Base Metals Explorer Strikes Thick Copper-Gold Zone in Spain

Source: Streetwise Reports 08/20/2025

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) hits thick, high-grade copper-gold-silver-zinc intercepts at its El Cura deposit in Spain. Read more about the 10,000-meter expansion drill program and what it means for the Iberian Belt project.

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) has reported new drill results from the El Cura deposit, part of its 100%-owned Iberian Belt West (IBW) project in southern Spain. The assays include 16.9 meters grading 1.4% copper, 2.1% zinc, 0.93 g/t gold, and 42.66 g/t silver from hole EC067, as well as 7.2 meters of 1.0% copper, 1.9% zinc, 1.31 g/t gold, and 60.10 g/t silver from EC062. Hole EC057 returned a 3.1-meter interval grading 2.3% copper and 4.7% zinc, including a 1.9-meter section at 3.3% copper and 6.2% zinc.

With over 70 holes now drilled at El Cura, Emerita said mineralization remains open at depth. The company approved an additional 10,000 meters of diamond drilling to upgrade existing Inferred Resources and test potential extensions. The deposit is characterized by westward-plunging massive sulfide mineralization, with several intercepts drilled hundreds of meters deeper than historical campaigns from the 1970s and 1980s.

Joaquin Merino, P.Geo., President of Emerita, stated in the news release, “The ongoing success of the drill program at El Cura has led us to approve an additional 10,000 meters of drilling as the deposit remains open for expansion and continues to deliver intercepts of excellent thickness and grade.”

On August 13, the company announced a CA$15 million financing, which was upsized to CA$25 million within hours and ultimately closed the book at CA$26 million due to strong investor demand. The company stated that this financing puts Emerita in a strong position to accelerate the development of its projects in Spain.

Base Metals Outlook Driven by Copper Tightness and Zinc Surplus Signals

According to a report published by UBS on August 11, copper prices were forecast to remain above US$10,500 per metric ton by mid-2026, supported by a structural deficit in the market. UBS stated that “copper’s broader fundamentals continue to signal the market remains in deficit for 2025 and 2026,” highlighting ongoing strength in demand relative to constrained supply. The firm noted that recent tariffs targeted semi-finished copper products and copper-intensive derivatives but exempted input materials like ores and concentrates. UBS maintained that price pullbacks would likely be shallow and reiterated its preference for volatility-selling strategies tied to copper.

On August 14, Reuters columnist Andy Home reported that zinc had underperformed other base metals despite London Metal Exchange (LME) inventories falling to their lowest levels in two years. He noted that “LME zinc stocks in Singapore jumped from 58,000 tons to more than 200,000 tons in the second half of November” the previous year, with subsequent large outflows not matched by off-warrant inventories. Despite the inventory drop, zinc remained in contango, reflecting market expectations of a growing surplus. Home explained that “the global market registered nearly a 90,000-ton supply surplus in the January-May period,” and pointed to smelter closures in Japan, South Korea, and Australia as contributing to temporary tightness, while Chinese production ramped up. China’s refined zinc output rose 4% year-over-year in the January to July period, with forecasts calling for an acceleration to 7% in August.

A weekly update from Shanghai Metals Market (SMM) on August 15 indicated that the imported zinc concentrate index rose to US$90.3/dmt, a 9.79% week-over-week increase. The report also noted that port inventories of zinc concentrate in China totaled 354,000 tonnes, up 4,600 tonnes from the prior week. Despite increased availability, downstream buyers remained cautious, and procurement activity was limited by off-season demand and regional production curbs. SMM also reported that smelters were seeking benchmark concentrate offers above US$100/t and observed growing zinc stockpiles in social inventories, suggesting hesitancy among buyers in the lead-up to scheduled deliveries and industrial slowdowns.

Expert Analysis Cites Aznalcóllar Project

Robert Sinn of Goldfinger Capital commented on June 27 that Emerita Resources Corp. had taken a dual-track legal approach in its efforts to secure the Aznalcóllar project in Spain.

He noted, “Emerita Resources Corp. filed an appeal of the resolution dated May 30 . . . to be clear, this appeal is distinct from the ongoing criminal trial that is scheduled to conclude in July. Emerita has requested that the permit and the resolution awarding the permit to Minera Los Frailes SL (Spanish subsidiary of Grupo Mexico) be deemed null and void.”

Continued Development Across the Iberian Belt West Project

Emerita is advancing El Cura as a key part of its IBW development plan, which also includes the La Romanera and La Infanta deposits. According to a July 2025 presentation, El Cura hosts 0.53 million tonnes of Indicated Resources and 0.76 million tonnes of Inferred Resources, with grades that include over 1.4% copper and 1.4 g/t gold in both categories.

Metallurgical tests have shown strong recoveries (92.7% for copper and 80.8% for gold) making El Cura a candidate for early production due to its shallow depth, high grade, and proximity to the planned haulage ramp. Four rigs are currently drilling on site, with exploration also planned at the company’s Ontario and Nuevo Tintillo assets.

The IBW project spans approximately 1,545 hectares in the Iberian Pyrite Belt, a region described as supportive of underground mining with no production royalties and fast-tracked permitting under Andalusia’s Declaration of Strategic Importance for critical metals. A prefeasibility study remains on track for late 2025. [OWNERSHIP_CHART-10036]

Ownership and Share Structure

According to Refinitiv, management and insiders own 5.32% of Emerita. Of those, Michael Lawrence Guy owns 1.45% of the company, David Patrick Gower owns 1.3%, and Joaquin Merino-Marquez owns 1.04%.

Institutions own 1.12% of the company, including Merk Investments LLC, with 0.99%.

According to Refinitiv, there are 263.52 million shares outstanding with 249.5 million free float traded shares, while the company has a market cap of CA$300.26 million and trades in a 52-week range of CA$0.38 and CA$2.00.

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1. Emerita Resources is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE, )