Premium Drills Uncovers High-Grade Copper-Nickel-Cobalt Potential at Selebi North: A Strategic Step-Out Success

The Selebi North project, part of Premium Drills’ exploration portfolio in Botswana, has delivered compelling results in its 2025 drilling campaign, marking a critical milestone for the company’s ambitions in copper-nickel-cobalt (CNC) exploration. Recent assays and step-out drilling have revealed high-grade mineralization, positioning the project as a potential cornerstone of Africa’s next major CNC operation.

Recent Drilling Highlights: High-Grade Intersections and Strategic Step-Outs

The April 2025 assay results from 17 holes in the infill drilling program underscore the project’s resource potential. Key intersections include:
- Drill Hole SNUG-24-174: 27.55 meters grading 4.97% CuEq (including 14.05 meters at 6.42% CuEq).
- Drill Hole SNUG-24-146: 13.15 meters at 4.59% CuEq, with a sub-interval of 5.54% CuEq over 10.55 meters.
- Multiple other holes returned grades between 1.05% to 5.98% CuEq, with notable nickel (Ni) and cobalt (Co) content.

The ~34,300-meter drilling program targeted resource reclassification and expansion, leveraging borehole electromagnetic (BHEM) surveys to identify conductive zones. These assays, while not yet included in the current Mineral Resource Estimate (MRE), are critical for future resource upgrades.

The Strategic Step-Out: Expanding the Resource Envelope

In May 2025, Premium Drills announced a 183-meter down-plunge step-out in drill hole SNUG-25-184, intersecting 13.50 meters of mineralization, including two high-grade intervals. Though assays remain pending, BHEM data suggests the South Limb and N2 zones are open for further expansion. The company is now advancing SNUG-25-186, targeting a 130-meter step-out to test deeper conductive plates.

Technical and Operational Strengths

1. Copper Equivalent (CuEq) Calculation: Grades are calculated using US$10.50/lb Ni and US$4.75/lb Cu, with recoveries of 72% Ni and 92.4% Cu—parameters consistent with long-term commodity pricing assumptions.
2. Quality Control: Samples were analyzed by ALS Chemex, with rigorous QA/QC protocols, including certified standards and blanks.
3. Geophysical Guidance: BHEM surveys using the Crone PEM system have identified conductive zones correlating with massive sulfides, reducing exploration risk.

Strategic Implications and Risks

• Resource Upside: The current MRE (as of August 2024) stands at 27.7 million tonnes, but the 2025 drilling aims to reclassify inferred resources and potentially expand the envelope to 1.5 million ounces of gold equivalent. A revised MRE is expected in Q2 2025, which could catalyze project economics.
• Partnership Leverage: A collaboration with a major mining firm provides logistical support, reducing costs and accelerating timelines.
• Risks:
• Assay Delays: Results for SNUG-25-184/186 are pending, and variability in grades could impact resource estimates.
• Market Volatility: Copper and nickel prices remain cyclical, though long-term demand for EV batteries and renewables supports CNC commodities.

Conclusion: A Project with High Upside and Execution Risk

Premium Drills’ Selebi North project has demonstrated robust grades and structural continuity, with step-outs extending mineralization beyond current boundaries. The pending assays and revised MRE are pivotal: if successful, they could position Selebi North as one of Africa’s largest CNC deposits, with potential for a prefeasibility study by mid-2025.

Investors should monitor PREM’s stock performance and assay releases closely. While the project’s technical execution and commodity prices remain key variables, the high-grade intersections and strategic drilling suggest a compelling risk-reward profile for those willing to bet on Premium Drills’ ability to unlock value in this under-explored region.

Final Takeaway: Selebi North’s potential to redefine Premium Drills’ valuation hinges on the integration of 2025 drilling results into an updated resource estimate. With BHEM-guided exploration and a supportive commodity backdrop, the project has all the ingredients for a transformative discovery—if assays confirm the geological promise.