Copper Co. Amends Resource for Zonia Copper-Oxide Deposit in Ariz.
World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQX; 7LY0:FRA) announces it has amended its recently released mineral resource estimate (MRE) for its Zonia copper-oxide deposit in Arizona. Find out why one analyst thinks the stock is "irresistibly attractive."
World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQX; 7LY0:FRA) announced it has amended its recently released mineral resource estimate (MRE) for its Zonia copper-oxide deposit in Arizona.
The new amended copy of its National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report contains indicated resources of 112.2 million short tons grading 0.297% total copper containing 668 million pounds of copper and inferred resources of 62.9 million short tons grading 0.255% total copper containing 320 million pounds of copper.
"These numbers differ slightly from those in the Oct. 25, 2024, news release, with nominal increases (3%) to tonnage and total contained copper, and a small decrease (0.5%) in grade for only the indicated class," World Copper said in a release on November 12.
When the MRE was first released in September, World Copper noted it was a "significant expansion" of an estimate done in 2023 and was the result of using a higher copper price and refined moralization models and modeling methods.
"This new report greatly de-risks the project by expanding the indicated resource classification of the deposit," Chief Executive Officer Gord Neal said at the time. "This new resource definition could significantly extend the life of mine of the project. It also has the potential to substantially increase the throughput of future operations and boost the projected annual production profile. Combined with the resource expansion potential of the Zonia North properties, the project is now exhibiting the potential to become a large-scale copper producer."
On October 24, Technical Analyst Clive Maund wrote that the company's stock was looking "irresistibly attractive here as the setup is 'textbook bullish."
"The price has broken out of a fine double bottom on strong volume and a tight bull flag, forming on much-reduced volume that promises another upleg soon," Maund wrote. "Anyone holding should stay long, and the company is rated an immediate Strong Buy."
Additional Drill Holes Will Be Required
Both reports were completed by Sue Bird of Moose Mountain Technical Services, an independent qualified person as defined by NI 43-101. In it, she recommended that the company "initiate a drilling campaign designed to support the completion of a Preliminary Feasibility Study (PFS)."
"The drilling program will necessarily include both infill and exploration drilling with the intent of expanding and better defining known mineralization, and it should include infill drilling sufficient to refine the geological characterization of the deposit (deposit model)," the report continued. "A carefully designed drilling program will allow for collection of the variety of data needed to support the PFS, including samples for both geotechnical and metallurgical test work."
Additional drill holes may be required to allow a better sample representation of the deposit to be developed, the report said.
"These samples would provide a higher degree of confidence for copper extraction across the entire deposit," the report noted. "Additional samples should be collected towards the upper northeast portion of the mineral resource pit shell as past studies have not included drilling from this area."
According to the report, at least 12 operators have completed about 172,000 feet of drilling of and sampling of various types on the project since 1910, but "not all of the drill data could be verified."
A Second Porphyry Center
The next step and largest potential for a new discovery at Zonia is that area to the north-northeast of the current open pit and resource, where a 2.5 kilometer- by 1.5 kilometer-coincident copper-molybdenum-manganese geochemical anomaly has been identified, the company said.
"It is significant that the anomaly is open to the north where outcrops are covered by post-mineral cover," the company noted. "This large geochemical footprint is interpreted to represent a second porphyry center. Nearby historical drill holes indicate the area is deeply weathered and copper-oxide mineralization is present."
The Zonia Norte porphyry target was fully permitted by a previous operator and will be drill-ready when the permitting process is restarted, World Copper said. The company plans to drill 18 holes over 5,000 meters, targeting copper oxide mineralization, and further mapping over the target and adjacent areas is planned.
The Catalyst: Copper Down, But Not Out
According to Credendo, demand for copper could double by 2035, as electric vehicles (EVs) use more than three times as much of it as gas-burning cars.
There has been some volatility in the market, as December copper came under renewed pressure on Monday, according to Mining.com, falling some 1.7% to under US$4.23 per pound (US$9,320 per tonne) in afternoon trading on the CME in Chicago, bringing losses since the Trump victory in the U.S. election to close to 6%.
A post on NAI 500 reported that "due to the potential increase in U.S. trade tariffs following Trump's administration and weaker-than-expected stimulus measures from China, there is a high likelihood that demand for copper will be under pressure."
The website said Citigroup has lowered its short-term copper price forecast by 11% as a consequence.
Streetwise Ownership Overview*
World Copper Ltd. (WCU:TSX.V;WCUFF:OTCQX; 7LY0:FRA)
*Share Structureas of 10/28/2024Source: Thomson Reuters & World Copper Ltd.But experts agree this will only be temporary. In a piece on Mining.com, Ahead of the Herd's Rick Mills wrote, "Simply put, the road to reaching net zero begins and ends with copper. All infrastructure built to support renewable energy uses large amounts of copper, as the metal is a highly efficient conductor of electricity and heat."
S&P Global Market Intelligence has project that annual global copper demand will nearly double to 50 million tonnes by 2035, he noted.
Ownership and Share Structure
Wealth Minerals Ltd. (WML:TSX.V; WMLLF:OTCQB) owns about 9.61% of World Copper, according to Reuters.
About 18% is owned by management and insiders, including Director Robert Kopple with 14.56% and Board Chairman Hendrik van Alphen with 0.99%. The CEO Neal holds about 0.86%, Reuters said. The rest is retail.
As for share structure, the company has 213.26 million outstanding shares and 127.09 million free-float traded shares, according to Reuters.
It has a market cap of CA$15.99 million. Its 52-week trading range is CA$0.06-0.35 per share.
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Important Disclosures:
World Copper Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of World Copper Ltd.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.