Energy Metals News Commentary
Issued on
behalf of Usha Resources Ltd.
VANCOUVER, Aug. 9, 2024
/CNW/ -- USA News Group - Energy
Metals News – At the beginning of 2024, Forbes was
reporting on a showdown between the
United States and China
over a dwindling copper supply, as prices soared. Now with the rise
of artificial intelligence (AI), the tech sector is getting
hungrier for more copper, with AI recently helping to find millions
of tons of it in Zambia.
Despite a small price slump over the last few months, there are
still analysts confidently expressing bullish sentiment for
copper over the long term, with Citigroup predicting
further price increases. Looking ahead, the US copper supply is set
to grow by 4% in 2024, while other developments from copper miners
will look to ease shortage fears with new supplies as global demand
is projected to skyrocket. Among the miners currently making
progress are developers and producers, including Usha Resources
Ltd. (TSXV: USHA) (OTC: USHAF), Southern Copper
Corporation (NYSE: SCCO), Metals Acquisition Limited
(NYSE: MTAL), Taseko Mines Limited (NYSE-American: TGB)
(TSX: TKO), and Ero Copper Corp. (NYSE: ERO) (TSX: ERO).
Critical energy transition metals developer Usha Resources
Ltd. (TSXV: USHA) (OTC: USHAF) recently entered the copper
space after executing an option for the right to purchase an
undivided 100% interest in the Southern Arm copper property
from Abitibi Metals. The move comes after Usha
entered an LOI to divest up to 90% interest in its Jackpot
Lake lithium asset for US$26,025,000—a transaction that would give
Usha a return-on-investment of over 1,300% after only spent
approximately US$1.835 million on
acquiring and developing Jackpot Lake since 2022.
Wasting no time on its new copper asset, Usha began
August by commencing fieldwork on the drill-ready Southern Arm
Copper-Gold VMS Property. The program is part of the option
agreement that Usha signed with Abitibi Metals to
earn 100% of the asset over 2 years, beginning with a
biogeochemical survey on the property.
Situated in the prolific Abitibi Greenstone Belt, the Southern
Arm property features a ~7.3 km conductive copper-gold trend along
the regional Bapst fault within the volcanic rocks of the
Brouillan-Fenelon Group. This area includes the nearby Selbaie Mine
(~15 km southwest), which produced 53 million tonnes at 0.96% Cu,
1.9% Zn, 0.58 g/t Au, and 40.7 g/t Ag. Additionally, Abitibi
Metals' B26 Deposit (~16 km southwest) boasts an indicated
resource of 6.97 million tonnes at 2.94% Cu equivalent (1.32% Cu,
1.80% Zn, 0.60 g/t Au, and 43 g/t Ag).
"We are excited to apply modern and novel exploration techniques
to the Southern Arm Property to penetrate the thick overburden
cover that has deterred previous explorers," said Deepak Varshney, CEO of Usha Resources.
"The Southern Arm property is exceptionally well-positioned for the
Abitibi's next major discovery, and we are working closely with the
region's most successful exploration team at Abitibi Metals
Corp. Our planned exploration program will apply techniques
that have proven their applicability in the Abitibi mining
district, but have not previously been applied to this ground. This
work will help us finalize drill target within the Hollywood Trend,
prior to our fully funded maiden drill program, for which planning
has already begun."
Usha states that the biogeochemical survey aims to
identify additional priority targets prospective for high-grade
gold and copper mineralization. These targets will be included in
the Usha's maiden drill program set to begin this
coming fall.
"Our strategic vision at Usha has always been to acquire and
monetize undervalued assets," said Varshney. "With working capital
of approximately $1.2M,
Usha is in a strong financial position to execute over
the coming year and we look forward to our maiden drill program at
Southern Arm, particularly at "Hollywood", which has a ~1.8 km footprint that
is open along strike."
Recently in July, Southern Copper Corporation (SCC)
(NYSE: SCCO) released its Q2 2024 and H1 2024 financial results,
which included a 35.5% increase in net sales year-over-year to
~$3.12 billion. Among the products
SCC sells, the company saw its sales volumes of copper
increase by 5.5%, and copper production registering an increase of
6.6% in quarter-on-quarter terms to 242,474 tons. As of
July 1, SCC restarted
activities at its Tia Maria project in Arequipa, Peru, which is projected to produce 120,000
tons of copper cathodes per year.
"Based on current copper prices, we estimate the [Tia Maria]
project will generate exports of $17.5
billion and contribute $3.4
billion in taxes and royalties over its 20 years of
operation," said German Larrea,
Chairman of the Board of Southern Copper. "A significant
portion of the economic benefits derived from Tia Maria will be
utilized to boost the Company's programs to improve the
productivity of vital economic activities in Islay, and agriculture in particular.
SCC is fully committed to driving improvements in health and
educational services in the Arequipa region, which will mirror the
success of the Company's efforts in the Moquegua and Tacna
regions."
In Australia, Metals
Acquisition Limited (NYSE: MTAL) recently reported favourable
drill results to update the market on the continuing
exploration and resource development at the CSA Copper Mine— a
world class mine that consists of a series of mineralized lenses
that extend from surface to a depth of over 2.3km. These results
included 22.1m at 9.8% Cu,
24.2m at 7.8% Cu, 22.1m at 7.8%, 17.5m at 8.0% Cu, 12.8m at 8.1% Cu, and 5.5m at 10.4%.
"Drilling at QTSN has confirmed the location of the Inferred
resource and will be used to upgrade the Measured and Indicated
material, said Mick McMullen, CEO of
Metals Acquisition Limited. "We see the typical QTSN
intervals of approximately 20m plus
grading at 8% Cu or greater in this drilling, which would be seen
as spectacular in any other mine but in the CSA Copper Mine are
considered normal."
After a suspension at its Gibralter Mine at the beginning
of June, Taseko Mines Limited (NYSE-American: TGB) (TSX:
TKO) rebounded quickly within a few weeks to reach an
agreement to get workers to restart mining operations. By
mid-July, Taseko announced the mine's Q2 2024
production was 20 million pounds of copper (and 185,000 pounds
of molybdenum).
"Production in the second half of 2024 is expected to be
stronger with the major project and maintenance work in both
concentrators completed," said Stuart
McDonald, President & CEO of Taseko. "An updated
mine plan and mill throughput opportunities are being evaluated to
recover some of the production that was lost during the strike.
Copper production for the year is expected to be in the range of
110 to 115 million pounds, compared to original guidance of 115
million pounds."
In Brazil, Ero Copper
Corp. (NYSE: ERO) (TSX: ERO) recently achieved its first
saleable copper concentrate production at its Tucumã Project,
initiating a ramp-up right away. The milestone was achieved
following the successful commissioning of the milling and flotation
operations prior to the end of Q2 2024.
"Producing our first saleable copper concentrate at the Tucumã
Project and successfully completing the first 24-hour shift of
continuous mining and milling operations are important milestones
as we begin our ramp-up towards commercial production," said
David Strang, CEO of Ero Copper. "We are rapidly progressing
towards an important inflection point for our consolidated copper
production and cash flows. It is an exciting time for the Company
and with copper prices performing well year-to-date, the timing of
the completion and ramp-up of Tucumã could not be better."
In sad news, Ero Copper
confirmed a report of a fatality in a non-operational area on
surface at its other Brazil mine,
the Caraíba Operations—the company's primary asset which it holds a
99.6% interest. The tragedy resulted from a light-duty truck
accident, which resulted in the death and a second team member in
critical condition.
In response to the tragedy, Ero
Copper immediately activated its emergency response and
safety protocols which included suspending operations, notifying
the relevant government authorities, and undertaking a full
investigation.
Article Source:
https://energymetalnews.com/2023/02/28/charging-along-the-highway-towards-domestic-lithium-dominance/
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