Mining giant BHP has committed up to A$40 million to explore potential Tier 1 copper-silver deposits in Botswana through a partnership with Australia-listed Cobre.
Announced on Monday, the agreement provides funding to advance Cobre’s Kitlanya East and Kitlanya West copper projects, located along the northern and southern basin margins of the Kalahari Copper Belt.
Under the earn-in agreement, BHP will invest up to $25 million (approximately A$40 million) in exploration expenditure to acquire a 75% stake in the Kitlanya projects.
An initial $5 million will be invested within the first two years, with a planned budget of $7 million for the first phase of exploration, starting in April 2025.
The partnership follows Cobre’s participation in BHP’s 2024 Xplor programme, which funded a seismic survey at Kitlanya West. BHP will support key exploration activities, including deep diamond drilling and advanced seismic surveys, to assess the potential for large-scale copper-silver mineralisation.
The exploration will focus on the geological structures of the Kalahari Copper Belt, known for its high-grade mineralisation.
BHP Group’s exploration officer, Tim O’Connor, expressed enthusiasm about the partnership, stating, “We are thrilled to continue our collaboration with Cobre, one of BHP Xplor’s alumni, through this agreement.”
Cobre CEO Adam Wooldridge called the agreement a major milestone, emphasizing that BHP’s funding and expertise will help implement a technology-driven exploration programme to identify Tier 1 deposits. He also confirmed that Cobre would continue advancing its flagship Ngami and Okavango copper projects independently.
The Kitlanya projects are located in a geologically promising region of the Kalahari Copper Basin, where structural folds and fault systems create favorable conditions for large-scale copper-silver deposits.
The upcoming exploration programme will target these geological structures, including tight, upright folds and anticline hinge zones, which are considered prime areas for high-grade mineralisation.
Cobre remains optimistic that BHP’s funding will unlock the full potential of the Kitlanya projects, paving the way for further development and discovery.
The agreement also includes provisions for additional payments tied to the declaration of a maiden Joint Ore Reserve Committee-compliant mineral resource, as well as a potential net smelter royalty for BHP if key project milestones are met.
