The junior, which originally recapitalised as a Northern Territory gold explorer in late 2019, usually records around 1.4 million shares traded per day, but that number skyrocketed sixtyfold, with the stock up 40%, after it announced a binding terms sheet over the high-grade Delfin copper project.
The greenfields play in the world-class Antofagasta region of Chile, covers some 84sq.km, but the bulk of exploration has focused on a 300m by 100m area.
It has returned some spectacular historical intersections, such as 86m at 4.83% copper from 121m, including 27m at 7.1%, and 89m at 3.2% Cu from 122m.
With a little work, Mandrake believes it can rapidly develop a JORC resource, and use modern exploration techniques to map new prospective areas across the tenement.
The up-front acquisition terms are minimal, starting with the issue of 80 million shares that, using its previous closing price of A4.6c, would be worth $3.7 million. Half the shares will be escrowed for six months.
A $1 million loan , to the vendor will be paid from Mandrake's available cash, can follow if Mandrake sticks with the project.
The vendor, Atacamoz, was registered in Kalgoorlie in 2019, and has an option over the project from the Chilean owners, Delfin SA.
The bulk of consideration due to Delfin comes via a US$300,000 payment in May 2023 and $3.5 million in May 2024. Production royalties are also included, with advances $200,000 per month due if production hasn't commenced by May 2030.
The Delfin option requires 10,000m of drilling over 24 months, and definition of 150,000 tons of copper averaging 0.2%.
Mandrake will commence exploration in the near future, with rock chip assays pending and drilling scheduled.
The company will also re-interpret the 15,000m drilling to better understand the shallow geology.
Past work is described as sporadic and inconsistent, with a misunderstanding of the controls on mineralisation, and the historical drill orientation apparently not favourable to identifying mineralisation.
Further, just 20% of holes exceeded 140m depth, and there is potential for deeper copper porphyry mineralisation at depth, and with work and a lot of luck, it may find something more akin to Escondida or Chuquicamata - the largest copper mines in the world.
In the immediate future it will focus on the known shallow mineralisation at Delfin 1, which sits along a 160m wide, 2km long structural corridor, and the emerging Delfin 2 and Cami 9 greenfields prospects that appear to show similar structural settings and have rock chips at surface grading up to 3.26% and 10.2% respectively.
Mandrake has 12 weeks to complete due diligence.
It can exit without paying any cash during that time.
Delfin represents a new exploration front for Mandrake, which has primarily focused on drilling Julimar-style nickel-copper targets in Western Australia's Jimperding Metamorphic Belt and gold targets at Pine Creek in the NT.
Assays from the third of three bedrock electromagnetic anomalies believed to indicate massive sulphides are anticipated soon.
The earlier two diamond holes returned low-grade anomalism and the focus has shifted to the virgin ultramafic Tolarno targets.
Mandrake shares, which peaked at 24.5c last June, and has recently been as low as 4.3c
This afternoon Mandrake shares were up almost 50% at 6.9c, valuing it at $33 million.
