- Demand for copper is rising; deficit forecast in coming years
- Copper deficit heightens need for projects that can produce the high-demand metal
- Feasibility study concluded that Josemaria’s average annual metal production of 136,000 tonnes of copper (“Cu”), 231,000 ounces of gold (“AU”), 1,164, 000 ounces of silver (“Ag”)
- Strategic plan demonstrates commercial production at project could be achieved by early 2026
The looming copper deficit will likely worsen in the coming years, according to an S&P Global Market Intelligence report (https://ibn.fm/OSonS). That news is capturing the attention of companies such as Josemaria Resources (TSX: JOSE) (OTCQB: JOSMF), a Canadian natural resources company focused on the development of its wholly owned Josemaria copper-gold mining project.
“A deficit in the copper market is set to deepen over the next several years as supply of the widely used metal struggles to keep up with strong demand from the power and construction sectors, compounded by the proliferation of electric vehicles,” reported the S&P article, which was titled “Copper supply faces struggle to keep up with growing demand.” The article noted that refined output is expected to increase by 4.3% year on year to 24.7 million tonnes in 2021 after decreasing by 2.1% to 23.6 Mt in 2020—primarily as a result of disruptions caused by the coronavirus pandemic.
Highly attuned to market demands, Josemaria Resources is working to develop its flagship property — the Josemaria Copper-Gold Project — as quickly as possible. The project is located in the San Juan Province of Argentina, a well-known mining hub supporting a wide variety of mining and service companies.
Josemaria just recently announced the results of an independent feasibility study evaluating the property (https://ibn.fm/6BmVS). In short, the study concluded that the property is a “robust, rapid pay-back, low-risk project, with an open-pit operation feeding a conventional process plant at 152,000 tonnes per day over a 19 year mine life, yielding average annual metal production of 136,000 tonnes of copper (‘Cu’), 231,000 ounces of gold (‘Au’) and 1,164,000 ounces of silver (‘Ag’).”
“We are extremely pleased with the results of the Feasibility Study at Josemaria, which indicates that this is one of the very few readily developable copper-gold projects in the world today,” said Josemaria Resources president and CEO Adam Lundin. “This study has materially de-risked the project and forecasts an attractive economic outcome, which is comparable with other large-scale copper/gold projects already being developed or in production today. We believe that Josemaria is perfectly positioned to commence production by mid-decade, meeting rising copper demand from a rapidly electrifying global economy. I believe the study results will allow us to unlock various financing opportunities as we move toward construction.”
Josemaria Resources has already begun a bridging phase of engineering, which will be followed by the initiation of basic engineering planned for early 2021. The company’s clear and achievable project execution plan and its strong industry position demonstrate commercial production at the project could be achieved by early 2026, ideally timed to meet the growing copper deficit (https://ibn.fm/QxuPj).
Josemaria Resources is a Canadian natural resources company based in Vancouver, British Columbia. The company is part of the Lundin Group of companies, a conglomerate of 13 business entities operating in the mining, oil and gas and renewables sectors around the world.
For more information, visit the company’s website at www.JosemariaResources.com.
NOTE TO INVESTORS: The latest news and updates relating to JOSMF are available in the company’s newsroom at https://ibn.fm/JOSMF
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