Click here to print page

Carube smells gold and copper at Bellas Gate

BY KARENA BENNETT
Business reporter
bennettk@jamaicaobserver.com

Wednesday, October 04, 2017

CANADIAN firm Carube Resources, which has already drilled through roughly two kilometres of rock in its search for copper and gold in Jamaica, hopes to get a toehold in the electric vehicle market for the sale of its copper.

Carube Resources recently completed a total of 1895.8 metres of drilling in seven holes at its 100 per cent owned Bellas Gate property in St Catherine.

President and CEO Jeffrey Ackert has described the find in Jamaica as comparable to two existing models: Northparkes, owned first by leading global mining group Rio Tinto; and Cadia East and Ridgeway, owned by Newcrest Mining. The projects are located in Eastern Australia.

“Both of these projects are big systems and show similar features where they have a series of porphyries lined up along different zones. To give you an idea of how much metal exists in these systems, Cadia's 2016 reserves hold over 40 million ounces of gold and over 19 billion pounds of copper. Ideally, if we have even half of that at Bellas Gate, we would count that as a success for us and for our shareholders,” Ackert said.

With the find, the company says it is now bullish on copper prices as consumer demand for copper in the form of electrification of vehicles trends upward. According to Ackert, companies are becoming less reliant on commodities like oil and gas, which may be very expensive in the future, and instead are turning to more environmentally friendly ways to fuel vehicles.

“I think that's where copper is going to get a really big kick in demand, whether it's for your car, your electric motorcycle or your electric bus. The electrification of both the First and Second World is really going to generate a lot of demand.

“It's the junior explorers that are taking the risk at this point with their shareholders to find the new deposits that will feed this demand and enable consumers for 10 years, 20 years, 30 years down the road. I think we're in a good space at a very good time,” he reasoned.

The Canadian exploration company enjoys first-mover status in Jamaica, a historically mining-friendly jurisdiction with excellent infrastructure, including deep-water shipping ports.

Ackert has highlighted the country's politically stable government and British-based constitution and legal system as reasons for its acquisition of the Bellas Gate property, in addition to similar geology to that of Chile, Argentina and the Dominican Republic — all of which are productive mining jurisdictions.

By the end of last year, Carube had 11 licensed areas in Jamaica, some of which were acquired from former joint venture partner Oz Minerals. With its 11 licences, the company wants to prepare two licences for drilling and is also waiting assay results on its latest exploration.