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![True North Copper](https://investingnews.com/media-library/true-north-copper.png?id=34708691&width=1200&height=800)
Successful completion of Retail Entitlement Offer
Highlights:
- The Retail component of the Entitlement Offer (Retail Entitlement Offer) closed on 12 June 2024, with approximately $1.3m in successful applications received.
- The total unallocated shortfall remaining from the Entitlement Offer (Unallocated Shortfall) is approximately $6.4m. The Unallocated Shortfall is fully underwritten by Canaccord Genuity (Australia) Limited (Canaccord) and Morgans Corporate Limited (Morgans) (the Underwriters).
The Retail Entitlement Offer closed at 5.00pm (AEST) on 12 June 2024. The Retail Entitlement Offer was on the same terms as the Institutional Entitlement Offer, which was an offer of new fully paid ordinary shares (Shares) in the capital of the Company on a 1 for 2 basis at an issue price of $0.056 per Share.
Summary of the Entitlement Offer Results
Results of the Retail Entitlement Offer are as follows:
Underwriting and Shortfall
The Entitlement Offer is fully underwritten by the Underwriters pursuant to an underwriting agreement dated 23 May 2024 between the Company and the Underwriters (Underwriting Agreement), as detailed in the replacement prospectus released on 24 May 2024 (Prospectus). The total Unallocated Shortfall Shares will be allocated and subscribed for pursuant to the Underwriting Agreement. This will include allocations to sub-underwriters, including Tembo Capital Holdings UK Limited (Tembo) and Nebari Natural Resources Credit Fun II LP (Nebari), who each committed to sub-underwrite the Retail Entitlement Offer for up to $2 million and $0.5 million, respectively.
The Shares to be issued under the Retail Entitlement Offer will rank equally with the existing Shares on issue in all respect. The Shares under the Retail Entitlement Offer are expected to be issued on Wednesday, 19 June 2024 and commence normal trading on Thursday, 20 June 2024.
Key Dates
Capital Raising Overview
Canaccord and Morgans acted as joint lead managers and underwriters to the fully underwritten $24.3 million capital raising announced on 23 May 2024, comprising:
- an institutional placement of approximately 135.2 million Shares utilising the Company’s available capacity under ASX Listing Rules 7.1 and 7.1A, to raise A$7.6 million (Placement); and
- a 1-for-2 pro rata accelerated non-renounceable entitlement offer of 298.2 million Shares to raise $16.7 million.
The proceeds from the capital raise will be used to fund TNC through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), strengthen its financial position and fund exploration to grow resources and reserves at Cloncurry and target new discoveries at its Mt Oxide Project in 2024.
Refer to the Prospectus and the Company's announcements on 23 May 2024 and 24 May 2024 for further details.
Click here for the full ASX Release
This article includes content from True North Copper, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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True North Copper
Overview
True North Copper (ASX:TNC) is entering a transformative and exciting phase as we become Australia’s next copper producer. It’s 2024 and we’re ready to mine our Cloncurry copper project - low-cost, low-risk, fully funded and permitted.
Our next mine is the Vero resource at our Mt Oxide project. We are committed to developing and understanding this phenomenally mineralised project. Exploration and mining studies are underway.
Copper demand is rising, in a market of diminishing supply. The global surge in artificial intelligence, electric vehicles, decarbonisation initiatives, and broader macro trends is intensifying the demand for copper.
True North Copper is ready.
Company Highlights
True North Copper is preparing to become Australia’s next copper producer.
True North Copper's two principal assets are located in northwest Queensland, Australia - a Tier 1 Jurisdiction:
- Cloncurry Copper Project (CCP) - IOCG and ISCG copper-gold deposits proposed for open pit mining operations, with extensive surrounding exploration tenure.
- Mt Oxide Project (Mt Oxide) – IOCG high-grade, globally significant, copper-cobalt-silver deposit subject to re- optimisation studies, and exploration in surrounding tenure.
Cloncurry Copper Project (CCP)
- Mining restart study confirms positive CCP project economics - AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million over a 4.6 year mine life, at US$8,500 per ton copper price and US$1,850 per ounce gold price (0.7 AU$:USD exchange rate).
- Wallace North Mine preparation and mobilisation. Wallace North is scheduled as the first open pit (one of four – Wallace North, Great Australia Mine [GAM], Taipan and Orphan Shear) to be mined as part of the mining restart at the CCP.
- Mining ramp-up will initially build ore stockpiles, with mining expected to start Q4 FY24(AUS). Oxide copper-gold ore will be transported by road train to the Cloncurry Operations heap leach. Sulphide ore will be transported to a nearby concentrator for toll treatment under TNC's toll-milling agreement with Glencore.
- CCP’s total reserves increased. TNC’s Cloncurry Copper Project (CCP) total reserves currently include 4.7Mt probable ore reserves grading 0.80 percent copper and 0.13g/t gold, containing 37.5 kiloton of copper and 20.0koz of gold.
Figure: Cloncurry copper project and Cloncurry operations hub
Mt Oxide Project
- Highly prospective and underexplored. Phenomenally mineralised system.
- Exploration results from True North Copper's maiden diamond drill program across MT Oxide’s Vero Resource not only returned outstanding and globally significant grades but also showcase the expanding nature of the Vero high-grade ore body including:
- 66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres
- [inc.] 20.60 metres @ 10.51percent copper, 63. g/t silver and 1,149 ppm cobalt from
234.60 metres and - [inc.] 8.55 metres @ 6.03 percent copper, 51.6 g/t silver and 98 ppm cobalt from
290.15 metres
- [inc.] 20.60 metres @ 10.51percent copper, 63. g/t silver and 1,149 ppm cobalt from
- 66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres
- Vero Resource re-estimation and mining studies 2024.
- Vero Resource under tested to depth and along strike.
- Multiple exciting future exploration programs and high-priority potential targets along the 10 kilometres long mineralised trend that hosts Vero.
Figure: Cross-section of MOXD217 (10 metres clipping window) showing the location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD217
Funding and Strategic Partnerships
- AU$42 million (US$28 million) USD-denominated senior secured loan facility (loan facility) with Nebari Natural Resources Credit Fund II LP (Nebari)1. The Loan Facility is provided in two tranches. Drawdown of Tranche 1 – US$18M (approximately AU$25.5 million) on 9 February 2024.
- Binding offtake and toll-milling agreements with Glencore International AG(Glencore) for 100 percent of copper concentrate from TNC’s Cloncurry copper project (CCP) and toll-milling services of up to 1Mt of ore per year for the CCP’s Life of Mine (LoM).
Figure: Visual representation of Vero Resource within surrounding Mt Isa Inlier.
TNC 2024 Exploration Program
- Aggressive discovery strategy targeting transformative discoveries across TNC’s more than 850 sq km of tenure package within the Mt Isa Inlier.
- Significant potential for transformative discoveries of
copper-gold cobalt-silver) in three districts. - Numerous high-quality copper-gold-cobalt-silver targets located with mineralised structural corridors within the eastern & western fold belts such as:
- Cloncurry Fault Corridor 🡪 Host to the GAM and Mt Norma Resources
- Ernest Henry Corridor 🡪 Ernest Henry, E1 Camp and Monakoff
- Mt Gordon Corridor 🡪 Capricorn Copper and Vero
- Mt Roseby Corridor 🡪 Little Eva and Blackard.
- 12.55 Mt @ 0.82 percent copper (indicated and inferred resources).) and multiple prospects located within a 30-kilometre radius of the company's Cloncurry copper project represent near-term production advantage. Recent JV over highly prospective tenements with CMG deal increase TNC’s land position at the core of its Cloncurry copper project.
- TNC awarded the Queensland Government Collaborative Exploration Initiative (CEI) Grant. The CEI grant will be used towards delivery of leading edge MIMDAS induced polarisation, resistivity and magnetotellurics geophysical surveys at the Mt Oxide. The exploration aims to identify massive and disseminated sulphide mineralisation and deliver an improved understanding of the large-scale structural architecture that controls mineralisation throughout the Mt Oxide exploration leases.
Figure: Summary of exploration and development pipeline across all TNC projects.
Projects
Cloncurry Copper Project
Our Cloncurry copper project (CCP) hosts iron oxide copper-gold (IOCG) and iron-sulphide-copper-gold (ISCG) deposits with extensive surrounding exploration tenure. It is built on a strong economic basis and low-risk cost structure.
The CCP currently incorporates two reserves where mining will commence including – the Wallace North maiden resource and the Great Australia mine reserve (GAM):
- GAM includes GAM, Orphan Shear and Taipan deposits) totalling 4.7Mt grading 0.80 percent copper and 0.13g/t gold containing 37.5kt of copper and 20 koz of gold – upgrade to be announced mid-2024.
- Wallace North ore reserve totals 0.7Mt (probable) grading 1.01 percent copper and 0.46g/t gold for 6.8kt copper and 10 koz gold.
TNC’s CCP expansion is ongoing with exploration progressing and advanced projects in strategic locations surrounding the existing CCP operation, promising long-term growth prospects.
Our strategic partnerships, including a binding offtake and toll-milling agreements with Glencore International AG, supported by debt funding secured with Nebari, underscore our operational readiness and position TNC to capitalise on an extremely favourable copper market.
Mining operations will kick-off at the Wallace North open cut pit, targeting higher-grade ores (~1 percent copper) from surface mining. Ore will undergo primary crushing at the Cloncurry operations hub and the toll treatment facility, located within a 40km radius, with a predominant focus on sulphide ores.
All necessary permits for mining are secured across the CCP, bolstered by an established environmental monitoring network with a robust historical database.
TNC's operational strategy involves a phased approach to mine development, with plans to commence mining operations in 2024 and manage capacity ramp-up throughout 2025.
Cloncurry Operations Hub
The Cloncurry operations hub is strategically located to the CCP’s four open pit deposits including: Great Australia, Orphan Shear, Taipan and Wallace North.
The COH is located 2 kilometres from the township of Cloncurry and provides essential infrastructure, technical systems and support to all of TNC’s project operations. An active oxide heap leach and solvent extraction (SX) processing plant, mine buildings, site administration facilities, workshops, open pit mine facilities, onsite explosive magazines, site storage, water management systems and existing site power supply are located at the COH.
Cloncurry Copper Project – Project Economics
- Mining 4.8Mt of ore over an initial 4.6 year mine life, at a low strip ratio of 4.2, delivering 35kt copper and 29 koz gold contained metal (based on existing JORC reserves)
- Anticipated mine revenue of AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million, demonstrating strong operating economics at US$8,500/t copper price and US$1,850/oz gold price (0.7 AU$:USD exchange rate).
- Payback expected within six months post mining restart, driven by favourable commodity prices and low all-in sustaining cost (AISC) of US$2.65/lb copper.
- Low up front capex of AU$1.5 million leverages existing infrastructure, while peak operating expenditure is estimated at AU$2.2 million.
- Sulphide and oxide ore production – two copper products. copper sulphide (LoM approx. 90 percent) + copper sulphate (LoM approx. 10 percent).
- Mineral concentrate grade 22-26 percent copper (with gold/silver credits).
- Sulphide Ores more than88 percent expected recovery.
- Transitional Ores more than 77 percent expected recovery.
- Very low deleterious elements in mineral concentrate.
Cloncurry Copper Project – Exploration 2024
- CCP expansion and exploration focused on rapid copper-gold-ore source growth.
- With more than 80 prospects located within a 30-kilometre radius of the CCP, TNC is focused on significant expansion and the exploration potential for additional copper-gold-cobalt-silver mineralisation to be brought into the production fold including large-scale company transformative major discoveries.
- Thanks to our successful 2023 Exploration Program we have identified through a systematic approach, and analysis at a mineral system scale, the following new targets:
- Cloncurry Copper Project - eight new drill targets at Greater Australian and Copperhead in new Induced Polarisation.
- Salebury and Rocklands South - Compelling untested geophysical anomalies in historic data.
- Mt Norma- untested surface anomalies and down plunge resource extension targets on mining lease within 30 kilometres of the Cloncurry operations hub.
- Wynberg, Notlor, Marimo Trend and Tanbah limited historic exploration significant copper-gold in surface sampling and drilling, limited testing.
Figure: High priority exploration targets at the CCP
Figures above: Anomalies generated from TNCs 2023 induced polarisation program and structural analysis of the GAM Project.
Mt Oxide Project
The Mt Oxide project hosts the Vero resource of 15.98 Mt @ 1.43 percent copper(measured, indicated and inferred) a Mt Isa style sediment-hosted copper-silver-cobalt system. Analogues include Capricorn copper and Mt Isa copper.
The Vero resource at our Mt Oxide project is our next mine. We are focused on understanding this phenomenally mineralised system.
Mt Oxide’s Vero Resource 2023 exploration program returned outstanding and globally significant grades. The program included our 2023 maiden drilling program across the Vero resource and results showcased the expanding nature of the Vero high-grade ore body.
During 2024, TNC will be exploring multiple, exciting high-priority exploration targets along a 10 kilometres mineralised trend that hosts Vero.
We will also be delivering during 2024 the Vero Resource re-estimation and mining optimisation and feasibility studies.
Vero Resource maiden drilling program
In 2023, TNC completed an initial 12-hole diamond drilling program at Mt Oxide designed to confirm historical high-grade intersections and test the depth and strike extensions to the existing Vero Resource.
2023 Vero resource drilling highlights included (* = Estimated True Width):
MOXD217 returned phenomenal results that placed the drill hole in the top globally ranked copper drill holes of 2023 including :
- 66.50 metres (48.00 metres*) @ 4.95 percent copper, 32.7 g/t silver and 685 ppm cobaltfrom 234 metres.
- 11 metres (8.19 metres*) @ 3.06 percent copper, 34.2 g/t silver and 682 ppm cobalt from 357.50 metres.
- 8.55 metres (8.55 metres*) @ 6.16 percent copper, 45.9 g/t silver and 140 ppm cobalt from 172.50 metres.
MOXD221 intercepted a wide interval of high-grade shallow dipping mineralisation as well as a second deeper intercept, providing indications of rapidly increasing grade and widths of mineralisation to the south including:
- 42.10 metres (41 metres*) @ 1.66 percent copper, 13.5 g/t silver and 1,083 ppm cobalt from 154.90 metres.
- [including] 4 metres (2.24 metres*) @ 7.65 percent copper, 57.3 g/t silver and 1,164 ppm cobalt from 191.20 metres.
MOXD226A returned three key zones of strong mineralisation including a broad interval of 69.95 metres and further intervals of up to 11.19 percent copper.
Highlights include:
- 69.95 metres (42.85 metres*) @ 1.91percent copper, 17.7g/t silver and 675 ppm cobalt from 224.55 metres
- [including] 9.65 metres (5.89 metres*) @ 2.74 percent copper, 24.1g/t silver and 993 ppm cobalt from 239.50 metres
- [including] 18.15 metres (11.07 metres*) @ 3.23 percent copper, 26.8g/t silver and 585 ppm cobalt from 276.35 metres
- 16.75 metres (16.75 metres*) @ 5.30 percent copper, 44- g/t silver and 120 ppm cobalt from 165.25 metres
- [including] 4.65 metres (4.65 metres*) @ 11.19 percent copper, 93.9g/t silver and 136 ppm cobalt from 172.55 metres
Figure: Location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD226A
Mt Oxide Discovery Strategy
TNC is committed to unlocking Mt Oxide’s underexplored high-quality targets.
- Mt Oxide lies adjacent to a large crustal scale structure - the Mt Gordon Fault Zone. Splays off this structure (Dorman Fault) host Vero.
- Mt Oxide has evidence of large-scale fluid flow, big mineral system potential.
- Copper-silver-cobalt mineralisation interpreted to have been formed near surface and upper parts are preserved.
- Excellent depth potential of mineralisation in the Mt Oxide project.
- Limited systematic modern exploration outside of the Vero resource.
- Significant opportunity to apply leading-edge mineral exploration to build a larger copper inventory in a well-endowed mineral system.
- More than 10 kilometres trend along Dorman fault zone of intermittently outcropping gossanous / silica breccias, virtually no drilling, surface sampling or effective geophysics.
- Multiple untested targets with significant alteration-mineralisation footprints.
- No application of tried and tested geophysics or systematic surface rock chip geochemistry and mapping.
- Low cost highly effective exploration techniques to filter and prioritise drill targets.
Multiple exciting future exploration programs and high-priority potential targets along 10km long mineralised trend that hosts Vero including:
- Aquila & Mt Gordon
- Ivena North
- Camp Gossans
- Cave Creek
- Big Oxide
Figure: Multiple exciting future exploration programs and high-priority potential targets along the 10-kilometre long mineralised trend that hosts Vero resource’s Mt Oxide project.
Management Team
Ian McAleese - Executive Chairman
Ian McAleese worked as a mine geologist at Mt Isa, Jabiluka and Bougainville for 15 years before moving into copper concentrate marketing on Bougainville. On returning to Australia in 1987, he worked initially as a mining analyst and subsequently as a portfolio manager specialising on investment in mining companies for a number of large investment institutions. McAleese then returned to the mining industry in business development and investor relations roles for a number of coal mining companies, including Macarthur Coal and Whitehaven Coal. After retiring from Whitehaven Coal in late 2020, he joined Duke Exploration as a non-executive director just prior to the Duke Exploration IPO. In December 2022 he became the non-executive chair of True North Copper.
Bevan Jones - Managing Director
Bevan Jones is a seasoned operations officer offering nearly 30 years of experience in mine management across a diverse range of commodities and has a proven track record in directing business improvement initiatives and operational transformation. Jones’ previous roles include chief operating officer at Karora Resources (TSX:KRR), as well as general manager of Gold Fields Limited’s (JSE:GFI) St Ives Gold Mine in WA, where he executed transformative growth strategies and delivered exceptional operational results. Most recently, Jones was the managing director at Brisbane-based Extra Mining Solutions, where he played a leading role in establishing the company focusing on business transformation and operational excellence. Jones gained international operational experience as chief operating officer of BCM Group International in West Africa, general manager of the Wetar Copper Mine in Indonesia and general manager of the Hidden Valley Mine in Papua New Guinea, as well as mining manager of Barrick Gold’s Lumwana Copper Mine in Zambia.
Craig Gouws - Chief Financial Officer
Craig Gouws, a chartered accountant, has extensive Australian and international experience as a CFO and board of director with a demonstrated history of successfully leading financial operations across diverse industries and international markets. Gouws holds a Bachelor of Commerce and a Post Graduate Diploma in Accounting from the University of Cape Town and is a fellow of the Institute of Chartered Accountants in England and Wales and a member in South Africa.
Marty Costello - Executive Director, Business Development
Marty Costello is recognised as one of Australia’s leading project development and sustainability strategists across the resource sector, with more than 20 years of professional experience.
After working for several companies and government departments (domestic and international) managing, developing and implementing environment, sustainability and risk (ESR) programs and policies he established his own environmental consultancy – Northern Resource Consultants (NRC).
In the space of nine years, Costello developed NRC into an industry specialist with more than 25 employees focusing on environmental management and sustainability solutions for the resource sector. NRC delivered agile, best practice ESR strategies and multi-disciplinary environmental and sustainability services for clients like Evolution Mining, Futura, Sojitz, Adani, Red River Resources, CU River Mining, and others.
In 2018, NRC was acquired by SLR, a global leader in environmental and sustainability solutions. The acquisition facilitated considerable additional capability and geographic coverage to SLR’s existing mining and minerals in Asia Pacific business. During his consulting life, Costello was retained by Evolution Mining over an eight-year period to provide strategic project development, ESG advice to the board and executive management team.
Costello holds a Bachelor of Applied Science (environmental management) and Diploma of Applied Science.
Peter Brown - Chief Operating Officer
Peter Brown has held senior management roles in the resources sector, both domestically and internationally, including recent positions at Round Oak Minerals and Diatreme Resources where he oversaw project development and operations. Brown has diverse experience and an impressive track record that demonstrates his ability to successfully deliver projects and foster positive relationships with all project stakeholders.
He has managed discovery programs for gold, copper and chromite in South America, Japan, Vietnam and Indonesia, including government and community relations. He also drove improvements and provided training in mine geology, resource evaluation and mine technical services at prominent mines such as Mt Muro Gold Mine, George Fisher Mine and Peak Gold Mines. Additionally, Brown played a significant role in reviving abandoned satellite projects at Peak Gold Mines.
Other achievements include successfully re-permitting and constructing the 1-Moz Toka Tindung Gold Mine in Indonesia as director of Indonesian companies and general manager at Archipelago Resources; leading the permitting, engineering redesign and construction of the 0.8-Moz Mt Carlton Gold Mine in Queensland; the successful development of Mt Carlton and Pajingo projects, which contributed to the establishment of Evolution Mining; and recommissioning and developing several mining projects in the Mount Isa and Cloncurry region.
Sven Sewell - Sustainability & Net Zero Manager
Sven Sewell has over 25 years’ experience working in a range of environmental fields, including environmental consulting, environmental regulation and within the industry.
For the 15 years prior to joining TNC, Sewell held senior environmental positions at several operating mines across northern Australia. At those operations, he was generally the most senior environment, responsible for all aspects of permitting, compliance, rehabilitation and general environmental management. Sewell's experience in northern Australian mines includes several new and established gold, uranium and bauxite operations.
Sewell holds a BSc (with honours) in environmental science.
Mark Brown - General Manager, Cloncurry Operations
With more than 30 years of domestic and international mining industry experience, Mark Brown offers a comprehensive skill set grounded in practical resource sector execution and invaluable leadership experience. His career journey has been marked by a commitment to safety, operational excellence, and fostering positive work cultures.
Brown has held a variety of senior leadership operational roles throughout his career, overseeing various aspects of mining operations. He has extensive experience across all mining regulatory and compliance aspects and has expertise in health and safety management including emergency response, crisis management, contractor management, and comprehensive incident investigations.
Michelle Ellis - Cloncurry Projects Exploration Manager
Michelle Ellis retains over 15 years’ mineral exploration, resource and mining experience predominantly in iron-oxide-copper-gold deposits and terrains across South Australia and Northwest Queensland.
Over the past 11 years, she has actively explored a range of commodities and deposit styles throughout the Mount Isa Inlier.
Ellis has an MSc in economic geology, MSc in environmental management and BSc in applied science - geoscience, and is a member of the Australasian Institute of Mining and Metallurgy.
Rhonda Freeman - Group Manager (Human Resources)
Rhonda Freeman has more than 18 years’ experience attracting top talent, fostering employee development and helping organisations develop safe and supportive work environments. She has worked extensively across the resource sector, including for large national-wide drilling companies.
Freeman has worked for mining companies across a variety of geological settings including brown coal, black coal, uranium, mineral sands and oil & gas. She brings a diverse skill set specific to the resource sector, having worked across all commercial aspects of drilling operations including as an exploration manager.
Drilling Confirms Discovery of Large Platreef-Style Copper-PGE Sulphide Reefs at Dante
Terra Metals Limited (ASX:TM1) (“Terra” or “Company”) is pleased to announce that results from a further 14 wide-spaced, first-pass reconnaissance drill holes at the Dante Reefs has confirmed the discovery of multiple Platreef-style copper-PGE sulphide reefs. Defined over 4.5km thus far across Reef 1 and Reef 2, mineralisation remains open along strike and downdip, with assays pending from a further 16 drillholes covering an additional 4.5km of strike at Reef 2.
Highlights
- Results from a further 14 drillholes confirm the discovery of multiple Platreef-style copper- platinum group element (PGE) reefs from surface at the Dante Reefs; only 15km from BHP’s $1.7 billion Nebo-Babel mine development (390Mt @ 0.30% Cu, 0.33% Ni, 0.23g/t PGE3)1.
- Drilling results to-date confirm that the Dante Reefs have the potential to host a large sulphide deposit containing copper, gold, PGEs, vanadium and titanium; the first of its kind in Australia.
- The Dante Reefs are a series of gentle dipping, laterally extensive, mineralised layers (similar to a coal seam) which outcrop from surface and in total run for 42km.
- Approximately 10m thick with a higher-grade basal layer of approximately 5m.
- Mineralisation defined over 3km in length from surface at Reef 1*, while first assays at Reef 2* confirm a further 1.5km of strike.
- Other globally significant reefs include those of the Bushveld Province in South Africa which average 1-2m in thickness.
- Highlights from further wide-spaced, first-pass drilling at the Dante Reefs include:
- 6m @ 0.40% Cu, 0.79g/t PGE3, 0.66% V2O5, & 19.9% TiO2 from 4m (HRC004), including:
- 2m @ 0.62% Cu, 0.85g/t PGE3, 0.71% V2O5 & 22.3% TiO2 from 6m
- 5m @ 0.34% Cu, 0.84g/t PGE3, 0.81% V2O5, & 21.2% TiO2 from 21m (URC005), including:
- 3m @ 0.43% Cu, 0.94g/t PGE3, 0.88% V2O5 & 24.1% TiO2 from 23m
- 7m @ 0.31% Cu, 0.61 g/t PGE3, 0.71% V2O5, & 20.7% TiO2 from 17m (URC011)
- 10m @ 0.82g/t PGE3, 0.11% Cu, 0.44% V2O5 & 10.5% TiO2 from 66m (HRC002), including:
- 3m @ 2.22g/t PGE3, 0.20% Cu, 1.08% V2O5, & 23.5% TiO2 from 68m
- 5m @ 0.30% Cu, 0.81g/t PGE3, 0.70% V2O5, & 19.1% TiO2 from 71m (URC006), including:
- 2m @ 1.57g/t PGE3, 0.31% Cu, 0.99% V2O5, & 23.2% TiO2 from 74m
- 3m @ 1.40 g/t PGE3, 1.00% V2O5, & 21.0% TiO2 from 9m (URC008)
- 6m @ 0.40% Cu, 0.79g/t PGE3, 0.66% V2O5, & 19.9% TiO2 from 4m (HRC004), including:
- The copper-PGE mineralisation includes high-grade vanadium and titanium, critical for renewable batteries and specialty steel. Conventional metallurgical tests have commenced.
- Assays from 16 drill holes still outstanding from a further 4.5km of strike at Reef 2.
- The Company anticipates publishing an initial exploration target for Reef 1 in the near future.
Managing Director and CEO, Thomas Line, commented:“Weareexcitedtohavediscovered multiple Platreef-style copper-PGE sulphide reefs from a first pass-reconnaissance drilling program at the Dante Project; the firstofits kindin Australia. Our next step is to continue to replicate these resultsovertheextensivestrikeattheDanteReefs,ensuringwearewellpositionedforsuccess.
“It’s clear that there is a concentration and combination of high value metals within the same layers in the Dante Reefs. Chalcocite and bornite appear to be the dominant copper-sulphides. Our highly experienced metallurgical team, led by Dr. Evan Kirby, have already commenced initial metallurgical test work, focusing on the application of conventional flowsheets.
“The discovery of similar style reefs in the Bushveld Province of South Africa has resulted in some of the world’s largest, longest running and most profitable PGE, copper, nickel, gold, vanadium and titanium mining operations with over 100 years of ongoing production. The stratiform reefs of the Bushveld average 1 to 2 metres in thickness and require complex underground mining operations; however, their centennial mine life exemplifies how successful these types of deposits can be. The 120 million tonne Platreef Deposit, which is thicker than the other reefs in the Bushveld, sits 600m beneath the surface requiring immense infrastructure including one of the world’s largest hoist-shaft to extract the ore to the surface.
“The Dante Reefs, however, outcrop from surface over more than 40km of strike, with a gentle dip and an average thickness of approximately 10 metres with a higher-grade basal reef layer, and a second, upper reef layer of lower grade but similar thickness.
“This is just the beginning of the discovery story at the Dante Project, where the vast majority of targets and strike remain undrilled. New insights at the Cronus Prospect are highlighting possible vectors for higher-grade magmatic sulphides. We look forward to presenting these along with further assays in the coming weeks.”
Click here for the full ASX Release
This article includes content from Terra Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Gold and Critical Minerals Exploration Presentation
Gold Coast Investment Showcase 19-20 June 2024
Forward-Looking Statements
Statements in this presentation which are not statements of historical facts, including but not limited to those relating to the proposed transactions, are forward-looking statements. These statements instead represent management's current expectations, estimates and projections regarding future events.
Although management believes the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward- looking statements. Accordingly, investors are cautioned not to place undue reliance on such statements.
Competent Person Statement
The information in this report that relates to Exploration Targets or Exploration Results is based on information compiled by Allan Kelly, a “Competent Person” who is a Member of The Australian Institute of Geoscientists. Allan Kelly is the Executive Chairman of Miramar Resources Ltd. He is a full-time employee of Miramar Resources Ltd and holds shares and options in the company.
Allan Kelly has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to Qualify as a “Competent Person” as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Allan Kelly consents to the inclusion in this presentation of the matters based on his information and in the form and context in which it appears.
Information on historical results for all projects within this presentation, including JORC Table 1 and 2 Information, is included in the Miramar Resources Limited Prospectus dated 4 September 2020.
JORC Table 1 and 2 Information for Miramar results for all projects within this presentation are included in the relevant ASX releases.
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This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Whaleshark Exploration Update
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to provide an update on exploration activities at the Company’s 100%-owned Whaleshark Project, in the Gascoyne region of WA, where the Company has outlined a significant magnetite Exploration Target of 411Mt - 2,353Mt at 25-30% Fe in proximity to substantial mining, processing, power, transport and shipping infrastructure.
- Significant magnetite Exploration Target outlined at Whaleshark in proximity to substantial mining, processing, power, transport and shipping infrastructure
- Project-wide passive seismic survey maps basement topography
“There is strong demand for magnetite from steel producers looking to reduce their carbon emissions through production of Direct Reduced Iron (DRI), which requires the higher grades obtained from magnetite iron ore to be effective,” Mr Kelly said.
“Whaleshark has several large magnetite-rich banded iron formations that have not been previously targeted or explored for magnetite iron mineralisation,” he said.
“Data from the passive seismic survey recently completed confirms that these magnetite-rich banded iron formation lie under relatively shallow cover,” he added
“Importantly, the Whaleshark Project is located in proximity to substantial existing and proposed mining, processing, power, transport and shipping infrastructure,” he said.
Figure 1. Location of Miramar’s Whaleshark Project in relation to various infrastructure.
Magnetite Exploration Target
The Company has estimated an initial magnetite “Exploration Target” for the Whaleshark Project as summarised in Table 1.
By using modelled geophysical data, geological logging and assay results from historical drilling within the Whaleshark magnetic anomaly and extrapolating those results to the two banded iron formations south of the Whaleshark Granodiorite, the Company has outlined a significant potential volume of magnetite iron ore, with the midpoint in the order of 1 Billion tonnes.
The scale of the potential magnetite iron mineralisation at Whaleshark compares favourably with several large magnetite projects within WA (Figure 2).
Table 1. Whaleshark Exploration Target Summary
Cautionary Statement:
The above Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a JORC-compliant Mineral Resource.
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This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
What Factors Affect Copper Supply and Demand? (Updated 2024)
From wiring and plumbing to electric vehicles (EVs) and electronics, base metal copper is key for a range of important applications in various industries. In fact, it's even earned the moniker "Dr. Copper."
That's because copper's widespread uses make it a valuable indicator for global economic health. Knowing what drives copper prices today is therefore helpful for investors who are focused on the bigger picture for copper.
Even though the red metal took a COVID-19-induced dive in the early spring of 2020, both 2021 and 2022 turned out to be record-setting years for the copper price. That trend has continued this year — in May, copper hit yet another a fresh all-time high, reaching US$5.20 per pound on the Comex, which equates to US$11,464 per metric ton (MT).
The London Metal Exchange (LME) three month futures price also set a new all-time high that day of US$11,104 per MT.
With that in mind, what should investors know when tracking the copper price today? The following four factors have major impacts on supply and demand dynamics for copper products.
1. How does China affect copper demand?
China is the fourth largest copper-producing country in the world behind Chile, Peru and the Democratic Republic of Congo (DRC). However, China plays an outsized role in copper demand, accounting for about 55 percent of global consumption. Around 30 percent of China’s copper consumption is associated with its building and construction sector.
Spikes in demand from China have led to numerous jumps in copper prices over the years, while pullbacks in the second largest global economy have translated into dramatic slides in the price of the industrial metal.
For example, strong demand from China in 2020 and early 2021 pushed copper prices to record-breaking highs. However, signs of slowing demand in the second half of 2021, alongside the fiscal crisis surrounding Chinese real estate giant Evergrande (HKEX:3333), created a price environment that was marred with volatility.
Copper managed to hit a then record-high price of US$5.02 per pound in March 2022 on fears of supply chain disruptions following Russia's invasion of Ukraine. However, softer demand from China's real estate sector continued to weigh on the market throughout the second half of 2022 and much of 2023, placing downward pressure on copper prices. By mid-October 2023, the price of copper had dropped to a low of US$3.56 per pound.
Another way in which China shapes global copper prices is through its copper smelters. The nation leads the world in refined copper production, and has increased its refining capacity in recent years, as have India and Indonesia. In March of this year, Chinese smelters collectively cut output in the face of single-digit treatment and refining charges. Prices for the red metal jumped 3 percent on the news to reach US$4.12 per pound.
The increasing threat of a looming supply bottleneck amid rising demand for copper from the energy transition led copper to its most recent record high of US$5.20 per pound in May. Even so, China’s ongoing property sector crisis has continued to place downward pressure on copper prices alongside weak manufacturing data.
As of mid-June, the red metal was trading at around US$4.50 per pound.
2. How much copper is needed for the energy transition?
From renewable energy and storage applications to EVs and charging infrastructure, copper’s conductive properties have given it an important role in the energy transition, which is gaining steam worldwide.
During his “Catalyzing Minerals for Development” keynote presentation at this year's Prospectors & Developers Association of Canada (PDAC) convention, Dr. Michael Stanley, mining lead for the World Bank, explained that the energy transition will completely disrupt the century-long demand pattern for metals critical for infrastructure such as copper.
“This is very important, because the world is now challenged to replace electric systems and energy systems that the last 150 years have underpinned all economic development,” he explained to the audience.
Just looking at EVs, this sector of the auto market is expected to require much more copper usage compared to internal combustion engine (ICE) vehicles. While the average ICE vehicle contains about 22 kilograms of copper, according to researchers at Wood Mackenzie, that figure increases to 40 kilograms and 55 kilograms for hybrid EVs and plug-in hybrid EVs, respectively. Fully battery-powered EVs use even more, at 80 kilograms of the red metal.
As for renewable energy technologies, the Copper Development Association pegs copper demand from solar installations at about 5.5 MT for every megawatt, while onshore and offshore wind turbines will require 3.52 MT and 9.56 MT of copper, respectively. As governments and industries strive to meet ambitious climate goals, copper demand from this sector is expected to escalate. A 2022 study from S&P Global indicates that achieving net-zero carbon emissions by 2035 would likely lead annual copper demand to nearly double to reach 50 million MT.
Unfortunately, the prospect of meeting this expected demand from the global energy transition is challenging given the vast amount of new copper mine supply that will be required. A May 2024 International Energy Forum report projects that by 2050 as many as 194 new copper mines may be needed to satisfy this growing segment of the market.
This looming supply/demand imbalance has analysts projecting massive deficits. According to McKinsey & Company, demand from energy transition technologies will push the copper supply deficit to 6.5 million MT by 2031.
3. How does mine production affect copper supply?
Mine disruptions are another important influence on copper prices.
In 2020 and 2021, the main cause for mine disruptions was the operational shutdowns resulting from the COVID-19 pandemic. Copper-mining operations in Chile, Peru and Mexico experienced the worst of it.
More typically, these disruptions are attributed to extreme weather, natural disasters, permitting or labor disputes, which have been known to halt production for weeks and months on end. BHP's (NYSE:BHP,ASX:BHP,LSE:BHP) Escondida mine in Chile has faced labor strikes and narrowly averted strikes several times over the years. In June 2024, the mining giant warded off another potential strike at Escondida with a preliminary wage agreement, according to BNN Bloomberg. The mine’s output alone accounts for about 1 percent of global copper mine supply.
In late 2022, protests against the government in Peru's mining-heavy regions turned deadly, and the disruptions continued into 2023. Nevertheless, Peru remained the second largest producer of copper in 2023.
Looking forward, however, Victor Gobitz, president of Peru's biggest copper mine Antamina, told Reuters that the ongoing crisis is dissuading investments in greenfield copper projects. Antamina is a joint venture between Glencore (LSE:GLEN,OTC Pink:GLCNF), BHP, Teck (TSX:TECK.B,TSX:TECK.A,NYSE:TECK) and Mitsubishi (TSE:8058).
Another issue facing mine production is the growing significance of the DRC in global mine production, a nation fraught with instability. The DRC ranked third in global production last year and is on the verge of overtaking Peru. Unfortunately, it is plagued by political upheaval, as well as corruption and human rights abuses associated with artisanal mining.
Perhaps the biggest setback for global copper mine supply came at the end of 2023, with the forced closure of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama copper mine in Panama. According to analysts at research firm ING, this “removed around 4,000,000 tonnes of the metal from the world’s annual supply."
Although the government of Panama had approved a new 20 year extension to First Quantum’s mining license in October, public backlash led to protests and the Supreme Court eventually overturned the contract. Panamanian President Laurentino Cortizo ordered the Cobre Panama mine to close in November 2023.
Despite these dynamics, copper market watchers aren’t counting out the mine’s potential contribution to supply just yet. Following the May 2024 presidential elections in Panama, a new administration is set to take office in July, and First Quantum is expected to attempt to negotiate a restart. However, President-elect Jose Raul Mulino has said he will not hold talks unless the copper company drops its arbitration proceedings against Panama.
Even with these factors, global copper mine production still managed a small uptick in 2023, rising 0.46 percent over the previous year. The International Copper Study Group expects mine output in 2024 to increase by another modest 0.5 percent; however, the organization is projecting that copper production will jump by 3.9 percent in 2025.
4. How do inventory levels affect copper supply?
Rising copper inventories can weigh on the metal, while falling inventories can boost the copper price.
Declining inventories over the past few years have helped lift copper prices, with Shanghai Futures Exchange (ShFE) and LME inventories both experiencing significant drops during that time. The declines in these major stockpiles have sparked a rise in demand for scrap copper, also known as secondary copper.
So how much should investors pay attention to copper stockpiles?
Speaking to Reuters, Robin Bhar, head of metals research at Société Générale (OTC Pink:SCGLF,EPA:GLE), emphasized that it is important to look at inventories across the globe to get a better picture of the copper supply landscape. "The LME in theory is a barometer of supply and demand and looking at LME stocks you'd be pretty bullish on metals prices,” he said. “But if you look at the global picture and include ShFE and Comex, you probably want to be a bit more neutral.”
This year, copper inventories have soared, especially in China, on the back of weakening demand from the property sector and mediocre manufacturing data. According to Reuters, in the week leading up to June 7, ShFE registered copper stockpiles climbed to a 51 month high of 339,964 MT.
"Stockpiles in China usually follow a distinct seasonal patter, with strong builds at the start of the year, followed by equally rapid drawdowns from about March onwards," notes the news agency. "However, this year is different, with ShFE warehouses continuing to see huge inflows at a time when they are normally shipping metal out."
What's the outlook for copper?
In the long term, copper has many factors working in its favor. Supply-side challenges are expected to deepen in the years ahead alongside improving demand as the energy transition continues to take hold. Additionally, government legislation such as the US Inflation Reduction Act could be a boon for copper demand.
Kevin Murphy, director of metals and mining research at S&P Global Commodity Insights, believes economic uncertainty is exacerbating an already years-long lack of investment in copper deposit exploration and development.
“Over the past decade, we’ve added over half a billion tonnes of copper to global reserves and resources after replacing production,” he told attendees at PDAC earlier this year. "So we’re absolutely adding copper, but we’re adding it to old assets, we’re adding it to mines, we’re adding it to projects that have been discovered 30 or 40 years ago that aren’t in production, and unfortunately, they aren’t in production for very good reasons."
The ensuing supply deficit will likely bolster copper prices. S&P Global's copper market forecast for the 2024/2025 period sees the price of copper averaging US$4.05 per pound, or US$8,928 per MT, in 2024; in 2025 it's then seen increasing to US$4.24 per pound, or US$9,347 per MT. Goldman Sachs (NYSE:GS) ismore bullish on the red metal, projecting a copper price of US$6.80 per pound, or US$15,000 per MT, by 2025.
This is an updated version of an article originally published by the Investing News Network in 2015.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Miramar to Present at Gold Coast Investment Showcase Conference
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that the Company’s Executive Chairman, Mr Allan Kelly, will be presenting at the Gold Coast Investment Showcase at 9:30am (EST) on Thursday, 20th June 2024.
Mr Kelly’s presentation will be live-streamed and can be accessed via the following link: https://www.goldcoastinvestmentshowcase.com.au/livestreamingregistration
In addition, the presentation will be recorded and made available via the Company’s website after the Conference.
Shareholders wanting to come along to the conference can register via this link: https://vert.eventsair.com/gold-coast-investment-showcase-2024/freeregistration/Site/Register
Miramar Executive chairman, Mr Allan Kelly, and Technical Director, Ms Marion Bush will be exhibiting at Stand 11.
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This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Entitlement Offer Prospectus
This Prospectus is primarily being issued for a non-renounceable pro-rata offer to Eligible Shareholders of 1 New Share for every 10 Shares held on the Record Date, at an issue price of $0.04 per New Share (Entitlement Offer).
This Prospectus is also being issued for the Top-Up Offer and Shortfall Offer described in this Prospectus.
The Entitlement Offer and Top-Up Offer close at 5.00pm (AWST) on 5 July 2024 (Closing Date).*
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This article includes content from Firetail Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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