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Reconnaissance Drilling Delivers Grades up to 2.19% CuEq at Fortuna Project
Culpeo Minerals Limited (“Culpeo” or the “Company”) (ASX:CPO, OTCQB:CPORF) is pleased to report that reconnaissance drilling has intersected near-surface, high-grade copper mineralisation grading up to 2.19% CuEq at the Vaca Muerta and El Quillay North Prospects within its 80%-owned Fortuna Project (the Project) in Chile.
The prospect areas are part of a suite of promising exploration targets within an under- explored copper belt, which the Company is aggressively exploring.
HIGHLIGHTS
- Multiple zones of shallow, high-grade copper mineralisation intersected.
- Mineralisation hosted within broad zones of favourable host rocks.
- Highlighted downhole intersections include:
- 13.3m @ 0.59% CuEq from 20m;
- 4m @ 0.65% CuEq from 45m;
- 7m @ 0.67% CuEq from 55m, including 1m of 2.19% CuEq; and
- 2m @ 1.33% CuEq from 95m.
- Drilling ongoing at Lana Corina Project within >3km prospective corridor.
Culpeo Minerals’ Managing Director, Max Tuesley, commented:
“To drill and intersect multiple zones of shallow copper mineralisation on our first pass reconnaissance drilling program at Vaca Muerta is extremely positive and highlights the significant potential of the target area. This result coupled with the ongoing exploration success at El Quillay indicates that the Fortuna Project continues to provide potential for a major copper discovery with three distinct targets now identified that include: breccia hosted copper mineralisation at El Quillay and Vaca Muerta, porphyry copper and gold at La Florida and high- grade structurally controlled copper and gold at Piedra Dura.”
EL QUILLAY DRILLING PROGRAM
Assay results from the second hole drilled at El Quillay North returned 13.3m @ 0.59% CuEq from 20m downhole (Figure 1 and 2, Table 1 and Appendices C & D), confirming further shallow copper mineralisation within the target. Previous drillhole CMEQD002 returned 26m @ 0.81% CuEq from 29m including a high-grade zone of 4m of 1.87% CuEq from 51 to 55m1.
Figure 1: Plan view with results of CMEQD001 and CMEQD002
These drilling results highlight the significant widths of outcropping mineralisation that are hosted within the El Quillay Fault. This structure is known to have at least 3km of strike extent, the majority of which remains undrilled and with the discovery of mineralisation at El Quillay East2 and geophysical targets to the west6, the Company has initiated the next phase of field work. This will include detailed surface mapping and sampling, trenching in areas prior to drilling and ground truthing of targets identified from historic geophysical data.
Click here for the full ASX Release
This article includes content from Culpeo Minerals, 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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Culpeo Minerals
Overview
Culpeo Minerals (ASX:CPO,OTCQB:CPORF) is a copper-focused Australian exploration and development company with a portfolio of Chilean assets. The company’s projects are focused on Chile’s Coastal Cordillera Belt, where the Lana Corina, Culpeo’s flagship asset, presents significant opportunities for further exploration with high-grade copper and molybdenum mineralization. ’–– The recent acquisition of the Fortuna Project just 10 kilometres north of Lana Corina has increased the company's exploration tenure by 400 percent and has enabled the company to identify multiple out-cropping copper targets.
Chile leads the world in copper production by a wide margin, contributing 28 percent of global copper production. Comparatively Peru, in second place, contributes less than half as much at 11 percent. Earning the top spot is partially a result of Chile’s natural deposits, but the country’s significant output is a testament to its mining-friendly regulations.
Exploration work at Lana Corina, to date, has returned high-grade assay results for both copper and molybdenum. Assays have indicated a grade of over 1 percent copper equivalent, and up to 15,000 parts per million (ppm) molybdenum. The presence of molybdenum creates an additional future revenue source and increases the value of the project.
Molybdenum is roughly ten times the value of copper by weight as it is a strategic metal used in industries that require durable steels, such as catalytic converters on vehicles and various military applications.
Lana Corina contains higher-than-average molybdenum grades, as is typically seen when co-occurring with copper, further enhancing the asset's potential. The company has already completed 7,000 meters of drilling on the project, with additional opportunities to increase the footprint of known mineralization.
Much of the company’s portfolio is within the Coastal Cordillera Belt, which hosts medium-sized, high-grade copper deposits estimated at 50 to 100 million tonnes at 1 percent copper equivalent. The copper within this belt is typically higher grade than the prolific copper porphyry deposits in the Andes.
In August 2023, Culpeo acquired an 80 percent interest in the Fortuna Project, approximately 10 kilometers north of its existing Lana Corina Copper and Molybdenum Project in the highly prospective Coastal Belt of Chile. The company later secured an additional tenement package at Fortuna, increasing its land package to 4,500 hectares.
A management team with expertise throughout the mining industry leads the company toward fully exploring its promising portfolio and increasing shareholder value.
Company Highlights
- Culpeo Minerals is an Australian exploration and development company focusing on its copper assets in underexplored copper districts in Chile.
- Chile is the world’s number one copper producer and also contains the highest copper reserves.
- The company’s flagship Lana Corina asset is a recent copper discovery and diamond drilling results include 257 meters @ 1.10 percent copper equivalenrt (CuEq) (refer ASX announcement 11 May 2022).
- The company holds 80 percent interest in the Fortuna project, located 10 kilometers north of Lana Corina, where seven outcropping prospects have been identified. Recent drilling at El Quillay North returned a near surface intercept of 26 meters @ 0.81 percentCuEq (ASX announcement 17th January 2024) El Quillay North is hosted within the larger El Quillay Fault which is over 3 kilometers long and hosts significant potential to expand on the success of this recent drilling.
- A management team with decades of experience throughout the natural resources industry in particular South America, leads the company towards fully capitalizing on its prospective assets.
Key Projects
Lana Corina Copper-Molybdenum Project
The Lana Corina project is within the Coastal Cordillera region in Chile. This past-producing asset is highly prospective to become a world-class project as exploration continues. Culpeo has already completed its maiden drill campaign and is now moving towards its Phase 2 drill campaign.
Project Highlights:
- High-grade Results: The inaugural drill campaign at the Lana Corina project indicates high-grade copper and molybdenum. The company is now moving towards its Phase 2 drill campaign. Assays from the maiden campaign include:
- ○257 meters @ 1.10 percent copper equivalent (CuEq) in CMLCD002 from 170 meters
- 173 meters @ 1.09 percent CuEq in CMLCD003 from 313 meters
- 169 meters @ 1.21 percent CuEq in CMLCD010 from 239 meters
- 104 meters @ 0.81 percent CuEq in CMLCD001 from 155 meters
- 81 meters @ 1.16 percent CuEq in CMLCD005 from 302 meters
- 72 meters @ 0.91 percent CuEq in CMLCD013 from 352 meters
- Historic Production: The project has historically produced 1 million tonnes of 1.5 percent to 2.5 percent copper. This significant production indicates what’s possible as Culpeo further explores the assets.
- Targets for Future Exploration: The company’s exploration campaigns and historical data have identified 18 additional regional targets for follow-up exploration and potential drilling.
Fortuna Project
Spanning 4,025 hectares, the Fortuna Project tenements are located 10 kilometers north of Lana Corina consisting of seven additional groups of prospects: La Florida, El Quillay North, El Quillay Central, Elquillay South, Vaca Muerta, Piedra Dura and Lucero. Extensive outcropping copper mineralisation and historic mining operations are present throughout the project area.
Historic channel sampling at drill-ready Vaca Muerta returned with 150 meters @ 1.31 percent copper equivalent (CuEq); 102 meters @ 1.25 percent CuEq; and 173 meters @ 0.86 percent CuEq. Fortuna also has four high-priority outcropping targets: Vaca Muerta, Piedra Dura, La Florida and El Quillay. Mine records show approximately 200,000 tonnes @ 2 percent copper extracted historically.
Management Team
Max Tuesley - Managing Director
Max Tuesley is a geologist with 30 years of experience in base metal/gold exploration and mining. He has a proven track record of successful project and team management, both within Australia and Internationally, working on projects in Mongolia, Sudan, Laos, and the Philippines. Tuesley spent seven years with Xstrata in senior management roles with a focus on its Australian Copper Operations, including the Ernest Henry IOCG project.
He holds a Bachelor of Science from The Queensland University of Technology and an Honors Degree in economic geology from James Cook University. He is a member of the AusIMM.
Geoff McNamara - Non-executive Chairman
Geoff McNamara has 30 years of international resource sector experience as a geologist, project manager, and fund manager. He previously worked in private equity (FUM US$800 million) and was director of Societe General’s mining finance team in New York. Operational roles included project manager, senior mine geologist, and mine geologist for Ivanhoe Mines, Lion Ore International, and Western Mining Corporation. McNamara is the co-founder of Tesoro Gold, where he also currently sits as non-executive director. Tesoro Gold discovered the El Zorro Gold Project in Chile.
Zeffron Reeves - Non-executive Director
Zeffron Reeves is a geologist with over 20 years of experience in the resource sector working on projects from greenfields exploration, discovery, definition and feasibility, construction, and production to closure.
Reeves is currently co-founder and managing director of Tesoro Resources, which recently discovered the highly prospective El Zorro gold project in Chile. He was also managing director of ASX-listed Kopore Metals (previously, Metallum), which also had some development and operational projects in Chile. He has held senior management positions with Cleveland Mining and Ashburton Minerals, developing projects in Brazil.
Reeves has a Bachelor of Applied Geology (Honors), and a Master of Business Administration from Curtin University, and is a member of the Australia Institute of Geoscientists.
Paul Schmiede - Non-executive Director
Paul Schmiede is a mining engineer with over 25 years experience in mining, exploration and business and corporate development. He has had direct exposure to gold and base metal commodities in a range of jurisdictions, including Australia, Burkina Faso and the Democratic Republic of Congo (DRC). He is currently vice-president of corporate development for TSX-V-listed Sarama Resources, which has development-stage gold assets in Burkina Faso. Prior to that, he was vice-president of operations and project development at Moto Goldmines, where he managed the pre-feasibility, bankable and definitive feasibility study for the more-than-22-million-ounce DRC-based Moto Gold Project (now Kibali Gold). Before joining Moto Goldmines, he held senior operational and management positions with Gold Fields Ltd and WMC Resources Ltd where he was responsible for underground and open pit operations as well as project development and planning.
Schmiede holds a first-class mine managers certificate (Western Australia), a Bachelor of Engineering (Mining) degree, and is a fellow of the Australasian Institute of Mining and Metallurgy.
Sergio Uribe - Country Manager
Sergio Uribe is an administrative, management and development professional with experience in Chile. He has worked on numerous resource projects from greenfield exploration, discovery, production, closure, retreatment, and tailings reclamation. Part of the development team with Fortescue Metals Group during the development of its Pilbara mining operations, he has 10 years of resource sector experience. Uribe has represented numerous foreign companies investing in resource projects in Chile and was the commercial manager of Metallum Chile, where he was involved in the acquisition and development of their operation in Chile. Before this, he was general manager of Acorn Mining Chile and country manager for Cleveland Mining Chile.
Uribe has a business management degree from Universidad del Desarrollo and is a member of the civil police and a military reserve officer.
True North Copper Commences Mining at Wallace North, QLD
True North Copper Limited (ASX: TNC) (TNC or the Company) is pleased to announce mining operations at its Wallace North deposit in northern Queensland have commenced, with clearing activities and blast hole drilling underway.
HIGHLIGHTS
- Mining activities at True North Copper’s Wallace North deposit, part of its Cloncurry Copper Project (CCP) in Queensland, have commenced with clearing and blast hole drilling underway
- TNC is on track to become Australia’s next copper producer and critical metals supplier via its restart of CCP
- CCP is estimated to generate free cash flow of ~$200 million at current copper spot prices over its initial 4.6-year mine life1
- TNC has binding offtake and toll milling agreements with Glencore International AG (Glencore)2 for 100% of copper concentrate from CCP and for toll milling of up to 1Mt of ore per year
- Recent executive appointments have bolstered TNC’s executive team ahead of operations restart.
Wallace North is part of True North Copper’s Cloncurry Copper Project (CCP) and one of four open-pit deposits making up CCP. Wallace North has an Ore Reserve totalling 0.7Mt (Probable) grading 1.01% Cu and 0.46g/t Au for 6.8kt Cu and 10.0koz Au3.
TNC will operate dry hire equipment at Wallace North, which its own personnel will operate, with most mining equipment already on site. Dewatering of the pit area is well advanced, with all blast hole drilling expected to be in dry holes.
A recruitment process for the operations team is close to finalisation, and a supportive technical team is in place ready for mining to start.
True North Copper’s newly appointed Managing Director Bevan Jones said: “We have commenced mining operations at Wallace North, which will allow our CCP to restart copper production. This has been our major goal since listing on the ASX. I thank our team for their efforts in moving towards this goal to allow TNC to become Australia’s next copper and critical metals producer.
“CCP is estimated to deliver free cash flow of about $200 million at current prices over its 4.6-year initial mine life, based on existing JORC Reserves. Cash flow from mining will be used to explore further opportunities to build this inventory.”
Mining ramp-up will initially build ore stockpiles, with road haulage expected to start within a few weeks of startup. Oxide ore will be transported by road train to TNC’s Cloncurry Operations Hub's (COH) heap leach. Sulphide ore will be transported to a nearby concentrator for toll treatment under TNC's toll-milling agreement with Glencore International AG.
The COH is 2km from the town of Cloncurry in northern Queensland and will service all four of TNC’s deposits with essential infrastructure, technical systems and support. 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.
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.
Lundin Mining Announces Updated Share Capital and Voting Rights
News Provided by Canada Newswire via QuoteMedia
Forum Announces Closing of Private Placement, Stock Option Grant and Liquidity Services Agreement
Forum Energy Metals Corp. (TSXV: FMC) (OTCQB: FDCFF) ("Forum" or the "Company") is pleased to announce that, further to its news releases of June 3 and June 24, 2024, it has closed its non-brokered private placement and has issued 7,084,020 units (the "Units") at a price of $0.135 per Unit for gross proceeds of $956,343 (the "Offering"). Each Unit consists of one common share and one-half of one share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one common share (each a "Warrant Share") at a price of $0.20 per Warrant Share for a period of 24 months expiring June 26, 2026.
In connection with the Offering, the Company paid cash commissions totalling $51,141 equal to 6% of certain of the gross proceeds raised under the Offering. The Company also issued 378,819 finder warrants of the Company. Each finder warrant shall entitle the holder thereof to purchase one common share of the Company at a price of $0.20 expiring June 26, 2026.
All securities issued are subject to a four month hold period expiring October 27, 2024. The net proceeds of the Offering will be used for general working capital.
Insiders of the Company participated in the Offering for 780,000 Units or $105,300, and such Units issued to insiders are subject to a four month hold period pursuant to applicable policies of the TSX Venture Exchange. The issuance of Units to insiders is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Company's market capitalization.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements. "United States" and "U.S. person" have the respective meanings assigned in Regulation S under the U.S Securities Act.
Stock Option Grant
The Company also announces that in accordance with the Company's stock option plan, it has granted to certain of its directors, officers, employees and consultants incentive stock options to purchase up to an aggregate of 3,200,000 common shares exercisable on or before June 28, 2029 at a price of $0.135 per share.
Marketing Agreement
The Company has entered into an advisory agreement (the "Agreement") with DS Market Solutions Inc. ("DS Market Solutions"), an equity trading advisory and liquidity provider located in Mississauga, Ontario, whereby DS Market Solutions has agreed to provide the Company with liquidity services with the object of enhancing market depth and increasing liquidity of the Company's common shares, as further described in the Agreement, for a month-to-month term in exchange for remuneration of $5,000 per month, plus applicable taxes.
About Forum Energy Metals
Forum Energy Metals Corp. (TSXV: FMC) (OTCQB: FDCFF) is focused on the discovery of high-grade unconformity-related uranium deposits in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut. For further information: https://www.forumenergymetals.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Richard J. Mazur, P.Geo.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Rick Mazur, P.Geo., President & CEO
mazur@forumenergymetals.com
Tel: 604-630-1585
Not for distribution to United States Newswire Services or for dissemination in the United States
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/214909
News Provided by Newsfile via QuoteMedia
A Look at Historical Copper Prices (Updated 2024)
Copper has had a volatile few years; however, amid various ups and downs, prices for the red metal hit an all-time high on May 20, 2024, trading at US$5.20 per pound on the COMEX.
Interestingly, by looking backwards it’s easy to see that this spike was an expected feature of the long-term picture for copper prices. The red metal has rebounded after a downtrend from about 2011 to 2015, and over the last few decades prices have increased even more dramatically.
Case in point — at the time of its new high in May 2024, the copper price has increased over 500 percent since January 2000. Although this impressive major increase doesn't account for inflation, it's still a sizeable gain. Let's take a deeper dive into copper prices going back even further.
What factors have impacted copper prices historically?
So what’s the best way to view historical copper prices? According to Stefan Ioannou of Cormark Securities, it’s most pragmatic to look at historical copper prices since the 1970s or 1980s.
That’s because of the rise of modern heap-leach technology. Leaching has long been used in mining operations, but the method in its modern form didn’t start gaining popularity until around 1980.
“That fundamentally changed the way we mine copper,” Ioannou explained. “Up until then, a lot of copper mining was for the most part focused on sulfide mineralization producing a copper concentrate that you’d send to a smelter. With heap-leach technology, all of a sudden the giant porphyries (and) the oxidized caps associated with large porphyries down in South America became viable.”
That sounds like good news for increasing copper supply, but as Ioannou noted, large-scale deposits are often low grade, meaning that they’re more costly to mine despite relatively cheap heap-leaching methods.
While Ioannou said supply and demand dynamics are the main driver for prices, grade and production costs are factors as well. Demand for copper keeps growing, and he suggested that since “the low-hanging fruit has been mined,” miners must increasingly go after more difficult, large, low-grade and costly deposits.
“The price of copper dictates how low you can go on the grade,” he said. “Back pre-1970s, I’m guessing a lot of copper was coming from a lot higher-grade mines … as we’ve been mining more and more of these large-scale deposits that are low grade, the cost on a per-pound basis has gone up.”
What else has driven historical copper prices?
Interestingly, some take another view on the historical performance of the copper price.
Richard Schodde, managing director at MinEx Consulting, gave a presentation on the subject back in 2010 that looks at a longer timeframe — 110 years, to be exact.
On that scale, historical copper prices have dropped significantly since the 1910s. In 2015, Schodde told the Investing News Network by email that real copper prices had dropped about 50 percent since 1910, and that production costs have also fallen due to economies of scale and advances in mining and processing technologies.
That might not sound like good news for copper, but Schodde viewed the drop as good overall. He thinks the industry will continue to innovate in order to exploit lower-grade deposits and meet growing global demand.
Plus, it’s worth considering where you get in. Looking at the graph below from Schodde, it wouldn’t be ideal if you invested in copper back in the 1910s. It all comes down to strategy, timing and, frankly, a bit of luck.
Copper price vs. average operating costs, 1900 to 2009.
Chart via MinEx Consulting.
How does supply and demand shape copper prices?
Many supply and demand factors have contributed to the movement of historical copper prices over the years. For example, a report from the US Geological Survey notes that the Vietnam War meant strong demand in the mid-1960s and early 1970s, leading to price controls to limit domestic copper prices.
Much later, in July 1998, prices “had fallen to their lowest level since the Great Depression,” while an earlier production boom in the 1980s led prices to fall on the back of resulting oversupply.
Historical copper prices from July 1988 to June 2024.
Global demand for copper is currently dominated by China, and those following the resource market will no doubt remember a large spike in Chinese demand that sent prices for copper and other commodities soaring in recent years. China is still a strong copper demand driver, with the most recent data showing that it was the largest consumer of refined copper at an estimated 6.75 million metric tons in 2023.
Macroeconomic volatility has impacted the Asian nation’s copper demand, and it’s tough to say what’s going to happen moving forward. Analysts have noted that the country’s infrastructure and property sectors, both of which require large amounts of copper and other commodities, are also showing signs of weakness.
On the supply side, a report from the World Bureau of Metal Statistics showed that as of April 2024, the global refined copper supply shortage came in at 120,900 MT, due in large part to declining copper mine production from Anglo American (LSE:AAL,OTCQX:AAUKF). The closure of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama mine and declining production at Chile’s Chuquicamata mine are also impacting copper mine supply at present.
What’s next for copper?
In the short term, copper price volatility is still in the cards due to market uncertainties, including prolonged supply chain challenges, sticky inflation and the threat of recession in the global economy.
However, some analysts are quite optimistic looking longer term. Goldman Sachs (NYSE:GS) has expressed confidence that copper’s long-term fundamentals remain strong with a clear structural bull story. The firm sees copper prices reaching US$15,000 per metric ton (or US$6.80 per pound) by 2025.
This is an updated version of an article originally published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for more 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.
How to Invest in Copper (Updated 2024)
Copper has long been held up as a key indicator of global economic health, and as the world electrifies it's taking on a new shine, making it a potentially compelling choice for green-minded investors.
Often called Dr. Copper, copper is one of the most followed base metals, and its high ductility and electrical conductivity make it the third most consumed industrial metal, behind iron ore and aluminum, as per the US Geological Survey.
Given its attributes, copper is often used for electrical purposes such as power transmission and generation. And like its base metal sibling nickel, it has a major role in the electric vehicle revolution, with experts at S&P Global expecting consumption of copper to jump 20 percent by 2035 due to demand from the green energy market.
Read on to get an idea of the supply and demand dynamics that move the copper price, as well as how to invest.
What factors impact copper supply and demand?
Copper supply is prone to disruptions in various capacities: environmental events, worker strikes, economic fluctuations and so on. For that reason, it's important to keep an eye on what’s happening in the world’s major copper producers, such as Chile, Peru and China. Global events like the COVID-19 pandemic can also play a role in market dynamics.
Indeed, copper had a breakout year in 2021. Copper futures on the London Metal Exchange reached what was then a new peak of over US$10,700 per metric ton on the back of higher demand projections.
In May 2022, the red metal repeated that performance to reach another fresh high of US$10,845, propelled upward by expectations of strong demand from electric vehicle and renewable energy applications. The metal's price on the COMEX also reached new highs on a per pound basis in 2021 and 2022.
Copper supply and demand are also being affected by Russia's war in Ukraine, which has contributed to higher energy prices and other inflationary pressures. Russia is one of the top copper-producing countries.
“This had the twin effect of slowing both demand and supply growth, which helped to keep the copper market relatively tight,” Dan Smith, head of research at Amalgamated Metal Trading, told the Investing News Network at the end of 2022. “We have seen some big swings in prices this year, but with so much uncertainty about the war in Ukraine and the potential for a ban on Russian metal, this was to be expected.”
China, another top copper-producing country, is also the world's largest consumer of the red metal, and fluctuations in the strength of its economy often have major implications for copper prices. This was the story for 2023 as prices declined to as low as US$7,812 in October alongside the worsening crisis in China’s real estate market. The industry represents a whopping 30 percent of the country’s GDP and is a primary consumer of the red metal.
Although China’s economic woes are persisting in 2024, global copper mine supply is tightening at the same time as copper demand from the energy transition rises. The closure of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama mine, guidance cuts from Anglo American (LSE:AAL,OTCQX:AAUKF) and declining production at Chile’s Chuquicamata mine are exacerbating an already tenuous supply situation.
These complex dynamics led the copper price to climb by nearly 35 percent from the start of this year to reach its highest recorded COMEX price of US$5.20 per pound, or US$11,464, on May 20. Copper also broke its futures high that day, trading at a price of US$11,104.50 on the London Metal Exchange.
Looking forward, the consensus among experts is that although copper may face short-term headwinds, its long-term future looks solid. Some market watchers have big-picture concerns for copper output, predicting that prices for the red metal will remain high well into the future as supply struggles to keep up with demand.
What are the ways to invest in copper?
Exchange-traded funds (ETFs), futures and mining stocks are common methods of investing in copper.
For investors looking to invest in physical copper, purchasing copper is possible, and copper is sold in rounds and bars of various weights. However, due to its relatively cheap price per pound compared to other common investment metals, a decent physical copper position would take up a lot space, making physical copper an inefficient investment option.
In the case of a copper ETF, investors are able to access the copper market indirectly by looking at funds focused on copper or copper-mining companies. ETFs are seen as a lower-risk way to invest.
Meanwhile, copper futures contracts give investors a chance to take part in the market in another fashion — according to InvestingAnswers, “(Futures) allow buyers and sellers to ‘lock in’ the price at which they buy or sell an asset in the future.” This can create a safety net for investors while still providing copper price exposure; however, on the flip side, the leverage that futures trading provides can make it a risky endeavor best left to professionals.
Lastly, there are copper stocks, which can be risky, but are one of the most direct routes to the market. Investors can buy shares of firms involved in copper mining, development and exploration, and ride the ebb and flow of both these companies’ performance and the copper price. Typically, more advanced companies are less risky compared to juniors.
Some of the largest copper-mining companies are Freeport-McMoRan (NYSE:FCX), Glencore (LSE:GLEN,OTC Pink:GLCNF), BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and Rio Tinto (LSE:RIO,NYSE:RIO,ASX:RIO). For other ideas on copper stocks, check out our lists of the top-performing companies listed on the TSX, TSXV and ASX.
This is an updated version of an article first published by the Investing News Network in 2020.
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Vizsla Copper Begins Drilling at Woodjam Copper-Gold Property
Vizsla Copper Corp. (TSXV: VCU) (OTCQB: VCUFF) (FRANKFURT: 97E0) ("Vizsla Copper" or the "Company") is pleased to announce the start of the summer core drilling program at the Woodjam copper-gold project (the "Woodjam Project" or "Woodjam") in south-central BC (Figure 1).
HIGHLIGHTS- The Targets: Core drilling will evaluate the potential for: (1) extensions of high-grade gold mineralization at the Deerhorn deposit, (2) extensions of gold-rich copper mineralization at the Three Firs zone, and (3) extensions of higher gold mineralization at the Southeast deposit.
- The Program: Approximately 3,600m of core drilling in 9 drill holes is planned, some of which will be on the contiguous Redgold property.
"With our financing freshly closed, I'm excited about the start of drilling at Woodjam," commented Craig Parry, Executive Chairman. "Strong copper prices are expected to continue over the long term and Vizsla Copper is executing on its strategy of acquiring undervalued copper assets and completing selective, high-impact exploration programs on our best targets."
"Well mineralized and highly prospective for exploration success, Woodjam remains our highest priority project," commented Steve Blower, Vice President of Exploration. "I'm looking forward to evaluating all of the target areas, especially Three Firs, as this is our first opportunity to expand the wide-open mineralization there."
The ProgramHigh priority targets will be evaluated in 3 areas – the Deerhorn deposit, the Three Firs zone and the Southeast deposit (Figure 2). At the Deerhorn copper-gold deposit, at least two drill holes will evaluate the potential to expand the higher-grade southern gold-rich portion of the deposit (Figure 3). At the copper-gold Three Firs zone, one drill hole will evaluate potential extensions to the southwest of the zone and another will evaluate a large circular magnetic anomaly northwest of the zone (Figure 4). Finally, drilling at the large Southeast copper deposit will attempt to expand the area of higher-grade gold mineralization along the south end of the deposit (Figure 5).
Approximately 3,600m of drilling is planned in 9 drill holes – some of which will be completed on the contiguous Redgold property. More information on the Redgold portion of the drilling program will follow as targets are finalized. The program will take approximately 6 to 8 weeks to complete. Samples will be submitted for assay regularly through the program, and analytical results will be disclosed in due course.
Figure 2 – Target Area Locations
Figure 3 – Deerhorn Deposit Target Area (Grade Shells at 810masl)
Figure 4 – Three Firs Zone Target Area (Grade Shells at 800masl)
Figure 5 – Southeast Deposit Target Area (Grade Shells at 790masl)
About Vizsla Copper
Vizsla Copper is a Cu-Au-Mo focused mineral exploration and development company headquartered in Vancouver, Canada. The Company is primarily focused on its flagship Woodjam project, located within the prolific Quesnel Terrane, 55 kilometers east of the community of Williams Lake, British Columbia. It has three additional copper properties: Poplar, Copperview, and Redgold, all well situated amongst significant infrastructure in British Columbia. The Company's growth strategy is focused on the exploration and development of its copper properties within its portfolio in addition to value accretive acquisitions. Vizsla Copper's vision is to be a responsible copper explorer and developer in the stable mining jurisdiction of British Columbia, Canada and it is committed to socially responsible exploration and development, working safely, ethically and with integrity.
Vizsla Copper is a spin-out of Vizsla Silver (TSX.V: VZLA) (NYSE: VZLA) and is backed by Inventa Capital Corp., a premier investment group founded in 2017 with the goal of discovering and funding opportunities in the resource sector. Additional information about the Company is available on SEDAR+ (www.sedarplus.ca) and the Company's website (www.vizslacopper.com).
Qualified Person
The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by Ian Borg, P.Geo., Senior Geologist for Vizsla Copper. Mr. Borg is a Qualified Person as defined under the terms of National Instrument 43-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, planned exploration activities. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Forward-looking statements in this news release include, among others, statements relating to: obtaining required regulator approvals for the Copperview Acquisition and the RG Copper Acquisition; satisfying the requirements of the Underlying Option Agreement; the exploration and development of the Woodjam Project, Redgold Project and Copperview Project; and the Company's growth and business strategies.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, the limited operating history of the Company, the influence of a large shareholder, aboriginal title and consultation issues, reliance on key management and other personnel, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, availability of third party contractors, availability of equipment and supplies, failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
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