Norfolk Strikes Copper Deal in Chile’s Famed Atacama Region

Norfolk Metals (ASX: NFL), has secured a foothold in Chile’s copper-rich Atacama Region, one of the world’s premier copper and gold mining jurisdictions. In a binding earn-in agreement announced Monday, the company has a pathway to acquire up to 100% of the Carmen Copper Project (CCP), a sprawling 46.6-square-kilometer concession package with oxide and sulphide resource potential.

A Strategic Leap into Chile’s Copper Heartland

Located 82 kilometers from Vallenar, a major mining hub in Chile’s Huasco Province, the Carmen Copper Project sits in the Atacama Region, home to some of the planet’s largest copper deposits.

Notably, the CCP lies 16 kilometers south of the Relincho copper project, a multi-billion-dollar endeavour under the Nueva Union joint venture between Teck and Newmont. That proximity underscores the project’s pedigree, placing Norfolk in a neighborhood of proven giants.

The Carmen project isn’t a blank slate. It has a historical mineral resource estimate of 5.6 million tonnes at 0.6% copper, reported under Canada’s National Instrument 43-101 standards by SRK Consulting in 2007. While this estimate predates Australia’s JORC Code and requires validation, it offers a starting point.

High-grade oxide intercepts—such as 27.5 meters at 1.12% copper from 1.5 meters depth, including 11.5 meters at 1.88%—hint at near-surface potential amenable to cost-effective heap leaching. Beneath that, sulphide zones have previously demonstrated intercepts like 69 meters at 1.37% copper, including 24 meters at 2.15%, suggesting deeper riches yet to be fully assessed.

“I am pleased to announce this transformational opportunity for Norfolk,” said Executive Chairman Ben Phillips in the announcement. "We have secured the right to earn-in to a highly prospective, scalable, value accretive and easily accessible copper project in one of the most prolific copper producing areas in the world.” Phillips highlighted the dual appeal of oxide resources ripe for rapid development and sulphide potential that could anchor a longer-term play.

The Deal: A Calculated Bet

Under the terms of the earn-in agreement with Transcendence Mining Pty Ltd., Norfolk will fund A$3 million in exploration over three years to secure 70% of Transcendentia Mining Pty Ltd., a subsidiary holding an exclusive option over the CCP. Upon meeting that milestone, Norfolk can opt to acquire the remaining 30% through share-based payments, potentially consolidating full ownership. Transcendence, in turn, brings a seasoned in-country team to the table, with the right to appoint a board nominee to Norfolk and steer operations via a joint committee.

Norfolk has secured firm commitments for a A$1 million capital raise at A$0.10 per share, with participation from Transcendence directors and its own board, pending shareholder approval. It’s a modest but critical war chest to kickstart exploration, with plans for a maiden drilling program of roughly 4,000 meters across 40 pads slated to begin soon.

Oxide and Sulphide: A Two-Pronged Prize

Part of the Carmen Copper Project’s allure lies in its dual mineralization profile. The oxide zone, stretching over 600 meters of strike and open in all directions, offers potential "low-hanging fruit". Historical column tests by the CIMM Lab in Antofagasta showed copper recoveries of 72% to 82% with moderate acid consumption, bolstering the case for heap leaching—a proven, low-cost method to produce copper cathode at the mine gate.

But the sulphide potential could be the real game-changer. High-grade intercepts like 69 meters at 1.37% copper from 43 meters depth in hole TAB 83 signal a robust system that extends to at least 200 meters below the oxide zone. With over 7.5 kilometres of untested strike length along prospective structures, the project’s scale could come to light with further drilling. “We believe there is also significant sulphide potential with several high-grade sulphide intercepts worthy of follow-up drilling programs,” Phillips noted.

Chile’s Copper Crown: A Competitive Edge

Chile, the world’s top copper producer, offers Norfolk a strategic edge. The Atacama Region’s infrastructure—proximity to grid power, major roads, and ports within 180 kilometres—lowers the bar for development. The project’s modest altitude (1,950 to 2,250 meters) and semi-arid climate further ease operational hurdles. Add an experienced local workforce, and the CCP checks boxes for efficiency and scalability, should the project deliver.

The project’s geological setting within the San Felix Fault system, a corridor hosting IOCG, porphyry, and epithermal deposits, aligns it with regional heavyweights. The nearby Nueva Union venture, with reserves of 16.6 billion pounds of copper, underscores the district’s endowment. Norfolk’s challenge will be to convert historical data and untapped potential into a JORC-compliant resource—a step that could catapult its valuation if successful.