Kobrea Exploration (CSE: KBX) will drill the El Destino copper-gold-molybdenum porphyry prospect this season after BHP approved a US$4 million exploration budget for the company’s Western Malargüe copper projects in Argentina.
The 2026/2027 work program and budget was signed off by the management committee formed under the alliance between the two companies, and will be funded by BHP Metals Exploration. The work falls within the agreement’s project generation phase, during which Kobrea remains operator.
Diamond drilling at El Destino anchors the program. The 9,487-hectare project hosts a porphyry system defined at surface by historical operators, and will be the second project in the district to reach the drilling stage after El Perdido, where Kobrea completed 6 holes totalling 2,358 metres earlier this year.
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The company did not disclose planned metres or hole counts.
Induced polarization surveys are slated for both El Destino and the KBX-17 prospect. Crews will also carry out rock chip sampling and geological mapping at known porphyry targets, along with reconnaissance work on newly identified prospects. A property wide stream sediment program, including heavy mineral concentrate work and geochronology sampling, will run alongside hyperspectral analysis across the full 733 square kilometre land package.
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“The approval of this US$4 million exploration program allows us to move into a comprehensive summer field season across the Western Malargüe Copper Projects,” said CEO James Hedalen. He added that the goal is to systematically advance the land package toward discovery with BHP funding the work.
The budget follows the alliance struck in August, under which BHP paid Kobrea US$3 million upfront and committed at least US$5 million to exploration over an initial 2-year period. The first season’s budget alone accounts for 80% of that minimum.
BHP can designate up to 4 projects for separate earn-ins, earning 75% of each by spending at least US$40 million over 8 years. Kobrea would retain 25% of each through a joint venture.
Kobrea itself holds the right to earn 100% of the 7 projects under a 2024 option agreement.
Kobrea Exploration last traded at $0.30 on the CSE.
