Copper Remains Well-Within Reach Of Fresh 19-Month High - Analysis of Copper Demand, Pricing, and Supply Fundamentals with Case Study Duran Ventures

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With copper spot price closing the first quarter of 2010 at 3.5535 US$/lb and futures having steadied going into the Easter long weekend, copper remains well-within reach of a fresh 19-month high. Below is a synopsis report on copper demand, pricing, and supply fundamentals along with a case study of Duran Ventures Inc. (TSX-V: DRV) (US listing: DUVNF) which is building tonnage on a copper porphyry target that is very large, potentially rivaling comparables many times Duran's current market cap. With only ~95M shares outstanding and trading under CDN$0.20 DRV.V is poised for significant upside revaluation.

Mining MarketWatch Journal synopsis of salient points currently influencing the price, demand, and supply of copper plus a case study on Duran Ventures Inc. (TSX-V: DRV) (US listing: DUVNF) offering insight and opportunity afforded investors as DRV.V is building significant copper tonnage in Peru.

The full review and valuation commentary on Duran Ventures may be found at online. A major mineral district is actively taking shape with Peñoles and Duran Ventures holding key ground, growing tonnage with world class bulk tonnage Cu-Mo potential.

The following is a synopsis of salient facts and points currently influencing the price, demand, and supply of copper:


  • On Tuesday March 30, 2010 copper prices for three month delivery rose to a 19-month high overnight on the London Metal Exchange at $US7,849 a tonne, amid growing expectations of a sustainable global economic recovery - a price not seen since August 2008. Historically a record high for copper was established at almost $US9,000 a tonne in mid-2008.
  • At the close of business Wednesday March 31, 2010 London Metal Exchange copper warehouse stocks had shed another 575 tonnes to 514,325 tonnes. Stockpiles have fallen 40,750 tonnes since mid-February when they peaked at their highest level since October 2003, at 555,075 tonnes
  • COMEX copper stocks went down 233 short tons to 101,103 short tons as of Tuesday.


  • The outlook for copper is strong amid tight supply and growing demand from China and other developing economies. In February 2010 China posted GDP growth above 10% and there has been strong rebound in the economies of many other countries in the region including Thailand and Taiwan. Our estimate of forward looking demand echo that of Juan Villarzu, head the world's largest copper producing company (Codelco) and the Chairman of Apoquindo Minerals, who in Q1 2010 has been quoted as forecasting China to be accountable for 68% of the expected growth in refined copper consumption between 2010 and 2014, Russia (7%), India (5.4%) and South Korea (3.6%).
  • A recent rise in copper prices was triggered by the massive earthquake in Chile on February 27 that resulted in the temporary suspension of production at key copper mines in the South American nation (copper was priced at about $US7,330 per tonne when the earthquake struck).

Main global factors likely to keep the cost of supplying incremental demand for copper difficult:

  • The declining rate of "world-class" copper deposit discoveries.
  • The continuous decline in average ore grades.
  • The fact that an estimated 60% of today's open pit mines will deplete or go underground (generally a higher cost means of production) by the next decade.

The aforementioned provides good reason for investors to focus on new situation unfolding in the marketplaceā€¦.

CASE STUDY - Duran Ventures Inc. (TSX-V: DRV) (US listing: DUVNF)
DRV.V is advancing their 100% owned concessions located in Central Peru where geologists agree that Duran's Aguila copper-molybdenum porphyry deposit is part of a large porphyry cluster in a major mineral district actively taking shape with Peñoles and Duran Ventures holding key ground.

With the latest drilling Duran appears to have now carved out over of a billion pounds of copper at the Aguila central area alone and is targeting several times that plus they appear to have established a new zone they share with Penoles ... Duran has no resource calculation yet but drilling at Duran's Aguila central zone has so far established mineralization over an area ~300m+ x 300m x 400m (depth) -- Market Equities Research Group estimates this to represent in excess of 100,000,000 tonnes averaging ~0.6% Cu ... this (non NI 43-101) in-situ appears over 1.3 Billion pounds of copper and ~100 Million pounds of molybdenum.

Duran's 100% owned Aguila copper-molybdenum deposit has yielded impressive grades in the order of 0.5 - 0.6%+ copper (ie.718m grading 0.555% Cu and 0.041% Mo = 1%+ copper equivalent ) and is host to a past producing open-pit mine. Drilling has expanded the deposit to the west, east and at depth, encountering higher grade porphyry than other companies in Peru (many the subject of buy-outs in the US$400M - 500M region), the deepest hole is over 600m from surface down and is still in copper mineralization.

To date most of Duran's drilling has focused in and around the Aguila pit (central zone) where Duran has established a large deposit, encountering numerous stellar intercepts flanking an IP anomaly. Results from the last hole drilled in the Aguila central zone graded 0.69% Copper and 0.042% Molybdenum over 396m, affirming the strength of the mineralized system at Aguila, as well as the considerable tonnage potential. The mineralized area established so far is large yet represents only a fraction of the prospective contact from that one IP anomaly alone which stretches 1400m in length and is open in all direction. The size potential at Aguila is enormous as there are many other IP anomalies on the property believed to be equally as prospective.

Mining giant Peñoles is actively drilling what is understood to be a separate porphyry body just off Duran's claim line to the south and it it now appears that Duran has also established new porphyry body that both Peñoles and Duran share in the SW section of Duran's claim group. Duran's Aguila project is demonstrating the potential to be in the 300M+ tonne range and if it is with the grades found to date then DRV.V is comparable to many of the other copper explorers in Peru that currently have $100M - $200M+ market caps (DRV.V market cap is currently under $18M).

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. The term investment advisory refers to the fact the reader is being advised there is a publication on an item that is also an investment, and not advice to buy or sell. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.


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James O'Rourke
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