Like it has every week for the last 15 weeks, Fabled Copper Corp. (FABL:CSE) on Wednesday released more surface fieldwork results from its Muskwa copper project in British Columbia.
The results from the fieldwork have been so good — including samples of 27.2% copper, 17.75% copper and 14.4% copper at some elevations — that some, like asset manager Chen Lin, said he "can't wait" for the company's drilling program to start.
The company said it has applied for the drilling permits and hopes to break ground in June.
"The sample results are the tip of iceberg," Chen told Streetwise Reports. "Only the drilling will tell. I expect them to drill this year and the results will have a high impact on the stock price. They are trading at the (initial public offering) price right now. It is very undervalued, I believe."
Fabled Copper traded at $0.05 per share on April 28. It split from Fabled Silver Gold Corp. (FCO:TSX; FBSGF:OTCQB; 7NQ:FSE) in December at a starting price of $0.06.
Red Metal Driving EV Future
A conductor of heat and electricity, copper is at the center of the electric vehicle (EV) and renewable energy future. Each EV uses as much as three times the amount of copper found in an internal combustion engine. Currently, there are no substitutes for copper in electrical applications, according to independent energy research company Rystad Energy.
Demand for the red metal, which is projected to rise 16% by the end of the decade, will outstrip its supply by more than 6 million tonnes by the end of the decade, the research company said.
"The increased demand for copper as a result of the burgeoning EV and green economy will provide a compelling catalyst for majors to replenish and grow their copper pipeline over the mid to long term," Red Cloud Securities Inc. mining analyst Taylor Combaluzier said in a Feb. 9 research note about another copper exploration company.
Copper has hit record highs since the pandemic began. Prices have risen 125% from their March 2020 lows, according to derivatives marketplace CME Group Inc. Reasons for the jump include slow growth in the mining supply, higher prices for crude oil and natural gas, the energy transition, a rebound in Chinese economic growth, and a worldwide boom in manufactured goods.
"While total discovered reserves of copper have continued to climb, the cost of extracting copper has been on the rise and a large part of that cost is energy," CME Group Executive Director and Senior Economist Erik Norland wrote.
'This Is Not Normal'
Like Chen, Fabled Copper President, Chief Executive Officer, and Director Peter Hawley is also excited by the results his company is seeing at Muskwa.
"This is not normal," Hawley told Streetwise Reports. "You don't get this much copper concentrated in one area."
The Muskwa Project in northwestern British Columbia near the Yukon border consists of the Toro, Bronson, and Neil claim blocks. All three were explored in the early 1970s before rockslides and snowfields arrested further development.
Fabled Copper said a total of 19 areas were mapped in Muskwa during the 2021 field season, and it is still reporting results from that campaign.
On April 12, the company said geophysical signatures from the air and the ground led it to investigate a possible extension about 1.5 km away from the Neil vein, where there had been no copper occurrences documented. Eight samples of mineralized quartz-carbonate float were collected at elevations of 1,475 meters to 1,600 meters, assaying from 0.71% copper to 10.55% copper.
"It's going to be followed up because it was late in the season," Hawley said. "It was one of these ones where it's pie in the sky, and let's see if we can find it. … So this data does work."
The success of the survey has led the company to increase its land holdings in the area by an additional 2,924 hectares.
Hawley said he is also excited because the copper at Muskwa may require less resources to extract than some other operations.
"Our copper occurrences are extremely high-grade," Hawley said. "They are in quartz veins which are 2 to 4 meters wide. … But it is concentrated in a much smaller form. I call it 'green copper' because your footprint can be very small when you're extracting it from the ground."
Fabled Copper Corp. trades in a 52-week range of $0.07 and $0.04 and has 341.4 million shares outstanding, fully diluted. Its market cap is $8.68 million.
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Disclosures:
1) Steve Sobek compiled this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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