ADVERTORIAL
Unexpected Source Of The Next Big Copper Discovery
Editorial Feature | Oct 10, 2023
An unexplored region in the jungles of Oaxaca, at the site of an ancient volcanic eruption, could yield a mountain of high-grade copper.
Initial exploration results hint at what could be a promising new discovery, with exploration beginning in earnest this Fall.
When it comes to copper, there’s very little history left be written.
It’s been years since a substantial new deposit has been found.
In fact, the amount of new copper deposits discovered during the past 15 years, 143 metric tons, is less than was discovered in 1991 alone.1
And, as you’d assume, the mismatch between discoveries and the forecast for demand looks set to squeeze supply.
As you’re about to see, such a supply crisis could slam the brakes on the transition to clean-energy. Stop it cold.
That’s why the first time David Jones laid eyes on a mountain in Oaxaca, Mexico, he felt an electric charge course through his veins.
He was on a new road that had been carved into Oaxaca’s unexplored interior.
And he was certain that he was the first geologist to lay eyes on this mountain.
Moreover, Jones had a world-famous nose for metals, because, as history has proven, he was seldom wrong.
Identifying Riches At The Site Of Ancient Volcanic Eruptions
The jolt Jones felt was because what he saw hinted at the potential for a vast new copper mine. A mine that would potentially yield some gold as well.
Had this mountain been in a less remote location, it would likely have been discovered years ago.
Jones had a right to be excited. He was already an internationally renowned geologist, and believed Oaxaca would be the site of a project worthy of his nickname…
“The Mine Finder.”
It was a nickname well known across the industry, a reputation built on the breakthrough geology modeling system he developed.
In essence, the model predicted where rich deposits would develop within formed volcanos.
Geologists called these mineral-rich zones Volcanogenic Massive Sulfide belts.
Not long after, Jones’ model was credited with leading the discovery of the Los Filos mine in Mexico.
With a total resource of 7.43 million ounces, it’s one of the world’s largest gold mines. Los Filos also has a 52.54-million-ounce silver resource.
Los Filos and David Jones were instrumental in Equinox Gold’s current $1.5 billion market cap.
He also created the geological model responsible for multiple discoveries in what is now known as the 20-million-ounce Guerrero Gold Belt in Mexico.
And, when you do an internet search for David Jones, you’ll find a number of memorials that celebrated his legacy as a renowned geologist.
The memorials, sadly, are because he passed before a spade could be sunk into his prized Oaxaca find.
That was before the test results from some of his gossan samples came back at 10% copper. That’s more than 100 times better than at least 13 major copper mines are yielding right now.2
And it’s a two to four times better grade than today’s top-grade open pit copper mines, such as Las Cruces mine in Spain, Kinservere in the Democratic Republic of the Congo, or the Antas mine in Brazil.3
The company Jones founded to explore this territory now holds his mineral leases that form two separate properties in what was once remote Oaxaca.
The company has two copper projects…
- The Riqueza Marina project is sizable – 30,000 acres, or about 46.5 squares miles
- And the Zaachila project covers about 29,900 acres, or 12.6 square miles.
And they have just completed initial exploration of its vast Riqueza Marina project.
The earliest trenching and grab samples are cause for excitement.
A larger batch of trench samples are at the laboratory now. Those results are due in November, according to the company.
That’s ideal timing, considering the billions of dollars now being funneled towards the total overhaul of global energy infrastructure.
“The Metal Of Electrification”
Demand for copper is being driven by the same phenomenon that has sent markets for lithium, nickel, cobalt, and graphite soaring.
It’s all in the efforts of modernizing the U.S. energy grid, as well as driving the shift to cleaner, more sustainable sources.
From expanding access to EVs and laying a network of charging stations, to supplementing the grid with solar and wind generated power – each of these steps is going to require large amounts of copper.
Just take a look at wind power. It alone is the reason the world will quickly need to double its copper mining output to 50 million metric tons a year.
- A single wind turbine today has an installed capacity of 3 megawatts. Each megawatt needs three metric tons of copper. That’s nine tons per single turbine.4
- In the U.S. alone, in 2023, there were wind 40 projects under development that will deliver 47,606 megawatts, and an additional 5,039 MW of potential capacity in the planning stage. That means this year’s demand for copper was 157,935 metric tons of copper.5
- Global Energy Monitor only tracks wind projects larger than 10 gigawatts. And a gigawatt is equal to 1,000 megawatts. There are currently 1,807 planned wind-generated gigawatts across the globe. They’ll need close to 1,000 tons of copper… and this is just a start.6
- There are 447,000 megawatts of planned offshore wind power by 2032. But offshore means miles and miles of copper cable for each turbine to deliver it power to shore. That means 31 tons of copper for every 3 megawatts, or about 4,620 tons.7
The World’s Economic Forum says there could be as many as 350 million EVs on the road across the globe by 2040.8
The EVs alone will require somewhere in the neighborhood of 31.5 million tons of copper.
At 176 pounds a piece, there’s about twice as much copper in an average EV as there is lithium. The lithium weighs in at only about 80 pounds.9
Then keeping them powered will take about 490 million chargers – that’s the total between home as well as public sources.10
The world will need 365,700 tons of copper to support that number.11
This is why resource experts are largely bullish on copper.
Mark Lewis, the chief sustainability strategist at BNP Paribas Asset Management, was just as bullish. He told The Guardian, “It feels like any market you look at investors want to buy.” Lewis went on to say that the next 30 years should be copper’s “super cycle” thanks to a worldwide acceptance of clean and green energy.12
Daniel Major, an analyst at Swiss bank UBS, said the roll-out of electric cars and shift to cleaner energy will be “the key megatrend” driving for copper in the years ahead.
S&P Global’s IHS Market reported, “copper demand is projected to grow from 25 million metric tons a year in late 2022 to about 50 million metric tons by 2035.”
And that record-high level of demand will continue to grow to 53 million metric tons by 2050.
That’s why a new-to-the-market company could find themselves on Wall Street’s radar quickly, should November’s news reveal promising initial results.
That signals the point where this company will begin major exploration of their 46-square mile Riqueza Marina project.
Aggressive Exploration Program Planned For Fall
Already, David Jones and his team have made a preliminary pass through both the Riqueza Marina and Zaachila properties, producing 847 rock samples, 766 soil samples, 1,124 gravity stations and 93 line-kilometers of magnetics.
Jones then hand-selected five high-potential target areas based on the geology, geochemistry, and geophysics.
Those are the five targets that will be drilled this fall.
At this point you may be wondering…
What was it about the Riqueza Marina and Zaachila projects that made Jones so excited?
There are two answers.
Geology is the first. As mentioned earlier, Riqueza Marina and Zaachila are Volcanogenic Massive Sulfide structures.
VMS deposits are widely considered to be some of the richest sources of base metals such as copper. They can also produce economic amounts of gold and silver.13
The second reason Jones was excited, as noted, Riqueza Marina and Zaachila are in a remote part of Oaxaca.
Jones may not have been the first human to lay eyes on them, but he was likely the first expert VMS geologist to explore them.
80% Stake In A Working Chilean Copper Mine
If its Oaxaca properties weren’t enough, the company upped its profile in June when it agreed to purchase an 80% interest in a working Chilean copper mine and smelter.
Known as the Illapel Copper project, it’s a low-altitude, 30-square mile property with superb infrastructure.
The Illapel project is just 8.5 miles south of the El Espino Copper-Gold project, which is a $490-miIlion undertaking that’s being developed by Chilean-based Pucobre.
Illapel Copper currently produces about 300 tons of copper a day.
But, because it’s a working mine, the property is already permitted and is ready for immediate drilling exploration.
If exploration proves fertile, it plans to expand the mine.
Because it has barely started to explore its Oaxaca, Mexico properties, it has no results yet, but its agreement to buy a working copper mine is a lucrative twist on a junior explorer story.
If you are intrigued, then now is the right time to do your due diligence on this company.
Enter your email address below to download their corporate presentation, and be the first to receive updates from the company.
1https://www. usgs.gov/faqs/how-much-copper-has-been-found-world
2https://www.google.com/search?q=low+copper+grades&client=firefox-b-1-d&sca_esv=566617571&ei=1NIJZYPoKuSkqtsPtvegwAs&ved=0ahUKEwiDopiqkreBAxVkkmoFHbY7CLgQ4dUDCA8&uact=5&oq=low+copper+grades&gs_lp=Egxnd3Mtd2l6LXNlcnAiEWxvdyBjb3BwZXIgZ3JhZGVzMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjIIEAAYFhgeGA8yCBAAGIoFGIYDSJ00UMoKWNwscAF4AZABAJgBoQGgAaUMqgEEMC4xMrgBA8gBAPgBAcICChAAGEcY1gQYsAPCAggQABiJBRiiBMICBRAAGKIEwgIKECEYoAEYwwQYCsICCBAhGKABGMME4gMEGAAgQYgGAZAGCA&sclient=gws-wiz-serp
3https://www.mining.com/the-worlds-top-10-highest-grade-copper-mines/
4https://www.americanexperiment.org/wind-turbines-require-nine-tons-of-copper-which-is-the-weight-of-an-average-school-bus/
5https://www.energy.gov/articles/us-department-energy-projects-strong-growth-us-wind-power-sector
6https://globalenergymonitor.org/projects/global-wind-power-tracker/
7https://oilprice.com/Latest-Energy-News/World-News/Offshore-Wind-Requires-63000lbs-Of-Copper-Per-Turbine.html
8https://www.weforum.org/videos/350-million-electric-vehicles-could-be-on-the-road-by-2030-can-chargers-keep-up
9https://www.reuters.com/business/autos-transportation/innovation-evs-seen-denting-copper-demand-growth-potential-2023-07-07/#:~:text=Copper%20has%20been%20seen%20as,a%20typical%20combustion%20engine%20vehicle.
10https://www.weforum.org/videos/350-million-electric-vehicles-could-be-on-the-road-by-2030-can-chargers-keep-up
11https://about.bnef.com/electric-vehicle-outlook/
12https://www.theguardian.com/business/2021/feb/17/mining-boom-commodity-supercycle-copper-nickel-price-investments-clean-energy 13https://www.mining.com/web/everything-need-know-vms-deposits/
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