Atex Resources Inc. · TSX:ATX
Atex Resources — Investor Presentation (September 2024)
35 slides from Atex Resources's investor presentation, September 2024
Slide 1: Valeriano: Defining a Copper Gold Giant in Chile
VALERIANO Defining a Copper Gold Giant in Chile September 2024 TSXV: ATX
Slide 2: Cautionary Statements
Cautionary Statements FORWARD LOOKING STATEMENTS QUALIFIED PERSONS This presentation contains forward-looking statements, including predictions, projections, and forecasts. Often, but not always, forward-looking Dr. Owen Hatton, PhD, MAusIMM, registered with the Australasian Institute of Mining and
Slide 3: A Unique Investment Opportunity
A Unique Investment Opportunity Significant and growing Inferred Resource containing 1.41 billion tonnes of Cu-Au mineralization grading 0.67% CuEq1 Successful Phase IV drill program has returned the highest grades to date and sets the stage for a catalyst rich Phase V program (H2 2024 – H1 2025) le
Slide 4: Chilean Explorer Advancing a Rare Copper Deposit
Chilean Explorer Advancing a Rare Copper Deposit ATEX owns a 49% interest in the Valeriano Project and is on track to increase ownership to 100% in 2025 Board and Management has a strong track record of contributing to significant South American discoveries Achieving success in a short timeframe, fr
Slide 5: Valeriano is on the Porphyry Superhighway
Valeriano is on the Porphyry Superhighway Copiapó CARSERONES PERU Valeriano Project is located in the Huasco SOUTHERN PERU LOS HELADOS Province within the Atacama Region of Huasco RELINCHO JOSEMARIA northern Chile, ~151 km southeast of Vallenar BOLIVIA Vallenar FILO DEL BRAZIL LA FORTUNA/ SOL EL MOR
Slide 6: >10 km Trend with Only 30% Explored
>10 km Trend with Only 30% Explored CODELCO Drilling Valeriano and El Encierro projects are situated only 6 km apart with both hosting significant resources with potential for significant growth Over 2 billion tonnes of mineral resources already defined with significant exploration programs ahead EL
Slide 7: Porphyry Trend Indicates a World Class District is Forming
Porphyry Trend Indicates a World Class District is Forming CODELCO Drilling Valeriano Cu-Au Porphyry Resource • ~22,000 metres of drilling in 9 holes by ATEX (Phase II and Phase III) and 5 historical holes included in Resource • 1.41 Bt @ 0.67% CuEq1 Inferred Resource EL ENCIERRO Anto/ABX (0.50% Cu,
Slide 8: Copper-Gold Porphyry Resource Summary
Copper-Gold Porphyry Resource Summary Metal contribution by $ Cu Ag Cu Ag Inferred Inferred within the Resource Copper 15.5 Blbs Silver 43.6 Moz Au Cu 23% Au Mo 70% Au Mo Inferred Inferred Ag 1% Gold 9.01 Moz Molybdenum 90.1 kt Mo 6% Mineral Resource Statement, Valeriano Project, Atacama Region, Chi
Slide 9: Top 10 Undeveloped Copper Projects in the World
Top 10 Undeveloped Copper Projects in the World • Valeriano is a new and globally significant copper discovery on its way to becoming a top tier project, currently containing 7.06 Mt (15.6 B lbs) of copper at a 0.4% Cu cut-off-grade (“COG”)1 and 10.4 Mt (23 B lbs) of copper at 0.3% COG. 10 Largest U
Slide 10: Metallurgical Results Indicate High Cu-Au Recoveries
Metallurgical Results Indicate High Cu-Au Recoveries • Robust Copper and Gold Recoveries – Copper recoveries Cross-section through 2023 MRE ranging 91% - 95% and total gold recovery ranging 83% - 94%, NE Facing using a combination of flotation (Cu, Au) and cyanidation of 4,500 cleaner tails (Au) • A
Slide 11: Favorable Topography for a Potential U/G Mining Operation
Favorable Topography for a Potential U/G Mining Operation EL ENCIERRO VALERIANO 4,300 masl 500m 3,800 masl 3,600 masl 200 m ATXD26 978m @ 0.75% CuEq 2024 Conceptual Incl. 356m @ 0.98 % CuEq 0.3 % Cu grade shell And Incl. 122m @ 1.60 % CuEq And Incl. 68m @ 2.02 % CuEq Conceptual Early Porphyry Isomet
Slide 12: Results Outline Scalable Deposit with High-Grade Optionality
Results Outline Scalable Deposit with High-Grade Optionality High-Grade Expanding High-Grade Multiple Continuously Mineralized Overprinting Epithermal Core within Porphyry Intervals of > 0.3% Cu and ~1,000m long Event overlying Porphyry ATXD17II ATXD11BIII ATXD16AIV ATXD17II ATXD16AIV 1,342.5 m of 0
Slide 13: Phase IV – Porphyry and Epithermal Systems
Phase IV – Porphyry and Epithermal Systems 2 km near-surface > 0.3 % Cu • Phase IV has been another ATXD27 DDH-V8 ATXD26 transformative exploration season ATXD12A ATXD17A/B ATXD16A CuEq (%) Near Surface • Vastly improved the understanding of DDH-V8 up to 40% Cu ATXD25 Historical the geometry of the
Slide 14: Phase IV – High-Grade Epithermal System Open above Porphyry
Phase IV – High-Grade Epithermal System Open above Porphyry ATXD27 > 400 m from ATXD26 to CuEq (%) CuEq (%) in near surface ABOVE 3,200 masl drill holes • ATXD26 intersected a high-grade, Cu- northern extent of mineralization > 1.0 > 5.0% DDH-V8 Au-Ag enriched epithermal system Up to 40% Cu > 0.8 >
Slide 15: Phase IV – Evolving Geology Model Delivers Substantial Upside
Phase IV – Evolving Geology Model Delivers Substantial Upside CuEq (%) PLAN VIEW 2,600 masl ATXD27 • ATXD16A – confirmed continuity Complete drill hole in Phase V BELOW 3,200 masl > 1.0 of the mineralized porphyry along > 0.8 ATXD25A strike to SE where it remains open 224.2m @ 0.47 % CuEq Complete d
Slide 16: Phase V Drill Program – Quality and Confidence
Phase V Drill Program – Quality and Confidence 2 km near-surface > 0.3 % Cu LONG-SECTION FACING NE • Phase V will focus on Epithermal and Cu/Au Porphyry Targets quality over quantity DDH-V8 • Targeting 20,000 Epithermal Level Plan Up to 40% Cu CuEq (%) metres of directional Histogram and Traces Test
Slide 17: Phase V Drill Program – Quality and Confidence
Phase V Drill Program – Quality and Confidence PLAN VIEW 3,200 masl PLAN VIEW 2,600 masl 4 priorities identified for Epithermal Target Cu/Au Porphyry Target the Phase V program: 1. Step out drilling to expand DDH-V8 Up to 40% Cu the late-stage epithermal RDH-V21 ATXD23 overprinting system above ATXD
Slide 18: Upcoming Milestones and Catalysts
Upcoming Milestones and Catalysts 2022 2023 2024 2025 Q1 2022: Q1 2023: Q1 – Q2 2024: Q1 2025: Geophysical results Awarded Top 50 TSX.V Phase IV drill results File environmental impact assessment (“DIA”) Q2 2022: Q3 2023: Q2 2024: Completion of Phase II Earned 49% interest Strengthened management te
Slide 19: Capital Structure and Research Coverage
Capital Structure and Research Coverage Research Coverage Target Price Capital Structure (ATX-TSX.V, $CAD) Share Price $1.23 Paradigm Capital $2.25 Shares Outstanding (M) 206 David Davidson Market Capitalization (M) $254 Desjardins $2.80 Cash (M) $6 John Sclodnick Debt (M)1 US$15 Enterprise Value (M
Slide 20: Warrants and Valeriano Option Agreement
Warrants and Valeriano Option Agreement Warrants Outstanding (August 30, 2024) Valeriano Option Agreement Terms ($USD) Proceeds on Securities Price (C$) Number Total By September 1, 2023, for 49% ownership: Exercise (C$) Shares o/s 206,904,419 • $3.5 million payment – Completed $3.5 M Warrants1 37,7
Slide 21: Stock Performance and Key Announcements
Stock Performance and Key Announcements Source: Paradigm Capital Note: Peer group consists of NGEx Minerals, Regulus Resources, Hot Chili, Filo Mining, Aldebaran Resources, Solaris Resources, Los Andes Copper. VALERIANO: Defining a Copper Gold Giant in Chile TSXV: ATX 21
Slide 22: Positioning Valeriano
Positioning Valeriano Valeriano Filo del Sol Los Helados Cascabel Warintza Ownership - 49%4 100% 69% 100% 100% Country - Chile Argentina / Chile Chile Ecuador Ecuador Stage of Projects - Exploration Exploration Exploration Pre-Feasibility Exploration Mine Type Underground Open Pit Underground Underg
Slide 23: ESG Initiatives
ESG Initiatives PreparATEX Internet Lighting Project Local Hiring and Diversity Our initiatives strengthen job preparation and Installation of Starlink WiFi antennas in Malaguín 31% of ATEX's total workers are women. development for residents in our areas of influence, and Juntas de Valeriano, enabl
Slide 24: ESG Initiatives
ESG Initiatives Open Communication Community Engagement Environmental Monitoring Open communication is one of the fundamental Install community engagement mechanisms in the Installation of two air monitoring stations to assess pillars of our sustainability strategy, as we strive to area of influence
Slide 25: ESG 2024 Initiatives
ESG 2024 Initiatives PreparATEX 2024 Edition ColaborATEX EcoATEX To continue strengthening the training and To ensure the continuity of local employment during The EcoATEX program focuses on promoting the professional development of the inhabitants of Alto the winter, the ColaborATEX initiative was
Slide 26: A Dedicated Management Team
A Dedicated Management Team Ben Sheila Aman Atwal Dr. Owen Dr. Felipe M. Pullinger Magallon VP, Business Hatton Pinheiro President, CEO Chief Development & Director of General Manager and Director Financial Investor Relations Exploration and Director of Officer Sustainability • Geologist with over 1
Slide 27: A Strong Board with a Diverse Skill Set
A Strong Board with a Diverse Skill Set Craig Nelsen, Ben Pullinger, Dr. Raymond Jannas, Alejandra Wood, Jamile Cruz, Chris Beer, Chairman President, CEO, Director Director Director Director Director • Geologist with over 40 • Geologist with over 19 • Over 40 years of • Over of 20 years of • Over 20
Slide 28: ATEX Resources: Minimizing the Time to Maximize the Value
ATEX Resources Minimizing the Time to Maximize the Value Ben Pullinger, President and CEO bpullinger@atexresources.com Aman Atwal, VP, Business Development and Investor Relations aatwal@atexresources.com VALERIANO: Defining a Copper Gold Giant in Chile TSXV: ATX 28
Slide 29: Phase IV Drill Results
Phase IV Drill Results CuEq CuEq CuEq Met Notes: From To Interval2 Cu Au Ag Mo Hole ID(4,6) MRS(1) In Situ(2) Results(3) 1. CuEq calculated using recoveries assumed in 2023 MRE (90% Cu, 70% Au, (m) (m) (m) (%) (g/t) (g/t) (g/t) (%) (%) (%) 80% Ag and 60% Mo) (See Company news dated September 12, 202
Slide 30: September 2023 Mineral Resource Statement
September 2023 Mineral Resource Statement Valeriano Project, September 1, 2023 Quantity Grade Contained Metal Inferred Mineral Cut-Off Tonnes Cu Au Ag Mo CuEq* Cu Au Ag Mo Resource Grade (millions) (%) (g/t) (g/t) (g/t) (%) Mt koz koz kt Au Epithermal 0.28 32.1 - 0.54 2.43 - - 557 2,511 - Open Pit g
Slide 31: Room for Significant Value Appreciation
Room for Significant Value Appreciation • Applying a peer average multiple of US$0.12/lb to ATEX’s copper-equivalent contained Mineral Resource estimate suggests an opportunity for significant value appreciation • Filo Corp.’s broker estimated acquisition multiple implies even further value upside A
Slide 32: South American Resource Landscape
South American Resource Landscape • Valeriano ranks amongst the higher-grade copper projects in South America and en route to the top right quadrant Source: BMO Capital Markets, S&P Market Intelligence VALERIANO: Defining a Copper Gold Giant in Chile TSXV: ATX 32
Slide 33: Path to Significant Value Creation (ATEX vs. Filo)
Path to Significant Value Creation (ATEX vs. Filo) March 2023 May 2024 Results 356m of ATEX 1,342.5m of 0.70 %CuEq Feb 2023 June 2023 964m of Jan 2024 0.98% CuEq Sept 2023 1,122m of Jan 2022 Jun 2022 1,270.1m of 0.59 %CuEq 0.70% 1.4 BT Inf 0.48 %CuEq First Drilling into 1,160 m of CuEq Resource at P
Slide 34: Path to Significant Value Creation (ATEX vs. NGEx)
Path to Significant Value Creation (ATEX vs. NGEx) March 2023 May 2024 Results 356m of ATEX 1,342.5m of 0.70 %CuEq Feb 2023 June 2023 964m of Jan 2024 0.98% CuEq Sept 2023 1,122m of Jan 2022 Jun 2022 1,270.1m of 0.59 %CuEq 0.70% 1.4 BT Inf 0.48 %CuEq First Drilling into 1,160 m of CuEq Resource at P
Slide 35: Notes on Reported Exploration Results and QAQC Procedures
Notes on Reported Exploration Results and QAQC Procedures Notes on Drill Results • All intervals are reported as core lengths as the true lengths of the intervals are unknown at this time. • Copper Equivalent (CuEq) is calculated assuming US$ 3.15/lb Cu, US$ 1,800/oz Au, US$ 23/oz Ag, and US$ 20/lb
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