Copper has been in a reall copper bull market this year with prices hitting just shy of $5.00 per pound. That is the highest price in over a decade and by the looks of things, it has the potential to go a lot higher yet. I was reading somewhere, I can’t remember where exactly, but there are some analysts calling for another 50% rise in copper prices in the next year or so. Taking this into mind it might be time to follow a few junior copper plays that have some good upside potential.
One of the first copper juniors is Copper Fox Metals TSX-V: CUU. This company holds a diversified portfolio of copper assets which provide shareholders with investment exposure to projects at various stages of the copper industry. With two of the most advanced projects, Schaft Creek and Van Dyke, the company has ownership of significant quantities of copper, gold, molybdenum and silver.
Schaft Creek is a property that is 56,180 hectares in size and is one of the largest undeveloped porphyry copper-gold-molybdenum-silver deposits in North Amercia, located in the Golden Traiangle of BC. A 2021 PEA valuation reports a resource producing 5.0 B lbs of copper, 3.7 M oz of gold, 226.0 M lbs of molybdenum and 16.4 M oz of silver over a 21 year mine life.
The Van Dyke project is a 100% interest consisting of 531.5 hectares of mineral rights and 5.75 hectares of surface rights, located approximately 145 kilometers east of Phoenix Arizona. A 2020 PEA significantly increased the valuation to an IRR of 43.4%, producing 1.1 B lbs of copper over a 17 year mine life.
The company has three exploration projects as well. The Sombrero Butte and the Mineral Mountain both located in Arizona. The Sombrero Butte is a porphyry copper project, comprised of 1,179 hectares located in the Bunker Hill Mining District east of Mammoth Arizona and the Mineral Mountain porphyry copper project, which is comprised of 1,751 hectares located in the Mineral Mountain Mining District east of Florence, Arizona. There is also the Eaglehead property covering 15,956 hectares in the Dease Lake region of BC>
The second copper junior worth a look is Kutcho Copper TSX-V:KC. This junior holds the Kutcho property which is located east of Dease Lake in northern British Columbia. This project consists of one mining lease and 46 mineral exploration claims covering an area of approximately 17,060 hectares. This is a high grade copper zinc development project with 22.8 millions tonnes in the Measured and Indicated Category at 2.26% CuEq which is just over 1.1 billion pounds of copper equivalent.
Kutcho Copper has infastructure close by and is supported by Capstone Mining and Wheaton Precious Metals as major shareholders with a financing package of C$100 million of which over C$34 million already invested. News in October 2021 stated the company had provided a final progress report on the feasibility study for its project. The open pit and underground mining plans have been finalised, and an integrated production schedule that focuses on processing highest grade material early in mine life has been developed. This project has a forecast of a 12 year mine life.
The third copper junior to look at is Kodiak Copper TSX-V:KDK. Kodiak has a couple of projects. The first is the MPD project located within the Quesnel Trough of BC. This is a 14,716 hectare land package that is 100% owned by the company. This is the same copper producing belt that hosts Teck’s Highland Valley Mine, Imperial Metals Mount Polley Mine and Centerra’s Mount Milligan Mine. There has been a lot of historic drilling on the property. One of the best intercepts so far is 535 meters of 0.49% copper and 0.29 g/t gold which includes 282 meters of 0.70% copper and 0.49 g/t gold 1.16% CuEq, including 45.7 m of 1.41% copper and 1.46 g/t gold 2.75% CuEq. Mineralization traced to date to 800 meters depth, across a width of 350 meters and 800 meters in length.
The second property Kodiak has is the Mojave property which is located in Arizona. This is a copper molybdenum silver porphyry project which also is 100% owned by the company. The land area is just over 10 Sq KM is size. There were a couple of historic mines that operated on this property in the 1950’s and 1960’s. These were the Wikieup Queen copper mine and the Scott Fault mine. In 2011, eleven core holes were drilled. Highlights of historical drill results include: 59.4 meters grading 0.49% Cu and 70.7 meters grading 0.3% Cu, 0.01% Mo, and 2.54 g/mt Ag. There you have it. Three copper juniors that you can investigate and maybe even invest in if you are bullish on copper.
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Added note: The author of this article holds NO postions in ANY of the above companies listed above at the time of this writing. The author may buy or sell any time going forward.