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October 12, 2021 Flash Research
COPPER MOUNTAIN MINING
CORPORATION
Cameron Exploration Project Shows Potential
Our Take: Positive
Copper Mountain announced drill results from 48 drill holes totalling 7,936m drilled at the Cameron Copper exploration property, located 40km from the company’s Eva project in Queensland, Australia. Highlight intercepts include 80m of 0.44% Cu (C6 target), 84m of 0.56% Cu and 25m of 0.73% Cu (C1 target). Drilled zones remain open to expansion, with several targets yet to be drill tested. Drilling is expected to continue into 2022, as management is encouraged by results and has increased its conviction that there is future
potential for discovery of economic copper resources.
We reiterate our Outperformer rating. We view the company’s near-term growth catalyst favourably, with the 45ktpd mill expansion expected to ramp-up in Q4/21E, a construction decision on Eva in late 2021 or early 2022, and a new LOM plan for the Ingerbelle deposit in Q2/22E. At spot prices, CMMC trades at 0.3x NAV and 3.6x EV/2021E EBITDA, discounted relative to peers at 0.6x, and 5.1x, respectively.
Key Points
C6 Target: This target area includes the Quamby gold mine, from which ~76koz of Au were recovered from heap leach in the late 1900’s. Drilling tested mineralization southwest of the mine workings. Drill testing consisted of 15 holes, spaced 60m-100m across a 1km strike length. Continuous low-grade copper mineralization is indicated, with higher-grade zones localized in a major fold hinge. Mineralization is open along strike and at depth.
C1 Target: Soil anomalies are defined over an area of 0.6km by 3km at this target. To date, only 1.2km of the surface strike length has been tested. Drill results confirm the discovery of a large, structurally controlled copper-gold system. Mineralization is open along strike and at depth.
C2 Target: Copper mineralization within zones having lateral extents of
1.2km by 0.55km has been drilled. Holes were spaced 200m in the northern zone, and 100m in the southern zone. Multiple high-grade tenor zones within broader lower-grade mineralization envelopes were identified. Again, mineralization is open along strike and at depth.