The expression Doctor Copper is market terminology for the base metal that is reputed to have a “Ph.D. in economics” because of its ability to predict the overall health of the global economy. Because of copper’s widespread applications in most sectors of the economy, from homes and factories to electronics and power generation and transmission, demand for copper is often viewed as a reliable leading indicator of economic health. Copper prices have been on a tear since the start of November when it became apparent that China was already well into its post pandemic recovery. With the price rallying 42% from US$3.05/lb to a high of US$4.35/lb in late February.
Since that time we have seen copper prices consolidate in the US$4.00/lb range. But in recent weeks the US’s key economic numbers have been providing optimistic signals that the country’s recovery is accelerating as citizens get vaccinated and the economy returns to something more representative of normal. Layer on that, the Biden Administration’s infrastructure plan and the global push for a greener economy and you can see why momentum continues to build, not just for copper, but many base metals. And this isn’t just a short term trend, this energy transition should last for at least another decade.
There are several ways to play the copper trade but one option to get exposure to copper is with Kodiak Copper Corp. (TSXV: KDK | OTCQB: KDKCF). Kodiak gives an investor the leverage of having a discovery with exploration upside at the 100% owned, 9,733-hectare MPD copper-gold porphyry project near Princeton, British Columbia plus additional exploration upside at the 100% owned Mohave copper-molybdenum-silver porphyry project in Mohave County, Arizona. The MPD project is in a proven, mineral producing belt with mines nearby (Copper Mountain, Highland Valley, New Afton), some with similar geology and mineralization. Additionally, MPD is easily accessible via highways with excellent road and trail access, close to nearby mines, transmission corridor and the towns of Merritt and Princeton making this a cost-effective location to explore.
Recent drill results at MPD have reported 213 m of 0.65% Copper and 0.37 g/t Gold (1.00% CuEq) and 171 m of 0.62% Copper and 0.43 g/t Gold (1.03% CuEq). Kodiak’s drilling has encountered significant copper-gold mineralization and altered porphyritic host rocks that display all the hallmarks of a well-developed alkalic porphyry system (See image below).
On March 15, 2021, Kodiak announced the drill program has resumed on its exploration program at the MPD copper-gold porphyry project. Kodiak is fully funded for up to 30,000 metres of drilling as well as further geophysical and geochemical surveying, prospecting and geotechnical studies.
This exciting exploration opportunity is combined with a pedigreed leadership team with a track record of discovery and shareholder returns. The team is led by CEO & President Claudia Tornquist formerly General Manager at Rio Tinto working extensively with Rio Tinto’s diamond and copper operations. She also held the position of EVP Business Development for the streaming company Sandstorm Gold. Additionally, Kodiak’s founder and Chairman is Chris Taylor who also is founder, CEO and President of TSXV listed Great Bear Resources Ltd., which made a recent district-scale gold discovery in Canada. As well, Kodiak is also part of Discovery Group led by John Robins, one of the most successful mining entrepreneurs in Canada whose resume includes being founder and Director at Kaminak Gold through to its acquisition by Goldcorp for $520 million in 2017.
Kodiak has $14 million in the treasury, a tight share structure with just over 45 million shares outstanding, and backing from a world-class mining company in Teck Resources which owns 9.3% of the company. There’s a lot to be excited about for the coming weeks and months at Kodiak Copper as they return to drilling the MPD project and anything else they find the time for.