Atex rises on best copper-gold assay yet at Valeriano

Drilling at Atex Resources’ (TSXV: ATX) Valeriano copper-gold project in northern Chile returned results as high as 2.21% copper – the company’s highest-grade intersection yet in mineralized porphyry at the site. Shares jumped.

Hole ATXD25A cut 30 metres grading 2.21% copper, 3.17 grams gold per tonne, 15.1 grams silver and 3 grams molybdenum from 1,892 metres depth, the company reported Tuesday. The hole also pierced 16 metres at 3.04% copper, 4.82 grams gold, 21.1 grams silver and 5 grams molybdenum from 1,896 metres depth.

“Valeriano keeps getting better with every hole in the (stage five) program to date intersecting significant high-grade mineralization and setting new records for the project,” Atex president and CEO Ben Pullinger said in a release.

Hole ATXD25A extended the high-grade porphyry trend by about 1,000 metres, where it remains open, Pullinger added.

Upcoming resource

BMO Capital Markets analyst Rene Cartier wrote in a note on Tuesday that Atex’ stage five program continues to deliver, and supports the company’s upcoming resource estimate, expected to be released in the second half of the year. That update is to convert inferred resources to indicated, Atex said.

Valeriano hosts 1.4 billion inferred tonnes grading 0.49% copper, 0.21 gram gold, 0.99 gram silver and 62.4 grams molybdenum, according to a resource released in 2023. Contained metals total about 7 million tonnes copper, 9.5 million oz. gold, 46.1 million oz. silver and 90,100 tonnes molybdenum.

Atex shares rose 7.8% to $2.34 apiece on Tuesday morning in Toronto, giving the company a market capitalization of about $647 million. In the past year, the stock has traded between $1.13 and $2.40.

$55M from Agnico

The explorer’s stage five drill program was boosted by Agnico Eagle Mines’ (TSX, NYSE: AEM) $55 million investment last October, which also gave the major a 13% stake in ATEX.

The highest-grade portion of ATXD25A was 1,000 metres below the B2B zone at Valeriano, which represents a new target that’s to be tested in hole ATXD25B. Two rigs are currently drilling in the B2B zone to further define it.

Another significant intersection at Valeriano, hole ATXD16B, cut 780 metres grading 0.56% copper, 0.23 gram gold, 0.9 gram silver and 90 grams molybdenum from 1,044 metres depth. It included 232 metres at 0.75% copper, 0.31 gram gold, 1.2 gram silver and 88 grams molybdenum. The hole also extended the high-grade porphyry trend by about 120 metres to the southeast, where it remains open, ATEX said.

Hole ATXD23A intersected 1,220 metres grading 0.66% copper, 0.28 gram gold, 1.9 grams silver and 130 grams molybdenum from 822 metres depth; including 22 metres at 2.35% copper, 1.31 grams gold, 8.6 grams silver and 29 grams molybdenum.

So far, 9,675 metres across five holes have been drilled in the stage five program, while another five are ongoing. The 61.3-sq-km Valeriano project is located about 200 km southeast of Huasco port, and near the border with Argentina.