Copper-Gold Explorer Finds Massive Breccia Expansion in Chile

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

ATEX Resources Inc. (ATX:TSXV) announced drilling results from its Valeriano Copper-Gold Project located in the Atacama region of Chile in a July 8 release.

The latest findings include comprehensive results from drill holes ATXD23C and ATXD31A, along with preliminary results from ATXD31B. The Phase VI drilling campaign achieved a record-breaking total of about 28,400 meters, surpassing the initial target of 25,000 meters. To date, about 65% of the assays from this phase have been released, with the remaining results anticipated through July.

"These results continue to strengthen our confidence in the continuity of the high-grade B2B breccia and its relationship to the underlying high-grade porphyry system," ATEX Interim President and Chief Executive Officer Chris Beer said.

He highlighted that hole ATXD23C revealed significant high-grade mineralization at the southern boundary of the currently defined B2B Mineral Resource. Additionally, holes ATXD31A and ATXD31B indicated that the system remains open to the north. Beer also noted that previously reported results from hole ATXD19A suggested that the B2B breccia extends approximately 180 meters to the south, with follow-up drilling set to resume in September as part of the Phase VII program.

"Collectively, these results improve our understanding of the geometry, continuity and scale of the B2B breccia while reinforcing our interpretation that the highest-grade mineralization forms part of a much larger porphyry system with significant growth potential," Beer continued. "Based on drilling completed to date, the B2B breccia has now been traced over approximately 600 meters representing a 50% increase from the previously interpreted 400-meter strike length. With several holes ending in mineralization and approximately 35% of Phase VI assays still pending, we believe there remains substantial opportunity to continue expanding both the high-grade B2B breccia and the broader Valeriano mineralized system."

Highlighting some of the impressive assay results, hole ATXD23C intersected 20 meters of 4.10% copper equivalent (CuEq), including 2.53% copper, 1.39 grams per tonne (g/t) gold, 9.3 g/t silver, and 84 g/t molybdenum. This was within broader intervals of 78 meters grading 3.03% CuEq and 124 meters grading 2.65% CuEq, representing some of the highest-grade intervals drilled at Valeriano.

These results have further defined the geometry of the high-grade B2B breccia, increased confidence in its size, shape, and volume, and confirmed the continuity between the high-grade B2B breccia and the underlying high-grade porphyry, reinforcing the interpretation of a larger, connected mineralized porphyry system, the release said. The fact that one of the holes ended in mineralized porphyry highlights the potential to further expand both the high-grade B2B core and the underlying high-grade porphyry core.

Details of Results

The results are pivotal in understanding the potential for expanding the high-grade B2B breccia system within the project, the company said in the release.

Drill hole ATXD31A revealed a 64-meter section with 1.02% CuEq, including a broader interval of 84 meters with 0.96% CuEq. This finding confirms the presence of high-grade mineralization along the lower B2B Zone and demonstrates the potential to extend this mineralization both laterally and at depth. It also strengthens confidence in the three-dimensional geometry of the lower B2B breccia, identifying opportunities for further expansion to the northwest and deeper regions.

Similarly, ATXD31B intersected 146 meters of 1.14% CuEq within a broader interval of 408 meters of 0.88% CuEq, confirming the thickness, continuity, and northern extent of mineralization within the B2B system. This hole ended in mineralized porphyry, with assays pending, highlighting the potential to further expand the B2B system beyond the currently reported interval.

Technical analysis of ATXD23C intersected 20 meters of 4.10% CuEq within broader intervals of 78 meters of 3.03% CuEq and 124 meters of 2.65% CuEq. This drilling was aimed at testing the shallower portion of the high-grade B2B breccia to improve confidence in its lateral continuity and interpreted geometry. It successfully linked the high-grade B2B breccia with the underlying high-grade porphyry, reinforcing the interpretation of a single, connected mineralized system.

The results from these drillings are crucial as they not only confirm the continuity between the high-grade B2B breccia and the underlying high-grade porphyry but also reinforce the interpretation of a larger, connected mineralized porphyry system, ATEX said. The ongoing exploration and drilling efforts are essential for ATEX Resources as they continue to derisk and advance the development of the Valeriano project, aiming to meet the increasing demand in the defense industry for streamlined and efficient mineral extraction processes.

The Phase VI drilling program conducted by the company has successfully concluded, surpassing its initial target by drilling a record 28,400 meters, significantly over the planned 25,000 meters, the release noted. This extensive drilling effort focused on several key areas: approximately 15,500 meters were dedicated to the high-grade B2B Zone, 11,750 meters targeted nearby high-grade breccia zones, and 1,025 meters were aimed at exploring porphyry extensions.

Although the drilling activities for the season have been completed, there remains a substantial portion of data still pending analysis. About 35% of the assay results have not yet been finalized and are expected to be released progressively as they are received from the laboratory throughout July.

Analyst: 'Thesis of This Name Has Become Stronger'

These new results build on earlier findings released on May 26 and March 16, showcasing impressive outcomes that highlight the project's continuity and scale, according to a research note by Analyst Robin Kozak for Ventum Capital Markets on July 9.

The latest data reveals significant expansion of the high-grade B2B breccia, substantial high-grade mineralization at the southern boundary of the currently defined B2B mineral resource, and confirmation that the system remains open to the north. Despite the systematic expansion of Valeriano within the B2B Zone and the broader porphyry system, the drill results indicate that exploration is still in its early stages.

The stock has seen a decline year-to-date and was trading at the time of writing at an 80% discount to our NAV10% of CA$10.86. This presents an attractive entry point for long-term investors. Highlights from the recent drilling include intercepting 20 meters of 4.1% copper equivalent (CuEq) within 78 meters of 3.03% CuEq and 124 meters of 2.65% CuEq in hole ATXD23C at the southern margin of the B2B Zone. These are among the highest-grade intervals intersected at Valeriano to date, underscoring the project's significant upside potential.

The B2B breccia has now been traced over approximately 600 meters, a 50% increase from the previously interpreted 400 meters. Several holes ended in mineralization, suggesting the potential for further expansion of the high-grade B2B breccia both laterally and at depth. The Phase VI drill program encompassed about 28,400 meters of drilling, with roughly 65% of assays released so far and the remainder expected through July. The continuation of the high-grade B2B breccia and the broader system offers substantial opportunities for further expansion, with the Phase VII drill program set to commence in September.

Ventum rated the stock a BUY with a price target of CA$5.50,

"If anything, our thesis on this name has become stronger over this drill season," Kozak wrote. "The combination of exploration success, scale, optionality, and exceptional financial backing is what makes ATEX such a compelling investment. The story does not end there. The Valeriano project itself holds the potential to anchor a new copper district. The stock currently trades at a deep discount to our NAV10% of CA$10.86, calculated using a long-term copper price of US$4.50/lb. Our price target of CA$5.50 implies ~150% upside from current levels."

In a flash note update on the same day, Paradigm Capital Analyst David Davidson called the results "impressive."

ATX23C returned some of the highest grades seen at the property, he noted. All three holes appear to have met their objectives by expanding the B2B zone, primarily in the up and down-dip directions. We believe the Phase VI results to date should support a sizable increase in the high-grade B2B breccia interpretation in an eventual mineral resource update.

Davidson said the firm awaited results from meaningful step-outs testing the extension of known mineralization of both the B2B zone and the underlying high-grade porphyry, noting only 65% of results have been received.

"Shares are trading down at CA$2.19 after trading as high as CA$4.25 in late February, trading at less than US$0.015/lb CuEq (broad copper developer peers at ~US$0.035/lb)," he wrote. "ATEX is good value at these levels and remains one of the better exploration stories out there."

The Catalyst: Copper Surges on Oil Price Decrease

Copper prices experienced a notable increase, trading at US$6.27 per pound, which equates to just over US$13,800 per tonne, marking a 2.6% rise by midday in New York on Thursday, Frik Els wrote for Mining.com on July 9. This surge was influenced by a decrease in oil prices following U.S. President Donald Trump's announcement that Iran has returned to the negotiation table, coupled with new tariff threats in the U.S. The Commerce Department has announced plans to potentially expand tariffs of up to 50% on a broader range of downstream copper products by the end of the fiscal year 2026.

In a recent commodities compendium titled "Spinning Plates," analysts from Macquarie Strategy, based in locations including London, Shanghai, and Singapore, discuss the current state of the copper market. They argue that while investor sentiment towards copper remains bullish, the physical fundamentals are weakening, creating a significant gap at current price levels. The report suggests that the global market is not facing a shortage of copper, with surpluses expected in the coming years, indicating that a depletion of copper supplies is unlikely in the near future.

Visible copper stocks have seen a substantial increase, rising by more than 870,000 tonnes since the beginning of 2025, including an addition of 444,000 tonnes last year and 429,000 tonnes so far in 2026, Els wrote. Inventories at the London Metal Exchange (LME) are at eight-year highs, while Comex stocks have reached unprecedented levels. Additionally, Macquarie estimates that another 550,000 tonnes of copper is currently held off-exchange in the U.S.

Copper prices rallied from below US$12,000 per tonne in late March to well over $14,000 by the end of May, before experiencing a slight decline. According to Macquarie, this price movement was driven more by market positioning, short-covering, and tariff-related trade flows rather than by any physical tightness in the market. The metal has been attracted across the Atlantic by the CME-LME arbitrage as traders adjust their positions in anticipation of potential U.S. copper trade measures, the article said.

Macquarie predicts that the most likely scenario for the copper market is continued uncertainty rather than a clear resolution in the near term. This uncertainty is expected to keep copper within the U.S., giving the rest of the market an artificial sense of tightness. Furthermore, Macquarie notes that Chinese buyers are retreating from the market due to the high prices. Despite lower imports and higher exports, China has experienced a large seasonal stock build, and the usual drawdown of stocks stalled early. Outside of China, demand is also soft, with spot premiums remaining well below the levels of annual contracts.

The global copper market, valued at US$248.2 billion in 2025, is on a trajectory for significant growth, projected to reach US$388.8 billion by 2033, Grand View Research noted. This growth represents a compound annual growth rate (CAGR) of 5.9% from 2026 to 2033. In 2025, the Asia Pacific region dominated the market, accounting for 74% of the global market share.

"Copper is a critical material used in building wiring, plumbing, roofing, and other infrastructure components due to its superior conductivity and corrosion resistance," Grand View noted. "Rapid urbanization, especially in the Asia Pacific and Africa, propels the demand for residential and commercial infrastructure, thereby boosting copper consumption. Large-scale investments in public infrastructure projects such as bridges, highways, and smart cities further stimulate the need for copper-based materials."

Due to its electrical efficiency, it plays a central role in solar photovoltaic systems, wind turbines, electric grids, and energy storage systems, the report noted.

"The global push for cleaner energy sources to meet climate targets has led to a surge in renewable power installations, all of which require significant amounts of copper," Grand View said. "Moreover, as countries upgrade aging power grids and integrate smart grid technologies, the demand for copper-intensive transmission and distribution networks continues to climb."

Ownership and Share Structure¹

About 13% of the company is owned by insiders and management, about 16% by strategic investors, and about 18% by institutions. The rest is retail.

Its market cap is CA$861.65 million with 374.63 million shares outstanding. It trades in a 52-week range of CA$1.96 and CA$4.55.