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  • Newly listed Canadian explorer with focus on copper
  • Two properties on the books with plans to add additional assets
  • Strategic focus on under-explored / undervalued sites in Canada’s prime BC copper belt
  • Highly experienced technical team with deep understanding of BC copper – gold porphyries
  • Increasing investor focus on copper explorers across the board as copper price ticks up
  • Tightly held – 85% of the shares staying with founding group post IPO

Wedgemount Resources (CSE:WDGY) is a newly listed Canadian copper explorer with a focus on some prime copper/gold sites in British Columbia. Regular readers will know we are already enthusiasts for copper. Wedgemount caught our eye ahead of IPO because of this focus, and because of anticipated demand for copper and copper miners.

Wedgemount’s mission is to assemble high quality exploration projects of which there are two that it already has ready to explore. A key plank in its strategy is the acquisition of underexplored and undervalued properties, requiring a team that has a lot of expertise in the Canadian mining space reinforced with specialist corporate finance know-how.

The focus is very much on copper prospects, although it looks like there will be scope for other metals on site, especially gold.

Podcast: Mark Vanry, CEO of Wedgemount Resources

Initial two exploration projects identified for 2021

Currently there are two projects under the Wedgemount Resources umbrella. Both are located in the rich copper corridor in Canada’s British Columbia.

The Red copper-gold project covers over 20,000 hectares in north-central British Columbia, just 40km south of the past producing Kemess mine (over its life Kemess produced approximately 3 million ounces of gold and 800 million pounds of copper). Wedgemount has an option to earn up to 100% net a 2% NSR on Red over five years.

The Red project was previously explored by Cominco, BP Minerals and most recently by Gitennes in 2004, comprising soil and rock geochemistry, IP surveys and limited shallow drilling. There is evidence of a large copper in soil anomaly that is coincident with an open-ended chargeability anomaly. This is an underexplored system that bears further investigation using modern porphyry exploration techniques including deep penetrating IP and deeper drilling.

Wedgemount has confirmed that exploration will begin this summer on the Red site and will include mapping, sampling, geochemistry and IP geophysics. The goal of the 2021 program is to define high priority prospects for follow up drilling and exploration.

The second project in the company’s portfolio is the 2,530 hectare road-accessible, gold-copper Eagle property.  Eagle is located further south in central BC, with all necessary services within 90 minutes drive from the town of Fort St. James. Active logging and infrastructure development in the immediate area allows for excellent year-round access to the property and also helps to significantly reduce exploration costs.

Eagle has proximity to some big copper projects going for it with the Mount Milligan mine belonging to Centerra Gold 50km to the east and the Northwest Copper’s Kwanika copper/gold porphyry development project 60km to the north.

The Eagle site has been surveyed since the 1960s on a number of occasions. Wedgemount is going to be focusing exploration on a corridor of 0.8 by 3km which has demonstrated copper/gold mineralisation in outcrop and historic drill core as well as widespread copper in soil.

Previous drilling activity on the site was carried out by Noranda in 1991. Eight holes were drilled in two zones with 0.87% and 0.82% copper, coupled with a reading of 0.32 g/t and 0.47 g/t gold.

By way of comparison, in September 2020, Kodiak Copper 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.

The planned Wedgemount exploration of the site will include new exploration techniques as well as 1500m deep diamond drilling.

Wedgemount is well financed and has the cash to underwrite its first year of exploration without having to go to the market.  Most of the shares (approx. 85%) are held among founders and partners, so the supply of stock is going to be limited from the off.

The Wedgemout Resources team

We should say something of the team behind Wedgemount Resources, as this is important to the success of this explorer. The CEO is Mark Vanry, who has personally raised over US$2bn for natural resources ventures. Geological expertise comes from Garry Clark, who has held geological positions with a number of mining companies, has consulted in the mining space for over 30 years and is the Executive Director of the Ontario Prospectors Association. He has massive experience in the management of large scale exploration and development programs.

Further expertise comes from technical advisor Ken Thorsen, former president of Teck Exploration as well as a director of several successful junior mining companies.

Our take on Wedgemount Resources

Regular readers will know that we are bullish on the copper price and copper explorers are always going to pique our interest. We anticipate a huge global and strategic building program required to facilitate a shift to clean energy sources as the required infrastructure is put in. This is going to need copper, and lots of it.

British Columbia remains one of the prime copper producing areas on the planet and is not weighed down with the political problems of other areas, like the Congo.

Is it too soon to talk about a copper rush in Canada? We think not. Results from other explorers in the region have been enough to send share prices up by several multiples. And larger miners are interested in acquiring stakes in the smaller explorers. Explorers with drill results of less than 0.4% copper equivalent are already being offered bought deals, major copper miners have analysts on the ground paying close attention to future prospects. In other words there is an unprecedented level of focus on exploration for new copper sources in Canada. Timing for Wedgemount Resources could not be better.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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