In the development of renewable resources, copper is vital. Yet, the potential and necessity of copper has been somewhat neglected compared to the novelty of emerging tech elements such as lithium . However, one company is seizing the opportunity: Searchlight Resources (CNYCF). This Canadian mineral exploration and development company focused on Saskatchewan, Canada, combines an ideal copper mining location with innovative digital survey techniques, yet remains significantly undervalued at just 0.06 cents per share with a market cap of just under $6 million. Investors looking for a significant opportunity with a company involved in the transition to renewable energy sources will want to take a closer look at Searchlight Resources.
Copper’s Role in Renewable Energy Systems
Copper is an incredibly efficient conductor, making the resource a crucial component to green technologies, like electric vehicles and wind turbines, as well as solar and thermal energy sources. And with the adoption of renewable energy on the rise, the demand for copper will only continue to grow. In fact, the increasing sales of electric vehicles alone are enough to drive the demand for copper upwards. According to a study conducted by IEA, 17,000 electric vehicles were purchased in 2010, but this number skyrocketed to 2.1 million worldwide by 2019.
An additional study performed by Bloomberg NEF’s Electric Vehicle Outlook 2019, shows that electric vehicles are on track to make up 57% of global passenger car sales by 2040. Dramatic increases in wind energy have also been reported as shown by a 15% annual increase in global wind capacity from 2009 to 2019 according to a recent study.
Mining for Copper: Location, Infrastructure, Deposits
As the demand for renewable energy sources grows, copper remains a key input, but mining for the resource can have its complications. Location, government policy, and infrastructure play a major role in the success of any copper mining project, and the development of advanced survey technologies is also a crucial factor. However, these represent challenges Searchlight Resources has faced head on with significant land positions in highly prospective areas in Saskatchewan.
Saskatchewan, Canada has proven to be one of the best jurisdictions for mining in the world. This is largely due to its advantageous and supportive government policy, as well a generous endowment of copper deposits in formations known as” greenstone belts”. These are areas of the earths crust formed billions of years ago where deposits of copper and gold are often found.
The Flin Flon -Snow Lake greenstone belt in eastern Saskatchewan and western Manitoba is one of the richest with over 25 developed copper mines since the initial discoveries one hundred years ago. Consequently, Searchlight Resources has aggressively acquired land here, and now holds a 427.6 square kilometer land position in this area. It is utilizing innovative technology, including VTEM, digital inversion software, and drone technology, to conduct digital surveys of the greenstone belts. In a recent update released by Searchlight, the company has also defined a new high-priority VMS drill target 15 kilometers northwest of the Flin Flon mining camp, with a drill permit currently under application.
So, what is the potential value of Searchlight’s copper project? Mining for copper is different from mining for other resources like gold or silver. When mining for copper, a discovery can be made with a single drill hole, and the discovery can often represent an economic value of more than $50 million. The value of the discovery is dependent on its size, richness, and depth, but nearby infrastructure can help maximize this value, a factor Searchlight Resources is well prepared for.
The Investment Potential of Searchlight Resources (CNYCF)
With the rise of electric vehicles sales and the continued pressure for the world to adopt more sustainable forms of energy, copper will only continue to grow in demand. By combining prolific land position, infrastructure, innovative technology, and an experienced and dedicated management team, Searchlight Resources is poised to become a major player in satisfying the demand for copper. For investors, Searchlight Resources represents a significant investment opportunity as the company remains undervalued despite its potential. To learn more about Searchlight Resources, visit their website, here. Investors can also find the company’s latest news, here.
To listen to the Stock Day Podcast’s recent interview with Searchlight Resources, click here.