Copper Company Launches Maiden Drilling as Demand for Copper Exceeds Supply

Blackwolf Copper and Gold Ltd. (BWCG:TSX.V) has announced the launch of its maiden drill program at the Cantoo Mountain project in Southwestern Alaska. The Cantoo project is adjacent to the Premier gold mine, which is currently in redevelopment, and near the Canadian border. Initial drill holes from the project could be more than 700m to test the multiple structures present. The current program marks the first exploration effort on the site since the 1920s, and the first ever diamond drill program to be conducted with the goal of testing multiple stacked shallow-dipping vein structures and breccia. This includes a 30m wide vein.

During preliminary sampling, Blackwolf uncovered a significant 30m vein exhibiting high-grade results of up to 30.4 g/t gold (Au), 2,860 g/t silver (Ag), and 5.8% copper (Cu) outcropping at surface. The initial drill program is planned to cover up to 2,000m in four drill holes over a 1.5 month period with initial results expected early September.

"It looks like it is about to start higher again because following the reaction back, a Head-and-Shoulders bottom of lesser magnitude than the one we observed earlier has formed as an intermediate base pattern and since this pattern looks close to being complete, a breakout into another upleg looks set to occur soon."

According to Morgan Lekstrom, the CEO and director of Blackwolf, "We are proud to commence this drill program, a testament to our commitment to unlocking the potential of this promising location. Cantoo stands out as one of the most compelling untested drill targets in the Golden Triangle. Notably, it lies just approximately 600 metres away from the Premier mine on the Canadian side of the border. As we know, geology transcends boundaries and borders, and in this prolific region, which is also home to the renowned Brucejack mine (acquired in 2021 for $2.8-billion) and numerous other significant mining endeavours, we are poised to unveil the hidden treasures that lie beneath its surface."

Blackwolf has also announced that it has retained PI Financial Corp. to trade the Blackwolf's securities on the TSX Venture Exchange for the purposes of maintaining an orderly market. In consideration of the services provided by PI, the company will pay PI  a monthly fee of CA$5,000 for a minimum term of six months and renewable thereafter. PI and Blackwolf are not related or affiliated, and PI will not receive shares or options as compensation. The capital used for market making will be provided by PI.

Demand for Copper Sky High

Demand for copper has been pushed upwards by carbon neutral goals. Renewable energy and electric infrastructure require large amounts of copper to construct. According to Rick Mills of Ahead of the Herd, "Electric vehicles, now a fast-rising source of demand, use over twice as much copper as gasoline-powered cars, which contain about 30 kg. Not to mention, there is more than 180 kg of copper in the average home, reminding us just how indispensable the metal really is. Adding it all up, demand for copper is going to be staggering as we look ahead into the future."

Company on the Upswing

The technical analyst Clive Maund has rated Blackwolf as a "speculative buy." According to Maund, "it looks like it is about to start higher again because following the reaction back, a Head-and-Shoulders bottom of lesser magnitude than the one we observed earlier has formed as an intermediate base pattern and since this pattern looks close to being complete, a breakout into another upleg looks set to occur soon."

The company has placed high priority on the drilling of wide high grade veins on the Cantoo project. The company also seeks to develop the spoke polymetallic mine and mill concept at Kitsault between Blackwolf, Dolly Varden, and three other companies.

Ownership and Share Structure

Management and insiders own 24.67% of the company. Frank Giustra owns 19.65% of the company with 10.71 million shares, Robert John McLeod owns 4.23% with 2.31 million shares, Jessica Van Den Akker owns 0.60% with 0.33 million shares, and Morgan Lekstrom owns 0.19% with 0.10 million shares.

Institutions own 11.17% of the company. Crescat Capital, LLC, owns 9.32% of the company with 5.08 million shares, and U.S. Global Investors, Inc. owns 1.83% with 1.00 million shares, and American Money Management, LLC owns 0.02% with 0.01 million shares.

Frank Giustra represents a strategic investor.

The company has CA$8.5 million in the bank as of August 4, 2023.

There are no reported potential sellers or warrants overhang.

The company does not work with any IR firms. It does work with the influencer Alex Deluce of Gold Telegraph. Niall Tomlinson of Coulier Capital provides news coverage and analysis of the company.

There are 54.51 million shares outstanding, with 40.92 million free float traded shares. The company has a market cap of CA$12.32 million. It trades in the 52 week period between CA$0.20 and CA$0.49.

Important Disclosures:

1.  Blackwolf Copper and Gold Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Blackwolf Copper and Gold Ltd.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.