Copper Road Resources Is On A Path To Success Focused On Copper Exploration
Copper is primed to go much higher and bring the copper stocks with it.
I’m extremely bullish on copper, due to its remarkable supply and demand story. For decades there has been under investment in exploration, new mine development and at the same time the industry has been relying on big mines that are getting very old and long past their best production days. The supply chain is very weak and going to get weaker.
While this is happening we are seeing rapid growth in demand from the electric vehicle revolution, alternative energy sources and the modernization of developing economies. These are unstoppable forces of demand that will only increase and add strain to the supply that is very bullish for the price of copper.
The copper cupboard is bare and it won’t get better any time soon. Due to chronic under investment and relying on ancient mines, the problem is a long way from being fixed.
What is clear is that a rapid increase in funding for exploration is drastically needed and then new mines need to be built. Due to the explosive demand, estimates are that once in a lifetime copper mines need to be found almost on a yearly basis. They are rare and that just won’t happen.
What will happen is the price of copper needs to go much higher to spur more exploration. When explorers make new discoveries there will be a lineup of major mining companies willing to buy them out.
Economics has a way of fixing mistakes. It has been a big mistake that there has been such a long term lack of adequate investment in exploration for new copper deposits and new copper mines being developed.
The only solution is rapid increases in copper prices, that catches the attention of generalist investors and makers of the products that need copper. If generalist investors and end users of copper find their way into the exploration and new mine development sector of mining it will make a big difference. This is inevitable and when new participants find their way into exploration and mine developers they will find a small menu of copper stocks to choose from.
I love exploration and new mine development, partially because the stocks doing these activities are often ridiculously cheap. Additionally, the mining industry and consumers absolutely need more exploration success. The primary reason is that at heart I’m a treasure hunter, I love the chance to poke drill holes in the ground to find buried treasures.
I’m happy to report that I have a new sponsor of my reports in Copper Road Resources (CRD.V). They are focused on copper exploration in Ontario. There has been past mining on their ground, widespread copper mineralization in surface sampling and excellent hits with drilling. Yet, as is often the case with junior mining stocks, they are getting very little love for what they have.
Let’s get more into the reasons that I think Copper Road Resources has the potential to have success that takes them from having a microscopic valuation to growing into a company with a much higher valuation.
They have 21,000 hectares at their Copper Road project near Batchawana Bay, Ontario. There are two past-producing mines on the property that were in production decades ago. The project has widespread copper mineralization and five known breccia pipes that remain underexplored.
One of the key targets is the Richards Breccia pipe, where past drilling has returned excellent grades and thickness. Breccias are zones of broken rock that the copper bearing fluids make their way into. The potential source of the fluids is a porphyry below. So far there has only been three holes into this target; it remains open laterally and at depth.
They have several other targets on the project identified from historical work and their own drilling, sampling and geophysics. Rather than detailing them all in this report, I’m arranging an interview with their geologist as he will be able to give us better clarity on the various targets.
When it comes to explorers I follow the drilling very closely, as well as the past work and their own work to refine targets. They have a compelling copper project that I expect will generate excellent news flow in the short and long term.
In Closing
Good copper exploration stories are not easy to find, Copper Road Resources has one that can be worked on pretty much year round. Historical mining and drilling, and their own work has shown the realistic potential of their project and I look forward to following it closely as they do additional drilling.
We are arranging our first interview for next week that will help us better understand the past work and upcoming work. They have an impressive copper exploration story and have a very modest valuation with plenty of catalysts to unlock shareholder value.
As always, my reports are for information purposes only, they are not investment advice, it is important for you to speak with your financial advisors to determine if the companies I report on are suitable for you.
I’m a big promoter of investors doing their homework. Ultimately, well informed shareholders that understand the companies they invest in, and have reasonable time frames for companies to reach their success, are prone to make logical investment decisions not emotional ones. This is a recipe for success investing in any sector.
All the best,
Allan