Governments all over the world are pushing for a greener future. The U.S. promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China says it’ll stop releasing CO2 in the next 40 years. But for that to happen, the world must have more copper, which presents us with a massive problem. Right now, copper demand is outstripping supply. Making it worse, according to CopperCorp Resources Inc. (TSXV: CPER) (OTCQB: CPCPF), “Over 200 copper mines will likely run out before 2035.” In addition, CopperCorp added that over the next decade, we may need 900% more of the copper used for EVs and battery metal products to meet humanity’s greatest challenges.” In short, leaders must secure more copper supply. Not only does that create potential opportunity for CopperCorp Resources Inc., but also for Freeport-McMoRan (NYSE: FCX), Southern Copper Corporation (NYSE: SCCO), Teck Resources Ltd. (NYSE: TECK), and Turquoise Hill Resources (NYSE: TRQ).
Look at CopperCorp Resources Inc. (TSXV: CPER) (OTCQB: CPCPF), For Example
CopperCorp Resources Inc. just provided an update on its two large district sized exploration tenements in Tasmania, the Arthur Metamorphic Complex Project and the Skyline Project, including a review of current and planned fieldwork.
Highlights
- The drilling program at Alpine will be expanded from 4,200m to 10,000m to enable continued testing of the Alpine Stellar zone and first drilling into the new high-priority step-out targets
- First assay results from CopperCorp’s drilling at the Stellar zone are being received and are currently under review prior to release
- CopperCorp continues a strategy to increase the mineralization footprint at Alpine towards developing a mineral resource, while also developing and advancing its pipeline of high quality greenfields exploration targets towards drilling
- First pass soil geochemistry survey identifies multi-element soil anomalism over the Alpine West geophysical target, directly along strike from known Iron Oxide Copper Gold (IOCG) style mineralization at the Stellar zone
- New 3D geophysical modelling of gravity and magnetic data confirms potential for a large scale IOCG system at Alpine with new drill targets identified
- Several high-priority regional exploration targets identified within both the AMC and Skyline Project areas, with reconnaissance field work commenced and planning and permitting for ground and drilling exploration programs underway
- The Company is building its team to support this activity and anticipates hiring at least two more geoscientists in the next several weeks.
Stephen Swatton, President and CEO of CopperCorp, stated, “As we await initial drilling results from the Alpine-Stellar target, I am very encouraged by the work we have completed so far. Approximately 80% of drill holes have now been submitted to the laboratory. Our initial objectives at Alpine were to build off near surface copper mineralization encountered by historical drilling and begin stepping out along strike. Additional surface work and interpretation of geochemistry and regional geophysics has generated multiple new drill targets in the area, leading to our decision to increase our drill program to 10,000 metres. Coupled with acquiring a second drill rig we are also aiming to start drilling in a manner designed to support an initial resource estimate at Alpine-Stellar in 2023.”
Alpine Prospect Drilling Update
CopperCorp’s focus of exploration to date has been at the Alpine Prospect Stellar Zone where drilling has concentrated on confirmation and infill drilling around historical holes drilled by previous explorers (CRAE in 1985, and Stellar Resources in 2006-2007)1. The historical, wide-spaced drilling intersected significant IOCG-style copper mineralization, with significant intercepts (previously reported1) including:
- AP004: 28.1m @ 1.03 % Cu from 58.7m and 41.25m @ 0.3% Cu from 111.55m
- AP007: 80.0m @ 0.53% Cu from 62.7m
- AP008A: 41.0m @ 0.48% Cu from 29.8m
- AP017: 21.65m @ 0.55% Cu from 225.0m
CopperCorp’s Phase 1 drilling at the Alpine Stellar Zone has so far totaled 11 diamond drill core holes for 3,925m. All drill holes have been geologically logged and samples from 10 holes have been submitted to the laboratory for assay. Geological logging indicates that most of CopperCorp’s drill holes to date have intersected visual mineralization consistent with observations from historical drill core at Stellar Zone. The currently defined mineralization footprint at the Stellar Zone covers a strike length of at least 600m with mineralization intercepted from near surface to depths of at least 300m below surface (open). Assay turn-around times in general at most Australian laboratories are currently in the order of 3-4 months.
To further test the Alpine Stellar Zone at depth as well as additional prospective targets at Alpine (see below), the Phase 1 drilling program will be increased to 10,000m. Planning and permitting for the additional drilling is underway and the Company is seeking a second drill rig to support an expanded program.
Alpine Geophysical Modelling
Concurrent with its drilling program, CopperCorp recently completed a detailed ground gravity survey over the Alpine prospect area and engaged Australian-based independent geophysical consultants, Resource Potentials Pty Ltd, to carry out gravity and magnetic data processing and modelling.
Results from 3D inversion modelling indicate that the drilled IOCG style mineralization at the Alpine Stellar Zone is defined by coincident gravity and magnetic anomalies (see Figure 3). The model further indicates additional areas of high IOCG prospectivity indicated by coincident, partially coincident, or offset gravity and magnetic anomalies – the Alpine West and Alpine North targets (Figures 1 and 2). The Alpine West target is untested by drilling while at the Alpine North target two previous shallow drill holes that failed to intersect significant mineralization are interpreted as possible near misses (best intercept was 1m @ 0.29% Cu in hole AP091) and further drilling is required.
Partially coincident to offset magnetic-gravity anomalies are known to be characteristic features of hematite-dominant IOCG deposits in Australia, particularly in deposits where late stage, oxidized, hematite-associated copper and gold mineralization overprinted and replaced earlier stage magnetite-bearing host rocks such as at the Olympic Dam deposit. Exploration targeting of such anomalies has directly led to the discovery of deposits such as Prominent Hill and Carrapateena in South Australia. A similar geophysical response is interpreted for parts of the Alpine system, where late-stage copper mineralization is associated with siderite (iron carbonate) that overprints and replaces earlier magnetite.
Alpine Soil Survey Results
The Company recently completed a trial b/c-horizon soil sampling survey at Alpine comprising 169 soil samples collected at 50m intervals along 200m spaced north-south orientated grid lines (Figure 4). The first pass sampling coverage included 5 lines over the Alpine West target area and 3 lines over the Stellar zone – Alpine North target area. Unfortunately, effective sampling over known mineralization in the Stellar zone was generally precluded by thick alluvial gravel cover over this area.
Examination of the soil assay data indicates multi-point copper and gold anomalies (with up to 717ppm Cu and 29ppb Au), and broad coincident Ce-La (Cerium & Lanthanum) anomalous zones (with up to 136ppm Ce and 67ppm La) over the Alpine West magnetic-gravity target area. The occurrence of the coincident Cu-Au-Ce-La anomalous soil geochemistry over Alpine West is significant as the light rare earth elements (REE) Ce and La are commonly enriched in IOCG deposits and are often used as exploration pathfinder elements. The Alpine North target area also shows indications of anomalous soil geochemistry; however, further sampling is required to provide improved definition. The Company will carry out follow-up field checking and sampling at Alpine West and further infill sampling is planned across the wider Alpine grid – including at Alpine North.
Regional Exploration Update
CopperCorp is in the final stages of a regional targeting review of the AMC and Skyline tenement packages in northwest Tasmania and has commenced initial reconnaissance field exploration activity over high-priority target areas. Planning and permitting for surface (gridding, mapping, geochemistry and geophysics) and drilling exploration programs is underway. Further details on the regional exploration targets and planned programs will be provided in upcoming news releases.
Going Forward
As discussed above, CopperCorp plans to expand the diamond drilling program at the Alpine Prospect from 4,200m to 10,000m. The expanded drill program will be focused on vectoring towards potential zones of thicker and higher-grade mineralization in the Alpine Stellar Zone, testing the Alpine Stellar Zone at depth, and step-out drilling to test high-priority targets at Alpine West and Alpine North. Planning and permitting for the Alpine West and Alpine North exploration drill programs is underway. The Company currently has one drill at Alpine and plans to source another in order to expedite the planned drilling. Further gridding and soil sampling programs are also planned at Alpine.
In addition to the expanded exploration program at Alpine, CopperCorp plans to undertake exploration programs over high-priority regional exploration targets in both the AMC and Skyline Project areas. The work programs will include mapping, gridding, soil sampling, and magnetic and gravity geophysical surveys which have been highly effective at delineating mineralization targets at Alpine. These planned exploration activities will be designed to advance high-priority targets towards commencing drill testing in Q4 2022, subject to permitting and drill rig availability.
About AMC Project
The AMC Project covers a total of 1,066 km2 along approximately 100 km of strike length and establishes CopperCorp as the dominant owner of prospective ground in the district. The rocks are Neoproterozoic-Cambrian age and comprise a regional-scale metamorphic structural deformation zone that is host to widespread magnetite-sulphide-silicate alteration and mineralization indicative of a large Iron Oxide Copper Gold (IOCG)-style system and includes the Savage River 498 Mt @ 46% DTR magnetite mine (owned by Grange Resources Limited)2 and CopperCorp’s Alpine copper prospect.
The Alpine prospect is located 30 km northwest of the local mining hub of Zeehan and within 5 km of two large-scale operating wind and hydro-electric renewable energy plants.
About Skyline Project
The Skyline Project comprises 2 exploration licenses covering a total of 334 km2 of prospective ground along the eastern margin of the highly mineralized Cambrian calc-alkaline volcanic arc of the Mount Read Volcanics belt. Two large-scale operating mines lay within 5 km of the project – the Mt Lyell Cu-Au deposit (total resource 3 Mt Cu and 3 Moz Au @ 1.0% Cu and 0.3g/t Au)3, and the Henty Au deposit (1.64 Moz Au @ 12.5 g/t Au)3. The area is considered prospective for magmatic-hydrothermal IOCG style deposits. The Company is currently preparing to commence field exploration programs over high-priority targets at Skyline. A NI43-101 Technical Report is being prepared for filing and further information on this project will be provided in upcoming news releases.
The Skyline prospect is located 10 km northeast of the local mining town of Queenstown and with 10km of operating hydro-electric renewable energy projects.
About the Western Tasmanian Mining Industry
Western Tasmania is an established mining region located within a low-risk, stable jurisdiction with a long, 150-year exploration and mining history. The region is rich in diverse mineral resources with large-scale multi-generational mines, established infrastructure, local skilled labor, and rail-to-port networks. The region is supplied by 100% renewable energy.
Other related developments from around the markets include:
Freeport-McMoRan reported first-quarter 2022 net income attributable to common stock of $1.5 billion, $1.04 per share, and adjusted net income attributable to common stock of $1.6 billion, $1.07 per share, after excluding net charges primarily associated with the settlement of an administrative fine and an adjustment to prior-period export duties at PT-FI totaling $38 million, $0.03 per share. Richard C. Adkerson, Chairman and Chief Executive Officer, said, "The strong operational and financial results we are reporting today reflect our long-term, ongoing focus on solid execution of our plans and the achievements of our committed global team. As a premier global leader in producing copper responsibly, with large-scale, long-lived reserves and an attractive portfolio of organic growth opportunities, we are strongly positioned to benefit from increasing global copper demand for infrastructure development and accelerating clean energy investments. We have created a durable foundation for long-term success supported by a portfolio of world class copper assets, an experienced and highly motivated global team and a strong financial base. Freeport is focused on delivering value to all our stakeholders and approaching the future with confidence and excitement."
Southern Copper Corporation recently posted fourth quarter earnings. 2021 marked another important year in Southern Copper’s history. This year, net sales, net income, adjusted EBITDA and cash from operations hit record highs. 4Q21 net sales were $2,823.7 million, which represented a 20.1% increase with regard to 4Q20’s figure. Growth was primarily fueled by higher metal prices for our main products, which was partially offset by a decrease in the sales volume at our Peruvian operations due to bi-annual maintenance at the Ilo smelter. Metal prices increased for copper (+35.4%, LME); molybdenum (+107.5%); and zinc (+28.6%). 2021 net sales hit a record high of $10,934.1 million, which represented an increase of 36.9% over the figure reported in 2020. This growth was mainly driven by higher market metal prices for all our main products. Metal prices increased for copper (+51.1%, LME); molybdenum (+81.0%); zinc (+32.0%); and silver (+22.1%). The cooper sales volume decreased 11% for the year due to a drop in sales of copper supplied from third parties and shipment delays; the latter was attributable to the COVID 19 pandemic. Net income in 4Q21 was $833.0 million, which represented a 41.1% increase with regard to the $590.2 million registered in 4Q20. The net income margin in 4Q21 was 29.5%, versus 25.1% in 4Q20.
Teck Resources Ltd. announced that its Board of Directors has declared an eligible dividend of $0.125 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on June 30, 2022 to shareholders of record at the close of business on June 15, 2022.
Turquoise Hill Resources announced first quarter 2022 production and provided an Oyu Tolgoi LLC mine and corporate update. As planned, Q1 2022 copper and gold production from the open pit and underground was lower vs Q1 2021 due to lower copper and gold head grade. Copper production of 30.3 thousand tonnes of copper in concentrate, a decrease of 33% vs Q1 2021 and a decrease of 22% vs Q4 2021. Gold production of 59 thousand ounces of gold in concentrate, a decrease of 60% vs Q1 2021 and a decrease of 25% vs Q4 2021. Copper production guidance for 2022 remains within the range of 110,000 to 150,000 tonnes. Gold production guidance has been revised from a range of 115,000 – 165,000 ounces to 135,000 – 165,000 ounces and is trending toward the higher end of the range.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for CopperCorp Resources Inc. by CopperCorp Resources Inc. We own ZERO shares of CopperCorp Resources Inc. Please click here for full disclaimer.
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