Mexico Copper Project Has 'Significant Potential,' Analyst Says
Source: Streetwise Reports
May 8, 2023 (Investorideas.com Newswire) Assay results from the last six drill holes at Infinitum Copper Corp.'s La Adelita project last year have been released. One analyst says the project could turn into a "very valuable high-grade asset."
Infinitum Copper Corp. (INFI:TSX) has released assay results for the last six of 12 diamond drill holes sunk at its flagship project in Mexico last year.
Hole AD-22-0028 at La Adelita returned 48.7 meters (true width) of 1.22% copper equivalent (Cu eq) starting at 198.95 meters downhole, while hole AD-22-0021 returned 19.85 meters of 1% Cu eq from 34.5 meters downhole. Both holes were drilled in the Cerro Grande Zone.
The results build on previous highlights from the 2022 campaign, including Hole AD-22-0018, which returned 20.6 meters of 3.71% Cu eq from 163 meters downhole, and hole AD-22-0019, which returned 32.25 meters of 1.74% Cu eq from 36.65 meters downhole.
"Hole 28 is particularly exciting because it demonstrates that the mineralization is open to the north, which is also supported by our geophysical studies," said Rafael Gallardo, Infinitum's senior exploration manager. "Our recent surface mapping demonstrates the continuity of contact between intrusive rocks and favorable calcareous host rocks at least 350 meters to the north of the drill hole."
In a fact sheet written in March, M Partners analyst Eric Carstairs noted high-grade drill results that had already been released from La Adelita, which is in the Alamos Mining District near the Alamo Dorado Mine in Southern Sonora, Mexico.
"There is significant potential for this project, returning very high copper grades at sizeable widths," Carstairs wrote. "With copper demand expected to rise and exceed the supply over the next decade, we believe that this project could turn into a very valuable high-grade asset in the near future as INFI plans to have steady news flow when drilling begins (~every ten days). La Adelita has blue sky potential as only about 6-8% of the property has been touched."
Technical analyst Clive Maund of CliveMaund.com rated the stock a Speculative Buy in February.
"Infinitum's chart looks exceptionally bullish, in good part because of the extraordinarily bullish volume pattern," Maund wrote. "It is not known what is going on behind the scenes, but we can safely assume from this chart that whatever it is, is positive."
The Catalyst: Working Toward a Resource Estimate
The company is working toward a resource estimate for La Adelita, which is 6,446 hectares and made up of seven mining claims. The company has identified three zones of significant copper, silver, gold, and zinc mineralization at the Cerro Grande Footwall, Las Trancas, and Pericos zones.
It noted hole AD-22-0028 is open to the north, east, and west and was the only hole that intersected a large and distinct magneto-telluric anomaly on the eastern flank of the Cerro Grande anticline.
Infinitum believes the anomaly is driven by highly conductive magnetite, which is strongly related to high-grade gold and copper mineralization. The mineral, detectable with magnetometer surveys, should help locate more mineralization.
Last year's "exploration program certainly exceeded expectations with half of the holes drilled returning high-grade intercepts over meaningful widths," said Infinitum Chief Executive Officer Matt Hudson. "The evidence of the strong correlation between magnetite and mineralization continues to build, and as it does, the number of targets continues to grow."
Cerro Grande only represents about 5% of the project area, Hudson noted. He said the company looked forward to exploring the Sangre del Toro area about 4 kilometers southwest, where trenching returned 9 meters of 16.45 grams per tonne gold (g/t Au) and 1.9% Cu.
"We've got plenty of work to do in 2023," Hudson said.
Earlier assay results from drilling at the project made an impression on Caesars Report newsletter editor Thibaut Lepouttre.
"The drill bit encountered 24.35 meters (20.60 meters true width) of 1.91% copper (Cu), 2 [grams per tonne gold (g/t Au)], and just under 41 g/t silver (Ag)" at La Adelita, Lepouttre wrote. "This represents an official copper-equivalent grade of 3.71% . . . Needless to say, encountering that type of grade over an interval in excess of 20 meters on a true width basis is excellent."
Need for Red Metal Could Slow Pace of Energy Transition
More of the red metal, also known as "the metal of electrification" because of its conductivity, is needed to help power the new green economy. Electric vehicles (EVs) use at least three times as much copper as fuel-burning cars.
"The implications are that high copper prices (relative to history) are likely to continue and will need to be high enough to encourage additional new greenfield capacity or brownfield expansions to come on stream," a copper market analysis by RFC Ambrian said in 2022.
According to a report by S&P Global, The Future of Copper, demand is expected to double from about 25 million metric tons (Mmt) today to about 50 Mmt by 2035.
"The mismatch anticipated in this study between demand and supply will put pressure on the goal of Net-Zero Emissions by 2050 and will likely slow the pace of energy transition," the S&P report said.
Ownership and Share Structure
About 16% of the company is owned by management and insiders, including Director Ivan Po Kwong Chan with 4.04% or 2 million shares, and Board Chair Steve Robertson with 3.32% or 1.64 million shares.
About 17% belongs to institutions, and strategic investor Minaurum Gold Inc. owns 12% or 6.11 million shares. The rest, 55%, is retail.
Infinitum has 49.5 million shares outstanding, 33.2 million free-floating, according to the company. Its market cap is CA$3.42 million, and it trades in a 52-week range of CA$0.52 and CA$0.04.
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