ATEX Resources Hits 2 Billion Ton Copper Target While Securing Strategic Land Package in Chile

• ATEX Resources achieved its guidance target of 2 billion tons copper resource with 0.78% copper equivalent grade, with 24% now in indicated category
• The B2B zone delivered 30 million tons at 1.36% copper equivalent, positioning as potential starter operation for project economics
• Strategic land acquisition of 14,500 hectares for $21 million USD provides surface rights and water rights, eliminating key permitting risks
• Discovery cost of half a penny per pound of copper represents efficiency levels not seen since the 1990s
• Company maintains strong balance sheet with $20+ million cash plus $52 million in near-money warrants callable in 2026

ATEX Resources has emerged as a notable copper development story following the completion of its latest resource update and strategic land acquisition. The company's Valeriano project in Chile has demonstrated exceptional resource growth coupled with improving geological understanding, positioning it as what CEO Ben Pullinger describes as 

"the biggest copper discovery in the best jurisdiction for copper in the world in over a decade."

Resource Achievement Exceeds Guidance Targets

The company's latest resource update delivered on management's guidance to reach 2 billion tons, while simultaneously improving grade quality to 0.78% copper equivalent. Perhaps more significantly, 24% of the resource has been upgraded to indicated category, marking the first time the project has achieved this confidence level. This advancement reflects the company's systematic approach to geological understanding through increased drilling density.

"We nailed our guidance. We've been out telling the market about trying to get to a 2 billion ton resource on this next estimate. I think we shot it out of the park on the grade as well as getting that grade up to almost 0.78% copper equivalent." 

The geological model has evolved substantially from the initial three-finger conceptual framework established in 2023 with just 22,000 meters of drilling. The current understanding, supported by 51,000 meters of drilling into the porphyry core alone, reveals a continuous granodioritic porphyry core representing just under one billion tons, complemented by a billion tons of wall rock mineralization.

B2B Zone Emerges as Strategic Asset

The B2B zone has developed into a critical component of ATEX's development strategy, delivering 30 million tons at 1.36% copper equivalent grade within just one year of drilling. While slightly below the company's initial target range of 1.5-2% copper equivalent, management maintains confidence in grade improvement as drilling progresses.

The strategic importance of B2B extends beyond its immediate resource contribution. Management envisions this higher-grade zone as the foundation for a starter operation that could provide early cash flow to fund broader project development. This approach addresses the capital intensity typical of large-scale copper projects by creating a pathway to earlier payback periods.

Operational Efficiency Drives Value Creation

ATEX has distinguished itself through exceptional exploration efficiency, achieving a discovery cost of half a penny per pound of copper in the ground. This metric, according to management, represents efficiency levels not observed since the early 1990s. The company attributes this performance to the deployment of directional drilling techniques and the inherently well-behaved nature of the Valeriano deposit.

The geological characteristics of Valeriano contribute significantly to this efficiency. Pullinger describes the deposit as "spreadsheet mineable" due to its exceptional continuity in all directions, with drill holes consistently intersecting 1,000 to 1,300 meters of continuous mineralization above 0.3-0.4% copper equivalent.

Interview with Ben Pullinger, CEO of ATEX Resources

Strategic Land Acquisition Eliminates Development Risks

The company's recent acquisition of 14,500 hectares of surface rights for $21 million USD represents a strategic investment in project de-risking. This transaction provides ATEX with complete control over surface access across its project area and neighboring properties, including water rights that offer both cost savings and operational flexibility.

"In order to obtain a permit in Chile for whether it's an exploration decline, a ventilation raise, a piece of infrastructure, a new camp, you have to own the surface rights before you can enter the permit process."

The immediate financial benefits include elimination of access fees and inherited revenue from existing contracts with other area companies. More significantly, the water rights component eliminates the need to purchase water from third parties and reduces trucking costs, creating meaningful operational savings as drilling activities expand.

Economic Framework and Development Strategy

Management has outlined a compelling economic framework that leverages the project's scale and grade characteristics. For the broader porphyry resource, initial calculations suggest potential margins of $50 per ton on 10 million tons per annum production, assuming a block cave mining scenario. However, the integration of higher-grade B2B material could generate margins of $100+ per ton, fundamentally improving project economics.

"If you take 10 million tons per annum for 30 years mining at over 1% copper equivalent, over $100 per ton in-situ value, now all of a sudden you're making $80 to $100 per ton margin." 

The company's development philosophy emphasises a staged approach, with the B2B zone potentially serving as a starter operation requiring less than $1 billion in capital investment while generating $150-200 per ton in-situ value. This strategy could deliver payback periods of 2-3 years, providing cash flow to fund broader infrastructure development.

Capital Position and Market Context

ATEX maintains a robust balance sheet with over $20 million in cash following the land acquisition, complemented by $52 million in near-money warrants callable in 2026. This financial position, combined with established relationships with strategic investors including Sprott, Agnico Eagle, Pierre Lassonde and Trinity Capital Partners, provides flexibility for continued exploration and development activities. The company operates within favoruable market dynamics driven by supply constraints in the global copper market.

"Somebody has to start building new projects at some point in the future. And there just aren't a lot in safe jurisdictions." 

This positions ATEX as a beneficiary of the industry's search for development-ready assets in stable mining jurisdictions.

Future Drilling Campaigns and Growth Prospects

Phase VI drilling operations are currently underway, with management targeting continued expansion of the B2B zone and exploration of additional high-grade targets identified through magnetic and structural analysis. The company has identified a series of targets from south to north that exhibit similar characteristics to B2B, suggesting potential for multiple high-grade zones.

"Phase VI will be very much about testing this thesis and seeing if we can make more of these discoveries and then in Phase VII, we define it." 

The exploration strategy balances resource expansion with grade improvement, addressing both scale requirements for large-scale mining operations and the need for higher-grade material to optimise early production scenarios. This dual approach reflects management's understanding of modern copper project development requirements.

The Investment Thesis for ATEX Resources

• Scale and Grade Combination: 2 billion ton resource at 0.78% copper equivalent with 24% in indicated category provides foundation for long-term mining operation
• Discovery Efficiency: Half-penny per pound discovery cost demonstrates exceptional capital efficiency and management capability
• Development Optionality: B2B zone offers starter operation pathway with potential 2-3 year payback, reducing capital intensity risks
• Strategic Land Control: $21 million surface rights acquisition eliminates permitting risks and provides operational flexibility with water rights inclusion
• Jurisdictional Advantage: Located in Chile with stable mining framework and established infrastructure accessibility
• Management Track Record: Experienced leadership with established investor relationships and systematic exploration approach
• Market Timing: Positioned to benefit from global copper supply constraints and increasing demand for new production sources
• Financial Flexibility: Strong balance sheet with $20+ million cash plus $52 million warrant potential provides development funding capacity

Macro Thematic Analysis

The global copper market faces an unprecedented supply-demand imbalance driven by accelerating electrification trends and declining production at aging mines. This supply constraint coincides with surging demand from renewable energy infrastructure, electric vehicle adoption, and grid modernization initiatives. ATEX Resources emerges as a strategic beneficiary of these dynamics, offering a large-scale, high-grade copper resource in Chile's stable mining jurisdiction. 

The company's discovery efficiency and development pathway address the industry's need for new, economically viable copper projects that can achieve production within reasonable timeframes. As Pullinger noted, "There just aren't a lot of inventory like this on the market right now," highlighting the scarcity value of advanced copper development projects in safe jurisdictions. 

The convergence of supply constraints, demand growth, and limited pipeline of development-ready assets creates a favourable environment for companies like ATEX that can demonstrate clear pathways to production while maintaining operational efficiency and jurisdictional stability.

TL;DR

ATEX Resources delivered 2 billion ton copper resource with improved 0.78% grade and 24% indicated classification, while securing strategic land package eliminating development risks. The B2B zone provides starter operation potential with superior economics, supported by industry-leading discovery costs and strong balance sheet positioning. Company emerges as prime beneficiary of global copper supply constraints in stable Chilean jurisdiction.

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