Meru Residents Eye Riches After Copper, Gold Discovery

Australian mining company Avira Resources Ltd has reported encouraging findings of copper and gold deposits in Meru County, Kenya.

Based on this discovery, the company draws comparisons to the historically rich Okiep copper mine in South Africa. Local farmers first identified signs of copper mineralization through the presence of malachite-rich rock samples. Analysis of these samples at a South African laboratory confirmed the presence of copper and excitingly, traces of gold as well. While further exploration is necessary to definitively determine the extent of the deposits, the initial indications are promising.

“Copper mineralisation was discovered by local farmers after identifying malachite-rich float samples. The mineral occurrence remains unexplored and open in all directions. The sample was submitted to the Scientific Services Laboratory in South Africa for analysis,” Avira's statement reads in part.

The geological environment in Meru shares similarities with the Namakwaland Metamorphic Complex in South Africa which has yielded over two million tonnes of copper over the past century and a half. This resemblance adds weight to the potential of the Meru discoveries. Avira Resources Ltd recently acquired a majority stake in Goitom Mining Ltd, a Kenyan company holding a prospecting license for a sizeable area in Meru County. Through this agreement, Avira gains the potential to earn up to an 80% interest in the Meru Copper-Gold Project.

However, it is crucial to emphasize that the commercial viability of these deposits remains unconfirmed. Further exploration efforts are required to solidify the evidence and assess the economic feasibility of mining operations. Despite this, the initial findings represent a positive step for mineral exploration in Kenya and warrant continued investigation. A confluence of factors is driving up copper prices with global expectations pointing to limited supplies of copper while demand is forecast to rise from several key industries.

The electric vehicle sector and industries reliant on emerging technologies like artificial intelligence and automation are expected to be major consumers of copper. Additionally, China's manufacturing sector is expanding, further intensifying demand for the metal. This surge in demand pushed copper prices to a two-year high of $9,988 per tonne in early October, reflecting a 25% increase since then. Concerns over concentrate shortages were exacerbated last year by the closure of a major mine in Panama, further tightening supply. Currently, copper prices on the London Metal Exchange are hovering around $9,644 per tonne.