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12 11 5 4 Project Showcase: KM60

Prospect Generators

Exploration News

No.24 / March 2015 www.cexr.cl

Plans to create a Chilean bourse for exploration firms are finally taking off

New ventures

Q&A: Revelo Resources

T wo Canadian juniors – Chilean Metals (CVE: CMX) and Puma Exploration (TSXV: PUM) – have become the first to list their

shares in Chile under the Santiago Stock Exchange’s plan to create a new venture market to finance mineral exploration projects. The project, which has been several years in development, seeks to close the glaring gap between the country’s gigan-tic mining industry, which produces al-most a third of the world’s copper, and Santiago’s dynamic capital market. Despite the potential synergies, the two rarely intersect. Just three Chilean mining companies are listed on the Santiago Stock Exchange – iron and steel group CAP, nitrates producer SQM, and mid-tier copper producer Pucobre. As a re-sult, Chilean investors have limited op-portunities to invest in their country’s leading sector. Chile’s banking sector has only limited exposure to the industry, finding safer returns in retail and corporate banking. Nor is mining a key activity for Chile’s business elite. Apart from the Luksic fam-ily, who controls around 65% of copper producer Antofagasta plc (LON: ANTO), few of the country’s largest fortunes have significant stakes in the industry, which is instead dominated by multina-tionals, like BHP Billiton (LON: BLT) and

Glencore (LON: GLEN), and state-owned copper giant Codelco. Creating a local market for funding min-eral exploration has long been viewed as the first step to creating tighter links be-tween these two key sectors of the econ-omy, requiring only limited amounts of capital while offering investors potential-ly massive rates of return. “The aim,” says Nicolas Almazán, the ex-change’s head of planning and develop-ment, “is to create and strengthen a bond between mining and the local capi-tal market.”

© 2015 Chile Explore Report All Rights Reserved

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Just three Chilean mining companies are listed on the Santiago Stock Exchange.

“The aim is to create and strengthen a bond between mining and

the local capital market”.

Nicolas Almazán, Santiago Stock

Exchange

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BOOSTING EXPLORATION The project also seeks to boost Chile’s exploration sector is seen as underdevel-oped, with juniors accounting for just 20% of exploration spending in the coun-try last year, compared with 50%-60% globally. Local investors have already had a taste of mineral exploration through the gov-ernment’s Fenix program. Launched in 2011, the project offered six selected investment funds a total of US$90M in non-recourse loans to co-invest with pri-vate investors in exploration projects in Chile. The creation of the Mining Commission, responsible for drawing up a Chilean code of estimating mineral resources and reserve and certifying Qualified Per-sons, was another key step. But the first steps to creating a public market in exploration shares happened last March with the signing of Memoran-dum of Understanding between the San-tiago bourse and the Toronto Venture Exchange which would permit compa-nies listed in Canada to cross-list in Chile. This has been complimented by a deal between local securities regulator SVS and Canadian counterparts by which Ca-nadian firms listing in Chile will not be subject to further obligations from the Chilean authorities. Rule No 264 emitted by SVS last year allows companies already registered in

Canada, as well as Colombia, Mexico and Peru, to list without prior registration in Chile. Equally important was a ruling by the country’s Central Bank permitting for-eign companies to list their shares in Chilean Pesos. FAST, EASY AND CHEAP The result of these successive regulatory changes has been to greatly simplify the process and reduce the cost of listing a TSXV company in Chile. According to Rodrigo Cordova, a Chilean lawyer based in Montreal, who handled the listings of CMX and PUM, the whole process can take just two weeks and cost a few thousand dollars. “There were many developments last year and now the market starting to move”, he says.

Last month, U308 Corp (TSX: UWE), a uranium explorer listed on Toronto’s senior board, became the first Canadian mining firm to list in Santiago. Cordova says he is now talking to sever-al Canadian firms about the possibility of a Chilean cross-listing. With minimal costs and no additional obligations, it should be a no-brainer. As well as Chile’s own liquid financial market, a firm listing on the Santiago bourse can also tap investors in Colom-bia, Peru and Mexico, thanks to the Inte-grated Latin American Market (known as MILA, from its initials in Spanish), a pro-ject to integrate capital markets of all four countries. Nor should the cross-listing opportunity be limited to the mining sphere. The pro-gram is open to TSXV-listed companies in any sector, and to other types of securi-ty, including exchange-traded funds. “This is a big opportunity for Canadian issuers to list in Chile and potentially ac-cess liquidity”, Cordova says. NEW INVESTORS For CMX, the attraction is the potential to attract new investors to fund explora-tion of its promising projects in Chile. Previously named International PBX Ven-tures, CMX changed its name after sell-

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No.24 / March 2015

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Projects owned by Chilean Metals

“This is a big opportunity for

Canadian issuers to list in Chile and potentially

access liquidity”. Rodrigo Cordova,

CCI Capital

Terry Lynch, CEO of Chilean Metals

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ing its Copaquire copper project in Re-gion I to Teck (TSX: TCK) in 2013, for US$3M plus a 3% NSR. CMX is now fo-cused on a portfolio of six properties, covering 50,000h in northern Chile, in-cluding its Zulema project, close to Lundin Mining’s (TSX: LUN) Candelaria mine in Region III. Lynch says the team became excited by Zulema after a geophysical survey tar-geting a nearby property highlighted its potential. After two years of fieldwork, building the geological model and ex-panding the property (see page 13), the project is almost ready for drill-testing, possibly as soon as 2Q15. With Canadian markets still sluggish, Lynch hopes the listing in Chile could prove a new source of financing from local investors interested in participating in exploration projects. The first task is to add a Chilean director to the board to help build networks and then appoint an investment firm or stockbroker to act as market maker. Lynch plans to begin meeting potential investors on his next visit to CMXs prop-erties in Chile. “We are not expecting miracles over-night but it opens up a pathway”, he says. For PUM, the listing in Chile offers not just a potential source of financing but

also a chance to raise its profile in one of the world’s leading mining industries. INCREASED PROFILE The firm is developing a series of base metals projects in eastern Canada, which have numerous similarities to deposits commonly found in Chile. PUMs most advanced are the Nicholas-Denys and Turgeon projects in New Brunswick. More than 20,000m of drilling has been carried out at each site, intersecting high grades of copper, zinc and molybdenum. Moreover, the properties are located close to Glencore’s (LON: GLEN) Bathurst zinc smelter and the adjacent deep sea-port. “You couldn’t get better infrastructure”, says chairman Arness Cordick. By listing its shares in Santiago, PUM aims to make contact with mining com-panies operating in Chile looking for op-portunities in another premier mining jurisdiction. Alternatively, it could bring PUM into contact with owners of inter-esting properties in Chile which they are looking to joint venture. With three companies on the board, Santiago’s exploration bourse is finally taking shape. Now it just needs inves-tors. CER

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No.24 / March 2015

Puma Exploration is developing a number of base metals projects in eastern Canada.

Chile Explore Report is a monthly newsletter, providing independent and authoritative

coverage of Chile’s mineral exploration sector.

For information about subscriptions, please contact: Nereidina González Email: [email protected]

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“We are not expecting miracles

overnight, but it opens up a pathway.”

Terry Lynch, Chilean Metals

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Project Showcase

Project: Kilometro 60 Recent green fields discovery advancing to scout drilling stage; prospecting resulted in vein system discovery with up to 3kg/t Ag and over 10% Pb.

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The current reform proposal could push smaller players out of business and lead to even greater concentration.

No.24 / March 2015

I n a 300 hectare area, located approximately 130km east north-east of Antofagasta, 57km east from Baquedano, SQM’s gener-ative exploration team discovered structurally controlled vein mineralization comprising cloragarite + anglesite (an oxidized

silver-lead association). To date four veins have been identified. The occurrence of this mineralization falls in the regional Paleo-cene / Oligocene metallogenic trends defined by well-known porphyry copper deposits, such as Chuquicamata, Spence, Esperan-za, Encuentro and Lomas Bayas, as well as precious metals minerali-zation including El Inca (Ag), Faride (Au), and Caracoles (Ag). Follow-up geological work to the initial discovery includes a 20 me-tre by 20 metre grid sampling of rock chips, trenching partially trac-ing out the 4 identified veins to the edge of cover, 924 metres of short hole reverse circulation drilling confirming the veins and oxi-dation extend to at least 30 metres to 40 metres depth. Lithology: Paleocene rhyolite to dacite and andesite flows and ig-nimbrites intruded by late Paleocene dacitic and dioritic to monzo-dioritic subvolcánic porphyries. Colluvial and alluvial material cover is approximately 40%. Alteration: Argillic alteration comprising kaolinite-sericite-quartz and alunite (supergene). Structure: The mineralized structural trend is approximately north-west within a regional north-east deflection of the Domeyko Fault system. The observed vein system is open in all directions.

Contact: [email protected]

Daniel Jimenez Senior VP of Exploration [email protected] +56998223038

Darryl D. Lindsay, PhD, PGeo Manager Metal Business Development [email protected] +56966488511

Tomas Esguep Metal Business Development Engineer [email protected] +56966373482

Central Northing (UTM): 7405000 Central Easting (UTM): 470500 Elevation (masl): 2120 Metal(s): Ag-Pb Deposit Style: Epithermal linked to Porphyry Exploration Stage: Advanced Exploration Area (hectares): 296 Nearest Project: Lomas Bayas

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A mid a dearth of financing for mineral exploration, a growing number of mining juniors are adopting a new business model,

which aims to reduce costs, mitigate risk and ensure the company’s long-term sus-tainability. While the traditional junior firm concen-trates on one or a handful of projects and tries to advance it as far as down the path to development as they can, pro-spect generators manage large portfolios of prospective land to identify multiple targets for which then it seek potential partners to finance exploration. Finding partners from early in the explo-ration process significantly reduces the amount the firm has to invest in each project, says Lawrence Winter, VP Explo-ration at Altius Minerals (TSX: ALS), one of the firms which pioneered the busi-ness model in the 1990s. Out of sixty four projects advanced to a joint venture in the last seventeen years, ALS has only drill-tested three before attracting a partner. Instead, the firm sticks to low-cost exploration techniques such as satellite imagery interpretation, geophysical and geochemical surveys, prospecting, and mapping alteration to identify interesting ground and generate drill targets. Some of ALSs biggest discov-eries have been made through desktop analysis of historical databases. As a result, expenditure on each target is normally in the hundreds of thousands of dollars or less rather than tens of mil-lions. By bringing in partners to finance all but the very earliest stages of exploration, the prospect generator can advance a much larger number of targets than a junior working on a few properties of its own. Creating exposure to a large number of potential targets, the firm significantly increases its chances of participating in one of the tiny proportion of projects that make it all the way to production. “We would much rather end up with 25% of a major discovery than have 100% of a project that we cannot finance”, says Tim

Beale, CEO of Revelo Resources (TSXV: RVL), a new firm which has adopted a similar approach for its properties in Chile. As well as identifying good ground, pro-spect generation also requires finding the right partner for each property. This means not only a firm with the financial resources to fund the required explora-tion work but also with the technical skills to realize its potential and bring

into production. This could be a major mining company, a mid-tier, a junior or a private equity firm. “It’s not always the biggest financial commitments, but who is the best over-all partner for each project”, says Winter. In Canada, ALS has done several deals with Chinese state-owned enterprises, which can provide not only the financial muscle to develop a project but also pro-vide offtake once a mine is in production. Or projects can be spun out into a new company although this exit depends on assembling the right management team and raising sufficient funds, Winter adds. While most junior companies rarely last more than five years, often going broke or being acquired before then, prospect generators seek to turn exploration into a sustainable business, which can contin-ue growing for decades. Agreements signed with partners often grant some combination of a minority equity stake and a royalty should any project enter production, giving the firm a source of revenue to continue financing

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Spreading the risk Prospect generation, a streamline business model for exploration firms, is gaining converts.

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“We would much rather end up with 25% of a major discovery than

have 100% of a project that we cannot

finance”. Tim Beale, Revelo Re-

sources

No.24 / March 2015

Prospect generators manage large portfolios to identify multiple targets.

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its grassroots exploration programs. As it can take a decade or more to see a prospect develop through exploration and development into an operating mine, prospect generation is necessarily a long-term business, says Winter. Al-most two decades’ old, ALS may soon see royalty revenue from projects which it has developed over the years. This is the case with Alderon Iron Ore Corp’s (TSX: ADV) Kami mine in Labrador, Canada, a project generated by ALS which earned the support of China’s largest steel pro-ducer, Hebei Iron & Steel (state-owned). The crash in iron ore prices has slowed financing, though the fully-permitted project is set to commence construction once the funds are in place. In the meantime, ALS has plowed funds earned from grassroots exploration into acquiring 12 existing royalties which in turn have become a key source of reve-nue to finance further exploration and royalty purchases. ALS now sees its peers as other royalty firms such as Franco-Nevada (TSX: FNV), Royal Gold (Nasdaq: RGLD) and, most recently, Osisko Gold Royalties (TSX: OR), which was spun out of the takeover of Osisko Mining by Agnico Eagle Mines and Yamana Gold last year. But while they largely specialize in precious metals, ALS sees a niche in base metals and bulk commodities royalties. After growing largely in its home terrain of eastern Canada into a US$400M com-

pany, ALS began looking for new fron-tiers to apply its business model. Chile was always a likely candidate. “We were tired of majors who looked at our copper projects in eastern Canada telling us ‘if this was in Chile, we would

be doing a deal’”, explains Winter. Exploration projects considered higher risk elsewhere become more attractive in Chile because of the wealth of mining infrastructure and synergies with existing operations. When ALS was approached in 2012 by Santiago fund manager Zeus Capital, which had just secured US$14M to invest mineral exploration under the govern-ment’s Fenix program, it jumped at the chance to form an alliance with local mining entrepreneurs with invaluable

knowledge about the Chilean mining in-dustry. The two firms formed Prospex SpA to apply ALSs model to Chile. To date the company has so far invested around US$3.9M, according to Chile’s economic development agency CORFO. Prospex SpA’s most advanced asset is the Morsas project in Region III, which covers a large area of gravel-covered claims to the east of the Pan-American Highway between Lundin Mining’s (TSX: LUN) Can-delaria mine and CAP’s Los Colorados iron ore operation. After geological map-ping, the firm has confirmed alteration styles and mineralization typically associ-ated with iron-copper-gold deposits. But it is far from ALSs only project in Chile. The firm currently controls around 130,000h of ground and has identified sixteen projects that are almost ready for drill-testing. “Now we have built a meaningful land position, done the reconnaissance and assembled the data, we will start mar-keting these projects to potential part-ners,” says Winter. SEEKING PARTNERS ALS is not the only company following the prospect generation model in Chile. Mirasol Resources (TSX: MRZ) has built up a large portfolio in Region III. While First Quantum Minerals (TSX: FQM) is already exploring MRZs Rubi property, near Salvador, MRZ is seeking partners for its Gorbea belt, which it believes is the northern extension of the Maricunga Au belt. Revelo Resources (TSXV: RVL), formed through the recent merger of Iron Creek Capital and Polar Star Mining, controls around 300,000h of mining tenure throughout northern Chile and already has JV agreements with BHP Billiton (LON: BLT), Newmont Mining (NYSE: NEM), and Kinross Gold (TSX: K). NEM recently earned a 51% stake in RVLs Montezuma copper property in Region II by completing US$2.5M of exploration work within the required timeframe. (For more details see our interview with RVL CEO Tim Beale on page 11 and explora-tion news on page 12). One of the latest to adopt the model is Arena Minerals (TSXV: AN). Through an

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We were tired of majors who looked at

our copper projects telling us ‘if this was in Chile, we would be do-

ing a deal.’” Lawrence Winter, Altius

Minerals

No.24 / March 2015

Revelo Resources’ Montezuma copper property in Region II.

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option agreement with nitrates producer SQM (NYSE: SQM), which controls Chile’s largest land package, AN can earn an 80% stake in the 149,500h (reduced down from an initial 300,000h) Atacama property. Located between some of Chile’s largest copper mines, the proper-ty has been largely unexplored for metal-lic deposits (SQMs interest being largely confined to the caliche cover). By compil-ing data, including drill results provided by SQM, and some fieldwork, AN has identified 9 targets (eight copper porphy-ries and one gold-silver epithermal). “Each one has very high potential for be-ing a massive discovery”, says AN CEO William Randall. Although the prospect generation model normally involves ownership of the un-derlying property, AN is now marketing its unique deal with SQM to third parties. In February, B2Gold (TSX: BTO) signed an option to acquire up to 60% of two prop-erties (Pampa Paciencia and Cerro Bar-co), which cover around 20% of Atacama, by spending over US$20M on exploration over the next five years. BTO will also pay US$630,000 to SQM and US$2.5M to AN. In the current depressed market for min-eral exploration, the prospect generation model is an attractive one for cash-strapped juniors. Raising sufficient funds to drill all targets would have implied punitive dilution for ANs shareholders,

notes Randall. Hence the decision to seek more wealthy partners. RISK-AVERSE Risk-averse investors have also warmed to a model that offers long-term returns when many exploration firms are strug-gling to survive. ALSs share price has re-mained relatively stable from the peak of the commodities boom while the market value of most mining companies has plummeted, notes Nik Rasskazovskiy, who monitors ALS for Salman Partners. But while prospect generation can be an attractive model in the downturn, staying the path when the markets turn hot takes discipline. If cash is available and the prospect looks promising, the temp-tation is to advance the project alone and potentially score a much bigger prize rather than cede a majority stake. “When the market comes back and we’re at the top of the cycle, newcomer inves-tors and junior start-ups won’t care about the long term, they will be looking for the next hole which will give them their ten bagger”, notes Winter. For exploration geologists, handing over their favorite prospect to a third party, which could take the gold and the glory for a major find, can be a psychological wrench, says Rasskazovskiy. And once a firm strays from the model, it can be very difficult to get back. But for now, with money tight and sur-vival the main concern, the prospect gen-eration model is winning converts. CER

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Revelo Resources controls around 300,000h of mining tenure in northern Chile.

Arena’s Atacama project, located between some of Chile’s largest copper mines.

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“When the market co-mes back, investors

won’t care about the long term, they will be looking for the next ho-le which will give them

their ten bagger”. Lawrence Winter, Altius

Minerals

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M ost exploration and devel-opment projects today are faced with, or are halted by, social and community

problems. Lawsuits that challenge per-mits issued by the State, as in Chile, or the increasing social mobilizations against projects in Peru, Colombia and Argentina, among others, can present significant challenges at all stages of ex-ploration and development. Social risk presents a particular challenge for exploration companies with limited resources and the need to deliver posi-tive news to the market. Simply throw-ing money at a community is not a solu-tion; a number of companies are realiz-ing that they create more problems than they solved when they take that ap-proach. Rather than resolving issues, it delays them and tends to create larger conflicts later in a project’s life by en-trenching the practice of making de-mands on companies for financial com-pensation, or generating dependency on apparently ‘easy’ sources of funding. What then is effective in addressing com-munity expectations and good practice for exploration and development compa-nies? The critical social challenges in-clude having a counterpart organization that is strong and operates legally, for-mally and according to established pro-cedures, and developing transparency as a principal of the relationship. Properly managing these issues leads to better agreements and stronger relationships

over time, especially in countries with weak institutions and low levels of credi-bility, such as Peru. In Chile or other

countries with stronger institutions, the-se same actions demonstrate respect and build confidence in the company. How does a company ensure that it is helping create a stronger institution? First, work within the parameters of legal rights and obligations and the institution-al structure of the communities them-selves. For example, in Peru, the Envi-ronmental Impact Declaration (EID) is required prior to drilling and it establish-es the area of direct influence of the pro-ject. The EID provides a legal framework for the discussions and information dis-closure with local communities and helps

Building stronger relationships during Exploration By Susan Joyce, President, On Common Ground Consultants Inc.* and William Grosso, Community Relations Manager, Lundin Peru.

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Use the mechanisms that exist in the commu-nity to support the cre-dibility of the communi-ty’s leadership and deci-

sion-making process.

No.24 / March 2015

Social risk presents a particular challenge for exploration companies with limited resources and the need to deliver positive news to the market.

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to reinforce the legitimacy and responsi-bility of the exploration or development company. As many communities will not be familiar with the environmental or mining sector legal requirements, pre-paring them in advance with information sessions or even a technical advisor, sup-ports them to play their role effectively and to understand and develop more confidence in the system than they had prior to EID workshops. Second, use the mechanisms that exist in the community to support the credibility of the community’s leadership and deci-sion-making process. This is very differ-ent from supporting a specific person in authority, which is often done by ensur-ing that that leader benefits personally from the company’s presence. Instead, we are talking about the institution of community authority, with the rights and obligations that go with it. Because a strong counterpart for strong-er agreements is best, think about how your presence and your interaction with community authorities can strengthen the institution you are dealing with; it’s all too common for deal-making to un-dermine the legitimacy of a leader and create divisiveness and suspicions within the community. Establishing a transparent and equitable procedure for local employment is a good example because, if done poorly, it can lead to increased social conflicts, jealousy and even the overthrow of lo-

cal/community leaders, which is very counterproductive for the effort to build relationships. The table below lays out a few of these risks and how to address them: Work with the procedures that they (local communities, municipal mayors, etc.) use to maintain the integrity of their authority in order to keep them in line and accountable. For example, a peasant community (Comunidad Campesina) in Peru has a president as well as a ‘Junta Directiva’ (Board of Directors) and deci-sions are made with the participation of active members of the community voting on them. Rarely is a decision legitimate if it is not supported by a vote in General Assembly. Basic processes include always meeting with multiple authorities pre-sent; go beyond that to have the Junta Directiva compile, vet and then approve in Assembly (with the company’s pres-ence) the lists of all community members eligible for participation in rotational em-ployment and how access to it will be distributed. In summary, some key points for working with local communities in a way that sup-ports their organizational capacity, in-clude:

1. Knowing how the community works and whether or not the authorities are respected and accepted by community members. 2. Understanding the governance and procedures of the community’s leader-ship. 3. Getting informed about previous con-flicts or problems they have had, so that you don’t repeat past mistakes. 4. Understanding and basing your initial work on the legal rights of both parties. 5. Fulfilling your legal obligations scrupu-lously if you expect community authori-ties to trust you, and work with their for-mal structure and processes. A very useful tool was developed with support from the PDAC and other organi-zations called “Preventing Conflict in Ex-ploration”. www.cdacollaborative.org/publications/search/?q=preventing+conflict+in+exploration&ds_st_all=on#.VDxjxlZBhwQ *On Common Ground Consultations spe-cializes in social issues and their manage-ment for resource companies in the Americas.

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Issue Risk to Project Opportunity Community leaders get friends and family hired preferentially for rotational employ-ment.

Unequal access to job opportunities leads to conflict within the com-munity and undermines those leaders with whom you build the relationship

Work with community au-thorities to develop lists of all qualified for employment; affirm the list in General As-sembly and publish; establish a rotation schedule and make information available to all.

Landowning communi-ty expects that only their community mem-bers will benefit from employment opportu-nities

As employment needs grow with the project, conflict arises if jobs are given to people from outside the community.

Establish early on that there are various affected commu-nities, that the company has policies to extend local em-ployment to them, and that employment decisions re-main in hands of the compa-ny

Meetings are held pri-vately with some com-munity leaders to make agreements or discuss problems; done for expediency or because those leaders seen as supportive

Credibility of the lead-ers is questioned when others are not aware of agreements made; sus-picions of payoffs or personal gain under-mine the leader, even when not true.

Ensure that meetings are held at scheduled times and with advance notice, to en-sure that other community members and the Board of Directors are present and participate in discussions and decisions.

No.24 / March 2015

http://www.cdacollaborative.org/publications/search/?q=preventing+conflict+in+exploration&ds_st_all=on#.VDxjxlZBhwQ




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C hile’s Commission for Qualifying Competencies in Mineral Re-sources and Reserves is prepar-ing a new Code of Certification

(CH 20.325) for March this year. Now in its final stages, the update seeks to ho-mologize the assessment, categorization and evaluation of mineral resources in Chile with international standards. Work on the new Code took more than a year followed by a 45-day consultation period during which Qualified Persons recognized by the commission could pre-sent their comments, some of which in-corporated into the final document by the editing committee. The code is now being translated into English so it can be sent to Committee for Mineral Reserves International Reporting Standards (CRIRSCO, of which Chile is the only member in Latin America) for revision and comment. Once these steps are completed, the fi-nal version of the document will be ready for publication and diffusion, a process which will be led by the commission’s chairman Juan Pablo Gonzalez. This latest update of the Resources and Reserves code aims to standardize and clarify some terms in line with those used in codes in other countries with which Chile has signed reciprocity agree-ments. “We want to have very similar codes with equivalent terms and definitions on cer-tain issues, which are simple but pre-cise”, explains Gonzalez. INTERNATIONAL RECOGNITIION Already recognized through reciprocity agreements by counterparts in Canada, the US, the European Union and Russia, the Mining Commission has now a seal of approval from Australia’s JORC Com-mittee, implying that it will be also recog-nized by the Australian Securities and Investment Commission (ASIC), the body responsible for regulating capital markets in that country. The agreement represents a new oppor-tunity for professionals qualified by the Chilean commission as they will now be

able to sign reports in other countries under Australia’s JORC standard. Gonza-lez predicts increased demand for Chile-an QPs abroad. Since the promulgation of Law No 20,235 (2007), which created it, the Mining Commission is the body responsible for administrating Chile’s Public Register of Persons Qualified in Mineral Resources and Reserves as well as managing the

code. It also provides technical assistance to regulatory agencies, revises reports produced by Qualified Persons, publishes special criteria and standards for QP re-ports, establishes best practices, carries out studies on the certification of mineral prospects, resources and reserves, and provides training to Chile’s QPs. COMMISSION NAMES 39 NEW QPS In a ceremony in Santiago in January, the Commission for Qualifying Competencies in Mineral Resources and Reserves rec-ognized 39 new QPs certified during 2014. As QPs, they are now qualified to sign and emit technical reports on explo-ration projects and mineral resources and reserves used in public offerings, in the closure of mining projects, by the Fenix Funds, in IFRS-compliant corporate accounts and for some companies’ inter-nal reports. To date, the commission has recognized 274 professionals by QPs, of whom half are mine engineers, 40% are geologists, and 4% metallurgists. CER

Mining Commission prepares new code The updated code will be ready in March; Chile recognized by Australia

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“We want to have very similar codes with equi-valent terms and defini-tions on certain issues, which are simple but

precise” Juan Pablo Gonzalez, Mining Commission

No.24 / March 2015

The new code seeks to homologize the assessment, categorization and evaluation of mineral resources in Chile with international standards.

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Interview

Formed through the merger of Iron Creek Capital and Polar Star Mining, RVL is looking for partners to explore its 300,000h portfolio. CER: What was the thinking behind merger? TB: We were thinking about what we could do to become a more sustainable business and succeed. Being a small jun-ior in a tough market is not a very sus-tainable way of going about business. Our business was focused on early stage exploration projects and it was practical-ly impossible to raise money to drill test. We decided that what was important was to control very prospective ground and build a larger land portfolio. One of the strategies for growth was mergers and we were looking around for other companies that were perhaps struggling and that had an interesting property portfolio that we might be able to ac-quire or merge with. CER: Why Polar Star? TB: Polar Star had been on our radar for some time but the valuations were out of kilter until last summer. We made an approach with respect to a possible mer-ger and they liked what we were talking about and we were able to negotiate a friendly merger which closed in mid-December. CER: The merger has put you in a much stronger position? TB: The new company Revelo Resources controls 300,000h of highly prospective ground. They are wholly owned tene-ments so there are no underlying agree-ments. There are some royalties but in the case of discovery most at least are partly purchasable. We already have ac-tive joint ventures with three major cor-porations. CER: Does that mean you are adopting the prospect generator model? TB: That term is bandied around quite a lot. We are not saying that we will never ever put a drill hole into the ground. We will always employ the most appropriate exploration techniques given the circum-stances. But it is not our intention to

take projects through to feasibility. We want to bring in partners to de-risk the exploration process and reduce the ex-posure to any failures. What we are try-ing to do is employ capital effectively so that we can extend our treasury as long as possible and provide shareholders with multiple opportunities for explora-tion success. We would much rather end up with 25% of a major discovery than have 100% of a project that we cannot finance. CER: Tell us about those JV agreements. TB: We have one with Kinross Gold (TSX: K) at our Las Pampas property, which is a 50,000h property principally prospective for gold and silver – mostly high grade gold silver veins of the El Peñon type. K is actively working there. There is another with Newmont Mining (NYSE: NEM) at the Montezuma project, which covers around 45,000h between Codelco´s giant Chuquicamata copper mine and the Es-peranza-Tesoro mining district owned by Antofagasta Minerals (LON: ANTO). And we have an agreement with BHP Billiton (LON: BLT), which covers three separate blocks of ground, one to the north of the giant Escondida copper mining district and two more between Escondida and the Salvador mining district. BLT is ac-tively exploring those three blocks. CER: And now you are looking for part-ners for the other projects. TB: Yes, we have sixteen in total, five are already jointed ventured so we are ac-

tively looking for partners to joint ven-ture the remaining 11 projects. CER: How is that going? TB: Well, this is still a tough market in many ways. Companies have had explo-ration budgets cut. But the majors are focusing on stable jurisdictions like Chile, particularly on copper but also on gold and silver. Obviously our projects have to rank well compared to what they al-ready have in their portfolio but we have a good chance of doing that. Nothing has been signed other than confidentiality agreements but we are talking to several firms about a number of different prop-erties. CER: Tell us about the properties you have on offer. TB: We have a series of copper-focused projects that are located along the prin-ciple copper belts in northern Chile. For example, Reina Hija is located in Region I, E of Iquique, in a copper district where a number of majors are exploring. The Calvario-Mirador prospects in Region IV, NE of La Serena, are home to very large hydrothermal alteration zones where some historic drilling has been done and we have identified some very compelling new copper targets. Another is San Val-entino, just to the N of Santiago, a com-pelling Cu target which has never been drilled. Information about all our pro-jects can be found on our website (www.reveloresources.com). CER: Thank you

www.cexr.cl


Tim Beale, President & CEO REVELO RESOURCES CORP (TSX-V: RVL)

No.24 / March 2015

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Exploration News

Los Andes Copper (TSXV: LA) Plans to carry out a 5,000m diamond drill campaign at its Viz-cachitas Cu-Mo Project in Region V as part of an annual ex-penditure program of approximately US$2.3M. The holes will test high-grade extensions of known mineralization within the core San Jose claim, which was last drilled in the 1990s by Plac-er Dome and General Minerals Corp. The new drilling and some historical pulp samples will be assayed for Ag after the 2014 PEA identified its presence in metallurgical samples. LA will also investigate a 17% negative bias in Mo assays and if proved, historical pulp sample will be re-assayed. The results from both processes and the new drill campaign will be includ-ed in an updated resource estimate which will form part of a new PEA for the project, involving a smaller initial phase of 40-50,000tpd, a reduced river diversion tunnel and the planned hydroelectric plant at the site, with the aim of reducing capital costs. “This revised mine plan will prioritize the higher grade supergene material in the early years and delay the main pushback until the initial capital investment is paid back”, LA said.

Newmont Mining (NYSE: NEM) Has earned a 51% stake at Revelo Resources’ (TSXV: RVL) Mon-tezuma Cu property in Region II, by spending in excess of the US$2.5M required under the JV agreement signed in January 2014. NEM is now proceeding with Phase 2 during which NEM must spend a further US$5.5M over 2.5 years to earn an addi-tional 14%. NEM spent US$2.7M last year at Montezuma, which covers 44,000h 20km S of Calama between the Chu-quicamata and Centinela mining districts. NEM is exploring for Cu-Au-Mo porphyry deposits and related mineralization using historical datasets with geological mapping and proprietary deep penetrating technologies. NEM is now advancing to drill test several Cu-Au targets which are largely obscured by post-mineral gravels and mudflow deposits along the West Fissure Fault and associated fault splays that extend S from Chuquica-mata.

Mandalay Resources (TSX: MND) Has replaced proven and probable reserves depleted in mining during 2015 through infill drilling of extensions of the Coyita and Yasna veins in late 2014. MND drilled approximately 27,848m of diamond core, costing US$3.46M, during 2014 in the Coyita, Yasna, Fabiola, Irene, Kasia, Esperanza, Cristal and Cerro Amarillo veins, as well as mapping and closely spaced sampling along 4,954m of development drives in the Dagny, Dalila, Fabiola, Yasna, and Delia NW veins, 3,354 m of which were in mineralization. The work allowed Indicated and In-ferred mineral resources to be upgraded to Measured re-sources, and subsequently Proven mineral reserves. Measured and Indicated Resources now stand at 1.995Mt @ 3.18g/t Au & 322g/t Ag. “Cerro Bayo, initially acquired in 2010 and re-started with a nominal mine life of three years based on Prov-en and Probable Reserves at the time, replaced 2014 depletion and now has a nominal life of approximately six years after four years of production”, said CEO Brad Mills. “Neither (Coyita nor Yasna) are completely drilled out and we expect further additions to Mineral Reserves as we continue extending our closely spaced drilling in these veins”, he added. At Challacollo in Region I, MND completed 9,153m of core drilling over 52 holes, at a cost US$2.03M. The drilling was designed to infill and extend mineral resources previously identified in the Lolon vein, while 13 holes tested new vein targets. The work allowed MND to upgrade approximately 22Moz Ag at Lolon from In-ferred to Indicated status, increasing the Indicated resource to 4.7Mt @ 0.32g/t Au & 200g/t Au. “There remains approxi-mately 7Moz Ag in the Inferred Mineral Resource along the Lolon that potentially can be upgraded, as well as additional exploration targets with existing mineralized intercepts which can be followed up in the future”, Mills noted.

Barrick Gold (TSSX: ABX) Is to focus exploration during 2015 on brownfield projects, which will suck up two-thirds of its exploration budget of US$220-260M, with the remainder targeting emerging discov-ers that have the potential to become profitable mine. Around 50% will be spent in the US state of Nevada.

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No.24 / March 2015

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Los Andes Copper’s Vizcachitas Cu-Mo project in Region V

Mandalay completed 9,153m of core drilling at Challacollo

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Exploration News

Herencia Resources (AIM: HER) Is finalizing a maiden Mineral Resource Estimate for the Pica-chos Cu project in Region IV, which it expects to release to market shortly. “The Resource work has taken a bit longer than expected, given the traditional summer holiday season in Chile, but it is now close to completion and on track to be delivered this quarter,” said MD Graeme Sloan. The work has identified two areas immediately adjacent to the 40M Shaft mineraliza-tion that have the potential to add significantly to the near sur-face mineral resource. “These new areas are high up in the ge-ological sequence, therefore close to the surface and im-portantly could potentially replace (in a planned open pit) what was previously considered waste material with ore, thus reduc-ing strip ratios and further enhancing project economics”, not-ed Sloan. “They may not only add to what we are planning for the 40M Pit, but could also enhance what is possible from the remaining areas already identified (Flor del Bosque, La Nipa, Santa Rosa, Rancho 4, La Dura etc)”, he said.

Chilean Metals (TSXV: CMX) Has expanded the footprint of its Zulema Cu project in Region III by over 1,300h in two deals. CMX acquired nine mining con-cessions covering 724h from Compañia Minera Casale, a com-pany jointly owned by Chilean subsidiaries of Barrick Gold (TSX: ABX) and Kinross Gold (TSX: K), for US$50,000. CMX has also signed a letter of intent with two private Chilean individuals for mining concessions covering 600h in the same area. Under the deal, CMX will pay the vendors US$50,000 in cash and issue 600,000 shares. Zulema is located 30km from Lundin Mining’s (TSX: LUN) Candelaria Cu-Au mine and 15km from the Pan-American Highway. During 2015, CMX plans to carry out lim-ited geophysical surveys to define and refine drill targets, fol-lowed by a first-phase drilling program in 2Q or 3Q, subject to financing, said CEO Terry Lynch. “It is an ideal project to ex-plore and develop from a cost perspective. Unlike projects fur-ther east at higher elevation, exploration work can be conduct-ed year-round… With drilling costs at bargain prices we feel that now is the time to push forward on Zulema”, he said.

Lundin Mining (TSX: LUN) Plans to spend US$35M this year exploring targets around its Candelaria Cu-Au mine in Region III which it recently acquired from Freeport-McMoRan (NYSE: FMI) for US$1.852B. Speaking in a conference call, CEO Paul Conibear said LUN plans to main-tain similar levels of exploration spending over the next three years as it tests brownfield targets and underground exten-sions at the site. The program represents more than half of its 2015 exploration budget which it has cut by around 20% to US$60M (excluding work at FMIs Tenke Fungurume Cu-Co mine in the Democratic Republic of Congo), following the re-cent drop in metals prices. The rest will be spent on explora-tion at LUNs existing mines or exploration projects in South America and Eastern Europe. LUN has also launched a five year mine plan optimization at Candelaria, the results of which are expected in 2H15.

Yamana Gold (TSX: YRI) Plans to focus exploration work at its El Peñon Au mine in Re-gion II during 2015 on converting mineral resources to mineral reserves and discovering new mineral deposits, through fo-cused infill drill program at Esmeralda Sur, Laguna, Borde Este, Caracoles, Sorpresa and the Providencia Norte structures. Min-eral resources rose in 2014 to 919,000oz Au and 26.8Moz Ag, up 6% and 11% respectively, contained in 3.7Mt @ 7.83g/t Au and 228g/t Ag, as previously-identified targets were delineated through drilling to verify mineralization. But Au reserves fell 14% to 1.7Moz as higher grade areas were mined while the expected conversion of mineral resources to mineral reserves was not achieved due to the narrower widths in some areas and less drilling being completed in 2014.

Medinah Minerals (OTC PINK: MDMN) Said that Auryn Mining Chile SpA has intercepted high-grade Au mineralization at its Altos de Lipangue property, near Santi-ago. Hole L15-24 intercepted 45m @ 0.78g/t Au from a depth of 3m, including 1m @ 8.34g/t and a 5m zone of disseminated Cu oxide @ 0.25% Cu. “This near surface Au mineralization has not been encountered in previous drilling and provides an ex-citing new target on the Altos de Lipangue property”, said MDMN.

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Picachos Cu project in Region IV.

El Peñon Au mine in Region II.

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Exploration News

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Revelo Resources (TSX: RVL) Has delineated potential for a porphyry Cu system and identi-fied two possible drill targets at its 100%-owned Calvario Cu project in Region IV. The prospect consists of a large hydro-thermal alteration zone measuring 6,000m by 700m and domi-nated by quartz-sericite alteration, displaying characteristics of the upper portions of a porphyry Cu system. Interpretations from recent surface work and historic drilling in 2008-2010 indicate a possible mineralized potassic core at depths of more than 200m from the surface. Drilling by Minera Fuego in 2008 for a secondary enrichment blanket intercepted moderate to weak quartz-sericite alteration with minor Cu oxides as coatings on pyrite and in fractures, and minor chalcocite min-eralization indicating weak secondary enrichment. The fact that no potassic alteration has been observed at Calvario sug-gests that the porphyry system is at an intermediate level of erosion and that a possible mineralized potassic core can be expected to occur at depths at over 200m from the surface and be hypogene in origin.

B2Gold Corp (TSX: BTO) Has signed a binding letter agreement with Arena Minerals (TSXV: AN), granting BTO an option to acquire a 60% interest in the Pampa Paciencia and Cerro Blanco properties. The proper-ties cover 27,341h of ANs 149,235h Atacama property in Re-gion II. Under the deal, BTO will be required to spend a mini-mum of US$20.5M on the property over five years and make payments totaling US$630,000 to SQM (NYSE: SQM), the un-derlying property owner, over three years. BTO will also make payments totaling US$2.5M to AN over three years. The deal will meet all of ANs work commitment for the entire Atacama project through to completion of the option, while covering just 20% of the land position, “giving AN the flexibility to pur-sue further transactions on the remaining 80%”, said ANs CEO William Randall. AN said it is in talks with a number of large mining firms on possible JVs on various properties.

Metallum Ltd (ASX: MNE) Has begun shrink stoping and installed a decline ramp at its San Sebastian mine, part of its El Roble Cu project in Region III. The work has significantly increased the efficiency of the oper-ation, reducing the drill and blast cycle times and providing natural ventilation through the mine. MNE has also been able to introduce a small haulage dump truck into the mine. Full production haulage will begin once the first stoping panel has been drilled and blasted between levels 1030 and 1090. The mine continues to report continuously high grades, with a pro-cessed grade of 4.25% Cu and samples of up to 32% Cu. Mean-while, work to establish a safe explosives dump in the mine has encountered western extensions of the mineralized Viuda vein, “giving further confirmation of the potential of the Viuda vein to contribute to the mining operations at El Roble”.

Capstone Mining Plans to drill 15,000m at its Providencia Cu project in Region II, targeting at least three of the principal Cu porphyry and IOCG prospects at the site. A number of less advanced targets may also be considered for drill tested. CS will also continue geo-physics and geochemistry on Providencia and an adjacent property. CS drilled 7,036m over 25 holes in November and December 2014 after carrying out an airborne magnetic and VTEM survey as well as sampling of soil, rock and stream sedi-ment, and detailed geological mapping. Pole-Dipole Induced Polarization and Vector Induced Polarization surveys and inter-pretation of all data sets are also underway. CS holds an option with SQM (NYSE: SQM) to earn up to 70% in the prospect over 7.5 years. Providencia initially covered 350,000h, but must be reduced to a maximum of 50,000h if a JV is ultimately formed. CS plans to spend US$5.4M on Providencia during 2015.


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Metallum’s El Roble Cu project in Region III. The Calvario Cu project in Region IV, owned by Revelo.

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Exploration News

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Hot Chili (ASX: HCH) Plans to include a Cu oxide operation in its Productora Cu pro-ject in Region III following a scoping study. The study estimat-ed oxide resources at the site at ~25.6Mt @ 0.52% Cu, includ-ing 15.4Mt @ 0.58% Cu within the planned central pit. The operation could produce up to 10,000tpa of Cu over 6-8 years and would cut overall costs as resources were previously con-sidered as pre-strip waste. A PFS underway at Productora, due for delivery this year, will now include the oxide operation in addition to concentrates production of 45-55,000tpa. The scoping study, began last August and carried out by Australian engineering consultants Mintrex, proposes a conventional heap leach processing followed by a SX/EW circuit to produce copper cathode using a second-hand processing plant of which several exist in the zone due to the depletion of available ore. Alternatively, HCH has signed LOIs with state mining develop-ment agency ENAMI and Sociedad de Exploración y Desarrollo Minero SA (EXPLODESA) to toll ore from Productora. Meanwhile, HCH subsidiary Sociedad Minera El Corazon Limit-ada has signed an MoU with Puerto Las Losas SA to study the provision of port services at PPLs Las Losas port facility in Huasco, 40km E of Productora. PPL is a JV between iron ore producer CAP (51%), HCHs second largest shareholder, and agribusiness Agrocommercial AS Ltda (49%). PPL is to provide a cost estimate of the PFS to be financed by HCH with a cap of US$500,000. PPL has completed a scoping study to ship Cu concentrate through Las Losas, an activity which has already received environmental approval.

NGEx Resources (TSX: NGQ) Has intersected high-grade Ag in the first eight holes in an on-going drill program at its Filo del Sol Cu-Au-Ag project in Re-gion III and Argentina´s San Juan Province. Highlights included 38m @ 106g/t Ag in hole VRC80, 8m @ 565g/t Ag in Hole VRC81 and 72m @ 338g/t in Hole VRC86. Hole VRC85 inter-sected 10m @ 3.41% Cu at the bottom hole but was aban-

doned in strong mineralization due to stuck drill rods. “Today's results…have significantly extended the high grade Ag mineral-ization to the W of the current resource. We…are now drilling larger step outs from the current resource and focusing on areas we believe could represent potential feeders to the min-eralization”, said CEO Wojtek Wodzicki. The eight holes spanned a NS distance of just over 1.7km.

Exeter Resource (TSX: XRC) Believes it has discovered an extensive, new, subterranean aquifer, with no connection to surface water, through water exploration drilling for its Caspiche Au-Cu project in Region III. Pump testing of five large diameter exploration drilled at the Peñas Blancas water concession has confirmed strong constant water flows and rapid recharge rates, with an aggregate flow rate of over 300l/s. The 2014 PEA for Caspiche calculated a peak water demand of less than 50l/s for the 30,000tpd oxide operation so the “discovery could provide an excellent long term water resource for other potential users in this arid, largely unpopulated region of Chile”, said CEO Wendell Zerb. XRC now plans to complete the exploration program, including two additional large diameter holes, by the end of May and apply for water rights for the discovery.


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Filo del Sol Cu-Au-Ag project in Region III and Argentina.

Productora Cu project in Region III.

Caspiche Au-Cu project in Region III.

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Corporate News

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Metminco raises A$1M Meminco Limited (ASX: MNC) has completed an A$1M capital raising, with RFC Ambrian placing 179,191,151 shares at A$0.006 each. These included 54.375M shares placed with MNCs six directors. The funds will be used to complete a PEA for its Los Calatos Cu project in southern Peru, to secure min-ing access rights at the Mollacas Cu project in Region IV and to provide working capital. “The PEA is an important step to-wards advancing Los Calatos, a designated Project of National Interest, by assessing the economic viability of a smaller, high grade, starter mining operation that focuses on the higher grade copper and molybdenum zones that occur within dis-crete anhydrite breccia zones”, said MD William Howe. MNC said it has been in advanced talks with third parties for a po-tential deal for a “near term cashflow asset”.

Herencia names new director Sen Ming (Jimmy) Lim has been appointed to the board of Her-encia Resources (AIM: HER) as the nominated representative of Shining Capital Management Limited, of which he is MD. Lim is also a director at a number of mining companies, includ-ing Maligreen Mining Company (Private) Limited, Pan African Mining Company (Private) Limited, Pickwerl Mining Company (Private) Limited, and Trench Mine (Private) Limited. Lim owns 10M HER shares while Shining owns 400M shares or 12.35% of HERs total voting rights. “Jimmy’s experience in financial and corporate affairs will be invaluable in contributing to the suc-cess of HER”, said HERs MD Graeme Sloan.

Mariana raises GBP1.8M Mariana Resources (AIM: MARL) has raised approximately GBP1.8M through an equity placement. The net funds of GBP1.76M will finance work at MARLs assets in Peru, Argenti-na and Suriname, including drilling. MARL will now issue 112,817,240 new shares @ GBP0.016. Following the place-ment, Exploration Capital Partners 2014 Limited Partnership, part of the Sprott Group of Companies, has become a signifi-cant shareholder, holding 7.5% of the shares. “The funds raised will advance a number of MARLs assets including the upcoming deeper drilling at Soledad, scout drilling of high grade gold and silver targets in Argentina and the continuation of our drill targeting at the Nassau Gold project in Suriname”, said CEO Glen Parsons. Meanwhile, following the improve-

ment in MARLs share price and the interest shown by institu-tional investors, MARL has terminated the Convertible Security Agreement signed with Bergen Global Opportunity Fund, LP last September. The agreement allowed MARL to acquire new assets in Suriname and Turkey, MARL noted.

Mirasol names Tognetti to board Mirasol Resources (TSXV: MRZ) has appointed John Tognetti, chairman of Haywood Securities Inc., to its board of directors. Tognetti is the largest shareholder of MRZ and has participated and/or arranged all its equity financing. “MRZ will benefit from Mr. Tognetti’s vast experience in both the investment business and the capital markets for resource exploration companies in particular,” said CEO Stephen Nano.

HER issues 379M shares Herencia Resources (AIM: HER) has issued 379,137,545 shares at GBP0.01 as part of its equity drawdown agreement with The Australian Special Opportunity Fund, a New York-based institu-tional investor managed by The Lind Partners. As a result, Lind holds 515,624,289 shares in HER, representing 14.25% of the total issue capital and voting rights. Lind also holds 25M op-tions to buy new shares @ 1.3316p and, through the remain-ing convertible loan note of US$25,000, a further indirect in-terest in 1,640,955 ordinary shares; which combined repre-sents an indirect interest in 0.74%.

Lachlan Star appoints administrators Lachlan Star (ASX: LSA) has appointed administrators after a proposed sale of its Chilean subsidiary DMC Newco Pty to Hamilton Place Associates LLC failed. “The board has conclud-ed that the proposal was not capable of being progressed with an adequate degree of certainty and in a timeframe that would ensure the ongoing solvency of LSA and hence resolved to make the appointment,” the firm said. The move will not immediately affect LSAs Chilean operations, including the CMD Au mine in Region IV. “We expect the administrators will work closely with LSAs board of directors to determine the most appropriate way forward for that operation”, LSA added.

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The CMD Au mine in Region IV.

Los Calatos Cu project in southern Peru.

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Calendar

Conferences and Events Calendar

March 1st - 4th PDAC 2015 Metro Toronto Convention Center Toronto, CANADA www.pdac.ca/convention

March 24th - 25th Latin America Mining Summit Hotel Mercure Santiago, CHILE www.magenta-global.com.sg

March 26th Competencies in Mining Resources and Reserves Hotel Antay Copiapo, CHILE www.comisionminera.cl

April 13th Exploration Forum 2015 Centro Parque, Santiago CHILE www.explorationforum.cl

April 13th - 15th 14th World Copper Conference Grand Hyatt Santiago Santiago, CHILE www.crugroup.com/events

April 15th Cesco Dinner Club Hipico Santiago, CHILE www.cescoweek.cl

May 5th - 7th ARMINERA Centro Costa Salguero Buenos Aires, ARGENTINA www.caem.com.ar/arminera

May 11th - 15th Exponor Recinto Ferial AIA Antofagasta, CHILE www.exponor.cl

May 18th - 20th IX Congreso Internacional de Prospectores y Explora-dores Sheraton Lima & Convention Center Lima, PERU www.proexplo.com.pe

May 20th - 21st Latin America Down Under 2015 Sheraton on the Park Sydney, AUSTRALIA www.latinamericadownunder.com

May 31st - June 1st Canadian Investor Conference Vancouver Convention Center West Vancouver, CANADA www.cambridgehouse.com

June 8th - 10th GEOMIN 2015 Hotel Enjoy Antofagasta, CHILE www.gecamin.com/geomin

August 12th - 13th Hotel Intercontinental Santiago, CHILE www.cexr.cl

September 9th Asset Valuation and Capital Markets Hotel Radisson Santiago, CHILE www.comisionminera.cl

September 21st - 25th PERUMIN Mining Convention 2015 Campo Ferial Cerro Juli Arequipa, PERÚ www.convencionminera.com

October 4th - 8th Chilean Geological Congress Hotel-Casino Enjoy La Bahia de Penuelas La Serena, CHILE www.congresogeologicochileno.cl

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No.24 / March 2015

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ABOUT CHILE EXPLORE REPORT: Chile Explore Report is published twelve times a year during the first week of each month by Tiger Information Services SpA, Badajoz 130, of 1406, Las Condes, Santiago; legal representative Iain Cassidy, [email protected]. The information contained herein is derived from sources believed to be reliable but no warranty expressed or implied exists between the recipient and the Publisher that this information is accurate. The contents of Chile Explore Report are intended for information purposes only based on news and information obtained and/or researched by the Publisher and is not intended to be construed as advice to buy or sell shares in any security or asset. The Chile Explore Report is intended to be authoritative, critical and independent. The Publisher is not a stock tipper or promoter and is not paid, sponsored, provided with stock options or otherwise enticed to write positive pieces about the companies covered. The Publisher does invest in some of the companies’ active in the Chile exploration sector and ends up with dogs as well as winners. The Publisher has been involved in mining information research, analysis and publication for over ten years including roles such as investor relations, media relations, senior reporter and research consultant for companies involved in mining and exploration, and reputable industry informa-tion providers. The Publisher is not a registered securities professional and as such is not qualified to give personal or individual investment advice. Resource investing is risky and you could lose part or all of your investment. Consult a registered investment professional before making any investment in any security. For more information contact please write to [email protected]. COPYRIGHT: © 2013 Chile Explore Report. All Rights Reserved. Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of the publisher.

www.cexr.cl


Nano Cap Ticker Shares (M) Fully

Price Mkt Cap ($M) Cash ($M) Debt ($M) <C$10m Diluted (M)

AQM Copper AQM 139 139.246 0.065 9.04 N/A 0 25.4M

Cerro Grande Mining CEG 110 120 0.011 1.21 N/A 0 14.3M

Chilean Metals PBX 16.1 18.5 0.005 0.08 N/A 0 14.4M

Condor Resources CN 81.2 100.8 0.055 4.47 0.8 0 13.65M

Cougar Minerals COU 25 27.6 0.01 0.25 N/A 0 12.6M

Ginguro Exploration GEG 82.9 108 0.075 6.22 0.7 0 5.0M @ $0.56

Global Hunter BOB 14 14 0.035 0.05 0.0185 2.5 0

Goldeye Explorations GGY 46.7 65.9 0.045 2.10 N/A 0 16,4M

New World Resource NW 13.3 17.7 0.03 0.40 0.7 0 4M @ 0.2 Mar 2015

Pinestar Gold PNS 28.2 28.2 0.03 0.85 N/A 0 N/A

Revelo Resources RVL 91.4 129.6 0.0125 1.14 N/A 0

1,23M @ $0.7 Jun 2015, 1.44M @ $0.88 Jan 2016, 28.5M @ $0.31 Apr 2019

Sendero Mining SM 21.9 28.5 0.005 0.11 0.5 0 5.4M

Savant Explorations SVT 70.65 88.06 0.015 1.06 0.7 0 11.8M

Micro Cap Ticker Shares (M) Fully

Price Mkt cap ($M) Cash ($M) Debt ($M) C$10-100M Diluted (M)

Arena Minerals AN 60.8 67.2 0.145 8.82 1.6 0 672k @$0.61 Apr 2014 / 7.1M @ $0.80 Oct 2014

Apogee Silver APE 301 371 0.005 1.51 11.2 0 N/A

Coro Mining COP 159.4 177.9 0.03 4.78 0.4 0 10.5

Lachlan Star LSA 147.3 108 0.024 3.54 2.32 0 16.5M

Los Andes Copper LA 200.4 200.9 0.18 36.07 0.6 0 None

Mirasol Resources MRZ 44.2 47.9 0.96 42.43 19.3 0 2.2M

Orosur Mining OMI 96.6 100.8 0.2 19.32 10.8 4.9 4.2

Regulus Resources REG 99.9 118.9 0.395 39.46 3.2 0 12.5m @ $1.60

Southern Hemisphe-re

SH 248.5 286.32 0.04 9.94 3 0 N/A

TriMetals Mining Inc TMI 135.7 144.2 0.08 10.86 29.5 0 1.7M

White Mountain Titan

WMTM 73.8 86.6 0.35 25.83 2 0 12.7M

Aus Capital Ticker Shares (M) Fully Price

Mkt cap (A$M) Cash (A$M) Debt (A$M)

Diluted (M) (A$)

Castillo Copper CCZ 423 423 0.001 0.42 0.4 N/A N/A

Condor Blanco Mines CDB 938 1,116 0.001 0.94 N/A N/A N/A

Equus Mining EQE 374.3 378.3 0.01 3.74 7.3 N/A N/A

Estrella Resources ESR 108.3 116.08 0.026 2.82 1.1 0 None

Helix Resources HLX 235 270 0.038 8.93 1.8 N/A N/A

Hot Chili HCH 347.7 358.7 0.14 48.68 20 25 N/A

Kingsgate Consolida- KCN 224 N/A 0.79 176.96 N/A N/A N/A

Oro Verde OVL 360 420 0.007 2.52 0.267 N/A N/A

Oz Minerals OZL 303 303 3.81 1154.43 219 N/A N/A

The Chile List / Updated on February 27th 2015

No.24 / March 2015

19

The Chile List / Updated on February 27th 2015

www.cexr.cl


Small-Med Cap

Ticker Shares (M) Fully

Price Mkt cap ($M) Cash ($M) Debt ($M) >100M Diluted (M)

Amerigo Resources ARG 173.7 187.4 0.315 54.72 9.2 0 None

Atacama Pacific Gold ATM 55.3 64.8 0.3 16.59 20.0 0 0.2M @ $1.00 4M @ $1.40

Capstone Mining CS 382 403.3 1.47 561.54 500.0 0 None

Endeavour Silver EDR 102 106.8 2.89 294.78 44 29 0

Exeter Resource XRC 88.4 96.8 0.65 57.46 30 0 None

Herencia Resources HER 24.43 21.40 0.24 5.86 N/A 0 N/A

Mandalay Resources MND 408.8 425.9 0.91 372.01 69 60 None

NGex Resources NGQ 187.7 192.5 1.06 198.96 34 0 None

RB Energy RBI 263.3 282 0.075 19.75 64 50 10.3M

Silver Standard Resources

SSO 80.7 80.7 6.63 535.04 234 N/A None

Biggest Gainers Biggest Losers Sector Tot Mkt Cap Ave Mkt Cap Change %

NW 50% ESR -35% Nano Cap 26.97 2.07 2%

AN 45% LSA -27% Micro Cap 202.55 18.41 1%

ARG 37% SVT -25% Sml-Med Cap 2116.71 211.67 1%

RVL 25% BOB -22% Total 2346.22 77.39 1%

No.24 / March 2015

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