1. A ready to drill large scale Porphyry Gold/Copper target in a very prolific Chilean Mining region. We call it TDO which is short for Tierra de Oro…Golden Land. We have spent $5 million on TDO and we are having the leading Artificial Intelligence (AI) firm assist in finalizing drilling locations which we expect to commence drilling in Q4 of 2020. They have been particularly successful with large base metal discoveries. Check out Windfal Geotek here
2. A very promising Gold/Copper target like Mantos Verde that has been identified with help of a prominent major mining Company with large commercial interests in the area. They believe a target like Mantos Verde may exist on our Zulema Palo Negro properties which are adjacent the famed Candelaria mine. They had some very specific advice made in a four day field trip with four of their geologists including the head of SA exploration. These recommendations additional mapping and geophysical work will take us about six months to complete and will make project ready either for new drilling from CMX or potentially a JV with a major partner.
Our 3% Royalty on the Copaquire deposit we sold to Teck. Teck is now building QB2 and is evaluating how Copaquire could fit into production timelines of QB1 and QB2. CMX believes it is not a question of if Copaquire gets produced it’s a question of when. Teck can buy 1% back for $3 million USD. QB 1 sales were close to $700 Million at its peak implying a potential $14 million dollar royalty. This royalty is why long term shareholders have persevered through this market.
The Capital structure as noted below is very favorable.
Essentially the Company is trading at shell value yet as evidenced above there are some excellent near term opportunities within the Company and we are also seeing attractive merger and acquisition packages given our structure and assets.
Note in our view Mining has been in a downturn since October of 2012 when the IIROC changed rules and allowed shorting on the downtick. This has been proven very clearly by the work of Save Canadian Mining. https://savecanadianmining.com/
Chilean Metals CEO Terry Lynch is the founder of this initiative and together has worked with Industry leaders Like Eric Sprott, Sean Roosen and the TMX Group to work to change the legislation and to enable a reinstatement of the Tick Test. The graph below highlights the problem
We think now thanks to Save Canadian Mining governments are learning of the damage created by this inadvertent rule change and we can look for a change in this rule in the next 12 months or so. This will act in our view as a catalyst for the sector and we want to be fully prepared for this. To learn more about Save Canadian Mining please go to https://savecanadianmining.com/ to learn more about Chilean Metals below download our presentation at the link below.