ATEX Announces Significant Inferred Resource of 1.41g/t Billion Tonnes Grading 0.67% CuEq (0.50 % Cu, 0.20 g/t Au 0.91 g/t Ag and 64 g/t Mo) at Valeriano Phase IV Drill Program to Commence in Early Q4 2023
ATEX Announces Significant Inferred
Resource of 1.41g/t Billion Tonnes Grading
0.67% CuEq (0.50 % Cu, 0.20 g/t Au 0.91 g/t Ag
and 64 g/t Mo) at Valeriano
Phase IV Drill Program to Commence in Early Q4 2023
Toronto, Ontario--(Newsfile Corp. - September 12, 2023) - ATEX Resources Inc. (TSXV: ATX)
("
ATEX
"
or the "
Company
") is pleased to announce the results of an updated independent Mineral Resource
estimate for the Valeriano Project ("
Valeriano
" or the "
Valeriano Project
") located in Atacama Region,
Chile. The updated Mineral Resource estimate was prepared in accordance with the Canadian Institute
of Mining, Metallurgy and Petroleum ("
CIM
") guidelines and National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("
NI 43-101
").
HIGHLIGHTS
:
NEW ROBUST RESOURCE
– ATEX is excited to report a substantial increase in the Mineral
Resource estimate for the Cu-Au Porphyry mineralization at Valeriano
.
The deposit now contains
an
Inferred Mineral Resource of 1.4 billion tonnes at a grade of 0.67% CuEq*
(0.50 %
copper ("
Cu
"), 0.20 g/t gold ("
Au
"), 0.96 g/t silver ("
Ag
") and 63.8 g/t Molybdenum ("
Mo
"))
reported at a cut-off grade above 0.4% Cu.
HIGH-GRADE CORE
– The resource includes a
higher-grade core within Early Porphyry
("EP") 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 at a 0.50% Cu cut-off), further emphasizing the potential viability of the Valeriano
deposit. High-grade core remains open in multiple directions.
A GROWING DISCOVERY
– A significant milestone for the Company achieved by the ATEX
team through diligent and systematic exploration resulting in the successful execution of the Phase
II and Phase III drill programs with all holes intersecting significant new Cu-Au mineralization. These
results greatly expanded the dimensions of known mineralization while also extending known high-
grade porphyry mineralization in the Central Trend and discovering new high-grade porphyry
mineralization within the Western Trend.
STRATEGIC VALUE –
The increased size of the Valeriano Project's Mineral Resource estimate
represents a globally significant discovery within an emerging porphyry district.
EXPLORATION POTENTIAL
– Phase IV drilling, set to commence in early Q4, 2023, is planned
to further define and expand the existing resource by targeting:
High-grade EP Trends
– specifically the Central and Western Trends that already include
multiple high-grade intercepts and are open along strike and at depth.
Expansion of the Mineralized Corridor
, currently defined with a surface area measuring
1.0 kilometre along strike by 1.0 kilometre wide and open for expansion in all directions.
Raymond Jannas, President and CEO of ATEX, commented on this milestone, saying, "We are
extremely pleased with the significant increase in the size of the Mineral Resources at Valeriano. We are
especially excited by the higher-grade core of Early Porphyry within the Central and newly discovered
Western Trends as this has the potential to drive faster payback within a potential underground mining
scenario. These results underscore our continued commitment to excellence in exploration and resource
growth. We look forward to advancing the Valeriano Project in future phases of drilling as we continue to
explore beyond the current mineralized corridor which remains open in all directions."
Mr. Jannas continued, "We would also like to express our gratitude to our shareholders, partners, and
supporters whose patience, resilience, and commitment to the Valeriano Project has played a large role
in achieving this significant milestone."
NEW MINERAL RESOURCE ESTIMATE
The following table sets out the updated Mineral Resource estimate for the Valeriano Project:
Table 1-1: Mineral Resource Estimate*, Valeriano Project, Atacama Region, Chile. SRK
Consulting (Chile)
SpA., September 1, 2023
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* Notes to accompany the Mineral Resource Estimate:
1
.
The Independent and Qualified Person for the Mineral Resource Estimate, as defined by NI 43-101, is Joled Nur, CCCRRM-Chile of SRK
Consulting (Chile) SpA, with an effective date 0f September 1, 2023.
2
.
Mineral Resources are not mineral reserves and do not have demonstrated economic viability.
3
.
Mineral Resources have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition
Standards on Mineral Resources and Mineral Reserves 2019.
4
.
Reasonable prospects of eventual economic extraction ("RPEEE") were considered by applying appropriate cut-off grades and reporting
within potentially mineable constraining shapes derived from benchmarked economic factors.
5
.
Metal prices considered were US$1,800 /oz Au, US$3.15 /lb Cu, US$23 /oz Ag, and US$20.00 /lb Mo.
6
.
Cut-off grades used for reporting were, 0.28 g/t Au for the Au-oxide and 0.40% Cu for the Cu-Au sulphide resource.
7
.
Metallurgical recoveries assumed for Au-oxide mineralization are based on Coarse Bottle Roll and CIL leach test work and are 78.0% for Au
and 50.0% for Ag.
8
.
Metallurgical recoveries assumed for Cu-Au underground amenable sulphide mineralization are based on initial flotation test work and are
90.0% for Cu, 70.0% for Au, 80.0% for Ag, and 60% for Mo.
9
.
Au-epithermal Mineral Resource estimates are reported within an optimized, conceptual, pit shell, with a pit slope angle of 45° and assuming
US$2.35/t for mining costs, US$5.26/t for processing costs, and US$1.31/oz for sales costs.
10
.
Cu-Au porphyry Mineral Resource Estimates are reported assuming bulk underground extraction techniques and 40 m x 40 m x 40 m panels
with no internal selectivity within a potential mineable envelope constraining mineralization above 0.30% Cu.
11
.
Tonnage is expressed in millions of tonnes; metal content is expressed in thousands of ounces, for gold and silver, millions of tonnes, for
copper, and thousands of tonnes for molybdenum
12
.
All figures rounded to reflect the relative accuracy of the estimates and totals may not add up due to rounding
13
.
Copper Equivalent (CuEq) is calculated using the formula CuEq % = Cu % + (6481.488523 * Au g/t /10000) + (94.6503085864 * Ag g/t
/10000) + (4.2328042328 * Mo g/t /10000) assuming prices and recoveries in note 5 and 8.
14
.
Gold Equivalent (AuEq) is calculated using the formula AuEq g/t = Au g/t + (0.00840643275 * Ag g/t) assuming prices and recoveries in note
5 and 7
PROJECT DETAILS
The Valeriano Project is located in the Huasco Province of the Atacama Region of northern Chile
approximately 151 kilometres southeast of the City of Vallenar (Figure 1).
The Property consists of 15
exploitation concessions and 2 exploration concessions covering a total area of 3,795 hectares (Figure
2). The Valeriano Project's eastern and southern boundaries are formed by the Chilean border with
Argentina and the concessions fall entirely within Chile. ATEX has the option to earn a 100% interest in
the Valeriano Project pursuant to the Option Agreement with a Chilean private company, Valleno. The
Option Agreement was originally entered into on August 29, 2019, and subsequently amended in
January 2020, February 2021 and August 2023. Pursuant to the terms of the Option Agreement, to date,
ATEX has earned a 49% interest in the Valeriano Project, having made aggregate cash payments
totalling US$4.25 million to SCM Valleno and having incurred at least US$10.0 million of exploration
expenditures on the Valeriano Project. In accordance with the terms of the Option Agreement, ATEX
Valeriano can earn a 100% interest in the Valeriano Project by paying a further US$8.0 million (half of
which may be satisfied through the issuance of common shares of ATEX, at SCM Valleno's discretion)
and by incurring an additional US$5.0 million of exploration expenditures on the Valeriano Project by
September 2025.
Valeriano and the adjacent El Encierro Project (Antofagasta/Barrick JV) which hosts a 522 Mt Inferred
Resource (0.65% Cu, 0.22 g/t Au, 74 ppm Mo at 0.5% Cu cut-off (Antofagasta June 2022)) are linked
within a large alteration zone that extends along the projects for more than 10 kilometres along strike.
Figure 1: Valeriano Project Location Map EL ENCIERRO PROJECT
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Figure 2: Valeriano – El Encierro Regional Image
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ATEX DRILLING
Drilling by ATEX commenced in 2021 and 18,029 metres of drilling has been completed by the
Company to date over three phases (Figures 3 & 4).
Phase I drilling in 2021 targeted near surface oxide gold mineralization identified by previous operators
and included 12 RC holes (ATXR01 through ATXR12) totaling 1,706.0 metres.
Phase II drilling in 2022 targeted the deeper-seated copper-gold porphyry style mineralization and
included three drill holes totaling 3,809.7 metres. Phase II achieved proof of concept on the presence of
a high-grade porphyry trend and was completed in the first half of 2022.
Phase III drilling commenced in October 2022 and completed in May 2023 and included 8 diamond drill
holes (four from surface and four daughter holes) totaling 12,513 metres with all holes intersecting
significant Cu-Au related mineralization (Figure 3). The Phase III campaign was designed with the
objectives of expanding the mineralized corridor through step out drilling along strike as well as exploring
the continuity and geometry of the high-grade trend intersected in Phase II while looking to extend it
along strike.
Figure 3: Surface projection of Cu-Au Porphyry trends, and 0.3 % Cu shell outline
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Figure 4: Surface projection of Au-Oxide pit shell with Au grades in drillholes
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GEOLOGICAL SETTING
The Valeriano Project (and adjacent El Encierro Project (Antofagasta/Barrick JV)) occurs within a north-
south trending graben formed approximately 20 Ma ago during a period of major tectonism along the
western edge of the continent. This resulted in the significant uplift of a Permo-Triassic aged package of
rhyolitic to dacitic volcanic rocks which are underlain by a granitic Paleozoic batholith. This package was
later intruded by a suite of granodioritic to dacitic porphyries during a period of extensive plutonism and
volcanism through the late Oligocene to late Miocene epochs resulting in the emplacement of the
Valeriano mineralized system (Figure 5 & 6).
Figure 5: Valeriano Project Surface Geology Map
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Figure 6: Geology cross section through the Valeriano system showing lithology and alteration related to
Mineralization.
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GEOLOGICAL MODELLING
A series of 3D models (Figure 7 & 8) were created for the Valeriano Project including lithology,
alteration, mineralization, and structural models. The models were derived using datasets collected
during core processing including oriented structural measurements, logging and observational records,
geochemical analysis, and hyperspectral image analysis of hole ATXD17. All models were created
considering the temporal relationships between phases of intrusions and their impact on the host rocks.
Lithologies were modelled based on observations of cross cutting relationships in core and were
grouped into two main groups, host rock units and intrusive units. Within the intrusive group, three
phases of intrusion were differentiated and subdivided by relative timing into the EP, Inter Mineral
Porphyry ("
IP
") and Late Porphyry ("
LP
") units. These units intrude into a sub-horizontal and gently
dipping suite of rhyolitic volcanics ("
RHYO
") which become fractured, brecciated, altered, and
mineralized when in contact with the intrusive suite. This brecciated RHYO forms a sub lithology called
the Rock Milled Breccia ("
RMB
") forming an envelope around the mineralized porphyry units and is
mineralized for up to 700 metres from the porphyry contact.
Alteration within the system exhibits a textbook zonation from high temperature potassic ("
PKB
")
alteration associated with the EP units at the core of the system through to quartz sericite ("
QS
") and
most distally transitioning to advanced argillic ("
AA
") within which the epithermal gold system is hosted.
These zones were modelled through grouping of mineral assemblages and applying the results of
hyperspectral analysis from hole ATXD17 to other holes.
The mineralization associated with the near surface epithermal gold system and the porphyry style
mineralization was likewise modelled using logging and geochemistry data. The alteration assemblages
observed are divided into four main domains, the oxidized ("
OX
") precious metal bearing near surface
domain, the high sulphidation ("
HS
") domain overlying the porphyry style mineralization, occurring from