By: Dylan Sikes - AllPennyStocks.com News

Thursday, September 10, 2015

After falling sharply in August due to the turmoil in China, copper prices have rebounded back in the past few days as several miners have announced production cuts. Copper miners such as Glencore and Freeport-McMoRan are cutting production as they grapple with weak prices. However, the production cuts are coming at a time when there have been unexpected outages in some large copper mines. As a result, analysts believe that the copper market could actually turn into a deficit next year. The long-term outlook for copper prices though largely depends on demand from China. Fresh economic data from the world’s second-largest economy shows that there is a sharp slowdown. This is negative for copper demand, however, Chinese policymakers have already announced measures such as interest rate cuts and reducing reserve requirements for banks in order to support the economy.

Earlier this week, China also announced that it will implement measures on the fiscal side to boost the economy. One possible thing China could do is increase spending on infrastructure. This will be a positive for raw materials such as copper.

This morning, Canada-based copper miner Arena Minerals Inc. (TSX-Venture:AN) announced that it commenced drilling on its Atacama copper project. The company is developing the project with its joint venture partner Japan, Oil, Gas and Metals Corporation (JOGMEC).

AN announced today that a reverse circulation drill rig has been mobilized and commenced drilling the Baquedano NE project. The exploration program has been designed to drill the entire land package under option to JOGMEC. The program will systemically drill the land on a 1.5 km by 1.5 km grid. This will reduce the chances of missing a world class porphyry deposit.

AN’s approach has been to design a grid that was tightly spaced enough so that drill holes would minimally intersect the alteration halo of classic porphyry hosted copper deposits. The company said that the spacing was identified using sizes and geometries typical of deposits in the area and in particular, the known characteristics of the Spence and Sierra Gonda deposits.

Arena Minerals also announced that it has filed a technical report in respect of its Atacama Copper Property in the municipalities of Sierra Gorda and Maria Elena, Antofagasta Region in Chile. The technical report has been authored by James Albert McCrea, B.Sc., P. Geo, who is an independent “qualified person” as defined by National Instrument 43-101.

Shares are slightly down on the news at $0.17 on volume of 139.5k volume mid-day through the day.

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