Empire Metals’ Share Price Surged 35.6% on the Pitfield Update

Key points:
Empire Metals’ share price surged 35.6% on the Pitfield project update.
The firm noted that Pitfield could have a giant copper mineralisation system.
Investors cheered the news. Are EEE shares a buy? Read on to find out.

The Empire Metals Ltd (LON: EEE) share price surged 35.6% after releasing the results of an expert review of its Pitfield Copper Project in Western Australia. The report showed that the project had the hallmarks of a “Giant” copper mineralised system, which could contain multiple sediment-hosted stratabound copper (SSC) deposits.

The expert identified a substantial magnetic anomaly extending over 40km N-S at Pitfield. The company noted that SSC deposits are significant geological systems that deliver over 20% of copper production globally. In addition, they are often extensive and high-grade deposits.

Also read: The Best Copper And Mining Stocks To Watch In 2022.

Investors cheered the news, as evidenced by Empire Metals’ share price rally. The company intends to expand its exploration of the Pitfield Copper project in Q1 2023 via surface mapping, geochemical sampling and Induced Polarisation (IP) surveying, having identified multiple exploration targets.

While Empire Metals still has a way to go before it can start producing copper at the Pitfield project, investors are excited about the project’s massive potential. The company noted that the Pitfield resource was similar to the massive Udokan Ore Region in Russia, one of the leading global copper production sites.

Shaun Bunn, Empire Metals’ Managing Director, said: “We previously held a strong belief that Pitfield had the potential to contain a major copper deposit with worldwide significance. The results of this expert review, which drew on the findings of the recently completed geophysical surveys, confirm the accuracy of the historical data we inherited and have identified the regional geological features consistent with a Giant copper mineralised system. This makes Pitfield an exciting exploration target for an SSC deposit and an exceptional project on us to focus our exploration efforts on.”

So, would I buy Empire Metals shares? The short answer is yes. The company’s prospects are promising. However, given that the Pitfield resource is still in the exploration stages, investors should be ready to wait until the company starts production to reap the maximum benefits.

*This is not investment advice.

The Empire Metals (EEE) share price.