{kanada_flagge}Max Resource Corp. (TSX.V: MXR; Frankfurt: M1D2) is reporting one spectacular new copper discovery after another from its CESAR copper project in northeastern Colombia, and one is beginning to wonder what part of the story the market does not understand. That is because the stock is still bobbing along at CAD 0.23, below the last financing price of CAD 0.24.
Max interprets the stratabound copper-silver mineralization of the 200-kilometer-long Cesar Basin as analogous to the copper shale basin in Poland and confirms this concept again and again. The sheer scale of the discoveries is outstanding: Max’s on-site team has now identified five potential deposits along an 80 kilometer zone (CESAR North). Geologists suspect that these deposits belong to the same continuous trend of copper mineralization. 80 kilometers. And we are talking about high grade copper with peak values of >5.0 percent copper near surface!
It is true that the results are still in the early stages of exploration. The exploration method of choice is not drilling, but sampling of near-surface rock chip channels as the mineralization is sub-horizontal. But these results are quite something: In its latest announcement, Max Resources reports its new discovery at URU (see Figure 1). There, fifteen rock chip channels with a width of 10.0 meters along a strike of 4 kilometers were investigated. Values were greater than 1.0% copper, with values of 5.7% copper and 14 g/t silver being notable.
Figure 1: The latest discovery at URU (red square) joins previous copper discoveries in an 80 kilometer section. All copper discoveries are in line: URU, CONEJO, SP, AMN and AMS.
Highlights of the assay results from the URU zone include:
– 4.3% copper and 8 g/t silver over a width of 10.0 meters (876065)
– 3.6% copper and 12 g/t silver over a width of 10.0 metres (876687)
– 3.0% copper and 6 g/t silver over a width of 10.0 meters (876685)
– 2.2% copper and 5 g/t silver over a width of 10.0 meters (876064)
– 2.0% copper and 1 g/t silver over a width of 10.0 meters (876097)
– 1.9% copper and 1 g/t silver over a width of 10.0 meters (876072)
– 1.9% copper and 9 g/t silver over a width of 10.0 meters (876067)
The newly discovered URU zone now extends 4 kilometers by 1 kilometer, is open in all directions and lies along the southern portion of the 80-kilometer long CESAR North copper-silver belt. Geologically significant, the URU mineralization is located within magmatic host rocks that cut through the sedimentary mineralization. Thus, one does not appear to be dealing with a classic copper shale.
Figure 2. URU copper-silver mineralized outcrops.
Figure 3. This schematic diagram of URU copper-silver mineralization is intended to explain the origin of the copper deposits (Figure 1, A – A’).
As recently as March 2021, Max Resource announced the discovery of CONEJO, which also falls within the 80-kilometer CESAR North corridor. The discovery covers an area of 3.2 km by 1.6 km and is open in all directions. CONEJO returned values above 5.0% copper from 23 rock slabs varying from 5.0 meters by 5.0 meters to 1.0 meter by 1.0 meter; 66 rock slab samples returned values above 1.0% copper (March 24, 2021 NR). Highlights include grades above 9.0% copper and 50 g/t silver:
– 12.5% copper + 84 g/t silver over 5.0 meters by 5.0 meters
– 10.5% copper + 50 g/t silver over 3.0 meters by 2.0 meters
– 10.4% copper + 95 g/t silver over 5.0 meters by 5.0 meters
– 10.2% copper + 62 g/t silver over 5.0 meters by 5.0 meters
– 10.0% copper + 80 g/t silver over 5.0 meters by 5.0 meters
– 8.7% copper + 89 g/t silver over 5.0 meters by 5.0 meters
– 8.4% copper + 60 g/t silver over 5.0 meters by 5.0 meters
– 7.9% copper + 21 g/t silver over 5.0 meters by 5.0 meters
– 7.7% copper + 84 g/t silver over 5.0 meters by 5.0 meters
– 7.4% copper + 47 g/t silver over 5.0 meters by 5.0 meters
CONCLUSION: Max Resource’s discoveries suggest that the 200-kilometer long CESAR basin in northeastern Colombia has many of the characteristics of a world class copper destination. Unlike most copper explorers these days, the focus of Max is not on low-grade porphyry deposits at depth, but predominantly sedimentary deposits that outcrop near surface. The copper grades of this type of deposit are significantly higher than those of porphyry deposits due to their natural pre-concentration. Instead of extending to depth, these deposits extend laterally along their depositional layers. Finally, they are former marine sediments. The recent discovery in URU now seems to prove that secondary copper mineralization of volcanic origin is present in addition to these copper shales. It will be interesting to see what else is to come. To be sure, Max is still far from a resource estimate, which perhaps explains the lack of interest in the market. But it is also clear that discoveries of this magnitude are not common. To put this in perspective: It’s about as if the entire European copper shale basin has just been rediscovered. We are keeping our fingers crossed for Max Resources as it continues it’s work. There could be something really big here. The big mining companies that are already in the country are likely to follow Max Resource’s work very closely.
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