The copper sector is widely regarded as being one of the possible future winners from the green energy and electric vehicle (EV) revolution this decade. Just recently Goldman Sachs “proclaimed the dawn of a new commodity supercycle“, with copper as their number one commodity pick. A supercycle is not just a short upswing it is a decade or more long upswing caused usually by a significant demand surge. In the case of copper, the demand surge will come from solar energy, wind energy, and EVs.
For example, BHP says that one wind turbine uses 4 tonnes of copper (video link), which certainly is a lot of copper especially given copper currently trades at US$7,396/tonne.
Copper is essential for the green energy revolution, used in solar, wind, and EVs
Kodiak Copper Corp. (TSXV: KDK) 100% own the very large (9,733-hectare land package) MPD copper-gold porphyry property in a proven, mineral producing belt, in British Columbia (BC), Canada. For those that are new to Kodiak Copper, the Company amalgamated 3 projects into one – Man, Prime, Dillard – hence the name MPD. Management is top tier with a great track record of success. What’s most exciting is their safe location and potential for a large scale copper-gold project, just as we enter the decade of renewables (solar, wind) and EVs taking massive market share.
The MPD Property has road access and is close to nearby power, towns, and other mines
The MPD Property has numerous showings of copper and gold confirmed across a large, 10km2 area. Drill results point toward the potential for a large copper-gold porphyry system. There is mineralization from at or near surface to as deep as ~800 meters with huge potential exploration upside across the property.
Last September 3rd, 2020 Kodiak Copper announced drill/assay results which were ‘spectacular’ in my opinion. The results included a massive 282 m of 0.70% copper and 0.49 g/t gold (1.16% CuEq). Due to this, the stock raced up from C$0.50 on August 24th to C$2.80 as of September 28th for a 460% increase. The good news for new investors is the hype in the stock price has since settled down, with the price now back at C$1.64 and trading on a market cap of just C$66 million, despite plenty of further good news since then.
Kodiak Copper has continued to produce very strong drill results such as:
- MPD-20-004: 535.1 m of 0.49% Copper and 0.29 g/t Gold (0.76% CuEq*) between 201.9 and 737.0 metres down hole, with a higher grade core (282 metres of 0.70% copper, 0.49 g/t gold).
- MPD-20-005: 515.8 m of 0.41% Copper, 0.22 g/t Gold and 1.50 g/t silver (0.63% CuEq*) from 223.5 to 739.3 metres down hole, with a higher grade core (192 metres of 0.74% Copper and 0.48 g/t Gold).
Cross-sectional summary of drill results at the MPD Project – Gate Zone
Looking ahead Kodiak Copper states: “The Company has just completed a successful 2020 drill campaign that resulted in a transformative discovery of a high-grade central core within a broader, well-developed copper-gold porphyry system at the Gate Zone. Kodiak will continue exploring at MPD in early 2021 with a fully funded, significantly larger program. Plans include up to 30,000 meters of drilling in several target areas, as well as further geophysical and geochemical surveying, prospecting and geotechnical studies.”
It should also be mentioned that in the next few weeks the final assay results from the 2020 drill program are due which will be most interesting to see.
I agree with Goldman Sachs that we are likely entering a green energy and EV commodities supercycle this decade. Battery metals (lithium, cobalt, graphite, nickel), key rare earths, and copper are likely to be the big winners.
Investors can look to position themselves ahead of the supercycle by buying into quality and promising junior miners now. Kodiak Copper is still a junior but they have plenty of potential with a possible large sized copper-gold porphyry deposit in BC Canada and the right management to deliver. They also have two other promising projects – The Mohave Copper-Molybdenum-Silver Porphyry Project in Arizona USA, and the Kahuna Diamond Project in Canada. One to follow for sure.
Further reading and viewing: