“I have switched from being a structural copper bear to a structural copper bull.”
Leigh Goehring, Barron’s Commodity column May 2021.
“Copper is the new oil; the 2020s are expected to be the strongest phase of volume growth in global copper demand in history.” – Goldman Sachs (April 2021)
The ongoing motto of the current US Administration is “Build Back Better”. Economic advisers to President Biden have urged a sweeping $3 trillion package to boost the economy, beginning with a massive infrastructure plan that’ll require massive amounts of raw materials to carry out.
Upon the announcement of these plans, demand for metals spiked, with one crucial metal in particular, that almost immediately nearly broke a 10 year high: COPPER.
Now analysts are calling copper “the new oil”, with low inventories and rising demand potentially pushing the metal to $20,000 per ton.
With the ESG (Environmental, Social & Governance) movement being enforced by global governments and embraced by institutional investors, and an accelerating global pivot toward a greener economy, there is more demand for copper than ever before in history. In fact, the price of copper is breaking all time highs at this writing.
Wedgemount Resources (CSE:WDGY), whose shares have recently listed for trading on the CSE, has strategically put together one of Canada’s most compelling copper plays, in the right place, at the right time.
Centrally located in the midst of some of BC’s most productive mining projects, and directly within the province’s most prominent copper corridor, Wedgemount Resources (CSE:WDGY) is coming out of the gate with a portfolio of copper and gold exploration projects comprising of over 35,000 hectares in some of B.C.’s most sought-after districts.
With nearly 100 electric vehicle name plates predicted to hit the market by 2024—many of which come from North America—manufacturers will be looking to secure reliable, domestic sources for base materials critical to the manufacture of these vehicles. Copper is near the top of that shopping list; and B.C. is among the most favored jurisdictions for exploration success in North America.
Led by a leadership and advisory team comprised of finders, developers and proven industry winners, Wedgemount is perfectly positioned and timed to establish itself as a major player in this COPPER BOOM.
Wedgemount Resources (CSE:WDGY)
Post-IPO Shares Outstanding: 21.05 million
Management and Founders: ~85% ownership
60 Second Summary
- Analysts are predicting copper is on a trajectory towards a once in a 100-year event sparked by short supplies and accelerated demand.
- Seen as an economic bellwether, copper is already soaring to fresh all-time highs at the center of a global rebound from pandemic boosts
- Wedgemount Resources (CSE: WDGY) is a new IPO that’s culminated within a perfectly-timed macro opportunity window for copper and gold.
- Wedgemount’s high-quality exploration portfolio, comprised of over 35,000 hectares, is located in BC’s prolific copper belt. Their projects include historic copper – gold drill intercepts, strong geophysical targets and large soil geochemical anomalies.
- Straight-forward opportunity to de-risk Wedgemount’s properties with modern copper porphyry exploration techniques.
- Plenty of cash in hand to perform first-year exploration without dilution.
- Tightly-held share structure, with just over 21 million shares outstanding.
- Led by Group of Expert Management, Founders with a history of finding and developing significant mining plays, that owns 85% of the post-IPO shares.
- President, CEO & Director, Mark Vanry: “ Our objective has been to assemble a portfolio of high-quality exploration targets in order to both de-risk the company and create as much optionality for shareholders as possible. In particular our strategy is to acquire underexplored and undervalued copper and precious metal projects with significant geological potential. We want real success, market success.”
Why Invest In the Copper Sector?
As an up-and-coming player, Wedgemount Resources (CSE: WDGY) is precisely the type of copper explorer that the industry needs—especially because of its domestic positioning.
On the international stage, copper demand is in the process of skyrocketing—especially due to competition with China to buy supplies.
The USA isn’t alone in a drive for clean energy, as China strives to make up what Chinese metals trader Maike Group calls “years of under-investment”. Because of this push, copper prices is expected to surge to an all-time high over the next 12 months.
“Copper is going through a once-in-a-hundred-year pivot with this global transition to electrification,” Gianni Kovacevic of CopperBank Resources told Investing News Network. “The Green New Deal and on top of that the restimulation of the global economy, which is now well in excess of US $10 trillion dollars — they all help copper.”
In short, as countries push for a switch to green energy, copper is at the top of shopping lists around the world causing demand to soar… while also causing worries over critical shortages to come.
Surrounded By Producing Mines – Eagle Cu-Au Project
Beginning with a glance at the map showing Wedgemount Resources’ Eagle Cu-Au Project, it’s easy to identify its vicinity to some of BC’s most prominent copper mining operations.
It’s 2,530 hectares of prime copper-gold real estate, with year-round road access, and accommodations for the workforce within just 5km.
Historical geological mapping and sampling at Eagle has outlined a 0.8km x 3 km corridor of copper-gold mineralization, as well as widespread anomalous copper in soils.
Closeology: The project sits between both Centerra Gold’s Mt Milligan Mine just 50km to the east, and Northwest Copper’s Kwanika Copper-Gold Porphyry Development Project 60km to the north.
Because of these levels of activity in the region, ALL necessary services are within a 90 minute drive of the site, alleviating the need for helicopter support, and drastically reducing the cost of exploration.
Several companies including Noranda have completed exploration work on the property since 1966, including sampling, trenching, mag, IP and drilling on three main zones.
In 1991, Noranda completed eight drill holes into the Vector and Nighthawk zones targeting copper-gold mineralization:
- Drill hole EA91-06 from the Nighthawk zone intersected 27.28m of 0.87% Cu, 0.32 g/t Au and 3.85 g/t Ag
- Drill hole EA91-12 from the Vector Zone intersected 17.9m of 0.82% Cu, 0.47 g/t Au and 4.11 g/t Ag
- Wedgemount Resources (CSE:WDGY) has already submitted its notice of work for the Eagle project, including a multi-year area-based (MYAB) five-year permit.
Both of these zones have been interpreted to be open at depth and to the east.
How do these historical results stack up against other success stories in B.C.?
In September 2020, Kodiak Copper Corp drilled an intercept of 282m of 0.70% copper and 0.49 g/t gold. These results were enough to spark a buying rush sending the stock soaring from 0.60 to $3.40 in one month, and attracting a landmark investment from mining giant Teck Resources.
Investors paying attention to B.C.’s hot copper rush will certainly be watching Wedgemount Resources (CSE:WDGY) as their exploration efforts unfold.
Wedgemount Resources (CSE:WDGY)’s 2021 exploration program at the Eagle project will include IP geophysics, rock and soil sampling, and a minimum of 1,500m diamond drilling.
The Blue Sky
As far as upside potential, Wedgemount’s potentially biggest long-term winner comes from Cookie Cu-Au Porphyry Project.
It perfectly represents the company’s strategy to create as much optionality as possible through the drill bit. The system remains underexplored along the 4.5km NW-SE trend of anomalous copper geochemistry.
Wedgemount Resources (CSE: WDGY) spared no expense at grabbing as much quality land as they were able to. The Cookie Project has a massive footprint, consisting of +20,000 hectares of copper-gold porphyry potential, and is located 40km south of the past producing Kemess Cu-Au Mine and 200km north of Smithers, BC.
Previous exploration was done on the property by Cominco (1969), BP Minerals (1984), and Gitennes (2004), including soil and rock geochemistry, IP surveys and limited shallow drilling.
Through this previous work, a large >500ppm copper in soil anomaly was outlined, with an open-ended chargeability anomaly.
Limited follow-up historic shallow drilling intersected moderate zones of porphyry-related mineralization over a 2km footprint:
- Drill hole 69-3 intersected 20m of 0.46% Cu
- Drill hole R04-14 intersected 36.5m of 0.26% Cu and 0.12 g/t Au
Exploration targeting on the Cookie Project will be greatly improved with modern porphyry exploration techniques being used for the first time, including deep penetrating IP and deeper drilling.
Wedgemount’s 2021 exploration will commence in the early summer, beginning with 3D IP, Mag, mapping and sampling.
Tightly Held: You Can Only Enter By the Narrow Gate
Issued & Outstanding Post IPO: 21,050,000 Shares
Management/Founding Group: 85%
By industry standards, Wedgemount Resources (CSE:WDGY) is an extremely tightly held stock, launching during a window of opportunity that’s only open for a very limited amount of time.
Let’s face it, management owns so much of the paper in this company, that only ~15% after the IPO will be outside of the hands of Wedgemount’s Management and founders.
Based on the 85% post-IPO projection, that means that the trading of less than 4.5 million shares will ultimately determine what the market feels the company is worth. So far, it’s a very well structured stock.
And when this current copper-hungry market looks at this new BC play, how will it see it in comparison to its peers in the region?
QuestEx Gold & Copper Ltd (TSXV:QEX) is valued at C$41.97 million, with 39.59 million shares outstanding. It has six BC gold & copper properties—the Castle, North Rok, KSP, Sofia, Kingpin, Heart Peaks, and Hit Property.
Sun Summit Minerals Corp. (TSXV:SMN) is valued at C$40.97 million, with 51.22 million shares outstanding. Its flagship gold-silver-zinc property is the Buck Project, located in central BC. Its non-core assets are the Espiritu SMR, 1068 Project and Angeles Project, all of which are located in Mexico.
NorthIsle Copper and Gold Inc. (TSXV:NCX) is valued at C$48.69 million, with 167.89 million shares outstanding. Its flagship project is the North Island Project, at the north end of Vancouver Island, northwest of BHP Billiton’s now close Island Copper Mine.
Surge Copper Corp. (TSXV:SURG) is valued at C$56.97 million, with 134.05 million shares outstanding. Its flagship is the Ootsa Project that includes three advanced stage Cu-Au-Mo-Ag porphyry deposits strategically located adjacent to the Huckleberry mine and mill complex.
Kodiak Copper Corp. (TSXV:KDK) is valued at C$68.4 million, with 45 million shares outstanding. Its flagship is the MPD Copper-Gold Porphyry located in South-Central BC, which is accompanied by a Copper-Molybdenum-Silver Porphyry Project in Arizona and a diamond asset in Nunavut.
Northwest Copper Corp. (TSXV:NWST) is valued at C$89.68 million, with 124.55 million shares outstanding. Its BC copper properties include the Kwanika/Stardust, Lorraine/Top Cat, and EastNiv.
Amarc Resources Ltd. (TSXV:AHR) is valued at C$23.48 million, with 180.6 million shares outstanding. It has three BC gold & copper properties—the IKE, DUKE, and JOY Projects.
Omineca Mining and Metals Ltd. (TSXV:OMM) is valued at C$23.21 million, with 122.17 million shares outstanding. Its main BC property is the Wingdam Project underneath Lightning Creek in central British Columbia.
Wedgemount Resources (CSE:WDGY) is at the very beginning of what looks to be a tremendous value-add story in the making. It’s a company that’s built upon a strategy of creating shareholder value through optionality built out at the end of a drill bit.
Because of the range of its Eagle and Red projects, Wedgemount’s risk diversification prevents the company from being a one-trick pony—while not having its attention spread too thinly over too many projects at once.
It’s an asset portfolio with true potential for very real market success.
With shares recently listed for trading on the CSE, consider yourself still within the rare window of opportunity to gain an early-mover advantage. Now is the time to start your reviewing this investment before so many others hear about it in the weeks and months ahead.
The current market for these tightly-held shares in Wedgemount Resources (CSE:WDGY) may represent an incredible opportunity for investors seeking ground floor investments in the copper industry, which is destined to be the backbone of an impending multi-trillion dollar clean energy economic overhaul.
Visit Wedgemount’s website to learn more.
Mark Vanry – Chief Executive Officer & Director
Mark Vanry has over 20 years of international capital markets and resource company experience at firms including with Raymond James, Canaccord Genuity and Scotiabank International. During his career Vanry has worked in Europe, Latin America and Canada personally raising over $2 billion for resource companies. He has served on multiple TSX Venture company boards and is currently a Partner at Vanry Capital Partners in Vancouver, BC.
Chris Leslie, Ph.D – Senior Consulting Geologist & QP
Christopher Leslie is an economic geologist with over 13 years of experience in project generation, project evaluation and district-scale targeting in porphyry to epithermal environments. He was most recently Vice President Exploration for Tower Resources Ltd., where he assembled and helped advance a portfolio of exploration projects throughout British Columbia. Prior to joining Tower Resources Ltd., Mr. Leslie was Senior Project Geologist for Richfield Ventures Corp. where he was an integral member of the discovery team at the Blackwater Gold project where he supervised the exploration and initial resource delineation drill programs that lead to the most recent mineral reserve estimate of 8.0 Moz gold. Prior to Richfield, Mr. Leslie was involved in mineral exploration and government geoscience, working on numerous deposit styles both in grassroots exploration and in production. He is currently finishing his Ph.D. at the Centre for Ore Deposit and Earth Sciences (CODES), University of Tasmania. He has an M.Sc. in geological sciences from the University of British Columbia and a B.Sc. in geological sciences from the University of Alberta. Mr. Leslie is a registered Professional Geoscientist with Engineers & Geoscientists British Columbia.
Garry Clark P.Geo – Director
Garry Clark is the Executive Director of the Ontario Prospectors Association (OPA). He has been a Director, Vice President or President of OPA since its formation in the early 1990s. He also currently serves on the Minister of Mines Mining Act Advisory Committee (Ontario) and the Ontario Geological Survey Advisory Board. Clark brings to the company extensive experience in managing large scale exploration and development programs internationally including Asia and North America. In addition to over 30 years of consulting experience, he held geological positions with a number of mining companies and has served as a director of other TSX Venture Exchange listed companies including his current position and NexOptic Technology Corp. and US Cobalt Inc. (USCO.V)
Lesia Burianyk CA, CPA – Chief Financial Officer
Lesia Burianyk, CPA, CA, is a Chartered Professional Accountant with more than 15 years of industry experience, primarily focused on the natural resources sector, and has extensive knowledge of financial reporting practices and requirements for public companies. She gained experience as an audit manager at a Canadian audit firm providing reporting and accounting assurance services to Canadian publicly-traded companies. More recently, she has served as CFO for various TSX-V and CSE listed companies. Burianyk is also currently the CFO of Kuya Silver Corporation, Nevado Resources Corporation, and Tower Resources Ltd.
Ken Thorsen, B.Sc. – Technical Advisor
Ken Thorsen commenced his extensive career in the mining industry in 1970 with Australian Selection Trust in Western Australia. During his three year period there he was responsible for the discovery of the Leinster Mine in 1971 (Ni Cu) and managed the project through to preliminary feasibility study. In 1980 he joined Teck Exploration Ltd as District Manager, for Ontario, Quebec and Manitoba, and was instrumental in the discovery of the Estrades massive sulphide deposit in Quebec. In 1994, he was promoted to senior positions in Teck Corporation and in 1998 became President of Teck Exploration Ltd., in charge of exploration and administration of exploration in 17 countries. Thorsen has served as a Director of a number of junior mining companies, notably Capstone Mining and Newstrike Capital, as well as Oroco Resources. He received a BSc in Geological Engineering and is a retired P. Eng (Ont and B.C).
Richard Barth, B.Comm. – MBA – Director
Richard Barth has compiled over 20 years of international investment banking and valuation experience at firms including Goldman Sachs, HSBC Securities and Houlihan Lokey. During his career he’s worked in Singapore, Canada, the United Kingdom and Southern California and has managed and executed a variety of engagements involving complex business and securities valuations including ESOPs, fairness and solvency opinions, financings, litigation, mergers and acquisitions, tax and financial reporting and strategic alternatives. Barth has experience in a variety of industries including aerospace and defense, business services, energy and mining, entertainment and media, healthcare, manufacturing, real estate, retailing and technology.
Cody Campbell B.A. (Econ) – Director
Cody Campbell has been in the mineral exploration industry for nearly 20 years, as an Entrepreneur and Project Manager, after starting as a drilling assistant in 2004. Progressing through the industry to fill different roles such as driller, foreman & project manager; he formed his own successful drill contracting business in 2008. Campbell has participated and led crews through many different phases of the exploration cycle ranging from single drill, grassroots programs to large, multi-rig mine- site exploration programs. His diverse set of skills have seen him conduct initial program planning & permitting, sourcing of project equipment and personnel along with crew training and providing logistical solutions in complex environments across Canada.
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