Moreover, a dearth of significant new copper discoveries and geopolitical uncertainty over the next few years will make quality assets with good infrastructure, pro-mining and stable jurisdictions, and exploration potential so much more valuable.
In the absence of substantial new copper discoveries, Idaho Copper (OTC:COPR) is advancing one of the largest undeveloped copper projects in the Americas. The CuMo project is located in the state of Idaho in the United States; one of the most stable mining jurisdictions in the world today. In addition, this project’s economics benefit immensely from the high-value co-products molybdenum and silver.
In the USA, and in fact, globally, there are not many other copper projects of similar quality that have progressed as far along the value curve as Idaho Copper’s CuMo porphyry-hosted stockwork deposit. The CuMo Project is a drilled, advanced project with a long history of exploration, and a substantial Measured and Indicated Resource containing almost 4 billion pounds of copper, 1.6 billion pounds of molybdenum, and 180 million ounces of silver.
Fighting the headwinds
New copper developments in the world are few and far between. And many of those discoveries are facing significant headwinds in the race to avoid the looming copper cliff.
Even established projects in traditional mining jurisdictions are feeling the pressure as the world’s hunger for copper intensifies in the run-up to the much-anticipated energy transition, in which copper, and molybdenum, will play an integral role. Thus, the world needs boatloads full of additional copper to reach the much-talked-about, seemingly elusive, net zero by 2050.
According to investment bankers Goldman Sachs, the market will need upwards of 8 million tonnes (Mt) of extra annual copper production by 2030 to meet the growing demand for the red metal. This is at a time when supply from traditional copper mining countries and large ore bodies are declining towards terminal grade. At the same time, the pipeline of new copper discoveries of substance is diminishing.
To put this figure into perspective, 8Mt of additional annual copper production by 2030 would mean that eight exact replicas of BHP’s Escondida copper mine in Chile would need to be built in the next seven years—a big ask considering that new mines can take more than 10 years to be explored, permitted and developed from scratch.
Escondida’s current capacity is at most about 1.4Mt of copper production per year, making it the largest copper mine in the world, followed by Anglo-American’s Collahuasi, also in Chile, and Freeport Mason’s Grasberg mine in Indonesia.
Ivanhoe Mines’ Kamoa/Kakula project in the Democratic Republic of the Congo (DRC), the largest copper discovery on the African continent and the ninth biggest copper deposit in the world, is expected to produce only 450,000 tonnes per annum from next year, a far cry from what is needed to fill all the supply gaps.
Idaho Copper’s CuMo deposit
At a major project like Idaho Copper’s CuMo, the sulfide porphyry stockwork ore body lends itself ideally to ore sorting technology, which makes it easier to separate waste from the ore and allows the removal of non-valuable waste even before the material reports to the processing plant.
Ore sorting thus allows the mine to build a smaller concentrator, spend less capital upfront, and to materially improve the head grade of the ore reporting to the concentrator.
Good infrastructure is a bonus
A big advantage for projects in developed countries and in mature jurisdictions like the USA, and in Idaho specifically, is the well-established infrastructure in terms of roads/rail, water, and electricity. When one ventures into frontier investment destinations in developing countries, the rewards can be extremely high, but the capital cost could be debilitating, especially if junior mining companies need to invest in developing non-existent infrastructure from scratch within a limited budget.
Idaho Copper’s CuMo project is located in central Idaho, in an area that is historically mining friendly, with good access to roads, rail transport, electrical power, and a trained workforce. The CuMo Project is about 40 miles northeast of Idaho’s capital city, Boise. The project site can be accessed by passenger car or truck. Total drive time in good weather is not more than one hour and 15 minutes.
For exploration activities, power will be provided via diesel generator sets, or via equipment (drills, trucks, etc.) with their own contained fuel source. For development activities, the closest main power lines are in Horseshoe Bend which is 21 miles on a direct line from the project site.
The Idaho Power Company has plans to construct a main power line to the town of Garden City which would run within five miles of the CuMo Project. For future development purposes, Idaho Copper will evaluate the use of battery or hydrogen-powered mobile equipment, and conveyors which could partially generate site energy requirements. The Company is well aware of the global push towards carbon footprint reduction and intends to analyze new innovative technologies that are consistent with this mandate.
Small amounts of water needed for exploration activities have been historically sourced from nearby creeks or from a drill hole on site that has water access. There are several options available to Idaho Copper to provide process water to the project at the development stage, including the appropriation of water rights, or purchasing or leasing from existing water rights holders.
Boise, the capital of Idaho in a metropolitan area of over 750,000 people, offers a trained exploration, development, and mining workforce and many expert professional mining and related services. Given the proximity of the project to Boise, CuMo Project staff and contractors can choose to live in Boise, or in smaller area communities such as Horseshoe Bend or Garden Valley which are closer to the project.
How Idaho Copper (OTC:COPR) will help plug the copper supply gap
What is needed to fill the base metal supply deficits right now, are nimble, high-quality, and advanced projects that can start producing before the end of this decade and continue operations for years to come. Idaho Copper’s CuMo project fits this bill on all counts—size, location, infrastructure, extensive mine life, and expert management. With the application of ore sorting, CuMo is expected to be competitive in terms of cash cost and capital intensity, with robust economics. The Company anticipates to release an updated Preliminary Economic Assessment (PEA) during the first half of 2024 to further highlight the benefits of the CuMo project.