GSP Resource Shifts Strategy for Alwin Copper Project
Bob Moriarty of 321Gold explains why he likes GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB).
GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB), a junior mining company founded six years ago, has recently adjusted its approach to the Alwin Copper Mine project in British Columbia. The company, which trades on the TSX Venture Exchange and OTC Markets, initially planned for underground mining but has now pivoted to an open-pit model.
The Alwin property, located adjacent to Teck Corporation's Highland Valley Copper Mine, has a production history dating back to 1916. Operations ceased in 1981 due to low copper prices. GSP Resource acquired an option on the project in 2020, which includes cash payments, share issuance, and a royalty agreement.
The company's decision to redesign its mining plan as an open pit aligns more closely with Teck's nearby operations. This shift may make the project more attractive to Teck as a potential buyer. On October 1, GSP Resource released a block model based on data from 581 historical drill holes totaling over 45,000 meters.
While the current resource estimate focuses primarily on copper, the deposit is known to contain silver, gold, and molybdenum. However, these elements were not consistently assayed in historical drilling due to lower prices at the time.
GSP Resource recently raised $650,000 for further exploration and development work at Alwin. The project's proximity to Teck's operations with only 1 km separating the properties could be strategically significant.
The company's market capitalization is relatively small, estimated at around $4 million. This valuation includes recently issued shares. As GSP Resource continues to develop the Alwin project, it may become an increasingly attractive acquisition target for larger mining companies operating in the area.
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Important Disclosures:
Bob Moriarty: I, or members of my immediate household or family, own securities of: GSP Resource Corp. My company has a financial relationship with GSP Resource Corp. I determined which companies would be included in this article based on my research and understanding of the sector.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. 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.