Colombian Copper

MSD Extra for February 7, 2022

Feb 07, 2022

Today’s Macro News

Gold-backed ETFs recorded net inflows of US$2.7B in January, their highest level since May 2021, according to data from World Gold Council.
China said it aims to “significantly increase” mines’ iron ore production and boost utilisation of steel scrap, as part of a plan to develop a higher quality, greener ferrous industry.
U.S. energy firms this week added oil and natural gas rigs for a fifth week in a row for the first time since November as crude prices extended their rally to a seventh week to levels not seen since 2014, prompting drillers to seek more oil.
Bond Yields continued to be the story, especially in Europe. The Italian 2yr rose to .46%. It was -.1% just one week ago. The Greek 10yr rose to 2.5%, up from 1.885 a week ago.
Our buddy, Doomberg, has yet another great example of why the US energy policy is indeed bonkers. Read it here.

Today’s Mining & Exploration News

Rugby Mining said it plans to initiate a comprehensive exploration program at its undrilled Cobrasco porphyry copper-molybdenum system in western Colombia in April.
Triple Flag Precious Metals announced it has entered into agreements to acquire a 2.75% net smelter returns royalty on Monarch Mining Corporation’s Beaufor Mine gold project in Quebec, Canada for total cash consideration of C$11.25 million.
Zacapa Resources was a big winner today, up 45% since we last checked. The company recently began trading on the Venture.

Our Take

The news out of Colombia is hugely significant as the resolution reported by Rugby Mining means exploration can now get underway in a 200km long prospective porphyry copper belt. This belt runs between First Quantum Minerals’ Cobre Panama to the north and SolGold’s Alpala to the south.

The areas have been of interest to big miners for years but exploration has stalled at various times due to the country’s internal conflict, low metal prices, prior consultation and environmental permitting issues.

Colombia has its sights set on being a large copper producer to replace falling revenue from hydrocarbons and the first step along that path is finding large deposits, which this resolution should facilitate. However, any deposits found will ultimately require to undergo a process to remove them from forest reserve areas and to measure up to Colombia’s environmental permitting regs, which are some of the toughest in the region.

So Colombia copper speculators be like….

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News from MSD Partners

Enduro Metals reported additional 2021 diamond drilling results which further confirms the discovery of an important alkalic copper/gold porphyry discovery at Burgundy Ridge. Burgundy is 1 of 4 major systems on the Company's wholly-owned 653 km2 Newmont Lake project in the Golden Triangle of northwestern British Columbia.
Meridian Mining says the metallurgical program at Cabaçal has recently intercepted some of the strongest intervals of copper mineralization seen to date, including flat-lying semi-massive chalcopyrite layers with local sub-vertical over printing features in CD-094.
District Metals said exploration work on the road-accessible Bakar Property has identified a large and high priority target, named Elephant Crossing, which is defined by strongly altered adjacent host rocks coincident with geochemical and geophysical anomalies.
Elemental Royalties said holders of a firm majority of its shares have reiterated to management that they intend to reject the all-share hostile takeover bid from Gold Royalty.