- World Copper is an exploration and development company focused on developing key assets in Chile and Arizona into significant copper producing mines.
- The company is led by a strong management team with decades of experience in business finance, commercial mining and Chilean mining.
- The company’s year in review announcement showcased the continued growth of the company, including acquiring a new asset in Arizona and reclassifying its Chilean project as an oxide copper mine.
- The company’s projects are located in mining-friendly jurisdictions and have access to the necessary infrastructure needed to operate.
- World Copper’s Escalones project has tremendous potential to become Chile’s largest copper oxide project.
Solar and wind are expected to power half of the globe by 2050, but can supply keep up with this increasing demand? A copper boom is already in motion and could last for decades since decarbonization is expected to drive consumption. Goldman Sachs even famously declared “copper is the new oil,” not only because of its importance in renewable energy, but also because it believes the entire sector is unprepared to meet the needs of this future demand.
Nick Snowdon, a commodities strategist with Goldman Sachs Research took it a step further, when he said “the copper market is sleepwalking into a really sizable supply crunch akin to what we saw in the oil market back in the 2000s.”
And in many ways, he’s right. The discovery rate of copper deposits is considered “dismal” with only one major deposit having been discovered since 2015 and 15 in the previous decade. It’s clear we need more copper discoveries to make the transition to producers if we want to keep up with potential increases in demand. Copper producers will need to double the amount of global production just to keep up with a 30 percent penetration rate of EVs alone. So, where is this future copper production coming from?
World Copper (TSXV:WCU,OTCQX:WCUFF) has managed to secure the largest copper oxide asset, currently in exploration and development, in Chile through its Escalones project. Early estimates reveal that it could reach full production using heap leaching at a fraction of the cost when compared to other copper porphyries found throughout Chile and Latin America.
Why does this matter? Oxide copper is economical to extract when compared to copper porphyries. Most copper mines in Chile are copper porphyries, which typically require anywhere from US$1-2 billion to become fully developed mines since they use the costlier sulphide floatation process. Conversely, oxide copper can be mined with heap leaching, a method that could require a maximum of US$500 million, for a mine of Escalone’s size, to reach full production.