Geologist Says Nevada Copper Project Has 'Luck' on its Side
Giant Mining Corp.'s (CSE: BFG; OTC:BFGFF; FWB:YW5) Senior Geologist Buster Hunsaker has worked on at least three continents but may have found what he was looking for closer to home in Nevada. Read to hear why one other geologist likes the property and why one newsletter writer says the company could become a "major player" in the sector.
Giant Mining Corp. (CSE: BFG; OTC:BFGFF; FWB:YW5) Senior Geologist Buster Hunsaker has worked with senior and junior mining companies in North America, South America, and Mongolia. It's that experience that helped lead him to a project much closer to home in Nevada.
Hunsaker said he saw geology there similar to what he saw in South America. At a place called Majuba Hill, he started seeing a lot of copper, and the rest was "serendipity," he said.
"We knew (Majuba Hill) historically has already produced copper, silver, gold, and tin from mineralization that is open below and laterally," said Hunsaker's colleague, Director and Geologist Larry Segerstrom.
Hunsaker acquired the property in 2007 and has leased it out several times to other explorers. When Giant Mining Corp. came along and made the project its flagship, this time, "we came with the property, so to speak . . . (Chief Executive Officer) David (Greenway) allows us to do the science that goes along with the exploration, and we've stayed at it."
"We had no idea that the potential was going to be as big as it was," said Hunsaker. "We saw the porphyry target, we saw that ... all that copper stuck out of the ground."
'One of the Best Early Stage Copper Deposits I've Worked On'
Segerstrom has more than 38 years of technical, operational, and business expertise, according to the company's website, including "contributions to the discovery and progress of numerous porphyry copper-gold projects."
He told Streetwise Reports that in addition to the body of mineralization, the company has found so far, "we've discovered several more of them."
"One of our major goals now is to define the geometry of the existing body as well as the newly discovered bodies," he continued. "So, there are going to be potential hosts as well for this mineralization."
The company is starting to drill deeper in the sulfide zones, he said, exploring extensive branches that Giant hasn't mapped yet.
Earlier this month, Giant announced a four-hole core drilling program to build on promise from a previous drill hole, MHB-30, which intersected high-grade copper-silver mineralization from surface to a depth of 66.4 meters. The highlight of MHB-30 was an interval of 22.6 meters with 2.6% copper (Cu) and 30.1 grams per tonne silver (g/t Ag), returning a copper equivalent (Cu Eq) grade of 2.9% over the same interval.
"Basically, this is one of the best early-stage copper deposits I've ever worked on," he said. "This is one of the best ones I've seen as far as economic potential. So, I'm really excited."
Analyst: Project Has Shown Only a Fraction of its Potential
The copper-silver-molybdenum porphyry project previously produced high-grade copper, silver, and tin, along with gold and zinc from historic underground workings. More than 25,580 meters of exploration and development drilling have been completed at the project historically. Giant Mining controls 39.2 sq kilometers, or 3,919 hectares, at Majuba Hill.
"Drilling has identified a body of oxide copper-silver-gold mineralization, but this body has not been fully defined or properly modeled to produce a mineral resource estimate," the company said on its website.
John Newell of Newell & Associates, in an analysis of the stock on September 9*, said the company presents "an interesting investing opportunity within the junior mining space" and has the "potential to become a major player in the copper supply chain."
"Situated in mining-friendly Nevada, the Majuba Hill property offers an excellent combination of geology, infrastructure, and location," Newell wrote. "Nevada is a top-tier mining jurisdiction known for its strong regulatory support, extensive infrastructure, and access to a skilled workforce."
Hunsaker agreed that those are advantages to being in Nevada, especially at Majuba Hill.
"We're off a major interstate highway," he noted. "We're in northern Nevada. Whenever you talk about all the gold that comes out of Nevada, we're in the midst of that. We have rail, we have power, all of those things nearby."
Newell said historic figures from Majuba Hill represent just a fraction of its potential.
"Modern exploration suggests the property could hold between 50 million to 100 million tonnes of copper, with grades ranging from 0.15% to 0.30% Cu," he wrote. "Additionally, higher-grade zones could contain between 10 million to 20 million tonnes, with grades as high as 0.80% Cu."
Newell issued a Buy recommendation for Giant Mining, citing the company's solid fundamentals and the potential for share price appreciation as exploration results unfold. He concluded that Giant Mining represents a strong value opportunity, particularly given the growing global demand for copper and the company's strategic position within the industry.
The Catalyst: 'Electrify Everything'
Copper is vital for the energy transition in the world's economy as the best natural conductor of electricity outside of silver. It's also 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.
The "battle cry of the energy transition is 'Electrify everything,'" Vince Beiser wrote for WIRED. That translates into a lot of copper, which "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.
The red metal was trading higher Thursday at US$4.65 per pound after reaching a 52-week of US$5.18 on May 20.
According 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.
Writing for Proactive, Emily Jarvie noted Oct. 2 that RBC Capital Markets analysts are bullish on copper heading into the fourth quarter.
"Analysts see copper prices recovering in the second half of the year, driven by cyclicality, economic stimulus in China, and rate cuts in the Western world," she wrote. "They added that they are constructive on copper equities due to supply constraints from the declining availability of high-quality copper and limited inventory as well as increasing demand from the energy transition and new demand layers such as future data center requirements."
Streetwise Ownership Overview*
Giant Mining Corp. (BFG:CSE; BFGFF:OTC; YW5:FWB)
*Share Structureas of 5/23/2024Source: Giant Mining Corp.The analysts noted that there is also a lack of new supply committed to come online past 2025.
"While prices have recently rallied on the back of improved China sentiment and the Fed rate cut, we think this remains an attractive entry point for copper equities ahead of a positive multi-year story for copper with reasonable valuations at spot prices," the analysts said, according to Jarvie.
Ownership and Share Structure
According to Giant Mining Corp., approximately 18.6% of its shares are held by insiders. The remaining shares are held by retail investors.
Giant Mining Corp. has a market capitalization of approximately CA$4.08 million.
The company's shares are traded on the Canadian Securities Exchange (CSE) under the ticker BFG, on the Deutsche Boerse AG (DB) under the ticker YW5, and on the OTC Pink Sheets in the U.S. under the ticker BFGFF, with these listings active since December 2017.
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Important Disclosures:
Giant Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Giant Mining 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 Giant Mining 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 John Newell article published on September 9, 2024
For the quoted articles (published on September 9, 2024), the Companies paid Street Smart, an affiliate of Streetwise Reports, US$2,500.Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.John Newell Disclaimer
As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.