Global Copper Snapshot: Eight companies exploring for the red metal

Copper is essential for the global shift towards decarbonization. However, declining ore quality, mine closures, and the absence of additional investment in new copper supplies could lead to a significant shortfall over the coming decades. Below are eight companies exploring and developing new sources of the red metal.

ATEX RESOURCES

Atex Resources (TSXV: ATX) is a Chilean-focused exploration and development company.

The Vancouver-headquartered junior is focused on advancing its flagship Valeriano copper-gold porphyry deposit in the Atacama region of the country, approximately 125 km southeast of the city of Vallenar. The project hosts a large copper-gold porphyry deposit overlain by a near-surface oxidized epithermal gold deposit.

In May, Atex announced the completion of the second phase of its drill program at Valeriano with the final hole, ATXD-17, drilled to a depth of 2,057 metres. It said all drill holes had now been logged with assay results expected within the next couple of months.

In 2020, Atex reported initial resources for both the oxide gold deposit and copper gold porphyry.

The gold oxide epithermal deposit contains 34.4 million inferred tonnes grading 0.528 gram gold per tonne and 2.4 grams silver (0.561 gram gold-equivalent) for 584,884 oz. contained gold and 2.7 million oz. silver (621,539 oz. gold-equivalent). The resource measures approximately 650 metres by 500 metres in area and extends to an average depth of 100 metres below surface.

The copper-gold porphyry deposit hosts inferred resources of 297.3 million tonnes grading 0.59% copper, 0.193 gram gold, and 0.9 gram silver (0.77 gram copper-equivalent per tonne) for 1.8 million tonnes contained copper, 1.8 million oz. gold, and 8.6 million oz. silver (2.3 million tonnes copper-equivalent). The deposit is open in all directions horizontally and to depth.

Atex Resources has a market cap of $72 million.

AZUCAR MINERALS

Azucar Minerals (TSXV: AMZ; US-OTC: AXDDF) is focused on advancing its 100%-owned El Cobre copper-gold project in Mexico’s Veracruz state, approximately 75 km northwest of the city of Veracruz.

The 118.6-sq.-km property hosts copper-gold porphyry mineralization over at least 4 km of strike length. The mineralization occurs in several copper-gold porphyry zones — El Cobre, Norte, Villa Rica, El Porvenir, Suegro, and Encinal — that are defined by distinct copper-gold soil anomalies, discrete, positive magnetic features, and a large induced-polarization (IP) chargeability anomaly, the company said.

In May, Azucar reported that it had completed drilling the first hole of an initial drill program on a large lithocap alteration and mineral vector target that both overlap a deep IP geophysical anomaly within an area of moderate magnetic response.

An initial resource estimate for Norte in September 2020 outlined 47.2 million indicated tonnes grading 0.21% copper, 0.49 gram gold per tonne, and 1.4 grams silver (0.77 gram gold equivalent per tonne) for 221 million lb. contained copper, 748,000 oz. gold, 2 million oz. silver (1.2 million oz. hold equivalent). Inferred resources add 64 million tonnes grading 0.18% copper, 0.42 gram gold, and 1.3 grams silver (0.66 gram gold-equivalent) for 254 million lb. copper, 860,000 oz. gold, 2.8 million oz. silver (1.4 million oz. gold-equivalent).

According to Azucar, Norte is amenable to an open pit mining method and has potential for resource expansion at depth within the zone as well as at other significant porphyry bodies identified across 5km strike length at the project.

Azucar Minerals has a market cap of $5.9 million.

CAVU ENERGY METALS

CAVU Energy Metals (CSE: CAVU; US-OTC: CAVVF), formerly called CAVU Mining Corp., is engaged in the exploration and development of minerals used in green technologies. The company has a portfolio of projects in B.C. and the Yukon.

The Canadian junior’s focus is on exploring its Hopper copper-gold project in the Dawson Range copper-gold belt in southwestern Yukon. The project is a multi-target porphyry complex with peripheral skarn mineralization, approximately 120 km northwest of Whitehorse.

The 74-sq.-km property contains the Hopper, Gal, and Guy claims in the Whitehorse mining district, which are 100%-owned by Strategic Metals (TSXV: SMD) and are subject to an option agreement for a 70% interest with CAVU. 

Mineralization on the project occurs within two main zones — Copper Castle and Hopkins North — that have the potential for expansion and the delineation of additional zones, says the company.

Copper Castle (formerly referred to as Hopkins South and Hopper South) covers a 1.5-km by 800-metre area of skarn mineralization with at least 10 mineralized skarn horizons identified within a 425-metre elevation difference. Hopkins North covers a 2.3-km by 650-metre zone of porphyry copper style mineralization, primarily open to the south and east.

In May, CAVU provided an update on its planned 5,000-metre 2022 diamond drill program that is targeting both new porphyry discovery potential and Copper Castle massive sulphide skarns. The company said that 580 metres have been drilled in two holes in Copper Castle skarn on the fringe of the porphyry system so far, with drilling of the third hole currently in progress.

Jaap Verbaas, the company’s CEO, said in a May 24 press release that the drill program was off to a great start. “As part of the program, our VP Exploration, Dr. Luke Bickerton, re-assessed all unsampled historic core on site to further refine our porphyry targets,” he said.

“Several drill intercepts were observed with vein-controlled molybdenite and chalcopyrite that were not sampled, near both the northern and southern porphyry targets. The type of alteration and mineralization in these intercepts are consistent with proximal porphyry centres,” he added.

CAVU Energy Metals has a market cap of $7.8 million.

FORAN MINING

Foran Mining (TSXV: FOM; US-OTC: FMCXF) is a Canadian base and precious metals exploration and development company with a portfolio of eight properties encompassing over 1,400 sq. km within the Hanson Lake district of eastern Saskatchewan.

The Saskatoon-headquartered junior is focused on advancing its 100%-owned McIlvenna Bay copper-zinc-gold-silver project in the east-central part of the province, approximately 65 km west of Flin Flon in Manitoba.

Foran plans to develop McIlvenna Bay into the world’s first carbon-neutral copper development project by purchasing carbon offsets to counterbalance emissions from 10 years of exploration work on the property. The offsets include funding for the Kariba forest protection project in Zimbabwe and the Newfoundland Climate and Ecosystems Conservancy project.

The 209-sq.-km property hosts the largest undeveloped volcanogenic massive sulphide deposit in the region, says the company.

At the end of May, Foran announced that it had received an initial permit for its advanced exploration decline program at the project that will allow it operate pollutant control facilities for water and waste rock. It says that water pumped out of the decline will be placed into a lined containment pond on-site and waste rock will be placed on the now-completed lined waste rock pad.

As part of the advanced exploration decline program, the company has completed the box-cut, initial underground excavation, jet grouting of the sandstone layer from the surface, rock pad lining, and roadways.

It has also completed construction of the containment pond, the ore and waste pad, and the establishment of mine services infrastructure for ventilation, air, and water to support the decline development.

In February, the company released a feasibility study on the expanded and re-scoped initial mine plan for McIlvenna Bay. The study envisages a long-life mining operation with average annual production of 72.8 million lb. copper-equivalent over the first 15 years of the mine’s life.

In 2021, a mineral resource estimate for McIlvenna Bay outlined 39.1 million indicated tonnes grading 1.2% copper, 2.16% zinc, 0.14% lead, 0.41 gram gold per tonne, and 14 grams silver (2.04% copper-equivalent) for 1 billion lb. contained copper, 1.9 billion lb. zinc, 510,000 oz. gold, and 18.1 million oz. silver. Inferred resources add 5 million tonnes at 0.94% copper, 2.56% zinc, 0.17% lead, 0.27 gram gold, and 16 grams silver (1.77% copper-equivalent) for 105 million lb. copper, 284 million lb. zinc, 40,000 oz. gold, and 2.6 million oz. silver.

Foran Mining has a market cap of $565 million.

MAX RESOURCES

Max Resources (TSXV: MAX; US-OTC: MXROF) is a copper and precious metals exploration company focused on advancing its 100%-owned district-scale Cesar copper-silver project in northeastern Colombia.

The property lies along the northern portion of the Andean belt, the world’s largest producing copper belt, and covers over 170 sq. km of mining concessions, about 140 km north of the capital, Bogota.

In April, the company reported preliminary assays and the discovery of a new high-grade drill target at Uru. Discovered in 2021, Uru covers over 70 sq. km of mining concessions along the southern portion of Cesar.

Max says that reconnaissance rock channel sampling targeted three levels of a subvertical mineralized structure at the target. Highlights from channel sampling of the lower two levels returned 16.8 metres grading 8.3% copper and 146 grams silver per tonne; and 7 metres grading 8.5% copper and 143 grams silver.

However, the company said that the upper level, due to limited outcrop on a ridgeline, allowed for a total of 24 chip channel samples to be collected over 48 metres, which returned an average value of 5.3% copper and 44 grams silver per tonne.

Drilling at the property is now focused on both strike and vertical extensions upwards from the uppermost samples collected to date, says Max, with an upcoming IP survey exploring the depth potential of this zone, along with the strike extent in areas with little outcrop.

The team is also looking to define orientation, continuity and grade, throughout the topography, on strike and at depth. The company also has the rights to acquire 100% of the RT gold project in Peru, approximately 760 km northwest of Lima.

Max Resources has a market cap of $105.8 million.

OSISKO METALS

Osisko Metals (TSXV: OM; US-OTC: OMZNF) is advancing two past-producing brownfield assets — the Gaspé copper mine in Quebec and the Pine Point mining camp in the Northwest Territories.

The Montreal-headquartered junior’s current focus is on the historic Gaspé mine, located next to the community of Murdochville on the Gaspé Peninsula in eastern Quebec, approximately 825 km east of Montreal.

According to Osisko, Gaspé is one of the largest copper development assets in eastern North America.

In late April, just one month after it optioned the project from Glencore Canada, Osisko released an initial resource estimate for the Mount Copper deposit at Gaspé. The deposit contains 456 million inferred tonnes at a total grade of 0.351% copper, which includes sulphide copper grading 0.31% copper, for 3.1 billion lb. contained copper (based on sulphide copper only).

Osisko says the resource is pit-constrained to mineralization surrounding the past-producing Mount Copper open pit mine, and was estimated using historical drilling completed between the 1960s and 2019.

“This is the first step for our comprehensive strategy at Gaspé Copper to fully evaluate all potential for economic copper deposits remaining within this past-producing porphyry copper/skarn complex,” Robert Wares, the company’s CEO, said in an Apr. 28 press release.

“We strongly believe this large-scale asset could become a core component of Quebec’s critical mineral development strategy,” he added.

Gaspé includes a past-producing mine that operated from 1955 to 1999, producing 150 million tonnes of the red metal at a grade of 0.86% copper.

Osisko, which signed an option agreement with Glencore Canada to acquire the property on Mar. 25, believes there is a strong economic case for reopening the project.

Osisko’s agreement with Glencore provides it with an option to acquire a 100% interest in the project for an upfront payment of US$25 million, to be paid by way of a convertible note issued to Glencore, and a cash payment of US$20 million when commercial production begins. Osisko also needs to spend $5 million on drilling before June 30.

An ongoing 30,000-metre drill program on the property comprises two phases: the first (10,000 metres) is primarily designed to evaluate the extent of near-surface( oxide mineralization. The second (20,000 metres) is for infill drilling to update the currently modelled in-pit resource.

In addition to the drilling, the company is also launching a preliminary economic assessment on the Mount Copper expansion project.

Osisko Metals has a market cap of $82.8 million.

STARR PEAK MINING

Canadian explorer Starr Peak Mining (TSXV: STE; US-OTC: STRPF) is focused on advancing its 100%-owned NewMetal polymetallic project in the Abitibi Greenstone belt of Quebec, immediately adjacent to the town of Normetal and about 140 km northwest of Val-d’Or.

The company acquired the site in June 2019, including the historic Normetal mine, which operated periodically from the 1920s to 1975. About 10 million tonnes of ore grading 2.15% copper, 5.12% zinc, 0.549 gram gold per tonne, and 45.25 grams silver were mined during that time.

In August 2020, Starr Peak expanded the NewMetal property by acquiring a 100% interest in the Normetal-Normetmar gold-copper-zinc-silver property, the Rousseau gold property, and the Turgeon Lake gold property.

In May, the company released drill results from ongoing drilling targeting the Normetmar Deep zone, located directly below the Normetmar high-grade zinc deposit.

Highlights from the drilling include hole STE-21-92-WE, which intersected 5.9 metres grading 0.1% zinc, 2.31% copper, 0.86 gram gold per tonne, and 24.94 grams silver per tonne (9.49% zinc-equivalent) starting from 1,040.9 metres downhole, including a higher-grade core of 3.1 metres at 0.1% zinc, 4.17% copper, 1.61 grams gold per tonne, and 45.2 grams silver (17.17% zinc-equivalent).

Commenting in a May 26 press release, Johnathan More, Starr Peak’s CEO said, “One additional hole is being drilled from this wedge series, following which we plan to test the Normetmar zone occurrence below the Deep zone.”

“The Deep zone is drilled down to approximately 1,000 metres vertical depth. The past producing Normetal mine, located 900 m east of the Normetmar zone, was continuous down to a vertical depth of 2,400 metres. An existing hole will be drilled down several hundred more metres below the Deep zone. BHEM (Bore Hole EM) surveys will be done within the extended deep hole in search of massive sulphide mineralization near the hole, followed by drill testing of priority EM targets,” he added.

Starr Peak Mining has a market cap of $49.7 million.

TRIGON METALS

Trigon Metals (TSXV: TM) is engaged in copper production and exploration, and holds a portfolio of assets in Africa, including the past-producing Kombat mine in Namibia and the Silver Hill copper-silver exploration-stage project in Morocco.

The Canadian junior’s focus is on its flagship Kombat mine in the Grootfontein district of the Otjozondjupa region, between the towns of Otavi to the west and Grootfontein to the east. The mine was historically one of the most significant copper mines in Namibia, producing 12.5 million tonnes of ore grading 2.62% copper, 1.55% lead, and 18 grams silver per tonne between 1962 and 2008.

In February, 14 years after mining was suspended, Trigon successfully restarted copper and silver concentrate production from the mine, shipping 31 dry tonnes of concentrate grading 20.41% copper and 265 grams silver per tonne from the mine to warehouses in Walvis Bay, Namibia.

The company said the shipment is the first of 400 tonnes of concentrate now produced and stockpiled at the mine, with planned production increasing to 14,000 tonnes in 2024, when higher grade underground ore will start to be recovered.

An updated resource estimate for Kombat in August 2021 outlined combined open pit and underground resources of 12.2 million indicated tonnes grading 1.94% copper, 0.7% lead, and 13.67 grams silver per tonne, and 1.9 million inferred tonnes grading 2.19% copper, 1.79% lead, and 6.13 grams silver.

In December, a feasibility study for the project envisaged a five-year mining operation producing 1.5 million tonnes of ore at an average grade of 1.14% copper and 7.59 grams silver per tonne over the mine’s life. Total capital costs were estimated at US$11.9 million, including US$910,000 budgeted for contingencies, over the life of the mine.

Mineralization at the site occurs over a 30-km strike length. Recent drill results, the company says, indicate additional potential for the project with the delineation of a new area of mineralization, referred to as the Central Pit southwest extension, adjacent to the Kombat Central Pit.

Highlights from the drilling include C1DDT3-03, which returned 17 metres grading 4.4% copper from 43 metres and 3 metres grading 10.1% copper from 85 metres.

Trigon Metals has a market cap of $37.3 million.