LBC:CC - Libero Shares its Grand Vision for Copper
Ian Harris , president and CEO of Libero Copper , a Canadian-based exploration company, knows a sweet spot when he sees one. “I’ve been a mining engineer in the industry for 25 years and it's still hard for me to get my head around what’s going to happen in the copper space. If we just consider solar, wind power and electric vehicles, the expected demand for copper in 2030 will be 5.4 million tons. This will require us to create an equivalent of the ten largest copper mines in the world just to meet this new demand - and we only have eight years to do it. So, I think anyone with a copper asset will be extremely well positioned.”
That is exactly the position Libero expects to find itself in. The company has three promising assets in the Americas. Mocoa, located in Colombia, already has an inferred resource totalling two million tons of copper, and there is evidence that the property is open in all directions.
A second asset, Big Red, which lies within British Columbia’s Golden Triangle, is a discovery with high-grade copper mineralization that starts at surface, and a significant footprint totalling 26,000 hectares.
Esperanza is another potential prize situated in Argentina in a region that is populated by other copper giants such as Filo Mining Corp. (TSX: FIL) and Hot Chili Limited (TSXV: HCH) . Libero’s earliest stage project has some very attractive grades and geology that makes it a favourite among their geologists. The property was last explored by previous owners in 2018 when it produced an impressive drill result with mineralization that started at surface. The first 200 meters of the hole registered high grades of more than 1% equivalent copper.
All three Libero assets share two common characteristics, size and scale, which reflect the goals of the company. Its ideal project is one that would have a potential resource of over 200 million tons of high-grade, near-surface copper. As Harris explains, size and scale has been a recipe for success for all major copper players. “Size matters. First, the demand expected for copper is so big that larger companies don’t have the time to build multiple mines. That takes a lot of effort. Building large-scale mines also gives you more bang for the buck in terms of operating costs. That's when you get to the biggest trucks, the biggest mills, and the biggest equipment.”
At Mocoa, Libero is already checking those boxes. It contains over 600 million (inferred) tons of resource. With an anticipated mine life of 20 years, it could process 90,000 tons of high-grade copper per day. Big Red’s footprint indicates a similar potential. And the company strongly believes that Esperanza has the chance to do the same.
But size and scale are only part of Libero’s grand vision. In Colombia, it’s working on securing partners to develop a prototype supply chain with the goal of using recycled copper to make motors for electric scooters. Currently, these motors are imported into the country.
According to Harris, “That kind of vision really sets Libero apart from many other companies. We understand the importance of copper from a geopolitical perspective and understand there’s an opportunity to produce more than just copper concentrate. Tesla is doing something similar with its Gigafactory, that produces EV batteries in the United States. They're bringing it home because they understand that controlling the production chain is critical.”
It's a strategy that aligns closely with the efforts of Colombia’s president Gustavo Petro, who strongly supports the green energy transition as well as the manufacturing of products locally. It’s also an initiative that could have a significant impact on local communities.
2023 will be an important year on the road to Libero achieving its overall goals. The company will be evaluating 2022 drilling from Big Red to help determine future exploration plans at that project. Substantial drill programs are also planned for Esperanza and Mocoa to expand those projects.
All this promise has Libero riding high. Along with their trio of highly attractive properties, they have an ambitious grand vision and strong market tailwinds that will likely aid to their ascent. “The thing that excites me the most,” Harris said, “is the prospect of the market recognizing the quality of the assets we have. Every single time I open a Forbes article or a Bloomberg article talking about the importance of copper, I realize that soon we’ll have their attention. We know that we’ll be ahead of the eventual copper bubble. Right now, the company has a valuation that is underpinned by two million tons of copper. So just based on that, we’re one of the most undervalued companies out there. With three major assets, we’re the best positioned company to take advantage of what's happening in the copper space. Without a doubt, hands down.”
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