Jr. IDs High-Priority Targets at Historic BC Copper-Silver-Gold Project

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GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB) announced that a recently completed block-modeling exercise has yielded new high-priority drill targets at its Alwin Mine Copper-Silver-Gold Project in British Columbia.

The recently completed exploration targeting modeling and conceptual open pit and stope optimization exercise highlighted new high-priority drill targets close to the conceptual pit shell, the company said in a release on Tuesday.

"The targets have the potential to expand existing zones of poorly delineated high-grade copper mineralization," the company said in a release.

The new exploration model for the project replaces plans for an underground mining operation similar to one that produced 3,786 tonnes of copper, 2,729 kilograms of silver, and 46.2 kilograms of gold over 65 years. The company said during that timeline, the average diluted head grade was 1.5% copper.

However, 321gold.com's Bob Moriarty pointed out on October 3 that the property is adjacent to Teck Corp.'s Highland Valley Mine, the largest open-pit porphyry copper-molybdenum mine in western Canada.

"Eventually someone realized that Teck was operating open pit mines and since Teck is the only natural buyer, they should design what they were doing around what Teck wanted, not what they thought best," Moriarty wrote. "So, the technical team at GSP Resources changed their model to an open pit and just released the block model on October 1."

Moriarty noted, "The boundary with Teck is a mere 1 km away from the planned Alwin open pit. Teck has been drilling right up to the boundary."

"It has copper, gold, and silver potential and an operating mill right next door. I'm not sure I see a downside. The more the company derisks the project, the higher the potential for Teck to take them out."

Bob Moriarty also wrote for Streetwise on October 15, saying about GSPR, "The company's market capitalization is relatively small, estimated at around $4 million. This valuation includes recently issued shares. As GSP Resource continues to develop the Alwin project, it may become an increasingly attractive acquisition target for larger mining companies operating in the area."

*Technical Analyst Clive Maund is also optimistic about the stock. On October 15, 2024, he rated the company as a Strong Buy for all time horizons. 

More Than a Dozen Near-Surface Targets Found

GSP said the Alwin Mine Copper-Silver-Gold property is approximately 575.72 hectares and is located on the semi-arid, interior plateau in south-central British Columbia.

The historic underground mine was 500 meters long by 200 meters wide by 300 meters deep. Production took place between 1916 to 1981 from five major subvertical high-grade copper mineralization zones totaling 233,100 tonnes, the company said.

"The new drill targets are the first advancement of the Alwin Mine project with the results of GSP's recently developed exploration model now in hand," GSP said. "The company is now able to prioritize expansion targets relative to their potential to be accretive to the modeled mineralization as constrained by the conceptual open pit shell." 

Technical Analyst Clive Maund is also optimistic about the stock. On October 15, 2024, he rated the company as a Strong Buy for all time horizons. 

The development of the conceptual pit shell has allowed the identification of a broader range of near-mine copper targets that have not been historically fully evaluated, the company said.

"Historic mining at Alwin focused on high-grade copper shear zones having width and grade characteristics sufficient to support relatively higher cost underground mining," GSP noted in the release.

The ongoing targeting exercise at the project has yielded over a dozen near-surface exploration targets along strike and within the hanging wall and footwall of the Alwin copper-silver-gold shear system, the company said.

According to GSP, highlights of the new Alwin Mine drill targets include:

• A western strike extension targeting historic drill hole S-81-6 that intersected thick overburden and an intensely clay-kaolin altered granodiorite fault zone over a 10-meter core interval along the western projection of the Alwin Mine trend (2 Zone and 6 Zone) for which no assays are recorded.
• An eastern strike extension, targeting an untested near-surface projection of high-grade shear vein (4 Zone) historically exploited on multiple underground sublevels and intersected in historic drill hole 67-28, which recorded assays of 13.4 meters averaging 2.1% copper (Cu); including 6 meters of 3.8% Cu.
• The southern footwall to target relatively untested in pit secondary shear veins (South 2 Zone) returning 2 meters averaging 4.4% Cu in drill hole 68-45; and 1.8 meters averaging 3.2% Cu in drill hole AM-21-02.
• The northern hanging wall, targeting relatively untested in pit secondary shear veins (8 Zone).

The Catalyst: Copper Sparking the World's Energy Transition

Copper is vital for the world economy's energy transition. Outside of silver, it's the best natural conductor of electricity in nature and is needed for everything from batteries to solar panels. Electric vehicles contain as much as 175 pounds of copper. Power-hungry artificial intelligence (AI) is also expected to put a squeeze on electricity demand.

The "battle cry of the energy transition is 'Electrify everything,'" Vince Beiser wrote for WIRED. That translates into a lot of copper, which "we need it to massively expand and upgrade the countless miles of power cables that undergird the energy grid in practically every country," the author wrote. "In the United States, the capacity of the electric grid will have to grow as much as threefold to meet the expected demand."

It traded at US$4.46 per pound Monday, down 2.74% from the prior week, but up 14.39% since the beginning of the year, according to USA Today.

According to Credendo, demand for copper could double by 2035. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles in the long term, analysts have said.

An informal poll of attendees at a London Metal Exchange seminar on Monday showed that 46% of attendees said copper was the base metal that is likely to have the most upside, slightly down from last year's 53%, Reuters reported.

Ownership and Share Structure

Insiders and management own about 30% of the company, the rest is retail.

Top shareholders include Richard J. Billingsley with 11.57%; President Chief Executive Officer and Director Christopher Simon Dyakowski with 9.5%; Chairman and Director Christopher Ian Dyakowski with 4.03%; Director Jordan P. Trimble with 3.02%; and Director Justin Garner Kates with 1.34%.

The company has 29.79 million shares outstanding with 20.97 million free-float traded shares. Its market cap is CA$3.4 million and it trades in a 52-week range of CA$0.07 and CA$0.18.