Nevada-Based Exploration Firm Prepares for Major Drilling, Development Initiatives

Source: Streetwise Reports 06/07/2024

Giant Mining Corp. BFGFF is an established exploration company with a proven track record of copper discovery.. The Majuba Hill Project, owned by the company, had historic production of over 2.8 million pounds of copper with an average grade of 4% from historic underground mines operating between 1911 and the late 1950's.

Situated in the mining-friendly state of Nevada, Giant Mining Corp. is strategically located near essential infrastructure such as highways, rail, water, and power. As the company transitions from exploration to resource definition, it is set to leverage its existing assets and unlock significant value for stakeholders. Recent developments and planned activities signal promising potential, according to experts.

The Copper Sector Overall

The copper sector is experiencing a significant shift as global demand for this essential metal continues to rise, causing even traditionally cautious analysts to adjusting their forecasts to reflect higher prices.

"Even analysts who say they aren't copper bulls are being forced to shift their forecasts in favor of higher prices" reported Stockhead on April 9.

Global consumption of refined copper has grown substantially, from 10 million metric tons in the late 1980s to 26.5 million tons in 2023. Asia, particularly China, is the largest consumer, accounting for 70% of global usage.

"As of 2022, China was the largest consumer of refined copper, with usage of 14.7 million tons . . . Copper mine production totaled 22.4 million tons in 2023, with Chile, Peru, and Democratic Republic of Congo (DRC) being the largest producers. Production of refined copper, including secondary or scrap, totaled 26.5 million tons in 2023, with China being the largest producer" stated Reuters on May 20.

"Giant Mining continues to be rated a Strong Buy, especially on any minor dips" Technical Analyst Clive Maund wrote.

Looking ahead, the demand for copper is expected to surge. According to a Credendo report on May 27, "Copper demand could double by 2035. The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy, and the boom in investments in green technologies (e.g., renewables and electric vehicles) and in AI technologies."

The electrical and electronics segment is a significant driver of copper demand. Copper's excellent conductive properties make it indispensable in various applications, including wires, cables, transformers, motors, and residential electrical circuits. The rise in electric vehicle production has further boosted copper demand, as components like foils, stators, rotors, and motors in these vehicles are copper-intensive.

According to Mordor Intelligence, the global production by the electronics and IT industries increased by 11% year over year in 2021, reaching US$3,415.9 billion. This growth is expected to drive further demand for copper in the electronics sector.

In the United States, the Consumer Technology Association (CTA) projects that the consumer technology sector will grow to US$505 billion in retail sales revenue by the end of the year, with a 2.8% rise in sales over 2021's growth. This increase in demand for new technological products is anticipated to expand the copper market during the forecast period, reinforcing the metal's critical role in the global economy.

Some Giant Catalysts

Streetwise recently sat down with Giant Mining Corp., and they outlined their plans for significant growth, with several key catalysts on the horizon. Over the next six to 12 months, the company said it will conduct a comprehensive reverse-circulation (RC) and core drilling program aimed at defining a substantial ore body estimated to range between 50 to 100 million tonnes, with a grade from 0.15% to 0.30% copper. This initiative is focused on delineating and expanding known resources rather than exploring new areas, providing a clearer picture of the potential yield from existing deposits. With its strategic location and access to essential infrastructure, the company's Nevada property ensures operational efficiency and reduced logistical challenges, enhancing the project's viability.

Ron Struthers of the Struthers Resource Stock Report echoed this positive outlook on May 30, 2024, noting, "Giant Mining Corp. is well financed with just over US$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."

In addition to the drilling program, Giant Mining Corp. has recently received approval for the Reclamation Cost Estimate (RCE) from the Nevada Department of Conservation & Natural Resources.

The company said the approval is a critical milestone for advancing the Majuba Hill Porphyry Copper Deposit project and underscores its commitment to environmental stewardship and compliance with state regulations.

With this approval in place, the Majuba Hill project is well-positioned to proceed with further exploration and development activities, which is likely to attract additional investments and partnerships, thereby accelerating the project's timeline and potentially boosting stock value.

The superior infrastructure at the Majuba Hill site, including well-maintained roads and reliable electric power, facilitates swift mobilization and efficient operations, the company noted. Continuous improvements and utilization of this infrastructure will support ongoing and future project phases, ensuring smooth operations throughout 2024. The planned phase of exploration drilling at Majuba Hill, set to commence in Q3 2024, aims to delineate further resources and expand known mineralization zones. Successful drilling results can significantly increase resource estimates and enhance the project's overall valuation, with initial results expected by Q4 2024.

Additionally, the company said it is in advanced discussions with several major mining companies, highlighting the increasing interest from industry giants in its assets. Strategic partnerships or investments are anticipated, Giant Mining Corp. said, providing the necessary capital and expertise to expedite the development of its projects.

What Experts Are Saying

Technical Analyst Clive Maund has expressed strong confidence in Giant Mining Corp. In his May 23, 2024 update, Maund highlighted the company's impressive performance, noting, "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."

He emphasized the bullish signals, 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."

Maund also pointed out the strong financial backing of the company, mentioning, "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."

Reflecting on the broader market conditions, he added, "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." [OWNERSHIP_CHART-11069]

Ron Struthers of the Struthers Resource Stock Report echoed this positive outlook on May 30, 2024, noting, "Giant Mining Corp. is well financed with just over US$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."

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:

1. 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.
2. 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.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. 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.