T2 Metals Corp. (TSXV: TWO) (OTCQB: AGLAF) (WKN: A2DR6E) acquired the Copper Eagle copper-gold project in Douglas County, Nevada, through staking.
The company said on Thursday that it identified the project during an extensive project generation program targeting deposits within mining supportive jurisdictions of North America.
The Copper Eagle project is located 21 km southeast of Carson City, within the mineral rich Walker Lane Mineral Belt. T2 Metals secured ownership through six Bureau of Land Management (BLM) lode mining claims.
Several large historic mines and development projects, such as the Anaconda Mine in Yerington, Hudbay Minerals’ Mason Project, and Nevada Copper Inc’s Pumpkin Hollow Mine, are situated within 50 km of Copper Eagle.
“The newly staked Copper Eagle project provides an important expansion of our project base in the Western US. We have been progressively and patiently assessing projects, and Copper Eagle stands out as a significant copper prospect in a growing copper producing region,” Mark Saxon, president and CEO of T2 Metals, said.
The project is in proximity to world-class porphyry and skarn-type projects. It’s also accessible year round by its proximity to Nevada Highway 395 and simple power and railway access.
T2 Metals acquired the original exploration company records from the Nevada Bureau of Mines and Geology. These records indicate that trenching at the project revealed sulfide and oxide copper mineralization spanning an area of at least 500 meters by 200 meters.
Read more: First Quantum fast-tracks Zambia copper project after Panama mine shutdown
Read more: Union strike underway at MMG’s major Peruvian copper mine
Global forecast for copper looks bleak
T2 Metals’ acquisition couldn’t come at a more perfect time as the world’s copper forecast has taken a bleak downturn.
The next couple of years were anticipated to bring plenty of opportunities, driven by the launch of several significant new projects worldwide. Most of the industry expected a comfortable surplus in the near term before the market tightens again later this decade.
This tightening is expected due to the increasing demand for electric vehicles and renewable energy infrastructure, which is forecasted to intersect with a shortage of new mines.
The mining industry has underscored the vulnerability of its supply chain. This vulnerability stems from various factors, including political and social opposition, the challenges in developing new operations, and the day-to-day difficulties of extracting rocks from deep beneath the earth.
In the past two weeks, fierce public protests led to the closure order of one of the world’s largest copper mines, while a series of operational setbacks compelled one of the leading mining companies to significantly reduce its production forecasts.
According to analysts, the abrupt removal of approximately 600,000 tons of anticipated supply could shift the market from a projected surplus to a state of balance, or possibly even a deficit.
Copper is an essential metal crucial for the global economy’s decarbonization and the situation highlights the pivotal role that mining companies will play in facilitating the transition to green energy.
Good news today from @t2metals with staking of a new #copper project in #Nevada. Some solid past sampling results, and no evidence of drilling. Strong #porphyry target. #EV #batterymetals https://t.co/J06ioRG3BJ
— Mark Saxon (@mark_sax) December 14, 2023
Read more: First Quantum starts international arbitration as Panama’s president orders mine shutdown
Read more: Panama Supreme Court rules First Quantum copper mine contract unconstitutional
Market forced to absorb shortage shocks
Last week, the government of Panama issued a formal order to First Quantum Minerals Ltd. (TSX: FM) to stop operations at its USD$10 billion copper mine.
This decision came after weeks of protests and political disputes, culminating in the country’s Supreme Court invalidating the law supporting the mining license. The massive Cobre Panama mine has the capacity to produce approximately 400,000 tons of the metal annually.
As the market absorbed the news of the closure of one of the largest mines, Anglo American Plc (LON: AAL) added to the shock with its own production announcement on Friday.
The company revealed plans to reduce production from its flagship copper business in South America. While challenges at its platinum and iron ore mines in South Africa were widely reported, the unexpected production cuts took investors by surprise, causing a sharp 19 per cent drop in the company’s shares.
Anglo American has lowered its production target for the next year by approximately 200,000 tons. This is the functional equivalent of eliminating a large mine from the global supply. The company anticipates production to decrease even further by 2025.
The expectation of a more relaxed market has exerted downward pressure on prices throughout most of this year. As a result, copper has moved laterally. In early October, the International Copper Study Group made a projection anticipating a surplus of 467,000 tons next year.
.
