“The Right Project at the Right Time”

Recently, the global asset manager Sprott declared that a new “super cycle” is beginning to form in the copper market. This is based on several geopolitical and market trends that are leading to a “strongly bullish” outlook for the copper price. This also aligns with our observations. Therefore, we are once again focusing on a highly promising copper company for our readers today.

A “commodity supercycle” is a period of consistent price increases that lasts more than five years, in some cases even decades.

According to Sprott – and numerous other experts – the global transition to clean, electric energy, as well as protectionist efforts by some countries to secure vital raw materials, will lead to an unprecedented increase in copper demand. Meanwhile, copper supply remains limited; primarily due to years, if not decades, of underinvestment in the sector, increasing protectionist measures, and the ongoing tendency among major copper producers to grow through mergers and acquisitions rather than developing entirely new copper mines.

Copper Price Continues to Show Significant Gains in 2024

At the beginning of the year, this became painfully apparent to more and more market participants, causing the copper price to shift into rally mode and temporarily reach a record high near the $11,000 per ton mark! Even now, as shorter-term perspectives have led to the red metal becoming cheaper again, there’s still an increase of over 10% since the beginning of the year. And this pullback, considered healthy by many experts, could indeed prove to be an opportunity for investors who want to become active in the copper sector and share the long-term positive outlook.

Prismo Metals: On the Hunt for Copper Deposits in the Arizona Hotspot

A company looking to capitalize on the new “copper supercycle” and now has an almost perfect opportunity to do so is the Canadian Prismo Metals (WKN A2QEGD / CSE PRIZ). Led by CEO Alain Lambert, a proven capital markets expert, the company has several irons in the fire, but none is probably as hot right now as the Hot Breccia copper project in the world-class Arizona copper belt!

The project’s location speaks for itself on a regional level, with 23 to 632 million pounds of the industrial metal being produced annually from ten copper mines in the US state of Arizona. This means that the infrastructure – including water and electricity – is excellently developed.

And Hot Breccia is not only located just 4 kilometers from the formerly producing Christmas Mine, but also not too far from one of the world’s largest, higher-grade (more than 1.6 billion t at 1.5% Cu) copper deposits called Resolution, owned by Rio Tinto/BHP and showing similarities to the Christmas deposit.

The Christmas Mine, in fact, produced about 25 million tons of ore containing 363 million pounds of copper, 2.1 million ounces of silver, and 55,026 ounces of gold in the past. And according to Prismo, Resolution represents a kind of model for the mineralization of Hot Breccia, with Hot Breccia exhibiting the same previously productive geological units – just under a cover of volcanic rock.

In the past – mainly between 1972 and 1981 – several drillings were conducted at Hot Breccia, yielding results including 23.45 meters at 0.54% copper at a depth of 640 meters, 18.29 meters at 1.4% copper and 4.65% zinc at 883.92 meters depth, as well as 7.62 meters at 1.73% copper and 0.11% zinc at 702.56 meters depth, and 4.57 meters at 1.4% copper and 0.88% zinc at 716.28 meters depth (Kennecott). Additionally, there were 387.10 meters of variably mineralized skarn with several sections of over 1% copper and a peak value of 3.16% copper.

A mineralized fragment brought up from depth by brecciation within the intrusion also showed a grade of 5.7% copper, 32.8 g/t silver, and 0.24 g/t gold. According to Prismo management, this is a clear indication of a strong mineralized event at depth. This is also indicated by a geophysical survey (ZTEM) that the company conducted last year, which found a large conductive anomaly at depth beneath a dike swarm and the eponymous breccia, as well as copper mineralization at the surface.

An AI-powered company for target generation is analyzing the data, including the ZTEM survey. The AI-supported modeling is expected to show where and at what depth to drill. Understandably, Prismo Metals wants to test these targets as quickly as possible. For this summer, five diamond core drillings with a depth of 1,000 meters each are initially planned, so the drilling program will comprise a total of 5,000 drill meters.

They are ready to go and are now basically just waiting for the drilling permit. And according to the company, it could arrive any day!

Two more highly exciting projects in the portfolio

A few days ago, Prismo Metals completed a financing that brings the company around 1.15 million CAD (gross). According to the accompanying press release, this money is primarily intended for the exploration of the Palos Verdes silver project. Palos Verdes is located in the Sierra Madre Gold and Silver Belt in the Panuco Silver and Gold District of Sinaloa, Mexico. One of the exciting aspects is that the project is surrounded by land owned by the also Canadian Vizsla Silver. And Vizsla is a strategic partner that even holds 9.9% of Prismo!

Palos Verdes is thus located in a significant mining region with several active and former exploration projects such as Panuco, Picachos and Plomosas Trinidad. It is also situated on the highway from Mazatlan to Durango and, according to Prismo, has excellent infrastructure.

So far, with 6,000 meters of drilling in 33 boreholes at Palos Verdes, Prismo has delineated a mineralized area referred to as the Palos Verdes vein, presenting the following strong results, among others:

0.5 meters with 11,520g/t Silver (Ag) and 0.3 meters with 512g/t Ag
0.7 meters with 1,234 g/t Ag and 1.2 meters with 302g/t Ag
0.9 meters 189 g/t Ag
0.3 meters 450.2 g/t Ag
0.35 meters with 112.7 g/t Ag, 0.3 meters with 105.6 g/t Ag and 0.75 meters with 253.4g/t Ag

In addition, detailed samples along structures have identified a possible second blind mineralized offshoot. Studies also show the potential for the mineralization drilled so far to continue downward, offset due to a cross-fault! According to Prismo CEO Robert, Vizsla is closely monitoring the company’s work and providing active support.

Gold also covered

Equally exciting is the third project in Prismo Metals’ portfolio called Los Pavitos. This is a gold project in Sonora, Mexico. Prismo drilled there last year in the very first program, including 6.7 meters with 10.2 g/t gold and 47 g/t silver.

Interestingly, the company has also identified and sampled a new zone with multiple structures – in the previously unexplored northeastern part of the property. Surface samples there yielded up to 1,130 g/t silver and 1.33 g/t gold!

However, the Prismo team will likely focus on Los Pavitos at a later date. For now, Palos Verdes and especially Hot Breccia are on the agenda!

Conclusion: Copper, silver, gold are three metals that many experts expect to see strongly rising prices in the coming months and especially years. While for copper, the megatrends of electrification and artificial intelligence (keyword data centers) are particularly relevant, for silver it’s especially the ever-increasing industrial demand from the solar energy sector. (You can read in detail here on Goldinvest.de why many experts expect gold prices to continue rising.) In any case, Prismo Metals seems excellently positioned to potentially benefit threefold from the emerging commodity supercycle. The next silver drilling at Palos Verdes should follow shortly, and if the permits for Hot Breccia arrive as expected in the near future, it could be – with all the naturally present risks – a hot summer in the truest sense of the word.