden Bar covers nearly 200 square kilometers of the historic Orara-Coramba gold field.

Three projects are located within the Lachlan orogenic terrane of New South Wales, Victoria and eastern Tasmania. The Lachlan terrane is similarly prolific when it comes to economically significant mineralization of precious metals. The Stanleys property encompasses 90 square kilometers, and the land has hosted 17 historic gold mines and high-grade showings. Historic records cite production grades of up to 185 g/t gold. The Lady Mary property indicates 15 historic hard-rock mines and prospects. The primary target on the Warraderry West property is a 15 km gold-mineralized dyke swarm.

Six of Sentinel's seven NSW silver projects are located within the Lachlan Orogenic terrane, which comprises a series of well-mineralized accretionary terranes formed during the Ordovician and Early Carboniferous Period, making the exploration potential for silver excellent. For example, the Wallah Wallah covers 99 square kilometers, including 6 historic high-grade silver mines. Historic records indicate several thousand tonnes of material was processed at grades of 950 g/t Ag and 30 percent Pb.

Stoney Creek, another project, is an 81 square kilometer license hosting 7 high-grade historic silver and gold mines and showings. Carrington contains a number of historic mines and workings within gold-silver mineralized gossanous lodes; historic rock chip grab samples of this material assayed up to 85 g/t Au, 6037 g/t Ag, 24.85 Pb and 16.75 percent Sb. In the Curnamona Province, the Broken Hill West project is located 2.5 kilometers west of the Broken Hill mine complex and shares the same geological setting and structure.

Next Steps

The evaluation of all 198 historic mines and prospects in phase one is almost complete. Selection of the top 50 percent ranked targets will be prioritized for phase two and the remaining 50 percent will be considered for joint venture or subsequent development. Phase two of exploration involves geological mapping to estimate maximum depths, strike continuity and other critical details. A combination underground and surface regolith sampling will verify historical sampling grades and extend mineralised surface footprints. Data from phase two will inform geochemical surface sampling and geophysical surveys in phase three, which will focus on identifying robust drill-ready targets.

Salama Project (Peru)

The Salama property totals 2,700 hectares in the Anta province of Peru. The property is situated within the prolific gold-polymetallic Miocene skarn and porphyry belt, one of several metallogenic belts that run parallel to Peru's coast and have hosted the country's most significant deposits. Preliminary reviews reveal an extensive network of quartz veins with localized silicified breccias, which have been the focus of high-grade historic gold mining in the area. Historic production at the nearby La Virgen gold mine totaled 12 Koz gold per annum.

Map of Salama Gold Project in Peru

Waterloo Project (BC, Canada)

The Waterloo property covers 3,130 hectares in Kelowna, a mining-friendly jurisdiction located within British Columbia. Historically, the property has hosted a number of high-grade gold and silver operations since the early 1990s. High-grade prospects define a 4 kilometer strike from east to west, underscoring the potential for high-quality resource development that benefits from existing infrastructure.

Sentinel Resources' Management Team

Rob Gamley—President, CEO and Director

Rob Gamley's career spans over 10 years in corporate finance and consulting, providing corporate strategy and communications services to public companies across a broad range of industries including natural resource exploration and development. He has been a board member of several TSXV-listed companies and brings extensive capital markets experience and a considerable network of both retail and institutional contacts. Gamley graduated in 1998 with a Bachelor of Science from the University of British Columbia.

Dr. Peter Pollard—Director and Chief Geologist

Dr. Peter Pollard brings more than 30 years of global research and mineral exploration consulting experience. He is a recognized expert in intrusion-related mineralized systems including copper-gold porphyry (e.g. Grasberg, Escondida Norte, Oyu Tolgoi, Ok Tedi, SarCheshmeh district), tin-tungsten-molybdenum-bismuth-gold (e.g. Herberton, Zaaiplaats, Timbarra, Mongolia), iron-oxide copper-gold-uranium (e.g. Olympic Dam, Carajas, Cloncurry, Chile, Mexico, Mauritania) and gold-silver systems (low-sulphidation, high-sulphidation, mesothermal).

Pollard has presented short courses on ore deposit geology to the industry for more than 25 years. He has been a regular speaker at major conferences and has significant experience presenting to analysts, shareholders and board members. He is a qualified person (NI43-101 and JORC) with strong technical and scientific writing skills. Pollard has been engaged as a reviewer of papers for international journals and has authored, or co-authored, over 70 peer-reviewed scientific publications. Pollard has held a number of board positions in public and private companies.

Danny Marcos—Exploration Manager

Danny is a field-orientated exploration geologist with over 30 years of experience. This included responsibility for the review and prioritisation of precious and base metals projects for both major and junior companies — including the design and management of field mapping and geochemical programs, data compilation/review and target generation. He has a strong focus on delivering results including completion of large drill programs from regional (greenfields) to advanced/resource stage. Marcos has specialist experience with porphyry Cu-Au systems; low, intermediate and high sulphidation Au-Ag epithermal deposits; orogenic Au; and base-metal and nickel mineralization. He was a key member of the WMC technical team that discovered the Tampakan Cu-Au deposit in the Philippines — a resource of 15 Mt Cu and 17.6 Moz Au.

Marcos has proven ability managing multidisciplinary and multi-cultural, high talent teams under diverse cultural and physiographic regimes, having spent considerable time exploring in Australia and Asia-Pacific. Marcos has a strong understanding of deposit models and key controls on mineralization, allowing for robust drill targeting of high priority targets. He has a strong economic focus and is experienced in identifying business development for potential growth opportunities.

Dr. Chris Wilson—Senior Advisor

Dr. Chris Wilson is a commercially driven and innovative exploration geologist with over 30 years of global experience in area selection and prospect generation, target generation and the design and management of large resource definition drilling and pre-feasibility programs. He has worked in over 75 countries, on most commodities and deposit styles. Wilson has extensive project review and target generation experience, with the ability to integrate complex multi-disciplinary datasets and rapidly identify and test high value targets. A strong deposit model knowledge ensures key controls on mineralization are placed within the wider context of a project's geological, structural and hydrothermal evolution. Most recently Wilson has been involved in global project valuation and fatal flaw analysis for high net-worth investors.

Wilson is a Qualified Person for JORC and NI 43-10 compliant reporting and valuation. He has worked for Ivanhoe Mines for 10 years as an exploration manager. At Mongolia, he was responsible for an exploration portfolio of over 11 million hectares. He has extensive public market and public company experience including board of director positions.

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On 2 March 2021 the Australian Taxation Office issued Rio Tinto Limited with amended assessments related to the denial of interest deductions on an isolated borrowing used to pay an intragroup dividend in 2015. The borrowing was repaid in 2018. The ATO has today issued further assessments in relation to the same transaction levying penalties of A$352m and reducing the original interest assessment from A$47m to A$27m …

On 2 March 2021 the Australian Taxation Office (ATO) issued Rio Tinto Limited with amended assessments related to the denial of interest deductions on an isolated borrowing used to pay an intragroup dividend in 2015. The borrowing was repaid in 2018.

The ATO has today issued further assessments in relation to the same transaction levying penalties of A$352m (US$257.9m) and reducing the original interest assessment from A$47m to A$27m (US$19.8m).

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Ioneer Ltd is pleased to announce that the Company has reached an agreement to establish a joint venture with Sibanye Stillwater Limited to develop the flagship Rhyolite Ridge Lithium-Boron Project located in Nevada, USA . Under the terms of the agreement, Sibanye-Stillwater will contribute US$490 million for a 50% interest in the Joint Venture, with ioneer to maintain a 50% interest and retain operatorship. ioneer …

Ioneer Ltd (“ioneer" or the “Company") (ASX: INR) is pleased to announce that the Company has reached an agreement to establish a joint venture (the " Joint Venture “) with Sibanye Stillwater Limited ( “Sibanye-Stillwater" ) to develop the flagship Rhyolite Ridge Lithium-Boron Project located in Nevada, USA (the “Project" ). Under the terms of the agreement, Sibanye-Stillwater will contribute US$490 million for a 50% interest in the Joint Venture, with ioneer to maintain a 50% interest and retain operatorship. ioneer has also agreed to provide Sibanye-Stillwater with an option to participate in 50% of the North Basin 1 upon the election of Sibanye-Stillwater to contribute up to an additional US$50 million subject to certain terms and conditions.

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Australia took a stand against Facebook and Google earlier this year, and the move could have long-term implications for tech investors.

It was a ban that sent Australians wild and had the whole world watching.

Back in February, Facebook (NASDAQ:FB) stopped users in Australia from posting news in a week-long blackout, reacting to proposed legislation that would have forced the social media behemoth to pay publishers for content.

What prompted Facebook to "friend" Australia again, and what are the potential long-term implications of the squabble? Read on to learn what tech-focused investors in Australia should know about the situation.


Australia squares off against Facebook

On February 25 of this year, Australia's federal government passed the News Media and Digital Platforms Mandatory Bargaining Code. It was developed after extensive analysis by the Australian Competition and Consumer Commission, and is aimed at ensuring that news media businesses are fairly remunerated for their content.

It stipulates that digital platforms such as Facebook and Google (both named in the documentation) must pay news outlets whose content they feature — for example, if content is shared on Facebook or shows up in Google search results. The idea is that this will help to sustain journalism in Australia.

Unsurprisingly, Facebook and Google didn't react well to the code, which was first introduced in 2020.

Google didn't make any moves after it passed, but Facebook quickly made it impossible for Australian users to share news content, and pages for both local and international news organisations went blank — a major concern given the COVID-19 and wildfire concerns that were circulating at the time.

Australian Prime Minister Scott Morrison was scathing about Facebook's decision — which he ironically shared in a Facebook post — declaring the tech giant's actions "as arrogant as they were disappointing." He added, "These actions will only confirm the concerns that an increasing number of countries are expressing about the behaviour of BigTech companies who think they are bigger than governments and that the rules should not apply to them."

Despite strong feelings from both Australia and Facebook, the dispute was resolved fairly quickly, with the country agreeing to make four amendments to the legislation and Facebook restoring Australian's access to news.

Implications for Big Tech and news organisations

Both Australia and Facebook have claimed victory in the dispute, with a Facebook representative saying the company will be able to decide if news appears on the platform — meaning it won't automatically have to negotiate with any news businesses. Changes were also made to the arbitration process.

Tech experts have pointed out that larger news companies may ultimately benefit from the changes, but smaller ones could be pushed to the side. Major publishers that have struck agreements with tech giants, such as News Corp, Nine Entertainment (ASX:NEC,OTC Pink:NNMTF), Seven West Media (ASX:SWM) and Guardian Australia, may be able to increase their market share while smaller independent players lose out.

A business that is in full support of the laws is Microsoft (NASDAQ:MSFT). During the conflict, President Brad Smith came out loudly in favour of Australia's law, and advised that his company is willing to step up with search engine Bing should Google and/or Facebook pull out of the Australian market.

"In Australia, Prime Minister Scott Morrison has pushed forward with legislation two years in the making to redress the competitive imbalance between the tech sector and an independent press. The ideas are straightforward. Dominant tech properties like Facebook and Google will need to invest in transparency, including by explaining how they display news content," he said in a blog post.

"The United States should not object to a creative Australian proposal that strengthens democracy by requiring tech companies to support a free press. It should copy it instead."

Global reach and tech investor impact

Six months down the road from Australia's landmark legislation, it's tough to say what the long-term impact may be.

That said, market watchers do believe the country is part of a new precedent of forcing Big Tech into paying for journalism — something giants Facebook and Google are not used to.

Countries looking to pursue similar legislation include Canada, where Facebook agreed in May to pay 14 publishers to link to their articles on its COVID-19 and climate science pages, as well as other unspecified use cases. Canada is pursuing other avenues too. Meanwhile, in France, Google said it will pay publishers for news content after the country took up new EU copyright laws that make digital platforms liable for infringements.

For investors, the takeaway is perhaps that while companies like Facebook and Google may seem too big too fail, they too can fall subject to new regulations that can change how they do business. As nations around the world look to take back control from these mega companies, it's important to be aware of possible effects on their bottom lines.

Don't forget to follow @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.

Queensland is the 16th most attractive jurisdiction in the world, sneaking in above BC and the Yukon in Canada, and just behind New Mexico in the US.

Queensland is one of the top three Australian jurisdictions for copper.

While it's well behind South Australia, a behemoth in the country for resources and production, Queensland hosts some 12 percent of all known Australian copper deposits, level with its southern neighbour New South Wales.

A premier mining jurisdiction globally, Queensland is ranked third out of all Australian jurisdictions for mining investment attractiveness, according to the Fraser Institute. Globally, it's ranked as the 16th most attractive jurisdiction, sneaking in above BC and the Yukon in Canada, and just behind New Mexico in the US.


The state is renowned for its mining prowess in Australia, and is known as one of the resource states, with a large chunk of its economic heft coming from the mining industry and its operations across the vast state.

Overall, mining accounts for 11.7 percent of Queensland's economy, with coal and liquefied natural gas being the primary focus of output. Together, coal, gas and mineral exports account for over 80 percent of Queensland's exports, according to the state government.

Having said that, copper plays a large role, and Queensland is home to the second biggest producer of copper in Australia in the form of Glencore's (LSE:GLEN,OTC Pink:GLCNF) Mount Isa mining complex in the northwest of the state. There, Glencore owns and operates the Enterprise and X41 mines.

Aside from Mount Isa, Glencore owns the nearby Ernest Henry copper mine. Combined, Glencore's Queensland operations produced 138,800 tonnes of copper in 2020 — accounting for a little over 10 percent of the company's global copper production. Glencore isn't listed on the ASX, but can be found on the LSE.

Besides the Mount Isa complex itself, there's also a handful of other operational mines in the northwestern portion of the state, although most of them are privately owned, such as the Capricorn copper project, which is a joint venture between EMR Capital and Lighthouse Minerals; it secured itself "prescribed project" status in 2017.

Other privately owned projects include Round Oak's Barbara project (in care and maintenance), Chinese-backed CuDECO's Rockland copper project (mothballed, CuDECO in liquidation) and Chinova's Osborne mine — which was originally set up by Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF). There's also the Balcooma mine, which Royal Gold (NASDAQ:RGLD) has copper royalties on, and the privately owned Mount Cuthbert mine.

Many of the mentioned projects ran into trouble in 2020, with the COVID-19 pandemic limiting company operations.

All in all, Queensland has 13 operational copper mines, but as can be seen many are in private hands, making investment opportunities somewhat slim. Aside from previously mentioned Glencore operations, there's Red River Resources (ASX:RVR,OTC Pink:RRRDF), which owns the Thalanga operations near Charters Towers. Red River acquired Thalanga in 2014, and has been working to develop the legacy site back into a viable investment.

From the beginning of production in 2017, the operations have a lifespan of some 10 years, according to Red River, with further development and exploration options on the table. In its most recent quarterly report, Thalanga reported output of 3,086 tonnes of copper concentrate.

The remainder of the options on the table for investors are exploration focused, such as Copper Mountain Mining (ASX:C6C,OTC Pink:CPPMF) with interests in the Eva copper project, which is — unsurprisingly — in the northwest of the state, near the town of Cloncurry. Eva is in the development phase, with a feasibility study completed in early 2020 envisaging a 15 year mine life with an annual expected output of 106 million pounds of copper equivalent.

There's also Global Energy Metals (TSXV:GEMC,OTCQB:GBLEF), which like Glencore isn't on the ASX, but has interests in the Millenium cobalt-copper-gold project and others near Mount Isa — all in the exploration stage.

Aside from that, Strategic Energy Resources (ASX:SER) acquired exploration licences from Newcrest Mining (ASX:NCM,OTC Pink:NCMGF) in May 2021 for licences around Mount Isa, and Zenith Minerals (ASX:ZNC) is exploring the Develin Creek copper-zinc project. Zenith recently divested from another copper project, Flannagans, in June 2021 by selling its interests to a private company for $450,000.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Scott Tibballs, currently hold no direct investment interest in any company mentioned in this article.

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