VANCOUVER, BC / ACCESSWIRE / May 2, 2024 / Faraday Copper Corp. (“Faraday” or the “Company”) (TSX:FDY) announces its financial results for the three months ended March 31, 2024.
Highlights to Date
- Announced approval from the Bureau of Land Management for Notice of Intent to conduct drilling at the Copper Creek Project on May 2, 2024.
- Reported 117.00 metres (“m”) at 0.40% copper near surface, including 23.37 m at 0.60% copper at Old Reliable and drilling success continuing at Area 51 on April 10, 2024.
- Reported positive metallurgical results for the Copper Creek Project on February 26, 2024.
- Reported 163.11 m at 0.85% Copper within 380.60 m at 0.62% Copper in the American Eagle Area at the Copper Creek Project on February 21, 2024.
- Reported new mineralized breccias (Starship and Eclipse) 800 metres southeast of the existing Mineral Resource at the Copper Creek Project on January 16, 2024 and March 4, 2024, respectively.
- Announced results for the Copper Creek Project drill program on April 10, 2024, March 4, 2024, February 21, 2024, and January 16, 2024.
- Continued baseline environmental data collection, stakeholder mapping, and generative exploration targeting at the Copper Creek Project to provide a pipeline of future targets through ongoing geological mapping and recently reprocessed and newly acquired geophysical data.
Upcoming Copper Creek Milestones
- Ongoing results from the gold assaying program of historical drill core
- Ongoing results from the Phase III drill program
Copper Creek Project Update
The learnings from the geological and structural model and the results from the Phase I and Phase II drill programs, along with the recently acquired geophysical and air-borne spectral data sets, and economic criteria defined in the 2023 Copper Creek Preliminary Economic Assessment base case, have contributed to the framework for the Phase III drill program, which commenced in the fourth quarter of 2023. The focus of Phase III drilling will be on expanding the mineral resource, improved delineation of high-grade mineralized zones, and reconnaissance drilling on new targets.
With extensive historical exploration, over 200,000 metres of drilling and modest past production, significant exploration upside remains. There are several hundred known breccia occurrences mapped at surface, of which less than 40 have been drilled and 17 are included in the Mineral Resource Estimate (“MRE”).
In the Phase II drill program gold assay results confirmed the potential for gold to occur in economic concentrations in certain phases of the mineralization. Gold is not currently included in the MRE. A sampling program is underway to gather sufficient data coverage for potential gold inclusion in future technical studies. The results from the Childs Aldwinkle and Copper Prince breccias have been returned. The Company is continuing the re-assaying of historical material for potential inclusion of gold in future mineral resource updates. Additional areas are expected to include the Pole breccia and the Keel underground zone, with the Company continuing to evaluate other potential areas.
The Company has reported results from a metallurgical program focused on grind size optimization that demonstrated the viability of coarse particle flotation, gold recoveries in concentrate and test work on near surface mineralization.
The Company is focusing on exploration at the property while continuing to advance technical studies, environmental data gathering, and stakeholder outreach.
Financial Results
| Three months ended | ||||||||
In Canadian dollars | March 31, 2024 | March 31, 2023 | ||||||
Exploration and evaluation expenses | $ | 4,464,210 | $ | 5,239,030 | ||||
General and administration | $ | 695,542 | $ | 880,029 | ||||
Share-based compensation | $ | 269,617 | $ | 690,083 | ||||
Net Loss | $ | 5,499,835 | $ | 7,167,959 | ||||
Basic and Diluted Loss per Share | $ | 0.03 | $ | 0.05 | ||||
Note: The financial information in this table was selected from the Company’s condensed interim consolidated financial statements for the three months ended March 31, 2024 (the “Financial Statements”), which are available on SEDAR+ at www.sedarplus.ca and the Company’s website www.faradaycopper.com.
Selected Financial Information
In Canadian dollars | March 31, 2024 | December 31, 2023 | ||||||
Cash and Cash Equivalents | $ | 8,754,699 | $ | 14,901,206 | ||||
Property and Equipment | $ | 17,058,456 | $ | 16,278,872 | ||||
Resource Properties | $ | 4,955,328 | $ | 4,955,328 | ||||
Total Assets | $ | 31,149,468 | $ | 36,592,286 | ||||
Note: The financial information in this table was selected from the Financial Statements, which are available on SEDAR+ at www.sedarplus.ca and the Company’s website www.faradaycopper.com.
Cash Flow, Liquidity and Capital Resources
The Company is a resource exploration stage company and does not generate any revenue and has been mainly relying on equity-based financing to fund its operations. As at March 31, 2024, the Company had cash and cash equivalents of $8,754,699 (December 31, 2023 – $14,901,206) and a current assets less current liabilities of $7,233,935 (December 31, 2023 – $12,793,784). During the three months ended March 31, 2024, cash used in operating activities was $5,767,179 (2023 – $7,922,544), cash used in investing activities was $393,496 (2023 – $13,538,439), and cash used in financing activities was $10,486 (2023 – cash provided $39,174,354). Cash used in investing activities was primarily related to the purchase of land at the Copper Creek Project.
The Company will need to raise additional funding to finance its day-to-day operations and to enable the Company to achieve its long-term business objectives. On February 14, 2023, the Company completed an equity-based financing for net proceeds of $38,437,854.
About Faraday Copper
Faraday Copper is a Canadian exploration company focused on advancing its flagship copper project in Arizona, U.S. The Copper Creek Project is one of the largest undeveloped copper projects in North America with significant district scale exploration potential. The Company is well-funded to deliver on its key milestones and benefits from a management team and board of directors with senior mining company experience and expertise. Faraday trades on the TSX under the symbol “FDY”.
