Copper Co. Releases First Drilling Results From Peru Project
Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB) announced assays from its inaugural drilling program at its wholly-owned Sombrero Project in Peru. One analyst said success at the project could be very lucrative for the company and investors.
Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB) last month announced results from the first five holes from its inaugural drilling program at its wholly-owned Sombrero Project in Peru where it has identified six significant targets within the Ccascabamba target area.
Small sections of the first two targets were drilled, finding 19 meters of 0.50% copper (Cu) and 27 meters of 0.21% Cu. Assay results for holes 6 through 8 are still pending.
"We are well-financed and in the early stages of our budgeted 30-hole core drill program (49 holes permitted), with eight holes completed and assays back from our first five holes," Chairman and Chief Executive Officer Ivan Bebek said in a release. "We are highly encouraged with the early indications of the mineralized porphyry/skarn system in hole 4 on the edge of our Hojota target vectoring toward stronger mineralization, and the technical team (is) advancing at a great pace."
The company also announced it is expanding its drill permit applications to allow for about 200 holes and capacity to operate additional drilling rigs.
It also announced that the company has commenced trading its common shares on the OTCQB under the symbol "CPPMF."
"This key milestone is expected to enhance trading liquidity and broaden the Company's exposure to a larger pool of U.S. investors," Coppernico said.
First Results 'Already Proven Invaluable'
The company said the objective of this early-stage target testing is to "refine the three-dimensional understanding of the local geology and correlate it with geophysical and geochemical data."
More drilling is required, it said, but the first five holes have "already proven invaluable."
Ccascabamba skarn-porphyry system at Sombrero would be "a billion-dollar-plus idea if it works, if the company has drill success and is able to prove up even just half the resource of this single target," Steven Therrien, senior mining analyst at 3L Capital, wrote in a research report.The results included holes 4 and 5 from the Hojota Target. Hole 4 included 19.15 meters of 0.50% Cu from 91.95 meters depth and 27.45 meters of 0.21% Cu from 5.75 meters depth, Coppernico said.
The results showed a "strong link between elevated chargeability and increased sulfide content, and broad intervals with anomalous copper and zinc (Zn) values, representing important validation of the scale and potential of the target," the company said.
Hole 5 showed widespread development of skarn alteration across the Ccascabamba target area, according to Coppernico.
Holes 1-3 were drilled on the Corrales Target. They showed "garnet skarn alteration at surface, accompanied by elevated Cu, Zn and manganese (Mn), indicating a vector to Cu mineralization to the north, west and east."
The holes showed marble and recrystallized limestone zones below 50 to 100 meters depth, and brittle fault zones with hematite and magnetite mineralization with elevated Cu values, the company said.
A 'Billion-Dollar-Plus' Idea?
British Columbia-based Coppernico was spun out of Auryn Resources in 2020 and is exploring for large-scale, high-grade copper and copper-gold projects in the Americas, the company said.
Ccascabamba skarn-porphyry system at Sombrero would be "a billion-dollar-plus idea if it works, if the company has drill success and is able to prove up even just half the resource of this single target," Steven Therrien, senior mining analyst at 3L Capital, wrote in a research report.
The property sits on the western extension of one of Peru's most prolific copper belts, Andahuaylas-Yauri.
"The Sombrero project represents a unique opportunity to extend a world-class belt and hosts the potential for multiple major discoveries," said Tim Kingsley, Coppernico's vice president of exploration.
While advancing Sombrero, management continues to review additional projects in the Americas, aiming to expand its portfolio and thereby offer more value to shareholders and reduce risk, the company said.
The Catalyst: Conducting the Energy Transition
Peru, as a mining jurisdiction, is the world's third leading copper producer, according to Red Cloud Research. The country is on track to invest more in mining this year than the government estimated, and the total could reach US$5.3 billion, according to Peru's largest commercial bank, Banco de Cr?dito del Per?.
"We are seeing the pace of permit approval increase and major permits being issued, such as the February 2024 Modification of the Environmental Impact Assessment approval that allows for a US$2 billion Antamina copper mine expansion, a positive sign for mining and exploration in the country," Therrien added.
The reason for all the activity is the red metal's importance to the energy transition. 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%.
The metal spiked at the end of September on optimism about a Chinese economic stimulus plan but is now down nearly 12% since then.
Streetwise Ownership Overview*
Coppernico Metals Inc. (COPR:TSX; CPPMF:US Listing)
*Share Structureas of 11/15/2024Source: Coppernico Metals Inc.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 projected that annual global copper demand will nearly double to 50 million tonnes by 2035, he noted.
Ownership and Share Structure
Regarding ownership of Coppernico Metals, according to company estimates, strategic investors, including insiders, own 55.46%. Specifically, CEO Bebek holds 3.45%, management and directors have 1.6%, and close associates own 34.23%. Teck Resources (TECK:NYSE) owns 9.9% and Newmont Corp. (NEM:NYSE), 6.28%.
Institutional investors hold 17.75%, and retail investors account for 26.79%.
With respect to its capital structure, Coppernico has 177.3 million shares outstanding, 7.9 million options outstanding, and 36.1 million warrants outstanding.
The company's market cap is about CA$65.6 million. It has traded in a range of CA$0.26 and CA$0.54 since it commenced trading on the TSX on August 13, 2024.
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Important Disclosures:
Coppernico Metals Inc. 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 Coppernico Metals Inc.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.
Disclosures From Coppernico Metals Inc., December 5, 2024
Coppernico is solely responsible for the technical information herein about its Ccascabamba project, such disclosure having been reviewed by its qualified person Tim Kingsley, C.P.Geo.Streetwise Reports has written this article with information compiled from third-party sources and does not make its own opinions. The information presented in this article comes from Coppernico Metals (when writing technically about the Ccascabamba project), and third-party sources outside of both Coppernico Metals and Streetwise Report's control.