Tag: World Copper Ltd.

World Copper provided an exploration and development update for its 100%-owned Zonia Cu oxide project in Arizona. An internal technical review of the project has confirmed three potential growth drivers for the project which include resource expansion from targets adjacent to the existing resource, a new porphyry target to the NE of the existing resource, and an updated PEA which is expected to include additional mineralization not factored previously along with recent market conditions. In our view, World Copper has transformed from an explorer into a developer with a portfolio of high-quality Cu projects in premiere mining jurisdictions. We believe, Zonia has lots of untapped potential as it could either be rapidly developed for nearer-term production or potentially be expanded through exploration to increase the size and scale of the project.

World Copper announced that it has signed a letter of intent (LOI) with Desaladora Rosario SpA (Desala) for the construction of a pipeline that would provide desalinated seawater to its 100%-owned flagship Escalones Cu project in Chile. We view this announcement positively as water is a crucial consideration for the development of a mining operation in water-scarce, central Chile. Several other major mining companies have recently caught the ire of the Government due to apparent lack of sustainable water practices. Given this, we believe that securing an adequate supply of water from a non-continental source is a key de-risking step for the development of the Escalones project.

World Copper announced results from the maiden Preliminary Economic Assessment (PEA) prepared on its 100%-owned flagship Escalones Cu project in Chile. The PEA outlines a 50,000 tpd open pit operation producing ~2.3B lbs of copper cathode over 20 years. We view this as a compelling PEA that demonstrates Escalones could support an oxide heap-leach operation. We are impressed with the reasonable initial capital costs, which results in a capital intensity index of ~US$8,416/t Cu versus peers with an average of ~US$15,000/t Cu. We believe World Copper remains undervalued and the positive economics outlined in this PEA could potentially help re-rate the stock.