Good overview article22 May 2018 14:27
http://tinyurl.com/yb9ejszw
Investors interested in how discoveries of this kind in Zambia play out might care to cast their minds back to the end of the last decade when Colin Bird�s Kiwara Resources sold out to First Quantum for US$260mln.
Kiwara�s Kalumbila project is now First Quantum�s Sentinel mine, slated to produce 220,000 tonnes of copper this year, and with a mine life stretching out at least 15 years.
More to the point though, it�s just to the south of Arc�s Kalaba project sitting on the other end of the 100 kilometre by 40 kilometre geological structure known as the Kabompo Dome.
When Colin Bird was working up the area it was fairly new in the consciousness of exploration geologists. Now, it�s well established. And the only reason more work hasn�t been done on the 1,000 square kilometres of ground Zamsort has under licence is that the project has till now been held up by the complexity of its ownership structure and a shortage of available funds.
....But there are also plans afoot to have a look at the wider ground. After all, the potential of the targets that have already been identified is significant. Of Anglo�s historical thirty targets, the seven best lie on Arc�s ground, and it�s worth noting that First Quantum�s now-producing Sentinel mine was ranked much lower, at 22.
So, verification of targets with geochemistry will likely be followed by drilling.
How that gets funded remains an open question. There�s the upcoming cashflow of course. But that may not cover the scale of Arc�s exploration ambitions.
�We have to be tactical how we fund this,� says von Schirnding. �There�ll be no shortage of partners for this project if we want them.�
He has his own routes into family offices and private equity groups. But it�s likely that as Arc consolidates as a two project company the company will weigh its options carefully.
After all, as important as it is to get funded, it�s also important not to give away too much upside.
�This could be worth multiples of what it is today,� says von Schirnding.
Next stop, cash flow
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