Report Highlights
- Cupani is advancing its 100%-owned Blue Lake copper-nickel-platinum-palladium project in Quebec.
- Management and board have extensive experience in the resource sector. Douglas MacQuarrie, a director and industry veteran, recently purchased shares in the open market, acquiring an 18% stake in the company. He founded Asante Gold Corporation (CSE: ASE/MCAP: $511M) in 2011, leading it from explorer to producer, and has been involved in successful deals like PMI Gold (acquired for $180M). CEO Brian Bosse, the largest shareholder with a 31% stake, previously worked as a portfolio manager at Dundee Corporation.
- The Blue Lake project hosts massive sulfide mineralization across five major zones spanning over 500 km2 (Blue Lake, Cancun, Anticline Lake, Doublet, and Extension). The Blue Lake zone hosts a relatively high-grade, historic resource. Recent exploration has identified multiple priority targets beyond the historical resource envelope, and uncovered 9 km of surface mineralization in the Cancun zone, located 16 km from the historical resource.
- Two key positives of the project are its potential for near-surface mineralization, and access to Quebec’s hydroelectric power, both of which could result in low OPEX.
- We believe there is potential for a large discovery, though the project is in its early stages. Based on our review of available data, and speculative assumptions, we believe the project could host 3+ Blbs of CuEq, positioning it as a potential major polymetallic play yet to be recognized by the market. A major success story in recent times is Power Metallic Mines (TSXV: PNPN; formerly Power Nickel), a junior under our coverage that made a significant polymetallic discovery in Quebec. In just 12 months, its MCAP increased from $30M to over $360M.
- While early-stage projects are inherently speculative, a key advantage of Cupani lies in its multiple promising targets. We anticipate that the company will require at least two years to conduct initial testing on all primary targets, providing several opportunities for discovery.
- Management’s immediate goal is to expand the historic resource estimate by testing additional targets at the Blue Lake zone, and the newly discovered Cancun zone. The company has applied for drill permits.
- Cupani is trading at $0.006/lb of CuEq vs the comparables average of $0.022/lb, a 73% discount. With gold and copper trading near record highs, we anticipate an increase in M&A activity over the next 12 months, as larger companies target juniors to grow their portfolios.
*This report and research coverage is paid for and commissioned by Cupani Metals Corp. – See the bottom of this report for other important disclosures rating, and risk definitions. All figures in C$ unless otherwise specified.
