Arras Minerals

Arras Minerals (TSX: ARK) is focused on exploration in Kazakhstan, a Central Asian country and former Soviet republic that ranks among the world’s top 10 copper producers.

Arras has assembled a 3,000-sq.-km land package in the Pavlodar region of northeastern Kazakhstan. Its flagship property, the Beskauga gold-copper-silver deposit, is about 300 km northeast of the country’s capital, Astana, and roughly 130 km from KAZ Minerals’ Bozshakol copper-gold mine. Bozshakol and Beskauga are situated in the country’s underexplored Chingiz Volcanic Arc.

Arras has an option to acquire Beskauga from CopperBelt AG, a private Swiss mineral exploration company.

Shortly after Arras completed a resource estimate on Beskauga in June 2022, Canadian mining giant and copper producer Teck Resources (TSX: TECK.A/B; NYSE: TEC) took a 9.9% stake in the junior. In a private placement last November, Teck acquired 6.7 million common shares at 45¢ per share for proceeds of up to $3 million.

The June estimate outlined an indicated resource of 111.2 million tonnes grading 0.49 gram gold per tonne, 0.3% copper and 1.3 grams silver per tonne for 1.8 million oz. of contained gold, 334,000 tonnes of copper and 4.8 million oz. gold. Inferred resources add 92.6 million tonnes grading 0.5 gram gold, 0.24% copper and 1.1 grams silver for 1.5 million oz. of gold, 222,000 tonnes of copper and 3.4 million oz. of silver.

The resource was based on 118 historic diamond drill holes (45,606 metres) that Copperbelt AG drilled between 2007 and 2017, and four new drill holes (3,694 metres) completed by Arras. All holes were drilled from surface and vary in depth between 150 and 1,164 metres.

The project’s surrounding infrastructure includes paved road access, 1,100 kVA power lines and heavy rail all within a 25-km radius.

Arras Minerals has a market cap of $19 million.

Alta Copper
Alta Copper (TSX: ATCU; US-OTC: DNCUD), which changed its name from Candente Copper in May, owns 100% of Cañariaco, a copper project in northern Peru, about 150 km of the city of Chiclayo.

Cañariaco is among the largest copper deposits in the Americas not held by a major mining company and consists of two key deposits — Cañariaco Norte and Cañariaco Sur — and a porphyry target Quebrada Verde. All are within a 4-km trend and are part of what the company describes as “an extensive porphyry complex” spanning 5 km in length and an average width of 2 km.

A preliminary economic assessment (PEA) of Cañariaco Norte last year envisioned an open pit mine producing 173 million lb. copper, 31,395 oz. gold and 703,588 oz. silver annually over an initial mine life of 28 years. Preproduction capex was estimated at US$1 billion with a payback of 7.1 years at a metal price of US$3.50 per lb. copper. The early-stage study forecast an after-tax net present value (8% discount rate) of US$1 billion and an internal rate of return of 16.3% based on a copper price of US$3.50 per lb.

The PEA was based on measured and indicated resources of 1.1 billion tonnes grading 0.4% copper, 0.1 gram gold per tonne and 1.7 grams silver (0.4% copper-equivalent) for 9.3 billion lb. copper, 2.1 million oz. gold and 59.4 million oz. silver.

The deposit also contains inferred resources of 410.6 million tonnes averaging 0.3% copper, 0.1 gram gold and 1.4 grams silver (0.32% copper-equivalent) for 2.7 billion lb. copper, 600,000 oz. gold and 18.1 million oz. silver. The resource used a copper-equivalent cut-off grade of 0.15%.

The company is working on an updated PEA and plans to have it done in the third quarter.

Cañariaco Sur is about 1.3 km south of Cañariaco Norte and has an inferred resource based on 15 holes drilled into the eastern portion of a large geochemical anomaly. It contains 2.2 billion lb. copper, 1.2 million oz. gold, 15 million oz. silver and 18.9 million lb. molybdenum contained in 385 million tonnes grading 0.3% copper, 0.1 gram gold, 1.2 grams silver and 22 parts per million molybdenum (0.32% copper-equivalent). The resource used a 0.15% copper cut-off grade.

Fortescue Metals (ASX: FMG) holds about 25% of Alta’s shares outstanding and high net worth individuals in Peru own roughly 20%.

Alta Copper has a market cap of roughly $38 million.

Enduro Metals
Enduro Metals (TSXV: ENDR; US-OTC: ENDMF) holds one of the largest contiguous land packages in the heart of northwestern British Columbia’s Golden Triangle. Its 688-sq.-km Newmont Lake project contains its flagship copper-gold porphyry discovery Burgundy Ridge.

The discovery hole at Burgundy Ridge in 2021 returned 331 metres grading 0.4 gram gold per tonne, 0.3% copper, 0.5% zinc, and 5.5 grams silver (0.7% copper equivalent) starting from 5.5 metres in drill hole BR21-001. The hole included a sub-interval of 146 metres grading 0.6 gram gold, 0.4% copper, 0.5% zinc and 8.2 grams silver (1% copper-equivalent).

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