NovaRed Mining Uncovers Potential Copper-Gold Bonanza Near Major Producer
NovaRed Mining has identified two large copper-gold anomalies about ten kilometers from Hudbay's producing Copper Mountain Mine. The company, which has a market cap of ~$9 million and no reserve or drill results, is one of the riskiest ways to bet on the copper price.
According to Valentin Saitarli, NovaRed's technology chief, the anomalies are located in close proximity to an already available mine and near the border and the coast. The company has a large land package, about 16,000 hectares, which is described as 'three times the size of Manhattan'.
Saitarli emphasizes that national security depends on copper, citing its use in modern society. He states, 'The electricity that runs through your electrical wires, pretty much everything you touch in the modern world relies on copper.' The company argues that having a deposit like this in North America is unprecedented and could help alleviate supply problems.
The price of copper closed near $6.46 a pound in early August, up about 46% this year. NovaRed says it will witness the world 'wrapped in copper' as demand increases.