Atex copper-gold drilling in Chile hints at resource growth

[Ben Graham]

Results from the second hole of Atex Resources’ (TSXV: ATX) drill program at its Valeriano copper‑gold project in northern Chile are enhancing the thickness and grade of its B2B zone. Shares rose.

Hole ATXD26B cut 448 metres grading 0.93% copper and 0.51 gram gold per tonne from 1,014 metres depth, including 186 metres at 1.32% copper and 0.72 gram gold and 88 metres grading 1.61% copper and 0.99 gram gold, Atex reported Tuesday.

“The results showcase grade and size continue to improve,” BMO Capital Markets analyst Rene Cartier said in a note. “With Atex already achieving half of the guided metres of drilling, and with the program ahead of schedule, weather permitting, we wouldn’t be surprised to see the size of the drill program expanded.”

‘Growth potential’

B2B’s robustness keeps showing up in multiple intersections of high-grade mineralization, stressing the potential for more resource growth, Atex president and CEO Ben Pullinger said in a release.

“We see potential to further add high-grade tonnes in the porphyry and other breccia targets at Valeriano,” he said.

The B2B zone is emerging as a zone with 400 metres of strike, up to 200 metres in horizontal width and with a vertical extent of 500 to 600 metres, Pullinger added.

Resource update traction

Atex, backed by Agnico Eagle Mines (TSX, NYSE: AEM) which holds a 13% stake, is riding exploration momentum after it released an updated resource for Valeriano in September.  Compared to the initial resource from 2023, the update added a new indicated category totaling 475 million tonnes grading 0.58% copper and 0.25 gram gold. Inferred tonnage rose 7% to 1.51 billion tonnes at 0.5% copper and 0.2 gram gold.

The update positions Valeriano as competitive for an early-stage copper-gold project exploration project in Chile.

Atex shares gained 3% to C$3.63 apiece on Tuesday morning in Toronto, valuing the company at C$1.2 billion ($860 million).

Hole consistency

The ATXD26B results are the second set of assays for that hole after Atex released the first set in December, which had a highlight interval of 224 metres grading 1.02% copper and 0.49 gram gold from 1,014 metres depth.

The drilling is from Atex’ stage six program it started in September and the company has already completed more than half of the planned 25,000 metres. The program is targeting B2B and other nearby high-grade breccia targets.

Valeriano is located about 6 km from Antofagasta’s (LSE: ANTO) El Encierro copper project and about 1,000 km north of the capital Santiago.