Jr. Hits High-Grade Copper-Silver Mineralization at Nevada Project
Giant Mining Corp. (CSE: BFG; OTC:BFGFF; FWB:YW5) announced drilling at its Majuba Hill Porphyry Copper Deposit in Nevada this year has intersected high-grade copper-silver mineralization. One expert says the company has the potential to be a "major player" in the copper supply chain.
Giant Mining Corp. (CSE: BFG; OTC:BFGFF; FWB:YW5) announced drilling at its Majuba Hill Porphyry Copper Deposit in Nevada this year has intersected high-grade copper-silver mineralization.
Hole MHB-30 assayed 1.35% copper (Cu) and 73.4 grams per tonne silver (g/t Ag) over 66.4 meters from the surface, including 22.6 meters of 2.6% Cu and 30.1 g/t Ag, the company said in a release.
"We are excited by the results of hole MHB-30, which significantly exceeded our expectations for high-grade copper-silver mineralization," Chief Executive Officer David Greenway said. "With guidance from our geologic team, ... we are continuing to uncover the incredible potential of Majuba Hill. We remain open both at depth and along strike, and despite over 83,925 feet of drilling and development work, we are only scratching the surface of just how big this opportunity could be for Giant stakeholders, the State of Nevada, and the U.S.A."
Greenway said the company "eagerly" awaits the results from another hole, MHB-31, which was drilled to 1,086 feet (331 meters).
The copper-silver-molybdenum porphyry project previously produced high-grade copper, silver, and tin, along with gold and zinc from historic underground workings, Giant said.
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.
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."
'Strong Validation' of Exploration Model
Giant said this year's core and reverse circulation drilling program at Majuba Hill was designed to in-fill and drill new targets to expand the near surface, open-pit, 50- to 100-million tonne exploration target that has grades estimated from 0.15% Cu to 0.30% Cu, according to a 2023 National Instrument 43-101-compliant report. The holes for 2024 are planned to improve the copper grades and provide sufficient confidence in the results and make way for Giant's NI 43-101 maiden mineral resource estimate (MRE).
"The 2024 holes target near-surface oxide and enrichment zones concentrated along magmatic-hydrothermal breccias that define two prominent corridors," the company said in a release.
The high-grade copper-silver results from MHB-30 are a "strong validation of our exploration model at Majuba Hill," Technical Advisor Leo Hathaway said.
"These results confirm the presence of significant mineralization near surface, with potential for further expansion both laterally and at depth," he said. "We are excited about the continued progress of the program and look forward to unlocking even more value as we drill deeper and expand our understanding of the deposit."
Giant Mining Consulting Geologist Buster Hunsaker also noted that the consistent silver values have the potential to enhance the deposit's value.
Newell said historic figures represent just a fraction of Majuba Hill's 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.
Red Metal Hits New Highs
Copper rose to a two-month high last week after the Federal Reserve cut interest rates for the first time in four years and surged still higher to US$4.53 on Tuesday. It is up more than 11% on the year.
Why is copper 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 silver. It's needed for everything from batteries to solar panels. Electric vehicles (EVs) contain as much as 175 pounds of copper. Power-hungry artificial intelligence (AI) is also expected to put a squeeze on electricity demand.
Streetwise Ownership Overview*
Giant Mining Corp. (BFG:CSE; BFGFF:OTC; YW5:FWB)
*Share Structureas of 5/23/2024Source: Giant Mining Corp."We need it to massively expand and upgrade the countless miles of power cables that undergird the energy grid in practically every country," Beiser wrote for WIRED. "In the United States, the capacity of the electric grid will have to grow as much as threefold to meet the expected demand."
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.
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$5.75 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.