Exploring Chile
January 2020
Exploring Chile January 2020 TSXV: ATX Forward Looking Statements - - PowerPoint PPT Presentation
Exploring Chile January 2020 TSXV: ATX Forward Looking Statements & QP Statement FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements
January 2020
TSXV: ATX
Exploring Chile / 2
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to: the success of exploration activities; mine development prospects; and, potential for future metals production. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “planning”, “expects” or “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”, “anticipates”, “does not anticipate”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements in this news release including statements regarding the acquisition of the Valeriano and Apolo property, the receipt
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, changes in economic parameters and assumptions, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; the results of regulatory and permitting processes; future metals price; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; the results of economic and technical studies, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in ATEX’s publicly filed documents. Although ATEX has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or
materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. NI 43-101 QUALIFIED PERSON STATEMENT The scientific and technical information in this presentation has been reviewed and approved by David R. Hopper, a Qualified Person as defined by National Instrument 43-101 Standards for Disclosure for Mineral Projects. As the Chilean Exploration Manager during Hochschild’s exploration campaigns at the Valeriano project, Mr. Hopper, confirms the veracity of the Hochschild Valeriano data, based upon his person knowledge of the work undertaken and procedures used. David Hopper is a Chartered Geologist of the Geological Society of London, Fellow
Chile and is independent of ATEX within the meaning of NI 43-101.
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sold to Rio2 in 2018
sold to Hochschild in 2012
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Carl Hansen, CEO & Director (8.9% ownership interest)
Geologist with over 30 years of experience in the mining and exploration industry Previously co‐founder and CEO of Andina Minerals Inc. and Atacama Pacific Gold Corporation, successful Chilean‐focused precious metals explorers which were acquired by Rio2 and Hochschild, respectively. Held senior operational and corporate positions with TVX Gold Inc. including Chief Geologist, New Britannia Mine, Exploration Manager, Americas, Exploration Manager, Czech Republic.
Thomas Pladsen, CFO & Director (8.9% ownership interest)
Finance professional with 30 years of experience as a senior manager or director with public companies. Previously served as CFO of several public companies including Atacama Pacific Gold Corporation, Katanga Mining Limited, Andina Minerals Inc. and Merc International Minerals, Inc.
Geologist with 40 years’ experience in the mining and mineral exploration industry. Previously the Chairman and co‐founder of Atacama Pacific Gold, general manager and co‐ founder of Andina Minerals Inc. and Senior VP of Exploration, TVX Gold. Instrumental in the discovery of the Cerro Maricunga, Volcan and Salares Norte deposits as well as led the teams outlining the Asacha and Zolotoe deposits in Russia, Kasperske Hory deposit in the Czech Republic, and the Skouries deposit in Greece.
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Robert Suttie, Audit Committee Chairman
Services Inc. with over 20 years’ experience in corporate accounting and financial disclosure.
number of public listed companies. William Jung (2.5% ownership)
companies.
the University of BC & received his Chartered Accountant designation with Arthur Andersen & Co. Jeff Palmer (3.1% ownership)
business management fields.
currently President, Garland Palmer Business Mgmt.
Accountants. Hans Rasmussen (1% ownership)
exploration business & currently, Senior Vice President of Exploration with Coeur Mining.
exploration companies.
Morro & Johanna in Chile, & Choco 10 in Venezuela.
Minerals, Hochschild Mining, Metallica Resources.
Antonio Ortuzar V. (0.5% ownership)
Santiago.
field” to “brown field”, including acquisition, permitting, financing, exploitation, operation and closing. Kevin MacLean, CFA, P.Eng.
investment team at Sentry Investments.
mind in the gold mining sector.
V.P. Exploration for TVX Gold and a for numerous companies including Andina Minerals, Antofagasta, TVX Normandy Americas, Newmont Mining, Kinross Gold and Gold Fields.
* Includes C. Hansen, CEO & T. Pladsen, CFO
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Shares Outstanding:
Warrants ($0.20):
Options ($0.25):
Fully Diluted:
Trading Price:
Market Cap. (undiluted):
Friends and Family 40% Insiders 25% Retail 23% Advisory Committee 12%
property reviews and acquisitions
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Santiago Copiapo
mining industry provides a pipeline of quality exploration projects
projects
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NuevaUnion Project
Newmont Goldcorp / Teck
9 M oz Au & 18 B lb Cu 577 Mt @ 0.48 g/t Au (P&P) 2,014 Mt @ 0.40% Cu (P&P)
El Encierro Project
Antofagasta / Barrick
ATEX Resources Inc.
Chollay Project
Barrick
Pascua‐Lama Project
Barrick
21 M oz Au & 730 M oz Ag (M&I) 435 Mt @ 1.5 g/t Au & 53 g/t Ag
Veladero Mine
Barrick / Shandong
7.6 M oz Au (P&P + M&I) 355 Mt @ 0.68 g/t Au
Taguas Project
Orvana
0.5 M oz Au / 18 M oz Ag (inferred) 38.6 Mt @ 0.51 g/t Au Eq.
3,795 hectares located in the El Indio Mineral Belt
Antofagasta and others actively exploring
immediate area Mineral rights have been controlled by SCM Valleno, a local Chilean firm, since 1986 Historical drilling established two styles of mineralization at Valeriano
36 ppm Mo (0.73% Cu eq) (VAL13-14)
Road accessible and drill ready
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extending from Valeriano northward
Cu/Au property
volcanics and volcanoclastics intruded by breccias, diorite dikes and a mineralized granodiorite porphyry
epithermal Au mineralization
intersected a Cu/Au/Mo porphyry system beneath a sequence of altered and mineralised host rocks
earned a 51% interest from Barrick by spending US$25 million and completing a PEA by January 2020.
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1986 SCM Valleno Jozsef Ambrus stakes Valeriano property 1988 Rayrock Geological mapping and surface sampling 1989 – 1991 Phelps Dodge Drilled 6,403 m (9 DDH & 18 RC) targeting shallow Cu - Au 1995 – 1997 Barrick Mapping, sampling, geophysics (mag & IP) & drilled 6,175 m (20 RC) 1998 – 2009 No major exploration programs 2010 – 2014 Hochschild Systematic exploration campaign with 14,270 m (16 DDH) drilled Season 1: 8 holes from 400- 800 m deep – identified phyllic alteration and B-veins Season 2: 5 holes from 800-1,200 m deep – identified stockwork A & B-veins – chalcopyrite, pyrite, pyrite-enargite-covellite Season 3: 3 holes from 1,540 to 1,878 m deep – 2 holes cut a potassic-altered granodiorite Cu-Au porphyry – A, B, BBV-veins – chalcopyrite-bornite Option terminated due to poor market conditions
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Copper gold molybdenum porphyry mineralization cut by three diamond drill holes
granodiorite porphyry
altered breccias immediately adjacent to the granodiorite
above the granodiorite are strongly mineralized, +0.5% Cu eq.
Near surface high-sulphidation epithermal gold
porphyry mineralization
volcanics.
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0.4 Cu eq. cut off
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Historical Hochschild Drilling (2012/13) with Copper Gold Porphyry Intersections Highlighted Hole # From To Length Cu Au Mo Cu Eq. Rock Type
(metres) (metres) (metres) (%) (g/t) (ppm) (%)
VAL12-09 668 742 74 0.37 0.18 186 0.59 rhyolite & diorite porphyry 900 1,748 848 0.47 0.16 89 0.64 breccias & diorite VAL13-14 614 1,808 1,194 0.52 0.24 36 0.73 multiple lithologies comprising 614 1,170 556 0.45 0.20 44 0.63 rhyolite & diorite porphyry including 1,170 1,704 534 0.61 0.29 36 0.86 granodiorite porphyry including 1,288 1,704 416 0.67 0.32 31 0.94 granodiorite porphyry and 1,596 1,670 74 0.85 0.41 13 1.19 granodiorite porphyry and 1,704 1,808 104 0.37 0.20 3 0.53 inter-mineral porphyry VAL13-16 270 446 176 0.24 0.28 121 0.52 rhyolite & diorite porphyry 476 520 44 0.37 0.19 70 0.55 rhyolite & diorite porphyry 576 1620.8 1,044.8 0.39 0.17 54 0.54 multiple lithologies including 1214 1620.8 406.8 0.46 0.17 61 0.62 granodiorite porphyry
NOTES
discrepancies may exist due to rounding. Metal recoveries were not considered.
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DDH VALDD13-014 @ 1,457 m Potassic altered granodiorite: 0.75% Cu & 0.33 g/t Au (1.03% Cu eq.) chalcopyrite veinlets hematite-magnetite veinlets potassic alteration: k-feldspar, biotite with hematite-magnetite. disseminated pyrite quartz-chalcopyrite- molybdenite veinlets DDH VALDD13-014 @ 1,712 m Potassic altered granodiorite: 0.74% Cu & 0.73 g/t Au (1.34% Cu eq.) bornite replacing chalcopyrite potassic alteration: k-feldspar, biotite. quartz-chalcopyrite veinlets A-type quartz veins
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VAL12‐09, VAL13‐14 & VAL13‐16 collared 150 m, 250 m and 250 m sound of Section 6779750 N
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Granodiorite
pyrite halo? pyrite halo?
Granodiorite
Resistivity Chargeability
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Quartz-chalcopyrite-bornite veinlets
NOTE: The location and nature of the access shown are speculative in nature and no engineering has been undertaken to assess their technical or economic viability
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Santiago Copiapo
Cash ATEX Units6 Work Commitments Interest Earned
On Signing
(Aug 29, 2019)
$350,000
$300,000 1 1.0 million 2,3 Nil Aug 2021 $250,000 1.0 million 3 Aug 2022 $3,500,000 4 $10,000,000 49% Aug 2023 Nil Nil Nil
$8,000,000 5 Nil $5,000,000 100%
Totals $12,400,000 $15,000,000 100%
1. Payment of $300,000 may be delayed until the commencement of drilling activities. 2. The issuance of the Year 1 Units may be delayed until the commencement of drilling activities. 3. The issuance of Units will be delayed if their issuance results in the creation of an insider until such time as the issuance does not create an insider. 4. 50% of the payment may be made in shares of ATEX at the option of the Company. 5. 50% of the payment may be made in shares of ATEX at the option of SCM Vallero.
6. Units comprise 1 share and 1 full warrant exercisable at a price of $0.40 over a period of 4 years
The Valeriano property is subject to a net smelter royalty of 2.5%
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Maricunga Mineral Belt
Salares Norte development project
geological and alteration (PIMA) mapping
drilling
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Legend
3.5 to 19.5 ppb Au 1.6 to 3.5 ppb Au 1.0 to 1.6 ppb Au Volcanic domes Structural lineaments
Roma Property – Soil Geochem
2.5 km property boundary
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pathfinder element anomalies – As (898 ppm), Bi (86.7 ppm), Hg (82.7 ppm), Te (15.2 ppm)
steam‐heated alteration
preserving much of the hydrothermal system.
volcanic dome with 211 ppb Au Roma south area looking NE
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3.5 to 14 ppb Au 1.6 to 3.5 ppb Au 1.2 to 1.6 ppb Au Volcanic domes Structural lineaments
property boundary areas of sampling 2.0 km
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Alicia Property – Soil Geochem
anomalies incl. As (517 ppm), Bi (97.4 ppm), Te (12.2 ppm)
partially to largely concealed by fresh to weakly alterated volcanics.
heated alteration
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Santiago Copiapo
Cash Drilling Commitments Interest Earned
On Signing
(July 18, 2019)
$145,000 Year 1 $85,000 3,000 m
$85,000 5,000 m
$85,000 5,000 m
$7,200,000 N/A 100% Totals $7,600,000 13,000 m 100%
All figures are in US$
Apolo Concessions are subject to a total net smelter royalty of 2.0%
ATEX may purchase 3/8th of the 2% NSR (net 0.75%) for US$6 million for a period of 1 year from the date on which the first of the feasibility studies has been completed.
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22,000 23,000 24,000 25,000 26,000 27,000 28,000 2019 2020 2021 2022 2023 2024
Refined Production Probable Projects (including greenfield and unannounced mine expansion) Thousand Tonnes
“Probable Projects” sufficient to only fill the low range of project demand assuming all projects are developed.
Copper mine supply is limited and project pipeline is weak
Inventories remain low by historic standards
Demand is growing
Currently, pricing is below “incentive” price needed to for companies to commit to new developments further supporting looming copper deficits
NOTE: Demand and projected production figures from TECK Resources public disclosure. July 2019.
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0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 0.00 0.25 0.50 0.75
Contained Cu & Au value Andina Codelco
ATEX VAL13‐14 ‐ entire interval
1,194m @ 0.54% Cu eq. & 0.24 g/t Au
ATEX VAL13‐14 ‐ porphyry interval
534m @ 0.6% Cu eq. & 0.29 g/t Au Resolution Rio Tinto / BHP Golpu Newcrest New Afton New Gold HD North Rio Tinto Cadia East Newcrest KSM Seabridge Heruga ETG Rio Tinto Alpala SolGold Northparke ChinaMoly HD South Rio Tinto Chuquicamata U/G Codelco El Teniente Codelco 5,000 Mt 2,500 Mt 1,000 Mt 500 Mt NOTES: All resources estimate sourced from the latest available respective corporate public disclosure. Resources are inclusive of mineral reserves. Contained metal value calculated at a copper price of $2.60/lb. and a gold price of $1,450/oz. Copper equivalence calculated using copper ($2.60/lb) and molybdenum ($11.00/lb) only, not taking into account metal recoveries. Copper Equivalent = (((Cu grade /100)*Cu price) + ((Mo grade/100)*Mo price)))/Cu price
Copper Equivalent (%) Cu & Mo Gold (g/t)
Comparing Grades ‐ Cu eq.(Cu & Mo) vs Au ‐ and Contained Metal Value
Red Chris Newcrest / Imperial
M&I Resources incl. P&P reserves Contained Metal Value
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Company Project Shares O/S Price Market Cap Resources Cu Au Ag Mo Cu eq. Develop.
C$/share C$ (Mt) % g/t g/t ppm %
Filo Mining Filo del Sol 88,218,451 2.05 $180,847,825 425 1 0.33 0.32 10.7
O/P Josemaria Josemaria 249,868325 0.51 $127,432,846 1,066 2 0.29 0.21 0.92
O/P SolGold Alpala 1,846,321,033 0.40 $738,528,413 1,830 3 0.41 0.31 1.20
U/G Seabridge KSM 63,279,403 17.23 $1,090,304,114 2,977 4 0.21 0.52 2.8 54 0.68 80% U/G Regulus AntaKori 90,994,594 1.20 $109,193,513 250 5 0.48 0.29 7.5
O/P GT Gold Tatogga 116,056,580 1.00 $116,056,580 Pending 6 U/G ? ATEX Valeriano 13,202,595 0.29 $3,828,753
VAL13-014 (1,194 m)
0.52 0.24
0.73
VAL13-014 (534 m)
0.61 0.29
0.86
Note: All share related data sourced from tmxmoney.com, Dec.4, 2019 1. Indicated resource at various cut offs dependent on zones (AuOx @ 0.2 g/t Au, CuAuOx @ 0.15% Cu eq., Ag @ 20 g/t, Sulphide @ 0.3% Cu eq.) – Filo Mining, January 2019 2. Indicated resource at 0.2% Cu eq. cut off – Josemarie Resources, August 2015 3. Indicated resource at 0.2% Cu eq. cut off – SolGold, May 2019 4. Measured and indicated resources @ C$16/t NSR (~0.25% Cu eq.), Seabridge, 2019 5. Indicated resource at 0.3% Cu eq. cut off - Regulus, March 2019 6. Active drill program ongoing. Gold copper porphyry system.
ALL NOTED COPPER EQUIVALENT GRADES CALCULATED USING THE FOLLOWING FORMULA AND PRICING: Cu eq.% = ((Cu%/100 * Cu $/tonne) + (Au g/t * Au $/gr.) + (Mo%/100 * Mo $/tonne) + (Ag g/t * Ag $/gr) / Cu $/tonne Cu @ $2.60/lb; Au @ $1,450/oz; Mo @ $11.00/lb; Ag @ $16.00/oz
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‐ Advanced stage Valeriano Property – Cu/Au/Mo porphyry ‐ Early stage Apolo Project – high sulphidation epithermal gold silver
‐ With a successful track record of discoveries ‐ Supported by a strong board and advisory committee
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