Sendero Resources - Advancing Copper-Gold Project in Argentina with High-Grade Targets

• Sendero Resources is a junior exploration company exploring the Peñas Negras copper-gold-PGE project in the Vicuña district of Argentina.
• The company believes the drilling so far indicates a major discovery of a telescoped high-sulfidation epithermal system in a lithocap environment, with potential for high-grade feeder zones.
• Sendero is assessing options to recapitalize the company over the next 6 months, including equity financing or a JV partner at the asset level, in order to fund a larger drill program.
• Argentina has seen renewed optimism and interest in mining investment. Sendero has a strong local team and 211 sq km land package in a prospective district.

About Sendero Resources

Sendero Resources, a junior exploration company, is poised to unlock the immense mineral potential of the Vicuña District in Argentina. The company's flagship Peñas Negras Project spans an impressive 211km2 of prime exploration territory, strategically located in the heart of the district known for its world-class copper discoveries.

The Peñas Negras Project is divided into two parts: 120km2 wholly owned by Sendero Resources and an additional 91.7km2 covered by an option agreement, which is directly adjacent to the original claims. This strategic land package positions the company in close proximity to super giant discoveries owned by industry giants such as Filo Mining, Lundin Mining, and NGEx Minerals.

One of the most compelling aspects of the Peñas Negras Project is its geological similarities to neighboring world-class deposits. The project shares characteristics with the prestigious Josemaria copper-gold porphyry system and the gold-rich Maricunga porphyries, indicating the potential for significant mineral discoveries.

Sendero Resources has identified a cluster of promising porphyry and epithermal targets within the project area. The company's experienced team is leveraging their expertise and operational knowledge to advance exploration efforts and unlock the value of these prospective targets.

With a strategic land position, geological similarities to world-class deposits, and a focused exploration approach, Sendero Resources is well-positioned to make significant discoveries and establish itself as a key player in the mineral-rich Vicuña District of Argentina.

Drilling Indicates Major Discovery

Although Sendero's initial drill results underwhelmed the market compared to the spectacular success of nearby projects, the company sees strong indications of a significant discovery. As Executive Chairman Michael Wood explains, "Internally we feel we're making a major discovery. We've learned a lot about our La Peña target."

The drilling intersected a telescoped high-sulfidation epithermal system in a lithocap environment - a highly prospective setting that hosts major deposits in the region. Lithocaps form above porphyry systems and are associated with bonanza-grade feeder zones.

Wood elaborates: "In this lithocap structure you will have higher-grade parts of the system. Now we understand that, we want to vector in to understand where the feeder zone is and the higher-grade part of that system. That would obviously transform the potential and valuation of the asset."

Interview with Executive Chairman, Michael Wood

Upcoming Drilling to Target High-Grade

Sendero's technical team has identified compelling targets to explore for high-grade zones in upcoming drilling. Two large magnetic anomalies in the middle of the lithocap zone could represent porphyry intrusions that acted as feeders into the lithocap.

Importantly, these targets start at only 150 m from surface, enabling cost-effective testing. The company also plans to drill out the base of the lithocap, which shows evidence of sizeable mineralization that points to a large underlying mineral system.

As Wood notes, "We've got two pretty compelling targets where the feeder system could be that we really want to test. We're getting into the heart of it with not too much meterage."

Well-Positioned in World-Class District

Sendero's project lies in the heart of the Vicuña district, home to several world-class copper-gold discoveries by major miners in recent years. Despite early challenges, Wood believes the company is in the right place: "It was a blessing to be in Vicuña, but now maybe a little bit of a curse that we haven't lived up to the neighbors quite yet."

Sendero has a dominant 211 sq km land position in this highly prospective but underexplored region. The project was originally acquired privately in 2018 by CEO Hernan Vera, a seasoned mining executive with experience leading major companies in Argentina.

This reflects a strong technical pedigree and insider knowledge of the district's potential before the recent staking rush.

Funding the Next Phase

After completing its maiden drill program, Sendero is now looking ahead to its next phase of exploration. With a depressed market for juniors, the company is assessing several options to fund a larger program starting in October.

These include raising money from the equity markets or bringing in a strategic partner at the asset or corporate level. A major partner could be transformative, as Wood explains:

"If we could get in a strategic partner, it's a big property in a prime location. It's going to take a lot of resources and expertise. I think that's something we'll be very keen on and the market would like - it gives a stamp of validation on the project."

The company is also considering smaller equity raises to fund targeted drilling of the newly identified high-grade targets: "We could get higher-grade holes, which would excite the market and hopefully make us a darling of the market and give us more access to capital."

Bullish on Argentina

Argentina has seen a resurgence of interest and investment in its mining sector recently. Wood has renewed optimism, especially after last year's presidential election. Major mining companies are looking to deploy capital in the country again.

Sendero benefits from a very experienced in-country team with strong community relations, a key advantage for a junior. As Wood notes, "We have very good local government support. They've been very supportive - everything they've said they've done, they've done on time."

Conclusion

In summary, Sendero Resources offers investors a compelling early-stage exploration opportunity in Argentina's highly prospective Vicuña district. Despite initial drill results missing high expectations, the company has intersected a major epithermal-porphyry system and identified clear targets for potential bonanza-grade feeder zones.

With an experienced team, dominant land position in a world-class belt, and multiple upcoming catalysts, Sendero is well-positioned to deliver a major discovery and value creation. Although early-stage exploration carries inherent risk, the company presents an attractive speculative opportunity at current levels for risk-tolerant investors.

Investment Thesis for Sendero Resources

• Exposure to a potential major copper-gold-PGE discovery in a world-class mining district
• Large 211 sq km land package in heart of highly prospective but underexplored region
• Experienced management team with strong technical pedigree and in-country expertise
• Drill-ready targets for potential high-grade feeder zones could drive a re-rating
• Attractive entry point after market overreaction to initial results
• Strategic investment or JV potential as company seeks to fund next phase
• Renewed investor interest and mining-friendly political environment in Argentina

"We're trading sub 10 million market cap today, we have 212 square km in Vicuña, we've identified a telescoped system in Vicuña of scale, we've identified a large mineralized lithocap, multiple porphyry clusters around it. Really getting our teeth into a major system here - a major mineralized system, multiple events, mineralizing events taking place. Very good potential of a major discovery and really a great entry point for both new and existing investors to the story." - Michael Wood, Executive Chairman

Macro Thematic Analysis

The global energy transition is driving strong long-term demand for copper and other green metals like PGEs. Copper is a critical component in electrification, renewable energy, and electric vehicles. However, a lack of new discoveries and long project development timelines have resulted in forecasts for a looming supply deficit.

In this context, major new copper discoveries are highly sought-after by the industry. The Vicuña district has emerged as one of the most exciting copper exploration hotspots globally, with several world-class discoveries in recent years. Sendero's project lies in the heart of this district and is showing potential for the next major find.

Argentina stands to benefit from this resurgence of interest in its mining sector. The country has a rich mineral endowment but has been overlooked by the global industry for years due to political and economic challenges. The recent election of a more business-friendly government and strong community support for mining projects bodes well for the industry's future growth.

For investors, Sendero represents a ground-floor opportunity to gain exposure to a potential Tier 1 copper discovery in a world-class jurisdiction. As the green energy transition unfolds over the coming decades, companies like Sendero that can make significant new discoveries will be in high demand.