Canadian explorer Kobrea Exploration (CSE:KBX) is looking to open up the Mendoza province in Argentina for exploration, after becoming the “first international company” to receive a permit to drill in the vast Malargüe Western Mining District.
Speaking to Mining.com.au, CEO James Hedalen explains that district has been closed to exploration for decades but now it is open for business.
“Kobrea has worked hard to gain the trust and support of the people of Mendoza, and we have received a warm welcome,” Hedalen tells this news service, adding “people are excited to see what we can bring to the province.”
The Malargüe Western Mining District is a territorial planning tool developed by the state-owned company Impulsa Mendoza and covers roughly 20,000km² in the mountainous region of Malargüe, in southern Mendoza.
Argentine mining-specialised publication Panorama Minero reports authorities have a goal of eliminating all legal restrictions in the district to promote development and the approval of 27 projects in the Legislature while advancing another 71 cases to boost copper exploration.
The administration of Governor Alfredo Cornejo reportedly expects all projects under this initiative to be approved by mid-2026.
To capitalise on this development, last week Kobrea started construction of an engineered and permitted drill access road at El Perdido Project, to be followed by installation of an exploration camp and completion of diamond drilling, as reported by Mining.com.au.
The company is pinpointing El Perdido as the next exploration target, focusing on what Hedalen describes as a “very attractive” porphyry system, where it will be testing the centre where the highest density of quartz stockwork veining associated with a potassic alteration assemblage occurs.
“We have a dozen or so porphyry targets, two of which are mapped and defined,” the CEO tells this news service.
“We control a highly prospective land package in one of the world’s best porphyry copper belts that have not been explored due to no permits ever being issued. With the permit for El Perdido in hand we can drill known porphyries in this belt for the first time ever.”
Porphyry copper deposits play an important role in the global economy and such deposits provide more than 60% of the world’s copper. While copper is generally the dominant metal, these deposits can contain multiple accessory metals, such as molybdenum, gold, and silver.
Porphyries are known for having low grades but very high tonnage, meaning their sheer size and scale can make them commercially viable.
Supply squeeze unless discoveries made
In order to start drilling programs in Argentina, Kobrea raised C$8.5 million ($9.3 million) in October 2025 from a private placement. The brokered offering was led by Kernaghan & Partners, as lead agent and sole bookrunner on behalf of itself and a syndicate of agents including Beacon Securities and Red Cloud Securities.
Hedalen says the raise signifies the company’s keenness to jump on copper’s “strong position” in the market and capitalise on being a first-mover in the Malargüe Western Mining District.
“We are bullish on copper,” the CEO tells Mining.com.au, adding “there have been little to no major copper discoveries in the past decade. Supply will be squeezed unless discoveries are made.”
Spanning 6,878 hectares, the El Perdido Project is prospective for its yet-to-be drilled porphyry copper-gold-molybdenum system at surface. The target is characterised as a 2km by 2km hydrothermal alteration footprint.
The company’s move in Argentina comes as the copper price is starting to rebound. Trading Economics reports the copper price to be at US$5.02 per pound as of 12 November, reflecting a 26.28% increase for this year-to-date.
Global copper consumption rose by 1.8% year-on-year in H1 2025, reaching a total of 13.7 million tonnes. China’s refined copper demand rose by 7.7% year-on-year to 8.2Mt in H1 2025, accounting for 59% of global usage.
Over the outlook period, copper demand is expected to grow on average by 2.6% a year, from 28Mt in 2025 to over 29Mt in 2027.
According to the Department of Industry, Science and Resources (DISR) September 2025 Resources and Energy Quarterly, most of copper’s medium-term demand growth will be driven by rising supply of (and demand for) electricity via electrical infrastructure and low emission technology.
DISR reports copper will be vital for the power infrastructure that data centres (and AI) will rely on. Demand is poised to grow as new AI data centres are developed – the average data centre supporting AI requires 27-33 tonnes of copper per megawatt of power.
The International Energy Agency (IEA) forecasts global electricity generation to supply these data centres will grow from 460 TWh in 2024 to more than 1,000 TWh by 2030 – with 426 TWh of this in the US alone.
Kobrea Exploration is a mineral explorer and developer focused on acquiring and discovering base metal projects. The company has the option to achieve full ownership of its Argentinian assets, located 65km west of the City of Malargüe.
Write to Maddison Elliott at Mining.com.au
Images: Kobrea Exploration
