Canadian Copper grabs majority stake in Murray Brook VMS project in New Brunswick

Canadian Copper (CSE: CCI) is acquiring a 72% stake in the Murray Brook project, located in New Brunswick’s Bathurst mining camp, from Votorantim Metals Canada.

In return for the majority stake in the asset, Canadian Copper will pay $1 million cash and issue 2 million units to Votorantim. It will also assume $2 million of the seller’s bonds provided to the provincial government and grant it a 0.25% net smelter return. Upon commercial production, Votorantim would receive another $2 million. MetalQuest Mining holds the remaining 28% of the project.

Murray Brook represents the 5th largest volcanogenic massive sulphide (VMS) deposit within the Bathurst camp, which ranks 3rd globally as a major VMS district.

The sulphide measured and indicated resource is estimated at 18 million tonnes grading 0.47% copper, 2.73% zinc, 0.99% lead, 42 grams silver per tonne and 0.59 gram gold, for approximately 183 million lb. of copper, 1.1 billion lb. of zinc, 390 million lb. of lead, 42 million oz. of silver and 339,000 oz. of gold. The advanced-stage deposit is open laterally and at depth, with potential for near-mine and prospective regional exploration.

A 2013 preliminary economic assessment outlined a 10-year operation that would produce 91.4 million lb. of zinc, 9.2 million lb. of copper, 13.6 million lb. of lead and 1.3 million lb. of silver annually. Its initial capital cost was estimated at $261 million.

Canadian Copper noted that additional metallurgical test work completed in 2019, which significantly improved metal recoveries over the PEA figures, could improve the project’s economics. A new copper stringer zone discovery 25 metres outside of the known open-pit mineralization could also increase the mine life.

“Our objective to secure majority ownership of the Murray Brook deposit has been central to our growth strategy since 2022. This potential acquisition of a large, advanced-stage polymetallic asset is transformative for Canadian Copper,” Simon Quick, CEO of Canadian Copper, commented in a news release.

The transaction will consolidate the company’s ownership across 18 km’s of the Caribou Horizon trend, connecting its Murray Brook West exploration asset to the west and the Murray Brook deposit to the east. These assets connect the previous operating Restigouche and Caribou mines, which have produced more than 700 million pounds of zinc, plus copper, lead, and other precious metals, since 1970. The Caribou mine remains equipped with an operating process plant including milling, flotation, and a tailings storage facility.

Quick says the Murray Brook project would complement the company’s current Chester asset well with estimated measured resources totalling 120 million lb. of copper. “This opportunity enables possible synergies with the Chester deposit through the implementation of hub and spoke processing. Several deposits in the region extend beyond 1,000 metres in depth, thus we are excited to test the vertical depth extent of Murray Brook beyond the previously explored 350 metres,” he said.

Shares of Canadian Copper surged 10.5% by 11:50 a.m. EDT Tuesday. The company has a market capitalization of $7 million.