Aldebaran Resources - Advancing a Major Copper Discovery in Argentina

• Aldebaran Resources is a junior exploration company exploring the large altar copper project in Argentina
• Altar has an existing resource of almost 1.2 billion tons at 0.43% copper with potential to expand
• The company is earning an 80% interest from Sibanye-Stillwater and aims to de-risk the project to pre-feasibility
• Aldebaran is investigating new heap leach processing technology with Rio Tinto to reduce capital costs and environmental impact
• An updated resource is expected in late 2024 followed by a preliminary economic assessment in H1 2025

About Aldebaran Resources

Aldebaran Resources presents a compelling copper investment opportunity with its flagship Altar project, located in the San Juan Province Argentina. As the world transitions to a greener economy, demand for copper is expected to surge, creating a looming supply gap. Aldebaran is well-positioned to help fill this gap by advancing Altar, already a large copper deposit, and potentially attracting a major mining company to acquire the project.

Aldebaran is a mineral exploration company that was formed in 2018 as a spin-out from Regulus Resources Inc. The two companies share the same core management team with a track record of success in the exploration industry.

The Company holds a 60% interest in the Altar project and has the option to earn an additional 20% by investing a further US$25 million over the next three years.

The Altar project is situated within a cluster of world-class porphyry copper deposits, including Los Pelambres (owned by Antofagasta Minerals), El Pachón (owned by Glencore), and Los Azules (owned by McEwen Copper). This highlights the prospectivity of the region for large-scale copper-gold deposits.

Altar itself hosts multiple known porphyry copper-gold deposits, with significant potential for additional discoveries. In March 2021, Aldebaran announced an updated mineral resource estimate for the project, which underscored its size and grade.

With its experienced management team, strategic land position, and promising exploration results to date, Aldebaran is well-positioned to unlock the value of the Altar project and potentially make new discoveries in this world-class copper district.

Interview with Chief Executive Officer, John Black

Massive Altar Copper Project

In 2018, Aldebaran entered into a joint venture and option agreement with Sibanye-Stillwater to earn up to 80% interest in the Altar project. In 2023, Albebaran completed it's US$30 miilion of expenditures on Altar, and earned in 60% interest. The Company has committed to earn in an additional 20% by spending an additional US$25 million over a three-year period following the initial earn-in.

Altar already hosts a large resource of almost 1.2 billion tonnes grading 0.43% copper in the measured and indicated categories. However, Aldebaran sees potential to expand the resource and find higher grades through additional drilling.

The company's exploration has already resulted in the discovery of a new zone called Altar United which connects two previously separate zones into one larger system. A 20,000 meter drill program was recently completed with numerous holes pending release.

"We anticipate [the updated resource] will be a very sizable increase," notes CEO John Black. "Within that, there are zones of higher grade. Some of those deeper zones do open the potential for underground block cave mining."

The updated resource, expected around November 2024, will form the basis for a preliminary economic assessment (PEA) in H1 2025, the first detailed look at project economics.

Experienced Team Aligned with Shareholders

Aldebaran is led by CEO John Black and an experienced management team with a track record of discovering and selling major copper projects. The company's strategy is to identify projects with the potential to host very large copper deposits, acquire them when the market is down, drill them out to de-risk through pre-feasibility, and then present the project to major mining companies for acquisition.

Aldebaran's share structure aligns management with investors, with strategic shareholders like Sibanye-Stillwater, South32 and Route One owning significant stakes. Only about 20% of shares are held by retail investors. This tight structure has helped the stock outperform peers during challenging markets.

"We've been fortunate to have those strategic investors come in," says Black. "Many of our shareholders are aligned. They've seen that we've made a discovery and drilled it out and sold to a major miner before, and they've benefited from that."

Pioneering Low-Cost, Eco-Friendly Processing

To improve Altar's economics and ESG profile, Aldebaran has partnered with Rio Tinto's Nuton division to explore processing the ore using proprietary heap leach technology. Heap leaching of copper is common for near-surface oxide ores but has not been viable for deeper sulfide mineralization, which requires energy and water-intensive flotation processing.

Rio Tinto believes it has "cracked the nut" to heap leach sulfide ores which could be a game-changer for the industry by enabling lower-cost and greener processing. Altar material is being tested and if successful, could allow a staged, lower-capex development utilizing heap leaching instead of building a large concentrator on site.

"It uses significantly less water, perhaps only a third as much as conventional milling, and a lot less energy to produce a pound of copper," explains Black. "We don't need that technology to work to make the project go forward, but it could really open the project up and make it much more attractive."

Positive Political Developments

Argentina has not always been viewed as a favorable mining jurisdiction, but Aldebaran management sees positive developments under the pro-businessadministration. M is making tough economic decisions to attract foreign investment in industries like mining which is well supported by the Argentina public.

Neighboring San Juan province, where Altar is located, is very supportive of mining with over 65 drill rigs active in the area. The government has streamlined permitting and allowed Aldebaran to import specialized equipment to accelerate drilling. Altar is shaping up to be one of the most active copper exploration projects globally.

The Copper Super-Cycle

Aldebaran is advancing Altar at an ideal time in the copper cycle. Copper prices have broken out above $4.50/lb, their highest levels in a decade, as demand growth is outpacing supply. Ambitious global carbon reduction goals and widespread electrification of vehicles is expected to require massive amounts of copper, more than has been mined throughout history.

"I think we're really hitting the sweet spot," affirms Black. "It's time for us to move very quickly on the project... We can make a discovery like this, we can have a fantastic project, but if the copper prices are down, chances are we won't attract someone to acquire it from us."

Copper Industry M&A

This environment of higher copper prices is already sparking a wave of M&A in the copper industry. Major miners are acquiring production to boost output and junior developers with advanced projects. Over the next year, Aldebaran aims to complete key de-risking milestones at Altar to position it as an attractive takeover target.

"[Major miners] slash their exploration, they don't buy things, that's when they should be buying juniors, when the price is down," says Black. "Since 2012 until now there have been very few projects acquired by majors at this stage, but I think that's about to change... those assets will become less attractive. We'll see if BHP manages to get Anglo, or who else enters into that fray. That may be one of the last big [deals]."

Conclusion

In conclusion, Aldebaran Resources offers investors leveraged exposure to rising copper prices and accelerating M&A in the sector. The company's experienced team, major strategic backers, and vast Altar copper project in Argentina make it a compelling investment proposition. Positive developments in Argentina's mining policies and the potential use of innovative heap leach technology could further enhance the project's appeal. With an updated resource and PEA on the horizon, Aldebaran is entering a catalyst-rich period that could attract the attention of larger miners and create significant shareholder value.

The Investment Thesis for Aldebaran Resources

• Exposure to rising copper prices as electrification drives demand
• 1.2 Bt at 0.43% Cu resource with expansion/grade improvement potential
• Investigating heap leach processing to reduce capex and environmental impact
• Key de-risking catalysts approaching: updated resource in Q4 2024, PEA in H1 2025
• Strategic backers and tight share structure limit downside
• Argentina mining policy improvements could re-rate valuation
• Experienced team with track record of exploration success and project sales
• Potential takeout target as copper industry M&A accelerates

Macro Thematic Analysis

The global energy transition is driving unprecedented copper demand that is expected to outstrip supply in the coming years, creating a compelling investment opportunity in copper-focused equities.

As countries aggressively pursue decarbonization goals and electrify transportation, massive amounts of copper will be required for renewable energy infrastructure and electric vehicles. Estimates suggest the world could consume more copper in the next 20 years than all prior human history. Ambitious goals of reaching net zero carbon emissions by 2050 will require increasing global copper production by over 3% per year, a daunting challenge for an industry already struggling to maintain output.

This looming copper supply gap is expected to support strong copper prices and incentivize a wave of M&A as major miners scour the globe for new deposits. The industry saw over $15 billion in copper deals in 2022 alone.

However, as Aldebaran CEO John Black notes, "[M&A] doesn't make new copper, it just changes ownership. As an industry, we need to start putting some new projects online."

This macro backdrop creates a favorable environment for junior explorers and developers like Aldebaran who can help the industry meet growing demand. The company's Altar project in Argentina is one of the largest undeveloped copper resources globally with potential to support a long-life, low-cost mine. As Aldebaran delivers key de-risking catalysts in the coming year, it is well-positioned to attract a major miner looking to secure future copper supply.