What were the standout results from ATEX’s 2023/24 drilling campaigns?

BP: Everything from ATEX’s Phase IV drill program has been a highlight. The initial holes revealed a major continuity trend to the northwest. Hole 16A returned 1.48% CuEq (1.53% CuEq with metallurgical results) over 112 meters. An unexpected porphyry was found in the gap between the central and eastern trends, indicating potential continuity. Hole 25, starting at -87 degrees and flattening to 48 degrees, showed continuous mineralization from 1,500 m, confirming the strike. Hole 17B revealed continuous and sporadic mineralization, suggesting potential similarity to Hole 16A. Hole 26 linked the high-grade trend seen in previous phases, confirming 1% CuEq mineralization in the last 100 m.

We identified a high-grade core approximately 600 m along strike and 300 m wide, open to the north. Each hole has contributed to our understanding, suggesting a larger project for the upcoming Phase V drill program.

CN: The speed of payback on a large capital investment will be crucial. Synergies with other developing deposits in the region are vital, as significant infrastructure will be needed. Along with Vicuña, El Encierro, Fortuna and Costa del Fuego, we have the chance to develop a major mining hub in north-central Chile. Can you provide highlights from the September 2023 Mineral Resource Estimate?

BP: The September 2023 resource estimate included 1.4 billion t of inferred copper mineralization at a 0.4% cutoff. At a break-even cutoff of closer to 0.3%, Valeriano hosts almost 2.5 billion t. We chose to report the resource at a higher cutoff as we feel that this gives a fairer reflection of a potential economic cutoff for the project with an average grade of 0.67% CuEq calculated using our resource model metallurgical recovery assumptions (90% for copper, 70% for gold). When applying our actual metallurgical recoveries, released in October 2023 (95% for copper, 94% for gold), the grade increases to 0.7% CuEq.

We think this bodes very well for the project as we move through de-risking the project and start to look towards a PEA at the end of 2025. What differentiates Valeriano’s geology?

BP: We have granodioritic intrusions into a flat-lying Permian rhyolite volcanic sequence with high silica and low iron, resulting in chalcopyrite-dominated mineralization with bornite. The equigranular chalcopyrite is visually fine-grained but medium grade metallurgically, extending in all directions. We simply grind the rock and float it to achieve high recoveries. Initially, we thought there was more wall rock involvement, but it is now clear that granodiorite intrusions dominate and mineralize the surrounding wall rock. A significant surprise was the late-stage epithermal system overprinting the porphyry, giving us 2% grades. It is clean, with no arsenic or selenium, allowing production using existing processing techniques.

A block cave operation of this scale offers significant benefits. Once the payback period is complete, it becomes a fixed-cost operation for the remainder of the mine's life. Unlike open-pit mines, there is minimal additional capital intensity after initial investments. What is your vision of the district?

BP: If we consider current trends, such as shortened permitting timelines and national infrastructure investments, the future looks promising. For example, Hot Chili’s desalinization project reduces capital requirements for NuevaUnion (Teck-Newmont), El Encierro (Barrick-AMSA), and ATEX by at least US$1 billion. Between Codelco’s exploration in the area, La Fortuna, and El Encierro, there are already multiple discoveries, not considering Vicuña to the north. With 10 more years of exploration, this area has the potential to become one of the largest copper producing districts in the world. Fast-tracking of new discoveries due to enhanced infrastructure will be a game changer for copper supply in Chile, with significant international benefits. What is ATEX’s approach to community relations?

CN: Our community relations team in Chile has built strong relationships in the Huasco Valley. Open, honest communication with our neighbors is crucial for developing this district.

BP: PreparATEX is a special initiative where we find working-age individuals in Huasco interested in joining our industry and offer opportunities to work on our project. This benefits us by eliminating misunderstandings. This initiative is about providing opportunities and fostering long-term relationships. It ensures that people see who we are, what we are doing, and how we operate, promoting transparency and eliminating misconceptions.