Mike Fagan,
Editor
Oct. 18, 2021
Copper is back in the spotlight with a solid price move above US$4.35 per pound following last week’s temporary pullback as the red metal continues to shrug off the specter of stagflation as soaring energy costs and supply chain woes threaten to put a damper on the global economic recovery.
Jay Tatum, portfolio manager at New York-based Valent Asset Management, stated, “In the short term there are some headwinds, mainly due to concerns about China’s economy. But once the world gets back to normal growth rates, evenly spread across the economy, we still think there’s a strong case to be made for metals like copper.”
Despite the headwinds, copper demand is holding up quite well and should be further bolstered by a number of near-term catalysts including a waning pandemic, a rise in US manufacturing activity across multiple key sectors, and potential passage of Biden’s “green energy” infrastructure bill.
So plenty of economic indicators in play and certainly a near-term buying opportunity for select small-cap copper exploration and development firms. And speaking of the small-caps, one of our sponsored junior copper explorers had material news this week...
Chakana Copper (TSX-V: PERU)(OTC: CHKKF) — currently trading around C$0.35 per share — has released assay results from 14 resource definition holes at Breccia Pipe #5 (“Bx 5”) at its flagship, 100%-owned Soledad Copper-Gold-Silver Project, Peru.
All 14 holes intersected significant mineralization — with grades improving at-depth — highlighted by 1.17 grams per tonne (g/t) gold, 0.55% copper, and 19.2 g/t silver (or 1.48% copper equivalent) over 268 meters.
Assays are pending for an additional 12 holes from Bx 5 and the Huancarama target area.
Chakana CEO, David Kelley — whom you’re about to hear more from via an exclusive interview with our own Gerardo Del Real of Junior Resource Monthly — commented via press release:
“The additional drill results for Bx 5 are outstanding and improve our understanding of the mineralization hosted in this breccia pipe. Grades are stronger at depth as seen in the deeper holes in this release, and mineralization remains open. This is one of six breccia pipes that will be included in the initial resource estimate. The Soledad project is exceptional in having multiple mineralized breccia pipes in close proximity to each other. We are also very excited about the new geophysical data that is being acquired across the entire extent of the 12km2 mineral system and expect that this will contribute to the ongoing exploration success on the property.”
The results are part of a 26,000-meter drill program ahead of an initial resource estimate on six breccia pipes slated for release by year-end. The breccia pipes to be included in the upcoming resource estimate are Bx 1, Bx 5, Bx 6, Paloma East, Paloma West, and Huancarama.
And while the forthcoming resource estimate on the first six breccias is an important milestone for Chakana Copper and PERU/CHKKF shareholders, it truly only scratches the surface of Soledad’s wider potential as the 7,600-acre property is estimated to contain somewhere between 50 and 100 breccia pipes with only 16 out of 110 known targets drill-tested to-date.
Stand by for lots of news flow from Chakana in the weeks and months ahead.
Check out Gerardo’s late-breaking interview with Chakana CEO, David Kelley.
Access additional Chakana Copper news, interviews, and much more here.
And be sure to click here for our feature report on Chakana Copper.
Yours in profits,
Mike Fagan
Editor, Resource Stock Digest
P.S. Click here for a brief video introduction by Nick Hodge on this undiscovered gem that’s poised to help lead America’s uranium production resurgence back to its glory days.
