In-Situ Copper Leaching Project in Arizona Transitions to Production – Cathode Copper Expected in Q1, 2020

In-Situ Copper Leaching Project in Arizona Transitions to Production – Cathode Copper Expected in Q1, 2020

The market seems to like the news coming out of Excelsior Mining Corp. (TSX:MIN, OTCQX:EXMGF) recently as their in-situ copper leaching project is on track to transitioning the company to producer status this quarter. The shares are trading at $1.19 and have broken out and up from a favorable technical pattern, as noted. The triangle target has a minimum price objective of $1.45 which equals the old high. The company and its shares are poised to advance further. 

Although long term trend momentum has not yet confirmed the move up, this is not a concern because trend momentum on a “long setting” will lag a bit.

Positive volume indicates that recent news is being welcomed by investors who are following the company*. Confirmation of production will attract new investors.

(*Ivan’s note: It’s worth noting that the trading patterns coincide with what I generally see as trading patterns that are created as a result of a promotional campaign. I did manage to see some materials on this, which could have influenced volumes a little bit. It will be interesting to see if the volume can sustain itself and in a positive direction. I believe we will likely see the stock settle a bit, and perhaps move higher if John’s theory of market acceptance proves true.)

I attended a site visit back in April 2018 and could see that the project had all the necessary ingredients for success. Most of all, the project had an incredible logistical advantage due to a portion of the ore body running directly under a major US interstate highway, I-10. Also, a pre-existing SX/EW processing facility was purchased by Excelsior. The facility is adjacent to the in-situ copper deposit, and pregnant leach solutions are easily delivered to it.

Further details are available on the company’s web-site at:

Copper is currently trading around $2.80 and the weekly chart for copper shows overhead resistance in the $2.95/$3.00 range.

Excelsior attracted a solid funding partner to move the project ahead, in advance of a recovery in the copper market. Copper has made a small turn up recently and is edging forward to test the key overhead resistance level of $2.95/$3.00.

Excelsior had to conform to all of the necessary regulations set down by the EPA and work their way through various environmental challenges. These have been put to rest, and the company is looking forward to an exciting year ahead – as they complete the effort=result=reward equation.

Chart Note: It is worth noting that consecutive weekly closes above $1.45 will mean that MIN.TO will be making new all-time highs. The re-valuation will reflect the positive impact of sustainable production over time and upside leverage to an improving copper price.

John Top

Disclosure: We do not own any shares of MIN.TO. at the time of this writing.

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