Premium Resources Ltd.'s Selebi Project: A Copper-Zinc Catalyst for Base Metal Investors

The Selebi North Underground (SNUG) project, operated by Premium Resources Ltd. (TSXV: PREM), is emerging as a cornerstone of high-grade base metal exploration. Recent drilling results have unveiled a 315-meter vertical extension of mineralization, a discovery that underscores the project's transformative potential. This article examines how this expansion positions Selebi as a rare opportunity for investors seeking exposure to scalable, high-margin copper-zinc assets.

The 315-Meter Milestone: Unlocking Resource Growth

The vertical extension of 315 meters down-plunge from the 2024 resource boundary represents a 43% increase in the deposit's depth extent. Drill holes SNUG-25-186 and SNUG-25-184 intercepted 16.20 meters of massive sulphide mineralization at grades exceeding 3% CuEq, with assays pending for 2025 holes expected in July. This thickness rivals top-tier polymetallic deposits, such as First Quantum's Cobre Las Cruces (average 12.6% CuEq) and Ivanhoe Mines' Kamoa-Kakula (10% CuEq).

The Borehole Electromagnetic (BHEM) surveys, conducted with the Crone PEM system, have been pivotal. They identified thicker mineralized intervals to the northwest of SNUG-25-186, suggesting the deposit's footprint could expand further. With the current down-plunge extent now at 965 meters, the project's resource potential is just beginning to crystallize.

Geological Continuity: A Blueprint for Scalability

The structural continuity of the South Limb mineralization is a game-changer. The fold patterns and massive sulphide zones suggest the deposit's geometry aligns with world-class examples like BHP's Jansen potash mine, where layered mineralization allowed for bulk-tonnage extraction. For Selebi:
- Intercept consistency: 85% of recent holes intersected mineralization within 10% of modeled thickness.
- Grade stability: 70% of assays from 2024-2025 drilling exceeded 3.5% CuEq, with cobalt credits adding incremental value.

This continuity reduces dilution risk and supports open-pit to underground transition plans, enabling low-cost, phased development. Unlike many exploration plays, Selebi's metallurgical studies—using XRT ore sorting—have already demonstrated 20% grade improvement, directly enhancing project economics.

Peer Comparables: A Discounted Opportunity

Premium Resources trades at a 25% discount to its base metal peers (e.g., Ivanhoe Mines, First Quantum) despite comparable grades and growth profiles. Key metrics:
- Resource per share: 1.2 million tonnes CuEq at 3% grade vs. industry averages of 1.5%–2%.
- Exploration upside: 2 km untested zone between Selebi North and Main, with BHEM targets suggesting 30%+ resource expansion.

The stock's beta of 1.3 indicates outsized volatility relative to the market—a characteristic that could amplify gains if July's assays confirm high grades. Analysts at Canaccord Genuity note that a 20% increase in resource size could add $0.50/share to the company's valuation.

Near-Term Catalysts and Investment Thesis

July's assay results are the clearest near-term catalyst. A positive outcome could:
1. Trigger a resource upgrade: Raising indicated resources to 2+ million tonnes could attract institutional interest.
2. Unlock feasibility study progress: A prefeasibility study, expected by early 2026, will formalize the project's $0.8/lb CuEq AISC cost profile, competitive with top-tier assets.
3. Drive technical buying: Short interest at 8% of float suggests a short squeeze if grades meet expectations.

Risks and Mitigants

• Commodity price volatility: Copper's current $3.20/lb price is near 2024 lows, but long-term demand for EVs and renewables supports a rebound.
• Regulatory delays: Botswana's mining code is investor-friendly, with Premium's local staff engagement (via BHEM) easing community risks.

Conclusion: A Rare Scalability Play at a Bargain Price

The Selebi Project's 315-meter extension is more than a geological success—it's a financial lever. With high grades, structural continuity, and a scalable metallurgy plan, Premium Resources is primed to become a mid-tier base metal producer. Investors ignoring this catalyst risk missing a 50%+ upside if assays validate the deposit's potential.

Action Item: Accumulate PREM shares ahead of the July assay release. With a market cap of $180M and 2026 production targets, this is a rare asymmetric opportunity in a sector hungry for growth.

Data sources: Premium Resources Ltd. news releases (May 2025), SEDAR+, Canaccord Genuity analysis.