Sendero Resources Exploring a World-Class Copper-Gold District in Argentina

• Sendero Resources is a new copper-gold explorer in Argentina's prolific Maricunga gold belt.
• The company has a 12 sq km land package and is targeting large-scale porphyry systems.
• Sendero has permits in place and will start drilling in January 2024 with an initial 5,000m program.
• The geology is similar to major discoveries like Filo del Sol and Josemaria. Sendero is aiming for 1%+ copper equivalent grades.
• The company raised C$6M at a C$13M valuation

Sendero Resources is a newly listed copper and gold explorer gearing up to drill in Argentina's prolific Maricunga mineral belt. With permits in hand and targets delineated, the company provides investors exposure to a potentially world-class porphyry copper district.

Sendero Resources started trading on the TSX Venture Exchange in October 2023 after raising C$6 million at a C$13 million post-money valuation. The company is led by mining executives like Michael Wood and Hernan Vera, and has renowned porphyry expert Dave Rhoden as chief technical advisor. Sendero holds a 12 square kilometer land package in Argentina's Maricunga gold belt, where majors like Anglo-American, Barrick and Newmont have invested over US$1 billion in exploration over the past two decades. The company will start drilling its porphyry targets in January 2024.

The Maricunga Advantage

The Maricunga belt has rapidly emerged as one of the most prospective copper-gold porphyry districts globally. Major discoveries have been made in the last 10 years, including Filo del Sol and Josemaria. Sendero's grounds are along the same mineralized trend, with similar geological characteristics. Unlike some regions where deposits are buried under thick overburden, Maricunga's rapid uplift has pushed mineralization closer to the surface. This allows meaningful exploration success with relatively shallow and cost-effective drilling.

Sendero's Targets

Sendero's exploration team used an extensive database of historical work by prior operators to delineate and prioritize drill targets. The company is focused on exploring large-scale porphyry systems. Two outcropping porphyry bodies have been identified on the property through mapping and geophysics. The exploration team believes these targets could host significant copper and gold mineralization starting at or near the surface. Several additional porphyry targets have been identified that may start at 80-100 meters depth based on magnetic and IP geophysics.

With permits secured, Sendero has contracted an experienced drill company and will start its maiden 5,000-meter drill program in January 2024. The initial focus is on the outcropping porphyry bodies, with step-out drilling planned at other targets. Hole depths are expected to range from 350 to 500 meters. The primary exploration goals are to demonstrate grades above 1% copper equivalent over meaningful widths. This would be accretive compared to an average grade of 0.5% to 1% at other deposits along the Maricunga trend. Demonstrating continuity of mineralization in the initial program could set the stage for a more expansive 15,000+ meter follow-up campaign in 2024-2025.

Country & Political Landscape

Sendero's projects are located on the Argentine side of the Maricunga belt. The country has become increasingly supportive of mining investment in recent years. Major projects like Filo del Sol and Josemaria are located on the Argentine side. The country recently held general elections, with a run-off vote scheduled for late November. The likely winner, Milei, is considered business-friendly and eager to spur foreign direct investment in mining and other sectors. This macro environment provides a favorable backdrop for Sendero's activities.

Capital Structure & Use of Funds

Sendero Resources currently has 65.4 million shares outstanding after its C$6 million private placement earlier this year. The company has a modest market capitalization of around C$13 million. Sendero is thought to be well-funded for its maiden drill program with current working capital. However, demonstrating exploration success could position the company to raise additional capital if needed to accelerate follow-on drilling. The company's capital structure allows for a substantial upside if it can delineate a meaningful copper-gold deposit through systematic exploration.

With copper demand forecasted to surge amid the energy transition, new district-scale discoveries are needed. Sendero provides a speculative investment opportunity in Argentina's emerging Maricunga porphyry belt. The company has the advantage of learning from recent major discoveries like Filo del Sol, and is applying that knowledge to systematically explore its footprint. Sendero offers investors exposure to a potentially world-class porphyry district with drilling set to commence in the coming months. Initial results will provide key insights into the potential value of its targets. Sendero's experienced leadership team is supported by renowned technical advisors with track records of exploration success. As maiden drill results are pending, the stock offers risk-tolerant investors upside potential if Sendero can validate the prospectivity of its porphyry targets.

The Investment Thesis for Investors

With drilling set to start in January, Sendero Resources provides speculative exposure to a potentially prolific copper-gold porphyry district. The company has assembled an impressive technical team to explore its holdings in Argentina's Maricunga belt. Recent major discoveries in the region highlight the area's world-class potential. Sendero's targets demonstrate similar geological promise.

The initial 5,000 meter drill program will provide key insights and validation on the prospectivity of Sendero's porphyry targets. Maiden drill results, expected within months, could catalyze market interest if grades and widths meet management's objectives.

With a modest valuation, Sendero offers investors upside potential predicated on exploration success. The experienced leadership team is aligned with shareholders, holding significant equity stakes themselves.

As Sendero Resources unlocks the potential of its Maricunga portfolio through systematic exploration, the company may attract renewed investor interest. Sendero provides a compelling speculative investment opportunity for risk-tolerant resource investors seeking copper and gold exposure.