Surge Copper (SURG, TSX-V)

31 cents | Market Cap $48 million

We’ve been on this story since 2020.

I visited the property providing some boots-on-ground coverage. I even got to know and develop respect for the largest shareholder and Chairman Patrick Glazier. From the beginning, before my visit and meetings, everything looked good on paper. Surge’s Ootsa property is easily accessible and well-located next to Imperial Metals’ (III, TSX) Huckleberry mine.

Despite having 1+ billion pounds Copper at mineable grades (for B.C.), SURG traded lowly under 10 cents with a sub $10 millionmarket cap.

Nearing year’s end 2020 the boosters turned, sparked by a $6 million financing and new management. Then drill results started rolling-in, like 0.5% CuEq over 700 m, reminding everyone about what was known many years prior (Surge controls a big Copper porphyry district).

The stock ran from under 10 cents past 80 cents in a matter of months!

Big win, assuming people took some money off (I did, but still hold 200,000 shares).

Doubling down and putting their renewed financial muscle to work, Surge did a deal to acquire 70% of Berg from Centerra (CG, TSX). Combined their land base now covers 122,000 hectares. Their Copper pounds in-the-ground ballooned to nearly 8 billion (an estimated 830 Mt grading 0.4% CuEq).

Now, after covering the entire property with ZTEM for the first time speculators see a visual indicating the full-scale of porphyry potential for Surge in this region.

Existing deposits are the purple circles – 7 new targets, orange circles, were identified with ZTEM.

Leif Nilsson, Chief Executive Officer, commented: “The completion of geophysical inversion modeling of this district-scale ZTEM dataset is an important milestone in Surge’s strategy. One aspect of our thesis is that this district has significant untapped exploration potential and could one day be among the largest Copper districts in Canada. Investing in such a survey that essentially provides highly-useful petrophysical data within the entire explorable volume of such a large and prospective district will prove very valuable to the company as we begin to embark on focused regional exploration activities in the coming field season.”

Dr. Shane Ebert, President and VP Exploration, commented: “The combined ZTEM and airborne magnetic survey has provided clear and consistent geophysical signatures over the known Copper porphyry deposits within the district-scale Ootsa-Berg Property, and will be an excellent targeting and screening tool moving forward. Multiple new exploration targets stand out in the survey data and will be evaluated and ranked with the aid of large existing geologic, geochemical, and geophysical datasets. Select targets will be followed up with groundwork in spring/summer 2022 including ground-based induced polarization surveying, and then prioritized for drill testing.”

Since that 20 x run in 2020 (from a low 4 cents to 80 cents) SURG has been consolidating (going down in kind of a controlled manner). The 2nd leg of that bull run launched from the high 20’s. SURG has bumped along there since December and closed Friday at 29cents.

The Company has $8 million flow-through on hand to drill this year.

QC Copper and Gold (QCCU, TSX-V)

28.5 cents | Market Cap $42 million

In recent years QCCU has done a nice job of consolidating a past producer plus excellent exploration ground in the Chapais-Chibougamou region. The company is backed by a more than capable promotional and geological group.

According to the latest presentation QCCU has $18 million cash and $7 million worth of Baselode (FIND, TSX-V) equity.

Like what’s been done during recent history with Canadian Malartic and Detour Lake, QCCU is using new approaches and ideas to explore an old mine (plus the surrounding area).

With only about 100 Mt the existing resource is relatively small, although the grade is relatively high and the location benefits from existing infrastructure.

QCCU is promising to do at least 60,000 m of drilling this year, so that ought to generate enough news flow to hold the interest of speculators (who have a decidedly short attention span, in most cases).

If you’re someone who’s more likely to “trust the chart” more than any other bits of information, and what management says it’ll do, this QCCU chart is for you!

Since 2020 the chart is bent 1 direction and 1 direction only – bullish.

The stock will pause (consolidate) for 6 months or more following spikes higher – that’s happened twice so far. Only this month does a new 3rd bullish phase appear to be starting.

The 50 and 100-day EMA’s have recently turned higher, positioned immediately underneath Friday’s 28.5-cent close.

Lots of support for both QCCU and SURG in the mid-to-upper 20’s.