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Intrepid Metals Corp. (TSXV: INTR) (OTCQB: IMTCF) ("Intrepid" or the "Company") provides results for 5 additional diamond drill holes from the Company's Corral Copper Property ("Corral Copper" or the "Property") located in Cochise County, Arizona. All 5 holes were drilled in the Ringo Zone which is located along the southern margin of a 3-kilometer-long trend of near surface carbonate replacement ("CRD") and related supergene enrichment oxide copper-gold-silver-zinc mineralization. Highlights from these 5 holes are shown in Table 1.
Additional highlights include:
- 198.00 meters ("m") of 0.68% Copper Equivalent ("CuEq")1 (0.56% Copper ("Cu"), 0.12 grams per ton ("gpt") Gold ("Au") and 4.35 gpt Silver ("Ag")) from 10.00 to 208.00m in Hole CC24_016 including,
- 72.20m of 1.26% CuEq1 (1.28% Cu, 0.08 gpt Au and 3.16 gpt Ag)
- 1.60m of 5.72% CuEq1 (5.30% Cu, 1.95 gpt Au and 11.20 gpt Ag).
- 133.20m of 0.64% CuEq1 (0.42 Cu, 0.46 gpt Au, 2.22 gpt Ag) from 45.85 to 179.05m in Hole CC24_14 including
- 79.00m of 0.68% CuEq1 (0.33% Cu, 0.65 gpt Au, 2.70 gpt Ag) and
- 2.35m of 13.52% CuEq1 (4.71% Cu, 15.84 gpt Au, 39.26 gpt Ag).
- 99.45m of 0.68% CuEq1 (0.54% Cu, 0.27 gpt Au and 3.11 gpt Ag) from 60.00 to 159.45m in Hole CC24_013 including,
- 44.40m of 1.28% CuEq1 (1.08% Cu, 0.53 gpt Au and 3.57 gpt Ag) and
- 3.30m of 5.56% CuEq1 (5.08% Cu, 1.86 gpt Au and 19.75 gpt Ag).
"The Corral Copper Project has once again returned remarkable shallow copper grades and mineralized intercepts at the Ringo Zone," stated Ken Brophy, Chief Execuitve Officer. "The drilling at Ringo is illustrating the Project's gold endowment with broad intercepts of highly continuous, locally high-grade gold mineralization, including 21.3 gpt Au over 1.1m in hole CC24_15 and 15.84 gpt Au over 4.71m in hole CC24_14, which we expect will make a significant contribution to the economic potential of the project."
The Ringo Zone is located at the southern end of a 3-kilometer-long string of copper-gold-silver-zinc bearing carbonate replacement bodies (Figure 1). The Ringo Zone measures approximately 900m (northwest to southeast) by 800m (southwest to northeast) and contains favorable Abrigo Limestone (and Bolsa Formation), pre-mineral intrusions, alteration and copper-gold-silver-zinc replacement style mineralization and secondary enriched copper oxide zones that are locally high-grade. To date, Intrepid has completed 9 holes in the Ringo Zone for a total of 2105m. Highlights from holes CC24-013 through CC24-017 are included in Table 1 below and full results are within Table 2. Hole CC24_16 was prematurely shut down due to drill rods breaking down hole and ended in robust mineralization.
Table 1. Highlight composite drill intercepts for the Ringo Zone1
The Corral Copper 2024 Drill Campaign
Intrepid has completed 20 diamond drill holes (~3,900m) as part of a planned 5,000m program within its private lands at Corral Copper. Intrepid is drill testing a 3.5 by 1.5 km copper-gold-silver-zinc mineralized footprint to demonstrate its potential to host economic CRD, skarn, and related porphyry copper mineralization.
Precious and base metal mineralization at Corral Copper is concentrated in structurally controlled northeast dipping siliciclastic and carbonate sedimentary rocks including (oldest to youngest) Cambrian Bolsa Quartzite, upper-Cambrian Abrigo Limestone, Devonian Martín limestone and Mississippian Escabrosa limestone (Figure 1). The most intense mineralization occurs in the Abrigo Limestone (main host) and Bolsa Quartzite, which are intruded locally by a series of Jurassic (and possibly younger) mineralized intrusions including the Star Hill, Copper Bell and Sniveler porphyries, quartz latite sills, and cross-cutting mineralized breccia bodies.
The Corral Copper Property includes the Holliday, Earp and Ringo zones (northwest to southeast, which are related zones of discontinuously outcropping, locally high grade CRD and skarn related mineralization and associated supergene enrichment mineralization that are interpreted to have formed in the distal porphyry copper geological environment). Please refer to footnotes for details regarding assumptions for metal equivalent calculations and true widths.
Figure 1. Geological map showing diamond drill hole locations for the 2024 Drill Program2
Figure 1 includes historical data marked as such by the legend. Please refer to footnotes for additional details.
Table 2. Composite drill intercepts for Corral Copper Project Holes CC24-013 to CC24-0171
Table 3. Drill hole location information for holes CC24-013-CC24-0171
Technical Information
All scientific and technical information in this news release has been prepared by, or approved by Daniel MacNeil, P.Geo. Mr. MacNeil is a Technical Advisor to the Company and is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Mr. MacNeil has verified the drilling data disclosed in this news release, including the assay and test data underlying the information or opinions contained in this news release. Mr. MacNeil verified the data disclosed (or underlying the information disclosed) in this news release by reviewing imported and sorted assay data; checking the performance of blank samples and certified reference materials; reviewing the variance in field duplicate results; and reviewing grade calculation formulas. Mr. MacNeil detected no significant QA/QC issues during review of the data and is not aware of any sampling, recovery or other factors that could materially affect the accuracy or reliability of the drilling data referred to in this news release.
However, some of the data disclosed in this news release is related to historical drilling results which have been identified as such. Intrepid Metals and Mr. MacNeil have not undertaken any independent investigation of the sampling nor have they independently analyzed the results of the historical exploration work in order to verify the results. Intrepid and Mr. MacNeil considers these historical drill results relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.
Quality Assurance and Quality Control
Drill core was first reviewed by a geologist, who identified and marked intervals for sampling. The marked sample intervals were then cut in half with a diamond saw; half of the core was left in the core box and the other half was removed, placed in plastic bags, sealed and labeled. Intervals and unique sample numbers are recorded on the drill logs and the samples are sequenced with standards and blanks inserted according to a predefined QA/QC procedure. The samples are maintained under security on site until they are shipped to the analytical lab.
All core samples were sent to ALS Geochemistry (ALS), a division of ALS Global, in Tucson, Arizona, for sample preparation, with pulps sent to the ALS Geochemistry laboratory in Reno, Nevada for analysis. ALS meets all requirements of International Standards ISO/IEC 17025:2017 and ISO 9001:2015 for analytical procedures and is independent of the Company. HQ size core was split and sampled over approximately two metre intervals. Samples were analyzed using: ALS's Fire Assay Fusion method (Au-AA23) with an AA finish for gold and by gravimetric finish (Au-GRA21) for samples assaying greater than 10 ppm (g/t) gold; by a 36-element four acid digest ICP-AES analysis (ME-ICP61) with additional analysis for Ore Grade Cu (Cu-OG62), Ore Grade Zn (Zn-OG62) and Ore Grade Pb (Pb-OG62); and for silver assays above 100 ppm (g/t) by Fire Assay Fusion method with gravimetric finish (Ag-GRA21). ME-ICP61 results were reported in parts per million (ppm), Ore Grade (OG62) results were reported in percent (%). In addition to ALS quality assurance- quality control (QA/QC) protocols, Intrepid implements an internal QA/QC program that includes the insertion of sample blanks, duplicates, and standards, with QA QC control samples comprising approximately 10% of the sample stream.
About Corral Copper
The Corral Copper Property is a district scale advanced exploration and development opportunity in Cochise County, Arizona. Corral Copper is located 15 miles east of the famous mining town of Tombstone and 22 miles north of the historical Bisbee mining camp which has produced more than 8 billion pounds of copper3. Production from the Bisbee mining camp, or within the district as disclosed in the next paragraph, is not necessarily indicative of the mineral potential at Corral.
The district has a mining history dating back to the late 1800s, with several small mines extracting copper from the area in the early 1900s, producing several thousand tons. Between 1950 and 2008, various companies explored parts of the district, but the effort was uncoordinated, non-synergistic and focused on discrete land positions and commodities due to the fragmented ownership. Intrepid has been able to secure data from various sources which provides a solid foundation in creating geological interpretations and identifying new target areas.
The Corral Copper Property is comprised of the Excelsior Property, the CCCI Properties, the Sara Claim Group and the MAN Property. The Company has completed the acquisition of the Excelsior Property and Sara Claim Group through purchase and sale agreements. The Company has the right to acquire the corporate group that holds the CCCI Properties through an option agreement. The Company has the right to acquire the MAN Property through an option agreement. See the "Commitments" section of the Company's most recently filed Management Discussion and Analysis for further details.
Intrepid is confident that by combining modern exploration techniques with historical data and with a clear focus on responsible development, the Corral Copper Property can quickly become an advanced exploration stage project and move towards development studies.
About Intrepid Metals Corp.
Intrepid Metals Corp. is a Canadian company focused on exploring for high-grade essential metals such as copper, silver, lead, and zinc mineral projects in proximity to established mining jurisdictions in southeastern Arizona, USA. The Company has acquired or has agreements to acquire several drill ready projects, including the Corral Copper Project (a district scale advanced exploration and development opportunity with significant shallow historical drill results), the Tombstone South Project (within the historical Tombstone mining district with geological similarities to the Taylor Deposit, which was purchased for $1.3B in 20184, though mineralization at the Taylor Deposit is not necessarily indicative of the mineral potential at the Tombstone South Project) both of which are located in Cochise County, Arizona and the Mesa Well Project (located in the Laramide Copper Porphyry Belt in Arizona). Intrepid has assembled an exceptional team with considerable experience with exploration, developing, and permitting new projects within North America. Intrepid is traded on the TSX Venture Exchange (TSXV) under the symbol "INTR" and on the OTCQB Venture Market under the symbol "IMTCF". For more information, visit www.intrepidmetals.com.
INTREPID METALS CORP.
On behalf of the Company
"Ken Brophy"
CEO
For further information regarding this news release, please contact:
Ken Brophy, CEO
604-681-8030
info@intrepidmetals.com
Notes
- Composite intervals are calculated using length weighted averages based on a combination of lithological breaks and copper, gold, silver and zinc assay values. All intervals reported are core lengths, and true thicknesses are yet to be determined. Mineral resource modeling is required before true thicknesses can be estimated. Analyzed Grade corresponds composite weighted ("composites") averages of laboratory. Metal Equivalent corresponds to undiluted metal equivalent of reported composites and Diluted Metal Equivalent takes into account dilution factors of 85% for Copper, and 80% for gold, silver and zinc for reported composites. Metal prices used for the CuEq and AuEQ calculations are in USD based on Ag $22.00/oz, Au $1900/oz, Cu $3.80/lb, Zn $1.15/lb The following equation was used to calculate copper equivalence: CuEq = Copper (%) (85% rec.) + (Gold (g/t) x 0.71)(80% rec.) + (Silver (g/t) x 0.0077)(80% rec.) + (Zinc (%) x 0.28)(80% rec.). The following equation was used to calculate gold equivalence: AuEq = Gold (g/t)(80% rec.) + (Copper (%) x 1.4085)(85% rec.) + (Silver (g/t) x 0.0108)(80% rec.) + (Zinc (%) x 0.4188)(80% rec.). Analyzed metal equivalent calculations are reported for illustrative purposes only. The metal chosen for reporting on an equivalent basis is the one that contributes the most dollar value after accounting for assumed recoveries.
- Data disclosed in this news release includes historical drilling results, Intrepid Metals has not undertaken any independent investigation of the sampling, nor has it independently analyzed the results of the historical exploration work in order to verify the results. Intrepid considers these historical data relevant as the Company is using this data as a guide to plan exploration programs. The Company's current and future exploration work includes verification of the historical data through drilling.
- Information disclosed in this news release regarding the historic Bisbee Camp can be found on the Copper Queen Mine website and on the City of Bisbee website (www.bisbeeaz.gov/2174/Bisbee-History).
- Details regarding the sale of the Taylor Deposit can be found in South32 News Release dated October 8, 2018 (South32 completes acquisition of Arizona Mining).
Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this release constitute forward-looking information within the meaning of applicable Canadian securities laws. Such forward-looking statements relate to: economic potential of the Property; confirmation of historical results; expansion of Holliday, Earp and Ringo zones; disclosure of additional drill results; the Project's gold endowment; the significant contribution to the economic potential of the project; the potential of the Property to host an economic CRD, skarn and related porphyry copper mineralization; future exploration plans and drilling plans including the estimated number of drill holes, meterage and expected completion date; the Company's confidence in the drill program; details about potential mineralization; the exploration potential of the Corral Copper Property and the Company's other mineral projects; and potential future production.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the Company can raise additional financing to continue operations; the results of exploration activities, commodity prices, the timing and amount of future exploration and development expenditures, the availability of labour and materials, receipt of and compliance with necessary regulatory approvals and permits, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to the ability to access infrastructure, risks relating to the failure to access financing, risks relating to changes in commodity prices, risk related to unanticipated geological or structural formations and characteristics risks related to current global financial conditions, risks related to current global financial conditions and the impact of COVID-19 on the Company's business, reliance on key personnel, operational risks inherent in the conduct of exploration and development activities, including the risk of accidents, labour disputes and cave-ins, regulatory risks including the risk that permits may not be obtained in a timely fashion or at all, financing, capitalization and liquidity risks, risks related to disputes concerning property titles and interests, environmental risks and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
INTR:CA
When Will Copper Go Up? (Updated 2024)
“Most analysts are modeling growing deficits in the copper market balance by 2027-2028, with a near-term forecast (2024-2026) hinting at surpluses until then; however, recent developments suggest a shift toward deficits by late 2024 due to production shortfalls by large producers," Joe Mazumdar of Exploration Insights said via email.
These concerns have driven copper to highs several times in recent years. A copper supply/demand imbalance sparked a record-breaking rally in 2021, pushing prices to a then all-time high of US$10,724.50 per metric ton (MT) — a record that the metal broke in March 2022, when it hit US$10,730.
20 year copper price chart.
Chart via Federal Reserve Economic Data.
Copper had pulled back to about US$8,000 by mid-August 2022 on growing fears of a global recession. In early 2023, prices mounted a campaign to breach the US$9,300 level, once again giving market watchers a reason to believe highs for the metal would soon to be retested. However, that reason soon faded as rising interest rates dampened the outlook for copper-dependent industries globally. China's ongoing real estate crisis also hit copper demand hard in 2023.
With the demand picture unclear, copper couldn't hold above the US$9,000 level. As a result, it went on a slide, reaching US$7,910 as of early October 2023. Copper managed to close the year close to the US$8,500 mark.
This trajectory continued into the first quarter of 2024, keeping copper trading in a range of US$8,000 to US$8,500. Recent production curbs out of top Chinese copper smelters are also helping to support prices.
The closure of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama copper mine last year and Anglo American (LSE:AAL,OTCQX:AAUKF) revised 2024 copper production target were also significant factors behind copper's price momentum.
It began climbing in earnest in Q2 on building anticipation that the Federal Reserve may soon launch its rate cut cycle alongside a worsening supply side picture. On May 20, 2024, the price of copper reached its highest recorded price of US$5.20 per pound, or US$11,464 per MT.
However, the price of the base metal moved back under US$10,000 by the end of the month.
Is the optimism of an impending bull market for the red metal still warranted? Let’s look at the current supply and demand factors that could influence copper prices to the upside.
Green energy in driver’s seat for copper demand
Copper’s many useful properties have translated into demand from diverse industries. Construction and electronics have long been the main drivers for copper demand, and with a conductivity rating that's second only to silver, it’s no wonder copper is also an ideal metal for use in energy storage, electric vehicles (EVs) and EV charging infrastructure.
Energy storage may prove to be one of the most copper-intensive markets in the 21st century. According to a 2022 report on the future of copper by S&P Global Market Intelligence, “The rapid, large-scale deployment of these technologies globally, EV fleets particularly, will generate a huge surge in copper demand.”
The firm is projecting that global refined copper demand will nearly double from 25 million MT in 2021 to about 49 million MT in 2035. Energy transition technologies are expected to account for nearly half of that demand growth. “The world has never produced anywhere close to this much copper in such a short time frame,” the firm notes in its report.
China is the world's largest consumer of the metal, and unsurprisingly its zero-COVID policy wreaked havoc on its economy and demand for copper. When China ended that policy in early 2023, it contributed to the boost seen in copper prices at the time. However, repercussions continue to be seen in the country, particularly in its real estate market.
China's property sector turmoil is in its third year, with housing starts down by more than 60 percent compared to pre-pandemic levels, as per the International Monetary Fund. However, analysts are starting to call for a bottom as China's aggressive efforts to energize the sector slowly right the ship — property investment in China fell by just 9 percent year-on-year in the first two months of 2024, compared with a 24 percent fall in December 2023, reported Reuters.
Property sector aside, copper demand out of China is likely to get a boost from the Chinese government's commitment to investing in its electrical infrastructure and green energy economy.
This push can be seen in ongoing structural reforms intended to secure the nation's place as a global economic powerhouse — these include the Made in China 2025 and China Standards 2035 initiatives. A part of the country's 14th five year plan, these policies target sectors that are heavily reliant on copper, such as 5G networks, robotics, electrical equipment, EVs, industrial internet, intercity transportation and rail systems, ultra-high-voltage power transmission and EV charging stations.
While the next five-year plan is still in the works, there are indications that measures to achieve carbon neutrality and increase renewable energy consumption are still very much a part of China's long-term economic objectives.
On the EV side, S&P Global projects that sales in China will reach 11.5 million units in 2024, up 22 percent from 2023. The country's photovoltaic market is also expected to remain strong in 2024.
The EV market is a growing global source of demand for copper outside China as well. As the Copper Alliance has noted, EVs can use three to four times as much copper as an internal combustion engine passenger car.
Automakers are making large investments in growing their EV production capacity, with some even looking to secure copper supply. Last year, McEwen Copper, a subsidiary of McEwen Mining (TSX:MUX,NYSE:MUX), received a US$155 million investment from Stellantis (NYSE:STLA), the fourth largest carmaker in the world.
Watch the full interview with Rob McEwen and Michael Meding above.
In a recent interview, Rob McEwen and Michael Meding discussed McEwen Copper's plans to release a feasibility study for the company's Argentina-based Los Azules copper project by the first quarter of 2025.
Companies struggling to keep copper supply coming
Of course, demand is just one side of the story for copper prices. For more than a decade, the world’s largest copper mines have struggled with steadily declining copper grades and a lack of new copper discoveries.
The alarm bells have been ringing for a few years now. In a mid-2020 report, S&P Global Market Intelligence metals and mining analyst Kevin Murphy painted a “dismal” picture for copper mine supply. He stated that out of the 224 copper deposits discovered between 1990 and 2019, a mere 16 were discovered in the last decade. These circumstances have led to questions about whether peak copper has arrived.
The COVID-19 pandemic further exacerbated challenges in the global copper supply chain as both mining and refining activities in several top copper-producing countries were slowed or halted altogether. The economic uncertainty also led miners to delay further investments in copper exploration and development — a complicating factor given that it can take more than 15 years to develop a newly discovered deposit into a producing mine.
Speaking at the Prospectors & Developers Association of Canada (PDAC) convention in March 2024, Murphy discussed another factor influencing new copper supply coming to market: inflation. He presented data highlighting how inflation has hamstrung the mining sector. In 2023, exploration budgets for all metals totaled US$12.8 billion, down 3 percent over the previous year.
Murphy also suggested that current economic trends are not only preventing projects from entering the pipeline, but also sandbagging current projects.
“Drilling has been in a downtrend as well, and it’s a bit worse than budgets in 2023, which indicates some inflation has hit the mark," he stated. "It’s a hard industry. The standard is about 3 percent, (and) at the moment we’re thinking that budgets are probably down 5 percent (in 2024)."
Supply instability out of the world’s largest copper-producing countries, Chile and Peru, has also weighed heavily on the market in the past few years. Together, they represent a combined 40 percent of global output.
In Chile, some of the world’s biggest copper miners, including BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and Anglo American (LSE:AAL,OTCQX:AAUKF), are facing royalty rate increases due to a tax reform bill. The country is also dealing with water woes as drought intensifies, causing tension for miners that rely on water to pump copper to the surface, and for the smelting and concentration processes.
To the north, in Peru, copper miners have been nervous about the sociopolitical unrest following the impeachment and jailing of former President Pedro Castillo in December 2022, including protests against the mining industry.
However, mining investment is still alive and well in Peru, especially when it comes to copper, and current President Dina Boluarte supports the industry. According to EY, "Of the new mining investments, US$38.5 billion is expected to be allocated to mining projects in Peru, with copper projects accounting for 72 (percent) of the total."
The supply side of the copper market is also being impacted by production challenges out of some of the world’s major producers. Facing sociopolitical pressure, First Quantum Minerals had to shut down its Cobre Panama mine in late 2023; it accounted for about 350,000 MT of annual global copper production.
Furthermore, Anglo American revised down its 2024 copper production target to a range of 730,000 to 790,000 MT of copper compared to the previous guidance of 1 million MT. This was due in large part to production shortfalls at its Los Bronces copper mine, which is expected to continue into 2025.
Bull market for copper or bust?
So when will copper go up? Together, strong demand and tight supply can create the right market environment for higher prices.
Copper’s strong rally in recent years has encouraged the idea that even higher copper prices are ahead, which could be a golden opportunity for junior copper companies in the long-term. At a Vancouver Resource Investment Conference copper panel, one speaker explained why this segment of the metals market has piqued his interest.
“I’m a copper bull, it’s a long-term performing asset, but 'quality' is what you have to add to the phrase, and I think copper is essential. As we all see the population growth, modernization, electrification, it’s going to be a key metal going forward,” said panelist Ivan Bebek, chairman of Torq Resources (TSXV:TORQ,OTCQX:TRBMF).
"Copper is the new oil," declared Jeff Currie, chief strategy officer of Energy Pathways at Carlyle, during his mid-May Bloomberg TV interview. The analyst is pointing to the explosion of AI technology, the energy transition and military spending as top drivers of copper demand that could push prices for the red metal up to US$15,000 per MT in the near future.
The Bank of America sees potential for copper prices to reach US$12,000 per MT for 2026. As demand is set to increase, the bank's analysts have said the severe lack of new copper projects is "finally starting to bite."
For its part, Citigroup (NYSE:C) is also projecting a copper price of US$12,000 by 2026 in its base-case scenario on higher demand for the red metal from the green energy revolution. The firm's analysts do see a more bullish case for US$15,000 copper over the next two to three years in the event of a strong economic recovery.
This is an updated version of an article first published by the Investing News Network in 2021.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Boosting North America's Copper Supply
Understanding these measures, as well as copper's supply and demand dynamic, is essential for anyone seeking to invest in this important metal.
Unstable, unsustainable supply chains
Copper prices rallied significantly over the past year, increasing from US$3.75 per pound in December 2023 to US$5.15 per pound around the beginning of May 2024.
What's more, copper prices on May 20 reached a record high of US$5.20 per pound, effectively freezing out Chinese spot trading for a day before closing at US$5.11. Analyst firm Morningstar has even referred to copper as the new oil.
A complex mixture of supply and demand issues drive the copper price today. There are several critical factors contributing to the dynamic price changes:
- Chinese economic recovery
- Supply chain disruptions (mine closures, poor production, labor issues)
- Inadequate production growth
- Rising demand from electric vehicles and green energy
- Falling demand from housing construction
While these factors can force short-term fluctuations in the copper price, most analysts agree that the long-term trend appears to be upwards.
In a May 23 Financial Times article, veteran hedge fund manager and commodities trader Pierre Arnurand said that what we've witnessed this year is only the beginning. He predicts copper prices could increase by as much as 288 percent over the next few years. This demand, says Arnurand, will be driven both by traditional applications, such as power infrastructure, and emerging ones, such as electric vehicles, wind farms, solar panels and the defense sector.
The digital economy will also play an incredibly important role in driving copper demand, particularly artificial intelligence.
A single server rack in an AI data center, for instance, will draw up to 60 kilowatts of power. In contrast, a traditional data center rack usually tops out at roughly 15 kilowatts. Powering and maintaining these facilities will require a massive volume of copper, increasing demand by up to 1.5 percent in the US alone.
Electric vehicles are even more copper hungry, with the International Energy Forum projecting that full electrification will require that copper production increase by as much as 55 percent.
According to the Energy Information Administration, sources of renewable energy like wind and solar use between 2.5 and seven times more copper per unit of power — copper demand from these two sources alone is projected to reach 600,000 MT by 2040.
Giant bank BMO Capital Markets projects copper demand could reach 40.4 million metric tons per year by 2030, with a compound annual growth of 3 percent.
In addition to falling short of projected demand, the current copper supply is heavily impacted by permitting issues, political risks, environmental impacts and development challenges, effectively slowing the pace at which new mines come online. These issues are also heavily impacting supply chains. Moreover, the increasing instability of supply from South America is already causing a shortage, one which analysts predict could last until at least 2030.
"In early 2024, data from underperforming copper mines from 2023 and the Panamanian government shutdown of the Cobre Panama Mine brought the ongoing copper supply issue front and center," explains Matthew Badiali, CEO of Quetzal Copper (TSXV:Q). "And while we saw a rapid rise in the copper price, it was hardly unprecedented in the commodity space. Historical context shows that copper could run much higher."
Boosting domestic copper production
Copper is part of both the Canadian federal government's C$4 billion Critical Minerals Strategy and the Inflation Reduction Act in the US. These strategies from both governments include multiple tax incentives for sustainability, mining and exploration. In Canada, for instance, provincial mining taxes and royalties related to mineral resource income are fully deductible on federal income tax.
The Canadian government also provides favorable capital cost allowances, allows exploration expenses to be claimed at a 100 percent deduction, and allows development expenses to be deducted at 30 percent. The government also offers a C$1.5 billion critical minerals infrastructure fund and investment tax credits of 30 percent for exploration activities.
In addition to these tax benefits, Canada offers the Mineral Exploration Tax Credit (METC), a 15 percent non-refundable tax credit that can be applied by investors against tax they would otherwise pay for a year and may be carried back three years and carried forward 20. In 2024, Deputy Prime Minister and Minister of Finance Chrystia Freeland announced that the current METC, set to expire on March 31, 2024, will instead be extended through 2025.
In the US, the Inflation Reduction Act provides a US$7,500 per vehicle consumer tax credit when purchasing electric vehicles from select suppliers. By 2026, 80 percent of all EV components will need to be extracted and processed either in the US or with one of the country's free trade partners. If at least half of a battery's components are manufactured or assembled in North America, there is also an additional US$3,750 tax credit.
Most notably, the legislation extends additional loan guarantees of up to US$40 billion to support critical minerals projects.
Together, these incentives are being leveraged by junior mining companies to fuel a new wave of exploration and development in highly prospective regions, such as BC and the Yukon. Already, there are many different copper projects at varying stages of development across North America.
Below, we've listed a few of the more promising investment possibilities.
Princeton
Located immediately north of the Copper Mountain mine, Quetzal Copper’s 11,500 hectare Princeton copper property houses multiple promising anomalies, including three drill-ready targets. Quetzal identified Bud South and Knob Hill as particularly high-priority targets — both have standout geophysical anomalies with supporting trenching and drilling data. Drilling is set to commence in 2024.
Quetzal has the option to earn 80 percent interest in the Princeton project, as well as the option to earn a 100 percent interest in the Big Kidd and DOT properties near Merritt, BC.
Black Butte
Notable for being one of the world's highest-grade undeveloped copper projects, Black Butte is 87 percent owned by Sandfire Resources (ASX:SFR) subsidiary Sandfire Resources America (TSXV:SFR,OTCQB:SRAFF). Sandfire intends to combine best-practice technology and modern mining techniques to develop Black Butte into an underground mine that has a minimal environmental impact and a low surface footprint. In February 2024, Sandfire scored a major win on the project when the Montana Supreme Court reversed a 2022 decision to invalidate its mining permit.
Murray Brook West
Owned and operated by Canadian Copper (CSE:CCI), Murray Brook West is an underexplored project located adjacent to the Murray Brook deposit. Due to the fact that it is situated between the Caribou and Restigouche mines, the property is highly prospective for copper. Future work at the property will involve comprehensive exploration and drill target development, including prospecting activities geared toward identifying potential mineralization.
Investor takeaway
Copper is arguably one of the most critical minerals to both electrification and the clean energy transition. Unfortunately, current copper supply is not keeping pace with demand. In order to change that, governments are working to incentivize further exploration and development with the goal of developing a stable domestic supply.
In North America, this represents a considerable investment opportunity — anyone interested in adding copper properties to their portfolio would do well to pay attention.
This INNSpired article is sponsored by Quetzal Copper (TSXV:Q). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Quetzal Copperin order to help investors learn more about the company. Quetzal Copperis a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Quetzal Copper and seek advice from a qualified investment advisor.
Potential Extension to 8 Mile Dam Gold Deposit Outlined by IP Survey at Gidji JV
- IP survey outlines potential extensions to 313koz 8 Mile Dam gold deposit
- Significant aircore EOH gold results above IP anomalies offset by faulting
- Drill testing at 8-Mile planned after maiden Bangemall Ni-Cu-Co-PGE drilling campaign
A recently completed IP survey at the 8-MileTarget (Figure 1) has extended the chargeability anomaly offset from the northern end of the 8 Mile Dam gold deposit and which underlies multiple significant aircore end of hole (EOH) gold results (Figure 2).
Miramar’s Executive Chairman, Mr Allan Kelly, said the new IP anomaly was shallower than expected.
“It appears the 8 Mile Dam deposit could continue for some distance to the north but has been offset by faulting, including at the tenement boundary,” he said.
“The fact that we have multiple aircore holes ending in elevated gold over the IP anomalies strengthens this theory,” he said.
“It’s also pleasing to see that the northern part of the IP anomaly is shallower than expected,” he added. “We look forward to drill testing this high priority target later in the year,” he said.
Figure 1. Collecting IP data at Miramar’s 8-Mile target.
Figure 2. IP anomalies and aircore EOH gold results in relation to the 8 Mile Dam gold deposit.
Background
According to publicly available data, the 8 Mile Dam gold deposit (7Mt @ 1.4g/t Au for 313,977oz1) comprises shallow supergene and deeper primary gold mineralisation hosted in:
- Quartz-carbonate-sulphide veins within hanging wall sediments; and
- A hydrothermally altered mafic unit cut by quartz veins with sphalerite, chalcopyrite and visible gold
Figure 3 shows a cross section through the deposit, approximately 60m south of the tenement boundary.
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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.
