Libero Copper and Gold Corp. (LBC:TSX.V; LBCMF:OTCQB) has discovered a soil geochemical anomaly that significantly expands the footprint and potential size of the deposit at its Mocoa project in Putumayo, Colombia.
Fieldwork at the site has identified a 2-kilometer-long by 1,000-meter-wide multi-element anomaly coincidental with the porphyry copper-molybdenum deposit at the site. It extends more than 500 meters north and south of the main copper-molybdenum soil anomaly.
“Libero is currently advancing systematic exploration on the Mocoa project and is continuing its soil sampling program, prospecting and mapping across the entire district scale property,” Red Cloud Securities wrote Nov. 16 in its Rocks Daily newsletter. “We view this announcement positively, as we believe the geochemical data suggests that Mocoa could be larger than currently defined and it further supports the view that Mocoa may be host to a clustered porphyry system.”
Red Cloud analyst Taylor Combaluzier has rated the stock Buy with a target of CA$1.40.
Additional discoveries and resource expansion at Mocoa are “two factors we believe are key to a potential rerating of Libero’s stock price,” the newsletter said.
Red Cloud analyst Taylor Combaluzier has rated the stock Buy with a target of CA$1.40.
The Catalyst
Mocoa, discovered in 1973, is the largest copper resource in Colombia, according to the company.
Results from the first diamond drill hole at the project returned 0.89% copper equivalent [CuEq] (0.62% copper and 0.083% molybdenum) over 557 meters, and the entire hole graded 0.58% CuEq (0.42% Cu and 0.047% Mo) over 1,229 meters.
Libero is also drilling 5,000 meters at its Big Red property in British Columbia’s Golden Triangle and working with authorities on permits to begin drilling at its Esperanza project in Argentina.
At Mocoa, the soil geochemical anomaly extends more than 500 meters north and south of the area previously drill tested, and elevated copper was in soil samples for an additional 2 kilometers south of the main copper-molybdenum anomaly.
Libero previously identified nine new porphyry targets near the existing deposit at the site. The ongoing field program is now collecting soil samples from these additional targets.
“These initial soil geochemical results support the potential to significantly expand the resource beyond the area currently drilled at the Mocoa deposit,” Libero Chief Executive Officer Ian Harris said.
New Order in Colombia
Mining companies had been worried about the summer election of Gustavo Petro, Colombia’s first leftist president, who promised to halt new gas and oil development. But Petro has proven to be more supportive of green metals like copper, as he wants the country to be at the forefront of the world’s energy transition.
“In the areas where we can explore, let’s search for minerals for clean energy. Let’s search for minerals to fertilize the earth,” Petro told the Colombia Mining Association recently.
Juan Fernandez, advisor for business affairs to the president, also highlighted the importance of the Putumayo region for the energy transition during a recent visit, saying the president supports responsible mining for “all those minerals that are essential for the energy transition. With no doubt, it's an important topic for the department.”
This is expected to cause demand for copper to rise 16% and outstrip supply by more than 6 million tonnes by the end of the decade.
“We believe Petro would have to acknowledge copper’s fundamental role in achieving this goal, which should benefit Libero Copper,” Combaluzier of Red Cloud Securities wrote.
EVs, as they are now, would not exist without the red metal; they use three times the amount of copper as cars with internal combustion engines.
One out of five vehicles sold worldwide could be an EV in less than two years, and Ford and General Motors have set a goal of achieving 40–50% of their sales from EVs in the U.S. by 2030.
The transition to clean energy is expected to bring 10.3 million new jobs globally by 2030, the World Economic Forum noted in March. That increase will offset the 2.7 million jobs expected to be cut in fossil fuels.
This is expected to cause demand for copper to rise 16% and outstrip supply by more than 6 million tonnes by the end of the decade, according to independent energy research company Rystad Energy.
The transition to clean energy is expected to bring 10.3 million new jobs globally by 2030, the World Economic Forum noted in March. That increase will offset the 2.7 million jobs expected to be cut in fossil fuels.
“The energy demand moving forward is so big, we cannot continue down this route,” Harris has said. “So, it’s a done deal. It’s something that’s going to be happening in some form.”
Ownership, Coverage, and Share Structure
Top shareholders of Libero include Anglo Asian Mining Plc. With 17.08% or 12.6 million shares, Ian Slater with 4% or 2.95 million shares, Sprott Asset Management LP with 1.36% or 1 million shares, Palos Management Inc. with 0.68% or 0.5 million shares, and Robert Pease with 0.63% or 0.47 million shares, according to Reuters.
The company is covered by Taylor Combaluzier of Red Cloud Securities and newsletter writers of Clivemaund.com, of 321gold.com,
Its market cap is CA$12.88 million, and it has 73.8 million shares outstanding, 57 million of them floating. It trades in a 52-week range of CA$1.05 and CA$0.1475.
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