Field Program Uncovers Potential for Copper, PGMs, and Clean Hydrogen

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Granite Creek Copper Ltd. (GCX:TSX.V;  GCXXF:OTCQB) has concluded a comprehensive field program at its Star project, located within the Polaris ultramafic complex in British Columbia, Canada. The rock and soil sampling program focused on assessing the potential for copper-nickel-platinum group metals (PGMs) mineralization in dunite-rich areas of the project. In addition to sampling for traditional metals, Granite Creek is collaborating with New England Research Inc. (NER) to study the feasibility of producing geologic hydrogen (Geo H2) from subsurface rock formations at Star. This research effort lines up with a U.S. Department of Energy-funded US$1.5 million initiative within the Advanced Research Projects Agency-Energy (ARPA-E) program.

Granite Creek President Tim Johnson noted, "Geologic hydrogen is an exciting new field with the potential to significantly lower the cost of hydrogen production and assist in de-carbonization of some hard-to-mitigate industries," adding that the company's Star project has potentially the right geological setting for this innovative new technology. 

NER, a Vermont-based R&D firm, will use these samples to enhance lab testing and model development, aiming to optimize stimulation techniques for hydrogen extraction. Dr. Gregory Boitnott, Vice President of Technology at NER, highlighted the collaboration's potential, noting in the news release that "the samples provided by Granite Creek offer a unique opportunity to apply our developing technologies to Alaskan-type ultramafic intrusions, an area that may support economically viable clean hydrogen production."

Geologic Hydrogen 

According to CNBC, "Geologic hydrogen, sometimes referred to as white or natural hydrogen, refers to hydrogen gas that is found in its natural form beneath Earth's surface. It is thought to be produced by high-temperature reactions between water and iron-ich minerals", in particular those hosted within the same ultramafic rocks which often host nickel, cobalt, and the PGMs.

The article cautions that GeoH2 is in a very early stage; however, it points out that the U.S. Department of Energy launched a US$20 million program to advance efforts at achieving the natural subsurface generation of hydrogen, stating "the energy resource could potentially produce zero carbon emissions when burned or used in a fuel cell." 

Digging Into Copper

As Ahead of the Herd observed on October 5, the copper market recently saw a price rally, with prices reaching US$10,000 per tonne on September 30, marking a significant milestone as it pushed toward the record-high US$5.20 per pound set in 2021. This surge has been attributed to both reduced copper stocks in Shanghai and China's recent announcement of a substantial economic stimulus on September 24, which injected further optimism into copper's demand trajectory.

Reflecting copper's role in future technologies, BHP's chief commercial officer Rag Udd noted in the report, "As we look towards 2050, we foresee global copper demand increasing by 70% to reach 50 million tonnes annually," driven by both current and emerging applications, especially in support of global decarbonization goals. The article also cited BloombergNEF's Transition Metals Outlook, which pointed out that the scale of raw materials required for a net-zero future may call for up to US$2.1 trillion in infrastructure investment by 2050 to meet anticipated demand. BloombergNEF also projected that transportation's share of copper demand could nearly double by 2040, spurred by electric vehicle (EV) adoption, which highlights copper's essential role in the shift to renewable energy sources.

The 2024 Copper Market Report by Precedence Research underscored copper's indispensable role in critical sectors, projecting the market to reach around US$548.20 billion by 2034. Growth is anticipated globally, particularly in North America, which is poised to be the fastest-growing region over the next decade, fueled by demand in advanced industries like automotive, electronics, and renewable energy.

A forecast by Watcher.Guru on September 25, echoed these statements, writng, "Copper prices are skyrocketing in the charts," driven by a bullish market response following an interest rate cut, alongside increased demand for copper in Q4 2024.

In parallel with the copper market's growth, green hydrogen has emerged as a critical area of innovation. As Carboncredits.com reported on October 15, electrolyzer capacity for hydrogen production has reached 20 gigawatts globally, with China accounting for over 40% of recent final investment decisions and producing 60% of global electrolyzer manufacturing capacity. Analysts at S&P Global Commodity Insights projected that by 2030, electrolysis-based hydrogen production in China could be more cost-effective than hydrogen from coal, assuming continued project investment and policy support. However, the IEA highlighted that demand-side incentives, such as carbon contracts and sustainable fuel quotas, will be crucial for green hydrogen's growth and the sector's alignment with climate goals.

Granite Creek's Catalysts

Granite Creek's entry into the Geo H2 field could expand its resource portfolio beyond traditional metals. This collaboration with NER on geologic hydrogen allows for a focus on low-emission technologies. The company has positioned the Star project for potential advancements by diversifying into this emerging energy resource, which may attract additional investment and government support.

Further catalysts include continued exploration at the high-grade Carmacks copper-gold project in Yukon, Canada, where 2024 drilling results are pending. According to Granite Creek's investor presentation, the Carmacks project offers promising economic potential with projected high recovery rates for copper, a critical metal for renewable energy technologies.

Ownership and Share Structure

According to Refinitiv, insiders own 6.29% of Granite Creek Copper, including the CEO Johnson with 2.56%. The next top two, both directors, are Robert Sennott with 2.01% and Michael Rowley with 1.37%.

The company does not have any institutional investors. Retail investors own the remaining 93.71%.

Granite Creek has 198.27 million shares outstanding and 185.79 million free-float traded shares. The company's market cap is CA$3.97 million, and it trades in a 52-week range of CA$0.02 to CA$0.06 per share.