Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has announced an In-Pit Mineral Resources Estimate (MRE) for its Warintza Project in southeastern Ecuador. The ongoing mineral resource drilling encompasses over 30,000 meters in the second half of 2024, targeting open extensions and upgrading mineral resources to support the Pre-Feasibility Study (PFS) set for the second half of 2025. Concurrent district exploration programs are also targeting complementary discoveries from an expanded portfolio of epithermal gold/silver and porphyry copper targets.

Mr. Javier Toro, Chief Operating Officer, commented in a press release: “We are very pleased to be able to release this standalone MRE which draws on our combined years of experience with open pit copper projects in the Americas. This new MRE provides a solid foundation for future updates and a robust mine plan with a low strip ratio, simple metallurgy and clean concentrates. In support of the PFS, we are doing further technical, infill and extensional drilling into open areas within and adjacent to the pit shell.”

The In-Pit Mineral Resources at Warintza include 232 million tonnes (Mt) at 0.64% copper equivalent (CuEq) in the measured category and 677 Mt at 0.49% CuEq in the indicated category, resulting in a total of 909 Mt at 0.53% CuEq in measured and indicated categories. An additional 1,426 Mt at 0.37% CuEq is inferred at a base case cut-off grade of 0.25% CuEq. At a higher cut-off grade of 0.50% CuEq, the resources include 157 Mt at 0.76% CuEq in the measured category and 269 Mt at 0.69% CuEq in the indicated category, totaling 427 Mt at 0.71% CuEq in measured and indicated categories, with an additional 177 Mt at 0.62% CuEq in the inferred category.

Warintza is strategically located at a low elevation within the southeast Ecuador mining district. The site benefits from a direct highway connection to Pacific ports and access to low-cost hydroelectric grid power, with potential further development at the adjoining Santiago G8 project. The region has seen significant socioeconomic improvement from mining exploration and development over the past decade.

The 2024 drilling program involves 60,000 meters, with over 30,000 meters planned for the second half of the year. This drilling will be conducted from 140 holes on 80 platforms to provide improved coverage, targeting open lateral extensions, upgrading mineral resources, and converting remaining uncategorized blocks within the pit shell to support the PFS in 2025. Additionally, metallurgical, geotechnical, and hydrogeological drilling is ongoing.

Complementary district exploration efforts are also underway. Fieldwork is targeting epithermal-style gold-silver mineralization south of Caya-Mateo, where recent sampling has returned values between 4 and 12 grams per tonne (g/t) of gold. Field crews are also focused on mapping and sampling combined geophysical and geochemical porphyry copper targets.

Highlights from the results are as follows:

Table 1: Warintza Mineral Resource Estimate Sensitivity

 

 

 

 

 

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 Inc. (TSX: SLS)(NYSEAmerican:SLSR) recently reported drill results from its ongoing 2024 drilling program at the Warintza Project in southeastern Ecuador. The latest findings include the final assays for the upcoming updated mineral resource estimate, anticipated later this month.

• Drill hole SLSE-36, positioned at the southeasternmost platform at Warintza Southeast, revealed 148 meters of 0.72% copper equivalent (CuEq) within a larger interval of 325 meters of 0.51% CuEq from the surface. This hole remains open in strong mineralization, with the final 34 meters averaging 0.90% CuEq.
• SLS-77, located on the northern boundary of the Northeast Extension of Warintza Central, returned 108 meters of 0.70% CuEq from near the surface within a broader interval of 273 meters of 0.57% CuEq from the surface.
• SLS-78, drilled from a new platform 100 meters to the west, showed 78 meters of 0.70% CuEq within a larger interval of 114 meters of 0.65% CuEq from a depth of 72 meters before hitting low-grade granodiorite.
• SLS-79, drilled from the same platform at a steeper inclination, returned 78 meters of 0.60% CuEq from near the surface within a broader interval of 248 meters of 0.50% CuEq, ending in strong mineralization.
• SLST-03, drilled approximately 300 meters south of Warintza Central at the Trinche platform, aimed to convert undefined waste within the expected pit shell. This hole returned 312 meters of 0.62% CuEq within a larger interval of 1,028 meters of 0.30% CuEq from the surface.
• Patrimonio hole 04, consistent with holes 01 and 02, intersected a roughly 150-meter thick tabular zone of replacement mineralization dipping shallowly to the west. The source of this mineralization has not yet been found. SLSP-03, collared at a higher elevation, intersected a low-grade layer in the host lava sequence before passing into a barren, post-mineral porphyry that intruded and displaced the targeted mineralized layer. Mineral alteration zoning and geochemistry suggest that the core of the mineralized system lies to the south.

The 2024 drill program has recently expanded to 60,000 meters, comprising 140 holes from 80 platforms, providing significantly improved drilling coverage. By the end of June, 27,000 meters in 74 holes were completed. Seven rigs are targeting over 8 kilometers of drilling in July, facilitated by improved site logistics from infrastructure development.

Current drilling focuses on Patrimonio exploration, resource extension at Warintza Southeast, and infill and technical drilling to support the Prefeasibility Study (PFS) in the second half of 2025. This includes geotechnical holes that are expected to provide insights into the geology of the Caya-Mateo epithermal gold and silver target area.

Solaris Resources’ continued efforts at the Warintza Project underscore its commitment to expanding and defining the mineral resources within this promising area. The anticipated updated mineral resource estimate will likely provide further clarity on the potential and future development of the Warintza Project.

Other results include:

Table 1 – Assay Results

Notes to table: True widths are interpreted to be very close to drilled widths due to the bulk-porphyry style mineralized zones at Warintza.

Table 2 – Collar Locations

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.

 

 

 

 

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) (NYSEAmerican:SLSR), has reported the discovery of significant precious metal deposits, which have substantially expanded the known area of epithermal-style mineral alteration. Initially concentrated in the Caya area, this mineralization has now been traced through the adjacent Mateo target and several kilometers further south. The expansion was identified through reconnaissance rock-chip sampling in the newly explored southern region. This sampling program yielded impressive results, with assays revealing up to 11,570 grams per tonne of silver (g/t Ag) and 12.3 grams per tonne of gold (g/t Au) across a 30-centimeter section of breccia outcrop.

These findings represent a major breakthrough in Solaris’ exploration activities at the Warintza Project. In response to these promising results, the company has intensified its fieldwork efforts to further delineate and refine potential drilling targets. Solaris anticipates commencing exploration drilling in this newly discovered area either towards the end of the third quarter or early in the fourth quarter of 2024.

Highlights from the results are as follows:

• Ongoing regional exploration east of the Warintza cluster has expanded the area of interest for epithermal mineralization from the Caya-Mateo area several kilometres to the south (Figure 2)

• Epithermal deposits can be genetically related to porphyry systems and host rich concentrations of gold and silver, with this association well documented in southeastern Ecuador

• The newly-sampled southern area is affected by minor fault splays off a major regional fault thought to be of Jurassic age, with kilometer-scale displacement across it

• This fault separates intrusive-dominated geology to the west hosting the Warintza porphyry cluster from primarily volcanic-sedimentary geology to the east hosting epithermal mineralization

• The footwall (western side) of this fault forms the margin of an adjacent north-south pull-apart basin filled with volcanic-sedimentary sequences

• Initial reconnaissance rock-chip sampling in this area has returned values of up to 11,570 g/t Ag and 12.3 g/t Au across 30cm of breccia outcrop with exceptionally high concentrations of epithermal pathfinder elements (Figure 1)

• In addition to the above, sporadic high gold values of between 4 g/t and 9 g/t, with silver values up to 150 g/t, in rock chip sampling have also been returned, with anomalous pathfinder values consistently occurring over an area 1km by 2km

• The working exploration concept is that these samples represent high-level expressions of an intermediate sulphidation epithermal system at depth

• Detailed mapping and sampling of this area has commenced, with vectors from geochemical data and mineral alteration to be used to refine targets

• Separately, recent sampling and spectral mapping in the Caya-Mateo target area have outlined pathfinder element and alteration anomalies at the margins of overlying sandstones (Figure 3)

• Mateo requires follow-up programs to extend coverage southeast over this large target area and establish metal and alteration zonation to define its core

• A series of geotechnical holes previously planned in Caya-Mateo to support Pre-Feasibility technical studies near the epithermal target area, are expected to commence in July and are expected to provide valuable exploration data
• Initial exploration drilling at Caya, Mateo and the new southern area will be planned on the basis of the ongoing exploration work and scheduled for late Q3/24 – early Q4/24

 

 

 

 

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)(NYSEAmerican:SLSR) on April 17, 2024 reached a significant milestone for its flagship Warintza Copper Project in southeastern Ecuador. The company signed an updated Impact and Benefits Agreement (IBA) with the Shuar communities of Warints and Yawi, reflecting the continued growth and advancement of the project and reaffirming the communities’ support for responsible development. Here’s what’s behind the agreement and why it is such a major milestone for the project and the country.

The updated IBA followed the Ecuadorian government’s publication of a manual demanding prior consultation with surrounding communities for existing and new mining projects. This agreement built upon the strategic alliance formed between Solaris and the Shuar communities in August 2019, which has fostered direct and transparent dialogue regarding all project-related activities.

The Warintza deposit, discovered by David Lowell in 2000, sat dormant for two decades due to a breakdown in social acceptance from local communities. In mid-2019, Solaris undertook extensive dialogue to understand and resolve the root causes of conflict, leading to the signing of initial impact and benefits agreements in 2020 and 2022.

Key highlights of the updated IBA include explicit community consent for the Warintza Project, legally binding and ensuring the communities are informed and engaged throughout the project’s lifecycle. The agreement also includes commitments and benefits to the communities, such as impact mitigation measures, local employment and training opportunities, education and skills training programs, investments in community infrastructure, and financial benefits and compensation for the use of ancestral lands.

The IBA is governed by an elected Board of Directors that operates as a regional task force, monitoring project activities, communicating with employees, and ensuring accountability of the commitments made between the State, Community, and Company.

Solaris president and CEO Daniel Earle stated, “The signing of this updated impact and benefits agreement marks a significant milestone in the social advancement of the Warintza project through our pioneering participatory mining model for sustainable resource development.”

The timeline of agreements between Solaris and the Shuar communities includes a Memorandum of Understanding signed in January 2019, the first Impact and Benefits Agreement in September 2020, an updated agreement in March 2020 for project advancement and scope expansion, and the completion of an Environmental Impact Assessment on the project in late 2022.

The updated IBA ultimately demonstrates Solaris Resources’ commitment to responsible and inclusive mining practices, ensuring that local communities are involved and benefit from the Warintza Copper Project’s advancement.

Ms. Sonsoles García, Minister of Production, Foreign Trade, Investment and Fisheries, commented, “We value this initiative of Solaris because it strengthens positive community relations and provides for the integration of the local population in productive and sustainable activities. This allows the inclusion of a traditionally displaced population, which is a priority for us. It is also aligned with the priority we have as a National Government of territorial development and good use and management of resources.”

Mr. Daniel Earle, President & CEO, commented, “The signing of this updated IBA builds on the foundation of good faith dialogue and trust that led to the formation of a Strategic Alliance partnership with our host communities and original IBA in 2020. This marks a significant milestone in the social advancement of the Warintza Project through our pioneering Participatory Mining model for sustainable resource development.”

Mr. Agustin Kayuk, leader of the Shuar Warints Center and member of the Board of Directors of the Strategic Alliance, commented, “The signing of this updated IBA strengthens the working relationship with Solaris and brings greater opportunities for the development of our communities. The decision is supported by a permanent relationship with the Company based on mutual respect and transparent dialogue, as well as a history of positive impacts generated for our people. We look forward to continuing our relationship and playing an integral role in the advancement of the Project.”

Mr. Vicente Froilan Juank, leader of the Shuar Yawi Center and also a member of the Board of Directors of the Strategic Alliance, commented, “The updated IBA brings further support and new opportunities for our people. When Warintza advances, our communities advance with it. Since the signing of the inaugural IBA in 2020, and with the help of the Ecuadorian state, the local impacts in job creation, community infrastructure, and development of programs in health, education, skills training, entrepreneurship, and innovation have been evident in our daily lives.”

 

 

 

 

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) (NYSEAmerican:SLSR) has announced the termination of a previously proposed minority equity investment aimed at expanding the company’s Warintza Project in Ecuador.

The proposed investment, which would have supported both the growth of existing operations and the potential acquisition of a neighboring property, was initially announced four months ago. However, despite the anticipation of timely approval due to the minority nature of the investment and its focus on critical minerals, the transaction has not yet received the necessary regulatory clearance from Canadian authorities.

Solaris’ share price has also risen by over 35% since the initial announcement, making the terms of the investment, which included a 14% premium at the time, no longer financially advantageous for the company. This price increase, while positive in isolation, has been outpaced by similar companies in the sector due to the ongoing uncertainty surrounding the regulatory process in Canada.

The company has expressed disappointment in the delay, citing the evolved regulatory environment and heightened political sensitivity surrounding Canadian investments in foreign assets. The combination of these factors, coupled with the increasingly unattractive terms of the deal, has led Solaris to conclude that terminating the investment is the most prudent course of action to protect shareholder interests.

Despite this setback, Solaris remains financially secure, with sufficient funds to support its planned activities at the Warintza Project through 2025. This includes the ongoing exploration of a recently acquired 40,000-hectare area adjacent to the existing project site, which has already shown promising geological and geophysical similarities to the mineral-rich Warintza cluster.

Furthermore, the company has access to an additional US$40 million in funding through an existing offtake financing agreement. With these resources, Solaris intends to focus on maximizing shareholder value through a targeted strategy that prioritizes long-term growth and flexibility.

Solaris has also reiterated its commitment to the Warintza Project timeline, with an Environmental Impact Assessment expected to be delivered in the second half of 2024 and a Pre-Feasibility Study in the second half of 2025. These milestones are crucial steps in the development of the project, and Solaris remains optimistic about the potential of Warintza to become a significant source of critical minerals.

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 Inc. (TSX:SLS)(NYSEAMERICAN:SLSR) has shared an operations update for its Warintza copper project in southeastern Ecuador. The update highlights improved productivity and cost savings under new Chief Operating Officer Javier Toro, as well as the appointment of top consultants to support the Environmental Impact Assessment (EIA) and Pre-Feasibility Study (PFS).

Mr. Javier Toro, COO, commented in a press release: “We are excited with the improvements we have made at site where our team is approaching record monthly drilling rates with significantly fewer rigs than at prior peaks. We are also pleased to be making progress in advancing studies and work programs to support the completion of the EIA in H2/24 and PFS in 2025. Warintza is a very unique project given its global scale and location in a mining district adjacent to infrastructure at low elevation.”

Drilling Ramps Up, Targeting 30km in 2024

Drilling at Warintza continues to accelerate, with six rigs completing over 5,400 meters in April, close to setting a new monthly record for the project. Solaris has budgeted a minimum of 30 kilometers of resource growth and infill drilling for 2024. Some of these holes will also provide technical data for mine design and planning to support upcoming technical studies.

The updated mineral resource estimate remains on track for completion at the end of June and release in early July. It will be completed by leading porphyry specialist Mr. Mario E. Rossi of Geosystems International Inc., who also conducted the previous estimate.

EIA Targeted for H2 2024, PFS for H2 2025

Solaris has engaged ESSAM Cía. Ltda., an Ecuadorian environmental consulting firm accredited by Ecuador’s Ministry of Environment, to finalize and submit the EIA for the Warintza exploitation phase. ESSAM has experience supporting Ecuador’s largest copper and gold mines. The EIA submission is targeted for the second half of 2024, building on over three years of baseline environmental monitoring, data collection and studies.

To support the PFS planned for the second half of 2025, Solaris has appointed leading international consulting firms:

– Ausenco Engineering for metallurgical studies, process plant design, and infrastructure assessments
– Knight Piésold Consulting for detailed technical studies and engineering designs for the pit, waste rock facility, and tailings management facility
– AMC Consultants and Minsys Mining Systems for mine scheduling and trade-off studies to optimize mine plans

Improved Site Productivity and Cost Savings

Infrastructure development, logistics optimization, and improved practices at the Warintza site have significantly increased productivity and efficiency. This has enabled a 26% reduction in drilling costs to US$229 per meter and generated substantial savings compared to the Q1 2024 budget.

Current Funding and Future Plans

As of March 31, Solaris held an unaudited cash balance of approximately US$29 million. An additional US$40 million is expected from the previously announced offtake financing package. These funds are expected to support the planned 2024 and 2025 work programs. Upon closing the strategic investment announced in January, Solaris plans to expand activities and continue the consolidation of the land package surrounding Warintza.

 

 

 

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)(NYSE:SLSR) has recently been awarded an option by Empresa Nacional Minera (ENAMI EP), Ecuador’s state-owned mining company, to acquire up to a 100% interest in 10 new exploration concessions. These concessions, covering approximately 40,000 hectares, are strategically located adjacent to the company’s existing Warintza Project and the San Carlos-Panantza porphyry copper-molybdenum deposits within the mineral-rich Zamora belt. This region is known for hosting some of Ecuador’s largest copper and gold mines to the south.

The newly acquired concessions are believed to hold significant potential for porphyry copper and epithermal gold deposits. This assessment is based on a comprehensive analysis of multiple layers of data, including Solaris’ extensive heliborne magnetic survey. The survey results, a portion of which is shown in Figure 2, reveal several promising indicators of mineral deposits.

Porphyry copper targets within the new concessions are characterized by open-ended annular magnetic highs surrounding magnetic lows and erosional depressions. These features are consistent with the outcropping deposits found within the Warintza porphyry cluster, suggesting a high likelihood of mineral presence.

Structural interpretation of the area supports the potential for epithermal gold deposits within dilational jogs and pull-apart basins. These geological settings are common for gold deposits in the Zamora belt and bear similarities to the Caya epithermal target, which was previously announced by Solaris in a press release dated April 23, 2024.

To expedite the exploration process, Solaris plans to deploy two field crews on the ground in May. These teams will begin conducting fieldwork to gather more detailed data and assess the mineral potential of the newly acquired concessions.

The terms of the agreement with ENAMI EP include an upfront payment of US$0.25 million, a proposed exploration program of up to US$25 million over the exploration phase, and the exclusive option for Solaris to acquire the claims from ENAMI EP at a price to be determined by independent experts. This agreement follows similar awards by ENAMI EP to subsidiaries of Barrick Gold Corporation and Hancock Prospecting Pty Ltd, which have committed to investing up to US$148 million in exploration programs in Ecuador.

Solaris’ acquisition of these new exploration concessions demonstrates the company’s commitment to expanding its presence in Ecuador’s thriving mining sector. With the promising potential for porphyry copper and epithermal gold deposits, Solaris is well-positioned to capitalize on the region’s mineral wealth and contribute to the country’s economic growth.

As fieldwork commences and more data becomes available, the mining industry and investors alike will be closely monitoring Solaris’ progress in unlocking the value of these new exploration concessions.

 

 

 

 

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) (NYSEAMERICAN:SLSR) has shared the initial results from its 2024 drilling efforts and provided an update on exploration at its Warintza Project in southeastern Ecuador. These early results include intersections of 150 meters of 0.67% copper equivalent (CuEq) within a broader section of 384 meters of 0.51% CuEq, and another segment measuring 284 meters of 0.53% CuEq starting near the surface.

The drilling operations, which intensified during the first quarter despite the rainy season, are part of a large-scale plan to both expand and upgrade the mineral resources at the project. With six rigs currently operating across multiple zones including Warintza Central, East, and Southeast, the company expects the drilling to continue throughout the year. This effort is also accompanied by exploratory drilling at the newly discovered Patrimonio site and regional exploration at the promising Caya epithermal gold target.

In terms of the 2024 drilling campaign specifics, January saw 700 meters drilled, which increased to 1,800 meters in February and 3,800 meters in March. The company anticipates reaching 5,200 meters by the end of April. Overall, Solaris plans to complete at least 30 kilometers of drilling this year, with an updated report on mineral resources expected by the end of June.

Solaris has secured the necessary funds for its 2024 and 2025 exploration programs through an offtake financing package announced in December last year. As of the end of 2023, the company reported having around US$39 million in cash and equivalents. It expects an additional US$40 million from its financing activities, further bolstered by a strategic investment finalized in January 2024. However, the details of this investment are still under review by Canadian regulators.

In addition to its drilling program, Solaris is also focusing on the Caya epithermal gold target. Recent field work at this site has highlighted a 5 km by 3 km gold anomaly located northeast of Warintza East. Soil samples have outlined a significant area of gold and other pathfinder elements indicative of epithermal mineral deposits. The alteration patterns and mineral assemblages found at Caya suggest a high-sulfidation epithermal system, a style of mineralization known for hosting significant gold deposits.

The exploration team has recently expanded its soil sampling grid to include areas affected by historical artisanal mining, which could offer insights into the broader mineral potential of the region. The company plans to use additional spectral analysis to better understand the alteration patterns in the volcanic sediment layers covering the target area. Further details on these findings are expected to be reported in June.

Highlights from the results are as follows:

• SLS-76 was collared on the northeastern limit of the Northeast Extension zone and drilled northwest, returning 150m of 0.67% CuEq¹ within a broader interval of 384m of 0.51% CuEq¹, before the hole was terminated in lower grade mineralization

• SLSE-31 was collared on the southern margin of Warintza Southeast and drilled east to the ~300m depth capacity of the KD-200 rig, returning 284m of 0.53% CuEq¹ from near surface, with the final 10m averaging 0.75% CuEq¹ and remaining open for extension drilling with a larger rig

• SLS-75, drilled northeast from a new 200m step-out platform at Northeast Extension zone, returned 26m of 0.52% CuEq¹ and 46m of 0.66% CuEq¹ within a low-grade section from surface with a post-mineral dyke before a final 62m mineralized interval averaging 0.51% CuEq¹

• SLSE-32 was collared on the northern margin of Warintza East and drilled north, returning 380m of 0.31% CuEq¹ from surface within a broader interval of 634m of 0.27% CuEq¹ where the hole cut the contact of the primary host lithology with bordering lower grade volcanic rock

• Exploration drilling is underway at Patrimonio to follow up on the discovery holes (144m of 0.50% CuEq¹ and 148m of 0.52% CuEq¹, respectively – refer to press release dated September 12, 2023) while field crews expand sampling coverage over the highest grade part of the anomaly to the south and down-dip of the replacement mineralization to locate the potential porphyry source

• Regional exploration programs are underway at the promising Caya epithermal gold target, located 6km to the northeast of Warintza East, where field crews are expanding sampling and alteration mapping to the west to cover an area where evidence of historical artisanal mining has been identified

• Funded for 2024 and 2025 programs with the offtake financing package announced in December, with plans to aggressively expand activities and consolidate the surrounding district with funds from closing the strategic investment announced in January

 

 

 

 

Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) and the Shuar communities of Warints and Yawi have recently signed an updated Impact and Benefits Agreement (IBA) for the Warintza Project. This agreement signifies a step forward in the project’s evolution, reflecting its continued growth and advancement.

The IBA is a key part of Solaris’ Community Social Relations (CSR) program, recognized as a leading practice within the Ecuadorian mining industry. It guarantees the Shuar communities’ backing for Warintza throughout all stages, from exploration and development to production. Importantly, the agreement also formalizes commitments to several key areas.

First, that Solaris Resources will uphold the social and cultural practices of the Shuar communities. Second, the company will take steps to minimize or eliminate any negative impacts the project may have. This could include environmental or social disruptions. To maximize community participation in the project, Solaris will provide opportunities for employment, education, and skills training. The agreement also includes financial benefits for the Shuar communities.

The Warintza Project is expected to deliver significant advantages to local communities. These include job creation and business development opportunities. The project will also improve access to appropriate healthcare, including emergency services. Additionally, the agreement includes measures to develop community infrastructure and provide educational and skills training programs.

The updated IBA also fosters greater involvement from the Shuar communities in the project’s development. This collaboration establishes a framework to address shared concerns regarding the project’s impact on their lives and the well-being of their communities.

Beyond local benefits, the Warintza Project is anticipated to generate tax revenue for the Ecuadorian government. Solaris has reiterated its commitment to operating sustainably and responsibly by minimizing environmental impact and maintaining open communication with local communities.

Ms. Sonsoles García, Minister of Production, Foreign Trade, Investment and Fisheries, commented, “We value this initiative of Solaris because it strengthens positive community relations and provides for the integration of the local population in productive and sustainable activities. This allows the inclusion of a traditionally displaced population, which is a priority for us. It is also aligned with the priority we have as a National Government of territorial development and good use and management of resources.”

Mr. Daniel Earle, President & CEO, commented, “The signing of this updated IBA builds on the foundation of good faith dialogue and trust that led to the formation of a Strategic Alliance partnership with our host communities and original IBA in 2020. This marks a significant milestone in the social advancement of the Warintza Project through our pioneering Participatory Mining model for sustainable resource development.”

Mr. Agustin Kayuk, leader of the Shuar Warints Center and member of the Board of Directors of the Strategic Alliance, commented, “The signing of this updated IBA strengthens the working relationship with Solaris and brings greater opportunities for the development of our communities. The decision is supported by a permanent relationship with the Company based on mutual respect and transparent dialogue, as well as a history of positive impacts generated for our people. We look forward to continuing our relationship and playing an integral role in the advancement of the Project.”

Mr. Vicente Froilan Juank, leader of the Shuar Yawi Center and also a member of the Board of Directors of the Strategic Alliance, commented, “The updated IBA brings further support and new opportunities for our people. When Warintza advances, our communities advance with it. Since the signing of the inaugural IBA in 2020, and with the help of the Ecuadorian state, the local impacts in job creation, community infrastructure, and development of programs in health, education, skills training, entrepreneurship, and innovation have been evident in our daily lives.”

 

 

 

 

 

 

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 copper mining industry plays a crucial role in the global economy, with South America being a significant contributor to the world’s copper supply. As the demand for copper continues to grow, driven by the increasing need for renewable energy and electric vehicles, exploration projects in this region have gained momentum along with some of the biggest investment interest in the past few years . In 2024, there are a few important companies actively engaged in copper exploration across various countries in South America, with promising results and future prospects.

Freeport McMoRan in Peru

Freeport McMoRan, a leading copper producer, operates the Cerro Verde copper mine in Peru. However, the company is projected to face challenges in 2024, with sales volumes expected to decrease to 1.13Blb (512,559t) of copper, compared to 1.20Blb sold in 2023. This decline is attributed to lower grades at Cerro Verde and mill recoveries falling below those in the same period of 2022. Despite these challenges, Freeport McMoRan remains committed to its operations in Peru and continues to explore opportunities for growth and optimization.

Lundin Mining Corporation: Consistent Performance and Expansion

Lundin Mining Corporation has demonstrated consistent performance in its copper exploration and production activities across South America. In the second quarter of 2023, the company produced 10,697 tonnes of copper and approximately 13,000 ounces of gold in concentrate. The Chapada mine in Brazil, one of Lundin’s key assets, achieved higher recoveries, resulting in increased copper production compared to the prior year quarter.

Looking at Lundin’s historical performance, the company produced 249,659 tonnes of copper on a consolidated basis in 2022, which was within the guidance range of 250,000 to 274,000 tonnes. In 2023, Lundin Mining achieved a record consolidated copper production of 314,798 tonnes, surpassing the guidance range of 300,000 to 320,000 tonnes.

For the three-year period from 2024 through 2026, Lundin Mining has provided production guidance for copper, with a range of 366,000 to 400,000 tonnes. This guidance is largely in line with the company’s 2023 production guidance, indicating a likely stable outlook for Lundin’s copper exploration and production.

Solaris Resources: Strategic Investments and Resource Expansion

Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has proven itself as one of the most important exploration companies in South America over the past few years, with significant developments at its Warintza Project in Ecuador. The company is preparing for a major mineral resource estimate update, expected in late Q2 2024, which will leverage extensive drilling data to potentially enhance resource size and grade at Warintza Central, East, and Southeast.

In a strategic move, Solaris also announced plans to list its common shares on the NYSE American stock exchange, securing funding for exploration and development programs in 2024 and 2025. Additionally, the company received a significant investment from Zijin Mining, a major Chinese company, which provided crucial capital for ongoing activities at the Warintza Project and highlighted the project’s potential.

Zijin Mining’s investment, announced on January 11, 2024, involves the purchase of approximately 28,481,289 common shares of Solaris Resources at a subscription price of $4.55 per share, representing a 14% premium to the closing price of the common shares on the Toronto Stock Exchange (TSX) on January 10, 2024. Upon closing of the investment, Zijin Mining will own approximately 15% of the common shares on a fully diluted basis.

The investment from Zijin Mining is expected to be used by Solaris Resources to advance and develop the Warintza copper project primarily. This strategic partnership provides financial security for Solaris Resources and the expertise and growth potential of Zijin Mining, one of the most successful major mining companies in the world.

Solaris Resources continues active drilling with six rigs, focusing on resource expansion, infill drilling, and exploration beyond the current resource zones\[2\].

Copper exploration in South America remains strng in 2024, with companies like Freeport McMoRan, Lundin Mining Corporation, and Solaris Resources actively engaged in resource expansion, strategic partnerships, and sustainable operations. As the demand for copper continues to grow, driven by the global shift towards renewable energy and electric vehicles, these projects will be watched ever more closely for major announcements.

 

 

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 in southeastern Ecuador, operated by Canadian copper mining company Solaris Resources (TSX:SLS) (OTCQB:SLSSF), has become a model for sustainable mineral exploration and development. Solaris adheres to a “Participatory Mining” model that engages government, communities, and the company in an alliance governing the strategic socio-economic development alongside the project. This inclusive approach is based on transparency, dialogue, and building trust between stakeholders with the goal of improving quality of life in a sustainable manner.

For example, the company has explicit community consent for the Warintza Project through legally-binding community agreements with the Warints and Yawi Shuar communities that host the Project on their Ancestral Lands. These Ancestral Lands are legally-defined and have been registered with the Government of Ecuador since 2002. The timeline of agreements includes:

• January 2019: Memorandum of Understanding signed with the Warints and Yawi communities
• September 2020: Impact and Benefits Agreement, the first signed in the country with Shuar communities
• March 2020: Impact and Benefits Agreement for Project advancement and scope expansion
• Late 2022: Completed an Environmental Impact Assessment on the Project

This formal consent demonstrates the strong relationship and trust built between Solaris and the local communities through open dialogue and mutually beneficial partnerships. The participatory model ensures the indigenous populations are informed, engaged, and ultimately benefit from the development of their ancestral territory.

Solaris’ commitment to sustainability is also embedded in its policies and participation in the UN Global Compact. They strive to minimize environmental impacts by going beyond required guidelines, using robust monitoring, and integrating protection into daily practices. Compliance with regulations, biodiversity management, community involvement, efficient resource use, responsible waste management, and education on best practices foster environmental stewardship. Proactive efforts like their greenhouse gas reduction plan and partnerships demonstrate Solaris’ dedication.

Central to the sustainability strategy is the Citizen Participation Process where local populations are informed of potential impacts and can provide input that gets incorporated into environmental studies. This participatory mechanism for consultation and dialogue ensures community engagement and consent, legitimizing the project. Solaris maintains high corporate governance standards so decisions align with their core values of sustainable development.

The 2024 drilling program at Warintza recently commenced, with plans to have six rigs operating by February. An updated mineral resource estimate is expected by late Q2/24, likely showing major growth. Drilling will continue beyond this as permitted, with some holes serving other purposes like metallurgical testing. Exploration is also underway regionally to define additional drill targets.

Solaris also recently closed US$40 million in financing, including equity and initial drawdown of their debt facility, to fund 2024-2025 baseline programs. The major C$130 million strategic investment by Zijin Mining Group will allow aggressive expansion of programs this year to significantly advance the project. The partnership with successful global miner Zijin will provide technical expertise and capacity to realize Warintza’s potential as a premier copper district.

Solaris’ ethical, sustainable model aligned with their financing strategy demonstrates a promising approach for the future of mineral development. The Warintza Project aims to create value responsibly and improve local communities, setting a positive example for the industry.

 

 

 

Solaris Resources (TSX:SLS) is preparing for a significant update to its mineral resource estimate for its flagship Warintza Project in southeastern Ecuador. The announcement, made in early January, comes in the middle of an ongoing drilling program and broader developments aimed at advancing the project towards potential development. What’s next for the project, and what are investors waiting for in 2024?

Mineral Resource Estimate Update in Sight

Investors and stakeholders are now waiting for the updated mineral resource estimate, expected in late Q2 2024. This revision will leverage nearly double the drilling data compared to the previous estimate, potentially leading to substantial growth in resource size and grade. The focus areas include Warintza Central, East, and Southeast, where drilling has targeted resource expansion and infill drilling.

A key aspect of the update is the incorporation of a “common pit shell,” which considers the economic viability of extracting all resources within a defined open pit. This approach provides a more realistic picture of the potentially mineable portion of the deposit and is will be critical for future development planning.

Active Drilling Campaign

Solaris is currently executing an ambitious drilling program for 2024, utilizing six drill rigs. This program serves a dual purpose:

• Resource expansion and infill drilling: This component directly supports the upcoming mineral resource estimate update by gathering additional data to refine geological understanding and resource definition.
• Exploration beyond the current resource: Drilling extends outwards from known zones, targeting areas with promising indications of copper mineralization. This proactive approach aims to identify new zones that could contribute to further resource growth in the future.

Beyond Warintza Central, exploration efforts are ongoing in other prospective areas within the project’s broader footprint. These regional activities add another layer to the ongoing exploration story at Warintza.

NYSE American Listing and Financial Backing Signal Confidence

In another significant development, Solaris announced plans to list its common shares on the NYSE American stock exchange. This move is expected to broaden the company’s investor base, particularly attracting interest from the U.S. market.

Financially, Solaris secured funding for its 2024 and 2025 exploration and development programs, ensuring continued momentum at Warintza. This financial backing highlights the company’s commitment to advancing the project and realizing its full potential.

The company’s progress at the Warintza Project received a significant boost in January 2024 with a strategic investment of $130 million from Zijin Mining Group Co., Ltd., a major Chinese mining company. This financing agreement provides crucial capital for ongoing exploration and development activities and represents a strong vote of confidence in the project’s potential.

Under the terms of the deal, Zijin acquired approximately 28.5 million common shares of Solaris at a subscription price of $4.55 per share, representing a 14% premium to the market price at the time. This translates to an ownership stake of roughly 15% for Zijin, granting them a seat on the Solaris board of directors.

The importance of this financing is threefold:

• Financial Security: The $130 million injection directly supports the company’s ambitious plans for 2024 and 2025, including the ongoing drilling program, resource estimation update, and potential future studies. This financial security allows Solaris to focus on advancing the project without immediate funding concerns.
• Strategic Partnership: Zijin’s expertise in developing large-scale copper projects offers valuable insights and potential collaboration opportunities for Solaris. This partnership could prove crucial in navigating the complexities of future development stages.
• Market Validation: The significant investment from a major player like Zijin serves as a strong validation of Warintza’s potential. This positive endorsement could attract further interest from investors and stakeholders, broadening the project’s support base.

Overall, the Zijin financing deal represents a critical milestone for Solaris and the Warintza Project and secures the necessary resources for continued progress.

The Warintza Project also holds the potential to bring significant benefits to Ecuador. Responsible development post-exploration could create many more jobs, stimulate the local economy, and generate tax revenue for the government. Solaris has continued to emphasize its commitment to operating in a sustainable and responsible manner, minimizing environmental impact and engaging with local communities.

Looking Ahead: Milestones and Continued Progress Expectations

The release of the updated mineral resource estimate in late Q2 2024 stands as a major milestone for the Warintza Project. This event will provide valuable insights into the project’s size, grade, and economic potential. Depending on the results, further studies such as preliminary economic assessments or feasibility studies could follow, outlining a potential path towards development.

Solaris remains focused on advancing the Warintza Project through ongoing exploration, resource definition, and potential future development activities. With a significant update on the horizon, active drilling underway, and a secured financial position, the world is watching for the next news update.

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 launched an extensive 2024 drilling and exploration program at its Warintza copper-gold project in southeastern Ecuador, aiming to substantially increase the current mineral resource estimate, make additional new discoveries, and advance infrastructure and engineering studies to further derisk what it hopes will become Ecuador’s next major mining operation.

With six drill rigs slated to be spinning by month’s end, Solaris is wasting no time following up on the successes of last year’s drilling efforts which outlined wide zones of high-grade mineralization over a 5km strike. The priority targets are the open-ended higher grade core at Warintza Central, extending the strike length and depth at the Warintza East discovery, and delineating an initial resource at the Warintza Southeast discovery made last fall.

An updated mineral resource estimate incorporating almost twice the results of the previous estimate is expected by late Q2. The additional data, especially from East and Southeast, could substantially increase the overall resource scale and grade. Warintza’s position among the ranks of major global copper projects may soon be cemented if this is the case.

But Solaris isn’t resting on this plan, with plans to keep drilling through the updated resource estimate and an aim of completing at least 30,000 additional meters focusing on further growth opportunities by yearend 2024. This includes tightening the drill pattern in some areas with room for optimization, as well as collecting data for preliminary metallurgical, geotechnical and hydrological studies to support future scoping and feasibility studies.

Systematic Regional Exploration Underway to Make Next Big Discovery

On a parallel track beyond the main Warintza deposits, field crews have mobilized to several earlier-stage regional targets with hopes of making Solaris’ next big porphyry discovery elsewhere on its large concession package outside of Warintza Central. Initial soil sampling and mapping programs over the past two years have revealed a number of intriguing copper-molybdenum anomalies that could indicate the presence of additional blind porphyries underlying the sandstone cover prevalent in the basin.

The immediate focus is on the Mateo prospect, where recent sampling outlined a sizable 3km x 1.4km copper-in-soils anomaly coincident with sandstone outcrops. Further infill soil sampling and possibly some initial geophysical surveys are planned over the coming months to refine the targets for an eventual maiden drill campaign later this year or early 2025. Several other early-stage regional targets are also on the agenda for Solaris’ exploration team.

Well-Funded for Full Campaign

With a recent $130 million strategic investment from China’s Zijin Mining Group now in hand, Solaris is well-funded to potentially ramp up and accelerate its plans over the next two years. In fact, beyond the six rigs currently operating, the company has targets to get as many as ten rigs spinning by the end of 2024 to systematically test the full breadth of what it has now in its crosshairs – a district-scale opportunity centered around Warintza but extending across its vast concession holdings in Ecuador.

Zijin identified world-class potential after taking a 15% stake in Solaris Resources, and, in addition to providing critical capital, Zijin also brings substantial technical expertise and experience to the table as one of China’s preeminent mining firms operating globally.

With renewed financial backing and drills now turning, Solaris Resources is intent on methodically unlocking the full promise of its Ecuadorian property package in 2024. The company’s near-term resource growth drilling, regional exploration campaigns, infrastructure studies, and new high-profile partnership with Zijin Mining set the stage for what could prove a potentially company-making year. Investors can likely expect a steady stream of news flow over the coming year, and further updates to this copper growth story.

 

 

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 announced the start of its 2024 drilling program at the Warintza copper-gold project in southeastern Ecuador. The company plans to have six drill rigs operating by the end of February as part of an aggressive exploration and resource expansion campaign this year.

The first drill rig has begun turning at the Warintza East zone, with a goal of significantly increasing the project’s mineral resource estimate. An updated estimate is expected in late Q2 2024, incorporating nearly double the previous meterage. Solaris aims to demonstrate major growth potential at the Warintza Central, East and Southeast zones within a common open pit shell.

Drilling will continue beyond the updated resource estimate, with a focus on further expanding mineralization and infill drilling covering at least 30 square kilometres. Additional permitted platform locations will enable optimized drill hole patterns. Some holes will serve the dual purpose of collecting data for metallurgical, geotechnical, and hydrogeological studies to support mine design.

Meanwhile, field exploration programs are underway to define new drill targets at prospective areas around the Warintza project. This includes follow-up sampling at the Mateo prospect, where previous soil sampling outlined a 3-kilometre by 1.4-kilometre copper-molybdenum anomaly surrounding a sandstone unit that may overlay a buried porphyry system.

On the financing side, Solaris has closed US$40 million in funding, including US$10 million in equity financing and the first US$30 million tranche of its previously announced US$80 million offtake debt facility. This financing package will support baseline exploration and development programs in 2024 and 2025.

Upon closing a recently announced C$130 million strategic investment by Zijin Mining Group Co. Ltd., Solaris plans to aggressively expand its drilling and exploration activities in 2024 and 2025. The company will aim to have ten drill rigs in operation and significantly increase regional exploration. Further details on infrastructure development and mine planning will follow in the coming months.

 

 

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 announced that it has entered into a subscription agreement with an affiliate of China’s Zijin Mining Group Co., Ltd. for a private placement of Solaris common shares. Under the terms of the agreement, Zijin will invest approximately $130 million into Solaris through the purchase of 28,481,289 common shares at a price of $4.55 per share. The deal values the shares at a 14% premium over Solaris’ closing share price of $3.99 on the Toronto Stock Exchange on January 10.

Mr. Daniel Earle, President & CEO, commented in a press release: “Zijin is one of the most successful major mining companies in the world. It boasts an unprecedented track record of growth from its origins operating a single gold mine in the early 1990s to becoming a global major operating in 16 countries with total revenue far in excess of its gold mining peers, including excepted top five-ranked copper production in 2024. We take tremendous pride in announcing our new strategic partnership with Zijin and look forward to leveraging its deep technical expertise and financial capacity in delivering the full potential of one of the last remaining greenfield copper districts at low elevation and adjacent to infrastructure available globally.”

Upon completion of the transaction, Zijin will own a 15% equity stake in Solaris on a fully diluted basis. The private placement proceeds will be used by Solaris to advance development of its Warintza copper-gold project in Ecuador and for general working capital purposes.

The share subscription agreement allows Zijin to nominate one member to Solaris’ board of directors as long as it maintains ownership of at least 5% of outstanding shares. Zijin will also have participation rights to buy additional Solaris shares to maintain its proportional holding.

Closing of the private placement remains subject to customary conditions and regulatory approvals, including from the Toronto Stock Exchange, Investment Canada, and Chinese authorities. Solaris expects the transaction to close by the end of Q1 2024. The newly issued shares will be subject to a statutory hold period.

Solaris was advised on the private placement by China International Capital Corporation Hong Kong Securities Limited and Minmetals Securities Co., Ltd. An early warning report will be filed by Zijin in accordance with Canadian disclosure rules.

 

 

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 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 announced finalized agreements with Orion Mine Finance Management LP for a funding package totaling US$80 million, aimed at supporting the development of the Warintza Project in Ecuador through studies and permitting.

The financing package is diverse, consisting of several components. Firstly, there is a senior secured debt facility amounting to US$60 million, known as the Senior Loan. This loan has a term of four years and notably does not include any hedging conditions. The drawdown of this loan will occur in three stages, each linked to specific milestones. The initial tranche of US$30 million is expected to close soon, followed by a US$15 million drawdown contingent on the submission of an Environmental Impact Assessment (EIA), and another US$15 million upon the publication of a Pre-Feasibility Study (PFS) for the Warintza Project.

Additionally, the agreement includes an offtake arrangement with a buyback provision, under which Orion will purchase 20% of the metals produced from the Warintza Project for 20 years starting from the commencement of production. This offtake is subject to a buyback clause in certain change of control scenarios.

Mr. Richard Warke, Executive Chairman, commented in a press release: “This financing package funds the advancement of Warintza through studies and permitting, leading to a substantially de-risked Project. This is a very special asset that has the potential to create tremendous long-term value for all stakeholders as it unlocks one of the last remaining major greenfield copper districts at low elevation and adjacent to infrastructure in the entire mining industry.”

The funding package also incorporates an equity component. Orion has agreed to subscribe to US$10 million of Solaris’ common shares at a price of C$5.11 each, which is the closing price as of November 6, 2023, prior to the initial announcement. There is also a commitment for an additional US$10 million in equity financing, which Solaris can call upon later under specific conditions.

The net proceeds from this financing will be utilized to advance the Warintza Project. This includes funding for exploration and infill drilling, technical and environmental programs and studies, permitting processes, community social relations programs, and general and working capital needs.

Solaris Resources is an exploration company with a focus on developing its portfolio of copper and gold assets in the Americas. The Warintza Project, located in Ecuador, is its flagship project and is recognized as a large-scale resource with significant potential for expansion and discovery.

 

 

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 global shift towards renewable energy, marked by a growing reliance on wind power and electric vehicles (EVs), hinges significantly on copper availability. However, a slump in the copper market presents a complex scenario. The current situation is characterized by a decrease in copper prices due to reduced demand from manufacturers and builders, who incorporate the metal in various applications, from electrical wiring to roofing. This drop in demand has led to a surplus, keeping copper prices low and thereby discouraging necessary investments for future supply.

Junior Copper Mining Companies and Solaris Resources

Junior mining companies like Solaris Resources (TSX:SLS) (OTCQB:SLSSF) are part of the solution in addressing the copper supply issue for the green energy transition. Their focus on discovering and advancing new copper resources, as exemplified by the Warintza Project in Ecuador, is key to meeting future demands. Recent expansions in the Warintza East discovery demonstrate the significant potential of such projects. On top of this, strategic partnerships, like Solaris’ appointment of China International Capital Corporation Limited (CICC) as a financial advisor, highlight the growing global interest in new copper resources, with the company considering investor interest in the project and company.

Mining Challenges and Investment Hesitance

The heart of the issue lies in the mining sector. To meet the burgeoning demands of renewable energy transition, mining firms are required to extract vast amounts of new copper in the coming years. Yet, the current market conditions are causing hesitance. Major mining companies like Freeport-McMoRan and Glencore have expressed their intentions to delay new mining projects until copper prices rise. This cautious approach stems from the high capital costs of developing new mines and the desire for profitability over long-term operations.

The Demand-Supply Mismatch and Future Projections

The mismatch between current supply and future demand is setting the stage for a potential market crunch, potentially leading to price spikes and supply shortfalls. Goldman Sachs metals strategist Nicholas Snowdon predicts an inevitable phase of extreme scarcity in the copper market. Adding to the complexity, factors such as a weaker pandemic recovery in China, the world’s largest copper consumer, and the resolution of supply disruptions in major producers like Chile and Peru contribute to the current market dynamics.

Renewable Energy’s Growing Copper Appetite

Despite these challenges, the demand for copper in the green energy sector is on the rise. Copper is essential for the construction of wind farms, solar arrays, and the manufacturing of batteries and power lines. However, this sector still accounts for less than 10% of global copper usage. China’s significant investments in renewable energy and EVs are driving up its copper consumption, with an increase in solar-related copper demand.

As the world moves towards a greener future, copper supplies become increasingly important, but the current market slump poses both a challenge and an opportunity. On one hand, it discourages immediate investments in new mining projects; on the other, it highlights the need for strategic planning and innovation to ensure a steady supply of copper for the burgeoning renewable energy sector.

 

 

Solaris Resources (TSX:SLS) has announced the addition of Mr. Javier Toro to their executive team as the Chief Operating Officer (COO), starting January 1st, 2023. Mr. Toro will take the reins of the Warintza Project, which is situated in the southeastern region of Ecuador. In a parallel development, the company has disclosed that it is close to securing significant financing, citing advanced negotiations over an offtake financing package amounting to US$80 million. This funding is intended to support the necessary studies and permitting processes for the Warintza Project.

Mr. Toro, an industry veteran, brings over a quarter-century of experience as a Mining Engineer. His illustrious career is highlighted by his expertise in steering the design and execution of engineering and economic assessments for notable open-pit copper ventures across the Americas. His previous position was with Hudbay Minerals, where he ascended to the role of Vice President, Mining Technical Services, after holding a series of incrementally senior positions. His tenure at Hudbay was marked by his oversight of several crucial technical reports and economic assessments for significant mining projects, including the Constancia mine in Peru and Copper World mine in the United States.

Before his engagement with Hudbay Minerals, Mr. Toro’s expertise was honed at Golder Associates Peru S.A., where he was instrumental in delivering mining designs and project cost evaluations. His foundational roles in various management capacities have been focused on geotechnical, hydrogeological, and mine planning operations. Mr. Toro’s academic credentials are equally impressive, with a Bachelor’s degree in Mining Engineering with Honors from the National University of Engineering in Lima, Peru.

The financial package, which Solaris is nearing an agreement on, must meet several conditions before the closing of the US$80 million financing deal. These include finalizing definitive documentation, and it’s been noted that there’s no certainty yet that this consensus will be reached or that the financing will ultimately be confirmed.

In related news, on September 12, 2023, Solaris provided an update on its exploration, reporting copper equivalent grades from its initial two reconnaissance drill holes at the Patrimonio site. Discovered in June 2023, Patrimonio is a new copper deposit located roughly half a kilometre southwest of Warintza Central. The drilling outcomes not only established the presence of significant copper mineralization but also uncovered a distinctive skarn-style mineralization within carbonate-rich volcanic sequences. The origin of this mineralization remains unidentified.

The two drill holes, SLSP-01 and SLSP-02, delivered copper equivalent grades from the surface, indicating two distinct phases of mineralization. The upper portions of the drill holes showed evidence of strong skarn alteration along with potassic alteration, with the latter stages dominated by a dacite porphyry showing quartz-sericite-pyrite alteration. The insights drawn from the drill core analysis point to a complex geological formation and suggest a different origin for the skarn mineralization compared to the later-stage alterations. This discovery hints at the possibility of uncovering additional skarn mineralization and potentially its source within the larger Patrimonio anomaly.

The company is actively engaged in detailed mapping and sampling efforts aimed at refining its understanding of this mineral system. These efforts include establishing the patterns of skarn presence and alteration zonation to prioritize further drilling sites. The mineralization detected so far remains open in multiple directions, adjacent to a less mineralized quartz-monzodiorite porphyry. The geological footprint of Patrimonio is outlined by an extensive soil anomaly pattern, with copper and molybdenum anomalies complementing each other and suggesting a strong mineral presence, which is further confirmed by the outcropping porphyry system showcasing extensive alteration and veining on the western periphery of an interpreted major fault line near Warintza Central.

 

 

The recent election in Ecuador, held on October 15, 2023, was a major moment not just in the country’s politics but also for its economic health, particularly the mining sector. Daniel Noboa, the newly elected president, is the son of a well-known banana magnate and his win is widely regarded as a favourable development for the mining industry. He defeated his opponent in a political climate that had investors, both domestic and international, keeping a watchful eye on the possible effects on extractive industries in the country.

Focus on Extractivism in the New Administration

The Noboa administration is anticipated to lay a strong emphasis on extractivism during the first 100 days in office. Extractivism is an economic model based on the principle that the exploitation of natural resources like oil, gas, and minerals is crucial for national development. Ecuador is a nation rich in these resources, boasting some of Latin America’s most significant deposits of gold, silver, and copper. Noboa’s approach aligns well with this wealth, fostering a setting that could fuel economic growth through natural resource extraction, and he has placed this at the forefront of his plan to close the fiscal deficit in the country.

From 2018 to 2020, Canada spearheaded foreign direct investment (FDI) in Ecuador, with a focus on large-scale mining projects. Mining is one of the key industries in Ecuador, and this trend of foreign investment is likely to continue, perhaps even more so under Noboa’s pro-business administration. His win comes at a critical juncture when four major mining projects are slated to begin production by the end of 2025, initially set into motion during the term of his predecessor, Guillermo Lasso.

Though there is plenty of optimism, it’s important to note that the mining sector in Ecuador is not without its hurdles. Opposition from local communities, coupled with environmental concerns and stringent regulations, present some challenges. Despite these obstacles, the government appears committed to fostering growth in the sector and is actively working to attract more foreign investment.

The Warintza Project and Solaris Resources

One project that stands to gain from the Noboa administration is the Warintza Project, owned by Solaris Resources (TSX:SLS) (OTCQB:SLSSF). The company has signed an Investment Protection Agreement with the Ecuadorian Government, establishing a stable regulatory environment for the project. This includes assurances regarding mining regulations, security of title, and substantial new tax incentives aimed at accelerating development. The project provides a case for how a supportive administrative backdrop can aid individual initiatives in the mining sector.

Solaris Resources also recently made headlines for appointing China International Capital Corporation (CICC) as its financial advisor for its operations in China. CICC is a leading global investment bank, with its headquarters in Beijing and a strong foothold in the Chinese market, especially in matters related to mining sector transactions. The appointment follows multiple acquisition proposals Solaris has received for the Warintza Project, underlining the increasing interest in both the project and Ecuador’s mining sector more broadly.

Recent public commentary and analysts suggest that Daniel Noboa’s election is likely to have a positive influence on the mining industry in Ecuador. His commitment to a pro-business stance provides a favourable climate for both domestic and foreign investment. While challenges still exist, particularly concerning environmental regulations and community opposition, the path ahead looks promising for projects like Warintza. Ultimately, a Noboa administration could make Ecuador an increasingly attractive option for foreign investors, potentially opening the door for more significant international partnerships and investments.

 

 

 

The copper industry is facing challenges ranging from global shortages to price volatility. Copper’s role as a barometer for the global economy is due to the fact that it is required in everything from electrical equipment to industrial machinery. However, this widespread use has contributed to a shortage that shows no signs of abating until at least 2030. Demand continues to climb, outstripping a supply that is already stretched thin, and this has implications for a host of industries reliant on copper.

One of the immediate challenges facing the industry is the short-term volatility of copper prices. Copper prices began the year on a strong note, boosted by a weakening dollar and a surge in demand from a reopening Chinese economy. But alongside this demand, supply issues have also cropped up. Peru, accounting for 10% of the world’s copper supply, has been mired in protests, affecting its mining capabilities. While these short-term challenges have immediate repercussions, analysts are pointing towards a more seismic shift—a generational change in copper prices. This shift is concerning as mining companies, which have enjoyed an upswing in valuations due to the price rise, might find these gains unsustainable in the long term.

With supply unable to meet demand, alternatives are desperately needed. Higher prices could incentivize companies to explore new mining projects, extract from lower-grade resources, and even adopt new technologies to extend the lives of their existing projects. Recycling could also offer some relief, becoming a more appealing option as copper becomes pricier. Some end-users may also resort to using other metals like aluminum to replace copper, or they may seek ways to use less copper in their operations. While these alternatives might offer short-term solutions, they won’t solve it.

The undeniable reality is that many existing copper mines are running out of ore. Investments into new mines have been sluggish, lacking the billions of dollars needed to address the growing deficit. A new copper mine takes around 10 years to become operational, and decisions made today will have repercussions a decade down the line. This long lead time makes the capital commitment even more urgent, yet the industry is still lagging in this regard. The last major investment cycle was in the 1970s, and while there has been a recent uptick in exploration spending, the new discoveries are rare and insufficient to compensate for the decline in ore grades from older, larger mines. Global mined copper production is projected to decline sharply, creating a 15Mt supply shortfall by 2034. By that time, over 200 copper mines are expected to run out of ore. Although there are possible projects in the pipeline, it’s uncertain how many will actually become operational.

Ultimately, a long-term copper shortage still appears inevitable. Supported by growing demand, especially from the electric vehicle and renewable energy sectors, and compounded by supply chain disruptions and dwindling Latin American supplies, this shortage will likely become a defining issue for the industry. Major global commodity miners are investing in new projects, signalling a bullish outlook, but the shortfall is a looming problem that demands immediate action.

Tackling these challenges will require not just higher investments and quicker decision-making but also an industry-wide recognition of the severe supply-demand imbalance. Some solutions may be beginning to appear in the form of new projects and increased interest from investors. One example is Solaris Resources’ (TSX:SLS) Warintza Project in Ecuador. Solaris Resources recently announced the appointment of China International Capital Corporation (CICC) as its financial advisor for Chinese operations. CICC is a Beijing-based global investment bank with a strong foothold in the Chinese mining sector, particularly in mergers and acquisitions. This appointment comes in the wake of multiple acquisition proposals Solaris Resources has received for the Warintza Project.

Mr. Richard Warke, Executive Chairman, commented in a press release: “Warintza is a very special asset that has the potential to create tremendous long-term value for all stakeholders by unlocking one of the last major greenfield districts at low elevation and adjacent to infrastructure in the global copper industry. The Company has a rich opportunity to significantly grow the Project while advancing it through technical studies and permitting with financing consistent with my commitment to minimize shareholder dilution.”

The Warintza Project drawing attention and the appointment of CICC as the financial advisor are part of some broader trends across the copper mining industry. Chinese investors are increasingly looking at Ecuador’s mining sector with growing interest. Companies engaged in exploration projects in the region are fielding more calls and inquiries about potential collaborations or acquisitions. This uptick in interest can be seen as a reflection of the growing recognition that more copper projects are needed to address the looming global shortage and a path forward for miners.

 

 

Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has announced the appointment of China International Capital Corporation Limited (CICC) as its financial advisor for Chinese operations. CICC is a global investment bank headquartered in Beijing, with more than 200 branches across China and additional offices in Hong Kong and other international locations. The firm holds a strong position in the Chinese M&A market, particularly in transactions related to the mining sector. This move comes after Solaris Resources has received multiple acquisition proposals for its Warintza Project in Ecuador.

Mr. Richard Warke, Executive Chairman, commented in a press release: “Warintza is a very special asset that has the potential to create tremendous long-term value for all stakeholders by unlocking one of the last major greenfield districts at low elevation and adjacent to infrastructure in the global copper industry. The Company has a rich opportunity to significantly grow the Project while advancing it through technical studies and permitting with financing consistent with my commitment to minimize shareholder dilution.”

CICC will be responsible for evaluating the viability of these proposals, among other strategic considerations. The appointment is particularly timely given the current surge of interest from Chinese investors in Ecuador, as reflected in recent news reports. Companies engaged in exploration projects in the country, like Solaris, are increasingly receiving calls and inquiries about potential collaborations or acquisitions.

 

 

 

As part of its efforts in sustainability and education with communities in Ecuador, Solaris Resources (TSX:SLS) (OTCQB:SLSSF) subsidiary Lowell Mineral Exploration Ecuador S.A.,  in January of 2023, partnered with the Private Technical University of Loja (UTPL) to launch an online education program called “Understanding Mining.” The program is designed to educate people about the mining industry in Ecuador. The course is free of charge and specifically targets residents of Morona Santiago, where the Warintza Project is located, as well as any other Ecuadorians interested in learning about the sector.

Upon completing the course, participants will receive a certificate from UTPL. The only prerequisite for taking part in this educational program is access to a device with an internet connection, such as a computer, tablet, or smartphone. The course material is accessible via UTPL’s virtual platform and covers six modules. These modules include an Introduction to the Mining Industry, Geology and Distribution of Mineral Deposits, Phases of Mining, Economic and Social Development Around Mining, the Legal Framework of Mining in Ecuador, and a section on Solaris Resources’ Warintza Project.

To enroll, interested individuals can visit UTPL’s continuing education website and follow a simple registration process that includes filling out a form. Solaris Resources, which operates the Warintza Project in the province of Morona Santiago in south-eastern Ecuador, aims to promote inclusion and access to information through its “Warintza Education” program. This initiative is in line with the United Nations Sustainable Development Goal #4, which emphasizes inclusive and quality education for all.

 

 

The mining industry, known for its energy-intensive operations, is increasingly focusing on reducing its greenhouse gas (GHG) emissions. This shift comes in response to mounting pressure from various stakeholders, including investors, customers, and regulators.

Several mining companies have already initiated significant steps toward emission reduction. For example, Lowell Mineral Exploration Ecuador S.A., a subsidiary of Solaris Resources (TSX:SLS) (OTQB:SLSSF)., has been awarded a Level 1 “Carbon Footprint Quantification Badge” by Ecuador’s Ministry of Environment, Water, and Ecological Transition (MAATE). The badge is part of the Ministry’s Zero Carbon Ecuador Program (PECC) and marks Lowell as the first mining company to join the initiative. José Dávalos, the Minister of Environment, Water, and Ecological Transition, noted the difficulty of accurately measuring a mining company’s carbon footprint and praised Lowell for setting an example of responsible mining in Ecuador. He encouraged other companies in various industries to adopt international environmental standards and go beyond what is legally required by Ecuadorian laws.

The PECC aims to help companies quantify, reduce, and neutralize their greenhouse gas (GHG) emissions through a transparent verification system. To earn the Carbon Footprint Quantification Badge, companies must measure and report their emissions, in line with specific guidelines. These guidelines include compliance with the NTE INEN-ISO 14064-1:2018-GHG PROTOCOL, Zero Carbon Ecuador Program PECC MAATE-2021-047 standards, and ISO standards.

Federico Velásquez, President of Solaris for Latin America, commented in a press release: “This milestone is the first step in the implementation of our carbon reduction strategy by quantifying our carbon footprint through an independent, verified entity in order to reduce our emissions and contribute to mitigating climate change. These concrete actions allow us to catalyze change and lead our industry towards a greener future and guarantee the rights of the communities involved in the Warintza Project. We are now actively working towards achieving the targets set for Level 2 of PECC carbon reduction where we not only implement actions to mitigate environmental impacts but also further safeguard natural resources for future generations.”

Solaris Resources, the parent company of Lowell, is exploring the Warintza Project in southeastern Ecuador’s Morona Santiago province. The company has a program called “Warintza Verde” through which it aligns with United Nations Sustainable Development Goal #13. This program commits the company to incorporate climate-friendly policies and strategies and to take active steps to reduce its carbon footprint.

Global giants in the industry are also setting ambitious targets. Rio Tinto aims to cut its Scope 1 and 2 emissions by 33% by 2030, focusing on renewable energy, energy efficiency, and electrification. Similarly, BHP has committed to reducing its operational emissions by at least 30% by 2030 through comparable means. Vale has even set goals for Scope 3 emissions, aiming for a 15% reduction by 2035, in addition to a 33% reduction in its Scope 1 and 2 emissions by 2030.

As mentioned, the most common approach is enhancing energy efficiency. By investing in new technologies and upgrading equipment, companies can achieve this goal. Simple changes, like opting for energy-efficient lighting, heating, and ventilation systems, can make a substantial difference. There is also a growing trend to reduce dependence on diesel fuel, a significant source of GHG emissions. Alternatives like renewable energy sources or battery-powered vehicles are being explored to replace diesel-powered machinery.

Switching to renewable energy is another avenue to curb emissions. Investments in solar and wind energy are on the rise within the mining sector. Utilizing these cleaner energy options not only lowers emissions but also diminishes the reliance on fossil fuels, a known contributor to GHG emissions.

Additionally, mining companies are beginning to extend their emission reduction efforts to their supply chain. By setting emissions targets for suppliers and offering support to meet these goals, the industry can create a more comprehensive approach to sustainability.

Investors are demanding these initiatives more frequently for several reasons. Firstly, tackling climate change is an ethical imperative. The growing recognition of climate change as a severe threat to both the environment and human society makes emission reduction efforts more critical. Second, sustainability is becoming a key competitive differentiator. Companies demonstrating a commitment to reducing their environmental impact are more appealing to customers, who are increasingly valuing sustainability. And of course, these initiatives often translate to reduced operational costs, primarily through savings in energy expenses, making them financially advantageous for the companies.

The mining industry is proactively taking steps to lessen its environmental footprint, mainly by focusing on energy efficiency, renewable energy adoption, and collaborative efforts with suppliers, for a new competitive edge that will take the industry into the future.

 

 

Solaris Resources (TSX:SLS) has reported assay results from its initial two reconnaissance drill holes at the Patrimonio target located within the Warintza Project in southeastern Ecuador. These results solidify the finding of a substantial new copper deposit southwest of Warintza Central.

The Patrimonio discovery was made in June 2023 during a mapping and sampling initiative in proximity to Warintza Central, specifically about 0.5 km to its southwest. These early drill holes have now confirmed the existence of this notable copper reserve. Furthermore, a unique skarn mineralization has been observed within volcanic sequences rich in carbonate. The source of this mineralization is still under investigation.

Details regarding the drilling specify that hole SLSP-01, drilled in a northwest direction, unveiled 50m of 0.75% CuEq¹ and 96m of 0.59% CuEq¹ within a larger span of 144m of 0.50% CuEq¹ from the surface. This was prior to its entry into a mildly mineralized dacite porphyry stock. On the other hand, hole SLSP-02, drilled westward from an identical platform, indicated 148m of 0.52% CuEq¹ inside a more expansive range of 276m of 0.40% CuEq¹ near the surface, culminating in the porphyry.

Two unique mineralization phases have been identified. The first is evident in the upper sections of the holes, showcasing potent epidote-magnetite (skarn) alterations and secondary biotite (potassic) alterations within a series of volcanic structures. The subsequent phase is linked with a later-developing dacite porphyry influenced by quartz-sericite-pyrite alteration which intersects the mineralization in the aforementioned volcanic segments.

Insights gathered from the drill core imply that the epidote-magnetite (skarn) mineralization has origins different from the dacite porphyry, suggesting a captivating possibility for unveiling more skarn mineralization or even its intrusive source within the Patrimonio anomaly.

Furthermore, the later dacite porphyry-influenced quartz-sericite-pyrite alteration possesses around 10% sulphides, primarily pyrite, surpassing chalcopyrite. This indicates potential for similar target settings in other porphyries within the Warintza cluster, where favourable sulphide layers associated with earlier alteration phases are dominated by chalcopyrite over pyrite.

Current efforts are in place for meticulous mapping and sampling to understand this mineral system better and to determine directions for skarn and alteration layers. This will also assist in setting priorities for drill locations that are presently in the construction phase. The copper mineralization is still not fully explored towards the northwest, south, and west, while it touches a slightly mineralized quartz-monzodiorite porphyry on its northeast side.

Patrimonio is characterized by a north-south molybdenum soil anomaly that measures approximately 1.5km x 0.5km, surrounded by a copper soil anomaly extending towards the west. Here, outcropping porphyry shows noticeable alteration and veining, situated on the western flank of an assumed major north-south fault close to Warintza Central.

Highlights from the results are as follows:

Table 1 – Assay Results

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

Table 2 – Collar Location

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.