Copper Jr. Announces New Copper Zone Discovery at BC Project
Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA) announced the discovery of a new copper zone at its Thane copper-gold project in British Columbia's prolific Quesnel Terrane. Read why one analyst believes the stock is "extremely undervalued on both fundamental and technical grounds."
Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA) announced the discovery of a new copper zone and a recently completed geological review at its Thane copper-gold project in British Columbia's prolific Quesnel Terrane.
The company said 10 high-priority targets have been recommended for advancement at the project, including the newly discovered Bananas Showing and the previously known Gail Showing, which have been recommended for geological exploration advancement.
"The discovery of a new showing like the Bananas Showing is evidence of the exploration potential of the large property using modern exploration techniques combined with increased rock exposure due to decreased snow coverage," said Chief Executive Officer Brian Thurston.
The Quesnel Terrane is 1,500 kilometers long and 30 to 50 kilometers wide and spans British Columbia, containing the largest concentration of alkalic Cu-Au porphyry deposits and prospects in the world, according to the company's investor presentation.
"New discoveries and new investments in (the) region are driving an exploration renaissance," the company said.
Technical Analyst Clive Maund said the company's stock was "extremely undervalued on both fundamental and technical grounds" and is "rated an Immediate Strong Buy."*
"We have a rare and unusual situation where there is huge upside potential, especially in percentage terms . . . The risk/reward ratio is massively skewed in favor of buyers of the stock here," Maund wrote on August 13.
Maund noted that "when we consider the now favorable outlook both for the company following successful financings and the prices of the metals it is looking to produce, primarily copper and gold, it quickly becomes clear that there is a whole lot of upside for the stock."
Bananas Showing Revealed by Receding Ice, Snow
Interra said the Thane Project is located in an underexplored portion of the northern Quesnel Terrane, extending from Centerra Gold Inc.'s (CG:TSX; CADGF:OTCPK) Mt. Milligan Mine in the south to its Kemess Underground Project and the former Kemess South open pit mine in the north.
Historically, six areas of significant copper mineralization had been identified within an about 20-kilometer-long geochemically anomalous copper-gold (Cu-Au) zone, the company said. Alteration mineral mapping and proprietary company data assessment identified 13 new targets.
A specialist team did a field review of all 19 targets, confirming that "the Thane property has significant alkalic copper-gold porphyry potential within a comparable geological setting for nearby mines," Interra said in a release.
Out of the 10 targets identified as high priority, the company said the new Bananas Showing and the previously known Gail Showing are ranked the highest priority with "strong copper-gold mineralized alteration systems in favorable host rocks. These two areas are recommended for geological exploration advancement."
It is believed that receding snow and ice exposed the Bananas, showing mineralized areas with associated intense alteration.
The showing was observed and sampled over 200 meters along strike with approximately 100 meters of elevation exposed and remains open along strike, the company said. Rock samples have been sent to the laboratory for analysis.
The Catalyst: 'Electrify Everything'
At US$4.34 per pound on Friday afternoon, copper rose to a two-month high this week after the Federal Reserve cut interest rates for the first time in four years.
Why is this metal so important? According to a piece by Vince Beiser for WIRED in August, the "battle cry of the energy transition is 'Electrify everything.'"
That translates into a lot of copper, which is the best natural conductor of electricity outside of the much rarer silver. It's needed for everything from batteries to solar panels. Electric vehicles contain as much as 175 pounds of copper. Power-hungry artificial intelligence (AI) is also expected to put a squeeze on electricity demand.
"We need it to massively expand and upgrade the countless miles of power cables that undergird the energy grid in practically every country," the author wrote. "In the United States, the capacity of the electric grid will have to grow as much as threefold to meet the expected demand."
Streetwise Ownership Overview*
Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA)
*Share Structureas of 8/27/2024Source: Interra Copper Corp. &Thomson ReutersAccording to Credendo, demand for copper could double by 2035. New copper production and investment in exploration will be needed to fuel the supply of those vehicles in the long term, analysts have said.
Ownership and Share Structure
Interra has 42.6 million shares outstanding, according to the company. It said about 25% of the company is owned by management, directors, insiders, and other closely affiliated parties, leaving about 75% to retail.
Top shareholders, according to Reuters, include Raymond Christopher Buncic with 1.86%, Richard Mark Gittleman with 1.69%, Director Jason A. Nickel with 1.48%, Director Mike Ciricillo with 1.27%, and Director Mark Daniel Cruse with 0.59%.
The company has a market cap of CA$4.48 million and trades in a 52-week range of CA$0.32 and CA$0.08.
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Important Disclosures:
Interra Copper Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Interra Copper Corp. 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 for the quotes from the Clive Maund article published on August 13, 2024
For the quoted article (published on August 13, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$2,500.Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressedClivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.