Key Investor Takeaways
- All eight successfully drilled step-out holes along about 3 kilometers of the southern Kraken Main Zone intersected visually identified sulfides in the same styles seen in the established part of the zone.
- The broadest sulfide-bearing interval was 47.3 meters, and two holes cut semi-massive sulfides of 7.7 and 6.7 meters.
- Seven holes hit sulfides from the top of bedrock, and five ended in mineralization, leaving it open at depth. Assays from the step-outs are expected before the end of October.
- The new results provide additional geological context for Kraken Main, alongside an initial exploration target of 41 million to 61 million tonnes grading 0.35% to 0.52% copper equivalent (CuEq), which was based entirely on drilling completed before 2026.
- The extended hole VKS25-025 returned 23.05 meters grading 0.24% CuEq and still ended in mineralization.
- Two rigs are drilling at Kraken, returning to the northern Main Zone to extend earlier holes after testing the Venus target.
- S&P Global projects a 10 million metric ton copper supply shortfall by 2040, driven by rising power demand from AI, data centers, and defense, while new copper mines take an average of nearly 18 years to reach production.
Kraken Main Sulfides Stretch 3 Kilometers South
Viridian Metals Inc. (VRDN:CSE; VIRMF:OTCQB) reported that all eight successfully drilled step-out holes along about 3 kilometers of the southern Kraken Main Zone in Labrador intersected visually identified sulfides, according to the company's October 2 news release.
The holes tested a trend that begins about 500 meters south of Viridian's 2025 drilling and runs to a hole the company completed in 2023. The sulfides include the same patchy net-textured and semi-massive styles seen in the established part of the Main Zone, the company said.
The broadest sulfide-bearing intervals were 47.3 meters in hole VKS26-063, 41.8 meters in VKS26-065, 33.2 meters in VKS26-062, and 28.0 meters in VKS26-059. Two holes also cut semi-massive sulfides, a higher-intensity style of mineralization: 7.7 meters in VKS26-062 and 6.7 meters in VKS26-060.
Seven of the holes encountered patchy net-textured sulfides from the top of bedrock, and five ended in that mineralization, leaving it open at depth. The results are visual observations only. Laboratory assays are needed to determine metal grades, and the reported intervals are downhole lengths, with true thicknesses not yet known.
Filling a Kilometer-Wide Gap at Kraken Main
President and Chief Executive Officer Tyrell Sutherland said the results "demonstrate the scale over which we continue to see the same sulphide system" at Kraken Main. Drilling has now hit visually identified sulfides at an average spacing of about 400 meters across the southern 3 kilometers, including semi-massive sulfides he said, compared with the company's best results so far.
Before this program, that stretch of the Main Zone was represented by only two partially analyzed holes more than a kilometer apart, plus the 2023 hole at its southern end, Sutherland noted. He said the consistent results are in line with the scale of the Main Zone suggested by the company's interpretation.
Viridian expected to deliver initial samples from holes through VKS26-063 to Activation Laboratories Ltd. in Ancaster, Ontario, the week of October 6, with assays expected before the end of October. Those will be the first assays from the southern step-out drilling.
The company also released new assays from hole VKS25-025, which it extended this year after the original hole appeared to catch only the upper portion of the mineralized horizon. The extended hole returned 23.05 meters grading 0.24% copper equivalent (CuEq) from 21 meters and still ended in disseminated mineralization at 44.05 meters, an unknown distance above the main target horizon.
Viridian has two rigs on site, drilling the season's 19th and 20th holes. Both were testing the Venus target, following up a 2023 hole that returned 7.55 meters of 0.4% nickel, 0.2% copper, and 0.05% cobalt from surface, with up to 0.76 grams per tonne (g/t) platinum, 0.33 g/t palladium, and 0.45 g/t gold.
As of the October 2 update, both rigs were working on the Venus target, with the company expecting to complete the two holes by October 5 before returning to the northern Main Zone to extend 2025 holes that ended in the upper disseminated zones or did not reach bedrock
The company's shares are now eligible for electronic clearing and settlement through the Depository Trust Co. (DTC), which Viridian said should simplify trading and improve liquidity for U.S. investors. The shares began trading July 15 on the OTCQB under VIRMF.
Kraken Main's Initial Target Is Just the Starting Point
The Kraken project covers 185 square kilometers and has seen historical work by Noranda/Kennecott and Teck Resources, according to the company's website. It includes a 45-kilometer contact between an ultramafic intrusion and basement rocks, and drilling has returned up to 4.1% copper. The Main Zone follows a roughly 5-kilometer conductor, with mineralization at or near surface.
On September 15, Viridian announced an initial exploration target for Kraken Main of 41 million to 61 million tonnes grading 0.35% to 0.52% CuEq. The target is based entirely on drilling completed before the 2026 program and assumes an average mineralized thickness of 8.6 meters.
"The real news will be when the company starts to release assay results near the end of October," Bob Moriarty said.
The company cautioned that the target is conceptual and is not a mineral resource. It plans to begin metallurgical testing in late Q4 2026 to establish project-specific recoveries for copper, nickel, and cobalt.
Earlier in September, Viridian reported its first 2026 assays, including 50.15 meters grading 0.68% CuEq from 1 meter downhole in the extension of hole VKS25-024. That interval included 11.6 meters of 1.28% CuEq.
The fully funded 2026 program began June 9 and was planned as about 50 diamond drill holes to infill between widely spaced holes along the Main Zone, extend earlier intercepts that ended in mineralization, and test new conductor targets. Drilling was expected to continue through the end of October. Viridian also holds the Sedna copper project in Labrador.
Moriarty Says Assays Will Be ‘the Real News'
Bob Moriarty of 321gold.com told Streetwise Reports that Viridian recently announced visual results from its drilling at Kraken.
"The company has two drill rigs turning and expects to continue through the end of October at their high-grade copper, nickel, cobalt Kraken project in Labrador," Moriarty said. He noted that the company is "drilling short" holes "to define a resource."
"The real news will be when the company starts to release assay results near the end of October," he said.
AI and the Grid Are Outrunning Copper Supply
Copper has set records this year. Benchmark copper on the London Metal Exchange hit a record US$14,875 a tonne on September 10, and Comex copper later reached a record US$6.83 per pound, with LME prices up 18% for the year as of late September.
Viridian CEO Tyrell Sutherland has said prices consistently above US$6 per pound reflect "what we believe is a permanent structural shift," Mining Technology reported.
Electricity is the main driver. In its January study Copper in the Age of AI, S&P Global projected global power demand will rise nearly 50% by 2040, and copper demand with it, from 28 million metric tons in 2025 to 42 million metric tons. Demand from AI and data centers, along with defense, is expected to roughly triple, together adding about 4 million metric tons a year.
S&P expects supply to fall 10 million metric tons short by 2040, leaving about 25% of demand unmet, and called the shortfall a "systemic risk for global industries, technological advancement, and economic growth."
New mines won't close that gap quickly. Copper mines that began production between 2020 and 2023 took an average of 17.9 years from discovery, up from 12.7 years for mines starting in 2005 to 2009, S&P found. In Canada, critical minerals mines averaged 27 years in a 2024 S&P study, though the firm said Canadian projects reach production more reliably than U.S. ones.
Streetwise Ownership Overview*
Viridian Metals Inc. (VRDN:CSE;VIRMF:OTCQB)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 02/06/25 | VRDN:TSX.V | 1 | VRDN:CSE | 1 |
| 11/08/24 | CCPC.P:TSX.V | 1 | VRDN:TSX.V | 0.46 |
Ownership and Share Structure1
About 56% of the company is owned by insiders and management, and about 17% by institutions. The rest is retail.
Its market cap is CA$45.18 million with 57.93 million shares outstanding. It trades in a 52-week range of CA$0.33 and CA$1.01.
Common Questions from Investors
What did Viridian's October 2 step-out drilling show? All eight successfully drilled holes along about 3 kilometers of southern Kraken Main intersected visually identified patchy net-textured and semi-massive sulfides, with the widest interval reaching 47.3 meters. The results are visual only, and assays are pending.
When are assay results expected? Viridian expects assays from the southern step-out holes before the end of October.
What is the exploration target at Kraken Main? On September 15, Viridian announced an initial exploration target of 41 million to 61 million tonnes grading 0.35% to 0.52% CuEq. It is based on drilling completed before the 2026 program and is conceptual, not a mineral resource.
How does the new drilling compare with previous work? The southern 3 kilometers of Kraken Main were previously represented by only two partially analyzed holes more than a kilometer apart, plus a 2023 hole at its southern end. The new holes hit sulfides at an average spacing of about 400 meters.
What does DTC eligibility mean for U.S. investors? Viridian's shares can now be cleared and settled electronically through the Depository Trust Co., which the company said should make them easier to trade and improve liquidity in the U.S., where they trade on the OTCQB under VIRMF.
Why is copper demand expected to outpace supply? S&P Global projects copper demand will rise 50% to 42 million metric tons by 2040 as electricity use grows, with AI, data centers, and defense among the fastest-growing sources. New mines are slow to come online, averaging 17.9 years from discovery to production for those that started between 2020 and 2023.
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Important Disclosures:
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
