District Copper Corp. (TSX- DCOP); (OTC: CAXPF) Offers Investors High Upside Potential in Today’s Red-Hot Copper Bull Market
The explosion in global demand for electric vehicles has touched off bull markets for a wide range of metals – with lithium and cobalt more than doubling in value over the past two years.
But lithium and cobalt are far from the only metals poised to soar as more electric vehicles hit the roadways.
Copper is also in the midst of a potential long-term bull market thanks to heavy demand from developing nations, electric vehicle production and the “green revolution.”
“The Electric Car Revolution Will Need a Lot of Copper”
One North American exploration company – focused on exploring and developing copper, gold and silver properties – appears well-positioned to help investors take advantage of the surge in copper demand in the months ahead.
With a potentially world-class property in a rapidly-emerging copper district in northern British Columbia, District Copper Corp. (TSX- DCOP); (OTC: CAXPF) is beginning to attract a great deal of investor attention – and for good reason.
I’ll tell you more about District Copper’s extraordinary Eaglehead project in just a moment. First let me explain…
Why Copper Prices Are Likely to Continue Climbing Higher
The primary reason for soaring copper prices is quite simple:
Electric vehicle manufacturers – including Tesla – simply cannot produce their electric cars without copper.
The average American car contains about 55 pounds of copper wiring.
But an electric car requires about 165 pounds of copper – roughly triple the amount – with more than 88 pounds of copper in the batteries alone.
The only problem with this surge in demand for copper production is…we’re headed for a supply-demand crisis.
“Experts: Copper demand will surpass supply earlier than expected, with the first clear signs coming as early as next year.”
This imminent supply crunch – combined with seemingly unstoppable demand for electric vehicles – means that bringing new supplies of copper online quickly is a global priority.
Any exploration company that shows signs of significant copper production potential could generate a great deal of attention in the market.
Thanks in large part to this surge in demand from electric vehicle production alone, copper prices have risen more than 59% since early 2016.
But that surge might just be the beginning of a long-term spike.
According to industry giant Codelco – the Chilean state-owned mining company – copper prices could test record highs above $10,000 per metric ton within the next 12 months.
This scenario in the copper markets means that exploration companies like District Copper Corp. (TSX- DCOP); (OTC: CAXPF) offer high upside potential for investors looking to take advantage of the red-hot copper bull scenario.
District Copper’s Eaglehead Project: Five Large Mineralized Zones in a Proven Mineral District
District Copper Corp. (TSX- DCOP); (OTC: CAXPF) offers investors an opportunity to invest in a company exploring a potential world-class resource property in a district with proven mineral production in British Columbia.
The company’s Eaglehead project – located in northwest British Columbia – is one that was previously overlooked and never properly explored.
But recent exploration work shows that Eaglehead could contain a substantial amount of copper – with five large mineralized zones open to expansion and a number of untested large exploration targets.
A preliminary resource estimate – conducted back in 2012 – showed an inferred resource containing 102.5 million tons grading 0.29% copper, 0.01% molybdenum and 0.08 g/t gold.
In 2012, Roscoe Postle Associates (RPA) completed a technical report on the Eaglehead project that included an independent resource estimate on the Bornite and East zones.
The work was based on the use of 56 diamond drill holes (19,814.50 m) out of a total of 74 holes drilled on the zones. The NI 43-101 technical report is dated June 29, 2012, and was prepared by Messrs. McDonough, P.Geo and Rennie, P.Eng as Qualified Persons.
The resources were estimated at a cut-off grade of 0.16% copper equivalent (“CuEq”) and constrained within a pit shell.
120 of 126 drill holes completed on the property intersected porphyry style copper mineralization – and preliminary metallurgical tests show 90% copper, 78% gold and silver and 71% molybdenum recovery.
An eight kilometer-long mineralized corridor was identified – with a six kilometer-long chargeability anomaly showing good correlation to copper mineralization.
District Copper Corp Eaglehead project is one that…
- Is located in region with a proven history of mineral production…
- Has excellent infrastructure including road access, electrical power and accessible seaport facilities…
- In in a stable, mining-friendly jurisdiction…
- And could – at this very moment – be significantly undervalued thanks to a misperception about the potential size of the resource.
About that last point – the potential size of the resource…
Could District Copper’s Eaglehead Project Be the
Next Schaft Creek?
The Schaft Creek copper project – owned by Teck Resources Limited (NYSE: TECK) and Copper Fox Metals (TSXV: CUU); (OTC: CPFXF) – is a large copper deposit that is also located in northern British Columbia.
The Schaft Creek deposit has been estimated to hold a Measured and Indicated Resource of 1,228.6 million tons grading 0.26% copper, 0.017% molybdenum, 0.19 g/t gold and 1.69 g/t silver.
And the Red Chris project – also in northern British Columbia – has been estimated to hold 847 million tons grading 0.31% copper, 0.27 g/t gold and 1.01 g/t silver.
Many of District Copper’s experts on the ground in British Columbia feel that the Eaglehead resource could prove to be significantly larger than the 102.5 million tons that were estimated back in 2012.
This is because a number of targets on the property have not yet been either fully explored or properly examined – and many people feel that the resource is capped because of the 2012 estimates.
But back in 2014, Copper Fox Metals (TSXV: CUU); (OTC: CPFXF) invested heavily in District Copper Corp. (TSX- DCOP); (OTC: CAXPF)…and the company now owns 45.6% of District Copper’s common shares.
Copper Fox Metals invested in District Copper Corp. (TSX- DCOP); (OTC: CAXPF) because they liked the 6 kilometer-long geological target at Eaglehead – and they feel that as the Eaglehead property is further explored, the size of the resource could potentially be significantly upgraded.
Should this prove to be the case – and the Eaglehead resource is shown to be much larger than the 2012 estimate – the potential exists for a project similar in size and scope to Copper Fox’s Schaft Creek project – one that could become a significant acquisition target in a short period of time.
The “Perfect Storm” for Exploration Success?
With soaring demand for electric vehicles driving copper prices sharply higher, the environment for exploration success is favorable.
Simply put, exploration companies that show the potential for establishing significant copper resources quickly will attract the attention of both individual investors as well as major producing companies.
District Copper Corp. (TSX- DCOP); (OTC: CAXPF) is right now in a prime position to take advantage of this favorable environment. Not only does the company have a potential world-class resource at its Eaglehead property, but its management team has a history of success in the resource space – including a history of attracting the attention of potential M&A partners.
This management team includes:
Elmer B. Stewart, P.Geol, MSc. – Chairman and Director
Mr. Stewart has over 42 years of domestic and international experience in mining and exploration for gold, uranium, base metals and copper. During his career, he has been involved in the financing and acquisition of a number of gold projects as well the development and construction of two underground mines and the construction and operation of three open pit gold mines. With approximately 30 years of experience at the senior management level for various companies listed on the TSX and TSX Venture Exchange, he is currently the Chairman, CEO and President of Copper Fox Metals Inc.
Jevin Webes – President, CEO and Director
As President, CEO, and a Director of Carmax Metals Inc. since 2010, Jevin Werbes brings over 20 years of experience in both mineral exploration and corporate finance/securities. Previously, Mr. Werbes provided capital market and corporate development services to Longview Capital Partners Inc. (2006 – 2008) and served as a Director, and eventually President & CEO, of Ansell Capital Corp. (2009 – 2014). As well, he served on the Board of Directors of Plicit Capital Corp. and was Chairman of the Board of Cobalt Power Group. Currently, Mr. Werbes provides investor relations, corporate development, management, and finance services to other issuers through his personal holding company, Calico Management Corp.
Braden Jensen, C.A. – Chief Financial Officer
Mr. Jensen is a Chartered Accountant, with a Bachelor of Commerce degree from the University of Victoria. Mr. Jensen began his career and training with KPMG LLP. He was in the public practice sector for six years, concentrating in commodities-based accounting and tax prior to entering the resource sector where he has been responsible for reporting on exploration and operations. Mr. Jensen is currently the Chief Financial Officer of District Copper Corp.
Cam B. Grundstrom, BSc. Eng – Chief Operating Officer
Mr. Grundstrom, is a mining engineer with 36 years of operating and development experience in key management positions in large mining projects in Canada, USA, and overseas. His 36-year career included assignments in world-class underground and open pit mines where he led teams in attaining production records while ensuring safe and efficient operations. Most recently, Mr. Grundstrom served as Vice President – Operations with Copper Fox Metals Inc., where he was part of the team to take the Schaft Creek Project through to a positive feasibility study. Most recently, Mr. Grundstrom served as Vice President – Operations with Copper Fox Metals Inc.
Chris Healey, P.Geo – Director
A professional geologist licensed in Saskatchewan and British Columbia, Chris Healey earned a Bachelor of Science degree in geology from the University of Wales in 1968. Mr. Healey brings over 48 years of experience in the natural resources industry, covering all aspects, from early stage exploration through development to production. His expertise covers a wide variety of mining methods, including narrow vein precious and base metals. Beginning his career with International Nickel Company (now Vale Limited), he went on to work with Cameco Corporation – the world’s largest uranium producer. Most recently, Mr. Healey was President & CEO of Titan Uranium Inc., a Tier One TSX.V listed company, where his responsibilities included the permitting of a major mine and mineral recovery facility. As well, Mr. Healey has served as the national president for the Geological Society of Canadian Institute of Mining, Metallurgy and Petroleum and has published several papers on resource and reserve evaluations.
5 Reasons Smart Investors Should Consider Adding Shares of District Copper Corp. (TSX- DCOP); (OTC: CAXPF)
- 1
The electric vehicle boom – combined with world economic growth – has triggered an explosion in demand for copper, for example: each electric vehicle requires three times as much copper as traditional vehicles.
- 2
This surge in demand comes at a time when supply is limited – and this supply-demand imbalance has already touched off a rise in copper prices that is projected to continue through 2020.
- 3
District Copper Corp. (TSX- DCOP); (OTC: CAXPF) offers investors an opportunity to invest in a company exploring a potential world-class resource property in a district with proven mineral production in British Columbia.
- 4
The company’s Eaglehead project was estimated in 2012 to hold 102.5 million tons grading 0.29% copper along with additional gold, molybdenum and silver metal credits – but experts believe that the resource may in fact be much larger…and work is ongoing to determine the scope of the adjustment needed for that estimate.
- 5
District Copper Corp. (TSX- DCOP); (OTC: CAXPF) is led by a team of proven professionals with a history of success in the resource space – including a history of attracting the attention of potential M&A partners.
[2] https://jalopnik.com/ever-wondered-how-much-copper-goes-into-electric-cars-1692424366
[3] http://www.mining.com/copper-supply-crunch-earlier-predicted-experts/
[4] https://news.metal.com/newscontent/100764413/codelco-actual-shortage-to-raise-copper-price-above-10000-per-tonne