Junior Stakes Claims on Copper Gold Projects on Friendly Turf


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Copper costs are rising rapidly and the variety of junior exploration corporations searching for to journey the copper value wave grows by the day. One such firm has robust land positions in 4 mining pleasant states, an skilled exploration workforce, an enviable share construction, and is already delivering outcomes for shareholders.

Extra 652,000 shares modified fingers on Feb. 22 as Vancouver-based
copper and gold exploration firm Zacapa Assets Ltd. (ZACA:TSX.V) closed virtually 11% larger to CA$0.77 on information that the plucky copper and gold explorer had added 239 mining claims at its Purple Prime copper undertaking north of Superior, AZ, after the primary drill gap on Purple Prime hit “in depth” porphyry-style mineralization effectively beneath floor.

In January, drill gap RT-21-001 completed at a depth of 1,042 meters beneath the 800m deliberate finish of gap and subsequent evaluation confirmed vital indicators of porphyry-style alteration — a geological setting identified for giant, low-grade copper deposits.

That despatched Zacapa administration rapidly into motion to safe as a lot further land round Purple Prime because it might.

These efforts greater than doubled the land place to 431 unpatented claims overlaying roughly 34 sq. kilometers (34 sq. km). Now, additional drilling is underway.

“The exceptional success of our early drilling on the Purple Prime porphyry copper undertaking has generated appreciable curiosity, and our workforce acted rapidly to safe further potential floor within the space,” says CEO and Director, Adam Melnik. “Our land place offers ample room for our present and future exploration plans, and the main mining corporations exploring subsequent door are a testomony to the extremely potential floor.”

The Purple Prime porphyry copper undertaking is situated in Arizona’s Superior Mining District, about 8 km northwest of Decision Copper, a three way partnership co-owned by London-based mining titans Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) and BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK).

Decision Copper is trying to develop one of many largest porphyry copper deposits in North America — a useful resource of over 50 billion kilos of copper.

Zacapa not too long ago executed the same staking technique in Nevada the place administration added 136 mining claims overlaying about 11 sq. km at its wholly owned South Bullfrog gold undertaking within the Beatty District of Nevada’s Walker Lane Pattern, dwelling to a few of America’s most prolific gold mines.

In reality, extra gold is mined within the state of Nevada than in all however a handful of nations.

Courtesy of Zacapa Assets.

The junior’s claims add to its appreciable land bundle at South Bullfrog, and people claims even have well-heeled neighbors: AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) to the north and east, Augusta Gold Corp. (AUGG:OTCPK) to the west, and Coeur Mining Inc. (CDE:NYSE) to the southeast.

Aside from including claims at South Bullfrog, Zacapa additionally carried out an induced polarization (IP) geophysical survey, stream sediment sampling, in addition to soil sampling.

The data from these applications, basically the primary steps of the exploration work, can be used to outline the highest-probability targets for a drill program beginning in Q2 2022.

“We now have accrued a big land place within the Beatty District positioning us effectively for our present and future exploration applications at South Bullfrog,” Melnik says.

South Bullfrog and Purple Prime are amongst six wholly owned exploration initiatives being superior by Zacapa. The others are: Pearl, a porphyry copper play south of Purple Prime in Arizona; Tomichi in Colorado, which already has a big porphyry copper moly useful resource; Dewdrop Moon, a porphyry copper property within the Yerington District of Nevada; and Miller Mountain, a gold undertaking in Idaho.

A Calculated Plan Paired With ‘Wholesome Commodity Costs’

Regardless of having its fingers full with six initiatives in 4 states that Canada’s Fraser Institute ranked within the prime 13 of worldwide mining jurisdictions, Melnik says it’s all by design.

“What was essential for us was that we noticed the chance to accumulate these incredible initiatives previous to the bull market, and it simply made the corporate a lot extra investible. As a result of in actuality we’re an exploration firm, and, statistically, all of those initiatives cannot work. However I assure you not less than one or two of them will,” Melnik advised Streetwise.

Zacapa’s success will probably be underpinned by wholesome commodity costs.

In a copper market outlook printed in October 2021, Goldman Sachs forecasted that copper will attain US$6.80/lb by 2025 (it’s round US$4.50/lb now) and transfer even larger by 2030 as demand exceeds provide by as a lot as 25%, or some 8 million tonnes.

Melnik says the rising demand for copper is all a part of the “new power financial system,” which incorporates the scaling up and adoption of electrical autos, renewable power, and the associated power infrastructure — particularly in China, the place greater than 50% of all mined commodities are consumed. 

“The brand new power financial system may be very a lot framing the following supercycle, and there will be a variety of volatility, you already know, across the provide aspect,” commented Melnik, who as soon as was a analysis analyst with Canaccord Genuity in Toronto. “That is a variety of new copper that should come from someplace.”

Zacapa did a variety of boots-on-the-ground exploration work earlier than going public in late January. That meant it might increase its itemizing momentum with regular information movement (Zacapa has put out seven information releases since its IPO January 26), which helps hold its each day quantity at round 500,000 shares.

Younger Administration Crew Belies Its Trove of Expertise

The administration workforce is pushed, well-educated, and, maybe most notably, younger. The whole group is underneath 45 — in an business identified for its gray beards.

However Zacapa has expertise.

Vice President of Exploration, Dr. Tim McIntyre, joined Zacapa final 12 months at virtually the identical time as Melnik.

Earlier than that he spent 5 years working for Robert Friedland’s Ivanhoe Mines Ltd. (IVN:TSX; IVPAF:OTCQX) within the Democratic Republic of the Congo.

Most of that point included exploration and growth of the world-class Kamoa-Kakula copper deposit.

McIntyre additionally labored as a marketing consultant for Rio Tinto at its copper initiatives in Zambia.

He was somewhat accustomed to the nation’s copper deposits after finishing his PhD whereas finishing his thesis on First Quantum Minerals Ltd. (FM:TSX; FQM:LSE)’s Kansanshi copper-gold mine close to Solwezi, which produces extra copper than some other mine in Africa.

Technical Advisor Dr. Alain Wainwright additionally labored with Friedland at Ivanhoe’s legendary Oyu Tolgoi copper undertaking in Mongolia.

The Oyu Tolgoi copper undertaking is claimed to be the most important monetary undertaking in all of Mongolian historical past.

As well as, Wainwright is a co-recipient of British Columbia’s Affiliation for Mineral Exploration’s H.H. Spud Huestis Award for his function within the five-million-ounce Espresso gold discovery in Yukon. 

In the meantime, Dan MacNeil staked Zacapa’s South Bullfrog and Pearl initiatives.

View of Nevada Copper’s Pumpkin Hole copper mine from Zacapa’s Dewdrop Moon undertaking. 
Courtesy of Zacapa Assets.

 

MacNeil is an business veteran who has labored for Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) and Anglo American Plc (AAUK:NASDAQ).

He’s additionally the corporate’s certified individual underneath Nationwide Instrument 43-101.

“We’re a younger administration workforce. We have been empowered by the Board to go on the market and do our greatest work and actually personal these workstreams, and put money into these initiatives like homeowners,” explains Melnik. “It makes it actually thrilling, actually dynamic; we’re in a position to make use of a variety of new know-how and transfer in a short time, which has been tremendous essential in attempting to run exploration applications in the course of the pandemic.”

Zacapa’s Board boasts expertise, too. Director Marc Boissonneault was the previous Head of World Nickel Belongings for international commodities dealer Glencore Worldwide Plc (GLNCY:OTCMKTS); whereas chairman Ian Slater, a chartered accountant, was the Managing Companion of each Ernst & Younger’s Canadian and Arthur Andersen’s Central Asian mining practices.

Zacapa has about 50 million shares excellent with no excellent warrants and $5 million in money — sufficient to final a 12 months or so at its present burn fee. It hit a excessive of CA$0.77 on Feb. 22, after it listed at CA$0.50 lower than a month earlier.

“We have the workforce, the capital, and the momentum to exit and achieve our objectives and our plan, which we dedicated to buyers to ship on final 12 months,” Melnik advised Streetwise.

Learn extra about ZACA right here:

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Disclosures

1) Brian Sylvester compiled this text for Streetwise Stories LLC and offers providers to Streetwise Stories as an unbiased contractor. He or members of his family personal securities of the next corporations talked about within the article: None. He and members of his family are paid by the next corporations talked about on this article: None. His firm has a monetary relationship with the next corporations referred to on this article: None.

2) As of the date of this text, an affiliate of Streetwise Stories has a consulting relationship with Zacapa Assets Ltd. Please click on right here for extra info.  The data supplied above is for informational functions solely and isn’t a advice to purchase or promote any safety.

3) The article doesn’t represent funding recommendation. Every reader is inspired to seek the advice of along with his or her particular person monetary skilled and any motion a reader takes on account of info introduced right here is his or her personal duty. By opening this web page, every reader accepts and agrees to Streetwise Stories’ phrases of use and full authorized disclaimer. This text is just not a solicitation for funding. Streetwise Stories doesn’t render basic or particular funding recommendation and the knowledge on Streetwise Stories shouldn’t be thought-about a advice to purchase or promote any safety. Streetwise Stories doesn’t endorse or advocate the enterprise, merchandise, providers or securities of any firm talked about on Streetwise Stories.

4) On occasion, Streetwise Stories LLC and its administrators, officers, staff or members of their households, in addition to individuals interviewed for articles and interviews on the positioning, might have an extended or quick place in securities talked about. Administrators, officers, staff or members of their instant households are prohibited from making purchases and/or gross sales of these securities within the open market or in any other case from the time of the choice to publish an article till three enterprise days after the publication of the article. The foregoing prohibition doesn’t apply to articles that in substance solely restate beforehand printed firm releases. As of the date of this text, officers and/or staff of Streetwise Stories LLC (together with members of their family) personal securities of Zacapa Assets Ltd., Rio Tinto Plc, Barrick Gold Corp., and Coeur Mining Inc., corporations talked about on this article.

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