Re-Discovering Deposits on Copper Mountain

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Anglo-Canadian Mining Corp. (TSE:URA) (CVE:URA) is drilling again its fully owned and highly prospective Princeton Property bordering the productive Copper Mountain Mine aka “Superpit” run by senior miner Copper Mountain Mining Corp. (TSE:CUM) 250km north-east of Vancouver in British Columbia, Canada.

Re-Discovering Deposits on Copper Mountain

Until the end of the year, 10,000m of drilling are permitted. We expect announcement of drill assays from the first hole anytime now as it was completed in early September.

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Anglo-Canadian share price

If this drilling program intersects similar mineralization as the holes drilled in 2010-2011, we anticipate a strong upward trend of the share price which may very well look similar to the strong upswing in late 2010 when the company also announced a new drilling campaign and releasing respectable drill assays thereafter.

Since the last drill program of 2010-2011, the company did not continue to drill as the markets did not support such endeavors being the likely reason why the share price took such a deep dive during the last 2 years hand in hand with the general mining market. Apparently, these circumstances have created rock-bottom prices that are on the rise again.

The Ellis Martin Report recently did an interesting interview with Anglo-Canadian Mining Corp. (TSE:URA) (CVE:URA)’s President, Len Harris – the video can be viewed on Youtube.

Anglo-Canadian market cap

Currently, Anglo-Canadian has a market cap of solely $2 million. Now with metals prices on the rise again, we are confident that the company is putting everything together to aggressively drill its highly prospective property again and to show the market that they indeed own a copper-gold deposit just 4km south of the Copper Mountain mill. Anglo-Canadian just needs to prove a mineralization in the range of 0.3% copper which is the average head grade of the Copper Mountain mill. Every drill hole that gets close to this number should lift the share price strongly as witnessed before (the longer the mineralized intercepts and the more shallow the better, of course).

Recently, Anglo-Canadian Mining Corp. (TSE:URA) (CVE:URA) released a first drilling update on September 12 – and it looks like the drillers hit significant mineralization already with the first completed hole:

“Hole #PR-28-13 was drilled on the Combination Zone to a depth of 148 meters. Three significant mineralized zones were intersected; the first zone was from 43 – 56 meters; the second zone was from 87 – 118 meters; and the third zone was from 118 -145 meters for a total of 71 meters of mineralization. Each mineralized zone was separated by primarily feldspar dykes. Mineralization consisted of chalcopyrite, pyrite, magnetite and evidence of chalcocite. The Lost Horse Intrusive was evident at three separate intervals and is mineralized with veins, veinlets and disseminated chalcopyrite and magnetite. All drill core has been logged, split and delivered to Acme Labs Vancouver for analysis. Results will be published upon completion. Drilling is underway on hole PR-29-13, which was set up 50 meters from hole #28, and is designed to test possible depth extension.“

Copper Mountain advising on drilling holes

We expect drill assays from the first hole to be announced shortly, whereas it should be noted that the company announced already in late 2011 that staff from Copper Mountain Mining Corp. (TSE:CUM) is advising on how to drill holes more efficiently:

“Discussions with Copper Mtn. staff have led to the decision to drill future holes at -50°, generally north, towards the Copper Mountain intrusive / Nicola Volcanic contact. Most historic drilling completed by the Company to date has been vertical.“

The current drilling program is set to push doors open for merger, sales, joint venture and strategic investor negotiations with senior miners and especially Asian investors. Mitsubishi already owns a 25% stake in the Copper Mountain Mine, whereas Anglo-Canadian represents a prime take-over candidate especially for its neighbor Copper Mountain Mining Corp. (TSE:CUM). However, if a strategic investor is faster, the Princeton property can be developed under the investors stake and thus creating much more shareholder value as if swallowed by a senior. Recently, Anglo-Canadian announced an equity financing at the current low price level of 5 cents for a maximum stake of $200,000.

In late 2011, we initiated coverage on Anglo-Canadian Mining Corp. with a research report titled “Princeton – What an Opportunity”. In 2012, we provided our first update with an overview of all holes drilled to date and also taking a look at worldwide porphyry copper deposits; which report can be viewed as a PDF here. Rockstone Research will follow the current drill campaign and provide further updates in due course.

The current drilling program is taking place at the Combination Zone and focuses on an area trending in a westerly direction from historic drill holes PR-12-26 and PR-12-27 which produced 20m of 0.64% Cu and 2.6 g/t Ag and 0.35% Cu and 3.3 g/t Ag respectively (as announced on August 28, 2012). This zone extends over an area of 600m with only the first 250m (east-west) and the first 150m (north-south) having been drill tested. Several drill holes on 25m centers will assist in further defining the mineralized zone. The company has drilled 24 holes on the “Combination Zone” of which +70% contained significant intervals of copper and silver mineralization. In addition to expanding this mineralized region, Anglo-Canadian will test key targets identified by the 2011 3D IP/Mag geophysical survey and in particular, the 900m long high chargeability target.

Disclaimer: Neither Rockstone Research nor the author was remunerated by the companies mentioned herein to produce this content. However, the author holds shares of Anglo-Canadian Mining Corp. and may sell those any time without notice. Please read the full disclaimer on

Analyst: Stephan Bogner (Dipl. Kfm., FH)

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