World Copper Ltd (TSX-V:WCU, OTCQB:WCUFF) told investors that it is poised for “sustained growth” in 2022 as it plans the next phase of drilling at its flagship Escalones project in Chile, and advances exploration at its new Zonia project in Arizona.
In a corporate update, CEO Nolan Peterson said it was an “exciting time” for the company, while he reflected on a busy past year which saw World Copper debuting successfully on the TSX Venture Exchange in January.
“While we all prepare for the upcoming holiday season and time with our families and loved ones, rest assured that our tireless efforts to build World Copper continue unabated,” said Peterson.
WATCH: World Copper gets Cardero shareholder approval to merge their respective businesses
In April, World Copper announced the merger with Cardero Resource Corp (TSX:CDU) to acquire the Zonia project in Arizona. It is now on the cusp of completing the acquisition.
“In 2022 we will look to welcome Zonia into our portfolio of projects. Zonia is significantly undervalued and as such we will look to begin rewriting the story on Zonia with a preliminary economic assessment (PEA) update in early 2022 to repeat the success of Escalones,” said Peterson.
Concurrently, the firm plans to start definition drilling of the main resource in preparation for more detailed engineering studies, as well as a program targeting the north-eastern anomaly at Zonia, which has the potential to expand the resource.
“Our aim will be to turn Zonia into an Escalones-sized resource in Arizona a premier jurisdiction for mining development,” said the company.
Crown jewel asset
The company said that Escalones has become the “crown jewel" in its portfolio. The re-defining of the resource as an oxide copper deposit has allowed World Copper to fast-track a PEA for Escalones. The PEA is expected to be delivered early in the first quarter of 2022 and will provide “a clear indicator” of the potential value of the property, noted the company.
“While we advance Escalones down a development path, significant blue sky exploration potential exists with drilling of the four other large footprint targets at Escalones,” said the company. The most “attractive target,” according to the company is Mancha Amarilla, immediately south of and adjacent to the existing defined resource.
“We expect to have received necessary drill permits and start a drill program on this target in January of 2022,” said the company. Favorable results would allow World Copper to grow the existing resource, making more “valuable that which is already a fantastic resource,” it added.
The company said it is poised for growth in 2022 as it plans the next phase of drilling at Escalones, and exploration and development of Zonia against the backdrop of rising copper prices.
“Copper demand is expected to remain strong in the near-term and strengthen over the long-term further adding tailwinds to our endeavors,” said the company.
The copper price jumped this week with the US Federal Reserve’s upbeat reading of the world’s largest economy. March delivery contracts were exchanging hands for $4.32 a pound ($9,504 a tonne) on Thursday. The copper price is up nearly 5% from two-month lows of $4.12.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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