ATEX Announces Results of Second Metallurgical Program Further Demonstrating Outstanding Recoveries for Copper and Gold at Valeriano, Phase V Drill Program Underway with Fourth Rig Being Mobilized
ATEX Announces Results of Second
Metallurgical Program Further Demonstrating
Outstanding Recoveries for Copper and Gold
at Valeriano, Phase V Drill Program Underway
with Fourth Rig Being Mobilized
Toronto, Ontario--(Newsfile Corp. - December 11, 2024) -
ATEX Resources Inc. (TSXV: ATX)
("
ATEX
" or the "
Company
") is pleased to announce the results of its second metallurgical program
completed at the Valeriano Project. The program was conducted by Base Metallurgical Laboratories in
Kamloops, British Columbia using mineralized sample material selected from drill core collected during
the Phase III and IV drill campaigns at the Valeriano Project ("
Valeriano
" or the "
Project
") located in
Atacama Region, Chile. The Company is also pleased to provide an exploration update on its Phase V
drill program.
ATEX's second metallurgical testwork program continues to demonstrate that the conceptual process
flowsheet being developed for Valeriano is robust and comparable with other world class copper
porphyry projects. Metallurgical performance exceeded expectations for all three domains tested
including previously untested hole ATXD26 mineralization.
HIGHLIGHTS
:
ATTRACTIVE COPPER AND GOLD RECOVERIES
- Robust total copper and gold recoveries
ranging from 92% to 95% and 90% to 97% respectively, in line with the first metallurgical program
testwork results; the results of the first metallurgical program were reported on
October 18, 2023
.
COARSER GRINDING DOES NOT IMPACT RECOVERIES
- Valeriano material is amenable to
SAG and ball milling. Coarsening of the primary grind from 120 µm to 200 µm was achieved
during the second metallurgical program with no negative impact on recoveries and to 165 µm on
hole ATXD26 material, which will have a positive impact on projected processing costs.
MARKETABLE CONCENTRATE GRADES
- Concentrate grades of up to 33% Cu and up to 15
g/t Au present a very marketable product to copper smelters globally.
NEGLIGIBLE DELETERIOUS ELEMENTS
- Deleterious elements in concentrate are
immaterial.
POTENTIAL FOR SEPARATE MOLYBDENUM CONCENTRATE
- Separation of copper and
molybdenum could produce a saleable molybdenum concentrate, and there is significant
molybdenum upside for the epithermal zone that warrants further investigation.
"We are very encouraged by these results, confirming again that Valeriano is a simple orebody with an
uncomplicated circuit that can produce a high quality, clean concentrate utilizing conventional recovery
methods," stated Ben Pullinger, President, and CEO of ATEX. "The copper and gold recovery results
from this program have exceeded our expectations, and the high quality of the concentrate would be well
received by global smelters. Coarsening of the grind size with no impact to recoveries will be very
beneficial to future project economics with significant potential benefits to capital and operating costs.
We also continue to make progress on our Phase V drill program with a fourth rig currently being
mobilized and a fifth rig expected to be added in January."
Overview
In June 2024 a second phase metallurgical testwork program was designed and scoped by Libertas
Metallurgy and ATEX. Metallurgical testwork was completed at Base Met Laboratories in Kamloops,
B.C. from October 2024 through December 2024 on representative samples selected from recent
metallurgical drilling, including material from the previously uncharacterized high grade, shallower depth
epithermal zone. Please see
May 15, 2024
press release for details on this new zone and hole ATXD26.
A total of three representative samples were selected by Libertas Metallurgy and ATEX geologists in
August of this year:
1
.
High Grade Early Porphyry (HGEP) Composite
selected from half core within the High-Grade
Central Porphyry Trend.
2
.
Early Porphyry (EP) Composite
selected from half core from within the porphyry surrounding the
high-grade.
3
.
ATXD26 HG Composite
selected from half core from the high-grade epithermal zone of
mineralization located above the main porphyry deposit.
Program Scope
The second metallurgical program focused on the following key elements:
1
.
Head characterization including chemical assays and quantitative mineralogy.
2
.
Comminution testwork for SAG milling (SMC tests) and ball milling (Bond Ball Work Index tests).
3
.
Comprehensive program of rougher and cleaner flotation tests culminating on successful locked
cycle tests (LCTs) on each of the three composites.
4
.
Leaching of flotation tails for additional gold recoveries.
Composite head grades ranged from 0.45% to 1.00% for copper and 0.36 g/t to 0.44 g/t for gold and
were representative of the geometallurgical domains tested. Locked cycle test results are aligned with
the first metallurgical program results with copper recoveries ranging from 92% to 95% at high quality
copper concentrate grades ranging from 31% to 33%. Gold recoveries to copper concentrate ranged
from 56% to 64% with concentrates grading 8 g/t to 15 g/t. Potential for an additional increase in gold
recoveries of 25% to 38% was demonstrated via cyanide leaching of the copper cleaner 1 tails and
rougher tails.
Additional comminution testwork confirmed that Valeriano material is amenable to SAG milling and that
Bond Ball Work indices were of average to above average hardness. Coarsening of the primary grind
target from 120 µm in Phase 1 to 165 to 200 µm in Phase 2 will result in significant energy savings over
the life of mine, while having little to no impact on metal recovery. Geometallurgical (variability) testwork
is ongoing, with QEMSCAN mineralogical analysis and flotation testwork on 25 discrete geometallurgy
samples expected to be complete in early 2025.
Sample Selection
The metallurgical samples were selected as follows:
Early Porphyry (EPMC) Composite
: ~500 kg with selected intervals originating from multiple
holes, and a copper equivalent grade of greater than 0.70%.
High Grade Early Porphyry (HGEP) Composite
: ~300 kg with selected intervals originating
from multiple holes and a copper equivalent grade of almost 1.00%.
Epithermal (EPT) Composite:
~90 kg with intervals originating from hole ATXD26 and a
targeted copper equivalent grade of ~1.50%.
The figure below summarizes the location of the selected domain composites and variability samples:
Figure 1 - Porphyry, Epithermal Domain Composite & Geometallurgical Variability Sample
Selections (Facing Northeast)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6303/233259_3aa041ded4b8e8a0_001full.jpg
The majority of samples originated from Phase III and Phase IV drilling in 2023 and 2024 respectively.
Intervals were selected from multiple holes and from various locations down hole to provide the best
possible spatial representivity, with the exception being the epithermal composite where only one drill
hole intersected this zone. In addition to the three domain composites, 25 discrete geometallurgical
samples were selected from the lower portion of the porphyry. These geometallurgical variability
samples represented continuous intervals of approximately 10 m to 20 m in length and ranged from
approximately 20 kg to 40 kg each. The samples originated from multiple holes within the bottom 500
meters of the porphyry and covered a range of copper and gold grades. Figure 1 above summarizes the
location of the selected domain composites and variability samples.
A total of 194 half core intervals were selected from across the three domains to create the three domain
master composites. The samples are summarised in Table 1 below:
Table 1 - Selected Composite Calculated Grades
Composite
Cu (%)
Au (g/t)
Ag (g/t)
Mo (ppm)
Fe (%)
CuEq (%)
1
High Grade Early Porphyry
0.67
0.36
2.3
41
3.03
0.94
Early Porphyry
0.45
0.39
1.6
20
2.88
0.73
Epithermal
1.00
0.44
2.3
405
3.73
1.48
1
.
CuEq calculated using recoveries assumed in 2023 MRE (90% Cu, 70% Au, 80% Ag and 60% Mo) (See Company news dated September 12,
2023) using the formula stated below:
a
.
Copper Equivalent (CuEq) is calculated using the formula CuEq % = Cu % + (6,481.488523 * Au g/t /10,000) + (94.6503085864* Ag g/t
/10,000) + (4.2328042328 * Mo g/t /10,000).
Flotation, Leaching and Comminution Testwork
A total of 22 rougher and cleaner batch flotation tests were conducted on 2 kg testwork charges from the
three domain composites. The Phase I Valeriano process flowsheet was assessed on all composites
and optimized as required:
Initial, baseline primary grind to a P80 of 120 µm, which was subsequently coarsened to 165 µm
for the epithermal composite and 200 µm for the porphyry composites. No negative impact to
metals recovery was observed during grind vs. recovery sensitivity testwork.
Copper rougher flotation with conventional copper and gold collectors.
Small dosages of fuel oil collector added to the rougher and cleaner stages to promote
molybdenum flotation.
Regrinding of the copper rougher concentrates to 25 µm to 50 µm.
Two stages of copper cleaner flotation to produce a concentrate grading +30% Cu.
Primary grind vs. recovery sensitivity testing on the three domain composites indicate that the primary
grind can be coarsened up to 80% passing 200 µm for the high grade and early porphyry composites,
and 165 µm for the epithermal composite. Based on preliminary mine scheduling, this could result in
lower capital and operating costs for the Project. The epithermal composite is slightly softer than the
porphyry composites and the finer primary grind size required for this material may be offset by the lower
hardness indices.
Second Metallurgical Program Summary and Conclusions
The second metallurgical program testwork continues to demonstrate that the process flowsheet being
developed for Valeriano is robust. Metallurgical performance was excellent for all three composites
tested and the previously untested epithermal zone appears to be responding well to the standard
Valeriano metallurgical flowsheet.
Robust copper and gold recovery projections to copper flotation concentrate of 92% to 95% and
56% to 64% respectively, in line with the first metallurgical program testwork results.
Concentrate grades of greater than 31% Cu and higher than 8 g/t Au is marketable to global
copper smelters.
Full element characterization of the copper concentrates indicate that it is generally low in
deleterious elements. Arsenic content in the copper flotation concentrates ranged from 0.09% As
to 0.24% As.
Potential for increasing gold recovery 25% to 38% via cyanide leaching of the flotation tails is an
option that merits further investigation. Combined flotation and leaching gold recoveries could
reach 90% to 97% if leaching of flotation tails is shown to be economically viable.
Cu-Mo separation could produce a saleable molybdenum concentrate and there is significant
molybdenum upside for the epithermal zone that warrants further investigation.
Valeriano material is amenable to SAG and ball milling and is of average to above average
hardness, in line with other copper porphyry deposits. Coarsening of the primary grind from 120
µm to 165-200 µm was achieved during the second metallurgical program and will have a positive
impact on the project economics.
Geometallurgical testwork is ongoing on 25 additional samples at Base Met Labs in addition to
copper-molybdenum separation and dewatering testwork on products from flotation of a bulk
composite.
SAG mill amenability (SMC tests) and ball milling amenability (Bond Ball Work Index tests) were
also completed on each composite. These suggest that Valeriano material is amenable to SAG
mill grinding with Bond Ball Work Indices ranging from 12.7 kwh/t for the wall rock to 15 kwh/t - 16
kwh/t for the porphyry composites.
Exploration Update
ATEX's Phase V exploration program is currently underway, with three rigs currently operational at site
with the fourth being mobilized this week. Holes ATXD23A and ATXD16B are progressing well and on
track for completion in late December/early January.
Hole ATXD23A is being drilled to follow up on the overprinting high-grade breccia mineralization
intersected above known porphyry units which was discovered in Phase IV drill hole ATXD26
(including 68.0 metres of 2.02% CuEq; 1.39% Cu, 0.60 g/t Au, 3.81 g/t Ag and 473 g/t Mo).
Hole ATXD16B is being drilled to further define high-grade mineralisation hosted within porphyry
units by targeting extensions to the southeast of Phase IV drill hole ATXD16A (112m of 1.42%
CuEq; 1.01% Cu, 0.57 g/t Au, 2.06 g/t Ag and 46 g/t Mo; please see
February 22, 2024 press
release
for details).
Hole ATXD27, paused during the Phase IV program will be completed by the third drill rig. It is
designed to test the northeastern extensions to mineralised porphyry and will also drill below
ATXD26 and ATXD23A, potentially adding volume to high-grade breccias intersected in Phase IV
hole ATXD26.
The fourth drill rig will complete hole ATXD25A which was paused at the end of Phase IV at the
contact between the wall rock and the porphyry.
The Company is planning to have a fifth rig mobilized in early January.
Adelaide Capital Markets
ATEX is also pleased to announce it has extended its agreement with Adelaide Capital Markets
("
Adelaide
") of Toronto, Ontario, by one year until November 30, 2025, at a rate of $8,000 per month,
and their engagement may continue on a month-to-month basis thereafter on the same terms as the
agreement unless otherwise terminated by either party. Adelaide will continue to provide investor
relations services to ATEX including advising on the Company's investor relations strategy, updating and
creating corporate content, assisting with public reporting and filings, and hosting virtual webinars and
shareholder engagement. Adelaide is independent of ATEX and is a full-service investor relations firm
specializing in providing services to small and mid-cap companies throughout North America.
Qualified Person
Dr. Owen Hatton, PhD, MAusIMM, registered with the Australasian Institute of Mining and Metallurgy
(AusIMM), is the Qualified Person, as defined by Canadian Securities National Instrument 43-101
Standards for Disclosure for Mineral Projects ("NI 43-101"), for the Valeriano Copper-Gold Porphyry
Project. Dr Hatton is Director of Exploration of ATEX and is therefore not independent of ATEX for the
purposes of NI 43-101. He has reviewed and approved the disclosure of the scientific and technical
information contained in this press release.
About ATEX
ATEX is exploring the Valeriano Copper-Gold Project which is located within the emerging copper gold
porphyry mineral belt linking the prolific El Indio High-Sulphidation Belt to the south with the Maricunga
Gold Porphyry Belt to the north, located in the Atacama Region, Chile. This emerging belt, informally
referred to as the Link Belt, hosts several copper gold porphyry deposits at various stages of
development including, Filo del Sol (Filo Mining), Josemaria (Lundin Mining), Los Helados (NGEX
Minerals/JX Nippon), La Fortuna (Teck Resources/Newmont) and El Encierro (Antofagasta/Barrick
Gold). The Valeriano Project hosts a large copper gold porphyry mineral resource: 1.41 billion tonnes at
0.67% CuEq (0.50% Cu, 0.20 g/t Au, 0.96 g/t Ag and 63.80 g/t Mo), which includes a higher-grade core
totaling 200 million tonnes at 0.84% CuEq (0.62% Cu, 0.29 g/t Au 1.25 g/t Ag and 55.7 g/t Mo), as
reported by ATEX on September 12, 2023
1
.
For further information, please contact:
Ben Pullinger,
President and CEO
Email:
Aman Atwal,
Vice President, Business Development and Investor Relations
Email:
1-647-398-9405
or visit ATEX's website at
www.atexresources.com
.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
This news release contains forward-looking statements, including predictions, projections, and
forecasts. Often, but not always, forward-looking statements can be identified by the use of words such
as "plans", "planning", "expects" or "does not expect", "continues", "scheduled", "estimates",
"forecasts", "intends", "potential", "anticipates", "does not anticipate", or describes a "goal", or variation
of such words and phrases or state that certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any future results, prediction, projection,
forecast, performance or achievements expressed or implied by the forward-looking statements.
Such forward-looking statements include, among others: future results of on-going or additional
metallurgical testing and programs; the marketability of copper concentrate that may be produced at the
Project; the impact of coarser grinding on recoveries; potential for production of a saleable molybdenum
concentrate; the length and terms of the engagement of Adelaide; the success and robustness of the
process flowsheet being developed for Valeriano; plans for the evaluation of exploration properties
including the Project; the success of evaluation plans; the success of exploration activities at the Project,
including those related to copper, gold and molybdenum; mine development prospects; potential for
future metals production; changes in economic parameters and assumptions; all aspects related to the
timing and extent of exploration activities including the Phase V exploration program contemplated in
this press release; timing of receipt of exploration results; the interpretation and actual results of current
exploration activities, including drilling and metallurgical programs, and mineralization; changes in
project parameters as plans continue to be refined; the results of regulatory and permitting processes;
future metals price; possible variations in grade or recovery rates; failure of equipment or processes to
operate as anticipated; labour disputes and other risks of the mining industry; the results of economic
and technical studies; delays in obtaining governmental and local approvals or financing or in the
completion of exploration; timing of assay results; as well as those factors disclosed in ATEX's publicly
filed documents.
Although ATEX has attempted to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its regulation services provider has reviewed or
accepts
responsibility for the adequacy or accuracy of the content of this news release.
1
Please see NI 43-101 technical report titled "Independent Technical Report for the Valeriano Copper-Gold Project, Atacama Region, Chile" by
Joled Nur, CCCRRM-Chile, and David Hopper, CGeol, with an effective date of September 1, 2023, filed at www.sedarplus.ca on October 25,
2023, for additional details on the 2023 Mineral Resource Estimate for the Valeriano project.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/233259