Testing Finds 'Positive' Results for Base Metal Recoveries in Spain

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Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) announced that its Phase 2 metallurgical testing program for base metals at its wholly-owned Iberian Belt West (IBW) project in Spain found "positive" recoveries for two deposits that "exceeded published recoveries for the actively producing mines in the Iberian Pyrite Belt."

The testing used detailed data from Phase 1 and tested the bulk grades of La Infanta and La Romanera deposits to represent likely future production data for furthering economic analysis of the project, including a revised National Instrument 43-101-compliant mineral resource estimate (MRE).

"This work will provide the parameters for a commercial plant design that can produce three separate concentrates (copper, lead, and zinc) with both grades and recoveries that exceed published recoveries and concentrate grades from mining operations in the district," said Director of Metallurgy Jorge Blanco. "Improving the precious metals recoveries has potential to positively impact the project and represents an important opportunity that appears to be realizable based on the ongoing tests."

El Cura deposit is not included in the data, but sampling is underway there, the company said.

"Metallurgical test results of Phase 2 indicate that copper, lead, and zinc concentrates can be produced at commercial grades from both deposits," the company said in a release. "This represents an improvement relative to Phase 1, where a zinc concentrate and a semi-bulk copper-lead concentrate was produced."

La Infanta metallurgical test Phase 2 normalized data include:

• Copper (Cu) Concentrate: 20.2% Cu Grade, 4.45 grams per tonne gold (g/t Au), 1,503 g/t silver (Ag), and 1.8% mass pull and 42.4% Cu Recovery.
• Lead (Pb) Concentrate: 35.5% Pb and 8.82% Cu Grade, 0.85 g/t Au, 524 g/t Ag, and 7.1% mass pull and 78.3% Pb and 39.7% Cu Recoveries.
• Zinc (Zn) Concentrate: 52.9% Zn Grade, 0.51 g/t Au, 84 g/t Ag, and 8.1% mass pull and 78,0% Zn Recovery.
• Total Precious Metal Recoveries: 50.9% Au and 88.2% Ag.

La Romanera metallurgical test Phase 2 normalized data include:

• Cu Concentrate: 20.1% Cu Grade, 4.12 g/t Au, 1,642g/t Ag, and 0.9% mass pull and 40.3% Cu Recovery.
• Pb Concentrate: 34.3% Pb and 2.9% Cu Grade, 2.88 g/t Au, 494 g/t Ag, and 2.6% mass pull and 58.4% Pb and 17.7% Cu Recoveries.
• Zn Concentrate: 52.6% Zn Grade, 1.25g/t Au, 138 g/t Ag, and 5.0% mass pull and 79.5% Zn Recovery.
• Total Precious Metal Recoveries: 12.3% Au and 46.4% Ag.

Monazite associated with several elements belonging to the LREE (light rare earths, "lanthanides") was detected associated with La Infanta mineralization.

Government Designates Project as 'Strategic Interest'

As outlined in the company's investor presentation, Emerita's IBW project is bolstered by the Andalusian government's designation as a "strategic interest" project, which accelerates permitting.

The project is hosted within the renowned Iberian Pyrite Belt, one of the most productive volcanogenic massive sulfide (VMS) terranes in the world. The IBW Project encompasses three polymetallic deposits, from east to west: Infanta, El Cura, and Romanera.

In May 2023, Emerita released a maiden NI 43-101 compliant mineral resource estimate for La Romanera and La Infanta deposits, and last September applied for the exploitation concession derived from an investigation permit. In February 2024, the Company filed the application to present IBW as strategic for the region.

Technical Analyst Clive Maund emphasized the company's strategic positioning and recent accomplishments.*

"Emerita Resources is exploring and delineating a wide range of base and precious metal deposits, which is definitely the right place to be at this time with a massive broad-based commodities, and especially metals, bull market in prospect that has already begun," Maund wrote.

Additionally, Maund pointed out the positive business environment for resource companies in Europe, stating, "It is a big positive that the business environment for resource companies in Europe is improving."

The Catalyst: Copper Bulls Are Coming

Many metals are in demand for use in batteries and other related technologies as part of the energy transition. Electric vehicles (EVs) use as much as four times the copper as gas-powered cars. According to Credendo, demand for red metal could double by 2035.

"The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy, and the boom in investments in green technologies (e.g., renewables and electric vehicles) and in AI technologies," the site reported last month.

A recent USA Today report said copper was up 12% on the year.

"Long-term optimism prevails, buoyed by potential supply imbalances and increasing demand for copper in green energy projects," Fastmarkets noted in an analysis on October 11.

UBS said increasingly tighter supplies of copper in the coming year could lead to a deficit of more than 200,000 tons in 2025, Mining.com reported.

Ownership and Share Structure

According to Reuters, Michael Lawrence Guy owns 1.54% of the company, David Patrick Gower owns 1.12%, Joaquin Merino-Marquez owns 0.84%, Catherine Stretch owns 0.65%, and Marilia Bento owns 0.4%.

Reuters reported that institutions own 1.19% of the company, including Merk Investments LLC, with 1.11%.

According to Refinitiv, there are 247.39 million shares outstanding with 234.7 million free float traded shares, while the company has a market cap of CA$141.32 million and trades in a 52-week range of CA$0.26 and CA$0.78.