Nexvu Capital

Nexvu on Economics, Politics and the Markets

  • Enter your email address to follow this blog and receive notifications of new posts by email.

    Join 1,022 other followers

  • Nexvu on Twitter

  • Previous Posts

Equity Update: Lumina Copper Corp. (LCC.TSXV)

Posted by nexvucapital on March 27, 2013

We wanted to take a moment to demonstrate why one of our favourite places to look for opportunity is in the copper porphyry exploration space – simple premise as copper porphyries can be very very big so discovering and developing one can be very very rewarding. It is our humble opinion, that the Junior Copper Exploration and Development sector is basing and the sector will be lead higher by the big dogs on the block. As an example, we highlight Lumina Copper Corp (LCC.TSXV) which owns 100% of the giant Taca Taca  copper/gold/molybdenum porphyry project in Argentina (great asset with a bad address?).

The weekly chart for Lumina demonstrates a couple of things:

  • finding and developing big copper deposits can be rewarding (2010 lows to 2012 highs = +1500% rise)
  • current share price is roughly half of the high
  • in early 2013 the share price broke out of a down-trend and seems to be re-testing long-term support (the Cyprus Circus)
  • Stoch-RSI recently broke to the upside
  • Money Flows have been trending positive since the summer of 2012

LCC.TSXV March 26 2013

Taca Taca, is located in the Puna region of north western Argentina and lies 90 km east of the world’s largest copper mine, Escondida – big copper porphyry deposits are rarely loners and tend to be found in districts. The following Table (unaltered from the Company’s website) contains detail on the current Mineral Resource Estimate (~21 Billion pounds of copper plus some gravy and the copper price at the time of writing is ~$3.45 per pound):

INDICATED SULPHIDE MINERAL RESOURCE ESTIMATE (November 2012)

CuEq(1)
Cut-off
Size
Grade
Contained Metal
Tonnes Millions
CuEq(1)
%
Cu
%
Au
g/t
Mo
%
Cu lbs Billions
Au oz Millions
Mo lbs
Millions
0.2
2,817
0.49
0.38
0.07
0.011
23.84
6.32
707.9
0.3
2,165
0.57
0.44
0.08
0.013
21.15
5.56
615.8
0.4
1,545
0.65
0.51
0.09
0.015
17.51
4.61
493.8
0.5
997
0.77
0.61
0.11
0.016
13.34
3.54
360.5
0.6
660
0.88
0.70
0.13
0.018
10.23
2.68
259.0
0.7
454
0.99
0.80
0.14
0.019
7.99
2.02
187.0

(1) Copper equivalent calculated using US$2.00/lb Cu, US$800/oz Au and US$12.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6). 

INFERRED SULPHIDE MINERAL RESOURCE ESTIMATE

CuEq(1)
Cut-off
Size
Grade
Contained Metal
Tonnes Millions
CuEq(1)
%
Cu
%
Au
g/t
Mo
%
Cu lbs Billions
Au oz Millions
Mo lbs
Millions
0.2
1,396
0.40
0.31
0.05
0.010
9.44
2.08
310.7
0.3
921
0.47
0.37
0.05
0.012
7.55
1.57
235.4
0.4
571
0.55
0.44
0.06
0.013
5.50
1.10
162.4
0.5
302
0.64
0.52
0.07
0.014
3.43
0.65
95.8
0.6
162
0.73
0.59
0.07
0.015
2.11
0.36
54.9
0.7
76
0.81
0.68
0.07
0.016
1.14
0.17
26.4

(1) Copper equivalent calculated using US$2.00/lb Cu, US$800/oz Au and US$12.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6). 

INDICATED OXIDE GOLD MINERAL RESOURCE ESTIMATE

Au
Cut-off
Tonnes
Millions
Au
g/t
Au oz
Millions
0.1
799
0.18
4.66
0.15
483
0.22
3.40
0.2
243
0.27
2.07
0.25
126
0.31
1.23

INFERRED OXIDE GOLD MINERAL RESOURCE ESTIMATE

Au
Cut-off
Tonnes
Millions
Au
g/t
Au oz
Millions
0.1
213
0.14
0.97
0.15
66
0.18
0.39
0.2
17
0.23
0.13
0.25
3
0.30
0.03

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: