Copper Jr. Expands Resource Estimate for Arizona Project

Source: Streetwise Reports 09/10/2024

World Copper Ltd. WCUFF has announced an updated and expanded Mineral Resource Estimate (MRE) for its Zonia copper-oxide deposit in Arizona.

The estimate includes 113.2 million short tons grading 0.303% total copper in the Indicated category, or 686 million pounds of copper, and 59.2 million short tons grading 0.254% total copper in the Inferred category, or 300 million pounds of copper.

World Copper noted it was a "significant expansion" of an estimate done in 2023 and is a result of using a higher copper price and refined moralization models and modeling methods.

"This new report greatly de-risks the project by expanding the indicated resource classification of the deposit" Chief Executive Officer Gord Neal said. "This new resource definition could significantly extend the life of mine of the project. It also has the potential to substantially increase the throughput of future operations and boost the projected annual production profile. Combined with the resource expansion potential of the Zonia North properties, the project is now exhibiting the potential to become a large-scale copper producer."

World Copper noted the updated resource found a strip ratio of 3.2 waste to mineralized material at the base case total copper (TCu) cutoff grade of 0.18% and a low strip ratio of 1.1 waste to mineralized material at the economic cutoff of 0.07% TCu.

The updated MRE was completed by Sue Bird of Moose Mountain Technical Services, the company noted.

Company Looks to Next Steps

World Copper said its next step and largest potential for a new discovery at Zonia is to the north-northeast of the current open pit and resource, where a 2.5 kilometer- by 1.5 kilometer-coincident copper-molybdenum-manganese geochemical anomaly has been identified.

Historical surface rock geochemical sampling delineated a copper-molybdenum anomaly

spatially coincident and similar in size/shape to a broad zone of manganese depletion consistent with typical porphyry-copper mineralization, the company said in a release. Situated 1.5 kilometers to the north-northeast of the Zonia deposit and exhibits the same pattern and size of geochemical anomalism to that deposit.

"It is significant that the anomaly is open to the north where outcrops are covered by post-mineral cover" the company noted. "This large geochemical footprint is interpreted to represent a second porphyry center. Nearby historical drill holes indicate the area is deeply weathered and copper-oxide mineralization is present."

The Zonia Norte porphyry target was fully permitted by a previous operator and will be drill-ready when the permitting process is restarted, World Copper said.

The company plans to drill 18 holes over 5,000 meters, targeting copper oxide mineralization, and further mapping over the target and adjacent areas is planned.

World Copper said it "remains focused on further advancing the Zonia copper oxide deposit into feasibility and subsequently into production."

The project is scheduled to start copper cathode production within 48 months, as it benefits from a location on private land with existing power and water in Arizona.

The next catalyst expected by the company is the start of a verification drill program on the leach pads at the project. Positive drill results could mean significant pre-production cash for World Copper by moving the project into production quicker in a rising copper market.

The Catalyst: The Need to Find Sources

According to USA Today, copper traded at US$4.07 per pound on Monday, down 3.53% from last week. On the year, copper is up 4.40%.

According to Credendo, demand for the red metal could double by 2035, as EVs use more than three times as much of it as gas-burning cars. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles in the long term, analysts have said.

The hunt for copper "has been accelerating, as companies involved in all parts of the copper supply chain realize the structural supply deficit facing the copper market" wrote Rick Mills, author of the newsletter Ahead of the Herd.

"They understand the need to find sources — existing mines, expansions, brownfield projects, greenfield projects, etc. — and are making deals to acquire the base metal, which is not only essential to electrification and decarbonization but industry in general" Mills wrote.

Copper climbed above US$10,000 a ton in May, based on predictions of tighter supplies and rising consumption for electric vehicles (EVs) and power grids in the transition to green energy. It was US$8,280 per ton on Monday.

According to a Bloomberg report on Mining.com last week, "Uncertainty around the U.S. presidential election in November will prevent meaningful gains for metals by subduing global risk appetite and possibly delaying government stimulus in China, according to Citigroup Inc."

The firm's analysts, including Tom Mulqueen, wrote in a note, "We think Fed rate cuts, further China policy easing, and an upturn in global manufacturing sentiment will be more constructive for metals pricing in late fourth quarter/early 2025, once the U.S.

Metals from copper to aluminum have retreated in recent months due to concerns that Chinese demand will slow and there will be jitters over the global economy, according to the Bloomberg report. Goldman Sachs Group Inc. has fueled an increasingly cautious tone across commodities by slashing $5,000 from its 2025 copper forecast last week.

Ownership and Share Structure

Wealth Minerals Ltd. WMLLF owns about 10.44% of World Copper, according to Reuters.

About 18.64% is owned by management and insiders, including Director Robert Kopple with 15.6% and Board Chairman Hendrik van Alphen with 1.08%. CEO Neal holds about 0.87%, Reuters said. The rest is retail.

As for share structure, the company has 196.3 million outstanding shares and 110.66 million free float traded shares, according to Reuters.

It has a market cap of CA$12.65 million. Its 52-week trading range is CA$0.06–0.35 per share.

Important Disclosures:

1. World Copper Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of World Copper Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. 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.