High-Grade Copper Discoveries Expected to Enhance Upcoming Resource Update

• ATEX Resources is currently conducting its phase five drill program at the Valeriano Copper Gold project in Chile
• The company has a partnership with Agnico Eagle, which is focused on investing in legacy projects in world-class districts for long-term development over 200+ years.
• ATEX has discovered high-grade breccia zones (~2% copper equivalent) above the porphyry system that could contain 30-50 million tons or more, representing $6-10 billion in in-situ value.
• The company is evolving from focusing solely on the large porphyry resource (200M tons at 1% copper equivalent in 2023) to also emphasizing these higher-grade near-surface breccia zones.
• ATEX is well-capitalized with approximately $50 million Canadian and another $90 million in warrants, with plans for phase six drilling to test new targets.

ATEX Resources is currently conducting its phase five drill program at the Valeriano Copper Gold project in Chile, with impressive results already emerging from the initial holes. The company is building upon prior success, including a substantial resource estimate published in September 2023. Recent developments have significantly expanded the project's potential, revealing new high-grade mineralization zones that could dramatically enhance the project's economics and development timeline.

Strategic Partnership with Agnico Eagle

A key development for ATEX has been establishing a partnership with Agnico Eagle, an investor with a long-term vision for district-scale copper development. According to Ben Pulliinger, CEO of ATEX, 

"Their philosophy is to invest in legacy projects on world-class districts where they can be part of the evolution and growth of those districts." 

This partnership aligns with ATEX's thesis of developing a project within a region that could potentially sustain production for centuries.

The Agnico Eagle partnership provides ATEX with enhanced financial stability and technical expertise, positioning the company to accelerate exploration and development at Valeriano. This relationship reflects growing industry recognition of the project's significance within Chile's copper belt.

A Tale of Two Deposits

What makes Valeriano particularly compelling is its evolving geological understanding. Originally focused on a large porphyry copper-gold system, ATEX has now identified potentially game-changing high-grade breccia zones above the porphyry.

The company's 2023 resource estimate established 200 million tons at approximately 1% copper equivalent in the porphyry system. However, recent drilling has revealed branches of high-grade mineralization extending upward from the porphyry, consistently showing 100-200 meters plus of 2% copper equivalent mineralization.

These breccia zones could contain between 30-50 million tons of high-grade material, potentially representing $6-10 billion in in-situ value. As Pullinger explains, 

"If you're looking at something that has the dimensions that could get us between 30 and 50 million tons with potential for more... you're looking at something that's six to ten billion in-situ value."

Geophysical Signatures and Exploration Upside

ATEX has identified multiple additional targets based on geophysical signatures similar to the already-drilled high-grade zones. The mineralization is associated with a late-stage overprinting event that enriched and magnetized the rock, making it readily identifiable through geophysical surveys.

These geophysical signatures occur at the intersection of northeast and northwest structural features. Current interpretation suggests there could be up to four or five of these high-grade breccia zones within the property, creating substantial exploration upside beyond what has already been drilled.

The company is now focusing the remainder of its phase five drilling program on further delineating these high-grade zones, with phase six expected to test additional targets identified through geophysical work.

Interview with CEO Ben Pullinger

District-Scale Potential

Valeriano exists within what is emerging as a world-class copper district in Chile. Neighboring properties are advancing, with permits expected for adjacent projects in the coming year. Companies including Teck, Newmont, Anglo Gold, and Freeport-McMoRan are active in the region.

The district focus aligns with an industry trend toward consortium-based development of large copper projects. As Pullinger notes, 

"When you look forward and you look at how copper development projects go forward in the future, it's now a consortium, it's a partner basis."

ATEX believes that the full potential of this district remains largely untapped, with the key differentiator between Valeriano and more advanced projects being "10 years of big budget continuous exploration." The company sees its role as demonstrating the district's potential through continued exploration success.

Financial Position and Forward Plans

ATEX is well capitalized with approximately $50 million Canadian in cash and an additional $90 million in warrants, of which $30 million are currently in-the-money. This strong financial position allows the company to continue aggressive exploration without near-term financing pressure.

The upcoming resource update is expected to show significant growth from the 2023 estimate, including:

• An increase in the total porphyry resource with improved grades
• Additional indicated resources with higher confidence
• The inclusion of the newly discovered high-grade breccia zones
• Expanded exploration upside

The company expects to continue focusing capital on drill-bit value creation through phase six and beyond, while advancing metallurgical studies, geotechnical work, and environmental baseline studies in parallel.

ATEX plans to advance toward economic studies once it has fully defined the highest-value portions of the deposit that would have the most meaningful impact on future cash flow and project payback periods.

The Investment Thesis for ATEX Resources

• World-Class Copper-Gold Resource: Valeriano hosts a substantial porphyry resource (200M tons at 1% copper equivalent) with newly discovered high-grade breccia zones (2% copper equivalent) that could significantly enhance project economics.
• District-Scale Potential: Located in an emerging world-class copper district in Chile alongside major players like Teck, Newmont, and Freeport-McMoRan, with potential for 200+ years of production.
• High-Grade Development Option: The discovery of near-surface higher-grade breccia zones (potentially 30-50M tons at 2% copper equivalent) could enable a smaller initial operation with strong economics (~$100/ton margin) to fund future expansion.
• Strong Financial Position: Well-capitalized with ~$50M Canadian in cash and $90M in warrants, allowing for continued aggressive exploration without near-term financing pressure.
• Strategic Partnership: Backed by Agnico Eagle, a partner with long-term vision focused on legacy projects in world-class districts, providing both capital and validation.
• Exploration Upside: Geophysical signatures suggest multiple additional high-grade targets that have yet to be tested, with phase six drilling planned to expand the resource further.
• ESG Leadership: Demonstrated commitment to community engagement through initiatives like satellite internet connections for local schools/clinics and local employment training programs.
• Favorable Copper Market Dynamics: Positioned to benefit from growing global copper demand amid limited development of large-scale, high-quality projects.

Macro Thematic Analysis:

The global copper market is undergoing a structural shift in how new supply is developed and brought online. Traditional models of single companies developing mega-projects independently are giving way to consortium-based approaches where multiple players share capital requirements, expertise, and risk. This trend is particularly evident in Chile, where ATEX Resources is operating.

Major mining houses like BHP are indicating that the industry needs to add "an Escondida every two years" to meet projected demand, yet even combining all current regional projects falls short of this target. The challenge isn't just identifying copper resources but building the infrastructure to bring consistent, long-term production online in a capital-efficient manner.

Projects with high-grade components that can be developed at smaller scales initially and then expanded are becoming increasingly attractive in this environment. This approach reduces initial capital requirements while allowing for production to begin sooner, generating cash flow to fund future expansions.

For investors, this shift means companies with high-quality assets in established districts with multiple potential development pathways (like ATEX) may be better positioned to advance than standalone projects, regardless of size. The ability to start smaller with higher-grade material while maintaining optionality for district-scale development represents a compelling investment proposition in the evolving copper supply landscape.

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