Aldebaran Resources: Unearthing a Monster 30 Billion Pound Copper Resource in Argentina

• Aldebaran Resources has increased the measured and indicated (M&I) copper resource at its Altar project in Argentina by 100% to 22 billion pounds and inferred by over 500% to 9.8 billion pounds in its latest estimate
• The company is focused on moving the project to a preliminary economic assessment (PEA) by Q2 2025 and pre-feasibility study (PFS) by end of 2026
• Rio Tinto, through its venture Nuton LLC, is earning into the project through a $250M option agreement which could see it acquire 20% of the project
• Test work is underway on novel copper leaching technology which could unlock the large hypogene (sulfide) resource and provide technical, economic and ESG benefits over a traditional concentrator approach
• Aldebaran is drilling to provide samples for the next phase of test work as well as geotechnical, hydrological and infill drilling to support the PEA and PFS

Copper is a critical metal for the global energy transition, with demand expected to soar in the coming years driven by renewable energy infrastructure, electric vehicles and the electrification of industry and households. However, the world is facing a looming supply deficit, with a lack of new mines being developed to meet this demand. In this context, Aldebaran Resources (TSX-V: ALDE) presents a great opportunity, with its massive Altar copper-gold project in San Juan, Argentina.

A Rapidly Growing Resource Base 

Aldebaran has just announced a major increase in the mineral resource estimate for Altar. The measured and indicated resource now stands at approximately 22 billion pounds of copper. On top of this, the inferred resource has grown by more than 500% to 1.2 billion tonnes at similar grades, containing an additional 9.8 billion pounds of copper. This brings the total contained copper at Altar to over 30 billion pounds, putting it among the largest undeveloped copper projects in the world.

Dr. Kevin B. Heather, Chief Geological Officer of Aldebaran, emphasized the scale of the resource in a recent interview, stating:

We're clearly within probably the top five undeveloped copper-gold projects in the world that are in the hands of a junior company...You're looking at an ore body now just with copper, not copper equivalent, of well over 30 billion pounds of copper. To put that into some context for people, major companies typically want to see projects that reach the 10 billion pound threshold.

Advancing to PEA and PFS

With this huge resource base now established, Aldebaran is focused on rapidly advancing the project through the study phases. The immediate priority is delivering a Preliminary Economic Assessment (PEA) by Q2 2025.

Dr. Heather explained why the company is well-positioned to complete the PEA on this timeline:

One of the real advantages of this project is that because we have a significant amount of the resource in the M&I category, it means that we can move through the PEA pretty quickly...There's a lot of things that maybe many investors don't think about, but there's things like the geotechnical work, environmental work, water balance work – all of those things from a PEA level study, we're good on all of those fronts. So we don't have to do – we've got all the data in hand frankly to go to a PEA tomorrow.

Following the PEA, Aldebaran plans to complete a Pre-Feasibility Study (PFS) by the end of 2026. In parallel, it will be conducting infill drilling to upgrade inferred resources to M&I and drilling for geotechnical and hydrological data to support the PFS.

Interview with Chief Geological Officer Dr. Kevin B. Heather

Nuton Partnership – A Potential Game Changer 

One of the most exciting aspects of the Altar story is the involvement of mining major Rio Tinto through its subsidiary Nuton LLC. Rio Tinto has recently signed an option agreement to acquire up to 20% of the Altar project by spending $250 million. Upon the completion of certain milestones, Rio Tinto would pay $250 million directly to Aldebaran.

Test Work and Pre-Feasibility Study is already underway to assess the amenability of Altar's ores. Small one-meter columns have been set up and an initial assessment will soon be complete. Aldebaran and Rio Tinto are proceeding on the assumption that this test work will be positive and are already gearing up for the next phase.

Drilling has commenced to collect material for larger 10-meter columns that will simulate a full heap leach. This will provide key inputs for the PFS. Dr. Heather noted the importance of this drilling campaign:

We have four rigs turning, drilling large diameter core in order to get sample to put into large Phase 2, 10-meter high columns for testwork. And I don't think we would be doing that if we saw anything, or more importantly, if Rio Tinto Nuton saw anything in the mineralogy of the ore and the rocks that might be problematic.

While partnership with Nuton presents an exciting upside case, Aldebaran is wisely not putting all its eggs in one basket. The PEA will include trade-off studies between a Nuton-only heap leach case and a traditional flotation concentrator option.

The Copper Market Backdrop 

The world is going to need a lot more copper in the coming years to support the energy transition. Electric vehicles, renewable energy infrastructure, and the electrification of industry and households will all drive significant demand growth. At the same time, the pipeline of new copper supply is thin, with a lack of new discoveries and projects moving through development.

This supply deficit is expected to emerge in the second half of this decade and grow steadily larger through the 2030s. Higher copper prices will be needed to incentivize new supply. It's against this backdrop that Altar's value proposition is so compelling.

With over 30 billion pounds of contained copper, Altar is one of the very few projects with the scale to make a meaningful difference to global supply. Its location in San Juan, Argentina is favorable, with a supportive local government and a long history of mining. The involvement of Rio Tinto could be the X-factor that really sets Altar apart.

The Investment Thesis for Aldebaran Resources:

• Exposure to one of the world's largest undeveloped copper projects, with over 30 billion pounds of contained copper in a Tier 1 jurisdiction
• The 100% increase in measured and indicated copper resources and over 500% increase in inferred copper resources in the latest estimate demonstrate significant growth potential
• Near-term catalysts include the completion of a PEA by Q2 2025 and PFS by end of 2026, which will provide a first look at project economics and further de-risk the project
• Rio Tinto's involvement and the potential application of its proprietary leaching technology could be a game-changer, unlocking the bulk of the resource and enhancing economics
• Compelling macro backdrop with the world facing a looming copper supply deficit as demand soars due to electrification and the energy transition
• Proven management team with a track record of success, including the previous sale of Antares Minerals for $650M
• Attractive current valuation with significant re-rating potential as the project is de-risked and advanced through the study phases
• Consider building a position ahead of key catalysts including the completion of Nuton test work, delivery of the PEA in Q2 2025, and ongoing drill results

Macro Thematic Analysis:

The global energy transition is driving a structural shift in the demand for copper. However, the world is facing a significant copper supply deficit in the coming years. The current project pipeline is insufficient to meet projected demand growth, with a lack of new discoveries and development-stage projects. This deficit is expected to emerge in the second half of the 2020s and grow larger through the 2030s.

Against this backdrop, the value proposition of large, scalable copper projects like Aldebaran's Altar is compelling. With over 30 billion pounds of contained copper, Altar is one of the few projects globally with the potential to move the needle on supply.

The role of technology and innovation in meeting this supply challenge cannot be understated. Rio Tinto's leaching technology, which is being tested at Altar, is a prime example. If successful, it could unlock the bulk of Altar's resource base and significantly enhance project economics, while also reducing water use and carbon emissions compared to traditional processing methods.

Projects like Altar will be critical to meeting the world's growing copper needs and enabling the energy transition. Aldebaran Resources is at the forefront of this opportunity.