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Giant Mining’s big opportunity in copper at Majuba Hill

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Global copper demand is currently forecast to grow incrementally by 2%-3% year-on-year through to 2035, with total consumption expected to reach around 50 million metric tons. This expansion reflects increasing demand from various new sectors including electric vehicles (EVs) and renewable power generation.

The demand increase for copper in EVs alone is expected to be more than 1.7 million tonnes by 2027. This is because each EV currently requires approximately 183 pounds of copper for motors, batteries, and wiring, significantly more than traditional vehicles. The current price of copper, at over $10,000 a tonne, is reflecting that increased demand profile. Current macroeconomic factors may temper short-term demand growth, but the longer-term outlook is expected to remain robust.

Given this, strategic mining and development projects, like that of Canadian firm Giant Mining Corp’s [CSE:BFG] 100%-owned Majuba Hill Property, are key to meeting future copper demand.

Majuba Hill: a district scale mining project

Majuba Hill is a large contiguous land position, located near Reno in Nevada, USA. The property is in north central Pershing County, 70 miles southwest of Winnemucca, and 156 miles northeast of Reno, with access by well-maintained county roads from the Imlay exit on US Interstate 80. Giant Mining’s 15.1 square mile copper, silver and gold project is comprised of extensive mineral and surface rights held by private ownership, patented mining claims, and Federal Lode Mining claims.

The district-scale project shows copper, silver and gold with billion tonnage high-grade potential. Majuba Hill is based in an easily accessible location, within a mining friendly jurisdiction, and has a fully funded drill program.

Heading this exciting exploration project, Giant Mining Corp’s CEO David Greenway has over 20 years of expertise in managing, financing, and developing growth strategies for a range of public companies. With a strong background in the resource sector, he has played a pivotal role in the growth and development of numerous listed companies, ensuring their success and longevity in highly competitive markets.

Small scale historic mining has been concentrated on the Majuba fault zone and veins in subordinate structures. Historic underground mines at Majuba Hill produced copper, tin, and silver from the early 1900s to the 1950s, including 2.8 million pounds of copper (Cu), 184,000 ounces of silver (Ag), and 5,800 ounces of gold (Au).

Subsequent drilling has identified a body of oxide copper-silver-gold mineralization, but until now this body has not been fully defined or properly modelled to produce a mineral resource estimate. A few deeper drill holes, IP geophysical surveys, and surface geochemistry tentatively identified target areas with potential to significantly expand the mineralization. Previous drill results included 7.6 meters at 1.55% Cu, 44.5 meters at 1.41% Cu, 47.4 meters at 1.06% Cu, and 113 meters at 0.45% Cu.

Building on this, Giant Mining Corp’s 2023 NI43-101 Technical Report for Majuba Hill drew preliminary conclusions for a copper exploration target with an estimated range of between 50 million tonnes and 100 million tonnes. It estimated grades in the target range of from 0.15% Cu to 0.30% Cu, as well as the potential for developing a higher-grade zone of between 10 million tonnes and 20 million tonnes of material with grades of between 0.40 % Cu and 0.80% Cu.

First assay results better than anticipated

Recently Giant Mining Corp revealed that its 2024 drilling programme had intersected high-grade copper-silver mineralization at Majuba Hill with, importantly, the first assay results coming in better than anticipated. A further key drill result is anticipated in the near future.

Among the latest assay results, the miner reported that drill hole MHB-30, from surface down to a depth of 218 feet, consisted of 74 feet of 2.6% Cu and 30.1 grams per tonne (g/t) of Ag within 218 feet of 1.35% Cu and 73.4 g/t Ag. The company said the MHB-30 assay results are significantly higher than those expected to occur within the high-grade domain modelled in the NI43-101.

Greenway said the mine remains open both at depth and along strike and, despite over 83,925 feet of drilling and development work, the company is only scratching the surface of just how big this opportunity could be for Giant stakeholders.

The high-grade copper-silver results from hole MHB-30 were hailed as a strong validation of Giant Mining’s exploration model at Majuba Hill. The 2024 drilling was planned to improve the copper grades and provide sufficient confidence in the results, making way for Giant’s NI 43-101 maiden mineral resource estimate of Majuba Hill. Giant Mining said the 2024 holes are targeting near-surface oxide and enrichment zones concentrated along magmatic-hydrothermal breccias that define two prominent corridors.

The Friday Gold Project

Aside from Majuba Hill, Giant Mining Corp also holds an ownership stake in the Friday Gold Project, located at Orogrande, approximately 10 miles south-southwest of Elk City in the Orogrande Mining District of Idaho, USA. Canadian-listed miner Premium Exploration Inc owns a 100% interest in the Friday Gold Project and Giant Mining is a 20% shareholder in Premium Exploration.

The Historical NI 43-101 Mineral Resource Estimate (MRE) for the Friday Gold project, dated February 19, 2013, was based on the results of approximately 30,480 meters (100,000 feet) of drilling, 70 core holes with 17,368 meters (56,981 feet) and 107 reverse circulation (RC) holes with 13,141 meters (43,115 feet) of drilling. Grades as high as 447.81 g/t Au were noted in the report.

The Giant Mining Corp CEO recently told shareholders that the company is eager to provide an updated overview of its 20% shareholding in the Friday Gold Project, as it offers a value that he believes the market has yet to fully reflect in the company’s market cap.

Greenway said: “With 1.237 million ounces of gold indicated and inferred, and the potential for further expansion by incorporating 14 already drilled holes with outstanding results, the project remains open in all directions, with several new targets. We believe the time is right to update the NI 43-101 and unlock the full potential of the Friday Gold Deposit for all stakeholders.”

With gold prices at record highs the potential from the Friday Gold Project, together with the exciting copper exploration results from Majuba Hill look like making Giant Mining Corp an exciting prospect for investors.

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Hargreaves Lansdown IG Interactive Brokers Interactive Investor Charles Stanley
IG Interactive Brokers Charles Stanley

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