- The International Energy Agency predicts that existing and planned mines will only meet 80% of global copper needs by 2030
- Torr Metals is developing two highly prospective copper-gold projects in Canada, one of the most mining-friendly and infrastructure-rich jurisdictions in the world
- In June, Torr Metals released the newest exploration data from Kolos in the Quesnel Terrane, a mining district in south-central British Columbia
- Several active mines operate within the Quesnel Terrane, including the four largest copper producers in Canada, being the Highland Valley, Gibraltar, Copper Mountain, and Mount Milligan mines
Copper, a critical metal nicknamed an “economic barometer” due to its multitude of uses that reflect the financial health of countries, is experiencing a spike in demand owing to vows for global electrification. Copper demand on a historical level – construction plumbing and wiring, transportation, power and communications transmission – remains strong, with added demand now for use in electric vehicles, charging stations, renewable energy, and the electric grid itself.
The situation has significant upside potential for companies big and small that are making investments in future copper production, including Torr Metals (TSX.V: TMET), Vale (NYSE: VALE), Newmont (NYSE: NEM), and Anglo American (LSE: AAL).
A Supply Shortfall Condition
That said, a looming supply shortage threatens to stall the momentum. The International Energy Agency predicts that existing and planned mines will only meet 80% of global copper needs by 2030. And that could be a generous estimate considering production is struggling to keep up with prior years.
An article published on Mining.com leveraged an infographic from The Visual Capitalist and due diligence of public information to estimate that copper production at the world’s top 20 copper mines in 2023 came in under 2020 capacity by nearly 20% (and estimated 7,411,752 tonnes vs. 8,869,000 tonnes).
As ore grades decline, supply interruptions abound around the world at leading producers, including Chile, Peru, Zambia and the DRC, ranging from droughts to regulatory and social obstacles.
Further compounding the issue are inflationary pressures and the hefty costs associated with developing new mines. These factors are acting as a significant deterrent to ramping up copper production and have severely dampened rates for new discoveries, which have plummeted in the last decade.
For the last several years, analysts have been arguing back and forth over whether copper will legitimately face a supply shortfall. With developments like the Panama Supreme Court ordering the shutdown of First Quantum Minerals Ltd. massive $10 billion Cobre Panama copper mine and Anglo American surprising with a production cut in South America, the narrative has shifted towards “when,” not “if.” To that point, BNN Bloomberg recently reporting that the surplus forecast for this year has essentially disappeared.
A Copper Grab Situation
There is investment activity in the copper market as majors look to capitalize on the opportunity. BHP offered $39 billion to buy Anglo American, a bid to create the world’s biggest copper producer. According to its May investor presentation, Barrick Gold plans to double its copper production by 2029. Vale has committed $3.3 billion to ramp-up copper and nickel production. In 2021, Newmont Gold paid $311 million to buy junior explorer GT Gold for the prize of its Saddle North copper-gold porphyry discovery and strengthening its foothold in the Golden Triangle region in northern British Columbia, Canada.
Torr Metals
Elsewhere in BC, watch for developments from Torr Metals, a young company focused on advancing its 100% owned, district-scale copper-gold porphyry and orogenic gold projects in highly accessible mining regions of Canada.
Torr’s projects check the boxes for being excellent opportunities to potentially develop new copper and gold discoveries, complete with multiple undrilled kilometer-scale exploration targets, existing infrastructure, and low-cost development opportunities with year-round drilling potential.
The approximately 240 km² Kolos Copper-Gold Project is in the prolific copper-producing Quesnel Terrane of south-central British Columbia, with direct access to Highway 5, and is situated 286 kilometers northeast of the port of Vancouver. On the eastern end of Canada, Torr has the ~261 km² Filion Gold Project that lies within an unexplored gold-bearing greenstone belt, adjacent to the Trans-Canada Highway 11, just 202 km from Timmins, northern Ontario.
BC’s Quesnel Terrane is a hotspot for copper exploration and production. This arc of volcanic and sedimentary rocks is known for hosting numerous major porphyry copper deposits, ideal for large-scale mining.
Several active mines operate within the Quesnel Terrane, like Teck Resources’ (TSE: TECK.A, TECK.B) (NYSE: TECK) Highland Valley mine, Hudbay Minerals’ (TSE: HBM) (NYSE: HBM) Copper Mountain mine, Taseko’s (TSX: TKO) (NYSE American: TGB) (LSE: TKO) Gibraltar mine, Centerra Gold’s (TSX: CG) (NYSE: CGAU) Mount Milligan mine, New Gold’s New Afton mine (TSX: NGD) (NYSE American: NGD), and Imperial Metals’ (TSX: III) Mount Polley mine, contributing significantly to Canada’s copper output. The region’s potential extends beyond current operations, with ongoing exploration aiming to discover and develop additional copper deposits to meet the growing global demand for this critical metal.
The latest data released in June by Torr confirmed never-drilled copper and gold mineralization in outcrop, while also expanding geophysical targeting at its Kolos project. Torr Metals found promising signs of copper and molybdenum in a new area of Kolos, dubbed the “Vik Zone.” The zone showed copper-rich rock alongside strong geophysical signals across a 2.5-kilometer trend, the latter indicating potential for robust hydrothermal alteration and mineralization extending 800 meters below the surface. Importantly, this is a completely new discovery with no prior exploration done.
Torr Metals’ copper potential at the Kolos Project is further substantiated by recent high-grade assay results from rock grab samples, revealing values of up to 0.42% Cu and 1.07 g/t Au, which are comparable if not superior to porphyry deposits in the region(*). Additionally, the identification of 10 new promising areas with similar rock types and geophysical readings to the six established drill-ready targets underscores the vast unexplored potential. With their grassroots exploration possibilities these areas offer exciting opportunities for future potential discoveries, making Torr Metals a highly attractive prospect.
(*)Comparisons disclosed are not necessarily indicate of the type or scale of mineralization on the Kolos Project.
For more information, visit the company’s website at www.TorrMetals.com.
NOTE TO INVESTORS: The latest news and updates relating to TMET are available in the company’s newsroom at https://nnw.fm/TMET
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