Source: Streetwise Reports 06/19/2024
Giant Mining Corp. BFGFF has announced its engagement with Legarza Exploration for the construction of new roads and drill sites at the Majuba Hill Porphyry Copper Deposit in Pershing County, Nevada. This project, which includes copper, silver, and gold resources, aims to enhance safe and efficient access for exploration drill rigs. Most of the proposed road work has received approval from the State of Nevada Department of Conservation & Natural Resources and the Bureau of Mining Regulation and Reclamation (BMRR). However, the company is still awaiting approval from the Winnemucca District Office of the Bureau of Land Management (BLM) for a small section of the road.
David Greenway, President and CEO of Giant Mining Corp., stated, “We are excited to advance our operations at Majuba Hill with the construction of this new road. Engaging Legarza for this crucial infrastructure project underscores our commitment to ensuring safe and efficient access to our drilling sites. This development marks a significant step forward in our exploration and operational plans for the upcoming drill season.”
The new road and site construction will support drilling activities at Majuba Hill, including 3,900 meters (12,800 feet) of reverse circulation (RC) drilling across 16 drill holes and 488 meters (1,600 feet) of core drilling within the existing exploration target area. The company also plans to drill two deep core holes, each reaching depths of up to 3,500 feet (1,066 meters).
Mining and Minerals
The mining sector is experiencing significant positive trends, including increased project pipelines and exploration activities, driven by the growing demand for minerals essential for the global energy transition. Investments are pouring into the sector to address the need for minerals like copper, which are vital for renewable energy technologies and electric vehicles.
As noted in a February report on Mining.com, this surge in demand is encouraging mining companies to innovate and adopt more eco-friendly techniques and technologies to meet environmental, social, and governance (ESG) standards. The report adds that the mining sector is embracing advances in expertise and technology to tackle environmental and social challenges. This shift is helping to create a more responsible mining industry that can efficiently meet the rising demand for critical minerals.
Copper, in particular, is seeing a notable resurgence. “The recent rebound in copper prices to near new all-time highs suggests the market increasingly recognizes the reality of long-term supply constraints. These are prompting market participants to adjust price expectations upwards in anticipation of tighter supplies against growing demand” according to the June 2024 Sprott Energy Transition Materials Monthly report.
Michael Widmer, a commodity strategist at Bank of America, highlighted the significant investment needed in new mines to meet future demand. “Due to the lack of investments in new mines, there are not enough copper mines. Investment in new mines would have to reach at least US$127 billion per year to keep up with annual copper demand until 2050, as estimated by the International Energy Agency” he noted on DW.com in May. Moreover, the mining sector’s commitment to ESG principles is becoming a prerequisite for attracting investments and securing operational licenses. This focus on sustainable practices is driving increased demand for minerals used in renewable energy, electric vehicles, and energy-efficient construction.
Gold, another critical commodity, is also seeing strong performance. “Gold prices soared to an all-time high of US$2,135.39/oz at the end of 2023. With expected interest rate cuts and cooling inflation on the horizon, gold prices are anticipated to climb to new highs later this year, driven by economic and geopolitical uncertainty” according to J.P. Morgan. This sentiment is echoed by various market analysts, underscoring gold’s status as a safe-haven asset during times of market volatility.
Company Catalysts
Giant Mining Corp. noted it is poised for significant operational advancements with the new infrastructure developments at Majuba Hill. The construction of new roads and drill sites is expected to provide better access for exploration activities, enhancing the efficiency and safety of their operations. This development is a key step in their exploration strategy, potentially leading to new discoveries and an increase in resource estimates.
Moreover, the company’s recent grant of 525,000 stock options and 1,800,000 restricted stock units to officers, employees, and consultants demonstrates its commitment to incentivizing and retaining key personnel. The stock options, exercisable at CA$0.75 per share, and the restricted stock units, valid for one year, align the interests of the company’s stakeholders with its long-term growth and success.
As per a company press release, Giant Mining Corp.’s strategic focus on copper, silver, and gold assets aligns with the growing global demand for these metals. As the flagship project, Majuba Hill’s development will benefit from supportive mining regulations in Nevada, a jurisdiction known for its favorable mining policies.
Expert Opinions
Technical Analyst Clive Maund gave a strong endorsement of Giant Mining Corp. in May, highlighting several key factors that make the company a compelling investment opportunity. He notes, “Giant Mining Corp. has worked out very well for us so far. Right after it was recommended on the site, it broke out of the small Cup and Handle base that we had correctly identified and forged ahead so that by Friday’s close, it had doubled.”
Maund emphasizes the positive volume indicators, stating, “This advance was on good volume, which drove its volume indicators strongly higher and broke the price clear above an important resistance level and above its 50-day moving average, which is now turning up, all of which is bullish.”
He also points out the strong financial backing the company has received, “The substantial financing that was announced as closed on the first of the month was oversubscribed, and any future ones are expected to be as well.” This robust financial support and the oversubscription of their financing efforts indicate strong investor confidence in Giant Mining Corp.
With a positive outlook for the copper market, Maund concludes, “With a strong bull market getting underway in copper, Giant Mining is expected to continue to advance, and as there is no significant resistance until the CA$2.75 area is reached, it continues to be rated a Strong Buy, especially on any minor dips.”
Adding to this positive sentiment, Ron Struthers of Struthers Resource Stock Report noted, “Giant Mining Corp. is well financed with just over $4.4M raised in recent financings. The drill phase is coming soon, and based on past results, we know with confidence that this drill round will provide some excellent numbers.” Struthers’ confidence in the upcoming drill results underscores the company’s potential for significant discoveries and growth.
Ownership and Share Structure
According to Giant Mining Corp., approximately 18.6% of its shares are held by insiders. The remaining shares are held by retail investors.
Giant Mining Corp. has a market capitalization of approximately CA$18.7 million.
The company’s shares are traded on the Canadian Securities Exchange (CSE) under the ticker BFG, on the Deutsche Boerse AG (DB) under the ticker YW5, and on the OTC Pink Sheets in the U.S. under the ticker BFGF.F, with these listings active since December 2017.
Important Disclosures:
- Giant Mining Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Giant Mining Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Giant Mining Corp.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.