The global demand for minerals has placed a spotlight on the need for a stronger industrial base, one that includes more domestic production and processing of metals that are critical for a modern society. Energy security is strongly linked to mining, as minerals are essential ingredients in the production of energy technologies. Despite the critical role of minerals in securing economic futures and the protection of our planet, the U.S. continues to delay many high-value mining projects while deepening import dependence on the materials they provide.

Current energy disruptions have made it even more clear that a mineral and metals supply chain that relies heavily on a handful of countries can make the whole chain weak. Since Russia’s invasion of Ukraine, the U.S. and EU have looked for ways to reduce their dependence on Russian natural gas. One promising solution is to develop shale gas resources in the United States, which would help create jobs and reduce greenhouse gas emissions. However, this process requires large amounts of minerals, such as sand, clay, and limestone – all of which are in short supply.

Copper is another tight market being squeezed due to other supply chain issues that were exacerbated during the COVID-19 pandemic. New projects are in short supply, so companies are often eager to acquire new high-grade copper projects when they become available. The Warintza Project in southeastern Ecuador is operated by Solaris Resources (TSX:SLS) a junior mining company that is currently advancing the project towards production.

The Warintza Project has the potential to fill some of the gaps in the current copper market. The project is expected to produce approximately 100 million pounds of copper per year, making it one of the largest copper mines in Ecuador. In addition, the Warintza Project has been called a potential “super pit”, and has released a mineral resource estimate for a significant ‘Indicative Starter Pit’. The company reported in-pit resources of 579 Mt at 0.59% CuEq (Ind) and 887 Mt at 0.47% CuEq (Inf), and 180 Mt at 0.82% CuEq (Ind) and 107 Mt at 0.73% CuEq (Inf) at the time. Most recently, Solaris reported assay results from a series of holes aimed at growing the Northeast Extension of the ‘Indicative Starter Pit’.

Copper is another area the United States and many other countries are looking to lower import dependence. Companies like Tesla, a large consumer of copper for car and battery technology, have been vocal about their desire to source minerals from North America. The Warintza Project could play a role in meeting this demand, as it is located in an area with good infrastructure and a skilled workforce.

The vulnerability of the energy industry has accelerated the calls for renewable energy sources that would reduce or eliminate the dependence on oil and gas from other countries. To bolster domestic supply, it will require projects like the Warintza Project to fill the demand that continues to grow faster than supply. Junior mining companies will play a larger role in a future of energy security than ever before.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: CELEC EP

As the world becomes increasingly digitized and reliant on technology, the demand for copper continues to grow. Copper is used in everything from smartphones to power grids, and the mining and production of this valuable metal has a significant environmental impact. However, thanks to recent innovations in mining and production technology, we may be able to meet this growing demand without harming the environment.

Companies engaged in copper exploration are currently leading the charge toward a greener future for the industry. One such company is Rio Tinto, which has been working on developing a new method of extracting copper from ore that doesn’t require smelting. Smelting is a process that releases harmful greenhouse gases into the atmosphere, so eliminating it would be a major step forward in terms of reducing the environmental impact of copper mining.

Another great example is Solaris Resources (TSX:SLS) which has signed a Memorandum of Understanding with Electric Corporation of Ecuador (“CELEC EP”) to supply low-cost, locally sourced hydroelectric power to the Warintza Project (“Warintza” or “the Project”) in southeastern Ecuador.

CELEC EP will source hydroelectric power from the National Transmission System in Ecuador to provide primary power required for the Warintza Project. This initiative is consistent with the “Ecuador Zero Carbon Program” developed by the Ministry of Environment, Water and Ecological Transition and Solaris was the first mining signatory of September 2021.

Solaris wants to make the most of this efficient, renewable, and cheap energy source by investigating how to electrify infrastructure like mobile mining equipment (e.g., drills, trucks), goods transportation (including gravity-assisted solutions), and processing and pumping systems.

Daniel Earle, President & CEO, commented in a press release: “The MOU with CELEC supports our vision to study the potential for electrified operations that maximize the structural benefits of the Warintza Project within an infrastructure-rich mining district with the aim of lowering costs, increasing efficiencies, reducing emissions, and broadly positioning the Project as a leading development opportunity across a range of financial and ESG metrics in the industry.”

Supplying power for the infrastructure and mining activities at Warintza with renewable energy will help to offset the environmental impact of the project, and could set a precedent for other mines in the area.

Other companies have also looked at switching transportation to a net-zero emissions model, in which electric vehicles are powered by renewable energy sources. This would not only reduce emissions from the mining process itself, but also from the transportation of copper ore to processing plants.

Considering copper is one of the key elements powering the transition to renewable energy, it’s encouraging to see the exploration and production industry working hard to reduce its environmental impact. With continued research and development, companies like Solaris Resources are driving the mission toward net-zero forward faster than ever.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) has reported new assay results from a series of holes at the Warintza Project in southeastern Ecuador. The holes are aimed at growing the Northeast Extension of the previously announced “Indicative Starter Pit”. The company is moving forward with drilling platforms in the Northeast Extention that are set to drive the latest high-grade results from the project. 

Mr. Jorge Fierro, Vice President of Exploration, commented in a press release: “Drilling from existing and recently-completed platforms in the Northeast Extension zone is a key driver in the expansion of the ‘Indicative Starter Pit’, and we look forward to reporting the next set of results in the near future as the backlog of assays pending is now resolved.”

The “Indicative Starter Pit” was noted in an April 18, 2022 announcement from the company in a mineral resource estimate for the Warintza Central Deposit, in which the company reported in-pit resources of 579 Mt at 0.59% CuEq (Ind) and 887 Mt at 0.47% CuEq (Inf), and 180 Mt at 0.82% CuEq (Ind) and 107 Mt at 0.73% CuEq (Inf) for the “Indicative Starter Pit”. 

Solaris also intends to spin out its non-core assets in Ecuador outside of the Warintza porphyry cluster, Peru, Chile, and Mexico into a new incorporated wholly-owned subsidiary of Solaris named Solaris Exploration Inc. Following the internal re-organization, it is expected that 100% of the common shares of Solaris Exploration Inc. will be spun out to shareholders of Solaris relative to their shareholdings.

Figure 1 – Plan View of Warintza Central Drilling Released to Date

Source: Solaris Resources

Highlights from the results are as follows: 

Additional drilling has expanded the Northeast Extension of the ‘Indicative Starter Pit’ recently estimated at 180 Mt at 0.82% CuEq¹ (Indicated) and 107 Mt at 0.73% CuEq¹ (Inferred) within the Warintza Mineral Resource Estimate² (“MRE”). This zone is characterized by near surface, high-grade mineralization and remains open for further growth with follow-up drilling underway.

  • SLS-66 was collared on a platform at the northeastern limit of the Warintza Central grid and drilled southwest into an open volume, returning 124m of 0.82% CuEq¹ within a broader interval of 622m of 0.42% CuEq¹ starting from surface
  • SLS-66 follows from previous holes SLS-63 and SLS-54, which were drilled from the same pad to the north and southeast and respectively returned high-grade intervals of 230m of 1.02% CuEq¹ and 356m of 0.73% CuEq³ within broader intervals (refer to press releases dated Jul 20, 2022 and Apr 4, 2022 for details)
  • SLS-64 was collared on a platform at the northern limit of Warintza Central and drilled north-northeast into an open volume, returning 110m of 0.54% CuEq¹ from near surface within a broader interval of 440m of 0.48% CuEq¹, extending and broadening the zone to the north in this area
  • SLS-64 follows from previous holes SLS-62 and SLS-48, which were drilled from the same pad to the northeast and south and respectively returned high-grade intervals of 168m of 0.68% CuEq¹ and 100m of 1.64% CuEq³ within broader intervals (refer to press releases dated Jul 20, 2022 and Feb 28, 2022 for details)
  • SLS-65, which is a step out hole from a new platform 200m to the north, has now been completed after operational delays with adjustments to the platform for drilling and assays are expected within the next four weeks

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-66 Sep 07, 2022 0 622 622 0.32 0.02 0.05 0.42
Including 66 190 124 0.71 0.02 0.09 0.82
SLS-64 78 518 440 0.32 0.04 0.04 0.48
Including 78 188 110 0.38 0.04 0.03 0.54

Notes to table: True widths of the mineralized zone are not known at this time.

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-66 800383 9648303 1412 689 255 -48
SLS-64 800178 9648285 1439 571 26 -66

Notes to table: The coordinates are in WGS84 17S Datum.

Endnotes

  1. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 4.0476 × Mo (%) + 0.487 × Au (g/t), utilizing metal prices of US$3.50/lb Cu, US$15.00/lb Mo, and US$1,500/oz Au, and assumes recoveries of 90% Cu, 85% Mo, and 70% Au based on preliminary metallurgical test work.
  2. Refer to Solaris’ technical report titled, “NI 43-101 Technical Report for the Warintza Project, Ecuador” with an effective date of April 1, 2022, prepared by Mario E. Rossi and filed on the Company’s SEDAR profile at www.sedar.com.
  3. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of US$3.00/lb Cu, US$10.00/lb Mo, and US$1,500/oz Au. No adjustments were made for recovery prior to the updated Warintza Mineral Resource Estimate, as the metallurgical data to allow for estimation of recoveries was not yet available. Solaris defined CuEq for reporting purposes only.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Figure 1 – Solaris Warintza Central Drilling Zoom In. Source: Solaris Resources

Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has announced this morning new assay results from a series of holes aimed at growing the Northeast Extension of the “Indicative Starter pit” at the Warintza Project. The “Indicative Starter Pit” was noted in an April 18, 2022 announcement from the company in a mineral resource estimate for the Warintza Central Deposit, in which the company reported in-pit resources of 579 Mt at 0.59% CuEq (Ind) and 887 Mt at 0.47% CuEq (Inf), and 180 Mt at 0.82% CuEq (Ind) and 107 Mt at 0.73% CuEq (Inf) for the “Indicative Starter Pit”. The company has been targeting high-grade extensions and major growth in cluster at the project, with ongoing drilling focused on open extensions of near surface, high-grade mineralization to the northeast and southeast of Warintza Central.

Mr. Jorge Fierro, Vice President, Exploration, commented in a press release: “Ongoing drilling from existing and newly constructed platforms aims to expand on the Northeast Extension zone, which is one of the key target areas for the expansion of the ‘Indicative Starter Pit,’ along with higher grade, near surface mineralization being targeted at Warintza East, where results are pending.”

Highlights from the results are as follows:

Additional drilling has expanded the Northeast Extension of the ‘Indicative Starter Pit’ recently estimated at 180 Mt at 0.82% CuEq1 (Indicated) and 107 Mt at 0.73% CuEq1 (Inferred) within the Warintza Mineral Resource Estimate² (“MRE”). This zone is characterized by near surface, high-grade mineralization and remains open for further growth with follow-up and step-out drilling underway.

  • SLS-62 was collared at the northern limit of Warintza Central and drilled northeast into an open volume, returning 168m of 0.68% CuEq¹ from 102m depth within a broader interval of 900m of 0.45% CuEq¹ from surface, expanding on prior drilling further to the east
  • This hole represents the first follow-up to SLS-48, collared from the same pad but drilled to the south, which returned 100m of 1.64% CuEq³ from 50m depth within a broader interval of 852m of 0.56% CuEq³ (refer to press release dated Feb 28, 2022)
  • SLS-63 was collared at the northeastern limit of the Warintza Central grid approximately 200m to the east and drilled into an open volume to the north-northeast, returning 230m of 1.02% CuEq¹ from 118m depth within a broader interval of 472m of 0.76% CuEq¹ from surface
  • This hole follows on SLS-57, which was drilled northeast from the same pad, returning 230m of 0.73% CuEq¹ from 56m depth within a broader interval of 926m of 0.61% CuEq¹ from surface and SLS-54, drilled to the south and returning 356m of 0.73% CuEq³ from 50m depth within a broader interval of 1,093m of 0.56% CuEq³ from surface (refer to press releases dated May 26 and Apr 4, 2022)
  • Follow-up drilling is underway and aims to test the Northeast Extension zone further to the north and northeast, with assays expected shortly for SLS-64, representing a follow-up hole from the same pad as SLS-62 and SLS-48

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-63 Jul 20, 2022 0 472 472 0.60 0.02 0.12 0.76
Including 118 348 230 0.87 0.02 0.12 1.02
SLS-62 10 910 900 0.33 0.02 0.07 0.45
Including 102 270 168 0.51 0.03 0.07 0.68

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-63 800383 9648303 1412 498 17 -61
SLS-62 800178 9648285 1439 943 55 -60
Notes to table: The coordinates are in WGS84 17S Datum.

Endnotes

  1. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 4.0476 × Mo (%) + 0.487 × Au (g/t), utilizing metal prices of US$3.50/lb Cu, US$15.00/lb Mo, and US$1,500/oz Au, and assumes recoveries of 90% Cu, 85% Mo, and 70% Au based on preliminary metallurgical test work.
  2. Refer to Solaris press release dated April 18, 2022, stating updated Warintza Mineral Resource Estimate.
  3. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of US$3.00/lb Cu, US$10.00/lb Mo, and US$1,500/oz Au. No adjustments were made for recovery prior to the updated Warintza Mineral Resource Estimate, as the metallurgical data to allow for estimation of recoveries was not yet available. Solaris defined CuEq for reporting purposes only.

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) has provided an update for the Warintza Project in southeastern Ecuador, and announced that it has identified a number of new targets for further exploration in the support of the drill program. The company also provided a report on the progress of the proposed asset spin-out to create Solaris Exploration Inc. Ecuador’s recent protests concluded on June 30, and the company’s samples have now been able to flow from the core processing facility to the prep lab, which has resumed operations. The samples are continuing on for final assays in Lima, Peru, although there is a considerable backlog of assays still pending. 

The company is continuing its regional exploration program and identified new porphyry, skarn, and epithermal targets. A large high sulphidation epithermal target was identified adjacent to the Warintza porphyry cluster where overlapping mineralized porphyries have intruded a layered sequence of carbonate and volcanic rocks. This has given the mineralization a very fertile setting to be able to develop.

Solaris also provided an update of the proposed Solaris Exploration spin-out, and when completed, it is expected that 100% of the common shares of Solaris Exploration will be spun out to shareholders of Solaris relative to their current shareholdings. Details of the corporate update are as follows:

Corporate Update on Proposed Solaris Exploration Spin-Out

Solaris continues to advance the proposed spin-out and has made considerable progress with the internal re-organization of the Company, its subsidiaries and mineral concessions including the transfer of its non-core assets held in Ecuador outside of the Warintza porphyry cluster (involving the authorization of the Ministry of Energy and Mines), Peru, Chile and Mexico into a newly incorporated wholly-owned subsidiary of Solaris named Solaris Exploration Inc. Following the internal re-organization, it is expected that 100% of the common shares of Solaris Exploration Inc. will be spun out to shareholders of Solaris relative to their shareholdings (refer to press release dated December 6, 2021). 

Source: Solaris Resources

A full update from Warintza and the regional exploration program is as follows: 

Warintza Update

Exploration activities at the Warintza Project continue with seven drill rigs targeting high value growth of the recently reported Warintza Mineral Resource Estimate (refer to press release dated April 18, 2022), with drilling at Warintza Central targeting extensions to near surface, high-grade mineralization, and major growth targeted from the expansion of drill coverage at Warintza East within a largely undrilled footprint. With the protests in Ecuador having concluded on June 30, the flow of samples from the Company’s core processing facility to its prep lab, which has now resumed operations, and onward for final assay in Lima has restarted, with a considerable backlog of assays pending.

Regional Exploration Update

Solaris has undertaken the first significant program of regional exploration at Warintza since the original stream sediment sampling program that identified the Warintza porphyry cluster in the 1990s. This work has identified additional porphyry targets (refer to Figure 1), potentially expanding the footprint of the cluster to the northeast, and possibly a new area of porphyry emplacement to the west, approximately halfway to the adjacent San Carlos copper porphyry deposit.

In addition, this work has established a series of skarn targets, as well as a large high sulphidation epithermal target adjacent to the Warintza porphyry cluster where overlapping mineralized porphyries have intruded a layered sequence of carbonate and volcanic rocks that have provided a fertile setting to develop these styles of mineralization.

Porphyry Targets:

  • Mateo: 3km x 1.4km area of copper-molybdenum enrichment in soil samples located approximately 5km to the east of Warintza East. A program of detailed mapping and sampling is underway to refine the target in support of drilling.
  • Cora: 1.2km x 1.4km copper-molybdenum-gold soil anomaly in andesitic volcanic sequences cut by porphyry dikes approximately 3km to the northeast of Warintza East. This anomaly resembles those that defined the Warintza East and Warintza South discoveries. Detailed mapping and sampling are planned to refine the target in support of drilling.
  • Medio Camino: 3.5km x 1.5km area of porphyry-related alteration, and copper-molybdenum veining 5km to the west of Warintza West and 7km east of the adjacent San Carlos copper porphyry deposit. An extensive program of soil and rock chip sampling has been completed to refine the large target area, with results pending.

Skarn Targets:

Five skarn targets have been identified with three of these forming a partial arc on the northeastern side of the Warintza porphyry cluster, which is typical of skarn mineralization related to porphyry systems.

  • Playas and Justo: Extensive mineral alteration typical of skarn systems has been identified in an area of copper mineralization concentrated in a permeable horizon 3.5km northwest of Warintza West. Soil sampling of the 10km2 area surrounding the Justo target has been completed in an effort to refine the target, with results pending. Soil sampling is also planned at the Playas target, along with detailed mapping at both targets based on the results of soil sampling.

  • Betty and Yawi: Betty, a 1.2km x 1.4km skarn and potential carbonate replacement target located 0.5km north of Warintza Central, features significant copper values in rock samples in carbonate horizons within volcano-sedimentary sequences. Within the Yawi target, a 2km x 1km skarn/carbonate replacement target features strongly anomalous zinc values in limited soil sampling within a high conductivity anomaly interpreted from ZTEM. Additional soil sampling is planned at both targets.

  • La Celestina: Marble exposed in streams in this 1.7km x 1.2km area host copper-zinc veinlets that may represent leakage from a mineralized zone below, with soil geochemistry showing enrichment of pathfinder elements and anomalous copper. Two windows of garnet-bearing skarn containing copper mineralization are exposed through the marble. Detailed mapping and sampling of marble and exposed skarn are underway to help define drill targets.

High Sulphidation Epithermal Gold Target

  • Caya: Large 5km x 3km gold anomaly in stream sediments, 6km to the northeast of Warintza East, where recent follow-up soil and rock sampling in the southern part of the anomaly has identified a flat-lying volcano-sedimentary layer that has a high permeability over at least 300m in thickness. In this portion of the anomaly, an area of 0.7km x 1.3km features anomalous gold, copper and pathfinder element values in soil and rock samples, and a concentration of dickite clay and vuggy silica, characteristic of high sulphidation systems.

Figure 1 – Regional Map of Solaris Land Package in Ecuador

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
The Warintza Project. Source: Solaris Resources

Solaris Resources (TSX:SLS) has announced an agreement with the Government of Ecuador that will secure the stability of its Warintza Project in southeastern Ecuador. The company has signed an Investment Protection Agreement that provides a foundation of certainty for the legal framework governing the Warintza Project. The agreement outlines further affirmation of stable mining regulations, security of title, and investment for the term of the agreement, on top of significant new tax incentives to accelerate development at the project.

Highlights from the agreement:

  1. The IPA provides a foundation of certainty with respect to the legal framework governing the Project, including stable mining regulations, security of title and investment, and new tax incentives to accelerate development
  2. 5% reduction of income tax, fixing the income tax rate at 20% (applicable to SLS), exemption from capital outflow tax, and exemption of all import duties for the import of goods needed for new investments
  3. Specific protections relate to the prohibition of all forms of confiscation, non-discriminatory treatment and equal playing field, legal security, tax stability and international arbitration
  4. IPA signing ceremony to take place with the Warints and Yawi communities at the Project in July. SLS recently amended its Impact and Benefits Agreement with these communities reaffirming their support for the responsible advancement of Warintza

Ms. Lorena Konanz, Vice Minister of Export and Investment Promotion of the Government of Ecuador, stated, “From day one, our administration has been focused on encouraging sustainable and transparent economic growth in Ecuador with incentives to facilitate major investments in the country. In the mining sector, our most important goal is to ensure that development is responsible, environmentally friendly, and socially-committed, as at the Warintza Project.”

Mr. Vicente Tsakimp, Coordinator of the Warintza Project Strategic Alliance, stated, “We are excited to be part of the successful advancement of Warintza and show the industry that it is possible to develop a mining project in a responsible and inclusive way. The people of Warints and Yawi welcome President Lasso’s approach which promotes the development of remote communities as this has had a direct impact on our families’ economy, living conditions and opportunities.”

Mr. Daniel Earle, President & CEO, commented, “President Lasso´s administration continues to take consequential action to accelerate the development of the formal mining sector in Ecuador. Its positive approach of regulatory reform and meaningful tax relief focused on major new projects like Warintza, which embrace responsible approaches to community development and environmental protection, will pay great dividends to the people of Ecuador for generations to come. We are humbled to operate in service of its vision.”

The agreement will include a 5% income tax reduction, fixing the total income tax rate applicable to Solaris Resources at 20%. There will also be an exemption from the capital outflow tax and all import duties for any import of goods needed for new investments in the Warintza project. The signing ceremony for the agreement will take place with the participation of the Warints and Yawi communities, two important community partners for the Warintza Project and Solaris, in the village of Warintza sometime in July 2022.

The other notable parts of the agreement are the specific protections related to the prohibition of all forms of confiscation, non-discriminatory treatment and equal playing field, legal security, tax stability, and international arbitration if there are any disputes about the Warintza Project. With countries like Peru experiencing upheaval in the mining industry and nationalization of resources and projects in Mexico, Ecuador and the communities of Warints and Yawi have shown that collaborative, collective work is not only possible, but the most beneficial form of business for all stakeholders.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has reported assay results from a series of holes at the Warintza Project. The drilling at the holes is aimed at upgrading and growing mineral resources at the project, which was recently released.

Mr. Jorge Fierro, Vice President, Exploration, commented in a press release: “Ongoing follow-up drilling from existing and newly constructed platforms aims to expand on the Northeast Extension zone and grow the high-grade indicative starter pit, while also targeting areas within Warintza Central where resource classification can be upgraded with targeted drilling. In addition, we have completed a considerable amount of drilling from our recent Warintza East discovery targeting major growth with assays pending.”

Highlights are listed below, with a corresponding image in Figure 1 and detailed results in Tables 1-2.

Northeast Extension

SLS-57 was collared at the northeastern limit of the Warintza Central grid and drilled northeast into an entirely open volume, returning 230m of 0.73% CuEq¹ from 56m depth within a broader interval of 926m of 0.61% CuEq¹ from surface, extending the zone 200m to the northeast where it remains open.

Additional drilling aimed at expanding the zone to the north from this platform and broadening the zone with holes from the platform located 200m to the west where SLS-48 returned 100m of 1.64% CuEq² from 50m depth within 852m of 0.56% CuEq² have been completed with assays pending.

The Northeast Extension zone is characterized by near surface, high-grade mineralization, and represents a priority target for growth of the ‘Indicative Starter Pit’ recently estimated at 180 Mt at 0.82% CuEq1 (Indicated) and 107 Mt at 0.73% CuEq1 (Inferred) within the Warintza Mineral Resource Estimate³ (“MRE”).

Warintza Central

A limited program of follow-up drilling at Warintza Central within the MRE envelope is aimed at upgrading targeted volumes that the geological model predicts hold potential for higher grades than the MRE reflects, as well as increasing the confidence of mineral resources in the Inferred category.

SLS-56 was collared from the southeastern portion of the grid and drilled east, returning 102m of 0.90% CuEq¹ from 48m depth within a broader interval aimed at adding definition to the southern portion of the overlap between the Warintza Central and Warintza East deposits.

SLS-60 was collared from the central portion of the grid and drilled south, returning 154m of 0.90% CuEq¹ from 70m depth within a broader interval of 829m of 0.58% CuEq¹ from 44m depth.

SLS-61 was collared from the south-central portion of the grid and drilled southwest, returning 930m of 0.77% CuEq¹ from surface, successfully infilling data in this area.

SLS-58 was collared from the south-central portion of the grid and drilled northeast into an area that the exploration model predicted could be upgraded, and successfully returned 741m of 0.62% CuEq¹ from 102m depth, improving on the grade modelled in this volume.

SLS-59 was collared from the southwestern portion of the grid and drilled northeast, returning 238m of 0.85% CuEq¹ from near surface within a broader interval of 511m of 0.73% CuEq¹ from surface.

Figure 1 – Plan View of Warintza Central Drilling Released to Date

Source: Solaris Resources

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-61 May 26, 2022 2 932 930 0.62 0.03 0.07 0.77
SLS-60 44 873 829 0.50 0.01 0.04 0.58
Including 70 224 154 0.81 0.02 0.05 0.90
SLS-59 2 513 511 0.54 0.04 0.07 0.73
Including 34 272 238 0.67 0.03 0.08 0.85
SLS-58 102 843 741 0.48 0.03 0.06 0.62
SLS-57 0 926 926 0.49 0.02 0.08 0.61
Including 56 286 230 0.59 0.03 0.08 0.73
SLS-56 48 606 558 0.33 0.01 0.03 0.38
Including 48 150 102 0.80 0.02 0.04 0.90

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-61 800191 9648065 1573 967 255 -72
SLS-60 800258 9648097 1559 873 190 -80
SLS-59 799765 9648033 1571 513 65 -70
SLS-58 799942 9647932 1643 843 40 -70
SLS-57 800383 9648303 1412 964 40 -71
SLS-56 800126 9648032 1566 920 88 -50
Notes to table: The coordinates are in WGS84 17S Datum.

Endnotes

  1. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 4.0476 × Mo (%) + 0.487 × Au (g/t), utilizing metal prices of US$3.50/lb Cu, US$15.00/lb Mo, and US$1,500/oz Au, and assumes recoveries of 90% Cu, 85% Mo, and 70% Au based on preliminary metallurgical test work.
  2. Refer to press release dated February 28, 2022. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of US$3.00/lb Cu, US$10.00/lb Mo, and US$1,500/oz Au. No adjustments were made for recovery prior to the updated Warintza Mineral Resource Estimate, as the metallurgical data to allow for estimation of recoveries was not yet available. Solaris defined CuEq for reporting purposes only.
  3. Refer to Solaris press release dated April 18, 2022, stating updated Warintza Mineral Resource Estimate.

Source: Solaris Resources

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) has had the highest insider buying for its industry group, leading all issuers in the TSX materials sector, and that rate continues to climb. The company has announced that it received about C$30.4 million from the exercise of common share purchase warrants. The company is now fully funded through to mid-2023 for its drill program at the Warintza Project in Ecuador.

Mr. Daniel Earle, President & CEO, commented in a press release: “With last year’s intensive resource drilling program at Warintza Central having established a voluminous mineral resource estimate and robust starter pit, we are now directing our efforts to immediate high-impact drilling aimed at expanding the starter pit in open extensions of near surface, high-grade mineralization at Warintza Central, expanding the minimally-drilled Warintza East discovery, and testing the potential of the nearby Warintza West discovery.”

The total insider buying has now crossed $170 million dollars in the past 24 months, as a portion of the warrants has been exercised by Solaris management. Executive Chairman Richard Warke is the main shareholder exercising the most warrants. In the second half of 2022 and the first half of 2023, more warrant expires will occur. Should holders choose to exercise all of them, the company would bring in another C$54.1 million, with approximately 63% of the still outstanding warrants held by management.

A recent mineral resource update for Warintza Central showed in-pit resources of 579 Mt at 0.59% CuEq (Ind) and 887 Mt at 0.47% CuEq (Inf). This also includes an ‘indicative starter pit’ of 180 Mt at 0.82% CuEq (Ind) & 107 Mt at 0.73% CuEq (Inf). Additionally, the company is now targeting high-grade extensions and major growth in cluster. Warintza East and Warintza West will now become the focus for the company as it advances its flagship project.

Warintza Mineral Resource Plan View (1,400m Elevation). Source: Solaris Resources

Highlights from the Warintza Central mineral resource update are as follows:

  • In-Pit Indicated mineral resources of 579 million tonnes (“Mt”) at 0.59% copper equivalent¹ (“CuEq”) and Inferred mineral resources of 887 Mt at 0.47% CuEq¹ above a 0.3% CuEq cut-off grade
  • Includes ‘Indicative Starter Pit’ comprised of Indicated mineral resources of 180 Mt at 0.82% CuEq² and Inferred mineral resources of 107 Mt at 0.73% CuEq² above 0.6% CuEq cut-off grade
  • High Quality – Expected low strip ratio ‘Indicative Starter Pit’ and ultimate pit, zoned from high-grade at surface to low grade at depth, consistent, clean sulphide mineralogy free of deleterious elements
  • High-Grade Growth – Ongoing drilling focused on open extensions of near surface, high-grade mineralization to the northeast and southeast of Warintza Central
  • ‘Super Pit’ Growth – Warintza Central pit shell includes overlapping portion of Warintza East, discovered mid-2021, a target wide open for major growth potential within a shared pit
  • Cluster Potential – Warintza Central forms part of a 7km x 5km cluster of porphyry deposits, where in addition to East, recent discoveries at West and South offer major growth potential
  • Structural Advantages – Set within mining district featuring access to highway, abundant and low-cost hydroelectric power, fresh water, labour and low elevation

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

Insider buying at Solaris Resources (TSX:SLS) continues to show a large amount of stock being purchased throughout the last two years. On April 20, 2022, Richard Warke, Executive Chairman, bought C$35 million of Solaris stock through the exercise of 3,500,000 warrants. Warrants were set at $10 to buy 5 million shares of Solaris Resources from Equinox Gold. The warrants would have expired on April 26th, 2022.

Christian Milau, CEO of Equinox Gold, stated: “As a strategic and supportive shareholder, Equinox Gold is pleased to accommodate Solaris in this transaction, which benefits both companies. The proceeds from this sale will further strengthen Equinox Gold’s already solid balance sheet as we continue to execute on our expansion and growth objectives.”

A recent mineral resource update and the ongoing success of the drill program at Warintza may have insiders optimistic about the future of the company since they have been net buyers of shares since the IPO. The total insider shareholding of any given company gives investors an overall view of whether management and other inside investors are aligned with other shareholders.

Source: Solaris Resources

Sunny Lowe, CFO of Solaris Resources (TSX:SLS), also purchased approximately C$100K in Solaris shares on the open market on Monday, April 25th, 2022. Total insider investment has reached over C$165 million in less than 24 months now, demonstrating a significant amount of confidence in the company by those in charge of its success. In the TSX materials sector, this places Solaris Resources (TSX:SLS) in the lead for insider buying. The company has seen strong interest in the stock since its IPO, up nearly 700%.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) (OTC:SLSSF) has announced a highly-anticipated mineral resource update to Warintza Central at the Warintza Project in Ecuador. The company reported in-pit resources of 579 Mt at 0.59% CuEq (Ind) & 887 Mt at 0.47% CuEq (Inf). This also includes an ‘indicative starter pit’ of 180 Mt at 0.82% CuEq (Ind) & 107 Mt at 0.73% CuEq (Inf). Additionally, the company is now targeting high-grade extensions and major growth in cluster.

Daniel Earle, President & CEO of Solaris Resources, commented in a press release: “After only eighteen months of drilling, primarily in Warintza Central, one of the four major discoveries made on the property to date, the MRE establishes baseline credentials for the Project of hosting a robust inventory, featuring a high-grade indicative starter pit and low strip ratio, within a mining district offering major structural advantages from highway access, abundant and low-cost hydroelectric power, fresh water, labour and low elevation. Ongoing drilling is targeting further rapid growth, with an emphasis on the open extensions of near surface, high-grade mineralization at Warintza Central and expanding our recent Warintza East discovery to include it within a shared pit, while testing the further potential within the cluster.”

The announcement comes on the heels of another recent announcement of assay results at Warintza East, and added to near-surface, high-grade northeast and southeast extension.

Highlights from the mineral resource update are as follows:

Highlights

  • In-Pit Indicated mineral resources of 579 million tonnes (“Mt”) at 0.59% copper equivalent¹ (“CuEq”) and Inferred mineral resources of 887 Mt at 0.47% CuEq¹ above a 0.3% CuEq cut-off grade
  • Includes ‘Indicative Starter Pit’ comprised of Indicated mineral resources of 180 Mt at 0.82% CuEq² and Inferred mineral resources of 107 Mt at 0.73% CuEq² above 0.6% CuEq cut-off grade
  • High Quality – Expected low strip ratio ‘Indicative Starter Pit’ and ultimate pit, zoned from high-grade at surface to low grade at depth, consistent, clean sulphide mineralogy free of deleterious elements
  • High-Grade Growth – Ongoing drilling focused on open extensions of near surface, high-grade mineralization to the northeast and southeast of Warintza Central
  • ‘Super Pit’ Growth – Warintza Central pit shell includes overlapping portion of Warintza East, discovered mid-2021, a target wide open for major growth potential within a shared pit
  • Cluster Potential – Warintza Central forms part of a 7km x 5km cluster of porphyry deposits, where in addition to East, recent discoveries at West and South offer major growth potential
  • Structural Advantages – Set within mining district featuring access to highway, abundant and low-cost hydroelectric power, fresh water, labour and low elevation

Table 1: Warintza Mineral Resource Estimate Summary and Cut-Off Grade Sensitivity

Cut-off Category Tonnage Grade Contained Metal
CuEq
(%)
(Mt) CuEq
(%)
Cu
(%)
Mo
(%)
Au
(g/t)
CuEq
(Mt)
Cu
(Mt)
Mo
(Mt)
Au
(Moz)
0.2 % Indicated 736 0.52 0.40 0.02 0.05 3.84 2.95 0.18 1.11
Inferred 1,558 0.37 0.31 0.01 0.03 5.80 4.80 0.19 1.63
0.3% (Base) Indicated 579 0.59 0.47 0.03 0.05 3.45 2.70 0.15 0.93
Inferred 887 0.47 0.39 0.01 0.04 4.17 3.48 0.13 1.08
0.4 % Indicated 442 0.67 0.54 0.03 0.05 2.97 2.38 0.12 0.77
Inferred 539 0.55 0.47 0.01 0.04 2.96 2.53 0.08 0.71
‘Indicative Starter Pit’
0.6 % Indicated 180 0.82 0.67 0.03 0.07 1.49 1.20 0.06 0.38
Inferred 107 0.73 0.64 0.02 0.05 0.79 0.69 0.02 0.17

Notes to Table 1:

  1. The mineral resource estimates are reported in accordance with the CIM Definition Standards for Mineral Resources & Mineral Reserves, adopted by CIM Council May 10, 2014.
  2. Reasonable prospects for eventual economic extraction assume open-pit mining with conventional flotation processing and were tested using NPV Scheduler™ pit optimization software with the following assumptions: metal prices of US$3.50/lb Cu, US$15.00/lb Mo, and US$1,500/oz Au; operating costs of US$1.50/t + US$0.02/t per bench for mining, US$4.50/t milling, US$0.90/t G&A; recoveries of 90% Cu, 85% Mo, and 70% Au.
  3. Resource includes grade capping and internal dilution. Grade was interpolated by ordinary kriging populating a block model with block dimensions of 25m x 25m x 15m.
  4. The ‘Indicative Starter Pit’ is based on the same assumptions as the Resource except utilized metal prices of US$1.00/lb Cu, US$7.50/lb Mo, and US$750/oz Au. No economic analysis has been completed by the Company and there is no guarantee than an ‘Indicative Starter Pit’ will be realized or prove to be economic.
  5. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
  6. Copper equivalent assumes recoveries of 90% Cu, 85% Mo, and 70% Au based on preliminary metallurgical testwork, and metal prices of US$3.50/lb Cu, US$15.00/lb Mo, and US$1,500/oz Au. CuEq formula: CuEq (%) = Cu (%) + 4.0476 × Mo (%) + 0.487 × Au (g/t).
  7. The Qualified Person is Mario E. Rossi, FAusIMM,RM-SME, Principal Geostatistician of Geosystems International Inc.
  8. All figures are rounded to reflect the relative accuracy of the estimate.
  9. The effective date of the mineral resource estimate is April 1, 2022.

The corresponding Technical Report disclosing the MRE in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) will be prepared by Mr. Rossi and available on SEDAR under the Company’s profile at www.sedar.com within 45 days of this news release.

  1. Copper equivalent assumes recoveries of 90% Cu, 85% Mo, and 70% Au based on preliminary metallurgical testwork, and metal prices of US$3.50/lb Cu, US$15.00/lb Mo, and US$1,500/oz Au. CuEq formula: CuEq (%) = Cu (%) + 4.0476 × Mo (%) + 0.487 × Au (g/t).
  2. The Company anticipates that a near surface, high grade portion of the Resource may form the basis of an ‘Indicative Starter Pit’ once an economic analysis of the Project is complete. No economic analysis has been completed by the Company and there is no guarantee an ‘Indicative Starter Pit’ will be realized or prove to be economic. The ‘Indicative Starter Pit’ is based on the same assumptions as the Resource except utilized metal prices of US$1.00/lb Cu, US$7.50/lb Mo, and US$750/oz Au.

Resource Estimation Methodology and Parameters

Indicated mineral resources were defined where the nominal drill hole spacing is 120m. The classification reflects not only the drill spacing, but the confidence level in the continuity of the grade and the geometry of the deposit. Inferred mineral resources were defined by blocks which were estimated with less stringent requirements within search ellipses defined for each domain to a maximum distance of 350m. Resources include grade capping and internal dilution. Grade was interpolated by ordinary kriging populating a block model with block dimensions of 25m x 25m x 15m. The Indicated and Inferred mineral resources are classified in a manner that is consistent with the May 10, 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. In Mr. Rossi’s opinion, there are currently no relevant factors or legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.

Source: Solaris Resources

Figure 1 – Warintza Mineral Resource Plan View (1,400m Elevation)

Source: Solaris Resources

Figure 2 – Warintza Mineral Resource Long Section

Source: Solaris Resources

Figure 3 – Warintza Mineral Resource Cross Section

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

Solaris Resources (TSX:SLS) (OTC:SLSSF) has reported assay results from additional holes at Warintza Project as part of its mineral resources growth drilling. The company also recently added to near-surface, high-grade northeast and southeast extension. Solaris has said that the extension to the northeast and southeast are not priority targets and therefore will be targeted for further growth through step-out drilling.

Highlights from drilling are as follows:

Key Takeaways

Since the discovery of Warintza East in mid-2021, approximately 1km east of Warintza Central, limited drilling has been completed on the open area between the two deposits that would fall into the eastern sector of the conceptual pit design for Warintza Central as uncategorized waste – these results now establish continuity of mineralization between the two deposits with Warintza East remaining entirely open and undrilled to the north, south and east for future potential growth

  • SLSE-06 was collared from the original platform in the middle of Warintza East and drilled west-northwest into an entirely open volume, returning 484m of 0.42% CuEq¹ from surface

  • SLSE-08 was collared from the same platform and drilled northwest into an open volume, returning 142m of 0.65% CuEq¹ from near surface within a broader interval of 536m of 0.43% CuEq¹ from surface

  • SLSE-04 was collared between Warintza Central and Warintza East and drilled west-southwest into a partially open volume, returning 616m of 0.63% CuEq¹ from 276m depth within a broader interval of 892m of 0.50% CuEq¹ from surface, establishing the overlap of the two deposits within the Warintza Central pit shell
  • SLSE-03 was collared from the same platform and drilled west-northwest into a partially open volume, returning 326m of 0.62% CuEq¹ from 276m depth within a broader interval of 818m of 0.38% CuEq¹ from 38m depth, further confirming the overlap of the two deposits
  • SLSE-05, collared from the same platform, was drilled north-northwest into a partially open area, returning 268m of 0.53% CuEq¹ from 446m depth within a broader interval of 714m of 0.32% CuEq¹ from surface

Updated Warintza Central Mineral Resource Estimate expected to be issued in April

To date, 62 holes have been completed at Warintza Central with assays reported for 54 of these and 8 holes have been completed at Warintza East with results reported for all holes

Mr. Jorge Fierro, Vice President, Exploration, commented: “Following the final Warintza Central results released April 4, these results represent the final holes from Warintza East to be included in the forthcoming mineral resource update, and serve to convert what would otherwise be uncategorized waste within the expected pit shell in the area where Warintza Central and Warintza East overlap.”

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLSE-08 Apr 11, 2022 8 544 536 0.35 0.02 0.04 0.43
Including 18 160 142 0.56 0.01 0.06 0.65
SLSE-07 632 1069 437 0.29 0.02 0.04 0.37
SLSE-06 0 484 484 0.33 0.02 0.04 0.42
SLSE-05 0 714 714 0.26 0.01 0.05 0.32
Including 446 714 268 0.42 0.02 0.08 0.53
SLSE-04 0 892 892 0.43 0.01 0.04 0.50
Including 276 892 616 0.54 0.02 0.04 0.63
SLSE-03 38 856 818 0.29 0.02 0.03 0.38
Including 276 602 326 0.48 0.03 0.05 0.62
SLS-54 Apr 4, 2022 0 1093 1093 0.45 0.02 0.04 0.56
Including 50 406 356 0.62 0.02 0.05 0.73
SLS-53 10 967 957 0.39 0.01 0.03 0.46
Including 16 192 176 0.65 0.03 0.04 0.78
SLS-52 42 1019 977 0.39 0.01 0.03 0.45
Including 96 578 482 0.55 0.01 0.03 0.62
SLS-51 36 1048 1012 0.38 0.01 0.06 0.47
Including 130 1048 918 0.41 0.01 0.05 0.50
SLS-50 336 458 122 0.14 0.04 0.03 0.30
SLS-49 Feb 28, 2022 50 867 817 0.50 0.02 0.04 0.60
SLS-48 50 902 852 0.45 0.02 0.05 0.56
SLS-47 48 859 811 0.41 0.02 0.05 0.51
SLS-46 48 680 632 0.27 0.01 0.03 0.31
SLS-45 44 608 564 0.37 0.01 0.03 0.41
SLS-44 6 524 518 0.16 0.05 0.03 0.35
SLS-43 138 350 212 0.17 0.03 0.03 0.30
SLS-42 52 958 906 0.42 0.02 0.06 0.53
SLSS-01 Jan 18, 2022 0 755 755 0.28 0.02 0.02 0.36
SLS-41 Dec 14, 2021 0 592 592 0.42 0.02 0.06 0.52
SLS-40 8 1056 1048 0.39 0.01 0.03 0.46
SLS-39 28 943 915 0.49 0.01 0.04 0.56
SLS-38 58 880 822 0.28 0.01 0.05 0.35
SLS-37 28 896 868 0.39 0.05 0.05 0.58
SLS-36 Nov 15, 2021 2 1082 1080 0.33 0.01 0.04 0.41
SLS-35 48 968 920 0.53 0.02 0.04 0.62
SLS-34 Oct 25, 2021 52 712 660 0.36 0.02 0.06 0.47
SLS-33 40 762 722 0.55 0.03 0.05 0.69
SLSE-02 0 1160 1160 0.20 0.01 0.04 0.25
SLS-32 Oct 12, 2021 0 618 618 0.38 0.02 0.05 0.48
SLS-31 8 1008 1000 0.68 0.02 0.07 0.81
SLS-30 2 374 372 0.57 0.06 0.06 0.82
SLSE-01 Sep 27, 2021 0 1213 1213 0.21 0.01 0.03 0.28
SLS-29 Sep 7, 2021 6 1190 1184 0.58 0.02 0.05 0.68
SLS-28 6 638 632 0.51 0.04 0.06 0.68
SLS-27 22 484 462 0.70 0.04 0.08 0.91
SLS-26 July 7, 2021 2 1002 1000 0.51 0.02 0.04 0.60
SLS-25 62 444 382 0.62 0.03 0.08 0.77
SLS-24 10 962 952 0.53 0.02 0.04 0.62
SLS-19 6 420 414 0.21 0.01 0.06 0.31
SLS-23 May 26, 2021 10 558 548 0.31 0.02 0.06 0.42
SLS-22 86 324 238 0.52 0.03 0.06 0.68
SLS-21 2 1031 1029 0.63 0.02 0.04 0.73
SLS-20 April 19, 2021 18 706 688 0.35 0.04 0.05 0.51
SLS-18 78 875 797 0.62 0.05 0.06 0.83
SLS-17 12 506 494 0.39 0.02 0.06 0.50
SLS-16 Mar 22, 2021 20 978 958 0.63 0.03 0.06 0.77
SLS-15 2 1231 1229 0.48 0.01 0.04 0.56
SLS-14 0 922 922 0.79 0.03 0.08 0.94
SLS-13 Feb 22, 2021 6 468 462 0.80 0.04 0.09 1.00
SLS-12 22 758 736 0.59 0.03 0.07 0.74
SLS-11 6 694 688 0.39 0.04 0.05 0.57
SLS-10 2 602 600 0.83 0.02 0.12 1.00
SLS-09 122 220 98 0.60 0.02 0.04 0.71
SLSW-01 Feb 16, 2021 32 830 798 0.25 0.02 0.02 0.31
SLS-08 Jan 14, 2021 134 588 454 0.51 0.03 0.03 0.62
SLS-07 0 1067 1067 0.49 0.02 0.04 0.60
SLS-06 Nov 23, 2020 8 892 884 0.50 0.03 0.04 0.62
SLS-05 18 936 918 0.43 0.01 0.04 0.50
SLS-04 0 1004 1004 0.59 0.03 0.05 0.71
SLS-03 Sep 28, 2020 4 1014 1010 0.59 0.02 0.10 0.71
SLS-02 0 660 660 0.79 0.03 0.10 0.97
SLS-01 Aug 10, 2020 1 568 567 0.80 0.04 0.10 1.00
Notes to table: True widths cannot be determined at this time.

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLSE-08 801485 9648192 1170 959 305 -70
SLSE-07 800749 9648146 1282 1069 84 -50
SLSE-06 801485 9648192 1170 1078 285 -55
SLSE-05 800749 9648146 1282 737 330 -65
SLSE-04 800749 9648146 1282 893 257 -45
SLSE-03 800749 9648146 1282 909 270 -45
Notes to table: The coordinates are in WGS84 17S Datum.

(1) No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as:  CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu – US$3.00/lb, Mo – US$10.00/lb and Au – US$1,500/oz.

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Figure 1 – Plan View of Warintza Drilling Released to Date. Source: Solaris Resources

Solaris Resources (TSX:SLS) has reported assay results from a series of additional holes from mineral resource growth drilling at its Warintza Project in southeastern Ecuador. The results highlighted expansion of the growing northeastern extension area, and that drilling has expanded the southeastern extension area. The southeastern extension remains open in near surface, high-grade mineralization.

Mr. Jorge Fierro, Vice President of Exploration for Solaris, said in a press release: “These final holes expand on two key growth areas with near surface, high-grade mineralization on the edge of resource drilling that remains open. These holes will be included in the forthcoming resource update; further extensions to the northeast and southeast represent priority targets for further growth with step-out drilling commencing shortly.”

On top of the exciting assay results, the company has noted that an updated Warintza Central Mineral Resource Estimate is expected to be issued in April. This is a highly anticipated catalyst for the company and the Warintza Project.

Highlights

Additional drilling has expanded the growing northeast extension area, which remains open with follow-up and step-out drilling underway. This zone is characterized by near surface, high-grade mineralization, as detailed below, at the northeastern limit of drilling at Warintza Central and represents a priority target for further growth.

  • SLS-54 was collared at the northeastern limit of the grid and drilled into an open volume near surface, returning 356m of 0.73% CuEq¹ from 50m depth within a broader interval of 1,093m of 0.56% CuEq¹ from surface
  • This follows from near surface, high-grade mineralization previously reported (refer to press releases dated February 28, 2022, December 14, 2021 and October 25 & 12, 2021) from:
  • SLS-49 – 396m of 0.70% CuEq¹ from 50m depth within 817m of 0.60% CuEq¹
  • SLS-48 – 100m of 1.64% CuEq¹ from 50m depth within 852m of 0.56% CuEq¹
  • SLS-42 – 740m of 0.60% CuEq¹ from 52m depth within 906m of 0.53% CuEq¹
  • SLS-38 – 244m of 0.70% CuEq¹ from 58m depth within 822m of 0.35% CuEq¹
  • SLS-34 – 242m of 0.67% CuEq¹ from 52m depth within 660m of 0.47% CuEq¹
  • SLS-32 – 372m of 0.64% CuEq¹ from 46m depth within 618m of 0.48% CuEq¹
  • Follow-up drilling from existing platforms is underway, with a 260m northeast step-out platform recently completed and a second platform stepping out further to the northeast under construction

Additional drilling has expanded the growing southeast extension area, which remains open in near surface, high-grade mineralization.

  • SLS-52 was collared on the eastern side of the grid and drilled southeast into an open volume near surface, returning 482m of 0.62% CuEq¹ from 96m depth, within a broader interval of 977m of 0.45% CuEq¹ from near surface that infilled drilling at depth
  • SLS-53 was collared from a southeastern platform and drilled south into an open volume near surface, returning 176m of 0.78% CuEq¹ from 16m depth, within a broader interval of 957m of 0.46% CuEq¹ from 10m depth that infilled drilling at depth
  • This follows from near surface, high-grade mineralization previously reported (refer to press releases dated February 28, 2022, December 14, 2021 and November 15, 2021) from:
  • SLS-45 – 236m of 0.56% CuEq¹ from 44m depth within 564m of 0.41% CuEq¹
  • SLS-39 – 368m of 0.73% CuEq¹ from 90m depth within 915m of 0.56% CuEq¹
  • SLS-35 – 326m of 0.80% CuEq¹ from 50m depth within 920m of 0.62% CuEq¹
  • Additional platform construction to support follow-up and step-out drilling to test the further southeast extension of near surface, high-grade mineralization is planned, following the release of the updated mineral resource estimate
  • SLS-51 was collared from the south-central portion of the grid and drilled east into an open volume at surface, returning 918m of 0.50% CuEq¹ from 130m depth within a broader interval of 1,012m of 0.47% CuEq¹ from near surface that infilled drilling at depth

Updated Warintza Central Mineral Resource Estimate expected to be issued in April.

To date, 62 holes have been completed at Warintza Central with assays reported for 54 of these.

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-54 Apr 4, 2022 0 1093 1093 0.45 0.02 0.04 0.56
Including 50 406 356 0.62 0.02 0.05 0.73
SLS-53 10 967 957 0.39 0.01 0.03 0.46
Including 16 192 176 0.65 0.03 0.04 0.78
SLS-52 42 1019 977 0.39 0.01 0.03 0.45
Including 96 578 482 0.55 0.01 0.03 0.62
SLS-51 36 1048 1012 0.38 0.01 0.06 0.47
Including 130 1048 918 0.41 0.01 0.05 0.50
SLS-50 336 458 122 0.14 0.04 0.03 0.30
SLS-49 Feb 28, 2022 50 867 817 0.50 0.02 0.04 0.60
SLS-48 50 902 852 0.45 0.02 0.05 0.56
SLS-47 48 859 811 0.41 0.02 0.05 0.51
SLS-46 48 680 632 0.27 0.01 0.03 0.31
SLS-45 44 608 564 0.37 0.01 0.03 0.41
SLS-44 6 524 518 0.16 0.05 0.03 0.35
SLS-43 138 350 212 0.17 0.03 0.03 0.30
SLS-42 52 958 906 0.42 0.02 0.06 0.53
SLSS-01 Jan 18, 2022 0 755 755 0.28 0.02 0.02 0.36
SLS-41 Dec 14, 2021 0 592 592 0.42 0.02 0.06 0.52
SLS-40 8 1056 1048 0.39 0.01 0.03 0.46
SLS-39 28 943 915 0.49 0.01 0.04 0.56
SLS-38 58 880 822 0.28 0.01 0.05 0.35
SLS-37 28 896 868 0.39 0.05 0.05 0.58
SLS-36 Nov 15, 2021 2 1082 1080 0.33 0.01 0.04 0.41
SLS-35 48 968 920 0.53 0.02 0.04 0.62
SLS-34 Oct 25, 2021 52 712 660 0.36 0.02 0.06 0.47
SLS-33 40 762 722 0.55 0.03 0.05 0.69
SLSE-02 0 1160 1160 0.20 0.01 0.04 0.25
SLS-32 Oct 12, 2021 0 618 618 0.38 0.02 0.05 0.48
SLS-31 8 1008 1000 0.68 0.02 0.07 0.81
SLS-30 2 374 372 0.57 0.06 0.06 0.82
SLSE-01 Sep 27, 2021 0 1213 1213 0.21 0.01 0.03 0.28
SLS-29 Sep 7, 2021 6 1190 1184 0.58 0.02 0.05 0.68
SLS-28 6 638 632 0.51 0.04 0.06 0.68
SLS-27 22 484 462 0.70 0.04 0.08 0.91
SLS-26 July 7, 2021 2 1002 1000 0.51 0.02 0.04 0.60
SLS-25 62 444 382 0.62 0.03 0.08 0.77
SLS-24 10 962 952 0.53 0.02 0.04 0.62
SLS-19 6 420 414 0.21 0.01 0.06 0.31
SLS-23 May 26, 2021 10 558 548 0.31 0.02 0.06 0.42
SLS-22 86 324 238 0.52 0.03 0.06 0.68
SLS-21 2 1031 1029 0.63 0.02 0.04 0.73
SLS-20 April 19, 2021 18 706 688 0.35 0.04 0.05 0.51
SLS-18 78 875 797 0.62 0.05 0.06 0.83
SLS-17 12 506 494 0.39 0.02 0.06 0.50
SLS-16 Mar 22, 2021 20 978 958 0.63 0.03 0.06 0.77
SLS-15 2 1231 1229 0.48 0.01 0.04 0.56
SLS-14 0 922 922 0.79 0.03 0.08 0.94
SLS-13 Feb 22, 2021 6 468 462 0.80 0.04 0.09 1.00
SLS-12 22 758 736 0.59 0.03 0.07 0.74
SLS-11 6 694 688 0.39 0.04 0.05 0.57
SLS-10 2 602 600 0.83 0.02 0.12 1.00
SLS-09 122 220 98 0.60 0.02 0.04 0.71
SLSW-01 Feb 16, 2021 32 830 798 0.25 0.02 0.02 0.31
SLS-08 Jan 14, 2021 134 588 454 0.51 0.03 0.03 0.62
SLS-07 0 1067 1067 0.49 0.02 0.04 0.60
SLS-06 Nov 23, 2020 8 892 884 0.50 0.03 0.04 0.62
SLS-05 18 936 918 0.43 0.01 0.04 0.50
SLS-04 0 1004 1004 0.59 0.03 0.05 0.71
SLS-03 Sep 28, 2020 4 1014 1010 0.59 0.02 0.10 0.71
SLS-02 0 660 660 0.79 0.03 0.10 0.97
SLS-01 Aug 10, 2020 1 568 567 0.80 0.04 0.10 1.00
Notes to table: True widths cannot be determined at this time.

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-54 800383 9648303 1412 1093 160 -74
SLS-53 800126 9648032 1566 967 170 -82
SLS-52 800258 9648097 1559 1019 110 -75
SLS-51 799873 9648008 1632 1048 85 -70
SLS-50 799870 9648315 1414 768 80 -75
Notes to table: The coordinates are in WGS84 17S Datum.

(1) No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as: CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu – US$3.00/lb, Mo – US$10.00/lb and Au – US$1,500/oz.

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

Solaris Resources (TSX:SLS) announced this morning the signing of a Memorandum of Understanding with Electric Corporation of Ecuador (CELEC) to provide low-cost, locally sourced hydroelectric power to the Warintza Project in southeastern Ecuador.

The Warintza Project is Solaris’ flagship exploration project, for which CELEC will provide locally-sourced hydroelectric power from the National Transmission System in Ecuador. This clean-power initiative will provide the primary power to the entire Warintza Project.

The adoption of this plan is aligned with the “Ecuador Zero Carbon Program” created by the Ministry of Environment, Water and Ecological Transition, as well as the National Decarbonization Pact, for which Solaris was one of the first mining signatories in September 2021.

Daniel Earle, President & CEO of Solaris Resources, commented in a press release: “The MOU with CELEC supports our vision to study the potential for electrified operations that maximize the structural benefits of the Warintza Project within an infrastructure-rich mining district with the aim of lowering costs, increasing efficiencies, reducing emissions, and broadly positioning the Project as a leading development opportunity across a range of financial and ESG metrics in the industry.”

Solaris aims to maximize the efficiency possibilities from this enormous, renewable, and low-cost energy source by investigating potential solutions for electrification of infrastructure, mobile mining equipment, including drills, trucks and shovels, material transportation and conveyance, such as gravity-assisted methods, and processing and pumping systems.

Mr. Gonzalo Uquillas Vallejo, General Manager of CELEC, also said: “As a leading strategic public company in the generation and transmission of electric power, we work in compliance with national guidelines to move toward the electrification of all areas of national industry, including large-scale mining, which will be a mainstay for the development of the Ecuadorian economy in the coming decades.”

Solaris has been singled out by the government for its commitment to best practices, and the Warintza Project is expected to set a new industry standard for low-cost, emission-free mining.

This announcement comes as good news for the Warintza Project and for Solaris Resources as a whole. Not only does it reduce the environmental impact of the project, but it also demonstrates Solaris’ commitment to working with the local community and government to create a sustainable future for all.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Copper exploration company Solaris Resources (TSX:SLS) recently announced new assay drilling results from its Warinzta project in southeastern Ecuador. These results come from additional holes that actually increased the size of the “drilled defined envelope of mineralization” at the Warinzta Central location. 

 

Figure 1 – Long Section of Warintza Central Drilling Looking Southeast. Source: Solaris Resources

The drilling of these additional holes provided the area with the highest-grade intersection reported by Solaris to date, as well as high-grade extension to the northeast, south and southeast locations at the Warinzta project. 

As of today, Solaris has completed drilling 58 holes at Warinzta, and 49 of those holes have assays already reported. Mr. Jorge Fierro, Vice President of Exploration of Solaris explained that the initial resource growth drilling program for Warinzta is finally completed and touched on future drilling plans. 

“With this intensive program behind us, the focus of ongoing drilling has turned to pursuing the further extensions of near-surface, high-grade mineralization which remain open, with additional platforms allowing for more aggressive step-outs under construction,” said Fierro in a press release. 

Highlights of the drilling from Solaris are as follows: 

Drilling Returns Highest Grades Reported to Date in Emerging Northeast Extension that Remains Open:

  • SLS-42 was collared at the northeastern limit of the grid and drilled northeast into an entirely open volume, returning 740m of 0.60% CuEq¹ from 52m depth within a broader interval of 906m of 0.53% CuEq¹, extending mineralization in this direction where it remains open
  • SLS-49 was drilled southeast from the same platform and returned 396m of 0.70% CuEq¹ within a broader interval of 817m of 0.60% CuEq¹ from 50m depth, tying the northeast extension to the overlap between Warintza Central and East
  • SLS-48, was collared in an undrilled area ~200m west of SLS-49 and drilled south, returning 100m of 1.64% CuEq¹ from 50m depth, the highest-grade mineralization reported to date, within a broader interval of 852m of 0.56% CuEq¹, extending the near surface high-grade mineralization to the west in that area
  • These results expand Warintza Central by building on an emerging area of near surface, high-grade mineralization; follow-up drilling will pursue further growth by targeting the open areas to the north and northwest, with an additional platform being constructed to pursue further step-outs to the northeast

Drilling Extends Mineralization to Southeast that Remains Open:

  • SLS-45 was collared on the eastern side of the grid and drilled southeast into an entirely open volume, returning 236m of 0.56% CuEq¹ from 44m depth within a broader interval of 564m of 0.41% CuEq¹, extending mineralization to the southeast where it remains open
  • SLS-46 was collared from a southeastern platform and drilled southeast into a partially open volume, returning 168m of 0.69% CuEq¹ from 48m depth within a broader interval of 632m of 0.31% CuEq¹, extending mineralization in this direction where it remains open
  • SLS-47 was collared in the middle of the grid and drilled southeast to infill this area, returning 446m of 0.70% CuEq¹ from 48m depth within a broader interval of 811m of 0.51% CuEq¹, with mineralization remaining open to the south

Figure 2 – Plan View of Warintza Drilling Released to Date

Source: Solaris Resources

Figure 3 – Long Section of 3D Geophysics Looking Southwest

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

Bank of America (BofA) Global Research analysts have reported that beginning in 2025, the copper market will again suffer a deficit due to the lower number of projects currently underway.

Although global copper production by 2023 will increase by 7.7% after an expected shortfall in 2022, output will fall, due to the underperformance of new copper mine construction in recent years.

“While visibility over the near-term project pipeline is good, activity increases come with a wrinkle,” say the bank’s analysts. “Indeed, many of the projects currently developed have been in the making for almost three decades, and with exploration activity relatively limited in recent years, supply increases may fade from 2025.”

BofA predicts several drawbacks preventing copper production from growing. Edgar Blanco Rand, vice-minister of mining in Chile’s previous government, represented this data in a presentation during LME Week. His presentation showed a pipeline of projects planned for 2029 in Chile at a cost of $74 billion with the goal of achieving production of 7 million tons. Edgar Blanco pointed out a stagnation in production since 2000 with 5.7 million tons after 1990, a decade of rapid growth.

“This implies a capex intensity of around $50,000 per tonne, well above the $10,000 to 20,000 per tonne range seen in recent years. As an aggravating factor, the investment will need to be large enough to offset about 1.5 million tonnes of production losses,” says the bank.

The shortfall in copper production is beneficial to exploration companies because they have valuable projects that other companies are interested in acquiring in order to increase production. 

Solaris Resources (TSX:SLS) is responsibly and sustainably pursuing a number of copper projects in the Americas. Its Warintza project, based in Ecuador, is a high-grade open-pit resource within a 7 km x 5 km porphyry copper cluster. The company is also working on discovery drilling at Tamarugo and Ricardo in Chile and Capricho and Paco Orco in Peru.

Warintza’s mining model is a participatory model that promotes state-company-community dialogue based on transparency, collaboration and trust, which contributes to the sustainable socio-economic development of the communities and the project. 

For the copper market to continue to sustain steady production and high-quality projects, exploration companies like Solaris with projects like Warintza will become a priority and highly valuable to the major producers looking to grow output. As a result, this is a company that could be a significant part of the solution for this complex market problem.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

This morning, Solaris Resources (TSX:SLS) announced a huge new discovery at the Warintza South target at the Warintza Project. Ongoing exploration has revealed multiple high-grade targets, and Warintza South is the latest in a string of discoveries at the project. 

Mr. Jorge Fierro, Vice President, Exploration, Solaris Resources, said in a press release, “We are delighted to have made a significant new discovery at Warintza South, with the firstever hole returning a long interval of well mineralized copper porphyry. The multi-km dimensions of the target present a large-scale opportunity. Interpretation of the drill core together with recent mapping and sampling provide important vectors for follow-up drilling to be completed once additional access and infrastructure are established.”

The high-grade resource at Warintza has been the source of excitement for investors, as Solaris’ stock price has continued to rise throughout 2021 and 2022. The company recently spun out its non-core assets to focus on drilling at Warintza in Ecuador, but placed other projects in another entity including projects in Chile, Peru, and Mexico. 

Solaris (TSX:SLS) is up 133% in the trailing twelve-month period ended January 18, 2022. The company continues to gather interest as a prime takeout target for a major mining company as the copper mining industry struggles to keep up with growing demand due to the green energy transition. For Solaris Resources’ Warintza project, that means high potential for a producer to direct its interest toward the company in the future as it continues toward an updated resource in 2022. 

Highlights from Warintza South:

  • SLSS-01 was the first hole ever drilled at Warintza South, which is an entirely separate porphyry deposit, located approximately 3kms south of the Warintza Central zone that has been the focus of the Company’s resource expansion drilling efforts to date
  • SLSS-01 was drilled vertically and returned 606m of 0.41% CuEq¹ of continuous porphyry copper mineralization from near surface, within a broader interval of 755m of 0.36% CuEq¹, marking a significant new discovery on the Project
  • Warintza South is reflected by a high conductivity anomaly over twice the size of Warintza Central, illustrating the very broad proportions of this newly discovered porphyry system, with approximate dimensions of 2.5km x 2.0km x 0.7km
  • SLSS-01 targeted an exposure of leached capping within this anomaly; an ongoing program of detailed sampling, including an additional 265 soil samples and 131 rock samples, significantly expanded the geochemical anomaly and shifted its core to the northeast (Figure 1)
  • Follow-up drilling targeting the interpreted core of the porphyry system is set to commence after additional drill platforms are prepared based on this recent mapping and sampling work refining the target and a dedicated exploration camp is set up to support a ramp-up in activities
  • Warintza South marks the fourth major copper discovery within the 7km x 5km Warintza porphyry cluster, with the adjacent Yawi and Caya targets still to be tested, as well as other recently generated targets within the broader land package to be revealed in a forthcoming update

Mr. Jorge Fierro, Vice President, Exploration, commented: “We are delighted to have made a significant new discovery at Warintza South, with the first ever hole returning a long interval of well mineralized copper porphyry. The multi-km dimensions of the target present a large-scale opportunity. Interpretation of the drill core together with recent mapping and sampling provide important vectors for follow-up drilling to be completed once additional access and infrastructure are established.”

Figure 1 – Plan View

Figure 2 – Long Section of 3D Geophysics Looking Southwest

Figure 3 – Long Section of Warintza South 3D Geophysics Looking Northeast

Figure 4 – SLSS-01 Drill Core

Notes to Figure 4: SLSS-01 core interval from 377.03 to 379.15m, averaging 0.74% Cu, 0.04% Mo and 0.05g/t Au. Quartz-diorite intermineral dike is cutting andestic volcanics. Alteration and mineralization is mainly composed of early-stage, halo-type associations with quartz, anhydrite, chlorite, biotite, epidote, pyrite, chalcopyrite, and magnetite cut by A- and B-type Mo-bearing quartz veinlets.

Table 1 – Warintza South Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLSS-01 Jan 18, 2022 0 755 755 0.28 0.02 0.02 0.36
Including 42 648 606 0.32 0.02 0.02 0.41
Including 188 512 324 0.35 0.02 0.02 0.45
Notes to Table 1: True widths cannot be determined at this time.

 

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLSS-01 801494 9645194 1215 755 0 -89
Notes to Table 2: The coordinates are in WGS84 17S Datum.

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) has reported assay results from its ongoing drill program at its Warintza Project in Ecuador. The company is currently operating discovery drill programs and aiming for mineral resource growth at the project.

Solaris announced this morning that it has extended Warintza Central to South, Southeast, and still open, while announcing that drill results from maiden drilling at Warintza South are now expected in January 2022. 

Mr. Jorge Fierro, Vice President, Exploration, commented in a press release: “These latest results continue to expand the dimensions of Warintza Central to the south and southeast where it remains open. Our next series of holes will target extensions to the north and northeast. In January, we are looking forward to the results of the first-ever drilling at Warintza South, where we are targeting the fourth major discovery within the 7km x 5km cluster of copper porphyries on this property.”

Figure 1 – Long Section of Warintza Central Drilling Looking Southeast

Source: Solaris Resources

Figure 2 – Plan View of Warintza Drilling Released to Date

Source: Solaris Resources

Figure 3 – Long Section of 3D Geophysics Looking Southwest

Source: Solaris Resources

Highlights

  • Five additional holes reported in this press release have expanded the dimensions of Warintza Central to the south and southeast where it remains open, with the highest-grade intervals within each hole starting at or near surface (refer to Figures 1 & 2)
  • SLS-37 was collared in the middle of the Warintza Central grid and drilled vertically into a partially open volume near surface, returning 868m of 0.58% CuEq¹ from 28m depth; further drilling from this platform will target northern and southern extensions of the zone
  • SLS-38 was collared at the northeastern limit of the grid and drilled east into an open volume, returning 244m of 0.70% CuEq¹ from 58m depth, within a broader interval of 822m of 0.35% CuEq¹ that included dilution from a weakly-mineralized mafic intrusive
  • SLS-39 was collared on the eastern side of the grid and drilled into a partially open volume to the southeast, returning 915m of 0.56% CuEq¹, including 368m of 0.73% CuEq¹ from 90m depth, with the last 10m of the hole grading 0.61% CuEq¹ suggesting further potential to the southeast
  • SLS-40 was collared at the southeastern limit of the grid and drilled into a partially open volume to the southeast, returning 1,048m of 0.46% CuEq¹ from surface, including 382m of 0.64% CuEq¹ from 50m depth, extending mineralization to the southeast where it remains open
  • SLS-41 was collared in the middle of the Warintza Central grid and drilled into an open volume to the southeast, returning 592m of 0.52% CuEq¹ from surface, including 496m of 0.58% CuEq¹, extending mineralization to the south where it remains open
  • To date, 55 holes have been completed at Warintza Central with assays reported for 41 of these
  • Maiden drilling results are expected in January from Warintza South, a target defined by a high conductivity anomaly measuring 2.5km x 2.0km x 0.7km and overlapping copper and molybdenum anomalies where exposed at surface

 

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-41 Dec 14, 2021 0 592 592 0.42 0.02 0.06 0.52
Including 8 504 496 0.48 0.02 0.06 0.58
SLS-40 8 1056 1048 0.39 0.01 0.03 0.46
Including 50 432 382 0.56 0.02 0.04 0.64
SLS-39 28 943 915 0.49 0.01 0.04 0.56
Including 90 458 368 0.65 0.02 0.04 0.73
SLS-38 58 880 822 0.28 0.01 0.05 0.35
Including 58 302 244 0.58 0.02 0.06 0.70
SLS-37 28 896 868 0.39 0.05 0.05 0.58
SLS-36 Nov 15, 2021 2 1082 1080 0.33 0.01 0.04 0.41
SLS-35 48 968 920 0.53 0.02 0.04 0.62
SLS-34 Oct 25, 2021 52 712 660 0.36 0.02 0.06 0.47
SLS-33 40 762 722 0.55 0.03 0.05 0.69
SLSE-02 0 1160 1160 0.20 0.01 0.04 0.25
SLS-32 Oct 12, 2021 0 618 618 0.38 0.02 0.05 0.48
SLS-31 8 1008 1000 0.68 0.02 0.07 0.81
SLS-30 2 374 372 0.57 0.06 0.06 0.82
SLSE-01 Sep 27, 2021 0 1213 1213 0.21 0.01 0.03 0.28
SLS-29 Sep 7, 2021 6 1190 1184 0.58 0.02 0.05 0.68
SLS-28 6 638 632 0.51 0.04 0.06 0.68
SLS-27 22 484 462 0.70 0.04 0.08 0.91
SLS-26 July 7, 2021 2 1002 1000 0.51 0.02 0.04 0.60
SLS-25 62 444 382 0.62 0.03 0.08 0.77
SLS-24 10 962 952 0.53 0.02 0.04 0.62
SLS-19 6 420 414 0.21 0.01 0.06 0.31
SLS-23 May 26, 2021 10 558 548 0.31 0.02 0.06 0.42
SLS-22 86 324 238 0.52 0.03 0.06 0.68
SLS-21 2 1031 1029 0.63 0.02 0.04 0.73
SLS-20 April 19, 2021 18 706 688 0.35 0.04 0.05 0.51
SLS-18 78 875 797 0.62 0.05 0.06 0.83
SLS-17 12 506 494 0.39 0.02 0.06 0.50
SLS-16 Mar 22, 2021 20 978 958 0.63 0.03 0.06 0.77
SLS-15 2 1231 1229 0.48 0.01 0.04 0.56
SLS-14 0 922 922 0.79 0.03 0.08 0.94
SLS-13 Feb 22, 2021 6 468 462 0.80 0.04 0.09 1.00
SLS-12 22 758 736 0.59 0.03 0.07 0.74
SLS-11 6 694 688 0.39 0.04 0.05 0.57
SLS-10 2 602 600 0.83 0.02 0.12 1.00
SLS-09 122 220 98 0.60 0.02 0.04 0.71
SLSW-01 Feb 16, 2021 32 830 798 0.25 0.02 0.02 0.31
SLS-08 Jan 14, 2021 134 588 454 0.51 0.03 0.03 0.62
SLS-07 0 1067 1067 0.49 0.02 0.04 0.60
SLS-06 Nov 23, 2020 8 892 884 0.50 0.03 0.04 0.62
SLS-05 18 936 918 0.43 0.01 0.04 0.50
SLS-04 0 1004 1004 0.59 0.03 0.05 0.71
SLS-03 Sep 28, 2020 4 1014 1010 0.59 0.02 0.10 0.71
SLS-02 0 660 660 0.79 0.03 0.10 0.97
SLS-01 Aug 10, 2020 1 568 567 0.80 0.04 0.10 1.00
Notes to table: True widths cannot be determined at this time.

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-41 799765 9648033 1571 792 115 -70
SLS-40 800124 9648044 1568 1056 105 -75
SLS-39 800253 9648105 1576 943 145 -80
SLS-38 800383 9648303 1412 923 90 -56
SLS-37 799968 9648102 1510 929 0 -90
Notes to table: The coordinates are in WGS84 17S Datum.

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

Canadian-based Solaris Resources (TSX:SLS) has announced its plans to focus on advancing its 100%-owned flagship Warintza copper and gold project in southeastern Ecuador, while transferring its non-core assets into a new private company called Solaris Exploration Inc. 

The company will be transferring its noncore assets in Ecuador, Chile, Mexico, and Peru to the new company following an internal reorganization from the company. It is expected that 100% of the common shares of Solaris Resources will be spun out to shareholders relative to their shareholdings. 

In order for the spin-out to be approved, at least two-thirds of Solaris Resources shareholders have to vote and agree on the future plans. The spin-out and reorganization are also subject to other approvals, including approval by the Supreme Court of British Columbia. 

After the proposed spin-out has been approved, Solaris will continue trading on the Toronto Stock Exchange in Canada under the symbol “SLS”, and on the OTCQB Venture Market in the United States under the symbol “SLSSF”. Solaris Exploration will not be listed on any stock exchange post-spin-out approval, and will remain a private company for the time being.

Warintza Stands on Its Own

As the company bundles its non-core assets, Solaris plans to focus on rapidly growing and advancing its Warintza project. The 268-sq.-km property is adjacent to the San Carlos-Panantza copper and gold mine, along with the Mirador copper and gold mine about 40 km south of the property. The Mirador mine is one of the world’s lowest-cost copper operations and largest mines in Ecuador; it started production in 2019 and is expected to produce 94,000 tonnes of copper concentrate per year.

The low cost of operation at Waritnza and the surrounding mines is due to easy-to-access roads and highways, access to freshwater, and access to low-cost hydroelectric energy. 

The property is also adjacent to a highway nearby that allows access to Pacific ports, transmission lines, and an airport. It is connected to grid power which supplies the company with inexpensive hydroelectric power, as well as access to fresh water, and low-cost skilled labour. This is the ideal situation for the exploration company and its flagship asset. Ultimately, the capital cost savings for the project have been lowered immensely due to the opportune placement of the project.

A 2019 mineral resource estimate for Warintza Central estimated 123.8 million inferred tonnes grading 0.56% copper, 0.03% molybdenum, and 0.06 gram gold per tonne (0.7% copper-equivalent) for 1.5 billion lb. contained copper, 77.5 million lb. molybdenum, and 238,600 oz. gold. The estimate was based on about 7,000 metres of historical drilling to an average depth of approximately 200 metres.

Warintza was first discovered by David Lowell over 20 years ago in 2000. After the discovery, the property was left alone for almost two decades as social acceptance of the property began to break down within the local communities. Through extensive communication and understanding of why operating this project would affect the community so immensely, the two parties came to a resolution in 2019. 

Beyond Business, To Community Development

Now, Solaris has a strategic alliance in place with the Shuar communities of Warintza and Yawi to overlook and engage in direct and transparent dialogue regarding all Warintza project-related activities. This alliance also led to the decision to create a CSR program promoting trust, cooperation, and reciprocal support. Solaris now employs over 450 personnel, which represents full employment from the local communities.

In September 2020, the company ​​signed an Impacts & Benefits Agreement with the Shuar communities of Warintza and Yawi for the Warintza project. This agreement provides certainty to Solaris that the communities will continue to support the company through the development and production stages of the project. 

Warintza has 12 drill rigs on the property, mostly focused on Waritnza Central, currently open to the north, east, and south. Results from ongoing exploration are expected in the near-term as well, and 2022 is set to bring further big developments.

Most Exciting Year Yet?

An updated mineral resource estimate is expected to be published within the first quarter of 2022, as well as a preliminary economic assessment set to be released later in the year. Those updates could establish Warintza as a premier copper project, and reset investor expectations for how big the Warintza project – and Solaris Resources – could be. 

With the new move to make it clear that Warintza is a world-class asset on its own, this could mean the start of the next chapter for the project and Solaris Resources.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Ecuador’s constitutional court ruled Wednesday that mining in the country’s protected rainforest violates nature’s constitutional rights. The landmark decision was reached after a lawsuit filed by environmental organizations, which argued that mining activities threatened Ecuador’s constitutional provisions granting rights to ecosystems and protection from degradation or pollution. In their ruling, Ecuadorian justices found that the state mining company Enami and Cornerstone Capital Resources, its Canadian partner violated constitutional protections granted to natural resources in the Los Cedros Protected Area.

Solaris Resources (TSX:SLS) is exploring its Warintza property in southeastern Ecuador, which lies east of Cuenca. The project is not located in any of the biologically sensitive areas mapped out by the government, and does not lie within or near the rainforest. 

This is good news for the junior mining company that has made significant progress in its drill program, making back-to-back discoveries at multiple targets. With several hundred kilometres between the Warintza project and the nearest protected forest, Sangay, Solaris should be able to avoid much of the risk that other mining companies will need to deal with.

Warintza Project Location Map. Source: Solaris Resources

The ruling creates uncertainty for other junior mining companies through this new precedent that could threaten their projects if they lie within or around the protected rainforest or other environmentally sensitive areas.

This could also be harmful to the country’s tax base and economic prosperity as the mining industry has been an important source of economic growth and contributes to Ecuador’s GDP.

With this latest constitutional court decision on protecting nature’s rights, it looks like Ecuador could be witnessing a shift towards greater environmental protections at the expense of foreign investment which could impact future economic development initiatives by President Guillermo Lasso’s administration.

The ruling is a landmark victory for the rights of nature movement, which has been growing in popularity as more countries adopt constitutional amendments and legislation recognizing the legal rights of ecosystems to exist and flourish. Ecuador is one of the first countries to recognize constitutional rights for nature, doing so in 2008 with Article 71-A of its Constitution.

Good for Nature, Harmful to Business

This week’s ruling by Ecuador’s constitutional court follows another groundbreaking verdict that granted the Vilcabamba River constitutional rights and recognized it as an entity with legal interests in the protection against pollution or degradation. The watershed of this Andean river spans across six provinces through Peru and three more provinces in southern Colombia before reaching its mouth at the Amazonian city of Iquitos, where approximately 500,000 people reside. This unprecedented ruling was also decided by seven justices voting unanimously for nature’s right to exist and flourish under Article 71A of Ecuador’s Constitution.

An Infringement of Rights?

However, the most recent ruling from the constitutional court is seen by some as an infringement of mining rights that were granted to two companies authorized to operate on those lands.  According to Ecuador’s Ministry of Mines and Metal Resources, mining is the second most important source of income for the country after oil.

This places the country’s interests directly in contention with the legal ruling made by the constitutional court, which is expected to set a precedent for future constitutional protections on nature. Ultimately, this could open the country up to more litigation in the future as companies with projects in protected lands that have worked to protect those regions while maintaining operations are shut down or have their licenses revoked.

Miners may also consider the risk of doing business in Ecuador to be too high if the constitutional court continues to hand down rulings in this way, evoking images of overreach in some cases. Foreign investment from the mining industry in Ecuador is important because it boosts the country’s economy through royalties, taxes, and job creation.

If nature’s rights begin to impede economic progress, the constitutional court may have to begin to weigh that into its decision-making process. It is likely that eventually, Ecuador’s constitutional court will be forced to make definitive rulings on these issues in order for them not to continue being brought before it with each new instance of violation of pollution taking place within ecosystems protected by constitutional rights.

This ruling sets a public global precedent as well, which could lead other countries around the world where nature also has constitutional protections – such as Colombia and Bolivia – to follow suit if they are seeing similar environmental degradation from mining activities there.

For now, mining companies and investors will be watching very closely for the progress in Ecuador and any future news on this case and others.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

On November 18, 2021 Solaris Resources (TSX:SLS) traded above average volume by hundreds of thousands of shares at nearly 1.7 million in daily volume. Solaris’ share structure has one of the highest insider ownerships for a junior miner, begging the question of why exactly did volume spike on that day?

Could it have been that insiders are shifting positions ahead of upcoming drill results? Or is something else happening with retail investors to draw such high volume?

It would first help to understand what a breakout above regular price action and traded volume can mean for investors. Often higher volume will drive prices higher or lower depending on the bid-ask spread, but in this case, shares traded only 2% higher on the day. 

The stock was not outside of its normal bounds, and closed just below C$14, at $13.90. The uptick in volume is notable for how it didn’t accompany a significantly different price action, but potentially foreshadows new price action coming down the line. 

For this reason, it could be inferred that the expectation of news coming down the pipeline could be the reason for the higher than average daily volume. The company has had a run of successful assay results as part of its ongoing exploration at the Warintza Project in Ecuador. 

An expansion of the Warintza Porphyry Cluster, multiple back-to-back discoveries, the commencement of maiden drilling at Warintza South, and positive preliminary results at Warintza Central have seen shares climb consistently month after month. 

The stock is up over 1000% since the company’s IPO in 2020, and the bullish sentiment indicated by multiple breaks above the 50-day moving average would seem to indicate that buyers are always present. 

Whether the larger than average trade volume is indicative of insiders moving shares ahead of news or higher investor interest due to the company’s performance and the drill program is yet to be seen. For now, investors will be watching closely whether Solaris (TSX:SLS) continues to climb higher.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Figure 1 – Long Section of Warintza Central Drilling Looking Southeast (CNW Group/Solaris Resources Inc.)

Solaris Resources (TSX:SLS) announced this morning its assay results from a set of additional holes from ongoing resource growth and discovery drilling programs at the Warintza Project in southeastern Ecuador. 

Vice President, Exploration Mr. Jorge Fierro, commented: “We are pleased to see the continued growth of the Warintza Central zone, with every hole drilled having hit significant mineralization and the dimensions of the zone open and growing to the east, and broadening to the north and south where additional assays are expected soon. Our drilling fleet has now been fully reoriented to pursue aggressive growth and discovery drilling over the balance of the year and into 2022.”

The highlights from the project are as follows: 

  • Two additional holes reported in this press release have extended the dimensions of Warintza Central zone to the south and east, with the highest-grade intervals in each hole starting at or near surface
  • Southern extension drilling in SLS-36 together with northern step-out drilling previously reported on October 12 in SLS-32, which returned 618m of 0.48% CuEq¹ from surface, including 372m of 0.64% CuEq¹ from 46m depth, have widened the Warintza Central zone
  • SLS-35 was collared at the southeastern limit of the Warintza Central grid and drilled into a partially open volume to the east, returning 920m of 0.62% CuEq¹, including 326m of 0.80% CuEq¹ from 50m depth, extending mineralization to the east where it partially overlaps Warintza East
  • SLS-36 was collared in the middle of the Warintza Central grid and drilled into an open volume to the southeast, returning 1,080m of 0.41% CuEq¹ from surface, including 290m of 0.81% CuEq¹ from 46m depth, extending mineralization by at least 200m to the south where it remains open
  • To date, 50 holes have been completed at Warintza Central with assays reported for 36 of these

Source: Solaris Resources

Future drilling will be focused on extensional and step-out drilling. This includes establishing the potential link to the Warintza East zone, discovery drilling at the other well-defined targets within the 7km x 5km Warintza cluster of copper porphyries, and focusing on the untested gold potential. 

Drilling Continues in Harmonious Alliance

A strategic alliance was made between Solaris and the Shuar communities of Warints and Yawi in 2019 to overlook and engage in direct and transparent dialogue regarding all Warintza Project-related activities. This alliance allows the people of the community to build and promote trust, reciprocal support, cooperation and strengthen the decision-making capacity of the community. It allows them to have a voice in their community when direct change is taking place. 

The company states the mandate will include but not be limited to positive results including employment, business development opportunities, appropriate health care, and emergency care services, development of community infrastructure, and education and skills training. 

The Warintza Project is situated in southeastern Ecuador, in the same belt as the Fruta del Norte and Mirador mines, adjacent to San Carlos – Panantza copper deposits. Solaris Resources also has four other current gold and copper projects, including La Verde in Mexico in which Solaris has earned a 60% interest via JV with Teck Resources. 

There is also the Tamarugo in Chile which is an undrilled, grassroots copper porphyry exploration target in the Chilean copper belt, and the Capricho Paco Orco in Peru which is a Grassroots exploration project. The final project is Ricardo in Chile, it is a brownfield copper porphyry exploration project immediately contiguous and on the same structure as Chuquicamata, one of the largest copper mines in Chile.

Table 1 – Assay Results

Hole ID

Date Reported

From (m)

To (m)

Interval (m)

Cu (%)

Mo (%)

Au (g/t)

CuEq¹ (%)

SLS-36

Nov 15, 2021

2

1082

1080

0.33

0.01

0.04

0.41

Including

46

336

290

0.67

0.03

0.08

0.81

SLS-35

48

968

920

0.53

0.02

0.04

0.62

Including

50

376

326

0.69

0.02

0.05

0.80

SLS-34

Oct 25, 2021

52

712

660

0.36

0.02

0.06

0.47

SLS-33

40

762

722

0.55

0.03

0.05

0.69

SLSE-02

0

1160

1160

0.20

0.01

0.04

0.25

SLS-32

Oct 12, 2021

0

618

618

0.38

0.02

0.05

0.48

SLS-31

8

1008

1000

0.68

0.02

0.07

0.81

SLS-30

2

374

372

0.57

0.06

0.06

0.82

SLSE-01

Sep 27, 2021

0

1213

1213

0.21

0.01

0.03

0.28

SLS-29

Sep 7, 2021

6

1190

1184

0.58

0.02

0.05

0.68

SLS-28

6

638

632

0.51

0.04

0.06

0.68

SLS-27

22

484

462

0.70

0.04

0.08

0.91

SLS-26

July 7, 2021

2

1002

1000

0.51

0.02

0.04

0.60

SLS-25

62

444

382

0.62

0.03

0.08

0.77

SLS-24

10

962

952

0.53

0.02

0.04

0.62

SLS-19

6

420

414

0.21

0.01

0.06

0.31

SLS-23

May 26, 2021

10

558

548

0.31

0.02

0.06

0.42

SLS-22

86

324

238

0.52

0.03

0.06

0.68

SLS-21

2

1031

1029

0.63

0.02

0.04

0.73

SLS-20

April 19, 2021

18

706

688

0.35

0.04

0.05

0.51

SLS-18

78

875

797

0.62

0.05

0.06

0.83

SLS-17

12

506

494

0.39

0.02

0.06

0.50

SLS-16

Mar 22, 2021

20

978

958

0.63

0.03

0.06

0.77

SLS-15

2

1231

1229

0.48

0.01

0.04

0.56

SLS-14

0

922

922

0.79

0.03

0.08

0.94

SLS-13

Feb 22, 2021

6

468

462

0.80

0.04

0.09

1.00

SLS-12

22

758

736

0.59

0.03

0.07

0.74

SLS-11

6

694

688

0.39

0.04

0.05

0.57

SLS-10

2

602

600

0.83

0.02

0.12

1.00

SLS-09

122

220

98

0.60

0.02

0.04

0.71

SLS-08

Jan 14, 2021

134

588

454

0.51

0.03

0.03

0.62

SLS-07

0

1067

1067

0.49

0.02

0.04

0.60

SLS-06

Nov 23, 2020

8

892

884

0.50

0.03

0.04

0.62

SLS-05

18

936

918

0.43

0.01

0.04

0.50

SLS-04

0

1004

1004

0.59

0.03

0.05

0.71

SLS-03

Sep 28, 2020

4

1014

1010

0.59

0.02

0.10

0.71

SLS-02

0

660

660

0.79

0.03

0.10

0.97

SLS-01

Aug 10, 2020

1

568

567

0.80

0.04

0.10

1.00

Notes to table: True widths cannot be determined at this time.

Table 2 – Collar Location

Hole ID

Easting

Northing

Elevation (m)

Depth (m)

Azimuth (degrees)

Dip (degrees)

SLS-36

799765

9648033

1571

1088

97

-60

SLS-35

800124

9648044

1568

995

78

-60

Notes to table: The coordinates are in WGS84 17S Datum.

(1) No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as:  CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu – US$3.00/lb, Mo – US$10.00/lb and Au – US$1,500/oz.

Figure 1 – Long Section of Warintza Central Drilling Looking Southeast

Figure 1 – Long Section of Warintza Central Drilling Looking Southeast (CNW Group/Solaris Resources Inc.)

Figure 2 – Plan View of Warintza Drilling Released to Date

Figure 2 – Plan View of Warintza Drilling Released to Date (CNW Group/Solaris Resources Inc.)

Figure 3 – Long Section of 3D Geophysics Looking Southwest

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) announced the commencement of maiden drilling at Warintza South this morning. In addition, updated results of detailed geophysical interpretation and geochemical sampling were delivered. The company has also refined and expanded the dimensions of the main objectives of the Warintza Project in southeastern Ecuador.

Mr. Daniel Earle, President and CEO of  Solaris, said in a press release: “We are very excited to commence the first-ever drilling program at our voluminous Warintza South target, with the goal of making the fourth major discovery within our Warintza Project as we redirect our 12-rig drilling fleet toward aggressive step-out growth and discovery-oriented drilling over the balance of the year and into 2022.”

Highlights and corresponding Figures 1-3 are provided below. A dynamic 3D model featuring the updated geophysical and geochemical anomalies is available on the Company’s website.

Highlights

  • Commenced maiden drilling at the Warintza South target, with the first hole collared ~3km south of Warintza Central (refer to Figures 1-3)

  • The Warintza South high conductivity anomaly has dimensions more than twice the size of Warintza Central, and a similar geochemical signature where exposed at surface

  • Updated interpretation has expanded the dimensions of the Warintza South high conductivity anomaly to ~2.5km x 2.0km x 0.7km and those of Warintza East and Yawi

  • Additional geochemical sampling has also expanded the Warintza East anomaly further to the east and northeast where it now overlaps with Yawi

  • Sampling continues to extend geochemical coverage over the sparsely sampled areas to the west and south of Warintza Central, and to targets beyond the Warintza porphyry cluster

Geophysical Reinterpretation

The Company retained Condor Consulting, Inc. (“Condor”), recognized experts in the field of airborne electromagnetics (EM), to perform detailed modelling and interpretation of the previously completed advanced airborne ZTEM survey (refer to press release dated February 16, 2021 for survey results) covering the entire 268km² Warintza and surrounding area land package.

Condor carried out a full 3D inversion of the EM and magnetic results using commercial and proprietary software producing enhanced images based on a greatly expanded dataset, including a considerable amount of additional drilling since the prior interpretation, and detailed geology, weathering and density models for the Project.

In general, the refined high conductivity volumes capture mineralization closer to surface and correlate more closely to networked sulfide mineralization in stockwork veining, with the anomalies now starting at surface and better reflecting the vertical zonation of the Warintza porphyries from higher density stockwork veining to lower density veining and disseminated mineralization.

Warintza South

Warintza South is defined by a voluminous high-conductivity anomaly located ~3km to the south of Warintza Central. The anomaly starts at surface and measures ~2.5km x 2.0km x 0.7km deep, with overlapping copper and molybdenum geochemical anomalies covering the exposed portion at surface.

Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) has reported new assay results from ongoing resource growth and discovery drilling at its flagship Warintza Project in Ecuador this morning. Warintza has now been extended, and now overlaps the Warintza East discovery.

Vice President of Exploration for Solaris Resource commented in a press release: “We are very proud to continue the great work of the late David Lowell with our first two holes confirming Warintza East as the third major copper porphyry discovery within the 7km x 5km Warintza porphyry cluster. Our drilling fleet has now been fully reoriented to pursue an aggressive growth strategy via step-out and extensional drilling as we prepare to test our next targets for further discoveries.”

Highlights are listed below, with corresponding images in Figures 1-3 and detailed results in Tables 1-2. A dynamic 3D model is available on the Company’s website and will be updated to incorporate the most recent results.

Highlights

  • Eastern extension drilling has increased the strike length of Warintza Central to 1,350m where it now overlaps the western limits of Warintza East
  • SLS-33 was drilled from Warintza Central into a partially open volume to the north, returning 722m of 0.69% CuEq¹, including 426m of 0.85% CuEq¹ from 46m depth, infilling and extending mineralization to the north in this area
  • SLS-34 was collared at the northeastern limit of Warintza Central and drilled east into an entirely open volume, returning 660m of 0.47% CuEq¹, including 242m of 0.67% CuEq¹ from 52m depth, significantly extending mineralization to the east where it now partially overlaps Warintza East
  • SLSE-02, the second hole at Warintza East, was collared approximately 1,300m east of Warintza Central and drilled northwest toward SLS-34, returning 320m of 0.48% CuEq¹ from surface within a broader interval of 1,160m assaying 0.25% CuEq¹, partially overlapping SLS-34
  • SLSE-01 (previously reported September 27, 2021) was collared from the same platform as
    SLSE-02 but drilled to the southwest, returning 396m of 0.42% CuEq¹ from surface within a broader interval of 1,213m assaying 0.28% CuEq¹
  • Warintza East is the third major copper porphyry discovery within the Warintza cluster; each of the first two holes have returned long intervals of mineralization with the highest grades starting at or near surface reflecting the vertical zonation in the system

Figure 1 – Long Section of Warintza Central and Warintza East Drilling Looking Southeast

Figure 2 – Plan View of Warintza Drilling Released to Date

Figure 3 – Long Section of 3D Geophysics Looking Northeast

Note to Figure 3: Figure looks northeast and depicts high-conductivity geophysical anomaly (defined at 100 ohm-m) generated from 3D inversion of electromagnetic data, encompassing from left to right Warintza West, Central, East and the Yawi target (Warintza South lies off image to south).

Table 1 – Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-34 Oct 25, 2021 52 712 660 0.36 0.02 0.06 0.47
Including 52 294 242 0.51 0.03 0.08 0.67
SLS-33 40 762 722 0.55 0.03 0.05 0.69
Including 46 472 426 0.71 0.03 0.06 0.85
SLSE-02 0 1160 1160 0.20 0.01 0.04 0.25
Including 0 320 320 0.39 0.02 0.04 0.48
SLS-32 Oct 12, 2021 0 618 618 0.38 0.02 0.05 0.48
SLS-31 8 1008 1000 0.68 0.02 0.07 0.81
SLS-30 2 374 372 0.57 0.06 0.06 0.82
SLSE-01 Sep 27, 2021 0 1213 1213 0.21 0.01 0.03 0.28
SLS-29 Sep 7, 2021 6 1190 1184 0.58 0.02 0.05 0.68
SLS-28 6 638 632 0.51 0.04 0.06 0.68
SLS-27 22 484 462 0.70 0.04 0.08 0.91
SLS-26 July 7, 2021 2 1002 1000 0.51 0.02 0.04 0.60
SLS-25 62 444 382 0.62 0.03 0.08 0.77
SLS-24 10 962 952 0.53 0.02 0.04 0.62
SLS-19 6 420 414 0.21 0.01 0.06 0.31
SLS-23 May 26, 2021 10 558 548 0.31 0.02 0.06 0.42
SLS-22 86 324 238 0.52 0.03 0.06 0.68
SLS-21 2 1031 1029 0.63 0.02 0.04 0.73
SLS-20 April 19, 2021 18 706 688 0.35 0.04 0.05 0.51
SLS-18 78 875 797 0.62 0.05 0.06 0.83
SLS-17 12 506 494 0.39 0.02 0.06 0.50
SLS-16 Mar 22, 2021 20 978 958 0.63 0.03 0.06 0.77
SLS-15 2 1231 1229 0.48 0.01 0.04 0.56
SLS-14 0 922 922 0.79 0.03 0.08 0.94
SLS-13 Feb 22, 2021 6 468 462 0.80 0.04 0.09 1.00
SLS-12 22 758 736 0.59 0.03 0.07 0.74
SLS-11 6 694 688 0.39 0.04 0.05 0.57
SLS-10 2 602 600 0.83 0.02 0.12 1.00
SLS-09 122 220 98 0.60 0.02 0.04 0.71
SLS-08 Jan 14, 2021 134 588 454 0.51 0.03 0.03 0.62
SLS-07 0 1067 1067 0.49 0.02 0.04 0.60
SLS-06 Nov 23, 2020 8 892 884 0.50 0.03 0.04 0.62
SLS-05 18 936 918 0.43 0.01 0.04 0.50
SLS-04 0 1004 1004 0.59 0.03 0.05 0.71
SLS-03 Sep 28, 2020 4 1014 1010 0.59 0.02 0.10 0.71
SLS-02 0 660 660 0.79 0.03 0.10 0.97
SLS-01 Aug 10, 2020 1 568 567 0.80 0.04 0.10 1.00
Notes to table: True widths cannot be determined at this time.

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-34 800383 9648303 1412 1057 78 -60
SLS-33 799873 9648008 1632 764 0 -80
SLSE-02 801485 9648192 1170 1191 275 -50
Notes to table: The coordinates are in WGS84 17S Datum.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Kylie Dickson. Source: LinkedIn

In recent years, there has been much talk about the importance of helping women feel welcome, challenged in their skills, and finding opportunities in mining, an area traditionally dominated by men. Employers and an organisation called the Minerals Council of South Africa have conducted a survey on working conditions in the industry. They asked the respondents about their professional experience in the mining industry and whether it lured them into the mining industry or kept them there.

For the most part, respondents noted that the industry is constantly evolving, and never more than in the current moment. Inequality in the industry is at an all-time low and continues to drop as women take prominent positions at operational levels, middle-management, and the C-Suite.

North America Leading the Pack

A September 2019 report by international law firm Osler Hoskin Harcourt LLP & Co LLP found that in South Africa, the capital of African mining companies, a high percentage of female directors are driven by regulatory diversity standards. Whereas Latin America and the Caribbean have the lowest rates of women at the top of the mining sector. Canada and the United States are the countries making the most headway.    

According to the US Bureau of Labor Statistics, women accounted for 15.8% of the labor force in the mining, quarrying, and oil and gas industries in the US in 2019. From the perspective of women with less than five years of work experience, women rank lower, while growth opportunities are higher for women with more than five years of work experience. 

A report by PricewaterhouseCoopers in partnership with Women in Mining UK and Mining Talent shows that mining ranks third among global industries for women in leadership positions. Among the 500 largest mining companies in the world, 8% of directors are women.

A Prominent and Influential Executive

One of the executives breaking all barriers in their career in mining is Kylie Dickson. Kylie Dickson is a Canadian CPA with more than 14 years of experience working with listed commodity companies. She is also a Canadian auditor who has worked throughout the life cycle of the company’s growth and has played a key role in several financing and M & A transactions. Ms. Dickson is a board member of Fortuna Silver Mines Inc. and Star Royalties Ltd. and was appointed to the Board of Directors at Hillcrest Energy.

Other prominent positions have included her time as Chief Financial officer of Solaris Resources, which she resigned from in November of 2019. Before Solaris Resources was spun out of Equinox Gold, Ms. Dickson served as Vice President of Business Development at Equinox Gold.

Solaris Resources has made a deliberate effort to promote women’s empowerment in mining as the diversity of a workforce and management has been proven to lead to more innovation and profitability. Companies have adjusted expectations and seen that they do better with more women in the boardroom, and in particular, directing decisions in the C-suite. 

Ms. Sunny Lowe, Chief Financial Officer of Solaris Resources Inc, states, “Solaris has embraced the Women’s Empowerment Principles established by UN Global Compact Office in an effort to advance gender equality and women’s empowerment in the workplace.  We have made a deliberate effort to work towards developing a work environment that is barrier-free to developing women leaders in our organization and beyond. The Principles allow us to strengthen our commitment towards internationally proclaimed human rights and serve as a framework for us to create real impact on gender equality through commitment and action focused on seeing female representation in all our operations as well as within industry. Earlier this year, together with Women in Mining Ecuador, we launched the Soy Minera (Woman Miner) scholarship program that will finance undergraduate tuition for female engineering and/or undergraduate students in careers related to mining in Ecuador, supporting the mainstreaming of gender equality at our Warintza project, as well as the opportunity of the mining sector to incorporate actions, through investment, toward women empowerment in the industry.”

Kylie Dickson was on maternity leave for seven months after having her third child when the company she founded, Anthem United, Inc., entered into a merger with two other companies. Shortening maternity leave and hiring a nanny have been one of the toughest decisions of her career, she says.

Dickson grew up in Maple Ridge, British Columbia and earned a Bachelor of Business Administration from Simon Fraser University. During her studies, she worked at KPMG before getting a full-time job in 2003 and earning her Certificate of Accountancy. Using her skills and training, she has specialised as a manager in the mining sector. 

A Track Record That Says it All

One of KPMG’s clients was Greg Smith, a mining entrepreneur who founded a company called Minefinders Corp. He hired Dickson as a financial controller and led partnerships in a series of successful mine mergers and acquisitions worth more than $2 billion. Dickson was Chief Financial officer of the subsequently acquired Esperanza Resources Corp. After leaving, Dickson co-founded Anthem United. 

Her track record is an impressive one, and stands out as an example of a multi-faceted executive career in the mining industry. She was the Vice President of Business Development at Equinox Gold Corp. and, before that, VP, Business Development at Trek Mining. Kylie previously worked as Chief Financial Officer for JDL Gold Corp., Anthem United Inc. and Esperanza Resources, and served as the Corporate Controller of Minefinders Corporation.

The Latest Chapter

Most recently, Hillcrest Energy Technologies appointed Kylie Dickson to its Board of Directors.

Hillcrest is a partnership with Oropass Ltd., an Ontario-registered company that holds the U.S. license rights to a patented electrical generation technology. Through concept and commercialization, Hillcrest Energy Technologies Ltd. invests in the development of future-oriented energy solutions.

CEO Don Currie announced the appointment of Kylie Dickson to the company’s board of directors on April 9. Ms Dickson has worked throughout the life cycle of Hillcrest’s growth and has played a key role in several financing and M&A transactions. She will join the company’s Board of Directors, where she will bring experience, knowledge and involvement in areas such as audit and corporate governance committees.

Kylie Dickson also joined the Fortuna Silver Mines Inc. Board in 2017 and sits on the Audit Committee and Corporate Governance and Nominating Committee. Ms. Dickson is an executive with over 14 years of experience in the mining industry. She has worked with companies at various stages of the mining life cycle including exploration, mine development and operations, as well as playing a key role in multiple financings and M&A transactions. Kylie is currently the Vice President, Business Development of Trek Mining Inc. Kylie Dickson was the Chief Financial Officer of JDL Gold Corp. when JDL acquired Luna Gold Corp. to create Trek Mining in March 2017. 

Previously, Kylie was a founding shareholder and Chief Financial Officer of Anthem United Inc. and was the Chief Financial Officer of Esperanza Resources which was acquired by Alamos Gold in 2013. She also served as the Corporate Controller of Minefinders Corporation from 2007 to 2012 prior to its acquisition by Pan American Silver. Kylie also currently serves on the Board of Directors at Hillcrest Energy Kylie began her career with KPMG LLP’s mining practice and is a Canadian CPA, CA with a BBA in Accounting from Simon Fraser University.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Figure 1 – Long Section of Warintza Central Drilling Looking Southeast. Source: Solaris Resources

Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has reported new assay results this morning from its ongoing resource expansion drilling at its flagship Warintza project. The project is located in southeastern Ecuador and has been progression rapidly, with a focus on Waritnza Central. 

Mr. Jorge Fierro, Vice President, Exploration, commented: “Warintza Central continues to expand, with the limits of the zone to the north, south and east yet to be found.  Drilling planned over the coming months is focused on further extensional and step-out drilling, including establishing the potential link to the recently-discovered Warintza East zone, and discovery drilling at the other well-defined targets within the 7km x 5km Warintza cluster of porphyries.”

Highlights

  • Three additional holes at Warintza Central, as detailed below, have extended the drill defined envelope of high-grade mineralization to the north, northeast and south, with the highest-grade mineralization encountered in all holes starting at or near surface (refer to Figures 1 & 2)
  • SLS-30 was collared in the western portion of the Warintza Central grid and drilled into a partially open volume to the north, returning 372m of 0.82% CuEq¹ from surface, including 264m of 0.97% CuEq¹ from 42m depth, extending mineralization in this direction
  • SLS-31 was collared in the middle of Warintza Central and drilled into an entirely open volume to the southeast, returning 1,000m of 0.81% CuEq¹ from near surface, including 768m of 0.90% CuEq¹ from 44m depth, extending mineralization to the south in this area
  • SLS-32, stepped out approximately 165m northeast beyond the northern limit of drilling and drilled vertically into an open volume, returning 618m of 0.48% CuEq¹ from surface, including 372m of 0.64% CuEq¹ from 46m depth, broadening the width of the zone to the north
  • To date, 44 holes have been completed at Warintza Central with assays reported for 32 of these

 

Table 1 – Warintza Central Assay Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLS-32 Oct 12, 2021 0 618 618 0.38 0.02 0.05 0.48
Including 46 418 372 0.53 0.02 0.06 0.64
SLS-31 8 1008 1000 0.68 0.02 0.07 0.81
Including 44 812 768 0.75 0.03 0.08 0.90
SLS-30 2 374 372 0.57 0.06 0.06 0.82
Including 42 306 264 0.72 0.06 0.07 0.97
SLS-29 Sep 7, 2021 6 1190 1184 0.58 0.02 0.05 0.68
SLS-28 6 638 632 0.51 0.04 0.06 0.68
SLS-27 22 484 462 0.70 0.04 0.08 0.91
SLS-26 July 7, 2021 2 1002 1000 0.51 0.02 0.04 0.60
SLS-25 62 444 382 0.62 0.03 0.08 0.77
SLS-24 10 962 952 0.53 0.02 0.04 0.62
SLS-19 6 420 414 0.21 0.01 0.06 0.31
SLS-23 May 26, 2021 10 558 548 0.31 0.02 0.06 0.42
SLS-22 86 324 238 0.52 0.03 0.06 0.68
SLS-21 2 1031 1029 0.63 0.02 0.04 0.73
SLS-20 April 19, 2021 18 706 688 0.35 0.04 0.05 0.51
SLS-18 78 875 797 0.62 0.05 0.06 0.83
SLS-17 12 506 494 0.39 0.02 0.06 0.50
SLS-16 Mar 22, 2021 20 978 958 0.63 0.03 0.06 0.77
SLS-15 2 1231 1229 0.48 0.01 0.04 0.56
SLS-14 0 922 922 0.79 0.03 0.08 0.94
SLS-13 Feb 22, 2021 6 468 462 0.80 0.04 0.09 1.00
SLS-12 22 758 736 0.59 0.03 0.07 0.74
SLS-11 6 694 688 0.39 0.04 0.05 0.57
SLS-10 2 602 600 0.83 0.02 0.12 1.00
SLS-09 122 220 98 0.60 0.02 0.04 0.71
SLS-08 Jan 14, 2021 134 588 454 0.51 0.03 0.03 0.62
SLS-07 0 1067 1067 0.49 0.02 0.04 0.60
SLS-06 Nov 23, 2020 8 892 884 0.50 0.03 0.04 0.62
SLS-05 18 936 918 0.43 0.01 0.04 0.50
SLS-04 0 1004 1004 0.59 0.03 0.05 0.71
SLS-03 Sep 28, 2020 4 1014 1010 0.59 0.02 0.10 0.71
SLS-02 0 660 660 0.79 0.03 0.10 0.97
SLS-01 Aug 10, 2020 1 568 567 0.80 0.04 0.10 1.00
Notes to table: Grades are uncut and true widths cannot be determined at this time.

Table 2 – Collar Locations for New Drill Holes

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLS-32 800383 9648303 1422 831 0 -89
SLS-31 799765 9648033 1571 1025 97 -80
SLS-30 799667 9648029 1499 552 0 -65
Notes to table: The coordinates are in WGS84 17S Datum.

 

(1) No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as:  CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu – US$3.00/lb, Mo – US$10.00/lb and Au – US$1,500/oz.

Source: Solaris Resources

Figure 2 – Plan View of Warintza Drilling Released to Date. Source: Solaris Resources
Figure 3 – Plan View of 7km x 5km Warintza Porphyry Cluster. Source: Solaris Resources

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

New assay results from Solaris Resources’ (TSX:SLS) Waritnza East discovery have return long intervals of copper prphyry mineralization from surface, from the first two holes. The high-grade links identified between Warintza East and Warintza Central is now being targeted, as this area to the north may yield a higher-grade mineralization.

Highlights

  • The first two holes at Warintza East, as detailed below, both returned long intervals of copper porphyry mineralization from surface across a significant portion of the undrilled gap to Warintza Central, suggesting potential continuity between the two zones
  • Visual observation of mineralization in the second hole and step-out drilling completed northeast of Warintza Central suggest an offset in the east-west corridor of higher-grade mineralization to the north that is being targeted in ongoing drilling
  • SLSE-01, collared approximately 1,300m east of Warintza Central and drilled to the southwest, returned 396m of 0.42% CuEq¹ from surface, with the full length of the hole of 1,213m assaying 0.28% CuEq¹
  • SLSE-02, collared from the same platform but drilled to the northwest, returned 320m of 0.48% CuEq¹, including 62m of 0.68% CuEq¹ from surface, from the first 320m of core for which assays have been received, with the last 10m of the interval grading 0.47% CuEq¹
  • Visual observation of core from SLSE-02 suggests that a much broader interval of mineralization may exist than the portion for which assays have been received and reported herein; remaining assays are expected in October, along with the results of step-out drilling from Warintza Central
  • Warintza East is the third major discovery within the 7km x 5km Warintza porphyry cluster and is defined by coincident copper and molybdenum soil anomalies, measuring approximately 1,200m in strike, and a high-conductivity geophysical anomaly that extends from the target through Warintza Central (refer to Figure 1)

Figure 1 – Long Section of 3D Geophysics Looking Northeast

Long Section of 3D Geophysics Looking Northeast (CNW Group/Solaris Resources Inc.) Note to Figure 1: Figure looks northeast and depicts high-conductivity geophysical anomaly (defined at 100 ohm-m) generated from 3D inversion of electromagnetic data, encompassing from left to right Warintza West, Central, East and the Yawi target (Warintza South lies off image to south).

Figure 2 – Plan View Showing Wartinza East Drill Hole Traces

Figure 2 – Plan View showing Warintza East Drill Hole Traces (CNW Group/Solaris Resources Inc.)

 

Table 1 – Warintza East Results

Hole ID Date Reported From (m) To (m) Interval (m) Cu (%) Mo (%) Au (g/t) CuEq¹ (%)
SLSE-02 September 27, 2021 0 320 320 0.39 0.02 0.04 0.48
Including 0 62 62 0.59 0.01 0.06 0.68
SLSE-01 0 1213 1213 0.21 0.01 0.03 0.28
Including 0 396 396 0.33 0.02 0.04 0.42
Notes to table: True widths cannot be determined at this time.

Table 2 – Collar Location

Hole ID Easting Northing Elevation (m) Depth (m) Azimuth (degrees) Dip (degrees)
SLSE-02 801485 9648192 1170 1191 275 -50
SLSE-01 801485 9648192 1170 1213 260 -45
Notes to table: The coordinates are in WGS84 17S Datum.

 

(1) No adjustments were made for recovery as the project is an early-stage exploration project and metallurgical data to allow for estimation of recoveries is not yet available. Solaris defines copper equivalent calculation for reporting purposes only. Copper-equivalence calculated as:  CuEq (%) = Cu (%) + 3.33 × Mo (%) + 0.73 × Au (g/t), utilizing metal prices of Cu – US$3.00/lb, Mo – US$10.00/lb and Au – US$1,500/oz.

Mr. Jorge Fierro, Vice President, Exploration, commented: “With this latest discovery at Warintza East and the growing footprint of Warintza Central to the north and east returning some of the strongest intervals reported to date, the conceptual pit shell is expected to be extended to the north and east showing the potential to ultimately become one multi-kilometre ‘superpit’ joining the two areas. Future drilling will focus on the open, undrilled area between these two zones.”

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Aloag, Ecuador.

Ecuador expects to start production of four major mining projects by the end of President Guillermo Lasso’s first term in office in 2025, as he seeks to diversify the economy beyond oil exports, the Ministry of Natural Resources said on Friday. Lasso has been trying to attract private investment to boost the economy, which was in a deep recession last year, exacerbating Ecuador’s cash-strapped economy.

To do so, the President has issued a new decree, paving the way for investment in the nation and mining projects. This has the potential to open the floodgates for miners looking to expand or begin mining in the mineral-rich country.

Ecuador has rich mineral resources but lags behind its Andean neighbors Peru and Chile in the development of large mines. Many large mining projects in Ecuador face resistance from local communities and are struggling to fill informal miners who have slowed their development. However, the right approach with consultation with local communities has proven to be extremely effective. Successful projects like Solaris Resources’ (TSX:SLS) Warintza Project have been proven to be some of the most promising copper projects in the entire Andean region, and have been models of how mining companies can work hand in hand with local communities to uphold critical ESG principles.

Three gold concessions of Canadian companies Dundee Precious Metals (TSX:DPM) in Loma Largo, Atico Mining Corp (TSXV:ATY)  in Plata, and Adventus Mining Corp (TSXV:ADZN) in Curipamba are in advanced exploration phase and could begin production by 2023, the Department of Energy, Non-Renewable Energy and Natural Resources said in its statement. The Cascabel concession, operated by Australia’s SolGold Plc, is expected to start copper production by 2025, the ministry added.

The largest copper mine in South America, the Mirador Project, operated by a subsidiary of the Chinese consortium CRCC Tongguan, commenced production in mid-2019. Its first major gold mine, the Canadian Lundin Gold Inc.’s (TSX:LUN) Fruta del Norte mine project, started in November this year. Its authorities expect exports of mineral resources to reach $1.6 billion a year, an increase of 7.4% from 2020.

With Ecuador positioning itself as a nation of open arms for the mining industry, it is set to catch up to, and surpass its neighbours in the coming years and decades.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

Solaris Resources has just announced its latest assay results from ongoing resource expansion drilling at its Warintza Project in southeastern Ecuador.

Mr. Jorge Fierro, Vice President, Exploration, commented “Drilling at Warintza Central continues to expand the dimensions of the zone beyond its original footprint. The strike length of Central now measures over 1,250m, with ongoing drilling aiming to extend the zone further to the east, broaden the zone to the north, and test the potential for a southern extension of at least 500m at El Trinche. At the same time, we await additional assays for our recent Warintza East discovery, where we have just added a second rig to accelerate drilling.”

The highlights from the results are as follows: 

  • Three additional holes at Warintza Central have unfilled gaps within the drilling pattern and extended the envelope of high-grade mineralization to the east, with high-grade mineralization encountered in all holes starting at or near the surface. 
  • SLS-27 was collared in the southwestern part of Warintza Central and drilled into a partially-open volume to the northeast, returning 462m of 0.91% CuEq¹ from near surface, including 372m of 1.02% CuEq¹ from 36m depth, infilling and extending mineralization in this area.
  • SLS-28 was collared in the middle of Warintza Central and drilled into a partially-open volume to the northeast, returning 632m of 0.68% CuEq¹ from surface, including 316m of 1.00% CuEq¹ from 42m depth, infilling and extending mineralization in this area. 
  • SLS-29 was collared at the southeastern limit of the Warintza Central grid and drilled into an open volume to the east, returning 1,184m of 0.68% CuEq¹ from surface, including 480m of 0.80% CuEq¹ from 48m depth, extending mineralization to the east in this area. 
  • Maiden drilling has begun at El Trinche, a potential southern extension of Warintza Central, with the first hole collared approximately 500m beyond the southern limit of drilling in an area of rock sampling with values ranging from 0.3-1.1% copper at surface.
  • To date, 40 holes have been completed at Warintza Central with assays reported for 29 of these. The assay backlog has grown due to downtime at the Project’s principal lab in Lima to install additional equipment and increase capacity, with operations having now resumed. 
  • Increased news flow is expected from September through year-end, including remaining assays from SLSE-01, which marked a new discovery at Warintza East (see press release dated July 20, 2021), with the Company adding a second rig to accelerate this important drilling.
Source: Solaris Resources

Solaris Resources Inc. is a part of the Augusta group of companies and is “responsibly and sustainably advancing a portfolio of copper and gold projects in the Americas.” The company currently operates their Warintza project in Ecuador, and expects to be drilling for discoveries at Tamarugo and Ricardo projects in Chile and Capricho and Paco Orco projects in Peru.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Source: Solaris Resources

As President Guillermo Lasso in Ecuador casts a fresh set of eyes over the economic, social, and financial issues that the country is struggling with, the economy and mining industry is starting to look up. 

President Guillermo Lasso was elected as Ecuador’s new president in April 2021, and he is committed to helping turn the country around by addressing public health concerns regarding the Covid-19 pandemic, addressing fiscal and sovereign debts, and expanding Ecuador’s mining industry. 

Lasso issued a decree at the beginning of August called “Decree 151” that outlines a new mining policy and a “clearly articulated plan” to support responsible mining through key investors and investments which in turn help boost the economy. 

A four-month action plan has been established in order to “develop an efficient and environmentally and socially responsible mining industry, to promote national and foreign investment, and to implement best practices for the exploitation of resources done with community engagement and care of the environment.” 

Having the four-month action plan in place creates a defined timeline of specific actions and “guarantees the security of title, respects pre-existing mining rights, and will involve an inter-institutional strategy for the eradication of illegal mining.” 

Lasso recently had a meeting with Daniel Earle, CEO of Solaris Resources in regards to the new decree and what he had in store for the future of Ecuador’s economy and mining industry. 

Daniel Earle with President Guillermo Lasso. Source: Solaris Resources

“This is a very important decree that will undoubtedly promote foreign or national private investment in the mining area of the country. The Government of the Encounter promotes clear policies to attract investment, generate new income for the State, more opportunities, employment and development for neighboring communities and for the whole country,” Lasso said in a recent Twitter video. 

Ecuador’s Vice Minister of Mines, Xavier Ver Grunauer also singled out Solaris and it’s Warintza project as a model for mining in the country:

“There are very successful projects, such as Solaris’ Warintza project, which shows that with good on-site management, communication, and community participation, very interesting things can be achieved….the most important aspect is having a good relationship with the communities and empowering the project communities. I think there is no other sector like mining to promote the development of remote communities. It is very unlikely for the central government to be able to provide all the help or to foster all the projects there might be and that are generated by the private mining sector. Not all mining companies have these policies, nor do all companies have that level of commitment .” – Vice Minister of Mines of Ecuador, Xavier Vera Grunauer

Although he is optimistic about the country, Lasso was elected president at a time where the country was struggling not only financially but from the COVID-19 pandemic. 

“This country, even going into the pandemic, was in a dire financial situation…  they were running large fiscal deficits, they had run up their sovereign debt to unsustainable levels, and they actually had to restructure part of their debt,” Mr. Earle explained. 

“His first priority as I mentioned is addressing the public health crisis created by COVID. Ecuador was very hard hit by COVID.” 

The country has already made huge progress in the battle of COVID-19 under Lasso’s administration, securing vaccines for the public and plans to reopen the economy. 

“When I was there a few weeks ago they had administered 9 million shots within a total population of 17 million people,” Earle said. 

Although there is still a long way to go, Earle says “President Lasso is running at the highest popularity levels for president in Ecuador, a truly historic level of support.” 

Lasso is a conservative and self-made entrepreneur, creating and growing his own entire banking empire before he was elected president. This has given him a major advantage in his analysis and plan for the country’s economy.

“The mining sector is seen as being absolutely critical to the economic fortunes of Ecuador. This is something that the government is absolutely focused on,” Earle explained. 

“It (the decree) defines the mining policy of Ecuador to support a major expansion of the sector through foreign investment. And it lays out a clear action plan and the timeline for making progress towards this objective.” 

With this new decree in place to help boost the mining industry, it will generate more employment and investment for the country, which is necessary to change the image of Ecuador. A successful mining industry will also generate more exports, more taxes, and more income for the country.

However, Lasso wants to ensure that this change is not all about investments and money. 

“It’s not purely just about investment, but alongside that the government is also very clear that this isn’t just going to be about resource development or mining development, project development, this is going to go alongside social development and of course environmental projections, to the highest standards of environmental protection,” said Daniel Earle. 

“As a government, we are clear that mining needs to develop because it is the future of the country. But we also realise that Ecuadorian mining has to incorporate the best environmental and social practices. We don’t want mining at any cost, and we will only allow mining that respects the environment and communities. We understand that there are some places, such as protected areas, where mining can’t take place, and that is fine. Meanwhile, we will improve the regulations to ensure that the mining that does happen is responsible,” Lasso said in a statement in July. 

Social aspects, environmental protection, and of course mining and project development are all key points Lasso wants to drive home to the country. He recently made a statement citing Solaris as a model that other industries should follow. 

“When the government talks about natural resource development, they are very clear to mention that there will be social development alongside it, so community development to go with the project development, and so this would be things like education and training, and infrastructure development, community buildings, health facilities and so on,” said Earle. 

Earle also had the chance to speak with some of the biggest business leaders in the country. 

“They are very optimistic of the potential in Ecuador for the private sector to not only grow but flourish under this Lasso administration… This is the first administration they have had in 50 years that understands the role of the private sector and the benefits it can bring.” 

“You’ve seen Lasso make statements that reflect that kind of view, where he has talked about over the medium term this country turning into a major mineral exporter, such as Peru or Chile.” 

Lasso touched on the importance of the mining sector, comparing it to others such as Chile and Peru. 

“Ecuador has resources comparable to those of Peru and Chile; however, we are behind. We have to start moving forward and we have to promote the mining sector; thus, we will engage in debates with all those who want to demonize the oil and mining activity,” Lasso explained at an AEI Event in Quito. 

According to the LatAM investor report Q3 2021, “2020 to 2030 will be the decade of mining in Ecuador. By 2030, we hope that mining will be attracting billions of dollars of investment, generating billions of dollars in annual exports, and employing hundreds of thousands of Ecuadorians. We have the same geology as Peru and Chile and even the little exploration that has happened so far has found some massive deposits. When these are turned into mines they will be among the biggest in the world, which is why we want to attract the largest, most responsible mining companies.”

Earle described Ecuador as similar to a ‘blank canvas,’ in comparison to the mining industry in Peru or Chile who have had mines for decades. 

“So you’ve got basically the first two mines in the country that have just gone into production in the last couple years, so the bulk of the development is still in front of them.” 

He explained that the “New Minister of Energy and Non-Renewable Natural Resources Juan Carlos Bermeo said by 2030 they hope that the mining sector will be attracting billions of dollars of investment per year and generating billions of dollars of annual exports and employing hundreds of thousands of Ecuadorians.”

The future of the economy and mining sector is something Lasso, Earle, and Solaris Resources, and the people of Ecuador hope to see flourish in the coming years. 

“We all want sustainable development, we all see the long term potential in this jurisdiction… This is something that is truly extraordinary in a global context,” Mr. Earle said. 

He is excited for what the future holds and what Lasso can and is already starting to do. 

“It’s really going to be a happy time in front of them when this all gets going… It’s really heartening and energizing to be a part of this revival which is about to get underway in Ecuador, they haven’t had this opportunity in so long.” 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Solaris Resources (TSX:SLS) experienced a slight dip in its stock last week which had investors scratching their heads. The acute pullback was notable due to the stocks incessant rise over the past year, but there is more at play for Solaris in the big picture. 

Copper Prices and Industry Dynamics

Due to restrictions on mining production during the COVID-19 pandemic, many firms were forced to halt mining production across the globe. However, as restrictions begin to loosen, many believe that the mining industry is on its way to an industry-wide comeback.

Even before the pandemic, copper supply was not able to keep up with the ample demand for the precious metal resource. According to many experts in the industry, many firms worldwide are looking to find new mines as many of the current ones are depleting.

One of the main sources of hope for those looking for new copper mining opportunities is the Western end of South America, long known for its copper mining reserves. In the past year though, we have seen negative trends from Chile wherein the new elected government may enact legislation that restricts the ability of foreign companies to profit from mining extraction.

As such, Ecuador, a previously untapped center of copper resources, has come into the picture as one of the future players in the mining industry. In their recent election, conservative candidate Guillermo Lasso won a massive victory. Lasso has been a long-time supporter of encouraging foreign direct investment into Ecuador’s mining industry and reducing barriers to mining extraction.

In particular, Lasso seems to have shown an affinity for Solaris Resources’ massive Warintza Mining project in Southwest Ecuador. The Warintza mine has 5 different extraction sites spanning a 35 km area. Its results at Warintza Central and Warintza East have already been promising, with highly concentrated copper discovered. Lasso has seen the potential and has even met with Solaris’ CEO Daniel Earie to profess his support for the mining project.

So why the drop?

According to investment experts, price swings are expected during a long mining extraction process. The fruits of the Warintza extraction campaign are likely not going to be clear till the 4th quarter 2021, and until those results are available their stock price is likely to fluctuate. Warintza made their last significant discovery on July 20th, over a month ago, and some investors may be showing some impatience, leading to a drop in confidence in the firm at large.

Earlier today, the drop caused a stir on Yahoo Finance’s conversation board, as investors pondered whether to draw down positions somewhat. An investor on the forum, going by the name “Sunny”, commented his opinion on the future of Solaris, essentially stating that fluctuations were to be expected and that riding the wave of ups and downs through the extraction period would pay dividends to patient investors in the future.

The following was his comment:

Jacqueline Wagenaar, who is the VP Investor Relations of Solaris, purchased at $13.96-$14 from the open market last week. Over the past few months, insiders continued to purchase more and more as the SP rose. Again, the insider holding is already 53%. The CEO (i.e., Daniel Earie) is holding over 8 million shares (3.8 million common shares +1.9 million options + 2.5 million warrants). What does it tell you?

If you really feel the stress these days, try to close your eyes and wait until the end of the year (better wait until the exit transaction) to enjoy the gain. Otherwise, you may want to move on so that you don’t feel the pressure.

For me, my stand is unchanged regardless of the fluctuation. The retraction from the ATH $15.20 to today’s SP was undoubtedly beyond my anticipation but I have been adding in stages (well over my original targeted position) along the way with my DD.

My key opinion is still that we are talking about a copper resource in Warintza of at least 620 million tonnes but more likely to be well over 1 billion tonnes. Even at a long-term copper price of $3.25 (instead of the $4.0580 at this second with the drop), the valuation of just the Warintza project will be $4-5 billion (CAD) for the most conservative valuation. This represents a SP of $37-$46 (CAD). We are not talking about hoping for the growth of the company in revenue/earning in SLS. Even if we give a discount on this, the potential gain will still be mouth-watering. One thing to always keep in mind, we are talking about the physical copper in the discovery in the Warintza project would already make the company worths that much. There will be updates along the way in the remaining months of 2021. Major valuation updates will be in Q4. Exit transaction will likely be in the first half of 2022. All in all, I will just continue to close my eyes or continues to accumulate in stages.

Source: Yahoo Finance Conversations

Overall, the copper mining industry is still likely to grow and grow and the same applies to the promising Warintza project in Ecuador. Small dips in the stock price can be a cause for concern but should ultimately not deter investors from continuing to maintain faith in their current Solaris holdings. In fact, buying Solaris stock now as the price is low may pay off massively when the price inevitably rises again towards the end of the 4th quarter this year and perhaps even beyond that as the Warintza mine’s high-grade copper reserves may continue to bring the company and its shareholders more discoveries for some time. 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

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