Granite Creek Copper Ltd. (GCX:TSX.V; GCXXF:OTCQB) has revealed its 2024 exploration plans for its wholly-owned Carmacks copper-gold project in Yukon, Canada.
The program will include up to 1800 meters of diamond drilling, targeting new areas within one kilometer of the proposed pits identified in the 2021 Preliminary Economic Assessment (PEA).
The Gap, Sour Toe, and Zone 1213 targets, refined through Induced Polarity (IP) surveys, trenching, and soil sampling, will be the focus of these efforts.
Project Details
The Carmacks Project spans 177 square kilometers and boasts a significant resource base, including over 824 million pounds of measured and indicated copper equivalent (CuEq) metal and 29 million pounds of inferred CuEq metal.
Projects like this are important for meeting that demand and, as Visual Capitalist wrote, "Copper is naturally abundant on Earth, but extracting the metal at the pace necessary for an electrified economy could be a challenge. The timeline for bringing a copper mine from discovery to production is lengthy, averaging over 16 years."
The resource is classified under National Instrument 43-101 and consists of 36.2 million tonnes grading 1.07% CuEq (0.81% Cu, 0.31 grams per tonne gold (g/t Au), and 3.41 g/t silver (Ag)).
The project's accessibility is enhanced by its location along the Freegold Road, which is undergoing upgrades by the Yukon government, and its proximity to the Yukon grid and within the Minto Copper Belt, an 80-kilometer-long belt known for high-grade copper-gold-silver mineralization.
The Gap target is situated between the 2000 and 147 zones and is believed to be a fault offset of these zones.
Previous shallow drilling by other operators has left the area largely unexplored, with no pierce points in the modeled geophysical volume. The target exhibits a strong IP anomaly, modeled using a Resistivity Scaled Chargeability (RSC) technique, which shows a response nearly twice as strong as the 147 Zone.
Located approximately 800 meters from the 147 zone, the Sour Toe target is a new discovery identified through IP surveys and further validated by trenching and soil sampling. The target extends over a strike length greater than 200 meters, as seen across two IP lines.
The Demand For Copper
The demand for copper continues to rise, and, as CNBC pointed out in January, "Some of the major factors driving the growth of this market include the upgrading of living standards and the growing purchasing power of people, especially in developing economies.
This will propel the copper market," Acumen's report said. "The incredible growth in the number of electronic gadgets such as laptops, cell phones, smart devices, and television sets across the globe is increasing the demand for the product."
Projects like this are important for meeting that demand and, as Visual Capitalist wrote on May 8, "Copper is naturally abundant on Earth, but extracting the metal at the pace necessary for an electrified economy could be a challenge. The timeline for bringing a copper mine from discovery to production is lengthy, averaging over 16 years."
They went on to add, "Top producers like Chile and Peru are facing strikes and protests, along with declining ore grades. Russia, ranked seventh in copper production, faces an expected decline in production due to the ongoing war in Ukraine."
Catalysts for Granite Creek Copper
Granite Creek Copper has several catalysts that could drive the company's value and attract interest. The new exploration program at the Carmacks project is focused on high-potential targets, such as the Gap and Sour Toe targets, which were identified through comprehensive geophysical and geochemical surveys.
The discovery and definition of new resources within close proximity to the proposed pits could significantly enhance the project's overall value, according to the company.
Additionally, the recent rise in copper and gold prices has generated renewed interest in the sector, creating a favorable market environment for Granite Creek Copper.
The new exploration program at the Carmacks project is focused on high-potential targets, such as the Gap and Sour Toe targets, which were identified through comprehensive geophysical and geochemical surveys.
The company has discussed revisiting its 2023 PEA given not only the significant increase in metals prices but, more importantly, the great increase in metallurgical recoveries of oxide copper announced earlier this year.
"The current test results show a total recovery of 88% for oxide material is possible, an increase of 48% over the PEA base case. These results will have a significant impact on the economics of the project as the PEA identified an additional US$180 M of NPV5% value by increasing the life of mine average recovery for copper from 64% to 77%," the company noted.
Tim Johnson, President and CEO, stated, "Recent positive price action in the metals, specifically copper and gold, has brought new interest to the sector. This, paired with the exploration upside at Carmacks, creates the phenomenal opportunity to increase shareholder value."
The strategic location of the Carmacks project along an upgraded Resource Gateway Road and its proximity to the Yukon grid and within the Minto Copper Belt provide significant logistical advantages, potentially reducing future development costs and timelines.
Ownership and Share Structure
Streetwise Ownership Overview*
Granite Creek Copper Ltd. (GCX:TSX.V; GCXXF:OTCQB)
According to Reuters, insiders own 5.74% or 9.23 million shares of Granite Creek Copper.
One of the five insiders is the Chairman of the Board, President and CEO Timothy Johnson, with 2.54% or 4.08 million shares.
The other four, all directors, are Robert Sennott with 1.87% or 3.01 million shares, Michael Rowley with 1.06% or 1.71 million shares, John Cumming with 0.26% or 0.42 million shares, and Loy Chunpongtong with 0% or 0.01 million shares.
The company does not have any institutional investors.
Retail investors own the remaining 94.26%.
Granite Creek has 161 million shares outstanding and 151.77 million free-float traded shares.
The company's market cap is CA$7.23 million, and it trades in a 52-week range of CA$0.03 to CA$0.08 per share.
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Important Disclosures:
- Granite Creek Copper Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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