Copper is the key metal to electrify the world going forward. Demand is projected to almost double from just over 25 million tonnes in 2021 to nearly 49 million tonnes in 2035.
It is impossible to meet the growing demand with current exploration and feasibility stage project trends.
Projected to begin in the middle of this decade, supply deficits could have serious consequences across the global economy, affecting the timing of net-zero emissions by 2050.
Source: 2022 S&P Global | The Future of Copper: Will the looming supply gap short-circuit the energy transition?
Copper mining profits have surged with rising copper prices since 2021 with projected EBITDA increases of 12.9% year-on-year from 2022.
However, only two new projects entered commercial production in 2022 with the majority of future supply growth expected from planned expansions at existing mines.
Source: 2022 S&P Global | The Future of Copper: Will the looming supply gap short-circuit the energy transition?
If Australian companies play their cards right, they’re first in line to mine the resources that will drive our future energy sources.
In the spotlight: ASX copper stocks
Legend Mining
Exploration activities continued during the June 2023 quarter at Legend Mining Ltd (ASX:LEG)’s Rockford Project, with diamond drilling starting at the Octagonal Prospect, continuation of the reprocessing of the Mawson seismic cube, and innovative electromagnetic surveys across highly ranked regional targets.
The company has hit the right rocks and host stratigraphy at Octagonal that are “marker characteristics for a Nova style nickel-copper orebody”, according to executive chair Mark Wilson.
A $6 million capital raise during the quarter bolstered the treasury and saw the arrival/rerating of several names in the top 20 shareholder list along with the ongoing support of the top two shareholders Creasy Group and IGO Limited (ASX:IGO).
Regionally, extensive datasets have continued to be expanded and interrogated to generate a new pipeline of prospective nickel-copper-cobalt sulphide targets across the Rockford Project.
Orion Minerals
Orion Minerals Ltd (ASX:ORN, JSE:ORN) transitioned to the mine development and construction phase at its portfolio of advanced base metals projects in the Northern Cape Province, South Africa after concluding key elements of an overarching strategic funding package.
The company is completing an updated feasibility study on its accelerated development strategy at the Prieska Copper-Zinc Project, with early dewatering and trial mining underway to provide early access to cash flow.
Drilling in progress for installation of rising main pump column from the 178 level.
An updated resource estimate has been completed for the +105m Level Crown Pillar Block Prieska, with an increase in both tonnes and grade to 2.26 million tonnes at 1.7% copper and 1.6% zinc.
The Prieska total resource has increased to 30.98 million tonnes grading 1.2% copper and 3.6% zinc.
A feasibility study is also well advanced on Orion’s second base metals hub, the Okiep Copper Project.
Australian Gold and Copper
Australian Gold and Copper Ltd (ASX:AGC) continued its search during the quarter for high-grade Cobar-style gold-copper deposits in New South Wales.
Twenty square kilometres of induced polarisation (IP) geophysical surveys were completed across three sites at the South Cobar Project.
These surveys have helped identify five strong drill targets supported by surface geochemistry in the sparsely explored southern extension of the Cobar Basin.
The Hilltop prospect has emerged as the highest priority drill target for AGC given its outcropping surface expression and high tenor gold in rock chips.
AuKing Mining
AuKing Mining Ltd (ASX:AKN) made progress towards advancing its Koongie Park Copper-Zinc Project in Western Australia's Hall's Creek region during the quarter after a scoping study confirmed its potential to be a financially robust, globally competitive operation.
The completed scoping study revealed plans for the mining operation to source mineralisation from four open-pit mines - Sandiego, Mt Angelo North, Onedin and the later-staged operation at Bommie - alongside an underground mine at Sandiego.
AuKing’s scoping study provides a promising outlook, indicating strong project economics including a pre-tax NPV8% of ~A$176.9 million and a life of mine EBITDA of A$443.8 million.
AuKing has also completed the first phase of its 2000-metre drilling and associated exploration program at the Itigi Uranium Project in Tanzania. Results are expected within the next 8-10 weeks.
Alicanto Minerals
During the Quarter, Alicanto Minerals Ltd (ASX:AQI) finalised its acquisition of the exploration permit that includes the historic Falun mine in Sweden.
Falun Mine operated for a millennium from the 10th century to 1992, producing as much as two-thirds of Europe's copper needs and helping fund many of Sweden's wars in the 17th century.
Alicanto’s consolidated Falun Project represents a significant landholding in the Bergslagen Region of southern Sweden.
Map of Falun regional geology highlighting the key area of interest and current high-priority targets for follow-up drilling.
Mineralisation at the Falun mine consists of a significant massive pyrite and chalcopyrite core to the mineralised zone which should be reflected as a conductive and higher density target in geophysical surveys.
This work, along with securing relevant work plan approvals, is being undertaken in preparation for a planned follow-up drill program scheduled for the September 2023 quarter.
Cobre
Cobre Ltd (ASX:CBE)’s exploration efforts for Q2 were focused on the receipt and interpretation of assay results from the recently completed 5,120 metres diamond drilling program at the Ngami Copper Project (NCP) in Botswana.
The company is confidently advancing targets along the extensive strike length of drill-proven anomalous copper-silver mineralization at NCP.
Additionally, Cobre started an air core (AC) and reverse circulation (RC) drill program on the neighbouring Kitlanya West (KITW) Project.
District scale opportunities on the northern Kalahari Copper Belt margin where Cobre holds a dominant land position.
With a dominant land position, covering an area of over 2,672 square kilometres of highly prospective geology on the unexplored northern margin of the Kalahari Copper Belt (KCB) in Botswana, Cobre is in a prime position to continue to advance exploration towards unlocking a new discovery in the region.
Cooper Metals
During the quarter, Cooper Metals Ltd (ASX:CPM)’s on-ground exploration activities were concentrated on its flagship Mt Isa East Copper-Gold Project in Queensland.
The project covers around 1,637 square kilometres of tenure with numerous historical copper-gold workings and prospects already identified for immediate follow-up exploration.
During the period, the fieldwork included a new VTEM survey over EPM28087 and regional geochemical sampling and mapping as well as RC drilling on the Ardmore tenement just north of Carnaby Resources Ltd (ASX:CNB)’s Mt Hope deposit.
Cooper Metals managing director Ian Warland explained in the quarterly report: “The detailed VTEM survey in the northern tenement area has generated three robust drill targets, while continued early-stage mapping and sampling is bearing fruit in the way of new prospects such as Raven.
“The recent RC drilling and geological review at Ardmore confirms the high prospectivity of the area for Cu-Au deposits.
“Cooper is planning around 5,000m of drilling to test targets in the 2023 field season.”
Cyprium Metals
Work is underway on a large-scale open pit mine life development at Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF)’s Nifty Copper Mine in WA, based on the current resource of 940,200 tonnes of contained copper.
With fresh capital of A$24 million secured via the placement of shares, Cyprium has set its sights on restarting the Nifty copper operations.
The plan is to develop a large-scale open-pit mine, which will lower the development’s capital requirements and overall risk.
A starter oxide operation will complement the large-scale sulphide open pit, together supporting a 15-year-plus mine life.
Cyprium has finalised a restart study for its starter operation and is onto the scoping stage, which will lead to a detailed open pit life of mine study for the Nifty asset.
Emmerson Resources
Emmerson Resources Ltd (ASX:ERM) has a commanding land position and is exploring the Tennant Creek Mineral Field (TCMF) in the Northern Territory, one of Australia’s highest-grade gold and copper fields.
The company is also actively exploring two early-stage gold-copper projects in New South Wales, identified from the application of 2D and 3D predictive targeting models.
High-grade zones identified at Hermitage
Emmerson managing director Mike Dunbar said in the quarterly update: “I am delighted to have joined the Emmerson team, who have been busy progressing our exploration efforts in New South Wales, while access in Tennant Creek has been limited due to a long wet season and unseasonal heavy rainfall in early July.
“It is pleasing that we are now drilling at our 100% owned Hermitage Project in Tennant Creek, with the +2,000m RC and diamond drilling programme progressing as scheduled.
“This drilling has been planned to test for extensions of the wide and high-grade zones identified from the previous drilling which included zones up to 116m @ 3.38% copper with 0.88 g/t gold and 94.4m @ 2.74% with 5.58 g/t gold.
“Drilling is expected to be completed in the next few weeks with results anticipated progressively from late August to early September.
“Results from the Kiola project in New South Wales are also pleasing.
“While the drilling hasn’t yet intersected the targeted porphyry, the extensive alternation is very encouraging, with the system extending over a large area, and the surface alteration now traced down plunge, validating our geophysical models.”
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