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Junior Mining Explorer To Complete PEA Update in H2/23
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Management expects the resource in the new report to be 30-50% larger than the one reflected in the prior version, noted a Zacks Small-Cap Research report.

World Copper Ltd. (WCU:TSX.V;WCUFF:OTCQX) is updating the preliminary economic assessment (PEA) on its Zonia copper oxide project in Arizona, reported Zacks Small-Cap Research analyst Steven Ralston in a July 21 research note. Completion of the report, expected in H2/23, should catalyze the company's stock.

392% Implied Return

Accounting for World Copper's other two projects, in Chile, Escalones and Cristal Copper, along with Zonia, Ralston noted Zacks has a CA$0.59 per share target price on the junior mining company. Its current share price, in comparison, is CA$0.12 per share.

The difference between these two prices implies a compelling potential return for investors of 392%.

Changes to Previous Assumptions

The most recent PEA on Zonia was completed in April 2018, relayed Ralston. Only privately owned land was encompassed in it, and the copper price used was US$3 per pound.

The new PEA will differ in two significant ways, Ralston wrote. One, it will include estimated resources on all land in the area, such as properties owned by the U.S. Bureau of Land Management and by the state of Arizona. This will increase the resource size.

"Management expects to expand the estimated resource by 30% to 50%," Ralston wrote.

Two, World Copper will use an updated copper price, which is about US$1 per pound higher than in 2018. Copper is currently trading at about US$4 per pound.

Further drilling is not needed or being done to complete this PEA.

"Until the investment environment improves, exploratory activities are being limited to desktop studies for the remainder of 2023," Ralston wrote.

What To Watch For

In addition to the completion of the updated Zonia PEA, another stock-moving event on track for World Copper in H2/23 is the pursuit of permitting for Escalones.

Next year, plans call for doing a prefeasibility study of the Zonia Main deposit and conducting metallurgical testing at Escalones, and both are potential catalysts.

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Important Disclosures:

  1. World Copper Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
  2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  3. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Zacks Small-Cap Research, World Copper Ltd., July 21, 2023

The following disclosures relate to relationships between Zacks Small-Cap Research (“Zacks SCR”), a division of Zacks Investment Research (“ZIR”), and the issuers covered by the Zacks SCR Analysts in the Small-Cap Universe. ANALYST DISCLOSURES I, Steven Ralston, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.

INVESTMENT BANKING AND FEES FOR SERVICES Zacks SCR does not provide investment banking services nor has it received compensation for investment banking services from the issuers of the securities covered in this report or article. Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm engaged by the issuer for providing non-investment banking services to this issuer and expects to receive additional compensation for such noninvestment banking services provided to this issuer. The non-investment banking services provided to the issuer includes the preparation of this report, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees for conferences sponsored or co-sponsored by Zacks SCR. The fees for these services vary on a per-client basis and are subject to the number and types of services contracted. Fees typically range between ten thousand and fifty thousand dollars per annum. Details of fees paid by this issuer are available upon request.

POLICY DISCLOSURES This report provides an objective valuation of the issuer today and expected valuations of the issuer at various future dates based on applying standard investment valuation methodologies to the revenue and EPS forecasts made by the SCR Analyst of the issuer’s business. SCR Analysts are restricted from holding or trading securities in the issuers that they cover. ZIR and Zacks SCR do not make a market in any security followed by SCR nor do they act as dealers in these securities. Each Zacks SCR Analyst has full discretion over the valuation of the issuer included in this report based on his or her own due diligence. SCR Analysts are paid based on the number of companies they cover.

SCR Analyst compensation is not, was not, nor will be, directly or indirectly, related to the specific valuations or views expressed in any report or article.

ADDITIONAL INFORMATION Additional information is available upon request. Zacks SCR reports and articles are based on data obtained from sources that it believes to be reliable, but are not guaranteed to be accurate nor do they purport to be complete. Because of individual financial or investment objectives and/or financial circumstances, this report or article should not be construed as advice designed to meet the particular investment needs of any investor. Investing involves risk. Any opinions expressed by Zacks SCR Analysts are subject to change without notice. Reports or articles or tweets are not to be construed as an offer or solicitation of an offer to buy or sell the securities herein mentioned.

CANADIAN COVERAGE This research report is a product of Zacks SCR and prepared by a research analyst who is employed by or is a consultant to Zacks SCR. The research analyst preparing the research report is resident outside of Canada, and is not an associated person of any Canadian registered adviser and/or dealer. Therefore, the analyst is not subject to supervision by a Canadian registered adviser and/or dealer, and is not required to satisfy the regulatory licensing requirements of any Canadian provincial securities regulators, the Investment Industry Regulatory Organization of Canada and is not required to otherwise comply with Canadian rules or regulations.

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