JV Video: Atex touts high‑grade ‘B2B’ at Valeriano

Key Concepts

• Belleraniano Project: A significant undeveloped copper-gold project in Chile owned by AEX Resources.
• Copper Equivalent (CuEq): A metric used to express the combined value of copper and gold in a deposit, calculated by converting the gold grade to its copper equivalent.
• Grade Distribution: The consistency and predictability of metal grades within a mineral deposit.
• Metallurgical Qualities: The characteristics of a mineral deposit that determine how easily and efficiently metals can be extracted.
• Granodiorite and Rhyolite: Geological rock types present at the Belleraniano project, influencing mineral recovery.
• Equigranular Calcite and Bornite: Minerals found in the deposit, facilitating easy recovery.
• Micron Grind: The fineness to which ore is crushed for processing; a finer grind generally requires more energy.
• Sublevel Caving and Open Stoking: Underground mining methods.
• ESG (Environmental, Social, and Governance): A framework for evaluating a company's sustainability and ethical impact.
• Prepper ATEX: A community engagement program by AEX Resources to train local individuals for project-related jobs.
• Telehealth Networks: Healthcare services delivered remotely using telecommunications technology.

AEX Resources' Belleraniano Project: A Major Copper Discovery

AEX Resources is making significant strides with its Belleraniano project in Chile, which the company describes as the biggest copper discovery in the best jurisdiction in over a decade. The project has recently undergone a major resource update, positioning it as one of the most important undeveloped copper projects globally. Ben Pollinger, President and CEO of AEX Resources, discussed the discovery, drilling program, and future plans.

Key Differentiators of the Belleraniano Discovery

Pollinger highlighted several factors that set Belleraniano apart:

• Speed and Efficiency: The project has progressed from a geological curiosity to a world-class deposit in less than four years, an unprecedented pace attributed to the asset's quality and consistent improvement with investment.
• Grade Distribution: The deposit exhibits an exceptionally smooth and consistent grade distribution, making it highly predictable.
• Metallurgical Qualities: The geological setting, with granodiorite intruding into rhyolite, results in equigranular calcite and bornite spread throughout the deposit. This composition allows for easy recovery with minimal energy input.
  • Copper Recovery: Up to 95% of copper can be recovered.
  • Gold Recovery: With a little leaching, up to 94% of gold can be recovered.
  • Grind Size: Crucially, these recovery rates are achievable at a 200-micron grind, indicating efficient processing.

Drilling Program and Expansion Strategy

The drilling program has been instrumental in defining and expanding the Belleraniano project:

• Phase Three: This phase involved 22,000 meters of drilling and established the initial resource estimate of 1.5 billion tons at just under 0.7% copper. This demonstrated the project's significant potential.
• Phases Four and Five: These phases nearly doubled the metal content in the system, increased the average grade, and revealed that the edges of the deposit remain undefined.
• Discovery of B2B Target: The identification of the B2B target is a key development. AEX Resources is leveraging improved data analysis, geophysics, and target identification to explore for additional B2B-style targets.
  • Potential Expansion: The company estimates the potential to discover three to four more B2B-style targets on a specific horizon, which could collectively add 60 to 100 million tons at 1.5% to 2% copper equivalent. This alone would constitute a world-class starter mine.
  • Derisking and Startup Potential: The strategy is to derisk a potential startup by adding more high-quality, high-grade mineralization across this horizon, assessing its economic viability in the coming years.
• B2B Drill Results: The B2B drill results have been particularly high-grade.
  • Current Estimate: The B2B zone is currently estimated at just over 30 million tons at just under 1.5% copper equivalent.
  • Phase Six Target: The first hole of Phase Six is expected to yield results similar to the "23A" hole, with an anticipated 150 to 200 meters at 2% copper equivalent. This would further expand the zone and increase its grade.
  • B2B Target Size: The target for B2B alone is 30 to 50 million tons at 1.5% to 2% copper equivalent.
• Production Outlook: The company aims to define a project with a 10 to 20-year mine life capable of producing 3 to 5 million tons per annum.
• Cost and Margin Analysis:
  • Globally, mining costs range from $30 to $50 per ton.
  • A 2% copper equivalent rock yields over $200 per ton, indicating a substantial margin.

Regional Context and Strategic Land Acquisition

The Belleraniano project is situated in a strategically advantageous region:

• Neighboring Projects:
  • LNC (to the north): An "Antagastaster" project with a similar elevation and grade profile to Belleraniano. Combining these two could create an exceptionally world-class asset.
  • Cadelo (to the north): Currently drilling the "Alterente" deposits.
• Land Expansion: AEX Resources has staked additional land to expand its exploration potential.
• Surface Rights Ownership: The company now owns surface rights over Belleraniano, Alensero, and El Torren. This is expected to:
  • Reduce exploration costs.
  • Generate modest revenue.
  • Provide intrinsic strategic benefits.

Chile as a Jurisdiction

Pollinger expressed strong confidence in Chile as a mining jurisdiction, despite its complexities:

• Geopolitical Stability: In the current global geopolitical climate, Chile is considered a secure location for multi-billion dollar investments, offering security of title.
• Historical Investment: Chile has a 50-year track record of stability. Major mining companies like Tech and BHP have made substantial investments (e.g., BHP's $16 billion into Escondida), indicating confidence in the country's investment climate. This contrasts with the political risks seen in places like Cobra and Panama.
• Government Policy: Chile's long-term outlook is positive, with policy changes aimed at doubling copper production while reducing permitting times by 30% to 70%.
• Infrastructure Development: The Chilean government is facilitating the development of infrastructure to link the Andes to the ocean, encouraging collaborative and consortium-based approaches rather than single-use projects. This framework allows private industry to optimize resource utilization.
• Partnership Approach: AEX Resources emphasizes working for the benefit of the Chilean people and aims to be seen as a good partner.

ESG and Community Engagement

Environmental, Social, and Governance (ESG) considerations are a priority for AEX Resources:

• Early and Often Engagement: Drawing from past experience (e.g., at Rox Gold), Pollinger stressed the importance of early and consistent engagement with stakeholders.
• Community Programs:
  • Prepper ATEX: This program brings local individuals to the project for training as geotechnical assistants, food handlers, and camp service staff.
  • Economic Stream Development: The company is actively working to develop other economic opportunities in the region.
  • Starlink Implementation: AEX Resources has provided Starlink internet access to schools and clinics.
• Impact on Local Communities:
  • Telehealth: In agrarian communities where younger men often work elsewhere, the elderly and young are at risk. The Starlink connection has enabled nurses to establish telehealth networks, significantly improving access to healthcare.
  • Meaningful Difference: Even at the exploration stage, AEX Resources is making a positive impact on the lives of people in the surrounding areas.

Conclusion

AEX Resources' Belleraniano project represents a significant and rapidly advancing copper-gold discovery in Chile. The project's unique geological characteristics, efficient metallurgical properties, and strategic location, combined with a proactive approach to community engagement and a favorable jurisdictional environment, position it as a potentially world-class undeveloped asset poised to contribute to the global demand for copper, particularly in the context of electrification and the AI revolution.