Updates from my three-week (April 2024) TMT site visit in Argentina

I returned to Perth last week after an extensive three-week site visit at Belararox Limited's TMT Project, and I'm eager to share some significant insights that I've gained during my time there. Despite encountering weather-related challenges, our fieldwork is now nearing completion. Along this journey, I've gathered invaluable observations that fortify my confidence in the outstanding team and project we've cultivated in Argentina for Belararox Limited. Our success and momentum couldn't come at a more opportune moment, as global industry leaders actively seek out projects, joint ventures, or partnerships to uncover world-class porphyry systems—the very geological treasure our project area is renowned for, as evidenced by investments from giants like BHP, Barrick Gold Corporation, Lundin Mining Corporation, Teck Resources Limited, and Fortescue in San Juan.

Team

Our team, spearheaded by Jason Ward, Arturo Guardiola García, and advised by Steve Garwin, represents the epitome of excellence in the industry. At the forefront of our operations is Yanina Ejarque, a geologist and environmentalist who embodies dedication from initiation to completion of every task. Yanina's remarkable leadership is evident in her management of a workforce of around 20 individuals in remote locations. From initiating site access to establishing main and temporary camps, she ensures seamless execution of fieldwork across five prime targets. What's truly commendable is the smooth and professional manner in which these tasks are accomplished, with safety as our top priority. Furthermore, the expertise brought by some of our geologists, who were part of Jason's team during the discovery of Cascabel, adds immense value to our endeavors. With their invaluable experience and Yanina's exceptional leadership, our team stands ready to capitalize on promising opportunities and deliver outstanding results.

Mood in Argentina

The atmosphere surrounding the Argentine government is one of optimism and enthusiasm. During my multiple discussions with government officials and ministers in San Juan, Mendoza, and Buenos Aires, it's evident that there's a concerted effort to revitalize the mining sector. With the government deficit reaching its lowest point in recent memory and a significant reduction in the printing of new money, coupled with discussions of potential tax incentives for investors, the outlook for our investment in Argentina is exceptionally promising. Having had the privilege of firsthand insights from those actively shaping key policies, I can confidently say that Argentina's mining industry is on an upward trajectory. This presents a remarkable opportunity for strategic investment, and our position in Argentina is poised to benefit from these favorable conditions.

Copper price

The copper market is on an impressive upswing, recently surpassing US$10,000 per metric ton. Analysts are now projecting a potential price range between US$12,000 and US$20,000 per metric ton in the near future. This positive outlook is reinforced by significant developments among major industry players such as BHP, Teck, Lundin, Barrick, FMG, and Hancock. BHP, in particular, is actively pursuing acquisitions in the copper sector, while Hancock has committed US$120 million to an Ecuadorian project. In San Juan, there are plans for the development of five large porphyry mines, including Josemaria alone with a budget of USD 4 billion. Each of these projects is expected to utilize up to 25 rigs to accelerate resource and reserve definitions. These rigs will operate year-round, with provisions made to winterize them for continuous activity throughout the year. Given these promising market dynamics and the increasing demand for copper across diverse industries, our investment in copper-related ventures is positioned to yield substantial returns.

Next season?

During the upcoming season we are set to commence drilling operations. Throughout the winter months, our team will be fully engaged in finalizing the interpretation of our extensive field data. This rigorous analysis will culminate in a series of announcements, detailing our drilling plan along with priority rankings. Having already identified porphyry signatures on our tenements, our current work will further refine and corroborate these findings. When we proceed with drilling, we anticipate gaining insights into the presence of economically viable minerals, potentially similar to those found in neighboring areas. This represents a significant step forward in our exploration efforts and holds the promise of uncovering valuable resources.

New projects

We are diligently exploring various opportunities presented to us, particularly in the realm of copper projects. Certain provinces in Argentina, which were previously perceived as anti-mining, are now undergoing regulatory reorganization to transition into pro-mining jurisdictions. This strategic shift aims to align them with highly sought-after provinces like San Juan, where our operations are already underway. Encouraged by provincial governments, we are evaluating projects in these regions. As part of our commitment to good governance, we rigorously assess these opportunities against our well-established benchmarks. This ensures that we maintain our standards and pursue ventures that align with our strategic objectives.

Argentinian investment in projects?

Historically, high-net-worth individuals in Argentina have not heavily invested in the mining sector. However, there's a noticeable shift, exemplified by Eduardo Elsztain's group investing in Challenger Gold. This signifies a positive trend for Argentina's mining sector, as local wealth is increasingly directed towards critical metal development opportunities in the country.

Announcements

We're on the brink of making several significant announcements as we finalise the analysis of data gathered from five pivotal projects at TMT. This process will culminate in the unveiling of drilling targets, comprehensive planning, and execution strategies.

Stay tuned for these exciting developments!

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