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Copper Explorer Defines 104 MT Open Pit at 0.85% Copper Equivalent

Source: Bill Powers for Streetwise Reports   09/29/2021

Bill Powers of Mining Stock Education profiles QC Copper and Gold’s newly defined Opemiska…

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This article was originally published by The Gold Report

Source: Bill Powers for Streetwise Reports   09/29/2021

Bill Powers of Mining Stock Education profiles QC Copper and Gold’s newly defined Opemiska copper-gold deposit in Chibougamau, Quebec.

QC Copper and Gold Inc.‘s (QCCU:TSX.V; QCCUF:OTCQB) Opemiska Deposit in Quebec consists of 81.7 million tonnes @ 0.88% copper equivalent (CuEq) of pit-constrained Measured and Indicated mineral resources and 21.3 million tonnes @ 0.73% CuEq of Inferred mineral resources. The resource is pit constrained and contains more than 532,000 tonnes (or 1.17 billion pounds of copper and 816,000 ounces of gold) in the Measured & Indicated (M&I) classification and an additional 109,000 tonnes (or 240.3 million pounds of copper and 209,000 ounces of gold) in the Inferred classification.

Over 82% of the total mineral resource reports to the M&I classification. Within the larger resource, the company has identified a high-grade potential starter pit of 10.6 million tonnes of M&I Resources grading 1.26% CuEq. The mineral resources are using pit optimization algorithms and a 0.2% CuEq cut-off, inclusive of US$3.50/lb copper and US$1,650/oz gold prices. 

Regarding this accomplishment CEO Stephen Stewart commented to Mining Stock Education that it was a “major milestone and something that we’ve been working on for years.… to be able to get over that global envelope of 104 million tonnes at 0.85% copper equivalent, which equates to nearly two billion pounds of copper in the ground”…“So, we’re over the moon. That’s over $8 billion of gross metal value in the ground in the best mining jurisdiction in the world.”

Potential to Double the Resource

Stephen Stewart said QC Copper and Gold will aim to double the size of its approximately 2 billion CuEq pounds deposit.  The company has outlined multiple targets for expansion and discovery drilling this coming winter. These targets include extensional drilling to expand the existing mineral resource envelope, proximal former mines including the adjacent Cooke & Robitaille deposits, and other prospective targets along the Gwillim and Beaver Lake fault zones.

Stewart stated, “This is going to get bigger. There is no question about it.…Our shareholders and followers can expect us through the balance of this year and obviously 2022 to get out there and expand in and around this super-pit.”

Opemiska Catching the Eye of Producers

Opemiska is receiving interest from producers and potential strategic partners, Stewart shared. However, he is not willing to give away too much of Opemiska’s value too early:

In terms of getting interest from producers, we’ve had, over the past year or so, a lot of interest. Smart money, smart investors have taken notice, but also strategics. So we have shown them our database. Prior to this resource, we have had some very interesting phone calls when the resource came out. We certainly entertain interest from strategic partners, but it would have to be on the right terms. To be honest with you, all else equal, there’s ample capital available to us today from institutional and retail investors. I think that’s the best course for us not to get married immediately. So that’s probably the route we’ll take. And when the time is right, when we build the value, when we are, multiple nine figure valuation, that’s when we could consider getting a dance partner, if you will.

Potential CAD$500M Valuation says Stewart

Before the release of the Opemiska resource last week, QC Copper and Gold was valued at less than a CAD$30 million. Stewart believed the company was deeply undervalued then, especially because QC Copper and Gold also owns about CAD$14 million worth of Baselode Energy (TSXV:FIND) shares. But even after a nice share price rise since the resource announcement, Stewart argues his company is still grossly undervalued and is best compared to Marathon Gold with its Valentine Gold project:

To me, the best comparable is Marathon Gold. So Marathon’s got six to seven million ounces. They’re bigger than us right now. They’re a touch higher grade, but in the seven to eight-hundred-million-dollar market cap range. That’s a bold statement from a company that’s got about a CAD$30 million market cap. But when you look at the assets, we’re not that far off. And so we’re day one, we got a ways to go. We’re going to grow this resource, but to me, that’s the target. I think this thing has a $500 million valuation on it, all else equal. Well, that’s the direction I’m going to take this company.

Bill Powers is the host of the Mining Stock Education podcast that interviews many of the top names in the natural resource sector and profiles quality mining investment opportunities. Powers is an avid resource investor with an entrepreneurial background in sales, management and small business development. His latest interviews can be found at MiningStockEducation.com.

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Disclosure:
1) Bill Powers: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: QC Copper and Gold. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: QC Copper and Gold is a Mining Stock Education advertiser.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

The content produced by Bill Powers and Mining Stock Education LLC is for informational purposes only and is not to be considered personal, legal or investment advice or a recommendation to buy or sell securities or any other product. It is based on opinions, public filings, current events, press releases and interviews but is not infallible. It may contain errors and we offer no inferred or explicit warranty as to the accuracy of the information presented. If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on MiningStockEducation.com, our podcast or our videos. We usually hold equity positions in and are compensated by the companies we feature and are therefore biased and hold an obvious conflict of interest. MiningStockEducation.com may provide website addresses or links to websites and we disclaim any responsibility for the content of any such other websites. The information you find on MiningStockEducation.com is to be used at your own risk. By reading MiningStockEducation.com, you agree to hold MiningStockEducation.com, its owner, associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

( Companies Mentioned: QCCU:TSX.V; QCCUF:OTCQB,
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Energy & Critical Metals

Hyperion Metals increases Tennessee land position at Titan Project by 78%

Special report: The company’s land consolidation strategy has rapidly grown its landholdings by 419% from its initial 2,100-acre position in … Read…

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The company’s land consolidation strategy has rapidly grown its landholdings by 419% from its initial 2,100-acre position in September 2020.

Hyperion Metals has increased its land position at the Titan Critical Minerals Project by 78% in west Tennessee, USA by 4,794 acres to 10,905 acres, enabling further growth in the resource.

Since September 2020, Hyperion (ASX:HYM) has grown its landholding by 419% from its initial 2,100 acre position.

These new landholdings include mineral rights contiguous to the recently reported mineral resource estimate at the Titan Project of 431mt at 2.2% THM, which established the project as the largest titanium, zircon, and rare earth minerals project in the US.

Hyperion has also acquired land positions over greenfield locations up to 80km from the Titan Project, with planned exploration work on these properties to help guide future land consolidation.

‘Compelling combination of scale and grade’

HYM managing director and CEO Anastasios Arima said Titan has a “compelling combination of scale, grade, high value critical mineral products, low-cost inputs, world class infrastructure and location” and looks forward to rapidly advancing the critical mineral project.

“We are also highly appreciative of the deep support we have received from the local west Tennessee community that will help us to establish zero carbon, sustainable, critical material supply chains for advanced American industries,” he said.

Major automotive, battery and chemical operations near the Titan Project. Pic: Supplied.

The company says its landholdings benefit from significant cost advantages due to the location and proximity to low cost, world-class infrastructure. That’s expected to provide material cost and logistics advantages compared to projects located in more remote areas.

These factors have contributed to a huge amount of recent investment in Tennessee, highlighting the region as a leading jurisdiction for business, including by major auto manufacturers Ford and Volkswagen, world leading battery producers LG Chem and SK Innovation, as well as major chemical organisations and end users including Chemours.

 


 

 

This article was developed in collaboration with Hyperion Metals, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Hyperion Metals increases Tennessee land position at Titan Project by 78% appeared first on Stockhead.


Author: Special Report

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REZ levels up with maiden Granny Venn gold pour

Special Report: Richard Poole-led REZ has joined the ranks of producers with the maiden gold pour completed from its Granny … Read More
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Richard Poole-led REZ has joined the ranks of producers with the maiden gold pour completed from its Granny Venn deposit.

Sydney-based Resources & Energy Group (ASX:REZ) has showed off the very first gold bullion produced from its Granny Venn mine, part of the Menzies project in Western Australia.

https://twitter.com/REZ_GOLD/status/1452785965076926468

The first toll treatment for the Granny Venn cut back has reached the midway mark, which resulted in the first gold pours for the project yesterday morning at the Lakewood mill.

A total of 22.84kg of gold doré was produced from the pour and is now being dispatched to the Perth Gold Mint for determination of assay for out-turn certification.

Resources and Energy Group
Plate 2 gold pour and CIL leach bar 14.88kg

Before REZ and BM Mining restarted mining at Granny Venn in early July this year, no mining activity had taken place in 23 years.

Around 17,000 tonnes of Granny Venn ore has been processed since the toll milling campaign began in mid-August.

REZ and BM Mining partnered up under a profit-sharing agreement back in March to exploit the economically recoverable remnant resources at the Menzies project.

BM Mining is part of the BM Geological Services (BMGS) group of companies that have been active in the mining industry in the Goldfields of Western Australia since 2003.

Executive Director Richard Poole said the maiden gold pour represented a pivotal moment in REZ’s growth as it transitioned from exploration to production.

“We would like to congratulate BM Mining, which has done an exceptional job in assisting us in reaching this production milestone and completing the maiden gold pour at the Lakewood mill.” – Executive Director Richard Poole  

“Since acquiring ground in the East Menzies Goldfield, the company has moved rapidly to identify and commercialise resources, whilst maintaining a vigorous exploration strategy which has delivered some outstanding results for gold at Gigante Grande, and for nickel at Springfield.”

REZ’s near-term goal is to mine 120,000 tonnes of ore at an average grade of 2.3 grams per tonne (g/t) to produce 8,800oz of gold.

At today’s high Aussie dollar gold price, that would fetch roughly $21.1m, nicely boosting REZ’s coffers to help fund its continued exploration.

The original Granny Venn open pit, which was developed by Money Mining and Paddington Gold in 1997-1998, was based on a pit design optimised at a gold price of $454/oz. The gold price is now 5x that.

And making it even more lucrative for REZ is the fact that under the profit-sharing deal with BM Mining, REZ didn’t have to shell out a dime to get Granny Venn back in operation, with BM Mining covering the $3m capital outlay required.

The initial production campaign is scheduled to be completed in late December.

 


 

 

This article was developed in collaboration with Resources & Energy Group, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post REZ levels up with maiden Granny Venn gold pour appeared first on Stockhead.


Author: Special Report

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Energy & Critical Metals

Lithium darling Vulcan Energy calls a halt in the wake of J Capital short report

Activist short seller J Capital Research has put ASX market darling Vulcan Energy (ASX:VUL) in its cross hairs, calling the … Read More
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Activist short seller J Capital Research has put ASX market darling Vulcan Energy (ASX:VUL) in its cross hairs, calling the company a “wannabe lithium miner” which “based highly optimistic assumptions for (its) project on work done by small consultancies that were owned by management and acquired by Vulcan.”

Vulcan Energy, J Capital — game on

Vulcan owns the Zero Carbon Lithium Project in Germany’s Upper Rhine Valley, where it promises to produce both renewable electricity and lithium on a ‘carbon negative’ basis from deep geothermal wells.

Excitement around the project has seen Vulcan raise more than $300 million from investors this year alone, secure lithium offtake deals with Umicore and LG and bring Australia’s richest person Gina Rinehart on board as a backer.

The company’s shares are up more than 6,000% since its management engineered a reverse takeover of minerals explorer Koppar Resources, having dropped in recent weeks from a high of more than $16 — 80x Vulcan’s 20c share price in early 2020.

That market exuberance transferred through to Kuniko (ASX:KNI), an arguably run of the mill Scandinavian base metals explorer spun out of Vulcan that mooned on listing in August.

Vulcan has also been the subject of some scepticism. While it maintains both its component parts of geothermal energy generation and direct lithium extraction are well understood and existing commercial technologies, no geothermal lithium project has entered commercial production to date.

“They claim the project is a twofer: profitable geothermal power and “green” lithium,” J Capital’s Tim Murray wrote in the note, titled ‘Vulcan: God of Empty Promises’.

“Neither assertion is likely to be true. ”

“Our research shows that the project may never actually get under way: the costs are higher than the company claims, output will be lower, the environmental impact is brutal enough that public outcry will block permits, as has happened before in the area, and the quality of the lithium resource is low.

“Many experts agree with us that this project is a non-starter.”

What was Vulcan’s response?

Pre-market indicators on Commsec suggested Vulcan, which was trading at $14.99 and a market valuation of $1.87 billion, was looking at 13% hit to its share price on the open this morning (now more like 10% according to Commsec).

It is now in a trading halt to prepare a detailed response to the J Capital Research note, after issuing a brief riposte this morning.

In it, Vulcan took aim at Murray’s background, as well as J Capital’s disclaimer that it plans to profit off shorting the stocks it reports on and does not hold an Australian Financial Services License.

“The report is authored by a Mr. Tim Murray, co-founder of J-Capital, who according to his own bio has lived in China for 19 years and has a degree in “Chinese Political Economy”,” Vulcan said.

“Based on his online profile, it is not apparent that Mr. Murray has any technical qualifications in geothermal energy or lithium extraction.”

“Mr. Murray’s report makes a large number of inaccurate statements and assertions regarding Vulcan and its Zero Carbon Lithium Project — in particular its Pre-Feasibility Study (PFS) published over nine months ago.

“Given the warning on J Capital’s website, it is clear the report is merely an attempt to profit from ‘shorting’ Vulcan.”

Vulcan went on to trumpet the “globally unique experience in geothermal energy project development and direct lithium extraction” across its 80 person team, saying it was committed to delivering the project.

“We are highly motivated towards achieving our goals of decarbonising these industries, and will always happily dedicate time and effort to answer any questions about our Zero Carbon Lithium Project that come from stakeholders with a genuine interest in the Company and the Project,” Vulcan claimed.

A more detailed response to the claims made in the J Capital report appears to be on its way.

What did J Capital claim?

J Capital claimed in its report that several positive claims made by Vulcan in its January pre-feasibility study were inflated. The PFS gave the Zero Carbon Lithium Project a 2.8 billion Euro NPV.

Murray said “assumptions in the PFS that beautify the project are easily disproved.”

He claims Vulcan has likely overstated its flow rates and recoveries in the PFS, and ignored evidence of community opposition to geothermal energy projects in Germany and adjacent regions of France.

He also criticised the use of Vulcan co-founder Horst Kreuter’s consultancy Geo-T, later purchased by Vulcan, in its PFS.

Murray claimed Kreuter received 1.5m performance shares on the successful completion of the PFS, and resigned as a director on March 25.

Vulcan also acquired Gec-co, which had worked on the PFS, having appointed its CEO and owner Thorsten Weimann as COO of Vulcan.

“Gec-co and GeoT provided a key assumption for the PFS, for flow rate, that is unrealistic,” Murray claimed.

“The recovery rate for lithium is also unrealistic. Realistic assumptions would halve the output of lithium and kill the commercial viability of the project.”

Among a litany of other claims, J Capital says Vulcan has published an unrealistic production schedule and is likely to face significant public opposition, something MD Francis Wedin said was not likely in an interview with Stockhead in July, and that geothermal wells often have a high failure rate.

Although it released a statement this morning, Vulcan requested a trading halt “pending an announcement to the market in order to prepare a response to an online report.”

Vulcan Energy share price today:

 

The post Lithium darling Vulcan Energy calls a halt in the wake of J Capital short report appeared first on Stockhead.





Author: Josh Chiat

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