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Sell-Side Research Started On Copper Mining Co.

The Quick Take

Zacks Small-Cap Research has a $2.03 per share target price on World Copper.
Zacks SCR initiated coverage on World Copper in light of its…

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This article was originally published by The Gold Report

The Quick Take

  • Zacks Small-Cap Research has a $2.03 per share target price on World Copper.
  • Zacks SCR initiated coverage on World Copper in light of its 2022 work plans to increase its overall resource base, the impending closing of its acquisition of Cardero Resource/the Zonia project and upcoming catalysts, reported analyst Steven Ralston in a Jan. 12 research note.
  • World Copper has three assets:
    • The Escalones copper-gold porphyry-skarn project in Chile, the Main zone of which has an updated Inferred mineral resource of about 426,200,000 tons of copper oxide ore, grading 0.367% copper.
    • The Zonia copper-oxide project in Arizona (pending the imminent acquisition closing), for which a preliminary economic assessment (PEA) was done in 2018 but now is obsolete.
    • A 100% earn-in option on the Cristal copper porphyry property in Chile.
  • To grow its overall resources, World Copper plans to do the following work, which could result in share price increases as it is completed:
    • Fast track a PEA on the Main zone at Escalones.
    • Conduct a small initial drill program at the Mancha Amarilla target, south of the Main zone, once permits are received, to grow the Escalones resource.
    • Explore three prospective targets north of the Main zone at Escalones: Rio Negro (priority No. 1), Argüelles East and Argüelles.
    • Commission an updated PEA on the newly acquired Zonia project.
    • Explore the prospective northeast copper porphyry target at Zonia.
    • Drill two holes at Cristal in the areas of anomalies identified on geophysical surveys.

World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQB) aims to increase shareholder value by acquiring and advancing copper projects, and it is doing just that, according to Zacks Small-Cap Research analyst Steven Ralston.

For one, the copper explorer is advancing its Escalones project and doing so “in a novel direction,” the analyst wrote. Rather than pursuing it as a precious metals project focusing on the sulphide mineralization like historical owner-operators have done, World Copper is approaching it as an oxide copper project given that the copper oxide overlies the sulphide mineralization.

This approach is more economical and environment friendly, Ralston pointed out. Mining shallow copper-oxide ore, via open pit with a lower strip ratio, is more cost effective than mining deeper copper sulfide ore. Also, heap leaching can be used to process oxidized ore, and it is less expensive and greener than the alternative.

As for the Zonia project, Copper World’s he acquisition of it is slated to close soon. Once it does, the new owner plans to focus on advancing it as well.

Though Escalones and Zonia are the company’s main focus now, management plans to carry out some exploration work at Cristal this year, too. As for its earn-in option on this project, once World Copper pays the requisite tranches through January 2025, it will grant a 30% stake of Cristal to New Energy Metals and hold the remaining 70% interest.

Disclosures:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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. 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., a company mentioned in this article.

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The following disclosures relate to relationships between Zacks Small-Cap Research (“Zacks SCR”), a division of Zacks Investment Research (“ZIR”), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe.
ANALYST DISCLOSURES: I, Steven Ralston, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
INVESTMENT BANKING AND FEES FOR SERVICES: Zacks SCR does not provide investment banking services nor has it received compensation for investment banking services from the issuers of the securities covered in this report or article.
Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm engaged by the issuer for providing non-investment banking services to this issuer and expects to receive additional compensation for such non- investment banking services provided to this issuer. The non-investment banking services provided to the issuer includes the preparation of this report, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per-client basis and are subject to the number and types of services contracted. Fees typically range between ten thousand and fifty thousand dollars per annum. Details of fees paid by this issuer are available upon request.
POLICY DISCLOSURES: This report provides an objective valuation of the issuer today and expected valuations of the issuer at various future dates based on applying standard investment valuation methodologies to the revenue and EPS forecasts made by the SCR Analyst of the issuer’s business.
SCR Analysts are restricted from holding or trading securities in the issuers that they cover. ZIR and Zacks SCR do not make a market in any security followed by SCR nor do they act as dealers in these securities. Each Zacks SCR Analyst has full discretion over the valuation of the issuer included in this report based on his or her own due diligence. SCR Analysts are paid based on the number of companies they cover. SCR Analyst compensation is not, was not, nor will be, directly or indirectly, related to the specific valuations or views expressed in any report or article.
ADDITIONAL INFORMATION: Additional information is available upon request. Zacks SCR reports and articles are based on data obtained from sources that it believes to be reliable, but are not guaranteed to be accurate nor do they purport to be complete. Because of individual financial or investment objectives and/or financial circumstances, this report or article should not be construed as advice designed to meet the particular investment needs of any investor. Investing involves risk. Any opinions expressed by Zacks SCR Analysts are subject to change without notice. Reports or articles or tweets are not to be construed as an offer or solicitation of an offer to buy or sell the securities herein mentioned.
CANADIAN COVERAGE: This research report is a product of Zacks SCR and prepared by a research analyst who is employed by or is a consultant to Zacks SCR. The research analyst preparing the research report is resident outside of Canada, and is not an associated person of any Canadian registered adviser and/or dealer. Therefore, the analyst is not subject to supervision by a Canadian registered adviser and/or dealer, and is not required to satisfy the regulatory licensing requirements of any Canadian provincial securities regulators, the Investment Industry Regulatory Organization of Canada and is not required to otherwise comply with Canadian rules or regulations.

( Companies Mentioned: WCU:TSX.V; WCUFF:OTCQB,
)

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Resources Top 5: Stocks roar to life as gold punches through $US1,840/oz

Gold price surges ~$US30/oz overnight to highest since November last year Rox Resources increases Youanmi gold resource to 3Moz Gold … Read More
The…

  • Gold price surges ~$US30/oz overnight to highest since November last year
  • Rox Resources increases Youanmi gold resource to 3Moz
  • Gold stocks Navarre, Discovery Alaska up on no news
  • Nickel-cobalt explorer NiCo Resources now up 210% since listing yesterday

Here are the biggest small cap resources winners in early trade, Thursday January 20.

 

NICO RESOURCES (ASX:NC1)

(Up on no news)

This advanced nickel-cobalt explorer has enjoyed a rocket-propelled launch into listed life, up 210% since listing at 12pm AEDT yesterday.

Part of the reason is commodity focus — nickel and cobalt are both in very high demand, with tight supply and strong fundamentals underpinning high prices.

The other part is probably the flagship project, Wingellina, which is more advanced than most.

A pre-feasibility study developed by parent company Metals X (ASX:MLX) indicated that the laterite project should support an initial 40-year mine life at production rate of 40,000tpa Ni and 3,000tpa Co.

“We believe Wingellina has the potential to be a Tier 1 project,” NiCo, MD Roderick Corp says.

“A lot of the hard work was already done by Metals X, which is why they want to maintain exposure.

“Given the extensive development, in a project hosting some key commodities, we had no problem filling the book.

“And historically, the project has generated significant interest from major battery metals players including POSCO and Samsung.”

 

DISCOVERY ALASKA (ASX:DAF)

(Up on no news)

The stock formerly known as Discovery Africa has – you guessed it – changed its geographical focus.

DAF’s main game is now the 199.4sqkm ‘Chulitna’ project in Alaska which “hosts numerous prospect areas identified from historical works, which are prospective for gold, silver, copper, tin and base metals”.

It is also is on Stockhead’s list of bargain barrel stocks looking for a new project, with the company stating that it would “continue working to identify and review other new projects that may complement … current activities”.

DAF’s last announcement of substance was way back on November 3, when it reported results up to 73.9g/t gold and 1500g/t silver from a maiden surface sampling program at Chulitna.

“The company is encouraged by the exploration sampling results achieved at the Partin Creek prospect during this phase of work and will now prepare next stage follow up works with the aim to identify priority sites for subsequent potential drilling works,” it said at the time.

The $9m market cap stock is up 33% over the past month and flat over the past year. It had about $1.5m in the bank at the end of September, with the exercise of options in December giving it an additional $640,000.

 

ROX RESOURCES (ASX:RXL) and VENUS METALS (ASX:VMC)

After seven months of drilling (~35,000m) RXL has increased its total resource at the ‘Younami’ project (70% RXL, 30% VMC) by a whopping 1.34Moz to 3Moz.

Discovery costs come it at an ultra-low $7/oz – an exceptional result, RXL says.

The bulk of the new gold is from the high grade ‘Deeps’ target, which now has resource of 2.195Moz grading 6.89g/t.

There are more upgrades to come, the company says, with some drilling from the last few months of 2021 still to be incorporated in the overall resource.

“We took the decision to provide an interim updated resource estimate given the very long assay turnaround times being experienced of up to 14 weeks in some cases,” RXL MD Alex Passmore says.

Rox continues to trade at very low enterprise value per attributable resource ounce metrics calculated currently at $22 per ounce, he says.

“Youanmi mine feasibility studies continue with early mine planning results feeding back into targeted infill drilling areas for continued conversion of inferred material into indicated categories.

“We also continue to work on grass roots exploration activities in areas outside the immediate Youanmi mine area with the intent of making new discoveries in the region.”

The $75m market cap stock is up 36% over the past month. It had $10.7m in the bank at the end of September.

 

NAVARRE MINERALS (ASX:NML)

(Up on no news)

A direct beneficiary of increasing gold and silver prices.

Last week, the recently minted miner said the recently acquired Mt Carlton operation was already outperforming forecasts.

The Queensland project produced 14,603oz of gold, 100,781oz of silver and 610t of copper during the December quarter.

If NML sustains this for FY22 it places Mt Carlton’s performance above the top end of the vendor’s forecast in August 2021.

Evolution Mining (ASX:EVN) — which sold the project to NML last year for an upfront cost of $40m — originally estimated Mt Carlton would produce 45,000oz to 50,000oz at an all-in sustaining cost (AISC) of between $1,650 and $1,700 per ounce in FY2022.

That’s a very attractive margin at current gold prices of $2,538.97/oz.



The post Resources Top 5: Stocks roar to life as gold punches through $US1,840/oz appeared first on Stockhead.

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Azure kicks off Barton exploration, eyes extension of neighbouring Puzzle North gold discovery

Special Report: Azure Minerals has kicked off exploration at the Barton gold project in WA, with 3,000m of RC drilling … Read More
The post Azure kicks…

Azure Minerals has kicked off exploration at the Barton gold project in WA, with 3,000m of RC drilling targeting extensions of  Genesis Minerals’ (ASX:GMD) new Puzzle North gold discovery.

The target is gold mineralisation at Daisy Corner – immediately adjacent to Puzzle North – where previous exploration intersected anomalous gold mineralisation of 7m at 1.26g/t gold from 42m (YAB13).

Barton borders several growing gold deposits and significant gold projects, including Genesis’ Ulysses Gold Project (1,608,000oz gold resource); and Saturn Metals Ltd (ASX:STN): Apollo Hill Gold Project (944,000oz gold resource).

The first holes in Azure Minerals’ (ASX:AZS) initial program will be collared immediately to the north of the Azure-Genesis tenement boundary.

The company also plans to complete an aircore drilling program to follow up untested, soil- covered structurally-controlled gold targets.

Pic: Barton Project showing areas of gold prospectivity.

Andover diamond drilling underway

Azure has also restarted diamond drilling on its flagship Andover nickel-copper project (60% Azure/40% Creasy Group).

To date, two separate zones of massive, semi-massive and matrix nickel-copper sulphides have been identified at VC-07 West, where drilling is planned to define these mineralised zones and potentially move into a mineral resource drill-out phase.

The company also plans to complete additional drilling at several bedrock-hosted EM conductors – which represent high-priority drill targets.

 


 

 

This article was developed in collaboration with Azure Minerals Limited, 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 Azure kicks off Barton exploration, eyes extension of neighbouring Puzzle North gold discovery appeared first on Stockhead.





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Base Metals

NickelX marks out new nickel targets ahead of further drilling at Cosmos South

Special Report: A large, highly conductive feature has been defined at Cosmos South, in a nickel-rich producing belt dominated by … Read More
The post…

A large, highly conductive feature has been defined at Cosmos South, in a nickel-rich producing belt dominated by BHP and now IGO with the $1.1 billion takeover in progress of Western Areas Limited (ASX:WSA).

New high-priority geophysical nickel targets have been defined at NickelXs’ recently acquired Cosmos South project, 20km north of BHP’s world-class Leinster nickel operations within the prolific Wiluna Greenstone Belt in Western Australia.

Surface EM data re-processing has defined a large, highly conductive feature at less than 100m from surface and suggests the conductor may extend south beyond the limits of the MLEM data coverage.

NickelX
Cosmos South project location. Pic: Supplied

NickelX (ASX:NKL) says the modelled plate from both MLEM and FLEM data is coincident with magnetic lineaments observed from regional aeromagnetic data over the project location.

A ‘very strong’ nickel target on our hands

Managing director Matt Gauci says Cosmos South represents a “very strong” nickel target.

“The recently completed geophysical data re-processing has successfully defined a near surface, large, highly conductive feature with the company now progressing shareholder approval, magnetic surveys and drilling contracts to progress this target,” he said.

Despite being surrounded by major nickel miners, M36/580 has undergone very limited exploration to date.

Areas of outcropping-subcropping bedrock to the south and north of M36/580, on the other hand, have undergone considerable exploration, resulting in the discovery of nickel mineralisation to the immediate south at the Taurus, Sir Samuel and Sir Tristram prospects.

M36/580 is almost entirely covered by transported alluvial deposits and no systematic drilling has been undertaken on the tenure.

Maiden drilling in March quarter

Upon shareholder approval, NickelX intends to conduct a detailed drone airborne magnetic survey over the entire tenement to better delineate the magnetic strata representing continuations of the ultramafic komatiite lithologies that host nickel mineralisation to north and south of M36/580.

This information will be critical for drill hole planning, the company says, and for targeting the most promising parts of the interpreted conductor/ultramafic package.

A maiden drill program consisting of four diamond drill holes is expected to begin in the March quarter 2022.

 


 

 

This article was developed in collaboration with NickelX, 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 NickelX marks out new nickel targets ahead of further drilling at Cosmos South appeared first on Stockhead.



Author: Special Report

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