Investing in Early-Stage Gold-Copper Projects

Prospect generator Latin Metals Inc. (TSX-V: LMS)(OTC: LMSQF) — currently trading around C$0.12 per share — has submitted applications for additional exploration properties as part of its existing option agreement with AngloGold Argentina Exploraciones S.A. (“AngloGold”), a subsidiary of AngloGold Ashanti Ltd. (NYSE: AU)

Investing in Early-Stage Gold-Copper Projects

The new applications comprise 11,265 hectares in the area surrounding the Organullo gold-copper project in Salta Province, Argentina, and, if granted, will bring the total land package held by Latin Metals (subject to the AngloGold option agreement) to 31,648 hectares; a potential 55% increase in the project’s size.

11,265 hectares in the area surrounding the Organullo gold-copper project in Salta Province, Argentina.

Led by CEO Keith Henderson — whom you’re about to hear from directly in our exclusive interview coming right up — Latin Metals operates on a prospect generator model, focusing on the acquisition of prospective exploration properties at minimum cost followed by initial evaluation through cost-effective exploration to establish drill targets to present to potential JV partners. 

The main idea is to have numerous shots on goal for discovery while minimizing shareholder dilution. With multiple option agreements already cemented with major producers, the company’s aim is to ultimately get to a situation where it can have investment coming in of around C$25 million each year — translating to roughly 70,000 to 75,000 meters of partner funded drilling per annum.

Latin Metals — which is primarily focused on early-stage copper-gold exploration projects in Argentina and Peru — has been highly successful in securing option agreements with major mining companies, including newly-signed agreements in Q1 and Q2 of this year with Barrick Gold (NYSE: GOLD) and AngloGold Ashanti (NYSE: AU)

Newly-signed agreements in Q1 and Q2 of this year with Barrick Gold (NYSE: GOLD) and AngloGold Ashanti (NYSE: AU).

CEO Keith Henderson states: 

“Securing deals with two major gold mining companies is a significant step forward in developing the Company into a sustainable prospect generator. Major gold companies generally only complete a few transactions each year with prospect generators, and it is a notable achievement for Latin Metals to have completed two deals. Ultimately, the success of the Company as a prospect generator will depend on the quantum of exploration dollars and drill meters in the ground. Both Barrick and AngloGold have commenced exploration at their respective projects and have the financial resources to fund the exploration programs under their property options.”

Partner Funded Exploration

Organullo Gold-Copper Project, Argentina: Option agreement with AngloGold

AngloGold has commenced exploration at the Organullo gold-copper project located in Salta Province, Argentina, with Latin Metals expecting to receive initial exploration results later this quarter. 

An Environmental Impact Assessment (EIA) has been submitted to provincial authorities in preparation for drilling by AngloGold, which is expected to begin in Q1 2023 subject to availability of drill rigs and the receipt of permits.

Cerro Bayo Gold-Silver Project, Argentina: Option agreement with Barrick 

Barrick’s exploration is ongoing at Cerro Bayo in Santa Cruz Province, Argentina. Work to date has included mapping, sampling, and geophysics with Latin Metals expecting to provide an update later this quarter. Barrick intends to begin drilling at Cerro Bayo in Q1 2023.

Esperanza Copper-Gold Project, Argentina: Option agreement with Libero Copper & Gold

Libero (TSX-V: LBC) has submitted an EIA to provincial authorities for planned exploration activities at the drill-ready Esperanza copper-gold project; work is expected to begin in due course.

Additionally, on the non-partnered side, Latin Metals is advancing its 100%-owned Auquis copper-molybdenum project in southwestern Peru where surface sampling has returned anomalous mineralization grading up to 5.8% copper and 236 ppm molybdenum across a core area of high-grade mineralization measuring 1.5 km by 1.5 km. 

LMS plans to complete a ground magnetic survey at Auquis covering the main copper-molybdenum anomalies for a total of approximately 60-line-km. The survey is being deployed to determine the dimension of the porphyry target mapped on-surface and the potential skarn mineralization to the west.

So needless to say, plenty of shots on goal for LMS shareholders as we head toward 2023 — far too many to detail here — all at a sub-C$10 million market cap. 

You can check out the complete property portfolio — including details on each 100%-owned property and each option agreement — at the Latin Metals corporate website where you can also sign up to receive updates directly from the company’s IR department. 

As promised, our own Gerardo Del Real of Junior Resource Monthly caught up with Latin Metals CEO Keith Henderson to go over the AngloGold and Barrick options in Argentina — plus a whole lot more. Please enjoy!


Mike Fagan

Mike Fagan
Editor, Resource Stock Digest