Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) reported continued success from its ongoing diamond drilling program at the El Cura deposit, part of its wholly owned Iberian Belt West (IBW) project in Spain. The latest results extended mineralization approximately 90 meters westward and confirmed strong grades across multiple metals.
Drill hole EC080 intersected 4.1 meters grading 3.9% copper, 3.6% lead, 8.5% zinc, 4.08 grams per ton (g/t) gold, and 96.4 g/t silver. The intercept included a 1.4-meter section grading 5.7% copper, 4.1% lead, 9.7% zinc, 3.89 g/t gold, and 102.9 g/t silver. Additional results included hole EC069, which returned 3.8 meters grading 1.8% copper, 2.3% lead, 6.2% zinc, 3.6 g/t gold, and 70.2 g/t silver.
The company stated that all drill holes reported in the update intersected mineralization except EC073, which encountered faulting in the target zone. Drilling continues along a 650-meter strike length using three platforms, focusing on expanding mineralized zones to the west and at depth.
President Joaquin Merino said in the October 17 news release that the recent results "demonstrate the existence of zones of significant enrichment and the persistence of the deposit to the west and at depth." He added that holes west of the inferred resource boundary are expected to "contribute substantially to the growing resource at El Cura and the IBW Project overall."
Emerita approved an additional 12,000 meters of drilling to expand the El Cura deposit further. The company described El Cura as an undeveloped volcanogenic massive sulfide (VMS) deposit, characterized by consistent high-grade copper and gold mineralization.
Copper Tightens, Gold Surges: Markets Redefine Value
According to Reuters on October 6, mining executives broadly agreed that the world is heading toward a copper deficit, with supply struggling to match demand driven by the energy transition. The report noted that while mergers such as the Anglo-Teck deal may temporarily address production gaps, new projects remain costly and slow to develop. With copper prices around US$10,500 per ton, up roughly 40% over three years, analysts viewed the metal's tight supply and essential role in electrification as key themes shaping the sector's long-term outlook.
Gold's record-breaking rally in October reflected a convergence of global uncertainty, monetary realignment, and renewed faith in tangible assets. On October 6, spot gold surpassed US$4,000 per ounce for the first time in history. Analysts described the breakout as both structural and symbolic, as investors sought stability amid declining confidence in fiat currencies and sovereign debt. Much of the advance occurred during Asian trading hours, viewed as a sign of growing financial influence in the East and a repricing of global risk.
Varun Arora of Clarus Securities offered a "Speculative Buy" rating with a target of CA$3.15.
Central bank activity played a major role in the move. Official sector purchases remained strong as nations prioritized security of reserves over yield, with many moving holdings back within domestic borders. By 2023, approximately 68% of gold-buying central banks held their reserves at home, up from 50% in 2020 — a trend expected to persist through the decade.
A report by Bruno Venditti on October 8 noted a major shift in global reserve management. For the first time since 1996, foreign central banks collectively held more gold than U.S. Treasuries. Nearly one-fifth of all gold ever mined is now owned by central banks, with sustained buying in 2022, 2023, and 2024 helping push the metal above the US$4,000 threshold. The milestone marked a gradual rebalancing away from dollar-based assets toward physical stores of value.
In an October 10 article, Anthony Keane reported that gold had gained 123% over the previous two years, outperforming most other asset classes. Analysts attributed the rise to lower interest rates, geopolitical tensions, and renewed demand for finite resources. Capital.com's Kyle Rodda said, "The supply of money grows at a much faster pace than we can pull gold out of the ground," while noting that conflict and trade frictions also contributed. Tony Catt of Catapult Wealth added that "gold is an asset class where there is a lot of central bank buying," a trend that tends to strengthen during uncertain times.
A research note from UBS described broad optimism in the market, stating it was "hard to find anyone who isn't a gold bull." However, data from Dimensional Fund Advisors provided historical context, showing that gold's annual returns have been positive in just over half of all calendar years since 1980.
Analyst Highlights Potential Valuation Upside Linked to Aznalcóllar Ruling
In a quote from October 9, Varun Arora of Clarus Securities discussed the potential financial impact of a favorable outcome in the Aznalcóllar dispute for Emerita Resources Corp.
Arora wrote, "We think a favorable resolution of the Aznalcóllar dispute for Emerita Resources Corp. has potential to conceptually add more than CA$700–$1,200 million (CA$700–1,200M) to the current market cap of about CA$470M, implying a conceptual share price in the range of CA$4–5.75 per share . . . we think the verdict could be announced any day now."
Arora's assessment underscored the significance of the legal proceedings surrounding Aznalcóllar, a key asset within Emerita's Spanish project portfolio. The analysis suggested that a positive ruling could materially strengthen the company's valuation relative to its current market capitalization. Arora offered a "Speculative Buy" rating with a target of CA$3.15.
Advancing the Iberian Belt West Project
The El Cura deposit forms one of three high-grade polymetallic systems within the Iberian Belt West Project, alongside La Romanera and La Infanta. According to the company's 2025 investor presentation, IBW hosts indicated resources of 18.96 million tonnes grading 8.44% zinc equivalent and inferred resources of 6.8 million tonnes grading 8.72% zinc equivalent.
Streetwise Ownership Overview*
Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE)
Emerita's current focus includes extending the El Cura mineralization westward while advancing metallurgical testing and engineering studies. Testwork across the IBW deposits has achieved recoveries exceeding 90% for zinc and copper and more than 80% for gold and silver, with the company highlighting the use of cyanide-free post-flotation processing to minimize environmental impact.
Permitting for the IBW project has been fast-tracked under the Declaration of Strategic Importance granted by the Government of Andalusia. Upcoming milestones include completion of a prefeasibility study and the release of an updated mineral resource estimate in 2026.
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 289.03 million shares outstanding with 248.71 million free float traded shares, while the company has a market cap of CA$424.88 million and trades in a 52-week range of CA$0.55 and CA$2.00.
| Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Emerita Resources Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
