Barrick unveils new gold discovery

No.26 / May 2015
www.cexr.cl
3
Project
showcase:
Bufalo, Bufalo
Este
4
Reforming
concessions
8
Red Eagle, El
Tigre list in
Santiago
11
Q&A:
Li3 Energy
Barrick unveils new gold discovery
ABX believes it has another Veladero on its hands.
B
arrick Gold (TSX: ABX) has announced a major new gold discovery, named Alturas, on the El
Indio gold belt. The find follows
a reevaluation begun several years ago of
the 140km belt on which ABX controls all
almost of the prospective ground.
“This area hosts some of the world's largest gold deposits, including our own
Veladero and Pascua Lama and it’s why
this region continues to be core for us…
We identified numerous targets but Alturas was the clear frontrunner,” CoPresident Jim Gowans told analysts on a
conference call last month.
Located 30km S of its former El Indio mine in Region IV, the deposit has drawn
comparisons in terms of nature and geology with ABXs Veladero mine, in
neighboring San Juan province, Argentina
although with significantly higher grades.
“While it is early days, Altuas has the makings of another Veladero, which has
been one of our great core mines, well
outperforming its original production
expectations,” Gowans said.
So far, ABX has drilled 35 holes, many
intercepting higher grade mineralization
measuring 50m-150m thick. Highlights
include 97m @ 4.4g/t Au in hole ALT011, 103.5m @ 1.64g/t Au in hole ALT017 and 170m @ 2.76g/t Au in hole ALT033.
© 2015 Chile Explore Report All Rights Reserved
Photo: Barrick Gold
CORE REGION
Alturas is located in the 140km long El Indio belt where ABX holds almost the
prospective ground.
“While it is early days,
Alturas has the making
of another Veladero.”
Jim Gowans, Barrick
Gold
But ABX believes the deposit forms part
of a large mineralized system which extends well beyond the limits of the current drilling area. “We have identified
an area of more than 1km2 to date but
we believe that there is lots more here,”
Gowans noted.
www.cexr.cl
No.26 / May 2015
Feature
Barrick, QPX
join forces
B
The deposit has drawn comparisons in terms of nature and geology with ABXs Veladero
mine.
MAIDEN RESOURCE
Photos: Barrick Gold—QPX
Photo: Barrick Gold
Jim Gowans, Co-President of
Barrick Gold
ABX now plans continue to drilling
through to the end of the season in May
and hopes to report an initial resource
by the end of the year, although an initial scoping study due for completion
later this month.“This discovery remains
open in multiple directions and our focus
going forward will be on defining its full
extent as well as exploring for additional
targets nearby”, Gowans noted. ABX
recently applied for permits to develop
102 drill platforms at the 321h site over
the next five years.
CER
arrick Gold (TSX: ABX) and
Quantum Pacific Exploration
(private) have formed a partnership to explore ABXs properties in northern Chile.
Under the five year deal, the two firms
will contribute up to US$30M per year
in exploration, sharing the costs equally. The deal can be renewed for a further three years. The exploration will
be managed by QPX.
Any gold deposit discovered on ABX
property will be remain 100% owned
by ABX while copper projects will be
50% owned by each company.
“We have no plans to expand our existing copper position. Yet we do seek
to maximize the value of those assets
we already own, including large land
positions in Chile in some of the
world's most prolific districts for copper,” said ABX, explaining the justification for the deal.
According to Sernageomin, ABX owns
one of the largest portfolios of mining
property. However, the deal with QPX
does not apply to areas where ABX is
already exploring, including zones
around Zaldivar (Region II), PascuaLama and Cerro Casale (Region III) and
El Indio (Region IV).
QPX is a private exploration company
owned by the Quantum Pacific Group
focused on the search for copper deposits in Chile. As well as a world-class
team of experts with a proven track
record of copper discoveries, the firm
also uses proprietary technology to
develop new strategies and tools designed to discover deposits faster and
cheaper than conventional methods.
Alturas lies next to the border with Argentina.
© 2015 Chile Explore Report All Rights Reserved
2
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No.26 / May 2015
Project Showcase
Available JV Exploration Alliance Areas:
Búfalo and Búfalo Este Projects
Generate and drill test targets in highly prospective and permissive covered zones that have had little to
no ground work completed by SQM and little reconnaissance by 3rd party explorers.
A
s part of a recent review of SQM’s property portfolio,
focusing on identifying within the Domeyko structural
corridor and the Eocene-Oligocene copper metallogenic belt, under-explored yet permissive sectors for
potential world class porphyry copper mineralization, five areas
have been identified. These are: Búfalo (23,950 ha), Búfalo Este
(5,800 ha), Los Morros (11,700 ha), Jardines (10,800 ha), and
Argomedo (17,720 ha). These sectors lie between the Gabriela
Mistral Mine (460Mt @ 0.37% measured oxide Cu) and the Escondida copper district (4.069Bt @ 0.72% Cu).
Previous work concentrated on outcrops within the 80%
alluvial/colluvial covered project area.
The Bufalo district holds a remnant lithocap of advanced argillic alteration overlying Paleocene-Eocene volcaniclastic
sequence that hosts hypabyssal intrusions with associated
breccias and mineralization. Mineralization in scout drilling
ranges from disseminated pyrite through veinlet hosted anhydrite-pyrite-chalcopyrite-enargite-bornite. Seeking exploration partner to vector to potential mineralization undercover.
Scout drilling on some few hundred hectares identified the
presence of veinlet hosted copper mineralization (single sample values over 0.5% Cu), structural zones ([email protected]%Cu;
BAR04 258m), and magmato- hydrothermal alteration.
© 2015 Chile Explore Report All Rights Reserved
Contact:
Daniel Jimenez
Senior VP of Exploration
[email protected]
+56998223038
[email protected]
Darryl D. Lindsay, PhD, PGeo
Manager Metal Business
Development
[email protected]
+56966488511
Tomas Esguep
Metal Business
Development Engineer
[email protected]
+56966373482
3
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No.26 / May 2015
Feature
Tough nut to crack
Plans to reform the mine tenure system have made little progress.
Photo: Chilean Presidency Press
T
welve months ago, Chile’s new
government caused a stir with
the announcement that it was
studying changes to the mining
property in order to facilitate mineral
exploration and encourage the entry of
new players. But since then there has
been little progress.
Chile’s court-based system of tenure is
almost unique among major mining jurisdictions, in allowing private parties to
hold onto concessions indefinitely in exchange for minimal payments (US$/h)
and no work commitments.
Supporters see it as central to the success of Chile’s mining industry, which has
attracted foreign investment totaling
US$90B over the last three decades and
lifted copper production by 500% to almost 6Mtpa today.
But the strong guarantees it offers investors makes it rigid and open to speculation. The number of concessions has
grown steadily over the last twenty years
so that huge areas of copper-rich northern Chile are tied up, mostly in the
hands of major mining companies, including BHP Billiton, Codelco and SQM.
National mining and geology service SERNAGEOMIN estimates that around 60%
of mine concessions are held by just ten
parties (the figure is similar for exploration concessions).
The lack of work commitments mean
there is no way for the authorities to require companies to work the land. A
study by the Chilean Copper Commission
(Cochilco), the results of which were presented at the Chile Explore Congress last
August, found that perhaps up to 70% of
mine property is not linked to any investment.
“There is clearly an issue in Chile with the
number of concessions which are not
being worked,” SERNAGEOMIN’s national
director Rodrigo Alvarez said recently.
The mining industry, led by SONAMI, has resisted change to the current system.
“We are not paralyzed… we are continuing with all our commitments”.
President Michelle
Bachelet
patchwork where concessions have been
let go. Once available land is found, geologists must quickly assess its potential
before deciding to proceed with an application, a process which can take several
months, even for an exploration concession which lasts just two years.
“We found that very challenging,” says
FRUSTRATION
For newcomers to the industry, the situa- Lawrence Winter, VP Exploration at Altius Minerals (TSXV: ALS).
tion can be extremely frustrating.
Building up a position in Chile means pai- In comparison, staking a claim in his natinstakingly identifying holes in the ve Newfoundland is a breeze. The online
© 2015 Chile Explore Report All Rights Reserved
system there means geologists can stake
a claim and pay the fees in the time it
takes to buy an e-book on Amazon.
Faced with these hurdles, many foreign
exploration firms have thrown up their
hands and headed home. Hence the government’s interest to introduce changes.
But progress has been scant. Last November, the government included a proposal to introduce rising patents, encouraging companies to give up unworked
land, in a package of pro-investment
measures. But the idea was quietly dropped after running into stiff opposition
from the mining industry.
So has it been discarded completely?
“The Mining Ministry is still working on it
and talking to the relevant actors”, President Michelle Bachelet told CER last
month.
WORKING ON IT
But with copper prices slumping sharply
since the start of the year and mine investment sliding, the government is no
hurry to introduce drastic change, the
president said.
4
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No.26 / May 2015
Photo: Sernageomin
Feature
The plans to overhaul the concessions
system is not the only reform in doubt.
Since pushing through an US$8B tax hike
last year, the Bachelet administration
has proposed radical changes to the
electoral system, public education, and
water rights, among others. Business
leaders blame the government’s radical
agenda for the cooling economy, which
last year grew at its slowest rate since
the 2008-2009 financial crisis.
“It would be good to limit the reforms
and create more space for trust”, said
Alberto Salas, president of national mining association SONAMI, after being
unanimously elected head of business
confederation CPC last month. Industry
is now mustering forces to block a prounion overhaul of labor laws.
Meanwhile, the government and Chile’s
political class as a whole has been sucked into a miasma of scandal, involving
illegal payments to dozens of politicians
and their relatives, including ministers
and a former president. Two of Chile’s
richest men and former Deputy Mines
Minister Pablo Wagner have spent time
in jail while they are investigated on bribery charges while angry shareholders
pushed out both controlling chairman
Julio Ponce and veteran CEO Patricio
Contesse from nitrates miner SQM
(NYSE: SQM) over questionable contributions. The scandals have even touched
Bachelet, whose son is accused of using
© 2015 Chile Explore Report All Rights Reserved
his political connections to facilitate a
succulent land deal.
Despite the endless accusations and falling poll ratings, the government is determined to push on with its transformational agenda. “We are not paralyzed…
we are continuing with all our commitments,” said Bachelet in April. Unveiling
a package of measures to clean up political finance and stamp out corruption,
the President announced that the government will begin preparatory work
for a new constitution, the third key
plank (alongside tax and education) in
her 2013 manifesto.
But the lack of progress in reforming mine property rules is not just a result of
changing economic or political conditions. It remains a tough nut to crack.
IT IS NOT EASY
“It is not easy”, admits Cochilco head
Sergio Hernandez. “None of the solutions that people have dreamt up is economically or constitutionally easy”.
“It would be good to limit the reforms and
create more space for
trust”.
Alberto Salas,
SONAMI and CPC
Photo: Cochilco
Rodrigo Alvarez, national director of
SERNAGEOMIN.
“There is clearly an issue in Chile with the
number of concessions
which are not being
worked”.
Rodrigo Alvarez,
Sernageomin
The proposal to introduce rising fees
would have freed up unworked land but
would see more land in the hands of those with deepest pockets.
“Only those that can pay will pay and it
will favor the concentration of the industry”, Hernandez noted.
An alternative could be to fine companies which do not invest within a certain
timeframe or allow unused concessions
to expire. But that would alter the conditions under which the concessions were
acquired, infringing constitutional property rights.
Moreover, changing the laws behind the
system is legislatively tricky. Qualified
majorities are required to change both
the Constitution and the Organic Law on
Mine Concessions. While the government enjoys narrow majorities in both
houses of Congress, some of its more
supporters may support more radical
measures that it or the mining industry
would like.
Before it reaches that point, the government wants a broader debate on what
changes are possible and desirable.
“It’s a legal problem that must be worked on without generating too much
noise and by reaching agreements,” Hernandez concluded.
CER
Sergio Hernandez, executive vice-president
of the Chilean Copper Commission
5
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No.26 / May 2015
Feature
Dark before dawn
Copper prices could test new lows before recovery sets in.
A
Photo: Chilean Ministry of Mining
t the meetings and parties of
the annual CESCO week gathering in Santiago, one fact was
certain: the copper price is going to recover. With Asian demand rising
apace and a lack of major projects in development, most are confident that the
global market is set to move back into
significant deficit by the end of the decade.
Millions of people in China, India and the
rest of Asia are moving to the cities in the
greatest migration in history, creating
huge demand for new roads, homes and
other infrastructure, all of which need to
be wired and plumbed.
“With the Chinese economy growing at
5% and India at 7%, I would say this demand is practically assured”, said Nelson
Pizarro, CEO of Chile’s state firm Codelco.
There is some doubt from where the additional production will come. All of the
projects considered likely to be developed will be in production by 2024 while
most of the rest be built by 2030, creating considerable unmet demand, the
executive noted.
Codelco is confident that copper prices
will average a little over US$3 a pound in
Market-watchers fear that copper prices could test new lows before a recovery
can set in.
Photo: Codelco
the long term, more than sufficient to
justify the US$25B worth of investment it
is undertaking to extend the life of its
mine operations.
Codelco CEO Nelson Pizarro is looking
to Asian demand to justify the Company’s huge investments.
© 2015 Chile Explore Report All Rights Reserved
For a start, the market has still in the process of absorbing several million tons of
production from new mines, in Chile,
Peru and Zambia, conceived at the height
of the commodity boom.
“We probably looking at a period of five
FRESH LOWS
But closer to home, other market- years of above trend supply growth,
watchers fear that copper prices could starting in 2012,” noted Stephen Briggs,
test new lows before a recovery can set senior metals strategist at investment
bank BNP Paribas.
in.
Producers in Chile are hopeful that this
surge in output may be mitigated by supply restrictions. Floods in Chile, strikes
and other events have whittled away at
the overhang predicted for this year, resulting in a more tightly balanced market,
said Diego Hernandez, CEO of Antofagasta plc, leaving the markets tightly balanced.
“Any supply restriction or increase in demand as the result of the stimulus packages expected in China this year will result in more favorable conditions in
2H15,” concurred Victor Perez, Codelco’s
Vice-President for Commercial Planning.
But this optimism may be ignoring important developments in the Chinese
“With the Chinese
economy growing at 5%
and India at 7%, I would
say this demand is
practically assured”.
Nelson Pizarro,
Codelco
6
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No.26 / May 2015
Feature
LME CU PRICES, US CENTS/LB
500
450
Photo: Exploration Forum
400
350
300
250
27-Apr-10
21-Feb-11
18-Dec-11
13-Oct-12
economy. A slowdown in construction
has seen steel demand fall by 5% over
the last six months, noted Max Layton, a
senior metals analyst at investment bank
Goldman Sachs. And where steel goes,
copper – consumed later in the construction process - usually follows.
WARNING SIGNS
“This is the canary in the coalmine for
copper and it is screaming bearish”, the
analyst warned.
Moreover, the rally in the US dollar and
lower prices for energy and inputs will
sharply reduce costs for producers, the
most reliable indicator for copper prices
in the long term.
As a result, copper prices could come off
another US$1,000 per ton (45 cents a
pound) over this year and next, Layton
said.
“We are extremely bearish for copper
over the next 12-18 months,” the analyst
said.
Lower prices will mean more pain for an
industry which has escaped relatively
unscathed compared to producers of
other commodities. After all, coal and
iron ore prices have fallen more than
70% in recent months.
But as companies are forced to reduce
costs and delay investments, they could
be setting the stage for an even sharper
recovery.
© 2015 Chile Explore Report All Rights Reserved
9-Aug-13
5-Jun-14
1-Apr-15
“We are extremely
bearish for copper over
the next 12-18 months”.
Max Layton,
Goldman Sachs
Max Layton of Goldman Sachs.
“The pipeline of new projects thins out
dramatically after 2016; the longer the
price stays low the thinner it will become,” noted Briggs.
Once through the current impasse, Layton agreed that the outlook is brightens
significantly.
“It is just getting there will be the problem.”
CER
Chile Explore Report is a monthly newsletter,
providing independent and authoritative
coverage of Chile’s mineral exploration sector.
For information about subscriptions, please contact:
Tom Azzopardi
Email: [email protected]
7
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No.26 / May 2015
Feature
Regional potential
El Tigre Silver and Red Eagle Mining sign up to Santiago Venture Market.
Photo: Red Eagle Mining
T
Red Eagle Mining’s San Ramon will be Colombia’s largest gold mine once it enters
production next year.
SOUTH OF THE BORDER
ELS owns the El Tigre property in the Sierra Madre Ag-Au belt in the northern
Mexican state of Sonora, just a few kilometers from the Texas border. The mine
was in production in the early C20, producing 70-75Moz of silver and 325350,000oz of gold between 1903 and
1938 when flooding forced its closure.
ELSs initially plans to begin production
from tailings left over from the mine’s
Photo: El Tigre Silver
wo more Canadian juniors have
become the latest to join the
Santiago Stock Exchange’s Venture Market, which get its official
launch this month.
El Tigre Silver (TSXV: ELS) and Red Eagle
Mining (TSXV: RD) join Chilean Metals
(TSXV: CMX) and Puma Exploration
(TSXV: PUM) on the long-awaited scheme designed to strengthen links between
Chile’s largely-divorced financial and mining sectors and give local investors a
rare opportunity to invest in the largest
sector in the country’s economy.
Under the deal signed last year between
the Santiago and the Toronto Stock Exchange Venture, Canadian firms can list
their shares in Chile in the local currency
without any additional reporting requirements and at minimal cost. To further
facilitate the cross-listing scheme, Chile’s
securities and insurance regulator SVS
has exempted companies listed in Canada, as well as those in Colombia, Mexico
and Peru, from having to register their
shares before listing in Chile.
While CMX and PUM are both firmly exploration plays, in ELS and RD, Chilean
investors gain access to two companies
which are ready to move their projects
into production.
El Tigre Silver plans to process tailings in northern Mexico.
© 2015 Chile Explore Report All Rights Reserved
three decades of production (1.3Mt @
83g/t & 0.279g/t Au of proven and probable resources). An NI43-101 compliant
PFS completed in August 2013 suggests a
400tpd processing plant could produce
2.63Moz Ag and 10,500oz Au over ten
years for an initial outlay of just C$4.5M.
“We’ve tested all of the material, we’ve
done the process engineering on the Merrill Crowe system, we even have the
equipment ready to go,” CEO Wade Anderson told CER.
Construction would begin as soon as the
capital can be raised with production
beginning ten months later.
But that is just the starter project to fund
further exploration of the deposit, first
discovered by James Taylor in 1896.
Exploratory drilling by ELS between 2010
and 2013 (9,411m) has already identified
9.875Mt @ 77.8g/t AgEq of indicated
resources and 7.042Mt @ 71g/t AgEq in
inferred resources at the former mine.
But the potential could be much greater,
says Anderson, noting that ELSs drilling
focused on just 1.2km of the 5.3km
known El Tigre strike.
A FIRST FOR COLOMBIA
After achieving approval from Colombia’s
environmental authorities earlier this
year, RD is preparing to build the San
8
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No.26 / May 2015
Feature
management see significant upside from
its current market capitalization of just
US$25M.
Photo: Red Eagle Mining
A REGIONAL STORY
San Ramon will produce 70,000ozpy Au.
© 2015 Chile Explore Report All Rights Reserved
“We are increasingly
interested in tapping capital pools in Chile, but
also throughout Andean
region, via the MILA.”
Patrick Balit,
Red Eagle Mining
satellite targets within the Santa Rosa
land package. If successful, RD has ready
plans to double capacity at the plant to
2,000tpd at a cost of just US$14M.
“The idea is to have several mines feeding one central mill,” explains Balit.
With construction now just a couple of
months away, RD is expecting a significant rerating of its share price. Annual
cash flow from the mine expected to
average US$55M in its first two years so
Photo: Red Eagle Mining
Ramon mine, located 70km N of Medellin. Construction is due begin later this
year and the mine should enter production by mid-2016, director of corporate
development Patrick Balit told CER.
Once in production, Red Eagle Mining
will be operating the largest gold mine in
Colombia.
RD plans to invest US$74M building the
mine, largely paid through a US$60M
credit facility which closed in March and
a US$5M equity financing. RD is now in
the process of securing another US$15M
of equity financing which is one of the
conditions for drawing down the loan.
Development of the project has been
remarkably swift with just four years passing between the drilling of the first holes to the completion of the FS.
Balit attributes this speedy progress to
the “Australian” approach adopted by RD
management, drilling sufficient reserves
to bring the mine into production rather
than waiting to understand the complete
size of the deposit.
But the geological and engineering work
has been accompanied by careful development of strong relations with local communities, including more than 80
stakeholder meetings, from before the
first drill hole was sunk.
The project’s relatively low capex means
even at a gold price of US$1,300/oz it
offers an IRR of 53% and could pay back
on the investment within less than two
years of production.
However, with production set to trail off
after the first two years from 70,000ozpy
to 40-50,000ozpy, RD is preparing to resume exploration in 2H15 to delineate
additional reserves, focusing on three
As well as upside potential, the arrival of
ELS and RD to Chile’s venture market also
highlight another aspect of the exchange’s plan: becoming a regional market.
Both Colombia and Mexico are members
of the newly-formed Latin American Integrated Market (known as MILA, from its
initials in Spanish), which allows investors in all four countries (Peru is the
fourth) to trade in shares in the other
three.
RD has already some wealthy names
behind it, including Liberty Mines and
Metals, Orion Mine Finance, Appian Natural Resources Fund and Ross Beaty,
who has been a shareholder since before
the shares went public.
But after maintaining a relatively low
profile while it negotiated Colombia’s
fledging process for approving new metallic mines, RD is now ready to tell its
story, possibly to new investors in the
region.
“We are increasingly interested in tapping capital pools in Chile but also
throughout Andean region, via the MILA”, explains Balit.
For ELS too, the listing offers an opportunity to reach out to Latin American investors and potentially to develop a secondary offering to finance projects in Mexico or elsewhere in the region.
“It’s certainly a logical development especially if there’s a lot of interest or if we
locate a viable local property”, said Anderson. CER
Red Eagle plans to resume exploration drilling this year.
9
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No.26 / May 2015
Feature
Exploration slump could pressure future supply: SNL
Industry not spending enough on grassroots activity.
dustry.
Recent drops in metals prices over the
last 12 months suggest spending on exploration will fall again this year although
to a lesser extent to that seen in recent
years, Jason Goulden, director of SNL
Metals & Mining, said at the Exploration
Forum in Santiago, predicting a decline of
10%-15% for 2015.
According to SNLs Corporate Exploration
Strategies report, spending on nonferrous exploration slipped to US$11.4B
last year, down 26% from 2013 and
down almost 50% from the record
US21.5B set in 2012.
Although late 2014 saw an increase in
financing for junior companies, this was
largely a catch-up to the dearth of activity earlier in the year. As a result, most
juniors will remain cash-strapped and
unable to fund significant expenditure.
Meanwhile, spending from majors will
remain flat as the majority continue to
reduce budgets to help bring down costs.
Although exploration expenditure will
pick up again as metals prices recover,
Photo: Exploration Forum
T
he sharp decline in mineral exploration, particularly greenfield
activity, could be storing up problems for the global mining in-
Jason Goulden predicted a decline of 10-15% in spending on exploration in 2015.
falling discovery rates for new metals
deposits, especially gold, suggest that the
mining industry is not investing sufficiently to ensure future production.
“The apparent decline in discovery rates
is unlikely to affect production in the
near term, but the discoveries in recent
years will provide the pool for new deve-
WORLDWIDE EXPLORATION SPEND VS. METALS PRICES
“The gradual erosion of
grassroots could
potentially put pressure
on future production
due to a lack of new
discoveries”.
Jason Goulden,
SNL Metals & Mining
lopments in the future,” Goulden explained.
Key is the relative decline in grassroots
exploration compared to minesite exploration. Early-stage exploration today accounts for just 30% of spending on exploration, down from around 55% two decades ago. Instead companies are focusing
on less expensive and less risky exploration within existing mines, the analyst noted.
“This is fine from an individual company's
perspective but the gradual erosion of
grassroots could potentially put pressure
on future production due to a lack of
new discoveries”, he said.
CER
© 2015 Chile Explore Report All Rights Reserved
10
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No.26 / May 2015
Interview
Luis Saenz, CEO
LI3 ENERGY (OTCQB: LIEG)
LIEG hopes upcoming policy changes
will create opportunities for its Maricunga Li project.
CER: What the origins of LIEG?
LS: LIEG was formed in November 2009.
After looking at properties in Argentina,
we focused on the Salar de Maricunga,
which we acquired from a group of Chileans, who are still shareholders. Shortly
thereafter we gained the South Korean
steelmaker Posco as a shareholder in the
company. They invested a total of
US$18M which helped us with the acquisition and the drilling campaign that ultimately resulted in a NI43-101 resource
estimate.
CER: What size of project are you looking at?
LS: Our target was to produce 15,000tpa
for 20 years and that’s what the first estimate gave us. It is a good number for
and what we are expecting in terms of
market demand and supply and the economics, using technologies such as
Posco’s, could be very exciting.
CER: How does it compare with the projects in development in Argentina?
LS: Maricunga has double the grade of
most of the projects in Argentina. It
might be a smaller project in terms of
years, but it will be a very competitive
project and, if it’s in Chile, it’s in the right
jurisdiction, so long as the regulation
changes.
CER: What impact did the failure of the
2012 lithium tender have on LIEG?
LS: To be blunt I lost a lot of confidence
in Chile. It was very tough for us to raise
any money seeing that there was no
clear path forward for any new lithium
projects. If there was one country where
I expected things to work out it was going to be Chile because of its mining history and its general legal and political
stability. And that didn’t happen.
CER: How have you turned that around?
LS: We did a deal whereby a Chilean investor acquired 51% of the project for
cash and a commitment to fund the project to feasibility and permitting. Although it meant giving up control it was
still attractive as we no longer have to
© 2015 Chile Explore Report All Rights Reserved
worry about funding. We have now restarted a US$2.5M work program in the
Salar that will result in a new resource
calculation in 2H15. This will include the
Cocina properties which we acquired last
year.
CER: What do the Cocina properties
mean for the project?
LS: They predate the restrictions on lithium production and we are carrying out
pumping tests that will tell us whether
we can use them as a starter project until these issues are resolved. But we fully
expect the issues in Chile to be resolved
before we get into production.
CER: What do you make of the call by
the lithium commission for greater state
involvement?
LS: It’s a natural reaction from those who
believe in protecting natural resources.
Whether the state is going to have a
state lithium company like Codelco is up
to the state. Codelco owns properties in
the Maricunga and Pedernales Salares so
if they wanted to do something with
those properties they obviously have the
ability and the wherewithal do it.
CER: Do you think the problems at SQM
affect the situation?
LS: I think it’s going to be healthy for the
Chilean lithium industry. I hope that it
makes the government realize that you
do need more competition and more
new players. Although the lithium industry is small, it was quite controlled. Reading between the lines one of the conclusions was the government’s take in Rock-
wood’s and SQM’s operations in Salar de
Atacama were too low and that needs to
change. And whether it is through arbitration or renegotiations at some point
SQM was going to have to face that.
CER: The commission also highlighted
environmental aspects of the lithium
industry.
LS: Something the commission took a big
interest on was the new technologies for
the production of lithium. Posco has a
technology which they have already tested in Chile and that has clear economic
advantages in terms of recovery rates
but its main advantage is that dramatically reduces the use of evaporation
ponds. In some cases, it could eliminate
them completely, depending on the
chemistry of the brine. It is very different
from the conventional processes used in
the Salar de Atacama.
CER: The government is now preparing
a new lithium policy. What are you
looking for?
LS: The new regulations are going to be
very focused on maximizing the return to
the state but also allowing a free market
to new entrants, something the failed
lithium tender did not do. I want to see a
clear formula about how I can exploit
those properties. I need to some news
that I can take to my investors and say
we now know we can produce in Maricunga. Now let’s get going because it is
one of the best in the world.
CER: Thank you.
11
www.cexr.cl
No.26 / May 2015
Exploration News
Teck Resources (TSX: TCK)
Has given up its option with Mirasol Resources (TSXV: MRZ) to
earn up to 75% of the Rubi Cu project in Region III. FQM completed a 6,054m, 16-hole reverse circulation and diamond drilling campaign, focused on a series of covered targets at the
Lithocap prospect and a large gravel pediment-covered area at
Pampa del Inca. The Portezuelo and Quebrada del Salado prospects were not drilled. Assays returned low-level Cu and Mo
associated with visible chalcopyrite and chalcocite, over narrow intervals of 2m-6m, in some case with several intersections of this type per drill hole. The highest assays are within
the range of 500-3,150ppm Cu and 20-165ppm Mo. These
anomalous assays were found predominantly in the Lithocap
area and are associated long intervals of sericite-clay-chlorite
alteration with abundant disseminated pyrite and gypsum
veins. MRZ will now compile and analyze data from the geophysics, geochemistry and drilling carried out by FQM, focusing
on the Lithocap, Portezuelo and Quebrado del Salado areas to
identify untested Cu–Mo and Au drill targets.
Has terminated its back-in right at the Ergama Au-Cu prospect
in western Turkey. As a result, Mariana Resurces (AIM: MARL)
has regained 100% ownership of the 2,168h property with TCK
retaining a 2% NSR on any future production. “The Ergama prospect contains both high and intermediate sulphidation epithermal gold mineralisation assemblages and a quartz(+/-clay)
lithocap, both of which are interpreted to overlie porphyry
style gold-copper mineralization at depth”, said MARL, noting
that drill testing of the highest priority geophysical and geochemical targets at Ergama has yet to be undertaken. “We will
now assess how best to undertake exploration, be it Joint Venture or MARL, to test the defined untested geophysical anomalies which will ultimately dictate the future of Ergama,” said
MARL CEO Glen Parsons.
Photo: Mirasol Resources
Photo: Mariana Resources
First Quantum Minerals (LSE: FQM)
...
Ergama Au-Cu prospect in western Turkey.
Lundin Mining (TSX: LUN)
Mirasol Resources’ Rubi Cu project in Region III.
B2Gold (TSX: BTO)
Has completed the due diligence review in connection with the
binding letter agreement with Arena Minerals (TSXV: AN),
granting BTO an option to acquire up to 60% in the Pampa
Paciencia and Cerro Barco properties. The properties form part
of ANs Atacama Cu property in Region II, held under option
from SQM (NYSE: SQM). To acquire the stake, BTO must spend
a minimum of US$20.5M on the properties over a five-year
period and make payments of US$630,000 to SQM and of
US$2.5M to AN over three years period.
© 2015 Chile Explore Report All Rights Reserved
Has unveiled mineral reserve estimate for two new recently
discovered ore bodies at its Candelaria Cu-Au mine, Region III.
LUN said Susana and Damiana, to the S and below the current
open pit, contained 14.9Mt @ 1% Cu of Proven and Probable
reserves which can be accessed from existing and new portals.
In total, LUN has increased open pit reserves by 24% or 66.3Mt
@ 0.58% Cu, including 27.9Mt @ 0.68% Cu, 0.16g/t Au and
2.31g/t Ag from Susana and Damiana. The increased reserves
are expected to extend Candelaria’s mine life by around three
years. CEO Paul Conibear said LUN currently has ten drills carrying out step out drilling on five different underground orebodies, the result of which will be included in its reserve and
resource update and optimized mine plan, both due for release
in 3Q15.
12
www.cexr.cl
No.26 / May 2015
Exploration News
Li3 Energy (OTCQB: LIEG)
NGEx Resources (TSX: NGQ)
Has begun the next phase of exploration and development at
its Maricunga Li project in Region III. Work began in February
with pumping tests and geophysical work and other activities
to progress towards production. LIEG also announced
measures to reduce costs including an agreement with shareholders to reduce liabilities, including US$800k in penalties,
fees and interest relating to Registration Statement penalties.
The board also approved a series of measures to reduce costs
and preserve cash including, lower administrative and operational expenses and salary reductions for senior management
and letting go of key employees. “This is a significant milestone
for LIEG in its efforts to improve its balance sheet,” LIEG said.
But directors decided to continue the quotation of LIEG shares
on the OTCQB marketplace. “Whereas many other companies
have been forced to shut down given the difficult market conditions, Li3 continues to move forward in conjunction with the
positive signs coming from the Chilean government,” said CEO
Luis Saenz.
Has intercepted 42m @ 1.13g/t Au and 145.6g/t Ag at hole
VRC89 at its Filo del Sol Cu-Au-Ag project in Region III and in
San Juan province, Argentina. “The elevated Au grades suggest
that this hole may be proximal to a feeder,” NGQ said. NGQ
said the results from the 14-hole campaign extend the high
grade Ag resource and confirm it is part of a much larger mineralized system. Hole VRC93 intercepted 26m @ 0.48g/t Au
and 39.5g/t Ag. “These drill results, together with the new surface geology mapping, indicate that the Filo del Sol hydrothermal system extends well beyond the resource area and demonstrate the potential to both significantly expand the current
resource and discover new deposits, including feeder zones,
within this large system,” said CEO Wojtek Wodzicki.
Has obtained positive results from tests on a composite sample
of milled leach residue at the Prat plant in Region II, using proprietary technology developed by a subsidiary of ProPipe SA.
The test work involved agitation leaching of the composite
which averaged 0.49% CuT/0.46% CuS followed by direct deposition of copper from the PLS onto cathodes in a proprietary
EW circuit. Optimum results were obtained from a 45% solids
density pulp and a 30g/l acid concentration, resulting in an
84.4% recovery, which is estimated to translate to 81% recovery of CuT in industrial conditions. COP now plans to complete
evaluation of the project through resource definition, additional metallurgical test work and an engineering study. “Subject to
a positive outcome to these studies and availability of financing, our objective is to put Planta Prat back into production as
soon as possible”, said CEO Alan Stephens. COP has an option
to earn 51% in Prat by making a final US$100k payment on expansion of the plant to 1,200tpy Cu.
Auryn Mining Chile SpA (private)
Has reported results from the diamond drilling campaign at its
Altos de Lipangue project in the Metropolitan Region, around
30km NW of Santiago. The holes were planned to explore the
gold zone intercepted by drill hole L15-24 (45m @ 0.78g/t Au).
Hole L15-26 intercepted 5m @ 1.04g/t Au, 14.83g/t Ag and
0.12% Cu and 3m @ 0.39%, 10g/t Ag and 0.07% Cu, while hole
L15-26A intercepted 2m @ 2.63g/t Au, 2g/t Ag and 0.02% Cu
and 23m @ 0.5g/t Au, 8.13g/t Ag and 0.06% Cu. “The increase
in sericite content and the predominance of stockwork veining
distinguishes this zone from the deeper Gordon breccia zone”,
said Auryn, noting that the increase in the thickness of Au mineralization down dip necessitates a deep hole below L15-26A
to follow up with the latest results.
© 2015 Chile Explore Report All Rights Reserved
Photo: NGEx Resources
Coro Mining (TSX: COP)
Filo del Sol Cu-Au-Ag project in Region III.
EPG Exploration Fund (private)
Has completed three diamond drill holes at its Juan Soldado
IOCG project in Region IV, according to farm-in agreement
partner Southern Hemisphere Mining (ASX: SUH). Drill core
recovered to date indicates typical IOCG geology with intense
alterations comprising actinolite, albite, silica, magnetite and
occasionally chalcopyrite. “Although it is too early to say
whether EPG will continue the farm-in agreement, they have
advised me that they will extend past the minimum commitment of 1,000m. Indications to date have been encouraging
and we look forward to the assay results,” said MD Trever Tennant. Under the agreement, EPG has the option to sole fund
US$1.2M of exploration work at Juan Soldado to earn a 50.1%
interest in the project, including a minimum of 1,000m of drilling. The 1,200h project, located 20km N of La Serena, covers
four exploration licenses over a 6km strike length of the
Romeral Fault.
13
www.cexr.cl
No.26 / May 2015
Exploration News
Has identified a significant exploration target at its San Sebastian mine in Region III. The target covers 400m of the 6km of
mapped strike and is estimated at 280,000t-360,000t @ 2.9%4.75% Cu based on data collected during the last six months,
including Cu assays, geological mapping, magnetic surveys and
density measurements. As MNE mines new levels at the mine,
it aims to gather sufficient data to calculate a maiden Mineral
Resource. “The parameters used to calculate the exploration
target are considered very conservative given that we have
mapped this vein for over 6km along strike and have a delivered grade to the processing facility of around 4.80% Cu to
date,” said MD Zeff Reeves.
Meanwhile, MNE has begun producing from the Viuda mine, in
addition to the Paraguay and San Sebastian operations, all at El
Roble. To date, MNE has completed 12m of strike development along the vein which measures between 0.5m and 1.5m
in thickness and is well mineralized. Installation has begun of
the first access shaft to provide access between the 1005 and
1015 levels and ventilation to 1005. Around 300t of ore has
been mined. At Paraguay, MNE is establishing the access shaft
to the first panel to begin shrink stoping. The next stage is to
complete access shafts and continue development to expose
additional ore for stoping. MNE has also begun hauling material from the San Sebastian stope between shafts 1 and 3 and is
planning to complete the 1020 level ramp to ensure consistent
production. “The significant waste development and preparatory work completed will ensure that a consistent ore supply is
established into the future. We now have substantial high
grade stockpiles on site, which puts MNE in a sound position to
increase deliveries to the processing facility,” said Reeves.
Plans to carry out geophysics (CSAMT lines) and RC drilling at
its Anillo Au project in Region II to follow-up and delineate the
mineral intercepts obtained during the last drilling campaign.
Exploration is being funded by Fenix fund Asset Chile Exploracion Minera. A LoI has been signed for up to US$3.5M of nondilutive financing. Anillo is located NE of Yamana Gold’s (TSX:
YRI) El Peñón Au mine.
Metallum’s El Roble project in Region III.
Admiralty Resources (ASX: ADY)
Has announced an Inferred Mineral Resource of 96Mt @ 24%
Fe at its La Chulula project, one of six targets at its Harper
South District in Region III. Golder Associates based the estimate on reverse circulation and diamond drilling carried out
during 2012. It increases the size of the Measured, Indicated &
Inferred Resources at Harper South to 360.7Mt @ 24.4% Fe.
© 2015 Chile Explore Report All Rights Reserved
Photo: Orosur Mining
Orosur Mining (TSX: OMI)
Photo: Metallum
Metallum Ltd (ASX MNE)
Anillo Au project map.
Revelo Resources (TSXV: RVL)
Has signed a LoI to acquire four properties from BLC SpA, a
joint venture between Altius Minerals (TSX: ALS) and Zeus Capital. The early-stage exploration projects are: Loro en el Hombro – prospective for Au-Ag veins, 25km S of Yamana Gold’s
(TSX: YRI) El Peñón Au-Ag mine and E of RVLs Las Pampas
property currently optioned to Kinross Gold (TSX: K); Morsas,
located 50km SW of Lundin Mining’s (TSX: LUN) Candelaria CuAg mine in Region III; and, Culebra and Anaconda, 60km S of
BHP Billiton’s Escondida Cu mine, near RVLs Block 3 and Block
4 properties in the Eocene-Oligocene porphyry Cu belt. In exchange, RVL will issue 2,659,574 shares at C$0.094 and issue
500,000 shares to BLC on completion of the first feasibility
study on any one of the properties. In addition, RVL will issue
5M units to BLC for proceeds of C$750,000. Each unit will consist of one RVL share and one non-transferable warrant to buy
one RVL share for three years at C$0.20. The proceeds will be
used to fund exploration of RVLs properties. BLC will also retain a 2% NSR on commercial production of precious metals
and a 1% NSR on commercial production of base metals from
each of the properties. RVL may buy one-half of the royalties
in each property for C$5M, exercisable for five years from the
start of production. The parties hope to close the deal by May
25th. “ALS is a major player in the prospect generator and royalty business, and brings significant value add to RVL as a
shareholder and strategic partner in Chile,” said RVL CEO Tim
Beale. On completion of the purchase and the financing, BLC
will own 7.7% of RVLs outstanding shares.
14
www.cexr.cl
No.26 / May 2015
Calendar
Conferences and Events Calendar
May 5th - 7th
May 6th - 7th
May 11th - 15th
May 18th - 20th
ARMINERA
Renewables and Mining
Summit and Exhibition
Exponor
IX Congreso Internacional
de Prospectores y Exploradores
Centro Costa Salguero
Buenos Aires, ARGENTINA
Marriott Hotel
Santiago, CHILE
Recinto Ferial AIA
Antofagasta, CHILE
www.caem.com.ar/
arminera
www.energyandmines.com
www.exponor.cl
Sheraton Lima &
Convention Center
Lima, PERU
www.proexplo.com.pe
May 20th - 21st
May 31st - June 1st
June 8th - 10th
August 3th - 5th
Latin America Down
Under 2015
Canadian Investor
Conference
GEOMIN 2015
Diggers and Dealers
Sheraton on the Park
Sydney, AUSTRALIA
Vancouver Convention
Center West
Vancouver, CANADA
Hotel Enjoy
Antofagasta, CHILE
Kalgoorlie, AUSTRALIA
www.latinamericadownund
er.com
www.cambridgehouse.com
August 12th - 13th
Hotel Intercontinental
Santiago, CHILE
www.gecamin.com/geomin
www.diggersndealers.com
.au
August 13th
September 9th
September 21st - 25th
Medmin 2015
Asset Valuation and
Capital Markets
PERUMIN Mining
Convention 2015
Hotel Antay
Copiapo, CHILE
Hotel Radisson
Santiago, CHILE
Campo Ferial Cerro Juli
Arequipa, PERU
www.cexr.cl
www.medmin.cl
www.comisionminera.cl
www.convencionminera.c
om
September 24th - 25th
October 4th - 8th
October 29th - 30th
November 3th - 5th
Canadian Investor
Conference 2015
Chilean Geological
Congress
ExpoMinera del Pacífico
First International Metallic Mining Trade Show
Vancouver Convention
Centre West
Vancouver, CANADA
Hotel-Casino Enjoy
La Bahia de Penuelas
La Serena, CHILE
Ex Estadio Cavancha
Iquique, CHILE
Centro de Congresos
y Convenciones FIBES
Seville, SPAIN
www.cambridgehouse.com www.congresogeologicochile www.industriales.cl
no.cl
© 2015 Chile Explore Report All Rights Reserved
www.mmhseville.com
15
www.cexr.cl
No.26 / May 2015
Corporate News
Mandalay adopts poison pill plan
Andes Iron SpA (private) is seeking investors to develop its
Dominga Cu-Fe project in Region IV after the Delano family,
which owns 80% of the company, decided to sell the whole of
its stake. Law firm Carey & Cia and an international investment
bank have been hired to advise of the sale which will be led by
the company’s CEO Ivan Garrido. Shareholders and senior executives also established a plan to attract new investors and
define the financing for the company’s strategic plan. They
also agreed that new investors must commit to undertakings
made in the project’s EIS, currently being assessed by regional
authorities, such as not using water from the Los Choros basin
and instead using desalinated water supplied from a new plant
in the area. Dominga is the largest iron ore project in Chile and
is designed to produce 12Mtpa of high-grade Fe and
150,000mtpa Cu over 27 years, at a cost of US$2.5B.
The board of directors at Mandalay Resources (TSX: MND) has
voted to adopt a shareholder rights plan which, in case of an
unsolicited bid, will give directors more time to develop and
propose alternatives to the bid and ensure equal treatment of
shareholders. If a group acquires more than 20% of outstanding voting shares, the plan will allow holders to purchase additional shares at a substantial discount to the market price. The
plan has been conditionally accepted by the Toronto Stock
Exchange. Shareholders will vote on the plan on May 13th.
Photo: Andes Iron
Photo: Mandalay Resources
Andes Iron seeks investor for Dominga
The Dominga Cu-Fe project in Region IV.
Arena Minerals raises US$1.5M
Mandalay’s global operations.
Medinah shareholders reject Auryn bid
Medinah Minerals (MDMN) said that its shareholders rejected
an offer by Auryn Mining SpA to buy 350M shares. MDMN said
that the move will not affect exploration and drilling by Auryn
of MDMNs Altos de Lipangue properties in the Metropolitan
Region.
Photo: Medinah Minerals
Arena Minerals (TSXV: AN) has raised US$1.5M through a private placement of units at US$0.10 per unit. Each unit consists
of one common share purchase warrant, entitling the holder
to acquire one AN share at US$0.15 through April 1st 2017.
After the offering, AN has 75,817,386 shares issued and outstanding. Mining entrepreneur Ross Beaty participated in the
offering, acquiring 9M units. If all the warrants are exercised,
Beaty’s stake in AN would rise to approximately 16%, from
12% currently. The proceeds will be used to continue develop
of ANs Atacama Cu project and Pampas El Peñon properties in
Region II.
Yamana to list Brio Gold
Yamana Gold (TASX: YRI) Is looking to take its subsidiary Brio
Gold public during 3Q15, hiring investment banks National
Bank Financial Inc. and CIBC World Markets Inc. to advise on
the process. Meanwhile, YRI plans to spend US$20-30M at C1
Santa Luz in Brazil from mid-2015. The mine would produce
approximately 100koz annually from mid-2016, increasing total production to 230koz annually.
© 2015 Chile Explore Report All Rights Reserved
Medinah Minerals’ Altos de Lipangue property.
16
www.cexr.cl
No.26 / May 2015
The Chile List / Updated on April 30th 2015
Nano Cap
<C$10m
Ticker
Shares (M)
Fully Diluted (M)
Price
Mkt Cap ($M)
Cash ($M)
Debt ($M)
AQM Copper
AQM
139
139.246
0.06
8.34
N/A
0
25.4M
Cerro Grande Mining
CEG
110
120
0.043
4.73
N/A
0
14.3M
Chilean Metals
PBX
16.1
18.5
0.0309
0.50
N/A
0
14.4M
Condor Resources
CN
81.2
100.8
0.05
4.06
0.8
0
13.65M
Cougar Minerals
COU
25
27.6
0.005
0.13
N/A
0
12.6M
Ginguro Exploration
GEG
85
107
0.06
5.10
0.7
0
5.0M @ $0.56
Global Hunter
BOB
14
14
0.03
0.05
0.0185
2.5
Goldeye Explorations
GGY
46.7
65.9
0.045
2.10
N/A
0
16,4M
New World Resource
NW
13.3
17.7
0.025
0.33
0.7
0
4M @ 0.2 Mar 2015
Pinestar Gold
PNS
28.2
28.2
0.03
0.85
N/A
0
N/A
0
Revelo Resources
RVL
91.4
129.6
0.11
10.05
N/A
0
1,23M @ $0.7 Jun
2015, 1.44M @ $0.88
Jan 2016, 28.5M @
$0.31 Apr 2019
Sendero Mining
SM
21.9
28.5
0.01
0.22
0.5
0
5.4M
Savant Explorations
SVT
70.65
88.06
0.015
1.06
0.7
0
11.8M
Ticker
Shares (M)
Fully Diluted (M)
Price
Mkt cap ($M)
Cash ($M)
Debt ($M)
C$10-100M
Micro Cap
Arena Minerals
AN
60.8
67.2
0.175
10.64
1.6
0
672k @$0.61 Apr
2014 / 7.1M @ $0.80
Oct 2014
Apogee Silver
APE
301
371
0.005
1.51
11.2
0
N/A
Coro Mining
COP
159.4
177.9
0.03
4.78
0.4
0
10.5
Lachlan Star
LSA
147.3
108
0.024
3.54
2.32
0
16.5M
Los Andes Copper
LA
200.4
200.9
0.23
46.09
0.6
0
None
Mirasol Resources
MRZ
44.2
47.9
0.86
38.01
19.3
0
2.2M
Orosur Mining
OMI
96.6
100.8
0.145
14.01
10.8
4.9
Regulus Resources
REG
56.4
66.5
0.37
20.87
3.2
0
12.5m @ $1.60
Southern Hemisphere
SH
248.5
286.32
0.012
2.98
3
0
N/A
TriMetals Mining Inc
4.2
TMI
135.7
144.2
0.075
10.18
29.5
0
1.7M
White Mountain
Titan
WMTM
88.1
114.2
0.35
30.84
2
0
12.7M
Aus Capital
Ticker
Shares (M)
Fully Diluted (M)
Price (A$)
Mkt cap (A$M)
Cash (A$M)
Debt (A$M)
Alliance Copper
AGS
341.2
342.2
0.08
27.30
1.4
1.3
1M
Condor Blanco Mines
CDB
938
1,116
0.001
0.94
N/A
N/A
N/A
Equus Mining
EQE
379.3
379.3
0.011
4.17
7.3
N/A
N/A
Estrella Resources
ESR
114
116.08
0.006
0.68
1.1
0
None
Helix Resources
HLX
235
270
0.025
5.88
1.8
N/A
N/A
Hot Chili
HCH
347.7
358.7
0.11
38.25
20
25
N/A
Kingsgate Consolidated
KCN
224
N/A
0.735
164.64
N/A
N/A
N/A
Oro Verde
OVL
360
420
0.006
2.16
0.267
N/A
N/A
ABOUT CHILE EXPLORE REPORT: Chile Explore Report is published twelve times a year during the first week of each month by Tiger Information Services SpA, Badajoz 130, of 1406, Las Condes, Santiago; legal representative Iain Cassidy,
[email protected]. The information contained herein is derived from sources believed to be reliable but no warranty expressed or implied exists between the recipient and the Publisher that this information is accurate. The
contents of Chile Explore Report are intended for information purposes only based on news and information obtained and/or researched by the Publisher and is not intended to be construed as advice to buy or sell shares in any
security or asset. The Chile Explore Report is intended to be authoritative, critical and independent. The Publisher is not a stock tipper or promoter and is not paid, sponsored, provided with stock options or otherwise enticed to write
positive pieces about the companies covered. The Publisher does invest in some of the companies’ active in the Chile exploration sector and ends up with dogs as well as winners. The Publisher has been involved in mining information
research, analysis and publication for over ten years including roles such as investor relations, media relations, senior reporter and research consultant for companies involved in mining and exploration, and reputable industry information providers. The Publisher is not a registered securities professional and as such is not qualified to give personal or individual investment advice. Resource investing is risky and you could lose part or all of your investment. Consult a
registered investment professional before making any investment in any security. For more information contact please write to [email protected]. COPYRIGHT: © 2013 Chile Explore Report. All Rights Reserved. Unauthorized
duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of the publisher.
© 2015 Chile Explore Report All Rights Reserved
17
www.cexr.cl
No.26 / May 2015
The Chile List / Updated on April 30th 2015
Australian Cap
Nano Cap
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
AGS
CDB
EQE
ESR
HL X
HCH
KCN
OVL
Micro Cap
Small-Medium Cap
50.00
700.00
45.00
600.00
40.00
35.00
500.00
30.00
400.00
25.00
20.00
300.00
15.00
200.00
10.00
5.00
100.00
0.00
0.00
ARG
Small-Med
Cap
ATM
CS
EDR
XRC
HER
MND
NGQ
RBI
SSO
Ticker
Shares (M)
Fully Diluted
(M)
Price
Mkt cap ($M)
Cash ($M)
Debt ($M)
Amerigo Resources
ARG
173.7
187.4
0.44
76.43
9.2
0
None
Atacama Pacific Gold
ATM
55.3
64.8
0.225
12.44
20.0
0
0.2M @ $1.00 4M @
Capstone Mining
CS
382
403.3
1.63
622.66
500.0
0
None
Endeavour Silver
EDR
102
106.8
2.48
252.96
44
29
0
Exeter Resource
XRC
88.4
96.8
0.66
58.34
30
0
None
Herencia Resources
HER
24.43
21.40
0.205
5.01
N/A
0
N/A
Mandalay Resources
MND
408.8
425.9
0.88
359.74
69
60
None
NGex Resources
NGQ
187.7
192.5
0.94
176.44
34
0
None
RB Energy
RBI
263.3
282
0.075
19.75
64
50
10.3M
Silver Standard
Resources
SSO
80.7
80.7
6.71
541.50
234
N/A
None
Biggest Gainers
SN
Biggest Losers
Sector
Tot Mkt Cap
Ave Mkt Cap
>100M
Change %
100% ESR
-33%
Nano Cap
37.52
2.89
10%
ATM
41% GEG
-33%
Micro Cap
183.44
16.68
-1%
CS
35% OMI
-17%
Sml-Med Cap
2125.27
212.53
14%
LA
28% WMTM
-17%
Total
2346.22
77.36
13%
© 2015 Chile Explore Report All Rights Reserved
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