ATEX Resources' Recent Discoveries and Upcoming Drilling Program on Copper-Gold Giant in Chile

• ATEX Resources is exploring and developing a large copper-gold porphyry system in the Atacama region of Chile.
• The company is about to begin its Phase 5 drilling program, which will be its largest to date.
• ATEX current resources stand at 1.5 billion tons of inferred resources at 0.7% copper, with a high-grade component.
• The last drill hole of Phase 4 discovered a new zone with 100 meters at 2% copper equivalent overlying the porphyry.
• ATEX will move to 100% ownership of the project in August 2025 with a final $8 million payment.

ATEX Resources (TSXV:ATX) is rapidly advancing what could become one of the world's largest undeveloped copper-gold projects. Located in the prolific Atacama region of Chile, ATEX's flagship project has already outlined a substantial resource and continues to grow through ongoing exploration. With copper prices projected to rise due to increasing demand from electrification and renewable energy, ATEX offers investors exposure to a potentially world-class asset in a top mining jurisdiction.

Chile's Valeriano Copper Gold Project

ATEX's primary asset is a large-scale copper-gold porphyry system situated in the Atacama region of Chile. This area is renowned for hosting numerous world-class copper deposits and benefits from well-developed infrastructure and a supportive mining culture. The project's location in a stable, mining-friendly country like Chile is a significant advantage for investors, as it reduces geopolitical risk and enhances the potential for future development.

CEO Ben Pullinger highlighted the project's impressive scale:

"[Valeriano Project] Currently stands at 1 and a half billion tons. We referred resources at 0.7% copper with a high-grade kicker in there as well."

This substantial resource base already places ATEX's project among the largest undeveloped copper deposits globally. However, what makes the story particularly compelling is the continued growth potential.

Pullinger emphasized that the system remains open in all directions, stating, "We haven't hit the limits of this." This openness suggests significant potential for resource expansion, which could further enhance the project's economic viability and attractiveness to major mining companies.

Recent Exploration Success

ATEX's recent exploration efforts have yielded exciting results, particularly in the Phase 4 drilling program. Pullinger shared a key discovery:

"In our last drill hole of our phase four program we discovered a new zone that overlies free of about 100 meters at 2% which will be obviously the priority of this phase five program."

This high-grade zone, located above the main porphyry system, could have significant implications for the project's economics. High-grade near-surface mineralization could potentially be developed earlier in a mining scenario, providing robust early cash flows to support the development of the larger porphyry deposit.

Upcoming Phase 5 Drilling Program

ATEX is poised to commence its largest drilling program to date with the upcoming Phase 5 campaign. This program is expected to significantly expand the dataset and potentially grow the resource. Pullinger explained:

"We're about to draw another 20,000 meters to put that into that so to put that in context, this next program will basically double the data that we have on the model increase the confidence, increase the quantity of grade, and the continuity of that grade."

This aggressive exploration approach demonstrates ATEX's commitment to rapidly advancing the project and unlocking its full potential. The results from this program could be a major catalyst for the company's valuation.

Interview with Ben Pullinger, President & CEO of ATEX Resources

Metallurgical Performance

While resource size is crucial, the ability to economically extract and process the minerals is equally important. ATEX has reported encouraging metallurgical results with  95% recoveries for copper 94% recoveries for gold.

The company is currently conducting additional metallurgical test work on a larger scale, which should provide further confidence in these results. Positive metallurgical performance can significantly impact project economics and attract the attention of major mining companies looking for developable assets.

Path to 100% Ownership

ATEX currently owns 49% of the project but has a clear path to full ownership. Pullinger stated, "August next year we go to 100% one more payment 8 million bucks." This relatively modest payment to secure full ownership of a potentially world-class asset represents a significant value creation opportunity for ATEX shareholders.

The company has strategically timed this payment, allowing them to demonstrate the project's full potential through ongoing exploration before committing to the final ownership transfer. This approach maximizes value for shareholders while managing financial risk.

Exploration Efficiency and Value Creation

One of ATEX's key strengths is its exploration efficiency.

"We are very efficient explorers we've gone from geological curiosity to you know knocking on the door knocking on the door of top 10 and developed copper products on the planet in three to four years."

This rapid progress demonstrates the team's technical expertise and ability to efficiently allocate capital to create shareholder value. For investors, this efficiency translates to a higher potential return on invested capital and a faster path to realizing the project's full value.

Strategic Partnerships and Future Development

While ATEX has demonstrated its exploration prowess, the company is open to strategic partnerships to advance the project towards development. Pullinger noted,

"We'd love the right partner to come along with the project look we ultimately see this as a district scale consolidation right and that means we need bigger heads on the mining side."

This pragmatic approach recognizes the significant capital requirements for developing a large-scale copper project and the potential benefits of partnering with a major mining company. Such a partnership could provide the financial and technical resources needed to bring the project into production while potentially offering ATEX shareholders a premium for their investment.

Conclusion

ATEX Resources offers investors exposure to a rapidly advancing, potentially world-class copper-gold project in a premier mining jurisdiction. With a substantial existing resource, ongoing exploration success, and a clear path to full ownership, ATEX is well-positioned to create significant shareholder value. As the global demand for copper continues to rise, projects of this scale and quality are likely to become increasingly attractive to major mining companies, potentially leading to partnership opportunities or acquisition interest.

The Investment Thesis for ATEX Resources

• Large-scale copper-gold project in a top mining jurisdiction (Chile)
• Substantial existing resource with significant growth potential
• Recent high-grade discovery could enhance project economics
• Aggressive exploration program underway (Phase 5) to expand and upgrade the resource
• Path to 100% ownership with modest final payment
• Experienced and efficient exploration team
• Potential for market re-rating as the project advances
• Exposure to rising copper demand driven by electrification and renewable energy trends
• Potential for strategic partnerships or acquisition interest from major mining companies

Macro Thematic Analysis

The copper market is poised for significant growth in the coming decades, driven by the global transition to clean energy and electrification. Copper is a critical component in renewable energy systems, electric vehicles, and energy-efficient technologies. As countries worldwide strive to meet their climate goals, the demand for copper is expected to surge.

The International Energy Agency (IEA) projects that the clean energy transition could drive a quadrupling of mineral demand by 2040, with copper playing a crucial role. Electric vehicles use up to four times more copper than conventional cars, while wind and solar energy systems are also copper-intensive.

However, this increasing demand is set against a backdrop of tightening supply. Many existing copper mines are facing declining grades and increasing production costs. The discovery of new, large-scale copper deposits has become increasingly rare, making projects like ATEX's particularly valuable.

Chile, where ATEX's project is located, is the world's largest copper producer and is likely to play a pivotal role in meeting future demand. The country's stable mining policies and well-developed infrastructure make it an attractive destination for copper investment.

The confluence of rising demand and constrained supply is expected to support higher copper prices in the long term, potentially enhancing the economics of projects like ATEX's. Major mining companies are increasingly looking to secure future copper supply through partnerships or acquisitions of advanced exploration projects.

In this context, ATEX's large-scale, high-potential project in a premier jurisdiction positions the company to potentially benefit from these macro trends.

Key Takeaways

ATEX Resources presents a compelling investment opportunity in the copper exploration sector. The company's large-scale project in Chile has already demonstrated significant size and continues to grow through ongoing exploration. With a clear path to 100% ownership, an experienced team, and exposure to favorable copper market fundamentals, ATEX is well-positioned to create substantial shareholder value. Investors should continue to be mindful of the inherent risks associated with mineral exploration and development projects. As ATEX advances its project through further drilling, resource updates, and potential partnership discussions, it has the potential to attract increased market attention and possibly interest from major mining companies seeking to secure future copper supply.