Copper Co. More Than Doubles Size of BC Project

Source: Streetwise Reports 10/18/2024

Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA) says has acquired prospective ground adjoining its newly acquired Stars Property in British Columbia, more than doubling the size of the project. One analyst calls the project a “transformative development.”

Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA) has announced it has acquired 5,932 hectares of prospective ground adjoining the Stars Property in British Columbia, more than doubling the size of the project. On October 7, Interra said it had entered into a mineral claims purchase agreement with Aurwest Resources Corporation to acquire a 100% right, title, and interest in the Stars Property, an early-stage porphyry copper-molybdenum discovery covering 3,761 hectares in central British Columbia.

With the newly staked ground, the combined project now covers 9,693 hectares.

“We are pleased to have more than doubled the size of the Stars Property by staking,” Interra President and Chief Executive Officer Brian Thurston said. “Staking in British Columbia is the most economical way to acquire mineral tenures, in this case adding shareholder value at very minimal cost. With the expanded land package, we see an increased exploration upside, with the inclusion of an additional copper mineral showing, geophysical anomaly, and strategic ground accessible via logging roads.”

The new claims cover the “Big Dipper” anomaly, which Interra said is interpreted to be a continuation of the magnetic anomaly that defines the Stars porphyry project.

“The Big Dipper magnetic anomaly is continuous with the high magnetic intensity zone that encircles the Stars porphyry Cu-Mo (copper-molybdenum) mineral system,” the company said in a release. “The magnetic high extends approximately 3.1 km to the northeast of the previous property boundary and is now fully encompassed by mineral claims 100% owned by Interra Copper (pending completion of the Stars Property purchase agreement).”

‘Big Dipper’ Anomaly Shows Promise

According to the company’s Q4 2024 investor presentation, this acquisition supports Interra’s vision to transition to a resource definition-focused junior with increased exploration potential in the Tana and Libra zones. These zones have demonstrated copper and molybdenum mineralization with intersections including 0.466% Cu over 195.07 meters, 0.205% Cu over 207.27 meters, and 0.153% Cu over 91.45 meters. Both of these zones “are located in areas characterized by low magnetic intensity, encircled by the broader magnetic high,” Interra’s release said. “Similar domains of lower magnetic intensity surrounded by high magnetic intensity that have never been tested by drilling are present within the Big Dipper anomaly.”

The new claims also include the GSC1971-13 copper showing, comprising malachite and chalcocite in calcite veins within red vesicular volcanic rocks of the Hazelton Group, the company said.

They also include adjacent road-accessible, under-explored ground that “may have bedrock exposures that could aid in understanding the context of the Stars porphyry mineral system or be affected by extensions of that mineral system,” the company said.

An Immediate Buy

According to Technical Analyst Clive Maund on October 7, Interra was seen as an “Immediate Buy” following its purchase agreement for the Stars project, which he described as a transformative development.

Maund highlighted that acquiring the Stars Property marked a shift for Interra from being a junior explorer to a company “with a discovery that is looking to define a resource.” He viewed this acquisition as a potential catalyst for revaluation, especially given the company’s low valuation and the positive outlook for copper prices.

According to Technical Analyst Clive Maund on October 7, Interra was seen as an “Immediate Buy” following its purchase agreement for the Stars project, which he described as a transformative development.

Maund further noted bullish indicators in the company’s stock performance despite its prolonged bear market. He observed “clandestine accumulation” in the stock, as indicated by a steadily climbing Accumulation line, signaling the potential for an upside reversal.

“Even though the price is still technically in a downtrend with the price below bearishly aligned moving averages, there are other bullish factors to observe on this chart that point to a reversal soon, and these include the increasing bunching of price and moving averages such as typically precedes a reversal,” Maund wrote. “It should pick up from here.”

Maund emphasized that, combined with the Stars Project acquisition, these factors strengthened the likelihood of a significant price increase, leading to his recommendation of Interra as an Immediate Buy.

The Catalyst: Electricity Demand Is Coming

While the red metal reached a 52-week high of US$5.18 per pound on May 20, the metal fell by more than 1% Tuesday over worries about China’s financial markets, according to Mining.com.

But copper is still vital for the energy transition in the world’s economy — it’s the best natural conductor of electricity outside of silver and in everything from batteries to solar panels. Electric vehicles contain as much as 175 pounds of copper. Power-hungry artificial intelligence (AI) is also expected to put a squeeze on electricity demand and the need for copper.[OWNERSHIP_CHART-10753]

The “battle cry of the energy transition is ‘Electrify everything,’” Vince Beiser wrote for WIRED. That translates into a lot of copper, which “we need it to massively expand and upgrade the countless miles of power cables that undergird the energy grid in practically every country,” the author wrote. “In the United States, the capacity of the electric grid will have to grow as much as threefold to meet the expected demand.”

According to Credendo, demand for copper could double by 2035. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles in the long term, analysts have said.

An informal poll of attendees at a London Metal Exchange seminar on Monday recently showed that 46% of attendees said copper was the base metal that is likely to have the most upside, slightly down from last year’s 53%, Reuters reported.

Ownership and Share Structure

Interra has 42.6 million shares outstanding, according to the company. It said about 25% of the company is owned by management, directors, insiders, and other closely affiliated parties, leaving about 75% to retail.

The company has a market cap of CA$4.05 million and trades in a 52-week range of CA$0.32 and CA$0.08.

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Important Disclosures:

1. Interra Copper Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Interra Copper Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: IMCX:CSE; IMIMF:OTCQB; 3MX:FRA, )

Source: https://www.streetwisereports.com/article/2024/10/18/copper-co-more-than-doubles-size-of-bc-project.html