Aldebaran Unlocking Copper Potential in Argentina

• Aldebaran Resources is actively drilling a large copper porphyry deposit in San Juan Province, Argentina, with evidence indicating a significant expansion of the deposit.
• Their latest results show 950 meters at 0.6% copper equivalent. The deposit at Aldebaran's Altar project already boasts around 1.2 billion tons with a grade slightly less than 0.5% copper equivalent.
• A recent deep geophysical survey revealed the potential for more mineralization beneath the currently modeled pit. Recent drilling results are confirming this geophysical data, indicating further mineralization.
• The Altar project predominantly contains copper mineralization, accounting for about 90% of potential revenue. Other metals like gold, silver, and molybdenum are present but in minor quantities.
• Funding and support have been bolstered by strategic investments and the exercise of warrants. Challenges faced include supply chain issues and staffing, but the company remains optimistic about the province's support and future drilling campaigns.

Aldebaran Resources has made progress in unlocking the large-scale copper potential at their wholly-owned Altar project in Argentina's mining-friendly San Juan province. Recent drill results reveal world-class mineralization that could substantially increase the current resource, positioning Altar as one of the premier undeveloped copper assets in the region. For investors, Aldebaran offers exposure to a potentially massive copper discovery in a country opening its doors to foreign mining investment.

Massive Mineralized System Confirmed at Altar

Located in the prolific Andean copper belt alongside mammoth projects like Escondida in Chile, the Altar deposit already hosts a sizeable 1.2 billion tonne resource grading 0.5% copper equivalent. This includes higher confidence measured and indicated resources of 1 billion tonnes.

But recent deep drilling by Aldebaran has changed the storyline on Altar from a modest deposit to part of a much larger mineralized system. Hole ARS-39 intersected an incredible 950 meters at 0.6% copper equivalent from the surface, including a higher grade portion of 645 meters at 0.7% copper equivalent. This hole extended copper mineralization to over 1 kilometer depth, more than doubling the depth of previous drilling.

ARS-39 is the latest in a series of deep holes that define a new zone called Altar United, indicating substantial resource upside below and around the edges of the known deposit. This area was targeted because geophysics showed the mineralization extended significantly beyond what had been modelled. The geophysics are clearly on point, evidenced by these long drill intersections packed full of copper.

Aldebaran Resources, CEO John Black stated these latest results provide “very good evidence [Altar’s] about to get significantly larger as we continue to drill.” Four rigs continue to turn at Altar, further delineating this expanding mineralized system.

Major Copper Asset with Exploration Blue Sky

With these exceptional drill holes defining copper mineralization over an area measuring 2 kilometers long by 1 kilometer wide, Altar already rivals other major copper projects in South America. But the mineralization is open in multiple directions laterally and at depth, providing tremendous exploration upside.

A recently completed 20,000 meter drill program focused mainly on defining new mineralization within the top 500 meters below the known deposit. Most holes never reached the depth of the original discovery holes that intersected copper 400-800 meters below the surface. This points to substantial room for growth at depth.

Aldebaran is also discovering additional mineralized zones to the east and west of the main deposit, again highlighting the scale of the mineralized system. As drilling progresses, the company expects to significantly expand the current resource and continue outlining new zones of copper mineralization.

Ideal Location in San Juan’s Copper Belt

The Altar project sits in an ideal location within San Juan’s emerging copper belt. The province is home to several major copper exploration projects, but Altar stands out with its already large defined resource with clear expansion potential. Infrastructure in the mining-focused province is excellent, and Aldebaran requires no private land agreements thanks to its location on publicly owned land.

But arguably the project’s most important attribute is its location within San Juan province. The local government strongly supports responsible mining development through fair and efficient permitting processes and favorable business policies. This mining-friendly jurisdiction provides the ideal environment for resource definition and fast-tracking Altar to potential development.

Argentina Embracing Mining Investment

Historically Argentina has not had the most welcoming environment for foreign mining investment. But the country’s attitude toward the industry has changed significantly in recent years. Argentina is now actively encouraging foreign investment across the mining sector to help drive economic growth. The government realizes the nation is blessed with world-class mineral deposits that, if developed, could aid significantly in getting the economy back on track.

This shift is evidenced by global mining giants like BHP, Rio Tinto and South32 making strategic investments in Argentine mining projects. These mining leaders would not deploy capital if country risk was still exceedingly high. Their investments validate that Argentina has become an increasingly attractive jurisdiction for mining.

Aldebaran’s largest shareholder, Australia’s South32, maintains a 9.9% stake in the company, underscoring their view on both the Altar project itself and Argentina’s improving mining policies. South32 upsized its stake earlier this year as Aldebaran was announcing promising drill results.

Funded for Aggressive Drilling in 2023

Thanks to recent warrant exercises, Aldebaran is well funded with over $7 million in the treasury to continue advancing Altar. The company plans to drill up to 20,000 meters this year once the winter season passes in September. Additional mineralization defined from this program will be incorporated into a new resource estimate for Altar expected in 2023.

Major shareholders may also help fund future exploration. Strategic investors currently own approximately 75% of Aldebaran’s shares, including South 32, Stillwater Mining, and the Lundin Group. While this does limit public float, it provides backing to raise capital while minimizing dilution. The company’s strong technical team and strategic shareholders position Aldebaran well to continue unlocking Altar’s immense copper potential.

The Opportunity for Investors

Aldebaran Resources offers investors a compelling opportunity to gain exposure to a large-scale copper discovery in an up-and-coming South American mining destination. Further drill results expected over the coming year could define a world-class copper deposit to rival the size of more established copper mines in the region. The investment rationale includes:

• Massive copper mineralized system confirmed and further expanded with upcoming drill programs
• Excellent infrastructure in a proven mining province
• Increasingly mining-friendly jurisdiction in Argentina
• Strategic shareholders provide backing and validation
• Funded for aggressive exploration and resource expansion

With copper demand growing thanks to electrification and declining head grades hampering supply growth, major new copper districts will be needed over the coming decade. The drill bit is proving that San Juan province boasts genuine tier-one copper potential. Aldebaran controls a prime land package in this emerging copper-rich region and has already outlined a substantial deposit with clear growth vectors.

Savvy investors recognize the opportunity to get in early with exceptional exploration plays in new mining districts, thereby realizing the greatest upside. For those seeking copper exposure combined with big discovery potential, Aldebaran Resources warrants attention.

The Investment Thesis for Aldebaran Resources

Strong Economics: The Altar project already hosts a sizable copper resource that could support an economically robust mining operation. Recent drill results indicate the potential to substantially grow the resource, further strengthening project economics. Large, low-cost copper projects are scarce, so Altar has strong economic potential.

World-Class Asset: The expanding size and grade of the mineralization point to Altar becoming a premier copper asset. Tier-one deposits in safe mining jurisdictions are rare and tend to attract high valuations and stoke M&A interest. Altar is on track to join that elite status.

Explorer Upside Potential: Investing in the exploration stage offers a higher upside before a project is fully defined and valued. Aldebaran's share price remains relatively low despite outstanding exploration success to date, signaling strong rerating potential as the copper resource grows.

Rising Copper Demand: Copper demand is projected to surge in the coming decade due to electrification and renewable energy targets. Supply is constrained with few new projects on the horizon. This supply-demand imbalance will benefit sizable new copper discoveries like Altar.

Argentina Discount: Investor confidence in Argentina is improving but still muted, providing an opportunity to gain exposure at a significant discount compared to an equivalent project in a more established mining jurisdiction.

Strong Backing: Major mining companies own 75% of Aldebaran's shares, providing a vote of confidence in both the project and the improved mining policies in Argentina. This also provides funding support.

Aldebaran Resources offers a compelling risk-reward proposition for investors seeking copper exposure and exploration upside in an improving jurisdiction at an attractive valuation. The growing resource size, exploration momentum, rising copper demand and country discount all suggest strong potential investment returns.

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