A Company We Liked at $0.88 in 2024 & Love at $1.50 So Far This Year

ATEX Resources: Building Chile's Next Major Copper Discovery

For investors seeking exposure to large-scale copper-gold discoveries, ATEX Resources presents a compelling investment opportunity that combines strategic location, scale potential, and strong technical backing. The company's Valeriano project, situated in Chile's proven mining jurisdiction between the prolific Maricunga and El Indio belts, already boasts a significant resource of 1.41 billion tonnes with substantial expansion potential. Recent high-grade discoveries, including some of the best copper-gold intercepts seen in Chile in recent years, suggest possibilities for optimized early-stage development through a potential high-grade starter operation.

Strategic Investment and Market Position

The transformation of ATEX in 2024 was marked by a pivotal C$55 million strategic investment from Agnico Eagle, securing approximately 12% ownership with anti-dilution rights. This investment not only strengthened the company's balance sheet but also provided crucial validation from one of the world's premier mining companies. Agnico Eagle's extensive due diligence process and decision to invest speaks volumes about the project's potential. The achievement of 100% ownership of Valeriano in December 2024, ahead of schedule, further streamlined the project's development pathway, giving ATEX full control over future decisions. This consolidated ownership structure eliminates joint venture complications and allows for more efficient decision-making in project advancement.

Resource Potential and Technical Success

The Phase IV drilling program revealed the true scale and grade potential of Valeriano, with standout results including hole ATXD23A intersecting 152 meters at 2.03% copper equivalent and ATXD26 returning 68 meters at 2.02% copper equivalent. These results demonstrated both continuation of high-grade mineralization and the discovery of a new high-grade breccia system that could significantly enhance project economics. The program expanded the known mineralized footprint to over 1.2 kilometers along strike, with the system remaining open in multiple directions. The current resource includes impressive contained metals of 15.5 billion pounds copper and 9.0 million ounces gold, along with significant molybdenum and silver credits. Importantly, the resource remains open for expansion in multiple directions, suggesting potential for significant growth in future resource updates.

Recent metallurgical testing has exceeded expectations, with copper recoveries up to 95% and gold recoveries up to 97% achievable at coarser grinding than initially anticipated. This breakthrough could have significant implications for future capital and operating costs, as coarser grinding typically requires less energy and simpler processing circuits. The production of clean concentrate containing minimal deleterious elements suggests potential for premium pricing and wide marketability to global smelters. The possibility of separate molybdenum concentrate production adds another valuable dimension to the project's economics, particularly given current strong molybdenum prices. These technical achievements position Valeriano favorably compared to other large-scale copper-gold projects in South America.

2025 Outlook and Operational Plans

ATEX has launched its most ambitious program to date with Phase V, deploying five drill rigs targeting 20,000 meters of directional diamond drilling. The program, fully funded following the Agnico Eagle investment, represents a systematic approach to resource growth and upgrade. Current drilling focuses on both expanding the high-grade zones and testing the broader system's extent. The company plans to publish an updated mineral resource estimate in the second half of 2025, which could be a significant catalyst for market revaluation. The use of directional drilling technology allows for more efficient and precise targeting, potentially accelerating the resource definition process.

The company has established itself as an ESG leader among junior miners, with 31% women in its workforce and 48% local employment from the Huasco Province. These metrics significantly exceed industry averages and demonstrate ATEX's commitment to diversity and local development. The company's comprehensive environmental monitoring programs include air quality stations, water monitoring, and waste management initiatives. Community engagement programs, such as the PreparATEX professional development initiative, provide tangible benefits to local communities. The company has also invested in infrastructure improvements, including internet connectivity for local communities, demonstrating a long-term commitment to sustainable development in the region.

Investment Considerations and Market Context

While ATEX's current market capitalization of C$552M appears modest compared to similar-stage copper discoveries in South America like Filo Mining (>C$4B) and NGEx Minerals (C$2.7B), investors should consider standard industry risks including commodity price volatility, geopolitical factors, and technical challenges inherent in large-scale mining projects. However, the company's strong balance sheet, showing C$55M in cash, provides runway for extensive development work without immediate dilution pressure. The project's location in Chile, a top-tier mining jurisdiction with well-established infrastructure and clear permitting processes, reduces many common development risks. The combination of demonstrated high-grade potential, strategic backing from Agnico Eagle, and significant resource upside suggests substantial potential for value creation as the company progresses through 2025. With copper prices forecast to remain strong due to growing demand from renewable energy and electric vehicle sectors, ATEX appears well-positioned to benefit from favorable market conditions while advancing one of the world's most promising new copper-gold discoveries.