Copper Junior Renews Permit, Adds 80 Drill Sites

Universal Copper Ltd. (UNV:TSX.V; ECMXF:OTC; 3TA2:FSE) announced that its exploration permit for its flagship Poplar copper project in British Columbia has been renewed for five years.

The company said it has added 80 drill sites focused on the Poplar deposit in the current permit area, following up on a reinterpretation by Vector Geological Solutions Inc. of the deposit's mineralization by testing new targets outside the resource.

Universal said the permit renewal will enable it to conduct infill drilling and bring "a significant portion" of the current inferred resource of the metal vital to the new clean energy economy to indicated resource.

"Vector's thorough review and reinterpretation of the Poplar deposit database has generated several new and exciting target areas within the Poplar mineralized footprint that are ready for drill testing, and we anticipate they will significantly enhance Poplar," said President and Chief Executive Officer Clive Massey. "Our confidence in the strength of copper prices, driven by market demand, further bolsters our commitment to this endeavor."

The world needs more copper for electric vehicles (EVs) and other green technology. EVs use more than three times as much of the red metal as gas-burning cars. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles, analysts say.

"Based on industry-wide capital intensity data, we calculate that some US$196 billion of investment will be required," a market analysis issued by RFC Ambrian last year said. "Of this, US$80 billion is for greenfield projects, and US$116 billion is for brownfield projects, of which US$71 billion is simply for replacement capacity. A further US$35 billion of investment will be required to close the supply gap."

An S&P report called copper "one of the most underappreciated critical minerals." 

"Deeper electrification requires wires, and wires are primarily made from copper," the report said.

Billionaire Robert Friedland, founder and executive co-chairman of Ivanhoe Mines Ltd., recently told Bloomberg that he fears copper prices could jump tenfold.

"We're heading for a train wreck here," he said.

The Catalyst: A Chance for More Discoveries

The more than 61,000-hectare Poplar project hosts a current undiluted indicated mineral resource of 152.3 million tonnes grading 0.32% copper (Cu), 0.009% molybdenum (Mo), 0.09 grams per tonne gold (g/t Au), and 2.58 g/t silver (Ag). It also has an undiluted inferred mineral resource of 139.3 million tonnes grading 0.29% Cu, 0.005% Mo, 0.07 g/t Aug, and 4.95 g/t Ag. The estimate has a cut-off grade of 0.20% copper.

The project lies in a historic mining region, the company said, about 35 kilometers from the Huckleberry Mine and 42 kilometers from Equity Silver Mine. The property is road-accessible, bisected by a hydro-electric line, and is 88 kilometers from the railhead at Houston and 400 kilometers from the deep-water port Prince Rupert by rail.

Universal anticipates a second exploration permit next year for 50-line kilometers of ground-induced polarization (IP) surveying and 80 more drill sites at peripheral targets, including the Copper Pond southeast of the Poplar deposit.

"The Universal technical team has reviewed and compiled the historic geophysical, geological, geochemical and drilling information into a refined database, producing several high-quality drill targets," the company noted in a release.

The company said that since porphyry copper deposits usually exist in clusters, there's a good chance there are more pockets of resources on the property.

"We believe that there are numerous opportunities at any one of these outlying targets to discover anywhere from another 2 to 3 billion pounds," Massey told The Dales Report.

'One of the Most Underappreciated Critical Minerals'

EVs use more than three times as much copper as gas-burning cars. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles, analysts said.

"Based on industry-wide capital intensity data, we calculate that some US$196 billion of investment will be required," a market analysis issued by RFC Ambrian said. "Of this, US$80 billion is for greenfield projects, and US$116 billion is for brownfield projects, of which US$71 billion is simply for replacement capacity. A further US$35 billion of investment will be required to close the supply gap."

The S&P report called copper "one of the most underappreciated critical minerals." 

"Deeper electrification requires wires, and wires are primarily made from copper," the report said.

The world's largest copper companies are expanding their mines or looking for new deposits.

"Bottom line? We gotta find more copper," newsletter writer Rick Mills wrote.

Ownership and Share Structure

According to Reuters, about 4% of the company is held by institutions, including Palos Management Inc. with about 4%. About 1% of the company is with strategic entities. The rest is retail.

Other top shareholders include directors Ian Richard Harris with 0.49%, James Joseph Hyland with 0.33%, and Brandon Rook with 0.11%, Reuters said.

Universal Copper's market cap is CA$2.13 million with 142 million shares outstanding. It trades in a 52-week range of CA$0.04 and CA$0.01.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Universal Copper Ltd.
2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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