Benton Resources - Unlocking Copper-Gold Potential in Newfoundland Amidst Global Demand Growth

• Benton Resources is currently conducting a financing round to fund continued drilling at their Great Burnt Lake copper-gold project in Newfoundland.
• The company has completed about 11,000 meters of drilling since last November and plans to drill an additional 10,000-15,000 meters by the end of the year.
• They are using detailed magnetic surveys and structural mapping to target massive sulfide deposits containing high-grade copper and gold mineralization.
• Management believes they have a significant resource to develop and expand, potentially containing "a few million ounces of gold and hundreds of millions of pounds of copper" at shallow depths.
• The company is transitioning to working with brokers and institutions to set up for larger financings in the future as the project advances.

Benton Resources: Advancing a Promising Copper-Gold Project in Newfoundland

Benton Resources Inc. (TSXV:BEX) is a junior mining company focused on advancing its flagship Great Burnt Lake copper-gold project in south-central Newfoundland. The company is in the midst of an aggressive drill program aimed at expanding and delineating the resource at Great Burnt Lake, with management expressing confidence in the project's potential to host a significant copper-gold deposit.

Project Overview & Recent Exploration

The Great Burnt Lake project is located in an established mining district in Newfoundland with a history of copper production. Benton has been systematically exploring and drilling the property over the past year, with approximately 11,000 meters of drilling completed since November 2023.

The company has employed a multi-faceted exploration approach, combining drilling with surface trenching, channel sampling, and detailed structural mapping. A key focus has been on using high-resolution ground magnetic surveys to identify and target massive sulfide bodies that are associated with high-grade copper and gold mineralization.

CEO Stephen Stares highlighted the importance of this targeting approach:

"The magnetic data is turning out to be something very very special for us and we're doing very detailed ground mag, 5-meter ground mag at 20-meter line spacings right over two zones. We can target where the vents are, and these massive sulfide lenses have kind of flowed out onto the floor, and then they've been compressed into more of a ball or a tube-shaped lens."

This detailed magnetic data is allowing Benton to locate and drill test the mineralized "plums" or lenses within the broader system more precisely. The company believes this will lead to more efficient and effective drilling as it works to expand the known mineralization.

Interview with President & CEO, Stephen Stares

Expanding the Resource Potential

Benton's drilling to date has focused on expanding the main Great Burnt deposit, which the company has now traced for over 850 meters of strike length. Recent drilling has continued to intersect significant widths of massive and semi-massive sulfide mineralization, with assays pending for several holes.

Stares expressed optimism about the expansion potential:

"We expect the grade should be pretty decent in it. What we're going to do is step out now about 100 meters at a time and do some big deep holes, pick the best center of where we think this plum should be."

The company plans to use downhole electromagnetic (EM) surveys to further refine their targeting between step-out holes. This methodical approach aims to efficiently add tonnage to the deposit while demonstrating continuity of the mineralization.

Beyond the main deposit, Benton sees potential for parallel zones and new discoveries along their 25-kilometer land package. Much of this ground remains underexplored, providing numerous targets for future drilling campaigns.

Near-Term Plans & Financing

Benton is currently in the process of closing a flow-through financing to fund continued exploration at Great Burnt Lake. While market conditions have been challenging, management remains committed to advancing the project. The company plans to commence its next phase of drilling immediately upon closing the financing.

The upcoming drill program is expected to include at least 10,000 to 15,000 meters of drilling before the end of 2024. This will focus on further expanding the main deposit and testing some of the new targets identified through recent structural mapping and geophysical work.

Stares emphasized the company's commitment to pushing the project forward despite difficult market conditions:

"I believe we have a resource to develop and expand on, so we're going to do just that. You see a lot of companies that don't do anything in these quiet times or in these harder times, but I believe we have to go for it."

This aggressive stance reflects management's confidence in the project and their belief that continuing to generate strong results will ultimately be rewarded by the market.

Geological Model & Exploration Strategy

Benton's exploration strategy is guided by a geological model that envisions the Great Burnt Lake mineralization as a folded and deformed volcanogenic massive sulfide (VMS) system. The company believes that the original mineralized lenses have been compressed and reoriented through tectonic activity, resulting in thickened zones of high-grade mineralization.

The exploration team is using a combination of magnetic data, structural mapping, and historical drilling information to reconstruct the geometry of these mineralized bodies. This work is being led by a structural geology expert who has provided valuable insights into how the deposit has been deformed over time.

By understanding the structural controls on mineralization, Benton aims to more effectively target the high-grade cores of the system. The company plans to drill some vertical holes to test the peaks of magnetic anomalies, which they believe correspond to the tops of massive sulfide lenses. This will be complemented by angled holes designed to intersect the interpreted plunge of the mineralization.

Resource Potential & Economic Considerations

While Benton has not yet published a formal resource estimate for Great Burnt Lake, management has begun to hint at the potential scale of the deposit. Stares suggested that the project could ultimately host "a few million ounces of gold and millions of pounds of copper" at relatively shallow depths amenable to open-pit mining.

The shallow nature of the mineralization is a key point of emphasis, as it could translate to favorable economics in a future mining scenario. The ability to extract significant portions of the deposit through open-pit methods would likely result in lower capital and operating costs compared to an underground operation.

It's important to note that these figures are speculative at this stage and will require significant additional drilling to verify. However, they provide insight into management's view of the project's potential and the scale they are targeting as exploration continues.

Market Positioning & Strategy

Benton Resources is positioning itself to capitalize on growing demand for copper and gold. The company sees an opportunity to develop a significant new source of these metals in a stable jurisdiction with established mining infrastructure.

Management has made a strategic decision to continue advancing the project aggressively despite challenging market conditions for junior miners. This includes transitioning to working with brokerage firms and institutional investors to facilitate larger financings as the project progresses.

Stares explained the rationale behind this approach:

"If we're lining ourselves up for a much, much bigger raise at much higher prices in the future, we need to be aligned with the bankers and the institutions. It's time for us to step into that arena as well."

This forward-looking strategy suggests that Benton is preparing for rapid advancement of the project if exploration results continue to be positive. The company appears to be laying the groundwork for a potential transition from explorer to developer in the coming years.

Risks & Challenges

As with any junior mining company, Benton Resources faces several risks and challenges that investors should carefully consider. While initial exploration results have been encouraging, there is no guarantee that continued drilling will delineate an economically viable resource, presenting a significant exploration risk. The company will likely require multiple rounds of financing to fully explore and develop the project, which could lead to dilution for existing shareholders. The economic viability of the project is also heavily dependent on copper and gold prices, which can be volatile and unpredictable. Additionally, the structural complexity of the deposit may present technical challenges for resource delineation and future mining operations. As the project advances, Benton will need to navigate regulatory processes and address any potential environmental concerns, introducing permitting and environmental risks that could impact the timeline and cost of development.

The Investment Thesis for Benton Resources

• Exposure to a potentially significant copper-gold project in Newfoundland, a stable mining jurisdiction
• Aggressive exploration program with 10,000-15,000 meters of drilling planned for 2024
• Management team committed to advancing the project despite challenging market conditions
• Use of advanced exploration techniques (detailed magnetics, structural mapping) to guide efficient drilling
• Potential for open-pit mining scenario, which could lead to favorable project economics
• Early-stage opportunity with significant upside if exploration continues to be successful
• Company positioning for institutional investment as the project advances

Macro Thematic Analysis

The investment case for Benton Resources is underpinned by broader macroeconomic trends driving demand for copper and gold. Copper, in particular, is experiencing strong long-term demand projections due to its critical role in the global transition to renewable energy and electric vehicles.

The electrification of transportation and growth of renewable energy infrastructure require significant quantities of copper for wiring, motors, and transmission lines. This growing demand is coinciding with a period of underinvestment in new copper mines, leading many analysts to project a significant supply deficit in the coming years.

Gold, while more volatile, continues to play a role as a safe-haven asset and inflation hedge. Economic uncertainties and geopolitical tensions have supported gold prices, making gold-copper projects particularly attractive to investors seeking exposure to both industrial and precious metals.

Newfoundland, where Benton's project is located, has seen increased mining investment in recent years due to its stable political environment, established infrastructure, and prospective geology. The province's pro-mining stance and streamlined permitting processes make it an attractive jurisdiction for mineral exploration and development.

The recent acquisition of Filo Mining by BHP for $4.5 billion underscores the appetite of major mining companies for copper assets, even at a premium. This M&A activity could benefit junior explorers like Benton if they are able to delineate significant resources.

CEO Stephen Stares captured the opportunity succinctly:

"When you see Filo getting taken over for four and a half billion dollars, that speaks volumes for where you think copper assets are going. Just because there's a pullback doesn't mean to say that there's going to be a shortage or abundant supply of copper in the market, because there's not."

This macro environment provides a favorable backdrop for Benton's exploration efforts, potentially increasing the strategic value of any significant copper-gold discovery at Great Burnt Lake.