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TICKERS: BWCG

Resource at Mining Project in Alaska Now 4 Mlb Cu Eq
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An updated mineral resource estimate for this polymetallic deposit is "much more robust" than the previous one, noted a Red Cloud Securities report.

Blackwolf Copper & Gold Ltd. (BWCG:TSX.V) announced an updated resource estimate that establishes its flagship polymetallic Niblack project as a roughly 4,000,000 pound (4 Mlb) copper equivalent deposit," reported Red Cloud Securities analyst Taylor Combaluzier in a Feb. 17 research note.

"We believe it is a much more robust estimate than the previous 2011 estimate, having incorporated additional drilling (from 2012 and 2021), us[ed] refined estimation methods and employ[ed] current cutoff," Combaluzier wrote.

The analyst reported that the southeast Alaskan project's Indicated and Inferred resources now, post update, total 6,100,000 tons (6.1 Mt) of 0.94% copper, 1.72 % zinc, 1.82 grams per ton (1.82 g/t) gold and 29 g/t silver.

This amounts to 125 Mlb of copper, 229 Mlb of zinc, 356,000 ounces (356 Koz) of gold, and 5.587 Koz of silver, or 397 Mlb of copper equivalent. This was calculated using these prices: US$3.50 per pound for copper, US$1.10 per pound for zinc, US$1,650 per ounce for gold, and US$20 per ounce for silver.

Of the updated resource, the Lookout zone accounts for 88%, and the Trio zone, 12%.

Changes to 2011 Resource

The update to the Niblack resource estimate included converting about 213,000 tons, or 4%, of Inferred resources to Indicated resources, for a total of about 5.9 Mt. Also, the grade of contained copper in the Indicated category increased by 2%, for 118.1 Mlb copper. Overall grades of the new resource estimate are higher than previously.

However, Combaluzier noted, the resource's overall tons decreased, by 33%, mostly due to a higher cutoff being used, that of US$100 per ton versus the previous US$50 per ton. The greater cutoff excluded lower-grade ore from the block model.

Contained copper equivalent tons also decreased, to 397 Mlb from 544 Mlb.

"We view the refreshed mineral resource estimate at Niblack slightly positively despite the significant decrease in Inferred tons and contained copper equivalent," commented Combaluzier.

Significant Exploration Potential

Combaluzier pointed out the Niblack resource has room to grow given the project's "significant upside beyond the updated mineral resource estimate area." For one, Lookout and Trio remain open along strike and updip and downdip and thus offer expansion potential.

Two, there are four other known volcanogenic massive sulfide targets there, Mammoth, Lindsy, Dama, and the historical Niblack mine site, that could add ounces. Blackwolf intends to prioritize the latter two in future drill programs.

What is Next?

Red Cloud does not have a rating or target price on Blackwolf, which is currently trading at about CA$0.25 per share. The stock could be rerated, noted Combaluzier, on the release of positive exploration results from Niblack or its Hyder properties.

First, though, the company will declare its exploration plan for each project, and these near-term announcements could move up the stock.


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Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Blackwolf Copper and Gold Ltd. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. 

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Disclosures For Red Cloud Securities, Blackwolf Copper and Gold Ltd., February 17, 2023

Analyst Certification: Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Disclosures: Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

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