Strategic Land Position Next to $2B Copper Mine Creates Opportunity

• Barksdale Resources is focused on advancing its Sunnyside copper exploration project in Arizona adjacent to South32's major copper mine.
• They have secured key drilling permits after a 5-year process and have commenced a drilling program to confirm and expand high-grade copper resources found in historical drilling in the 1980s.
• Success could attract further investment or interest from South32 given the projects' proximity and Barksdale's permits that allow access to South32's holdings.
• Barksdale also holds the San Javier copper development project in Mexico which could provide value to investors if advanced.
• Key goals are to increase ownership of Sunnyside to 67.5% through further drilling, release positive assay results in early 2024, and remain an active player in the region.

Copper Critical for Clean Energy Transition, Driving Major Investments

As the world transitions to renewable energy and electric vehicles, demand for copper is set to surge. Copper is a critical component in wiring, batteries, motors, and infrastructure needed to enable decarbonization. With copper usage in EVs 6-8 times higher than conventional vehicles, some estimates see copper demand doubling by 2035. This will drive substantial investment in new copper mines and extensions of existing resources.

One company attracting significant investor interest is Canadian explorer Barksdale Resources (TSX-V: BRO). Barksdale is focused on advancing the Sunnyside copper project in Arizona, located immediately adjacent to South32’s major copper producing Hermosa-Taylor mine. South32 invested $2.1 billion to acquire the Hermosa-Taylor deposit in 2018, underscoring the scale of copper resources in the district.

As Barksdale VP of Communications Terri Anne Welyki stated, “We know this their project is getting bigger, they also have a ton of blue sky potential on their property as well." South32 is already sinking two new shafts to expand production at Hermosa-Taylor. But their ability to explore further is constrained by permitting restrictions. This creates a strategic opportunity for Barksdale.

Interview with VP of Communications, Terri Anne Welyki

Major Backing Fuels Momentum

In addition to South32's activities driving attention, Barksdale has attracted support from leading mining investors. Key shareholders include Teck Resources, US Global Investors, and Osisko Gold Royalties. Such endorsements validate the world-class potential of Sunnyside.

To earn a 67.5% interest in Sunnyside, Barksdale is first targeting a 51% stake via an initial $5 million expenditure. This will support a major drilling campaign in early 2024 likely to yield important assays over the coming months. Positive results could spark an exciting value catalyst for investors in a bullish copper environment. As work progresses, Barksdale will also consider options to create value from its permitted San Javier copper development project in Mexico.

With drilling now accelerating alongside South32's rapid expansion next door, Barksdale offers investors excellent leveraged exposure to a premier copper district just as demand is set to take off.

Initial assay results from new drilling are expected in early 2024. Additional progress will be made through an intensive campaign supported by leading mining investors who recognize world-class potential here.

Key Takeaways

• Strategic land position next to major copper mine with room for resource expansion
• Recently secured permits allow extensive drilling including onto neighboring mine areas
• Resumption of drilling could yield high-grade assay results in months ahead
• Backed by leading mining investors who see world-class potential
• Ideal entry point with major catalysts upcoming in 2024

The Investment Thesis for Barksdale Resources

• Strategic Arizona copper asset next to South32's major producing mine with their deposit potentially extending onto Barksdale's ground
• Recently secured key drilling permits after 5 years and have commenced an updated drilling program targeting to expand 1980's high-grade intersections
• Initial assays pending could indicate impressive grades. Any potential success could attract South32 interest given the proximity.
• Near-term catalysts: Initial Sunnyside assay results early 2024, drilling progress through 2024

Barksdale Resources offers investors excellent exposure and leverage to the key copper market through its strategically located Sunnyside project next to South32's major copper mine in Arizona. With drilling now accelerating and initial assays pending, Barksdale promises investors plenty of news flow in 2024 that could drive exciting value growth.