World Copper Ltd. (WCU:TSX.V;WCUFF:OTCQX) is updating the preliminary economic assessment (PEA) on its Zonia copper oxide project in Arizona, reported Zacks Small-Cap Research analyst Steven Ralston in a July 21 research note. Completion of the report, expected in H2/23, should catalyze the company's stock.
392% Implied Return
Accounting for World Copper's other two projects, in Chile, Escalones and Cristal Copper, along with Zonia, Ralston noted Zacks has a CA$0.59 per share target price on the junior mining company. Its current share price, in comparison, is CA$0.12 per share.
The difference between these two prices implies a compelling potential return for investors of 392%.
Changes to Previous Assumptions
The most recent PEA on Zonia was completed in April 2018, relayed Ralston. Only privately owned land was encompassed in it, and the copper price used was US$3 per pound.
The new PEA will differ in two significant ways, Ralston wrote. One, it will include estimated resources on all land in the area, such as properties owned by the U.S. Bureau of Land Management and by the state of Arizona. This will increase the resource size.
"Management expects to expand the estimated resource by 30% to 50%," Ralston wrote.
Two, World Copper will use an updated copper price, which is about US$1 per pound higher than in 2018. Copper is currently trading at about US$4 per pound.
Further drilling is not needed or being done to complete this PEA.
"Until the investment environment improves, exploratory activities are being limited to desktop studies for the remainder of 2023," Ralston wrote.
What To Watch For
In addition to the completion of the updated Zonia PEA, another stock-moving event on track for World Copper in H2/23 is the pursuit of permitting for Escalones.
Next year, plans call for doing a prefeasibility study of the Zonia Main deposit and conducting metallurgical testing at Escalones, and both are potential catalysts.
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Important Disclosures:
- World Copper Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Zacks Small-Cap Research, World Copper Ltd., July 21, 2023
The following disclosures relate to relationships between Zacks Small-Cap Research (“Zacks SCR”), a division of Zacks Investment Research (“ZIR”), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe. ANALYST DISCLOSURES I, Steven Ralston, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
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