Get the Latest Investment Ideas Delivered Straight to Your Inbox.

TICKERS: CT; CTMIF

Drill Results Soon at Centenera's Esperanza Copper-Gold Project
Contributed Opinion

Source:

Peter Epstein Peter Epstein of Epstein Research profiles a company actively exploring a project in Argentina that could become a major copper-gold asset.

Drill cores at Centenera's Esperanza Project

I recently returned from a hectic trip to Toronto for an annual mining industry investment conference known as PDAC. I met with 28 companies and spoke to dozens of investors. While there, I expected to talk a lot about Lithium and Cobalt—how the sell-off in those sectors could be close to over, how demand forecasts keep rising in the face of uncertain long-term supply, etc.

Although there were plenty of discussions regarding "battery metals," I was surprised by the universal excitement over a metal that's old school, but also indispensable to the future of electric vehicles and renewable energies, a metal that needs no further introduction: #Copper.

One of the best stories I heard at PDAC was an update from Keith Henderson M.Sc., CEO and director of Centenera Mining Corp. (CT:TSX.V; CTMIF:OTCQX), an Argentina-focused company with attractive Copper (Cu) and Gold (Au) exploration projects. Upon a positive change in Argentina's government in late 2015, Centenera was quick to jump more actively into the country.

Drilling is underway at the company's flagship project, and management believes that it's going quite well. The first assay is expected around the end of March.

The crown jewel asset and primary focus of Centenera this year is the 100% controlled, near-surface Esperanza copper-gold project—formerly known as the Huachi project—an outcropping Cu-Au porphyry system with a blockbuster discovery that included a drill hole intersection of 353 meters grading 0.49% Cu Eq., (incl. 243 m at 0.57% Cu Eq. & 88 m at 0.69% Cu Eq.). Mineralization outlined at surface and found in shallow drilling is open in all directions and at depth.

Assays from the discovery drill campaign included:

http://epsteinresearch.com/wp-content/uploads/2018/11/Screen-Shot-2017-11-28-at-9.09.07-AM.png

Esperanza is in San Juan province in northwestern Argentina, sitting at an elevation of between 2,800 and 3,250 meters. That's relatively low compared to work being done in the high Andes. The project is 35 km from existing power lines. Proximity to key infrastructure is absolutely critical for mining bulk tonnage porphyry deposits.

Exploration can be performed year-round in San Juan, ranked in the 2017 Fraser Institute of Mining Survey as the #1 province in Argentina, and third best mining jurisdiction in all of South America. Despite well-known players like Barrick and Yamana Gold being active in San Juan, the Esperanza project remains remarkably underexplored. Only seven drill holes (2,011m) have tested this extensive, outcropping copper-gold porphyry system.

http://EpsteinResearch.com/wp-content/uploads/2018/03/Screen-Shot-2018-03-07-at-10.18.00-PM.png

After several weeks of delay due to unseasonal storms and flash flooding across multiple northern provinces, drilling is well underway at Esperanza. Interestingly, while repairing road access to site, new mineralization was exposed at surface in an area thought to be barren. Mineralization is now interpreted to extend significantly further to the southeast than previously known. Some of the best mineralization to date has been intersected in this area.

The Phase I drill program is investigating the potential for a bulk-tonnage copper-gold porphyry-style deposit. Management is currently drilling four step-out holes, ~2,000m in total, each at least 100m away from historical holes. The aim is to reach deeper, (500–600m), than prior efforts. Deeper drilling was called for because several assays from 2006–2007 showed grade increasing at depth.

Some drill core from the first hole is about to be sent out for assay. I'm told that upon visual inspection, the technical team felt that the core looked really good, but readers will have to wait along with management until the end of March for lab results.

http://EpsteinResearch.com/wp-content/uploads/2019/03/Screen-Shot-2018-03-08-at-7.59.26-PM.png

Upon success in Phase I, a Phase II program would include four additional step-outs of 100–150m, plus two IP targets 500m to the east, for a total of six holes.

Based on exploration to date, the significant grade, and thickness of reported intervals, management believes there could be hundred(s) of millions of metric tonnes of mineralization. The area of interest is already 1,400m by 850m. If strong grade and wide intervals continue to be found, the deposit could host billion(s) of Copper Equivalent (Cu Eq) pounds. Make no mistake, it's still early days, but there's a real possibility for substantial scale to be unearthed here.

http://EpsteinResearch.com/wp-content/uploads/2019/03/Screen-Shot-2018-03-08-at-3.21.35-PM.png

It's worth reminding readers that McEwen Mining's Los Azules project is also in San Juan province. McEwen's website describes Los Azules as follows: 962 million tonnes containing 10.2 billion pounds Cu in the Indicated category, plus 2.666 billion tonnes containing 19.3 billion pounds Cu Inferred, with (Cu only) grades of 0.48% and 0.33%, respectively. That's a combined 3.6 billion tonnes of mineralization, containing 29.6 billion pounds Indicated & Inferred Cu, at an average grade of 0.37%.

Delineating hundred(s) of millions of tonnes is not a sure thing, and it won't necessarily come in the maiden mineral resource estimate. However, historical exploration, combined with the current drill program, could provide further evidence of grade, scale and continuity that attracts considerable attention.

Centenera has a tremendous management, Board and technical team for a company its size (72.4 million shares outstanding x C$0.165 = C$12.0 million = US$9.3 million market cap).

http://EpsteinResearch.com/wp-content/uploads/2019/03/Screen-Shot-2018-03-09-at-1.41.09-PM.png

Centenera Mining Corp. [TSX-V: CT / OTC: CTMIF] is sitting on what could be a major copper-gold asset in San Juan, with important drill results coming soon. It also holds a portfolio of promising projects, also in Argentina, including a high sulphidation epithermal gold mineralization project and a hard rock lithium play, both in Salta province.

Here's a very good 4-minute video clip of CEO Henderson from PDAC in early March.

Readers would benefit from reading the March 2017 Esperanza Technical Report

Recent press release: February 21, 2018, Website, Twitter, Corporate Presentation

Peter Epstein is the founder of Epstein Research. His background is in company and financial analysis, and he is a Chartered Financial Analyst (CFA). He holds an MBA degree in financial analysis from New York University's Stern School of Business.

Want to read more Gold Report articles and interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures: The content of this article is for information purposes only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein, about Centenera Mining, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered, in any way whatsoever, implicit or explicit investment advice. Further, nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. The content contained herein is not directed at any individual or group. Peter Epstein and Epstein Research [ER] are not responsible, under any circumstances whatsoever, for investment actions taken by the reader. Peter Epstein and [ER] have never been, and are not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and they do not perform market making activities. Peter Epstein and [ER] are not directly employed by any company, group, organization, party or person. The shares of Centenera Mining are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.

At the time this article was posted, Peter Epstein owned shares and stock options of Centenera Mining and the Company was a sponsor of Epstein Research. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he's diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. Mr. Epstein & [ER] are not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Mr. Epstein & [ER] are not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. Mr. Epstein and [ER] are not experts in any company, industry sector or investment topic.

Streetwise Reports Disclosure:
1) Peter Epstein's disclosures are listed above.
2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Centenera Mining. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Centenera Mining, a company mentioned in this article.

Charts and graphics provided by author.




Want to read more about Gold and Base Metals investment ideas?
Get Our Streetwise Reports Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe