Norsemont Mining Deepens Losses as Chilean Drilling Campaign Gathers Pace

Norsemont Mining posts CAD 8.08M loss for fiscal 2025, but shares jump 12% on investor confidence in its dual-track strategy at the Choquelimpie project in Chile.

Norsemont Mining is betting big on its Choquelimpie project in the Chilean Andes, and the costs are mounting. The junior miner reported a net loss of CAD 8.08 million for fiscal 2025, a sharp widening from the CAD 2.05 million loss recorded a year earlier. The loss per share climbed to CAD 0.11 as management poured capital into exploration and development.

Yet the market is looking past the red ink. Shares in the company jumped nearly 12% to €0.75 on Wednesday, pushing year-to-date gains past 20%. The rally reflects growing investor confidence in the company's dual-track strategy at Choquelimpie: restarting production from existing infrastructure while simultaneously drilling for deeper deposits.

Infrastructure in Place for Quick Returns

A key advantage for Norsemont is the existing infrastructure at the site. A fully operational mill with a daily capacity of 3,000 tonnes is already in place. The company is evaluating whether processing old tailings could generate near-term revenue, providing a financial buffer while exploration continues.

This approach contrasts with many junior miners that must build processing facilities from scratch. The presence of the mill could significantly lower the capital required to bring Choquelimpie into production, reducing the risk profile for early-stage investors.

Drilling Programme Expands Significantly

Exploration activity is accelerating. Phase three of the drilling programme kicked off in mid-April, following earlier campaigns that confirmed high-grade mineralisation across the property. Now the company is planning an even more ambitious phase four, with 13,000 metres of drilling slated to begin in the second quarter of 2026.

The expanded programme targets deeper geological layers. Initial assays have revealed not only gold and silver but also copper, lead and zinc at depth. Geologists believe a substantial porphyry system may lie beneath the known deposit, which could transform the scale of the project.

Key Catalysts on the Horizon

The coming months will test whether Norsemont's aggressive spending is justified. The company expects to release an updated resource estimate in the fourth quarter of 2026, accompanied by a preliminary economic assessment of oxide production.

December 2026 marks another critical milestone: the submission of an environmental impact statement. This regulatory filing is a prerequisite for long-term mining permits in northern Chile, and its acceptance would clear a major hurdle for the project's development.

Speculative Profile Remains High

Despite the recent share price strength, Norsemont remains a high-risk play. The stock carries annual volatility of over 80%, underscoring its sensitivity to drilling results and operational news flow. The current market capitalisation hinges on successful exploration outcomes, particularly from the phase three and phase four programmes.

Investors are now eyeing the stock's year-to-date high of €1.12 as a potential target. Whether the shares can reclaim that level will depend on the quality of assay results and the company's ability to demonstrate that Choquelimpie can deliver both near-term cash flow and long-term resource growth.