Copper price: What’s in store for 2025
The bellwether metal had a rollercoaster 2024, will next year bring more wild swings?
Duluth Metals (TSX: DM) reported results Friday of 35 new drill holes completed at its Maturi deposit, which is part of the company’s 60/40 joint-venture with Antofagasta PLC (LSE: ANTO).
The infill drill program was completed on 50 foot intervals across two profile lines and focused on verifying the continuity of mineralization at Maturi.
The new data will allow the joint-venture to upgrade Indicated resources to the Measured category in an updated resource estimate.
AMEC E&C Services has been retained to complete a revised technical report along with an updated National Instrument (NI) 43-101 compliant mineral resource.
Highlighted results from Friday’s news releases included 208 feet of 0.80% copper, 0.23% nickel and 0.701 g/t total precious metals (platinum, palladium and gold) in drill hole MEX-04525 as well as 387.8 feet of 0.61% copper, 0.19% nickel and 0.419 tpm in hole MEX-0466. True widths are estimated to be no less than 80% of core length.
“It is seldom, if ever, that you can expect to match new drilling to an existing geological model with this kind of precision,” said Duluth Metals President Vern Baker. ”The way this drilling matches to the existing model shows once again how this resource has a consistency and continuity beyond most metallic resources.”
Maturi is one of three deposits that make up the joint-venture’s Twin Metals Minnesota Project. Total NI 43-101 Indicated resources across all three deposits total 1.16 billion short tons along with Inferred resources of an additional 1.26 billion short tons.
Using a 0.3% copper cut-off, the most recent resource estimate outlined contained metals totaling 13.6 billion pounds of copper, 4.4 billion pounds of nickel and 21.4 million ounces of total precious metals, making it one of the largest undeveloped copper-nickel-PGM projects in the world. Based on its sheer size the mine life would span well over a century.
The 2009 Preliminary Economic Analysis (PEA) calculated a Net Present Value (NPV) of $1.6 billion and an Internal Rate of Return (IRR) of 23% using a 10% discount rate. Initial capital expenditures to develop the project were estimated at $1.3 billion.
The joint-venture has retained Bechtel Engineering to prepare a Pre-Feasibility Study (PFS) for the project.
Located in the Duluth Complex of northeastern Minnesota, the potential for a truly world-class mining district continues to take shape. As reported by JMN last week, PolyMet Mining (TSX: POM) is close to obtaining permits to develop its NorthMet deposit, which will likely open the door for Duluth Metals and other mining companies to begin developing their projects as well.
Shares of Duluth Metals are traded on the TSX under the ticker symbol DM. The company has 125 million shares outstanding and holds a market cap of just $109 million. Shares are trading near the bottom if their 52-week range.
