Fabled Copper Corp. (FABL:CSE) announced it has received its permit to drill on its Muskwa project, where fieldwork has found several high-grade copper (Cu) samples, including one that was a "staggering" 29.3% Cu.
The Mines Act Permit allows Fabled to drill from 15 stations over two years on the Neil property, one of three that make up the project. In particular, it focuses on the Davis Keays Eagle Vein area, which the company said is its first priority interest.
"The critical sphere for high-grade copper deposits is shrinking, and the Eagle Vein area certainly will deliver copper results in our 2024 drill program," Fabled President and Chief Executive Officer Peter Hawley told Streetwise Reports on Tuesday.
"Subject to funding being available, the company wishes to embark on a helicopter-supported diamond drill program consisting of 3,000 — 5,000 meters on the First Priority Davis Keays Eagle Vein," Hawley continued in a release. "This will be the first-ever known surface drilling of the Eagle Vein area."
"Subject to funding being available, the company wishes to embark on a helicopter-supported diamond drill program consisting of 3,000 — 5,000 meters on the First Priority Davis Keays Eagle Vein," Hawley continued in a release. "This will be the first-ever known surface drilling of the Eagle Vein area."
Muskwa is in northwestern British Columbia near the Yukon border. It consists of the Toro, Bronson, and Neil claim blocks. All three were explored in the early 1970s before rockslides and snowfields arrested further development. One vein was developed and partly mined — 498,000 tons were milled with a head grade of about 3% Cu, an important metal for the switch to clean energy.
On the same day as the 29.3% Cu sample, 11 other samples were collected over an altitude of 158 meters. Of the 12 collected, 11 assayed greater than 0.5% Cu, seven greater than 10% Cu, and four greater than 20% Cu.
The fieldwork at the project, which mapped a total of 19 areas, also found one sample of 27.2% Cu.
"The question is not if we will intercept the Eagle vein given our target accuracy is 3 (centimeters), BUT how many copper-bearing veins will we intercept before hitting the Eagle Vein," Hawley said. "Not only is the potential upside redefining the Eagle vein ore body but also evaluating the Eagle vein below the current 5,800 (foot) level and the potential of the parallel veins sets evaluated during the 2022 work program.”
Verifying the Historical Estimate
A feasibility report was done by the Davis Keays Mining Co. in 1990, setting out a six-year, 365,000-tons-per-year mining life for the Eagle Vein based on 60 cents per pound of copper.
Fabled cautioned that the report was not carried out using current categories of resources or reserves under National Instrument 43-101, and a qualified person has not classified the estimate as a current resource.
"We gotta find more copper," newsletter writer Rick Mills wrote.
Fabled said that for this earlier study, over a period of three months, 8 feet high by 9 feet wide passages were driven into the vein, and crosscuts were excavated for underground diamond drilling above and below the levels.
The report outlined proven reserves of 1,007,360 tons grading 3.56% copper, probable reserves of 562,320 tons grading 3.18% copper, and possible reserves grading 3.18% copper.
"The company is not treating the historical estimate as a current resource," Fabled wrote in a release. "The company’s proposed 2024 drill program will seek to begin the process of verifying the historical estimate and exploring the Eagle Vein."
The Catalyst: 'We Gotta Find More Copper'
The demand for copper is expected to double from about 25 million metric tons (Mmt) in 2021 to about 50 Mmt by 2035, according to a report last summer by S&P Global. Electric vehicles (EVs), their charging infrastructure, solar panels, wind, and batteries all require much more copper than fossil fuel-based technology.
The world's largest copper companies are expanding their mines or looking for new deposits.
"We gotta find more copper," newsletter writer Rick Mills wrote.
Copper prices haven't moved much since spiking earlier this year, but BMI analysts believe deficits could still grow at an extreme pace over the coming decade as the demand for clean energy grows, predicting prices of US$11,500 per ton by 2032. Copper's price was US$8,280.35 per ton" on Tuesday.
"In the longer term, we expect the copper market to remain in deficit as the green transition accelerates along with the demand for 'green' metals, including copper," BMI's analysts said, according to Stockhead.
"In the longer term, we expect the copper market to remain in deficit as the green transition accelerates along with the demand for 'green' metals, including copper," BMI's analysts said, according to Stockhead.
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 long-term, analysts have 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."
"Deeper electrification requires wires, and wires are primarily made from copper," the report said.
Streetwise Ownership Overview*Billionaire Robert Friedland, founder and executive co-chairman of Ivanhoe Mines Ltd., told Bloomberg that he fears copper prices could jump tenfold eventually.
"We're heading for a train wreck here," he said.
Ownership and Share Structure
According to Yahoo Finance, about 3% of the company is held by insiders. They include Director Luc Pelchat with 1.19% or 210,000 shares, David Smalley with 0.86% or 150,000 shares, and President and CEO Hawley with 0.65% or 110,000 shares, Reuters said.
The rest, 97%, is retail.
Fabled Copper's market cap is CA$761,000, with 21.75 million shares outstanding, 21.28 million of them floating. It trades in a 52-week range of CA$0.20 and CA$0.025.
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Important Disclosures:
- Fabled Copper Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Fabled Copper Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fabled Copper Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- 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.
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