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Unearthing Copper-Gold Deposits Across the Americas

Stockhouse Editorial
1 Comment| February 3, 2022

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(Image via C3 Metals Inc.) C3 Metal’s exploration camp at Jasperoide.)

The demand for gold and copper is thriving more than ever.

Click to enlarge

It is no secret that under this current global crisis from the spread of COVID and the recent variant - Omicron, investor attention has shifted in great numbers to the lustrous metal as a top safe haven asset. The virus put gold and copper in play when it hit … but with the administration of vaccines, along with monetary and deficit-spending stimulus, will it hold firm?

According to a recent London Bullion Market Association survey, analysts from large banks and independent consultancies estimated that gold averaged $1,974 (USD) per ounce across 2021, a rise of 11.5% from last year’s record-high annual average. This is an exciting trend for investors and gold companies who have experienced a 55% increase in gold prices over the last five years. Likewise, a report released by Bank of America in December 2021 recorded the average copper price at an estimated $9,311 (USD) a tonne in 2021 and forecasts $9,813 (USD) a tonne in 2022.


(US spot price for Gold 2016 – 2021. Click to enlarge.)

Digging deeper into this story, a hot spot for gold and copper activity is Peru, which has been eyed by investors as copper prices in particular continue to rise over growing supply concerns in an already tight market.

A global leader in copper and gold production, mining is 12% of Peru’s GDP and makes up 60% of its export revenue. Peru is ranked 2nd in global copper production, 2nd in global copper reserves and is rated 5th for global mining investment.

Essentially unrivalled in terms of combining mineral potential and the policy required to capitalize on it, companies operating in Peru are capitalizing on one of the best opportunities for exploration and mining.

Enter: C3 Metals Inc. (TSX-V: CCCM, OTCQB: CUAUF, Forum) a Canadian-based exploration company focused on the discovery and development of large copper-gold deposits with properties in Peru and also Jamaica.

The company's flagship project is the Jasperoide high-grade copper-gold skarn and porphyry system located in the prolific Andahuaylas-Yauri Mineral Belt of southern Peru.

In Jamaica, the company's 100% interest in licenses cover 207 km2 of highly prospective copper-gold terrain where multiple porphyries have been delineated. The company continues to advance fieldwork on new areas of interest.

Mineralization at Jasperoide is hosted in a similar geological setting to nearby major mining operations at Las Bambas (MMG), Constancia (Hudbay) and Antapaccay (Glencore). The Company completed Phase I drilling in January 2022, which focussed on testing the high-level copper-gold skarn and porphyry targets at Montaña de Cobre and Cresta Verde as well as epithermal gold-silver targets at Callejón de Oro.


(Images via C3 Metals Inc.) Montaña de Cobre, Cresta Verde Zone and Callejón de Oro Zones.)

Drilling commenced in February 2021 at Montaña de Cobre, returning high-grade copper-gold oxide assays over significant thicknesses and laterally extensive for hundreds of meters. At Cresta Verde, drilling intersected significant widths of copper mineralized skarn and massive sulphides, confirming a 2.0km strike length to the skarn alteration and mineralization. The ongoing exploration drill program has been expanded to test multiple geophysical targets and will involve drill testing for stacked skarns and the interpreted porphyry targets at Cresta Verde and Montaña de Cobre Zones.


(Images via C3 Metals Inc.) Copper oxide mineralization at Montaña de Cobre Zone (left) and copper sulphide mineralization at Cresta Verde Zone (right).)

Jasperoide - In the heart of “Elephant Country”:

This 57km2 tenure is located within 40 km of three major copper-gold deposits Las Bambas (1.20BT @ 0.61% Cu, 197ppm Mo (MMG)), Constancia (534MT @ 0.31% Cu, 97ppm Mo (HudBay)) and Haquira (569MT @ 0.56% Cu (First Quantum)).

(MMG Limited Mineral Resources and Ore Reserves Statement 30 June 2019, Hudbay Mineral Reserves as of January 1, 2019, First Quantum Minerals Annual Information Form 2019).

High Grade Mineralization at Surface:
  • Up to 14g/t Au and 18.5% Cu in rock chips
  • Select Drill Results - Montaña de Cobre Zone
  • 229.45 meters @ 0.99% Cu and 0.43 g/t Au
  • 53.24 meters @ 3.11% Cu and 0.46 g/t Au
  • 117.30 meters @ 1.31% Cu and 0.15 g/t Au
  • 24.3 meters @ 5.76% Cu, 0.09g/t Au
  • 185.2 meters @ 1.00% Cu, 0.39g/t Au

Previous Drilling Programs
  • Average hole depth <200 metres, system open in all directions
  • JADD11-03, final 6 metres assayed 3.0% Cu

Mineralization Confirmed at Cresta Verde
  • Historic hole JADD11-20, 650 northwest of Montaña de Cobre Zone, returned 23.5 metres @ 1.86% Cu
  • C3 Drill holes JAS4350-02 and JAS4350-03 (650m north of JADD11-20) intersected copper sulphide mineralization, returning 43.5m @ 0.32% Cu and 66.3m @ 0.21% Cu, respectively

Click to enlargeThe company has confirmed significant zones of high-grade copper and gold assays at the project, completing a core resampling program that confirmed both the successful verification of, and significant copper intercepts in, all seven resampled holes.

Highlights included two standout holes which showed significant zones of high-grade copper and gold assays.

One hole returned 2.96% copper and 0.70 grams gold per tonne from 24 metres drilled. The second returned 2.76% copper and 0.67 grams gold per tonne from 24 metres drilled.

The drilling program was initiated to confirm the distribution and tenor of skarn hosted copper-gold mineralization and to verify results for future resource calculations.

“This resampling programme is the first step towards determining the ultimate size and grade of Jasperoide. The drill intercepts very closely replicate previous results giving us confidence in using historic drilling data to guide the forthcoming drilling programme,” said Kevin Tomlinson, President and Chief Executive Officer of C3 Metals.

“Jasperoide is an exciting project that has the scope for both high grades and size. I believe copper investors and market analysts will follow our progress closely as Jasperoide is a unique asset to be in the hands of a junior company,” he added.

C3 Metals completed a first pass drilling program at Jasperoide, drilling over 10,000 meters to test the Montaña de Cobre and Cresta Verde Zones. Drilling in 2021 intersected highly significant copper-gold oxide enrichment at Montaña de Cobre Zone and encouraging initial sulphide drilling results from the Cresta Verde Zone.

The Company’s Phase I drilling significantly expanded the dimensions of the high-grade copper-gold oxide mineralization at the Montaña de Cobre zone, which is hosted in a shallow dipping mineralized skarn domain.

In an interview with Stockhouse Editorial, Steve Hughes VP Exploration commented on the results:


(Click to play video.)

“As we continue to delineate the high-grade copper-gold oxide skarn deposit at the Montaña de Cobre Zone, the company is also pleased to report highly encouraging initial sulphide drilling results from the Cresta Verde Zone. Our drilling continues to identify vectors that support our interpretation that a porphyry is the driving force for the extensive hydrothermal Cu-Au system at Jasperoide, which include mineralized fragments of the suspected causative intrusion, coarse molybdenite in massive and semi-massive sulphides and high-sulfidation feeder structures.

We have confirmed that Jasperoide is a multi-kilometre scale mineralized system with at least two prospective skarn horizons. The extensive copper mineralization at Jasperoide is developed immediately adjacent to the intersection of two major regional faults that are interpreted to transect Hudbay’s Constancia mine, 35km to the southeast and the Las Bambas Mine 40km to the west.

The delineation of primary sulphide mineralization at the Cresta Verde zone associated with important regional controls to two large copper deposits in the district bodes well for the ongoing program we have underway at Jasperoide.”

A total of 46 drill holes were completed in 2021 for 11,743 metres. Drilling in 2022 is focussed on testing porphyry targets at the Montaña de Cobre and Cresta Verde Zones, defined by coincident geophysics (Hybrid CSAMT, Magnetics and IP Chargeability) and multi-element geochemistry. Strong porphyry vectors have also been identified from the 2021 drilling and include mineralized porphyry fragments, classic porphyry style alteration and molybdenite mineralization; further evidence that a porphyry system is the driving force behind the large-scale alteration system at Jasperoide.


(Image via C3 Metals Inc.) CSAMT sections through Cresta Verde (Left) and Montaña de Cobre Zone (Right) and proposed holes testing stacked skarns and porphyry targets.)


Finances:

In November 2021, C3 Metals closed its $19 million (CAD) bought-deal private placement.

It will use the proceeds to:

  • Expand the drill program at the Jasperoide high-grade copper-gold skarn property
  • Undertake a drill program at its copper-gold properties in Jamaica
  • Generative exploration in Peru and Jamaica

The company issued 101,582,178 common shares priced at $0.19 per share for gross proceeds of $19,300,614, including a partial exercise of the over-allotment option.


(Image via C3 Metals Inc. Click to enlarge.)


The copper market at large:

Logistics and supply chain bottle necks have led to low copper inventories in some regions.

Copper demand is highest in the United States and Europe, though consumption in China is notable, especially during this traditionally strong season due to high premiums though some producers have cut down on production to save costs.

Stockpiles of the metal, widely used in power, manufacturing and infrastructure sectors are in short supply, though there might be traders building invisible stockpiles betting on a bullish copper outlook. Despite that contingency plan, C3 Metals is a solid play for investors to investigate.


(C3 Metals Inc. stock chart – December 2020 to December 2021. Click to enlarge.)

A significant inflection point for the company was the granting of drill permits in December 2020. Shortly after this permitting, CEO Tomlinson and VP of Investor Relations, Alec Rowlands joined the team, coming off a successful run with Cardinal Resources Ltd., who operated in Ghana, west Africa. That team had discovered and drilled out a significant 7-million-ounce gold deposit over the last three years, that ended up with a 5.2 million ounce reserve that was ultimately taken over by Shandong Gold for about $600 million (CAD).


The future looks promising for C3 Metals, both in the near-term and further out on the horizon. As the team works to explore its various projects, the Jasperoide property could see further discoveries with its up-and-coming porplyry target drilling. By this time next year, we could be looking at a very different company.

From proven past production nearby, pro-mining regulations and everything in between, few regions can compare to the perfect storm of conditions that exist in Peru and in Jamaica when it comes to copper and gold. Investors would be wise to roll up their sleeves and investigate what C3 Metals offers, especially as these regions continue to play a key role in the surging copper and gold markets.

For more information on the company, visit www.c3metals.com.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.



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