Copper remains a hot market today, currently priced above USD$4 per pound. But the long-term prospects for this key base metal are even more exciting.
Copper boom likely to last for decades, prompting a global hunt for new supply
Indeed, an S&P Global report from last year predicts that by 2050 annual copper demand will exceed all the copper consumed in the world from 1900 – 2021, combined.
For this reason, many investors will want to begin their own “global hunt for new supply”. That means looking for prospects among the junior copper exploration companies – the mining companies tasked with making the copper discoveries of tomorrow.
The Market Herald has already introduced investors to one intriguing option among these junior exploration companies: Geologica Resource Corp. (CSE:GRCM).
A previous Market Herald feature went into greater detail on both the bull market for copper and Geologica’s flagship Topley Copper Gold Project.
The geology of the 3,414-hectare Topley Property, located in central British Columbia, bears some striking similarities to the Mt. Milligan copper-gold mine, operated by Centerra gold. Mt. Milligan, also located in B.C., hosts proven reserves of 736 million pounds of copper and 1.84 million ounces of gold.
Specifically, Topley shows the potential for an epithermal, VMS deposit. And the Project is proximate to other past-producing copper mines in British Columbia, including Granisle, Bell and Huckleberry.
Geologica has been busy with preliminary exploration work on the Topley property. This builds on historical drill results that identified mineralization on the property including copper, gold, lead, zinc and molybdenum.
The Company has now completed both its Geophysical survey and Geochemical sampling on Topley.
On March 21, 2023, Geologica announced the cumulative results of 182 soil samples from Topley, which included two new soil anomalies. This builds on the 515 soil samples previously collected on Topley in 2020.
Sample assays reveal “apical anomalies” with respect to both copper and gold mineralization. Some of both the copper and gold anomalies “show synergy” with the redox zones identified in the geophysics survey.
Analysis of these samples has identified four “kilometer-scale potential redox zones” that exhibit “halo anomalies”. The news release explained the significance of this.
Typically, the SGH VMS class is expected to show halo anomalies that delineate Redox conditions in the overburden that can approximate the VMS mineralization that may be present at depth.
Exploration geologists are mineral detectives looking for clues. Like good detectives, when they combine the evidence they have gathered it often results in additional insights.
On April 6, 2023, Geologica released its analysis of the combined geophysics and geochemical results [text link]. Not surprisingly, combining these two databases has produced some interesting results.
Of particular interest is the area where overlapping copper and gold anomalies overlie the redox/VMS zones in the southwest section of the property between the magnetic lows.
Geochemical Anomalies in Relation to Magnetic Lows
“Overlapping copper and gold anomalies”.
Mineralization found in soil samples can indicate the presence of larger concentrations beneath the surface. Geophysical anomalies are also suggestive of larger concentrations of mineralization.
Put the two clues together, and Geologica now has some very interesting exploration targets as the Company prepares for its spring exploration program at Topley.
Accessible by provincial highway (as well as all-season logging roads), the Topley Project is also proximate to a city, as well as an airport and deep-sea port.
With the price of gold once again cresting above $2,000 per ounce, copper-gold projects currently offer investors especially strong upside potential with the discovery of any significant mineralization.
Geologica Resource Corp trades on the Canadian Stock Exchange (GRCM) as well as on the FSE (862) and Stuttgart Exchange (A2QQBC). With less than 25 million shares outstanding, its share structure will appeal to more experienced investors.
Mining company share prices remain depressed even as metals like copper and gold continue to experience raging bull markets, providing strong value propositions for investors. Geologica offers exposure to these metals markets, at a very compact entry point.
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