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Copper Co. Cancels Project Option to Focus on Other Sites

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Source: Streetwise Reports   03/23/2023

Alpha Copper Corp. cancels its option agreement for the Okeover project in British Columbia so it can focus on its other three projects, including the drill-ready Star project.

Alpha Copper Corp. (ALCU:CSE;ALCUF:OTC) announced it has canceled its option agreement for the Okeover project in British Columbia so it can focus on its other three projects.

The company will now put its efforts into exploring the drill-ready Star project in the British Columbia’s Golden Triangle, and its Indata project in British Columbia and Hopper project in the Yukon Territory.

“We decided to terminate the option agreement based on all the exploration results to date,” Chief Executive Office Darryl Jones said. “After careful consideration, it became clear to us that the value of the option deal did not reflect the value of the project anymore. Rather than aligning the price and value, we have chosen to focus on the assets in our portfolio that we believe have more immediate exploration upside.”

CAVU was “well-positioned” even before its purchase to make a significant copper discovery, Red Cloud Securities analyst Taylor Combaluzier wrote last summer.

Demand for copper is expected to explode as the economy switches footing to green technologies, like electric vehicles (EVs), which use more than three times the amount of copper as gas-burning cars. Charging infrastructure, solar panels, wind, and batteries all require more of the red metal, as well.

The need for copper is expected to double from about 25 million metric tons (Mmt) in 2021 to about 50 Mmt by 2035, according to a report by S&P Global.

All of this will require much more investment in copper and copper explorers, a market analysis by RFC Ambrian said in 2022.

“Based on industry-wide capital intensity data, we calculate that some US$196 billion of investment will be required,” according to the analysis. “Of this, US$80 billion is for greenfield projects, and US$116 billion is for brownfield projects, of which US$71 billion is simply for replacement capacity. A further US$35 billion of investment will be required to close the supply gap.”

The Catalyst: Shifting Focus

Okeover project. Source: Alpha Copper Corp.

A drilling program at the 4,613-hectare Okeover project was finished last December. Its goal was to reconfirm historical drilling data at the North Lake Zone as the company pushed toward updating and publishing a new resource for the project.

Hole 4 looked promising from 330 meters to 600 meters, the company said. Historically, the hole intercepted 76 meters grading 0.34% copper (Cu) and 0.020% molybdenum disulfide (MoS2), including 19 meters grading 0.42% Cu and 0.020% MoS2.

Canceling the Okeover option agreement removes Alpha’s obligation for a pending share issuance and a further US$3.5 million in working expenditures, the company said.

Alpha said it would use those resources to increase its focus on Star, Indata, and Hopper.

Last month, Alpha announced Hopper had been issued a 10-year permit for drilling and road and trail building.

A 74-kilometer multi-target porphyry copper-molybdenum project, Hopper has “significant copper-gold-silver peripheral skarn mineralization,” Alpha has said. The best intercept there was 22.28 meters at 1.405% Cu.

Alpha obtained Hopper and Star with its purchase of CAVU Energy Metals Corp., which closed in December 2022.

“The Hopper Project is a great project with a lot of exploration upside,” Jones said. “The Project has proven skarn horizons that are ready to build towards a maiden resource and the potential for a large porphyry zone that was proven up in the last two years and is close to discovery. We believe there is something big here and are looking forward to unlocking the project’s potential.”

“Bottom line? We gotta find more copper,” analyst Rick Mills wrote. 

Star is a multi-target copper-gold porphyry project in the Golden Triangle with 106.98 meters graded at 0.77% Cu in one hole. Over 13,000 meters of modern drilling have been completed there, and it is fully permitted for 200 drill sites until 2026.

“These could be multibillion-pound copper deposits,” Jones has said.

CAVU was “well-positioned” even before its purchase to make a significant copper discovery, Red Cloud Securities analyst Taylor Combaluzier wrote last summer.

“We believe the company stands to benefit from the global trend toward electrification, which will require increased copper production to meet the demands of the worldwide green economy,” Combaluzier wrote about CAVU before the sale.

Indata is close to Northwest Copper’s Kwanika and Stardust discoveries. Historical drilling includes 148 meters grading 0.20% Cu, including 24.1 meters grading 0.37% Cu, the company said. Assays from Indata are also expected soon.

Analyst: More Exploration Needed

Adding to the problem of the looming supply and demand shortfall for copper is the lead time for getting new mines online.

The S&P report said politicized regulatory processes and litigation make it “unlikely that efforts to expand copper output in the United States would yield significant increases in domestic supply within the decade.” [OWNERSHIP_CHART-10652]

“Bottom line? We gotta find more copper,” analyst Rick Mills wrote. “That sentiment is clearly shared by some of the world’s largest copper companies, who are doing everything they can to expand existing mines and acquire prospective new deposits as they seek to replace their rapidly depleting copper reserves and resources.” 

Some used copper is recycled for things like plumbing tubes and roofing sheets. But it’s not feasible to use scrap copper for all copper products, as electrical wiring and cables require the “very pure sort of copper that flows from the mining-smelting-refining process,” the Copper Development Association Inc. wrote.

Ownership and Share Structure

About 15% of the company is held by insiders, including the CEO Jones, who holds 1.54% or 800,000 shares; and Director Daniel Matthews, who owns 1.11% or 580,000 shares, according to Reuters.

The rest is retail, Alpha said.

The company has about 52 million shares outstanding, 48.9 million of them free-floating, with a market cap of CA$15.89 million. It trades in a 52-week range of CA$1.02 and CA$0.135.



1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Alpha Copper Corp. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures for Taylor Combaluzier, Red Cloud Securities:

Disclosure Requirement: Red Cloud Securities Inc. is registered as an Investment Dealer in all Canadian provinces and territories, and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Red Cloud Securities Inc. has prepared this document for general information purposes only. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document.

Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report.

Company Specific Disclosure Details:

  1. The analyst has visited the head office of the issuer or has viewed its material operations.

  2. The issuer paid for or reimbursed the analyst for a portion or all of the travel expense associated with a visit.

  3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services or has been retained under a service or advisory agreement by the issuer.

  4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.

Dissemination: Red Cloud Securities Inc. distributes its research products simultaneously, via email, to its authorized client base. All research is then available on via login and password.

Analyst Certification: Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

( Companies Mentioned: ALCU:CSE;ALCUF:OTC, )


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