May 3, 2023
Libero Copper & Gold Corp. (TSXV:LBC, BUY, C$0.95 target, Taylor Combaluzier) has partnered with its largest shareholder, Anglo Asian Mining PLC (AIM:AAZ, Not Rated) (~19.9%), for the initial design, engineering, and financial modeling of its 100%-owned Mocoa porphyry Cu-Mo deposit in Colombia. Libero aims to outline an accelerated development pathway to production that would utilize underground bulk tonnage methods and local facilities for Mo, Cu cathode, and Cu products production. Project development is expected to be focused on minimizing its environmental footprint. The company plans to leverage a historical 1984 positive PFS and the 2021 updated resource estimate and identify additional work requirements such as supplementary metallurgical and geotechnical test work. As mentioned in our initiation report, Mocoa’s 2021 NI 43-101 compliant technical report reported inferred resources of 636Mt at 0.33% Cu and 0.038% Cu Mo (0.45% CuEq) containing 4.6B lb CuEq containing 4.6B lb Cu and 510 lb Mo (~6.3B lb CuEq). In our view, this announcement signifies that Libero is aligning itself with the government of Colombia’s strategy to transition its economy away from fossil fuels and develop a local Cu production chain in-country. We note that Mocoa has previously faced challenges with local communities (read more) and we believe plans to advance the project towards production could be a way to help get buy-in from the government and these local communities, as it would bring numerous economic benefits once in operation. In our view, Libero’s plan to pursue development of Mocoa as opposed to adding incremental pounds in the ground could potentially help the company regain momentum and pave the way for more news flow and generate catalysts that could potentially help re-rate the stock. Read more
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Libero Copper & Gold Corp. – TSXV:LBC
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