PERU, ECUADOR AND COLOMBIA SNAPSHOT: EIGHT COMPANIES PURSUING COPPER, GOLD AND MORE

BY NORM TOLLINSKY

While geopolitical risk in South America is growing, Ecuador, Colombia and Peru remain mineralrich hot spots with excellent potential for new discoveries. Here are eight junior companies searching for tomorrow’s precious and base metals mines in the Andean nations.

n ADVENTUS MINING

Toronto-based Adventus Mining (TSXV: ADZN, US-OTC: ADVZF) and its partner, Salazar Resources (TSXV: SRL, US-OTC: SRLZF) are in the midst of an infill drill program aimed at updating the underground portion of the resource estimate for their El Domo copper-gold deposit, part of the 215-sq.-km Curipamba project in central Ecuador. The updated resource will inform a future feasibility study scheduled for completion this year that will include a potential underground operation in addition to the open pit for which a feasibility study was completed in October 2021.

Results from six drill holes released on Mar. 20 included a 14metre interval of massive sulphide grading 3.13% copper, 0.79 gram gold per tonne, 4.02% zinc and 27.9 grams silver per tonne (4.4% copper equivalent) beginning at a depth of 200.3 metres. Results from another five holes reported on Feb. 27 included 21 metres grading 4.43% copper, 3.4 grams gold per tonne, 2.28% zinc, 40.5 grams silver and 0.1% lead (7.54% copper equivalent) beginning at 190.7 metres. n ANACORTES MINING

El Domo has proven and probable open pit reserves of 6.5 million tonnes at 1.93% copper, 2.52 grams gold per tonne, 46 grams silver per tonne, 2.49% zinc and 0.2% lead. Indicated and inferred underground resources account for another 2.7 million tonnes, including 1.9 million indicated tonnes grading 2.72% copper, 1.37 grams gold, 31 grams silver, 2.38% zinc and 0.14% lead.

Salazar discovered El Domo in 2017 and signed an earn-in agreement with Adventus the same year entitling the latter to a 75% stake in the Curipamba project. The conditions of the earn-in option, including $25 million in exploration and development spending and the completion of a feasibility study, were satisfied in 2021.

Adventus is also conducting regional exploration across the entire Curipamba project, claiming the discovery of 15 “compelling, high-priority targets” based on results from a 2019 airborne MobileMT geophysical survey totalling 2,142 line-km. Among them was the August 2021 discovery of the Agua Santa target, a new VMS system 4.5 km southwest of El Domo, where one drill hole intersected 6.3 metres of 1.77% copper, 1.46 grams gold per tonne, 7.45% zinc, 23.2 grams silver and 0.24% lead.

Adventus Mining has a market capitalization of $66.5 million.

Anacortes Mining (TSXV: XYZ, US-OTC: XYZFF), owner of the Tres Cruces high-grade gold oxide deposit in Peru’s Quiruvilca mining district has entered into a binding letter of intent to be acquired by Steppe Gold (TSXV: STGO, US-OTC: STPGF) of Ulaanbaatar, Mongolia. On closing, sharehold- ers of Vancouver-based Anacortes will own 21% of the combined company. Under the terms of the agreement, Anacortes shareholders will receive 0.4532 of a Steppe Gold common share, representing consideration of approximately 48¢ per Anacortes common share, a premium of 32% based on the closing prices of both companies at the close of trading on Mar. 3. A non-solicitation covenant in favour of Steppe Gold was extended from Apr. 17 to May 5 “or such earlier or later time” as the two companies agree.

The acquisition would transform Steppe Gold, operator of the ATO gold mine in Mongolia, into a multi-jurisdiction gold miner with a potential development profile of more than 200,000 oz. and a resource base of over 4.5 million gold equivalent ounces.

The 30-sq.-km Tres Cruces property, located 100 km east of the city of Trujillo, has a pit-constrained resource estimate of 2.5 million oz. of gold in 46.5 million tonnes grading 1.65 grams gold per tonne in the indicated category, including 630,000 leachable oz. at an average grade of 1.28 grams gold contained in both oxide and sulphide material. n ARIS MINING

The Tres Cruces project shares a border with Barrick Gold’s (TSX: ABX, NYSE: GOLD) Lagunas Norte mine, an epithermal gold deposit which has produced over 10 million oz. of gold.

New Oroperu Resources discovered Tres Cruces in 1995 and, together with subsequent joint venture partners Battle Mountain Gold and Barrick’s Peruvian subsidiary, completed more than 72,000 metres of drilling.

In May 2022, Anacortes received authorization from Peru’s Ministry of Energy and Mines for a 22-hole core drilling program to include infill drilling of the known oxide resource, and in an Aug. 4 press release reported an intersection of 142.9 metres of 1.43 grams gold per tonne from 40.5 metres downhole. Anacortes Mining has a market capitalization of $17.9 million.

Vancouver-based Aris Mining (TSX: ARIS, US-OTC: TPRFF) was established in September 2022 as a result of the merger of Aris Gold and GCM Mining. The company’s Segovia operations, 180 km northeast of Medellin, Colombia, and its Marmato mine 80 km south of Medellin produced 215,373 oz. of gold last year.

Aris is also the operator and 20% owner of the Soto Norte gold project 350 km north of Bogota. It acquired the interest in March 2022 from a subsidiary of the Mubadala Investment Co. in Abu Dhabi. Aris also has the option to earn an additional 30% interest in the project.

A feasibility study for Soto Norte with an effective date of January 2021 pegs initial capital costs at US$1.2 billion and a mine life of 14 years.

The study estimates annual production at 450,000 oz. of gold, with life-of-mine all-in sustaining costs of US$471 per ounce. It estimated an after-tax net present value (NPV) of $1.5 billion and an internal rate of return (IRR) of 20.8% at a base case gold price of $1,675 per oz. At a gold price of $1,925 per oz., the NPV rises to US$2 billion and the IRR to 24.4%. n AUXICO RESOURCES

The project has an indicated resource of 48.1 million tonnes grading 5.47 grams gold per tonne, 36 grams silver and 0.18% copper containing 8.5 million oz. of gold, 55.3 million oz. of silver and 193 million lb. of copper.

Aris also announced an updated resource for its gold-copper Toroparu project in Guyana on Mar. 14, reporting 115 million measured and indicated tonnes grading 1.45 grams gold per tonne for 5.4 million oz. of gold and 118,000 tonnes of copper. Inferred resources are 21.2 million tonnes grading 1.71 grams gold per tonne for 1.2 million oz. of gold. The Toroparu project covers an area of 428 sq. km in the Cuyuni-Mazaruni region, about 215 km southwest of the capital city of Georgetown.

Aris Mining has a market capitalization of $468.6.7 million.

Montreal-based Auxico Resources

(CSE: AUAG, US-OTC: AUXIF) announced the approval of an environmental impact study for its Minastyc rare earth property in Colombia on Apr. 12, allowing it to move heavy equipment to the site for bulk sampling and a processing facility. A previously announced authorization of a work plan by Colombia’s Agencia Nacional de Minera gives Auxico permission for a small-scale mining operation of up to 300 tonnes per month.

A March 2022, a technical report for Minastyc, located in the municipality of Puerto Carreno, indicates the presence of tin, tantalum, niobium and titanium. The report also identifies “fine concentrates from bulk sampling with results of up to 68.3% total rare earth oxide content,” including cerium, dysprosium, erbium, gadolinium, hafnium and lanthanum. The report is due to be updated to include a resource estimate pending results for 72 kg of samples from the property.

The critical minerals and rare earth elements are hosted in monazite sands at surface requiring limited infrastructure, which Auxico says will allow it to begin sales and exporting in the near term.

An Apr. 20 press release also announced the results of metallurgical testing of rare earth concentrates from Minastyc, demonstrating the ability to produce commercial concentrates of light and heavy rare earths. Of the light rare earths, testing reported 46.9% concentration of neodymium). Of the heavy rare earths, dysprosium revealed a 16.1% concentration — 20 times compared to the initial feed.

Auxico has a joint venture agreement with a Brazilian mining cooperative for the exploitation and commercialization of rare earths from tin tailings located over an area of 180 sq. km in the state of Rondonia. It also has an agreement with Central America Nickel to act as a trade agent for rare earth concentrates from the Democratic Republic of Congo.

Auxico has a market capitalization of $24.8 million.

n LIBERO COPPER

In May, Libero Copper (TSXV: LBC, US-OTC: LBCMF) announced a partnership with Anglo Asian Mining (AIM: AAZ) for the initial design, engineering and financial modelling of Libero’s Mocoa porphyry copper-molybdenum deposit located in Putumayo, Colombia. A strategic partner and Libero’s largest shareholder, London-based Anglo Asian is an experienced project developer, mine builder and operator of several gold, copper and silver projects in Azerbaijan. Anglo Asian acquired a 19.8% stake in Libero in January 2022.

The Mocoa deposit has a pitconstrained inferred resource of 636 million tonnes of 0.45% copper equivalent containing 4.6 billion lb. of copper and 511 million lb. of molybdenum based on a 2021 technical report.

The deposit was discovered in 1973 as a result of a regional stream-sediment geochemical survey conducted by the United Nations and the Colombian government. Exploration programs consisting of geological mapping, surface sampling, ground geophysics, diamond drilling and metallurgical test work were carried out between 1978 and 1983, and again in 2008 and 2012. More recently, Libero began a five-hole, 5,000metre drill program in February 2022, and announced an intersection of 557 metres of 0.89% copper equivalent beginning at 108 metres depth.

Last May, the Vancouver-based company said it had identified nine

Above: Signing of an impact and benefit agreement (IBA) with the Shuar Indigenous nations of Warints and Yawi for the Warintza Project, providing certainty of community support for the responsible advancement of Warintza. SOLARIS RESOURCES

Below: Solaris Resources’ Warintza project in southeastern Ecuador. SOLARIS RESOURCES new high-priority porphyry targets as a result of magnetic, radiometric and LiDAR surveys carried out in late 2021 over the Mocoa project area covering 87 sq. km.

Libero also holds the Esperanza porphyry copper-gold and epithermal gold project in Argentina’s Huachi mining district. Drilling by Latin Minerals in 2018 at Esperanza returned assays of 0.57% copper and 0.27 gram gold per tonne over 387 metres from surface, in- cluding 0.74% copper and 0.33 gram gold per tonne from surface to a depth of 232 metres.

Other porphyry copper-gold properties in Libero’s portfolio include Big Red and Big Bulk in British Columbia.

Libero Copper has a market capitalization of $11.9 million.

n OUTCROP SILVER & GOLD

In April, Outcrop Silver & Gold (TSXV: OCG, US-OTC: OCGSF) reported an initial indicated resource of 1.2 million tonnes grading 614 grams silver equivalent per tonne containing 24.1 million oz. of silver equivalent at its 100%-owned Santa Ana project in Colombia. Inferred resources add 966,000 tonnes grading 435 grams silver equivalent per tonne for 13.5 million oz. of silver equivalent. The resource estimate was based on seven veins, each of which was reported to be open at depth and along strike. Dozens of other veins with high-grade samples from outcrops and historical workings have also been identified and will be drilled this year. n

Located 15 km southeast of the town of Mariquita and 190 km northwest of Bogota, the Santa Ana project consists of six or more mapped or projected vein zones across a trend 12 km wide by 30 km long. The area is considered to be the highest-grade primary silver district in Colombia with historic grades among the highest in Latin America.

Vancouver-based Outcrop has conducted exploration drilling on approximately 10% of its titled surface, completing more than 300 diamond drill holes. Drill results reported Mar. 14 from four holes testing its Megapozo shoot included an intersection of 5.9 metres grading 426 grams silver equivalent per tonne and 2.7 metres grading 445 grams silver equivalent.

Outcrop also owns the Mallama and Argelia gold-silver projects, the Antares gold project and the Oribella gold-copper project in Colombia.

A public offering that closed on May 10 gave Outcrop aggregate gross proceeds of about $4.5 million. Participation in the public offering by Eric Sprott in the amount of $1 million raised his stake in Outcrop to 14.2% on a non-diluted basis and 21.2% on a partially diluted basis assuming the exercise of his 19,400,000 warrants.

Outcrop Silver and Gold has a market capitalization of $45 million.

Solaris Resources

Recent drilling by Vancouver-based Solaris Resources (TSX: SLS, USOTC: SLSSF) at its 268-sq.-km, 100%-owned Warintza project in southeastern Ecuador has confirmed the discovery of a second more intensely mineralized porphyry centre 350 metres south of the original mid-2021 discovery at its Warintza East target. Warintza East is part of a cluster of outcropping porphyrys anchored by a largescale, high-grade open pit resource at its Warintza Central target.

The discovery, announced on May 2, was based on drill hole SLSE-28 which showed “strong mineralization from 19 metres to the end of the hole (at 309 metres) characterized by chalcopyrite-pyritemolybdenite in stockwork veins and disseminations similar to the highgrade portions of the Warintza Central deposit.” Assay results were still pending at press time.

An April 2022 in-pit indicated resource estimate for Warintza Central reported 579 million tonnes grading 0.59% copper equivalent for 2.7 million tonnes of copper, 150,000 tonnes of molybdenum and 930,000 oz. of gold at a 0.3% copper equivalent cut-off. Inferred resources totalled 887 million tonnes at 0.47% copper equivalent for 3.5 million tonnes of copper, 130,000 tonnes of molybdenum and 1.1 million oz. of gold. The resource also includes 180 million tonnes at 0.82% copper equivalent in the indicated category and 107 million tonnes at 0.73% copper equivalent for an “indicative starter pit.”

Solaris also has options to earn up to a 75% stake in two projects in Peru: Caprichio, a 460-sq.-km property with outcrop samples grading up to 3% copper, and Paco Orco, a 440-sq.-km polymetallic property located in the northern extension of the Southern Peru Copper Belt for which it reports surface samples grading up to 0.5% lead, 0.26% zinc and 58 grams gold per tonne.

Projects in Chile include the 160-sq.-km Ricardo property where drilling encountered rock types and alteration similar to those at Chuquicamata, and Tamarugo, a 51-sq.-km property 65 km southwest of Codelco’s El Salvador copper mine for which Solaris has an option agreement with Freeport-McMoRan (NYSE: FCX) to earn up to a 75% interest for US$5.5 million in spending and the delivery of a prefeasibility study. n SOLGOLD

Solaris also has a 60% stake in the La Verde copper-silver-gold project in Mexico’s Michoacan state.

Teck Resources (TSX: TECK.A/ TECK.B; NYSE: TECK) holds the remaining 40% interest.

Solaris Resources has a market capitalization of $956.1 million.

Brisbane-based SolGold (TSX: SOLG, LSE: SOLG) completed its acquisition of Cornerstone Capital Resources in February, consolidating the ownership of its flagship copper-gold Cascabel project in Ecuador. Prior to the merger, SolGold held an 85% stake in Cascabel with the remaining 15% held by Cornerstone. The friendly, all-stock deal, originally announced in October 2022, valued Ottawa-based Cor- nerstone at $107.9 million.

The results of a preliminary feasibility study announced in April 2022 confirmed Cascabel as a large, long-life mining operation. With an initial capital investment of US$2.7 billion, the study forecast the project’s after tax NPV of US$2.9 billion, its IRR of 19.3%, and put its mine life at 26 years.

Located in Ecuador’s Imbabura province, a three-hour drive north of Quito, the Alpala deposit at Cascabel has measured and indicated resources of 2.7 billion tonnes grading 0.37% copper, 0.25 grams gold per tonne and 1.08 parts per million silver for 9.9 million tonnes of contained copper, 21.7 million oz. of gold, and 92.2 million oz. of silver.

During the first 25 years of mining, Cascabel is expected to produce 207,000 tonnes of copper, 438,000 oz. of gold and 1.4 million oz. of silver per year.

In February, SolGold also reported on a strategic review and organizational optimization of the company that will include a workforce reduction, “the direct or indirect sale of an interest in Cascabel” and the spin-out of assets other than Cascabel. However, SolGold is well funded, having raised US$86 million in gross proceeds as a result of a US$50-million royalty investment by Osisko Gold Royalties in November and a US$36 million-capital raise with the participation of China’s Jiangxi Copper.

SolGold has several other projects in Ecuador, including Porvenir, where it has discovered significant copper-gold mineralization, and Helipuerto, Rio Amarillo and Cisne Loja, which contain geochemical and geophysical indications of large porphyry deposits. It also holds six properties in Australia and the Kuma concession in the Solomon Islands.

SolGold has a market capitalization of $940.8 million. TNM

TORONTO STOCK EXCHANGE / MAY 15-19, 2023

Stocks ended the May 15-19 trading period with a modest drop as investors considered drawn-out negotiations about the U.S. government’s debt ceiling and Canadian and U.S. April retail sales were on the weak side.

The S&P/TSX Composite Index fell 188.91 points or 0.9% to 20,351.06. The S&P/TSX Global Mining Index decreased 3.57 points or 3.2% to 108.91, and the S&P/TSX Global Base Metals Index declined 3.41 points or 1.8% to 186.35. The S&P/TSX Global Gold Index lost 17.64 points or 5.5% to 305.77, and spot gold ended the week at US$58.30 per oz. lower, or 2.9%, at US$1,961.60 per ounce.

Centerra Gold fell 21% to close at $7.08 after performing poorer than expected in the first quarter. Canaccord Genuity mining analyst Dalton Baretto wrote in a note that Centerra’s Mt. Milligan operation in central B.C. produced 28% less gold and 13% less copper than he’d forecast, while costs increased at the Langeloth metallurgical facility in Pennsylvania.

The company’s cash on its balance sheet dropped by 56% from the end of 2021 “with very little to show for the decline,” Baretto said. However, management expects the cash consumption trend to reverse this year. Grades are improving at Mt. Milligan, rising costs may slow in the molybdenum unit’s mines in Utah and B.C, while the Öksüt mine in south-central Turkey may restart.

Still, Centerra is supporting four assets on care and maintenance (Öksüt, Kemess, Thompson Creek and Endako) with only Mt. Milligan producing, and it diverts part of that production to a stream arrangement.

Wheaton Precious Metals, which lost $3.31 to close at $64.94, even though it landed a new stream in Ecuador. Wheaton paid US$300 million for as much as 6.6% of gold produced at Lumina Gold’s Cangrejos project.

“In addition to (an estimated 6%) return, Cangrejos continues to add long-life precious metals exposure to Wheaton’s portfolio,” BMO mining analyst Jackie Przybylowski wrote in a May 17 note. “This is consistent with the type of growth preferred by investors.”

TSX VENTURE EXCHANGE / MAY 15-19, 2023

The S&P/TSX Venture Composite Index fell 5.05 points or 0.8% over the May 15-19 trading session to close at 612.79.

Surge Battery Metals gained 12¢ to end the week at 43¢ per share on news from its Nevada North lithium project in the United States.

The Vancouver-based company completed an initial drill program at the clayhosted lithium project, 73 km northeast of Wells, Nev., in October, and is planning a second phase. On May 16, it said it has hired McGinley & Associates to conduct hydrologic work at Nevada North to support groundwater data collection and sampling and identify water sources within 5 km.

Drilling has identified a strongly mineralized zone at Nevada North with a strike length of around 1.6 km. The highlight of the campaign was hole NN2207, which cut a total of 120.4 metres averaging 3,943 parts per million lithium in four zones.

Baru Gold recorded the week’s greatest percentage change. The stock closed 100% higher at 5¢ on news that it dropped a lawsuit it filed last summer against the government of Indonesia. The Vancouver-based junior also said its 70%-owned Sangihe Island gold project had received “National Vital Object” designation, which means it will enjoy “special protections and priority treatment,” includ- ing an assigned government liaison that will help it resolve any disputes.

The lawsuit alleged local police and government officials supported illegal miners for “personal enrichment” and failed to uphold Baru Gold’s contract of work for the project. The company said it now believes the issues raised in its lawsuit “are no longer present,” with new leadership in local and regional police forces committed to enforcing the law.

Baru Gold says it will now advance Sangihe to production without a feasibility study. The project has a 2017 resource outlining 3.2 million indicated tonnes at 1.13 grams gold per tonne and 19.43 grams silver, plus inferred resources.

Bravo Mining added 38¢ per share to end

U.S. MARKETS / MAY 15-19, 2023

The Dow Jones Industrial Average gained 126.01 points or 0.4% to 33,426.63 and the S&P 500 added 67.9 points or 1.6 % over the week to 4,191.98.

Among the week’s top value gainers was Nutrien, which added US$2.06 per share to close at US$61.95. Earlier this month, the company reported disappointing first-quarter earnings and dialled down its guidance for the rest of the year on falling prices and lower sales volumes. The company’s net earnings for the third quarter were US$576 million, down 58% from US$1.4 billion a year earlier, and its sales for the quarter ended March were US$6.1 billion, down 20% from US$7.7 billion a year earlier. To meet increased global demand, Nutrien announced last June a plan to ramp up potash production by 40% compared with 2020 production levels to 18 million tonnes by 2025. However, it will likely slow the ramp-up should softer market conditions prevail.

Lithium Americas closed 4% higher Friday at US$22.27 per share. The U.S. Interior Department has removed one of the last remaining obstacles to its Thacker Pass mine in Nevada by finding that nearly all of the site contains metal needed to make electric vehicle batteries. The opinion from the depart- ment’s solicitor comes amid a debate about whether more U.S. mines should be built to produce lithium and other green energy transition metals. The U.S. federal judge rejected activist groups’ claims that the Thacker Pass project would cause unnecessary harm to the environment. Lithium Americas recently started construction at Thacker Pass after receiving a notice to proceed from the Bureau of Land Management.

Barrick Gold was the week’s most active gold stock, with 84 million shares changing hands. The stock closed the session US$1.32 higher at US$17.86. The company said on May 3 that improvements at its Nevada and Dominican Republic operations in the second half of the year will keep it on track to

Ero Copper gained $1.31 or 5.5% to close at $25.06 after reporting first-quarter results in line with expectations while the Brazil-focused producer remains on track to double copper output over the next few years.

“We maintain our outperform rating,” Przybylowski said in a note. “Ero Copper continues to be our top pick North American senior base metals stock.”

She said the second half of this year will improve results as Ero starts commissioning the Caraíba mill expansion and increasing grades while gold production at Xavantina rises after tapping the Matinha vein.

Ero is also searching for nickel on its Curaçá Valley property, and developing the Tucumã mine where pre-stripping is ahead of schedule and engineering and electrical work are on schedule to finish by the third quarter. TNM the week at $3.58. On May 8, the company reported trenching results from its Luanga PGM-gold-nickel project in Brazil’s Para state.

Highlights included 146.8 metres of 1.36 grams palladium per tonne, 0.59 gram platinum, 0.07 gram rhodium, including a 50-metre section grading 2.9 grams palladium, 1.06 grams platinum, 0.15 gram rhodium and 0.06 gram gold.

The company also released assays from historical metallurgical drill core that had never been sampled. Hole FM-0004 returned 110 metres of 1.39 grams palladium, 0.64 gram platinum, 0.08 gram rhodium and 0.12 gram gold per tonne from surface.

Bravo expects to release a first NI 43-1010 compliant resource for Luanga, which was discovered in 2003, this year. TNM achieve its 2023 guidance. Those improvements include the completion of major processing plant maintenance at its 61.5%owned Nevada Gold Mines operations, the conversion of the Goldstrike autoclave to a carbon-in-leach process, better- performance at Turquoise Ridge following commissioning of the third shaft late last year, and the steady ramp-up of throughput at

Pueblo Viejo’s expanded plant. While lower than the prior period, March-quarter production was on plan, and free cash flow increased. BMO mining analyst Jackie Przybylowski wrote in a May 17 note Barrick is currently unique in offering long-term investors modest dividends and meaningful reinvestment in growth projects as it pursues the construction of tier-one operations. TNM