Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR) has announced assay results from its ongoing 2024 drilling program at the Warintza Project in southeastern Ecuador. The results reveal high-grade mineralization near the surface, improving previously modeled grades and expanding the potential of the resource in several key areas of the site.
The company, which has drilled over 53,000 meters by the end of the third quarter of 2024, is aiming to exceed its 60,000-meter target for the year. The latest drill holes, SLS-103, SLSE-54, SLS-102, and SLSE-52, add significant mineralization in areas that had not been extensively drilled. Holes SLS-103 and SLSE-54, located in the northwest and northeast sectors, respectively, have intersected new high-grade mineralization at surface, with much of the mineralization falling outside the current Mineral Resource Estimate (MRE). This marks an important step in expanding the known resource, as these results indicate higher grades than previously modeled in these regions.
Key intercepts include 87 meters of 1.23% CuEq, 93 meters of 1.01% CuEq, and 84 meters of 1.00% CuEq. These findings bolster the company’s ongoing efforts to improve the quality of the resource, particularly in sparsely drilled zones within the northwest, north, and northeast areas of the project.
In addition to the resource expansion efforts, Solaris is conducting exploration drilling in an area featuring a large soil anomaly on the opposite side of a granodiorite formation, which shapes the northwestern pit wall. Assays from this exploration are expected in the coming weeks.
With high productivity on-site due to infrastructure investments, Solaris remains on track to exceed its 2024 drilling plan. Current efforts include drilling focused on expanding open extensions of the resource, infill drilling to upgrade existing resources, and further geotechnical and condemnation drilling.
Highlights from the results include:
Northwest, North and Northeast Sectors:
Table 1 – Mineral Resource Extension, Infill and Condemnation Results
Hole ID | Date Reported |
From (m) |
To (m) |
Interval (m) |
Cu (%) |
Mo (%) |
Au (g/t) |
CuEq² (%) |
Comments |
SLS-104 | Oct 7, 2024 | 0 | 485 | 485 | 0.56 | 0.03 | 0.06 | 0.77 | Northern sector – infill |
Including | 45 | 129 | 84 | 0.82 | 0.02 | 0.07 | 1.00 | ||
Including | 45 | 255 | 210 | 0.69 | 0.03 | 0.07 | 0.90 | ||
Including | 45 | 485 | 440 | 0.61 | 0.03 | 0.06 | 0.82 | ||
SLS-103 | 0 | 528 | 528 | 0.26 | 0.05 | 0.04 | 0.59 | Northwest sector – infill and extensional | |
Including | 21 | 108 | 87 | 1.00 | 0.03 | 0.11 | 1.23 | ||
Including | 21 | 483 | 462 | 0.29 | 0.06 | 0.05 | 0.64 | ||
Including | 240 | 345 | 105 | 0.28 | 0.08 | 0.02 | 0.72 | ||
SLS-102 | 0 | 156 | 156 | 0.46 | 0.04 | 0.08 | 0.74 | Northwest sector – infill | |
Including | 57 | 150 | 93 | 0.73 | 0.04 | 0.09 | 1.01 | ||
SLS-101 | 0 | 307 | 307 | 0.06 | 0.01 | 0.02 | 0.14 | Northwest sector – condemnation | |
SLSE-60 | 0 | 290 | 290 | 0.16 | 0.01 | 0.03 | 0.23 | Northeast sector – infill | |
Including | 93 | 290 | 197 | 0.21 | 0.01 | 0.04 | 0.30 | ||
Including | 141 | 290 | 149 | 0.24 | 0.01 | 0.05 | 0.35 | ||
Including | 207 | 290 | 83 | 0.28 | 0.02 | 0.03 | 0.43 | ||
SLSE-58 | 0 | 453 | 453 | 0.03 | 0.00 | 0.01 | 0.04 | Northeast sector – condemnation | |
SLSE-57 | 0 | 660 | 660 | 0.22 | 0.01 | 0.05 | 0.30 | Southeast sector – extensional | |
Including | 552 | 660 | 108 | 0.49 | 0.02 | 0.06 | 0.61 | ||
SLSE-56 | 0 | 381 | 381 | 0.09 | 0.00 | 0.03 | 0.11 | Northeast sector – condemnation | |
SLSE-55 | 0 | 473 | 473 | 0.12 | 0.00 | 0.02 | 0.16 | Northeast sector – condemnation | |
SLSE-54 | 0 | 399 | 399 | 0.29 | 0.01 | 0.04 | 0.41 | Northeast sector – infill and extensional | |
Including | 0 | 258 | 258 | 0.37 | 0.02 | 0.05 | 0.52 | ||
Including | 81 | 231 | 150 | 0.43 | 0.02 | 0.05 | 0.60 | ||
SLSE-53 | 0 | 455 | 455 | 0.04 | 0.00 | 0.02 | 0.07 | Northeast sector – condemnation | |
SLSE-52 | 0 | 138 | 138 | 0.15 | 0.01 | 0.03 | 0.23 | Southeast sector – condemnation | |
SLSE-51 | 0 | 257 | 257 | 0.15 | 0.01 | 0.03 | 0.20 | Southeast sector – condemnation |
Notes to Table 1: True widths are interpreted to be very close to drilled widths due to the bulk-porphyry style mineralized zones at Warintza.
Table 2 – Collar Locations
Hole ID | Easting | Northing | Elevation (m) |
Depth (m) |
Azimuth (degrees) | Dip (degrees) |
SLS-104 | 800383 | 9648303 | 1411 | 485 | 110 | -70 |
SLS-103 | 799760 | 9648031 | 1575 | 528 | 360 | -56 |
SLS-102 | 799568 | 9648147 | 1403 | 253 | 315 | -60 |
SLS-101 | 799760 | 9648031 | 1575 | 307 | 180 | -45 |
SLSE-60 | 801800 | 9648235 | 1102 | 290 | 243 | -54 |
SLSE-58 | 801806 | 9648243 | 1098 | 454 | 90 | -58 |
SLSE-57 | 801150 | 9647610 | 1396 | 660 | 45 | -60 |
SLSE-56 | 801163 | 9648335 | 1309 | 382 | 326 | -71 |
SLSE-55 | 801597 | 9648134 | 1155 | 473 | 25 | -50 |
SLSE-54 | 801596 | 9648136 | 1154 | 481 | 240 | -70 |
SLSE-53 | 801802 | 9648239 | 1100 | 455 | 23 | -68 |
SLSE-52 | 801248 | 9647968 | 1252 | 354 | 270 | -46 |
SLSE-51 | 801246 | 9647967 | 1252 | 257 | 225 | -45 |
Notes to Table 2: The coordinates are in WGS84 17S Datum.
Endnotes
Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR) has announced drilling results from its ongoing exploration program at the Warintza Project in southeastern Ecuador. The company aims to expand mineral resources and upgrade existing ones while enhancing its infrastructure and operational efficiency. The latest update provides insight into the progress made through new assay results and a record-breaking month for drilling activity.
Solaris announced the latest results of its 2024 drilling campaign, which includes a planned total of 60,000 meters. The key findings from recent drilling operations highlight intercepts of high-grade mineralization that extend beyond the current Mineral Resource Estimate (MRE). These findings emerged from drill holes in the northwest and southeast sectors of the Warintza Project, targeting sparsely drilled zones where grades have historically been lower or less understood.
A standout result from the latest drilling includes an intercept measuring 475 meters at a copper-equivalent grade (CuEq) of 1.03%. This intercept came from near the surface and demonstrated the potential to significantly expand the existing resource base. This mineralization is essential for refining the geological model of the Warintza Project and providing a stronger basis for future resource upgrades.
The company also achieved a new drilling record in August 2024. Solaris reported that its team drilled 10 kilometers (km) in one month, surpassing a previous record set in 2021 when 12 rigs managed to drill 8 km. The current 10 km of drilling was achieved using just eight rigs, indicating considerable improvements in productivity and operational efficiency. This record sets the company on a strong trajectory toward completing its 60,000-meter drilling goal for the year, further advancing the exploration potential of Warintza.
Solaris attributes this increase in productivity to significant infrastructure investments made at the site. The company has been focusing on building out the necessary infrastructure to support its expanding exploration activities. The next phase of construction is already underway, which should further bolster their capacity to drill and process results at the site. These infrastructure developments are designed to improve access to drilling targets and enhance overall project efficiency, contributing to the record performance seen in August.
The Warintza Project remains the company’s flagship asset and has attracted attention due to its rich mineralization and potential for resource expansion. Located in Ecuador’s resource-rich southeastern region, the project has been the focus of intensive exploration and development work. Solaris continues to aim for a balance between upgrading known mineral resources and exploring for additional, high-grade mineralized zones. The latest drill results are expected to contribute to the upcoming updates in the MRE, which serves as a key metric for investors and stakeholders to evaluate the potential of the project. While the results highlight continued resource potential, Solaris has emphasized that much of the mineralization discovered lies outside of the currently defined resource estimate, suggesting room for further resource growth and exploration potential.
Highlights from the results are as follows:
Northwest Sector:
Holes SLS-96, SLS-97 and SLS-99 added new high-grade mineralization partially outside of the MRE while SLS-100 improved upon the modelled grade in its vicinity. These holes were located in the northwest sector where mineralization has now been extended to the contact with a tabular granodiorite that shapes the northwestern pit wall. Step-out exploration drilling is now testing the potential for mineralization within a large area of undrilled soil anomaly on the far side of this body.
Southeast Sector:
Holes SLSE-45, SLSE-46, SLSE-47, and SLSE-50 added new high-grade mineralization partially outside of the MRE while SLSE-45 and SLSE-46 improved upon modelled grades in their vicinity. Mineralization remains open to the southeast for approximately 600m within a large 0.8km x 0.8km soil anomaly that defines the target opportunity in this direction.
Table 1 – Mineral Resource Extension, Infill and Condemnation Results
Hole ID | Date Reported |
From (m) |
To (m) |
Interval (m) |
Cu (%) |
Mo (%) |
Au (g/t) |
CuEq² (%) |
Comments |
SLS-100 | Sep 19, 2024 | 0 | 475 | 475 | 0.76 | 0.04 | 0.09 | 1.03 | Northwest sector – infill |
Including | 48 | 475 | 427 | 0.84 | 0.04 | 0.09 | 1.11 | ||
SLS-99 | 0 | 246 | 246 | 0.24 | 0.09 | 0.05 | 0.75 | Northwest sector – extensional | |
Including | 21 | 126 | 105 | 0.49 | 0.08 | 0.09 | 1.00 | ||
Including | 21 | 165 | 144 | 0.37 | 0.08 | 0.07 | 0.87 | ||
SLS-98 | 24 | 159 | 135 | 0.24 | 0.00 | 0.05 | 0.28 | Northern sector – extensional | |
Including | 54 | 81 | 27 | 0.53 | 0.00 | 0.07 | 0.59 | ||
SLS-97 | 0 | 308 | 308 | 0.19 | 0.03 | 0.04 | 0.36 | Northwest sector – extensional | |
Including | 51 | 126 | 75 | 0.37 | 0.04 | 0.05 | 0.60 | ||
SLS-96 | 0 | 288 | 288 | 0.10 | 0.06 | 0.02 | 0.47 | Northwest sector – extensional | |
Including | 0 | 210 | 210 | 0.13 | 0.06 | 0.03 | 0.50 | ||
Including | 0 | 78 | 78 | 0.28 | 0.07 | 0.07 | 0.71 | ||
SLS-95 | 93 | 397 | 304 | 0.17 | 0.00 | 0.06 | 0.22 | Northern sector – extensional | |
SLS-94 | 54 | 381 | 327 | 0.28 | 0.03 | 0.03 | 0.45 | Northern sector – infill | |
Including | 54 | 213 | 159 | 0.35 | 0.02 | 0.04 | 0.50 | ||
Including | 54 | 90 | 36 | 0.60 | 0.01 | 0.06 | 0.69 | ||
SLS-93 | 0 | 196 | 196 | 0.07 | 0.02 | 0.02 | 0.15 | Northwest sector – condemnation/geotechnical | |
SLS-92 | 0 | 105 | 105 | 0.14 | 0.03 | 0.04 | 0.33 | Northern sector – infill | |
Including | 69 | 105 | 36 | 0.32 | 0.04 | 0.03 | 0.54 | ||
SLS-91 | 12 | 305 | 293 | 0.22 | 0.00 | 0.07 | 0.27 | Northern sector – extensional | |
SLS-90 | 0 | 141 | 141 | 0.10 | 0.03 | 0.02 | 0.29 | Northwest sector – extensional | |
Including | 75 | 141 | 66 | 0.18 | 0.03 | 0.02 | 0.34 | ||
SLS-89 | 0 | 200 | 200 | 0.05 | 0.01 | 0.02 | 0.12 | Northern sector – condemnation/geotechnical | |
SLS-88 | 24 | 84 | 60 | 0.11 | 0.01 | 0.14 | 0.24 | Northern sector – extensional | |
SLSE-50 | 0 | 445 | 445 | 0.37 | 0.02 | 0.04 | 0.53 | Southeast sector – extensional | |
Including | 132 | 445 | 313 | 0.42 | 0.03 | 0.04 | 0.60 | ||
Including | 180 | 264 | 84 | 0.52 | 0.03 | 0.05 | 0.70 | ||
SLSE-49 | 0 | 273 | 273 | 0.43 | 0.01 | 0.06 | 0.55 | Southeast sector – infill | |
Including | 33 | 273 | 240 | 0.48 | 0.01 | 0.06 | 0.60 | ||
SLSE-48 | 15 | 389 | 374 | 0.14 | 0.01 | 0.02 | 0.19 | Southeast sector – extensional | |
SLSE-47 | 0 | 399 | 399 | 0.28 | 0.02 | 0.06 | 0.42 | Southeast sector – extensional | |
Including | 57 | 267 | 210 | 0.43 | 0.02 | 0.05 | 0.58 | ||
SLSE-46 | 0 | 400 | 400 | 0.26 | 0.01 | 0.04 | 0.34 | Southeast sector – extensional | |
Including | 75 | 150 | 75 | 0.60 | 0.02 | 0.07 | 0.73 | ||
SLSE-45 | 0 | 399 | 399 | 0.44 | 0.02 | 0.05 | 0.58 | Southeast sector – extensional | |
Including | 33 | 318 | 285 | 0.50 | 0.02 | 0.06 | 0.63 | ||
SLSE-44 | 0 | 341 | 341 | 0.11 | 0.00 | 0.02 | 0.13 | Northeast sector – condemnation/geotechnical |
Notes to Table 1: True widths are interpreted to be very close to drilled widths due to the bulk-porphyry style mineralized zones at Warintza.
Table 2 – Collar Locations
Hole ID | Easting | Northing | Elevation (m) |
Depth (m) |
Azimuth (degrees) | Dip (degrees) |
SLS-100 | 799568 | 9648147 | 1403 | 475 | 107 | -49 |
SLS-99 | 799684 | 9648336 | 1373 | 246 | 200 | -60 |
SLS-98 | 800616 | 9648398 | 1334 | 214 | 180 | -50 |
SLS-97 | 799569 | 9648146 | 1404 | 308 | 270 | -60 |
SLS-96 | 799683 | 9648335 | 1373 | 288 | 140 | -60 |
SLS-95 | 800617 | 9648399 | 1334 | 397 | 45 | -60 |
SLS-94 | 800196 | 9648470 | 1340 | 381 | 180 | -60 |
SLS-93 | 799681 | 9648333 | 1372 | 196 | 0 | -60 |
SLS-92 | 800200 | 9648475 | 1336 | 340 | 45 | -60 |
SLS-91 | 800619 | 9648397 | 1332 | 305 | 90 | -60 |
SLS-90 | 799684 | 9648331 | 1374 | 286 | 62 | -45 |
SLS-89 | 800201 | 9648476 | 1336 | 200 | 45 | -45 |
SLS-88 | 800620 | 9648396 | 1331 | 367 | 0 | -50 |
SLSE-50 | 801593 | 9648138 | 1153 | 445 | 240 | -85 |
SLSE-49 | 801528 | 9647846 | 1153 | 273 | 260 | -50 |
SLSE-48 | 801248 | 9647968 | 1252 | 389 | 90 | -60 |
SLSE-47 | 801529 | 9647845 | 1153 | 403 | 120 | -60 |
SLSE-46 | 801250 | 9647967 | 1251 | 400 | 180 | -60 |
SLSE-45 | 801530 | 9647847 | 1154 | 399 | 90 | -80 |
SLSE-44 | 801613 | 9648465 | 1106 | 341 | 270 | -60 |
Notes to Table 2: The coordinates are in WGS84 17S Datum.
Endnotes
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has released an update on its exploration efforts at the Celestina target area, which is part of its broader district exploration program. The Celestina area is located east of the Warintza porphyry cluster and has become a focal point for the company’s search for epithermal deposits. The area is defined by a 4.5-kilometer by 3-kilometer zone of hydrothermal alteration, along with elevated levels of zinc, lead, arsenic, and mercury found in soil samples. These elements are typical indicators of potential mineralization, particularly in epithermal systems.
Highlight from the release are as follows:
Recently, further prospecting outside of the previously identified anomalies led to the discovery of three parallel vein exposures in creek beds. These veins are located within 100 meters of the original breccia outcrop, which was reported in a press release on June 25, 2024. Follow-up sampling from these newly identified veins has returned significant results, including rock chip samples yielding up to 16,019 grams per ton (g/t) of silver and 25.3 g/t of gold. These findings have strengthened the company’s belief that there is an underlying silver-gold-base metals vein system at Celestina.
The veins identified so far have been found within a soft, chemically reactive mudstone unit. This mudstone may have acted as a caprock, potentially trapping hydrothermal fluids beneath it. As a result, the primary exploration target at Celestina is now believed to lie in the underlying volcanic rocks. These rocks would have been fully exposed to the hydrothermal system, making them more likely to host robust vein and fracture formations that could contain valuable mineralization.
Fieldwork at Celestina is ongoing, with efforts focused on locating additional vein exposures. By expanding the area covered, the team hopes to define the full extent of the vein system. More detailed mapping, sampling, and alteration studies are currently underway, aiming to better understand the zonation of the mineralization. In addition, geotechnical drilling is set to take place this month, with the goal of confirming the stratigraphic sequence of the area. These steps are essential for determining vectors that will guide the selection of sites for initial reconnaissance drilling, which will be crucial to confirming the presence of economically viable mineralization.
Solaris’ district exploration activities extend beyond Celestina. In the Caya-Mateo target area, geotechnical drilling has recently encountered evidence of epithermal clay alteration beneath overburden in a sandstone unit. This alteration is considered significant, as it indicates that hydrothermal activity occurred in the area. Drilling in the nearby Mateo area has also uncovered high-temperature alteration in volcanic rocks, further suggesting the presence of an epithermal system. The company plans to conduct additional mapping and sampling in the Mateo area, extending coverage toward the southeast where the core of the system is believed to lie.
While the results at Celestina are still in the early stages, they have provided positive indications that the area could host a significant mineral system. The discovery of multiple veins with high gold and silver content underscores the potential of the Celestina target, although much more work remains to be done to fully assess the area’s mineral potential. As exploration continues, Solaris will look to refine its understanding of the geological controls on mineralization and pinpoint the best locations for future drilling. If successful, these efforts could add value to the company’s broader Warintza Project, which remains its flagship asset.
Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR) has submitted an Environmental Impact Assessment (EIA) to Ecuador’s Ministry of Environment, Water, and Ecological Transition (MAATE) as part of its ongoing efforts to develop the Warintza Project in southeastern Ecuador. The EIA, comprising over 3,000 pages, reflects more than three and a half years of work, including community dialogue, environmental monitoring, and data collection. Solaris followed Ecuadorian regulations, and international best practices, and adhered to the Equator Principles framework and Performance Standards on Environmental and Social Sustainability from the International Finance Corporation.
This assessment is not Solaris’ first step in the permitting process for Warintza. The company had previously completed community consultations and submitted another EIA, which resulted in the granting of an environmental license in 2023. This enabled Solaris to advance exploration and develop infrastructure on the project site. Since then, the company has invested over $170 million in the project, with a substantial portion of procurement sourced locally. Currently, the project provides over 500 jobs, making it one of the most significant employers in the region.
Mr. Antonio Goncalves, Minister of Energy and Mines, commented in a press release: “The steady progress of the Warintza Project is positive for Ecuador. The Project is advancing in compliance with all legal regulations and will soon generate thousands of jobs and major economic growth in the Province of Morona Santiago. The administration of President Daniel Noboa supports this type of mining Project – one that has the support of the communities in its direct area of influence and is designed to meet high social, environmental, and technical standards.”
Mr. Sixto Cóndor, Governor of Morona Santiago, also commented: “Warintza is a project that will bring great opportunities and impetus to the development of the province. Like the Mirador project, which I recently visited, and its positive impacts in Zamora-Chinchipe, Warintza will be an engine for growth in Morona Santiago, with more generation of local employment sources, revitalization of the economy, social benefits, support for entrepreneurship, businesses and local suppliers. With Warintza, we will have a better province, with greater wealth to be distributed and better opportunities. We are ready to move forward.”
Mr. Antonio Castillo, Mayor of Limón Indanza, commented: “The people of Limón Indanza have benefited and will continue to benefit significantly through the creation of local employment and opportunities for the canton’s suppliers with the Warintza Project. The communities of Warints and Yawi decided to sign an agreement with the Company, through the Strategic Alliance, for the advancement of the Project and, as a Municipality, we respect and support this decision to work together.”
Mr. Javier Toro, Chief Operating Officer of Solaris, also commented: “The submission of the EIA and commencement of permitting for construction is a major milestone for the Warintza Project. We are very grateful to all our supporters, and in particular to our host communities and the Advisory Board of the Strategic Alliance of the Warintza Project who have been integral to the socialization of this EIA, the Mayor of Limón Indanza, the Governor of the Province of Morona Santiago, and the diligent professionals at MAATE.”
ESSAM Cía. Ltda., a well-regarded environmental consulting firm in Ecuador, prepared the EIA for Warintza. The firm has previously worked on other major mining projects in the country, such as the Mirador copper mine and the Fruta del Norte gold mine. ESSAM collaborated with international experts, including Knight Piésold Consulting, which provided expertise in areas such as waste management and water design, and Ausenco, which contributed to metallurgical studies and plant design.
With the submission of the EIA, Solaris is preparing to draw on the second tranche of a $15 million credit facility. This funding comes as part of an Offtake Credit Facility that the company had previously announced. Solaris currently has $84 million in available liquidity. The company expects to receive the next update on the project’s permitting process when the technical approval of the EIA is anticipated in the first half of 2025.
In addition to progressing the Warintza Project, Solaris has begun taking steps to move some of its operations to Ecuador. The company plans to transition its head office to Quito, Ecuador’s capital, where some of its senior management will be based. Solaris is evaluating further steps toward aligning its operations with local stakeholders and regulators as the project moves into its permitting phase. The company has indicated that this move is not expected to cause any adverse tax impacts or require changes to its stock exchange listings.
The Warintza Project, which has seen significant investment and progress, represents one of the few large-scale mining operations in Ecuador. It is important to the local economy, providing formal employment opportunities in a region with few alternatives. The submission of the EIA marks a major milestone for Solaris, with the company now awaiting government approvals to advance the project further.
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has released new drill results from its ongoing 60,000-meter, eight-rig drilling program at the Warintza Project in southeastern Ecuador. The company’s recent efforts have extended near-surface, high-grade mineralization in several directions, notably to the north, northwest, and southeast of the existing Mineral Resource Estimate (MRE).
The ongoing drilling campaign primarily focuses on open lateral extensions of mineralization. Infill drilling is also being carried out to upgrade mineral resources and convert areas previously considered waste. The main open vectors for expansion are to the northwest, southwest, and southeast.
A series of drill holes from a step-out platform have shown significant extensions of mineralization to the northwest, revealing high-grade deposits near the surface. This mineralization trend intersects a tabular granodiorite unit, which both separates and underlies the Central deposit from Warintza West. The area to the northwest also includes a large, undrilled molybdenum soil anomaly.
Key drill results from this region include:
In response to these findings, Solaris has constructed additional step-out platforms to further explore the potential of this anomaly and its connection to the Warintza West and Central deposits. Drilling is currently ongoing from the first platform, positioned approximately 1.3 kilometers northwest of SLS-86. Similar efforts are being made with platforms to the southwest, which are expected to contribute to a potential major expansion of the MRE, significantly enlarging the pit.
In addition to the northwest exploration, extensional drilling on the northern edge of the MRE has successfully extended mineralization further north. Infill drilling within this area has also been productive, with hole SLS-83 converting previously undefined waste within the pit.
Significant drill results from this northern region include:
Further south, extensional drilling in the southeast sector of the project has extended mineralization, with potential for further exploration up to 600 meters within a large 0.8km x 0.8km undrilled molybdenum soil anomaly. Notably, hole SLSE-42 returned 300 meters of 0.57% CuEq within 359 meters of 0.53% CuEq from surface, reinforcing the growth potential in this area.
At Warintza East, located to the northeast, additional drilling has encountered lower-grade mineralization in several holes (SLSE-37 to SLSE-43). These results, however, are still important as they serve to convert previously undefined waste within the MRE pit shell. Further drilling is planned in this direction and to the east to better delineate the resource.
Meanwhile, Solaris continues complementary district exploration efforts. Geotechnical drilling in the Caya-Mateo target area has encountered epithermal clay alteration in sandstone and high-temperature alteration in the underlying volcanic rocks. This information is expected to assist in refining future exploration targets in the area. Additionally, fieldwork in the Celestina epithermal gold/silver area is ongoing, with the company anticipating the release of the next batch of results soon.
Table 1 – Assay Results
Hole ID | Date Reported | From (m) | To (m) | Interval (m) | Cu (%) | Mo (%) | Au (g/t) | CuEq² (%) |
SLS-87 | Aug 15, 2024 | 0 | 114 | 114 | 0.23 | 0.02 | 0.05 | 0.38 |
Including | 81 | 114 | 33 | 0.64 | 0.02 | 0.06 | 0.81 | |
SLS-86 | 54 | 159 | 105 | 0.58 | 0.04 | 0.11 | 0.88 | |
Including | 60 | 117 | 57 | 0.77 | 0.05 | 0.13 | 1.11 | |
SLS-85 | 0 | 123 | 123 | 0.12 | 0.02 | 0.04 | 0.23 | |
Including | 102 | 123 | 21 | 0.41 | 0.01 | 0.03 | 0.51 | |
SLS-84 | 54 | 156 | 102 | 0.38 | 0.04 | 0.07 | 0.64 | |
Including | 54 | 123 | 69 | 0.52 | 0.04 | 0.10 | 0.82 | |
SLS-83 | 15 | 265 | 250 | 0.15 | 0.00 | 0.14 | 0.25 | |
SLS-82 | 0 | 249 | 249 | 0.17 | 0.03 | 0.04 | 0.38 | |
Including | 48 | 117 | 69 | 0.47 | 0.04 | 0.12 | 0.77 | |
SLS-81 | 0 | 327 | 327 | 0.20 | 0.02 | 0.04 | 0.33 | |
Including | 84 | 249 | 165 | 0.35 | 0.03 | 0.04 | 0.54 | |
SLS-80 | 69 | 260 | 191 | 0.34 | 0.01 | 0.04 | 0.43 | |
SLSE-43 | 0 | 295 | 295 | 0.13 | 0.01 | 0.02 | 0.18 | |
SLSE-42 | 0 | 359 | 359 | 0.38 | 0.02 | 0.06 | 0.53 | |
Including | 21 | 321 | 300 | 0.42 | 0.02 | 0.06 | 0.57 | |
SLSE-41 | 0 | 258 | 258 | 0.07 | 0.00 | 0.02 | 0.09 | |
SLSE-40 | 6 | 39 | 33 | 0.13 | 0.00 | 0.02 | 0.16 | |
SLSE-39 | 60 | 318 | 258 | 0.19 | 0.01 | 0.04 | 0.26 | |
Including | 60 | 102 | 42 | 0.30 | 0.01 | 0.04 | 0.38 | |
SLSE-38 | 93 | 152 | 59 | 0.19 | 0.00 | 0.03 | 0.23 | |
Including | 108 | 132 | 24 | 0.26 | 0.00 | 0.05 | 0.31 | |
SLSE-37 | 153 | 258 | 105 | 0.12 | 0.02 | 0.02 | 0.23 | |
Including | 360 | 419 | 59 | 0.11 | 0.02 | 0.01 | 0.21 |
Notes to Table 1: True widths are interpreted to be very close to drilled widths due to the bulk-porphyry style mineralized zones at Warintza.
Table 2 – Collar Locations
Hole ID | Easting | Northing | Elevation (m) |
Depth (m) |
Azimuth (degrees) | Dip (degrees) |
SLS-87 | 800198 | 9648473 | 1338 | 295 | 315 | -60 |
SLS-86 | 799685 | 9648332 | 1374 | 251 | 250 | -50 |
SLS-85 | 800199 | 9648475 | 1336 | 274 | 0 | -60 |
SLS-84 | 799684 | 9648330 | 1374 | 200 | 270 | -69 |
SLS-83 | 800621 | 9648398 | 1332 | 265 | 120 | -58 |
SLS-82 | 799682 | 9648329 | 1373 | 302 | 90 | -85 |
SLS-81 | 800198 | 9648471 | 1339 | 400 | 65 | -52 |
SLS-80 | 800200 | 9648473 | 1338 | 260 | 90 | -77 |
SLSE-43 | 801615 | 9648467 | 1104 | 296 | 210 | -60 |
SLSE-42 | 801528 | 9647849 | 1154 | 360 | 170 | -70 |
SLSE-41 | 801612 | 9648466 | 1105 | 259 | 120 | -50 |
SLSE-40 | 801616 | 9648469 | 1104 | 141 | 90 | -75 |
SLSE-39 | 801385 | 9648268 | 1244 | 318 | 270 | -67 |
SLSE-38 | 801615 | 9648469 | 1104 | 152 | 0 | -90 |
SLSE-37 | 801388 | 9648263 | 1243 | 419 | 30 | -80 |
Notes to table: The coordinates are in WGS84 17S Datum.
Endnotes
Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR) has successfully completed joint socialization programs with government entities and local communities to support the initial exploration activities of its district exploration programs at the Warintza Project in southeastern Ecuador. This initiative marks a major step in Solaris’s efforts to advance its exploration projects in the region.
These socialization programs aim to create understanding and support for the company’s initial exploration activities. Members of local communities, as well as representatives from canton and provincial governments and key ministries of the national government, attended the sessions. Solaris presented its proposed exploration activities, emphasizing commitments to local hiring and contracting, education, technical training, capacity building, and community relations and environmental management programs.
The success of these socialization programs provides a template for Solaris’s broader ambitions in the northern Zamora belt. The company intends to secure a joint venture partner to further its exploration efforts in this area.
Mr. René Cuesta, delegate of the Ministry of Energy and Mines, commented in a press release: “These types of meetings show us that it is possible to do mineral exploration in a united way: society, community, company and government. I congratulate the Company and communities because communicating ratifies work in mutual harmony without discrepancies. This shows that the Company works for the development of the communities, and for the good of Limón Indanza canton, Morona Santiago province and Ecuador.”
Mr. Cristian León, delegate of the Ministry of the Environment stated: “We see that the process of socialization has been carried out with total transparency, complying with the previous processes of call and information. It is gratifying to see that the community, cantonal and provincial authorities all participated enthusiastically in this socialization. This is a demonstration of responsibility and commitment on all sides.”
Mr. Jorge Valverde, Political Head of the Limón Indanza canton, also commented in the release: “Socialization with the communities is very important since all the work that will be carried out by the Company is informed by their input. The communities have to understand what the processes are, the way of working and how the hiring will be carried out. I am representing the Governor, and I am very satisfied to see that people are accepting this information provided by the Company.”
Mr. Federico Velásquez, President Latin America of Solaris added: “Engaging with local communities ensures their concerns are central to our planning and enhances the benefits of our activities. Our exploration creates economic opportunities, supports local businesses, and advances community development. This approach aligns with community values, promotes sustainable growth, and demonstrates our commitment to responsible mining.”
Following the successful socialization programs, geotechnical drilling has commenced at the Caya-Mateo target. This drilling is expected to provide important geological information to aid in more focused targeting efforts and subsequent discovery drilling. Meanwhile, fieldwork continues in the Celestina epithermal gold/silver area, where prior sampling returned significant values of up to 11,570 grams per tonne (g/t) of silver and 12.3 g/t of gold across a 30cm breccia outcrop. The next batch of results from this fieldwork is expected soon.
In addition to this, Solaris Resources recently reported an In-Pit Mineral Resources Estimate (MRE) for the Warintza Project on July 22, 2024. The ongoing mineral resource drilling includes over 30,000 meters in the second half of 2024, targeting open extensions and upgrading mineral resources to support a Pre-Feasibility Study (PFS) scheduled for the second half of 2025. Concurrent district exploration programs aim to discover complementary deposits from an expanded portfolio of epithermal gold/silver and porphyry copper targets.
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has announced an In-Pit Mineral Resources Estimate (MRE) for its Warintza Project in southeastern Ecuador. The ongoing mineral resource drilling encompasses over 30,000 meters in the second half of 2024, targeting open extensions and upgrading mineral resources to support the Pre-Feasibility Study (PFS) set for the second half of 2025. Concurrent district exploration programs are also targeting complementary discoveries from an expanded portfolio of epithermal gold/silver and porphyry copper targets.
Mr. Javier Toro, Chief Operating Officer, commented in a press release: “We are very pleased to be able to release this standalone MRE which draws on our combined years of experience with open pit copper projects in the Americas. This new MRE provides a solid foundation for future updates and a robust mine plan with a low strip ratio, simple metallurgy and clean concentrates. In support of the PFS, we are doing further technical, infill and extensional drilling into open areas within and adjacent to the pit shell.”
The In-Pit Mineral Resources at Warintza include 232 million tonnes (Mt) at 0.64% copper equivalent (CuEq) in the measured category and 677 Mt at 0.49% CuEq in the indicated category, resulting in a total of 909 Mt at 0.53% CuEq in measured and indicated categories. An additional 1,426 Mt at 0.37% CuEq is inferred at a base case cut-off grade of 0.25% CuEq. At a higher cut-off grade of 0.50% CuEq, the resources include 157 Mt at 0.76% CuEq in the measured category and 269 Mt at 0.69% CuEq in the indicated category, totaling 427 Mt at 0.71% CuEq in measured and indicated categories, with an additional 177 Mt at 0.62% CuEq in the inferred category.
Warintza is strategically located at a low elevation within the southeast Ecuador mining district. The site benefits from a direct highway connection to Pacific ports and access to low-cost hydroelectric grid power, with potential further development at the adjoining Santiago G8 project. The region has seen significant socioeconomic improvement from mining exploration and development over the past decade.
The 2024 drilling program involves 60,000 meters, with over 30,000 meters planned for the second half of the year. This drilling will be conducted from 140 holes on 80 platforms to provide improved coverage, targeting open lateral extensions, upgrading mineral resources, and converting remaining uncategorized blocks within the pit shell to support the PFS in 2025. Additionally, metallurgical, geotechnical, and hydrogeological drilling is ongoing.
Complementary district exploration efforts are also underway. Fieldwork is targeting epithermal-style gold-silver mineralization south of Caya-Mateo, where recent sampling has returned values between 4 and 12 grams per tonne (g/t) of gold. Field crews are also focused on mapping and sampling combined geophysical and geochemical porphyry copper targets.
Highlights from the results are as follows:
Table 1: Warintza Mineral Resource Estimate Sensitivity
Cut-off | Category | Tonnage | Grade | |||
CuEq (%) | (Mt) | CuEq (%) | Cu (%) | Mo (%) | Au (g/t) | |
0.15% | Measured | 246 | 0.61 | 0.45 | 0.02 | 0.05 |
Indicated | 836 | 0.44 | 0.30 | 0.02 | 0.04 | |
M&I | 1,082 | 0.48 | 0.34 | 0.02 | 0.04 | |
Inferred | 3,135 | 0.27 | 0.20 | 0.01 | 0.04 | |
0.25% (Base Case) |
Measured | 232 | 0.64 | 0.47 | 0.02 | 0.05 |
Indicated | 677 | 0.49 | 0.34 | 0.02 | 0.04 | |
M&I | 909 | 0.53 | 0.37 | 0.02 | 0.05 | |
Inferred | 1,426 | 0.37 | 0.27 | 0.01 | 0.04 | |
0.35% | Measured | 207 | 0.68 | 0.50 | 0.03 | 0.06 |
Indicated | 497 | 0.56 | 0.40 | 0.02 | 0.05 | |
M&I | 704 | 0.60 | 0.43 | 0.02 | 0.05 | |
Inferred | 640 | 0.47 | 0.34 | 0.02 | 0.05 | |
0.50% (Higher Grade) |
Measured | 157 | 0.76 | 0.56 | 0.03 | 0.06 |
Indicated | 269 | 0.69 | 0.50 | 0.03 | 0.05 | |
M&I | 427 | 0.71 | 0.52 | 0.03 | 0.06 | |
Inferred | 177 | 0.62 | 0.45 | 0.02 | 0.07 |
Notes to Table 1:
Endnotes
Solaris Resources Inc. (TSX: SLS)(NYSEAmerican:SLSR) recently reported drill results from its ongoing 2024 drilling program at the Warintza Project in southeastern Ecuador. The latest findings include the final assays for the upcoming updated mineral resource estimate, anticipated later this month.
The 2024 drill program has recently expanded to 60,000 meters, comprising 140 holes from 80 platforms, providing significantly improved drilling coverage. By the end of June, 27,000 meters in 74 holes were completed. Seven rigs are targeting over 8 kilometers of drilling in July, facilitated by improved site logistics from infrastructure development.
Current drilling focuses on Patrimonio exploration, resource extension at Warintza Southeast, and infill and technical drilling to support the Prefeasibility Study (PFS) in the second half of 2025. This includes geotechnical holes that are expected to provide insights into the geology of the Caya-Mateo epithermal gold and silver target area.
Solaris Resources’ continued efforts at the Warintza Project underscore its commitment to expanding and defining the mineral resources within this promising area. The anticipated updated mineral resource estimate will likely provide further clarity on the potential and future development of the Warintza Project.
Other results include:
Table 1 – Assay Results
Hole ID | Date Reported | From (m) | To (m) | Interval (m) | Cu (%) | Mo (%) | Au (g/t) | CuEq¹ (%) |
SLS-79 | July 09, 2024 | 15 | 263 | 248 | 0.41 | 0.02 | 0.05 | 0.50 |
Including | 54 | 132 | 78 | 0.52 | 0.01 | 0.05 | 0.60 | |
SLS-78 | 72 | 186 | 114 | 0.54 | 0.02 | 0.07 | 0.65 | |
Including | 93 | 171 | 78 | 0.58 | 0.02 | 0.08 | 0.70 | |
SLS-77 | 0 | 273 | 273 | 0.43 | 0.02 | 0.10 | 0.57 | |
Including | 21 | 129 | 108 | 0.56 | 0.02 | 0.10 | 0.70 | |
SLSE-36 | 0 | 325 | 325 | 0.40 | 0.02 | 0.05 | 0.51 | |
Including | 177 | 325 | 148 | 0.58 | 0.03 | 0.07 | 0.72 | |
Including | 291 | 325 | 34 | 0.76 | 0.03 | 0.08 | 0.90 | |
SLSP-04 | 30 | 204 | 174 | 0.25 | 0.02 | 0.06 | 0.35 | |
Including | 104 | 152 | 48 | 0.30 | 0.02 | 0.08 | 0.43 | |
SLSP-03 | 0 | 310 | 310 | 0.10 | 0.01 | 0.04 | 0.14 | |
SLST-03 | 16 | 1044 | 1028 | 0.24 | 0.01 | 0.03 | 0.30 | |
Including | 646 | 958 | 312 | 0.51 | 0.02 | 0.06 | 0.62 |
Notes to table: True widths are interpreted to be very close to drilled widths due to the bulk-porphyry style mineralized zones at Warintza.
Table 2 – Collar Locations
Hole ID | Easting | Northing | Elevation (m) |
Depth (m) |
Azimuth (degrees) | Dip (degrees) |
SLS-79 | 800197 | 9648470 | 1340 | 263 | 270 | -88 |
SLS-78 | 800197 | 9648469 | 1340 | 220 | 270 | -65 |
SLS-77 | 800439 | 9648493 | 1271 | 324 | 320 | -85 |
SLSE-36 | 801529 | 9647848 | 1154 | 325 | 220 | -85 |
SLSP-04 | 799364 | 9647811 | 1526 | 309 | 145 | -60 |
SLSP-03 | 799349 | 9647450 | 1627 | 310 | 40 | -65 |
SLST-03 | 800192 | 9647550 | 1592 | 1123 | 330 | -50 |
Notes to table: The coordinates are in WGS84 17S Datum.
Endnotes
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) has issued a statement to address false and misleading claims made by anti-mining NGOs regarding the social license of its Warintza Project in southeastern Ecuador. The company emphasizes that the Warintza Project resides on the ancestral lands of the Warints and Yawi communities, which have been officially registered and defined by the Ecuadorian government since 2002. These communities are the sole legal entities with rights and authority over these lands.
The International Labor Organization has recognized the Warints and Yawi as the sole titleholders of their ancestral lands. It has also acknowledged the legality of the Strategic Alliance, a governance structure created by Solaris to ensure community consent for the Warintza Project. This Alliance is managed by an Advisory Board of Directors comprising company representatives and democratically elected members from each community.
The Ecuadorian Ministry of Environment has conducted two consultation processes, confirming that the Warints and Yawi communities are directly influenced by the Warintza Project. These consultations have successfully facilitated the project’s progression from initial exploration to advanced exploration, following an Environmental Impact Assessment and the issuance of an Environmental License.
Solaris has obtained explicit consent for the project from the Warints and Yawi through formal community agreements. These agreements include an Impact and Benefits Agreement signed in 2020 and subsequently updated in 2022 and 2024 to reflect the project’s growth and commitment to its host communities. Notably, all surrounding communities contribute employees to the project, and many have expressed interest in partnering with Solaris regarding their own lands.
In March 2024, Solaris signed a trilateral cooperation agreement with the Interprovincial Federation of Shuar Centers (FICSH), the highest authority representing 143,000 Shuar indigenous people, and the Alliance for Entrepreneurship and Innovation of Ecuador. This agreement was signed in the presence of senior Ecuadorian government officials. Mr. David Tankamash, President of FICSH, commented at the time, “We support the Warints and Yawi communities and reject the efforts of foreign NGOs who act against the will and interest of our members.”
Solaris cautions shareholders and investors against the misinformation propagated by NGOs and other third parties. The company reiterates its commitment to transparency and encourages interested parties to seek accurate information directly from them.
Mr. Froilan Juank, President of the Yawi Shuar Center, commented: “We are the legitimate registered owners of the Ancestral Lands on which the Warintza Project resides and we have the right and have chosen, through our General Assembly, to participate in the Project through our Strategic Alliance and Impact and Benefits Agreement.”
Mr. Agustin Kayak, Trustee of the Warints Shuar Center, stated: “We and the Yawi community have decided to move forward with the Warintza Project. We are the owners of the lands where Warintza is located. We work together, the two communities of Warints and Yawi, for the well-being and development of our people.”
Mr. Emmanuel Delaune, Manager of Ecuadorean state-owned mining company, Empresa Nacional Minera, stated: “Solaris is an example to follow with its Warintza Model, which contributes to the local development of the Shuar communities through transparency, citizen participation, environmental stewardship and social development. These are the principles by which Solaris has earned the necessary credentials to operate in this area of Ecuador.”
Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR), has reported the discovery of significant precious metal deposits, which have substantially expanded the known area of epithermal-style mineral alteration. Initially concentrated in the Caya area, this mineralization has now been traced through the adjacent Mateo target and several kilometers further south. The expansion was identified through reconnaissance rock-chip sampling in the newly explored southern region. This sampling program yielded impressive results, with assays revealing up to 11,570 grams per tonne of silver (g/t Ag) and 12.3 grams per tonne of gold (g/t Au) across a 30-centimeter section of breccia outcrop.
These findings represent a major breakthrough in Solaris’ exploration activities at the Warintza Project. In response to these promising results, the company has intensified its fieldwork efforts to further delineate and refine potential drilling targets. Solaris anticipates commencing exploration drilling in this newly discovered area either towards the end of the third quarter or early in the fourth quarter of 2024.
Highlights from the results are as follows:
Solaris Resources Inc. (TSX:SLS)(NYSEAmerican:SLSR) has announced an expansion of its 2024 drilling program at the Warintza Project in southeastern Ecuador, doubling the planned meterage from 30km to 60km. The expansion is supported by the company’s recent financing and significant productivity improvements resulting from past infrastructure investments, improved logistics, and optimized processes at the project site.
Mr. Javier Toro, Chief Operating Officer, commented in a press release: “We are very pleased to have doubled the planned drilling for the Warintza project which will contribute to future growth and improved confidence in resources while also providing technical data for mine design and mine planning purposes to support technical studies. The forthcoming mineral resource estimate update in July will reflect two years of additional drilling from the prior estimate in 2022, with drilling continuing through the end of the year.”
The company has reported additional drill results as its 2024 drilling program ramps up. Drill hole SLSE-33, collared on the southern margin of Warintza Southeast and drilled at a steep inclination northeast, returned 81m of 0.73% CuEq¹ from near surface within a broader interval of 544m of 0.50% CuEq¹ from surface, bottoming in mineralization. SLSE-35, collared from a central platform at Warintza East and drilled east, returned 189m of 0.50% CuEq¹ from surface within a broader interval of 580m of 0.42% CuEq¹, remaining open in mineralization with the last 10m averaging 0.41% CuEq¹.
Solaris Resources has been able to ramp up drilling with six rigs completing 7.7 km in May, and a seventh rig is expected to be added soon. The company aims to challenge the prior peak drilling rate achieved with 12 rigs in 2021, primarily due to improved logistics from infrastructure investments, construction of on-site facilities, and trail networks connecting new drilling platform locations, along with process optimization.
The expanded drilling program will target open lateral extensions of mineralization beyond the pit, including into the Patrimonio target area, improve drilling density, and support technical studies. The company is also on track to release an updated mineral resource estimate in early July.
Ongoing regional exploration efforts have expanded the footprint of epithermal-style mineral alteration from the Caya area into the adjacent Mateo porphyry target, located 6km east of the Warintza cluster. Field crews have also been active on the newly-acquired adjacent claims, with further details to be provided in subsequent releases.
To ensure the accuracy of the sample assay results, Solaris Resources Inc. has implemented a quality control/quality assurance (QA/QC) program that includes the insertion of blind certified reference materials (standards), blanks, and field duplicate samples. Logging and sampling are completed at a secured company facility located on site, with drill core being cut in half on site and samples securely transported to ALS Labs in Quito. Sample pulps are sent to ALS Labs in Lima, Peru, and Vancouver, Canada, for analysis, with selected pulp check samples sent to Bureau Veritas lab in Lima, Peru, for independent verification. Both ALS Labs and Bureau Veritas lab are independent of Solaris Resources Inc.
Table 1 – Assay Results
Hole ID | Date Reported | From (m) |
To (m) |
Interval (m) |
Cu (%) |
Mo (%) |
Au (g/t) |
CuEq¹ (%) |
SLSE-35 | June 11, 2024 | 0 | 580 | 580 | 0.33 | 0.02 | 0.04 | 0.42 |
Including | 0 | 189 | 189 | 0.41 | 0.02 | 0.04 | 0.50 | |
SLSE-34 | 0 | 522 | 522 | 0.28 | 0.02 | 0.03 | 0.36 | |
Including | 66 | 318 | 252 | 0.31 | 0.02 | 0.03 | 0.40 | |
SLSE-33 | 6 | 550 | 544 | 0.40 | 0.02 | 0.06 | 0.50 | |
Including | 54 | 135 | 81 | 0.60 | 0.02 | 0.07 | 0.73 |
Notes to table: True widths are interpreted to be very close to drilled widths due to the bulk-porphyry style mineralized zones at Warintza.
Table 2 – Collar Locations
Hole ID | Easting | Northing | Elevation (m) |
Depth (m) |
Azimuth (degrees) |
Dip (degrees) |
SLSE-35 | 801485 | 9648192 | 1129 | 580 | 90 | -80 |
SLSE-34 | 801483 | 9648241 | 1170 | 523 | 40 | -80 |
SLSE-33 | 801532 | 9647848 | 1154 | 550 | 50 | -85 |
Notes to table: The coordinates are in WGS84 17S Datum.
Endnotes
Solaris Resources (TSX:SLS; NYSEAmerican:SLSR) has announced the successful closing of its bought deal equity offering and a private placement, raising aggregate gross proceeds of approximately $53.9 million. The funds will be used to support the company’s ongoing exploration and development activities at its flagship Warintza Project in southeastern Ecuador and other regional exploration initiatives.
The bought deal equity offering, which closed on June 10, 2024, saw the company issue 8,222,500 common shares, including the full exercise of the over-allotment option by the underwriters, at a price of $4.90 per share. The offering generated gross proceeds of $40,290,250 and was completed pursuant to an underwriting agreement dated May 27, 2024, between Solaris Resources Inc. and a syndicate of underwriters led by National Bank Financial Markets, RBC Capital Markets, and BMO Capital Markets, acting as Joint Bookrunners.
In addition to the bought deal, the company also closed a private placement, issuing 2,795,102 common shares at the same price of $4.90 per share, raising an additional $13,696,000 (US$10,000,000). This private placement represents the drawdown of the second equity tranche of Solaris Resources Inc.’s previously announced offtake financing package.
The net proceeds from both the bought deal and private placement will be allocated to fund an expanded exploration and infill drilling program at the company’s Warintza Project, which boasts a world-class copper resource with significant expansion and discovery potential. The funds will also be used to enhance regional exploration activities, including fieldwork on ten recently awarded exploration concessions, as well as for working capital and general corporate purposes.
Solaris Resources Inc. continues to advance its impressive portfolio of copper and gold assets in the Americas. In addition to the Warintza Project in Ecuador, the company holds a series of grass roots exploration projects with discovery potential in Peru and Chile, and maintains significant leverage to increasing copper prices through its 60% interest in the La Verde joint-venture project with a subsidiary of Teck Resources in Mexico.
The successful completion of the bought deal equity offering and private placement demonstrates the strong investor confidence in Solaris Resources Inc.’s assets and growth strategy. The company remains well-positioned to capitalize on the growing global demand for copper and other precious metals, while continuing to advance its exploration and development activities in the Americas.
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) on April 17, 2024 reached a significant milestone for its flagship Warintza Copper Project in southeastern Ecuador. The company signed an updated Impact and Benefits Agreement (IBA) with the Shuar communities of Warints and Yawi, reflecting the continued growth and advancement of the project and reaffirming the communities’ support for responsible development. Here’s what’s behind the agreement and why it is such a major milestone for the project and the country.
The updated IBA followed the Ecuadorian government’s publication of a manual demanding prior consultation with surrounding communities for existing and new mining projects. This agreement built upon the strategic alliance formed between Solaris and the Shuar communities in August 2019, which has fostered direct and transparent dialogue regarding all project-related activities.
The Warintza deposit, discovered by David Lowell in 2000, sat dormant for two decades due to a breakdown in social acceptance from local communities. In mid-2019, Solaris undertook extensive dialogue to understand and resolve the root causes of conflict, leading to the signing of initial impact and benefits agreements in 2020 and 2022.
Key highlights of the updated IBA include explicit community consent for the Warintza Project, legally binding and ensuring the communities are informed and engaged throughout the project’s lifecycle. The agreement also includes commitments and benefits to the communities, such as impact mitigation measures, local employment and training opportunities, education and skills training programs, investments in community infrastructure, and financial benefits and compensation for the use of ancestral lands.
The IBA is governed by an elected Board of Directors that operates as a regional task force, monitoring project activities, communicating with employees, and ensuring accountability of the commitments made between the State, Community, and Company.
Solaris president and CEO Daniel Earle stated, “The signing of this updated impact and benefits agreement marks a significant milestone in the social advancement of the Warintza project through our pioneering participatory mining model for sustainable resource development.”
The timeline of agreements between Solaris and the Shuar communities includes a Memorandum of Understanding signed in January 2019, the first Impact and Benefits Agreement in September 2020, an updated agreement in March 2020 for project advancement and scope expansion, and the completion of an Environmental Impact Assessment on the project in late 2022.
The updated IBA ultimately demonstrates Solaris Resources’ commitment to responsible and inclusive mining practices, ensuring that local communities are involved and benefit from the Warintza Copper Project’s advancement.
Ms. Sonsoles García, Minister of Production, Foreign Trade, Investment and Fisheries, commented, “We value this initiative of Solaris because it strengthens positive community relations and provides for the integration of the local population in productive and sustainable activities. This allows the inclusion of a traditionally displaced population, which is a priority for us. It is also aligned with the priority we have as a National Government of territorial development and good use and management of resources.”
Mr. Daniel Earle, President & CEO, commented, “The signing of this updated IBA builds on the foundation of good faith dialogue and trust that led to the formation of a Strategic Alliance partnership with our host communities and original IBA in 2020. This marks a significant milestone in the social advancement of the Warintza Project through our pioneering Participatory Mining model for sustainable resource development.”
Mr. Agustin Kayuk, leader of the Shuar Warints Center and member of the Board of Directors of the Strategic Alliance, commented, “The signing of this updated IBA strengthens the working relationship with Solaris and brings greater opportunities for the development of our communities. The decision is supported by a permanent relationship with the Company based on mutual respect and transparent dialogue, as well as a history of positive impacts generated for our people. We look forward to continuing our relationship and playing an integral role in the advancement of the Project.”
Mr. Vicente Froilan Juank, leader of the Shuar Yawi Center and also a member of the Board of Directors of the Strategic Alliance, commented, “The updated IBA brings further support and new opportunities for our people. When Warintza advances, our communities advance with it. Since the signing of the inaugural IBA in 2020, and with the help of the Ecuadorian state, the local impacts in job creation, community infrastructure, and development of programs in health, education, skills training, entrepreneurship, and innovation have been evident in our daily lives.”
Solaris Resources (TSX:SLS) (NYSEAmerican:SLSR) has announced the termination of a previously proposed minority equity investment aimed at expanding the company’s Warintza Project in Ecuador.
The proposed investment, which would have supported both the growth of existing operations and the potential acquisition of a neighboring property, was initially announced four months ago. However, despite the anticipation of timely approval due to the minority nature of the investment and its focus on critical minerals, the transaction has not yet received the necessary regulatory clearance from Canadian authorities.
Solaris’ share price has also risen by over 35% since the initial announcement, making the terms of the investment, which included a 14% premium at the time, no longer financially advantageous for the company. This price increase, while positive in isolation, has been outpaced by similar companies in the sector due to the ongoing uncertainty surrounding the regulatory process in Canada.
The company has expressed disappointment in the delay, citing the evolved regulatory environment and heightened political sensitivity surrounding Canadian investments in foreign assets. The combination of these factors, coupled with the increasingly unattractive terms of the deal, has led Solaris to conclude that terminating the investment is the most prudent course of action to protect shareholder interests.
Despite this setback, Solaris remains financially secure, with sufficient funds to support its planned activities at the Warintza Project through 2025. This includes the ongoing exploration of a recently acquired 40,000-hectare area adjacent to the existing project site, which has already shown promising geological and geophysical similarities to the mineral-rich Warintza cluster.
Furthermore, the company has access to an additional US$40 million in funding through an existing offtake financing agreement. With these resources, Solaris intends to focus on maximizing shareholder value through a targeted strategy that prioritizes long-term growth and flexibility.
Solaris has also reiterated its commitment to the Warintza Project timeline, with an Environmental Impact Assessment expected to be delivered in the second half of 2024 and a Pre-Feasibility Study in the second half of 2025. These milestones are crucial steps in the development of the project, and Solaris remains optimistic about the potential of Warintza to become a significant source of critical minerals.
Solaris Resources Inc. (TSX:SLS)(NYSEAMERICAN:SLSR) has shared an operations update for its Warintza copper project in southeastern Ecuador. The update highlights improved productivity and cost savings under new Chief Operating Officer Javier Toro, as well as the appointment of top consultants to support the Environmental Impact Assessment (EIA) and Pre-Feasibility Study (PFS).
Mr. Javier Toro, COO, commented in a press release: “We are excited with the improvements we have made at site where our team is approaching record monthly drilling rates with significantly fewer rigs than at prior peaks. We are also pleased to be making progress in advancing studies and work programs to support the completion of the EIA in H2/24 and PFS in 2025. Warintza is a very unique project given its global scale and location in a mining district adjacent to infrastructure at low elevation.”
Drilling at Warintza continues to accelerate, with six rigs completing over 5,400 meters in April, close to setting a new monthly record for the project. Solaris has budgeted a minimum of 30 kilometers of resource growth and infill drilling for 2024. Some of these holes will also provide technical data for mine design and planning to support upcoming technical studies.
The updated mineral resource estimate remains on track for completion at the end of June and release in early July. It will be completed by leading porphyry specialist Mr. Mario E. Rossi of Geosystems International Inc., who also conducted the previous estimate.
Solaris has engaged ESSAM Cía. Ltda., an Ecuadorian environmental consulting firm accredited by Ecuador’s Ministry of Environment, to finalize and submit the EIA for the Warintza exploitation phase. ESSAM has experience supporting Ecuador’s largest copper and gold mines. The EIA submission is targeted for the second half of 2024, building on over three years of baseline environmental monitoring, data collection and studies.
To support the PFS planned for the second half of 2025, Solaris has appointed leading international consulting firms:
– Ausenco Engineering for metallurgical studies, process plant design, and infrastructure assessments
– Knight Piésold Consulting for detailed technical studies and engineering designs for the pit, waste rock facility, and tailings management facility
– AMC Consultants and Minsys Mining Systems for mine scheduling and trade-off studies to optimize mine plans
Infrastructure development, logistics optimization, and improved practices at the Warintza site have significantly increased productivity and efficiency. This has enabled a 26% reduction in drilling costs to US$229 per meter and generated substantial savings compared to the Q1 2024 budget.
As of March 31, Solaris held an unaudited cash balance of approximately US$29 million. An additional US$40 million is expected from the previously announced offtake financing package. These funds are expected to support the planned 2024 and 2025 work programs. Upon closing the strategic investment announced in January, Solaris plans to expand activities and continue the consolidation of the land package surrounding Warintza.
Solaris Resources (TSX: SLS)(NYSE:SLSR) has recently been awarded an option by Empresa Nacional Minera (ENAMI EP), Ecuador’s state-owned mining company, to acquire up to a 100% interest in 10 new exploration concessions. These concessions, covering approximately 40,000 hectares, are strategically located adjacent to the company’s existing Warintza Project and the San Carlos-Panantza porphyry copper-molybdenum deposits within the mineral-rich Zamora belt. This region is known for hosting some of Ecuador’s largest copper and gold mines to the south.
The newly acquired concessions are believed to hold significant potential for porphyry copper and epithermal gold deposits. This assessment is based on a comprehensive analysis of multiple layers of data, including Solaris’ extensive heliborne magnetic survey. The survey results, a portion of which is shown in Figure 2, reveal several promising indicators of mineral deposits.
Porphyry copper targets within the new concessions are characterized by open-ended annular magnetic highs surrounding magnetic lows and erosional depressions. These features are consistent with the outcropping deposits found within the Warintza porphyry cluster, suggesting a high likelihood of mineral presence.
Structural interpretation of the area supports the potential for epithermal gold deposits within dilational jogs and pull-apart basins. These geological settings are common for gold deposits in the Zamora belt and bear similarities to the Caya epithermal target, which was previously announced by Solaris in a press release dated April 23, 2024.
To expedite the exploration process, Solaris plans to deploy two field crews on the ground in May. These teams will begin conducting fieldwork to gather more detailed data and assess the mineral potential of the newly acquired concessions.
The terms of the agreement with ENAMI EP include an upfront payment of US$0.25 million, a proposed exploration program of up to US$25 million over the exploration phase, and the exclusive option for Solaris to acquire the claims from ENAMI EP at a price to be determined by independent experts. This agreement follows similar awards by ENAMI EP to subsidiaries of Barrick Gold Corporation and Hancock Prospecting Pty Ltd, which have committed to investing up to US$148 million in exploration programs in Ecuador.
Solaris’ acquisition of these new exploration concessions demonstrates the company’s commitment to expanding its presence in Ecuador’s thriving mining sector. With the promising potential for porphyry copper and epithermal gold deposits, Solaris is well-positioned to capitalize on the region’s mineral wealth and contribute to the country’s economic growth.
As fieldwork commences and more data becomes available, the mining industry and investors alike will be closely monitoring Solaris’ progress in unlocking the value of these new exploration concessions.
Solaris Resources (TSX:SLS) (NYSEAMERICAN:SLSR) has shared the initial results from its 2024 drilling efforts and provided an update on exploration at its Warintza Project in southeastern Ecuador. These early results include intersections of 150 meters of 0.67% copper equivalent (CuEq) within a broader section of 384 meters of 0.51% CuEq, and another segment measuring 284 meters of 0.53% CuEq starting near the surface.
The drilling operations, which intensified during the first quarter despite the rainy season, are part of a large-scale plan to both expand and upgrade the mineral resources at the project. With six rigs currently operating across multiple zones including Warintza Central, East, and Southeast, the company expects the drilling to continue throughout the year. This effort is also accompanied by exploratory drilling at the newly discovered Patrimonio site and regional exploration at the promising Caya epithermal gold target.
In terms of the 2024 drilling campaign specifics, January saw 700 meters drilled, which increased to 1,800 meters in February and 3,800 meters in March. The company anticipates reaching 5,200 meters by the end of April. Overall, Solaris plans to complete at least 30 kilometers of drilling this year, with an updated report on mineral resources expected by the end of June.
Solaris has secured the necessary funds for its 2024 and 2025 exploration programs through an offtake financing package announced in December last year. As of the end of 2023, the company reported having around US$39 million in cash and equivalents. It expects an additional US$40 million from its financing activities, further bolstered by a strategic investment finalized in January 2024. However, the details of this investment are still under review by Canadian regulators.
In addition to its drilling program, Solaris is also focusing on the Caya epithermal gold target. Recent field work at this site has highlighted a 5 km by 3 km gold anomaly located northeast of Warintza East. Soil samples have outlined a significant area of gold and other pathfinder elements indicative of epithermal mineral deposits. The alteration patterns and mineral assemblages found at Caya suggest a high-sulfidation epithermal system, a style of mineralization known for hosting significant gold deposits.
The exploration team has recently expanded its soil sampling grid to include areas affected by historical artisanal mining, which could offer insights into the broader mineral potential of the region. The company plans to use additional spectral analysis to better understand the alteration patterns in the volcanic sediment layers covering the target area. Further details on these findings are expected to be reported in June.
Highlights from the results are as follows:
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) and the Shuar communities of Warints and Yawi have recently signed an updated Impact and Benefits Agreement (IBA) for the Warintza Project. This agreement signifies a step forward in the project’s evolution, reflecting its continued growth and advancement.
The IBA is a key part of Solaris’ Community Social Relations (CSR) program, recognized as a leading practice within the Ecuadorian mining industry. It guarantees the Shuar communities’ backing for Warintza throughout all stages, from exploration and development to production. Importantly, the agreement also formalizes commitments to several key areas.
First, that Solaris Resources will uphold the social and cultural practices of the Shuar communities. Second, the company will take steps to minimize or eliminate any negative impacts the project may have. This could include environmental or social disruptions. To maximize community participation in the project, Solaris will provide opportunities for employment, education, and skills training. The agreement also includes financial benefits for the Shuar communities.
The Warintza Project is expected to deliver significant advantages to local communities. These include job creation and business development opportunities. The project will also improve access to appropriate healthcare, including emergency services. Additionally, the agreement includes measures to develop community infrastructure and provide educational and skills training programs.
The updated IBA also fosters greater involvement from the Shuar communities in the project’s development. This collaboration establishes a framework to address shared concerns regarding the project’s impact on their lives and the well-being of their communities.
Beyond local benefits, the Warintza Project is anticipated to generate tax revenue for the Ecuadorian government. Solaris has reiterated its commitment to operating sustainably and responsibly by minimizing environmental impact and maintaining open communication with local communities.
Ms. Sonsoles García, Minister of Production, Foreign Trade, Investment and Fisheries, commented, “We value this initiative of Solaris because it strengthens positive community relations and provides for the integration of the local population in productive and sustainable activities. This allows the inclusion of a traditionally displaced population, which is a priority for us. It is also aligned with the priority we have as a National Government of territorial development and good use and management of resources.”
Mr. Daniel Earle, President & CEO, commented, “The signing of this updated IBA builds on the foundation of good faith dialogue and trust that led to the formation of a Strategic Alliance partnership with our host communities and original IBA in 2020. This marks a significant milestone in the social advancement of the Warintza Project through our pioneering Participatory Mining model for sustainable resource development.”
Mr. Agustin Kayuk, leader of the Shuar Warints Center and member of the Board of Directors of the Strategic Alliance, commented, “The signing of this updated IBA strengthens the working relationship with Solaris and brings greater opportunities for the development of our communities. The decision is supported by a permanent relationship with the Company based on mutual respect and transparent dialogue, as well as a history of positive impacts generated for our people. We look forward to continuing our relationship and playing an integral role in the advancement of the Project.”
Mr. Vicente Froilan Juank, leader of the Shuar Yawi Center and also a member of the Board of Directors of the Strategic Alliance, commented, “The updated IBA brings further support and new opportunities for our people. When Warintza advances, our communities advance with it. Since the signing of the inaugural IBA in 2020, and with the help of the Ecuadorian state, the local impacts in job creation, community infrastructure, and development of programs in health, education, skills training, entrepreneurship, and innovation have been evident in our daily lives.”
Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) is gearing up for its debut on the NYSE American. The move involves the discontinuation of its listing on the OTCQB Venture Market, transitioning the trading of its common shares to a more prominent platform under the new ticker symbol “SLSR” starting April 19, 2024. This strategic shift aims to provide Solaris with enhanced visibility and accessibility to a broader base of institutional and retail investors.
The company, which will continue to be listed on the Toronto Stock Exchange under the ticker “SLS”, does not require its shareholders to take any immediate actions regarding this transition. However, those who have purchased shares through the OTCQB are advised to check their accounts to ensure their holdings are updated with the new ticker symbol following the change.
Recent Developments and Strategic Investments
Earlier this year, on January 11, Solaris announced a significant financial boost through a private placement investment from Zijin Mining Group Co., Ltd., amounting to approximately $130 million. This deal resulted in the issuance of over 28 million common shares at a price of $4.55 each, a 14% premium over the closing price on the TSX the day before the agreement was finalized. This transaction marked a substantial endorsement from Zijin, which now holds about 15% of Solaris’ common shares on a fully diluted basis.
Daniel Earle, President and CEO of Solaris, praised the partnership, highlighting Zijin’s remarkable growth and expertise in the mining sector, which spans across 16 countries. The collaboration is set to advance the development of Solaris’s flagship Warintza Project in southeastern Ecuador, with funds also earmarked for general corporate purposes.
The closing of the private placement is contingent upon several conditions, including approvals from the TSX, under the Investment Canada Act, and from relevant authorities in China. Furthermore, the agreement grants Zijin the right to nominate a director to Solaris’s board as long as it maintains at least a 5% shareholding. Zijin also secures rights to maintain its ownership percentage through future securities purchases under specific conditions.
Trilateral Cooperation for Community Development
Additionally, on March 1, Solaris Resources further demonstrated its commitment to sustainable practices by entering a trilateral cooperation agreement aimed at supporting the Shuar communities in Ecuador. This initiative, involving the Interprovincial Federation of Shuar Centers and the Alliance for Entrepreneurship and Innovation, focuses on various developmental programs ranging from health and education to sustainable mining practices.
The collaboration aligns with ongoing efforts to promote economic and social advancement within these indigenous territories, which are integral to the Warintza Project’s success. The comprehensive support from this agreement encompasses health care, education, and business development programs tailored to the needs of the Shuar people, fostering a supportive relationship between the corporation and the community.
As Solaris Resources transitions to a new stage of corporate and community development, the company remains focused on leveraging strategic partnerships and maintaining its commitment to sustainable mining practices, positioning itself for future growth in the global mining sector.
Solaris Resources (TSX: SLS) (OTCQB:SLSSF), on March 1, 2024, entered into a trilateral cooperation agreement with the Interprovincial Federation of Shuar Centers (FICSH) and the Alliance for Entrepreneurship and Innovation (AEI) of Ecuador. The signing ceremony took place during the Prospectors & Developers Association of Canada (PDAC) convention. What does the agreement mean for the company and the communities in which its Warintza Project operates?
The agreement aims to foster economic and social development in Shuar communities represented by FICSH, including the Warints and Yawi communities, which host Solaris’ Warintza Project on their lands. The collaboration will focus on programs in health, education, skills training, entrepreneurship, innovation, and sustainable mineral resource development.
FICSH, established by the Ministry of Social Welfare of Ecuador in 1964, is the largest and highest authority among Shuar indigenous organizations. It represents 50 associations, comprising 500 Shuar communities and approximately 143,000 Shuar indigenous people.
AEI is an independent non-profit organization dedicated to promoting entrepreneurship and innovation as the foundation for Ecuador’s productive development. Solaris has been a member of AEI’s network of public, private, and academic actors since 2021.
Mr. Froilan Juank, President of Yawi Center and member of the Board of Directors of the Strategic Alliance, commented in a press release: “The Shuar communities of Warints and Yawi support this agreement which follows from our request for FICSH to represent us and our interests and extend benefits to other member communities. We reject the false statements made by foreign non-governmental organizations (NGOs) and the Shuar Arutam People’s Associations (PSHA) which ignore our voice and speak against our interests. We are the legitimate registered owners of the Ancestral Lands on which the Warintza Project resides and we have the right and have chosen, through our General Assembly, to participate in the project through our Strategic Alliance and Impact and Benefits Agreement.”
Mr. David Tankamash, President of FICSH, commented in a press release: “Our work aims to improve the quality of life and access to opportunities for our member Shuar Centers. We support the Warints and Yawi communities and reject the efforts of foreign NGOs who act against the will and interest of our members. This agreement, which has been approved by the will of the FICSH General Assembly, is important for inclusive and sustainable mineral resource development. The Solaris model proves the Shuar nation can partner in development opportunities on our lands. We deserve the opportunities indigenous nations have in other parts of the world and foreign NGOs must respect our choices.”
The key programs under the cooperation agreement include:
The agreement also demonstrates Solaris Resources Inc.’s commitment to engaging with local communities and promoting sustainable development in the regions where it operates.
The copper mining industry plays a crucial role in the global economy, with South America being a significant contributor to the world’s copper supply. As the demand for copper continues to grow, driven by the increasing need for renewable energy and electric vehicles, exploration projects in this region have gained momentum along with some of the biggest investment interest in the past few years . In 2024, there are a few important companies actively engaged in copper exploration across various countries in South America, with promising results and future prospects.
Freeport McMoRan, a leading copper producer, operates the Cerro Verde copper mine in Peru. However, the company is projected to face challenges in 2024, with sales volumes expected to decrease to 1.13Blb (512,559t) of copper, compared to 1.20Blb sold in 2023. This decline is attributed to lower grades at Cerro Verde and mill recoveries falling below those in the same period of 2022. Despite these challenges, Freeport McMoRan remains committed to its operations in Peru and continues to explore opportunities for growth and optimization.
Lundin Mining Corporation has demonstrated consistent performance in its copper exploration and production activities across South America. In the second quarter of 2023, the company produced 10,697 tonnes of copper and approximately 13,000 ounces of gold in concentrate. The Chapada mine in Brazil, one of Lundin’s key assets, achieved higher recoveries, resulting in increased copper production compared to the prior year quarter.
Looking at Lundin’s historical performance, the company produced 249,659 tonnes of copper on a consolidated basis in 2022, which was within the guidance range of 250,000 to 274,000 tonnes. In 2023, Lundin Mining achieved a record consolidated copper production of 314,798 tonnes, surpassing the guidance range of 300,000 to 320,000 tonnes.
For the three-year period from 2024 through 2026, Lundin Mining has provided production guidance for copper, with a range of 366,000 to 400,000 tonnes. This guidance is largely in line with the company’s 2023 production guidance, indicating a likely stable outlook for Lundin’s copper exploration and production.
Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has proven itself as one of the most important exploration companies in South America over the past few years, with significant developments at its Warintza Project in Ecuador. The company is preparing for a major mineral resource estimate update, expected in late Q2 2024, which will leverage extensive drilling data to potentially enhance resource size and grade at Warintza Central, East, and Southeast.
In a strategic move, Solaris also announced plans to list its common shares on the NYSE American stock exchange, securing funding for exploration and development programs in 2024 and 2025. Additionally, the company received a significant investment from Zijin Mining, a major Chinese company, which provided crucial capital for ongoing activities at the Warintza Project and highlighted the project’s potential.
Zijin Mining’s investment, announced on January 11, 2024, involves the purchase of approximately 28,481,289 common shares of Solaris Resources at a subscription price of $4.55 per share, representing a 14% premium to the closing price of the common shares on the Toronto Stock Exchange (TSX) on January 10, 2024. Upon closing of the investment, Zijin Mining will own approximately 15% of the common shares on a fully diluted basis.
The investment from Zijin Mining is expected to be used by Solaris Resources to advance and develop the Warintza copper project primarily. This strategic partnership provides financial security for Solaris Resources and the expertise and growth potential of Zijin Mining, one of the most successful major mining companies in the world.
Solaris Resources continues active drilling with six rigs, focusing on resource expansion, infill drilling, and exploration beyond the current resource zones\[2\].
Copper exploration in South America remains strng in 2024, with companies like Freeport McMoRan, Lundin Mining Corporation, and Solaris Resources actively engaged in resource expansion, strategic partnerships, and sustainable operations. As the demand for copper continues to grow, driven by the global shift towards renewable energy and electric vehicles, these projects will be watched ever more closely for major announcements.
The Warintza Project in southeastern Ecuador, operated by Canadian copper mining company Solaris Resources (TSX:SLS) (OTCQB:SLSSF), has become a model for sustainable mineral exploration and development. Solaris adheres to a “Participatory Mining” model that engages government, communities, and the company in an alliance governing the strategic socio-economic development alongside the project. This inclusive approach is based on transparency, dialogue, and building trust between stakeholders with the goal of improving quality of life in a sustainable manner.
For example, the company has explicit community consent for the Warintza Project through legally-binding community agreements with the Warints and Yawi Shuar communities that host the Project on their Ancestral Lands. These Ancestral Lands are legally-defined and have been registered with the Government of Ecuador since 2002. The timeline of agreements includes:
This formal consent demonstrates the strong relationship and trust built between Solaris and the local communities through open dialogue and mutually beneficial partnerships. The participatory model ensures the indigenous populations are informed, engaged, and ultimately benefit from the development of their ancestral territory.
Solaris’ commitment to sustainability is also embedded in its policies and participation in the UN Global Compact. They strive to minimize environmental impacts by going beyond required guidelines, using robust monitoring, and integrating protection into daily practices. Compliance with regulations, biodiversity management, community involvement, efficient resource use, responsible waste management, and education on best practices foster environmental stewardship. Proactive efforts like their greenhouse gas reduction plan and partnerships demonstrate Solaris’ dedication.
Central to the sustainability strategy is the Citizen Participation Process where local populations are informed of potential impacts and can provide input that gets incorporated into environmental studies. This participatory mechanism for consultation and dialogue ensures community engagement and consent, legitimizing the project. Solaris maintains high corporate governance standards so decisions align with their core values of sustainable development.
The 2024 drilling program at Warintza recently commenced, with plans to have six rigs operating by February. An updated mineral resource estimate is expected by late Q2/24, likely showing major growth. Drilling will continue beyond this as permitted, with some holes serving other purposes like metallurgical testing. Exploration is also underway regionally to define additional drill targets.
Solaris also recently closed US$40 million in financing, including equity and initial drawdown of their debt facility, to fund 2024-2025 baseline programs. The major C$130 million strategic investment by Zijin Mining Group will allow aggressive expansion of programs this year to significantly advance the project. The partnership with successful global miner Zijin will provide technical expertise and capacity to realize Warintza’s potential as a premier copper district.
Solaris’ ethical, sustainable model aligned with their financing strategy demonstrates a promising approach for the future of mineral development. The Warintza Project aims to create value responsibly and improve local communities, setting a positive example for the industry.
Solaris Resources (TSX:SLS) is preparing for a significant update to its mineral resource estimate for its flagship Warintza Project in southeastern Ecuador. The announcement, made in early January, comes in the middle of an ongoing drilling program and broader developments aimed at advancing the project towards potential development. What’s next for the project, and what are investors waiting for in 2024?
Mineral Resource Estimate Update in Sight
Investors and stakeholders are now waiting for the updated mineral resource estimate, expected in late Q2 2024. This revision will leverage nearly double the drilling data compared to the previous estimate, potentially leading to substantial growth in resource size and grade. The focus areas include Warintza Central, East, and Southeast, where drilling has targeted resource expansion and infill drilling.
A key aspect of the update is the incorporation of a “common pit shell,” which considers the economic viability of extracting all resources within a defined open pit. This approach provides a more realistic picture of the potentially mineable portion of the deposit and is will be critical for future development planning.
Active Drilling Campaign
Solaris is currently executing an ambitious drilling program for 2024, utilizing six drill rigs. This program serves a dual purpose:
Beyond Warintza Central, exploration efforts are ongoing in other prospective areas within the project’s broader footprint. These regional activities add another layer to the ongoing exploration story at Warintza.
NYSE American Listing and Financial Backing Signal Confidence
In another significant development, Solaris announced plans to list its common shares on the NYSE American stock exchange. This move is expected to broaden the company’s investor base, particularly attracting interest from the U.S. market.
Financially, Solaris secured funding for its 2024 and 2025 exploration and development programs, ensuring continued momentum at Warintza. This financial backing highlights the company’s commitment to advancing the project and realizing its full potential.
The company’s progress at the Warintza Project received a significant boost in January 2024 with a strategic investment of $130 million from Zijin Mining Group Co., Ltd., a major Chinese mining company. This financing agreement provides crucial capital for ongoing exploration and development activities and represents a strong vote of confidence in the project’s potential.
Under the terms of the deal, Zijin acquired approximately 28.5 million common shares of Solaris at a subscription price of $4.55 per share, representing a 14% premium to the market price at the time. This translates to an ownership stake of roughly 15% for Zijin, granting them a seat on the Solaris board of directors.
The importance of this financing is threefold:
Overall, the Zijin financing deal represents a critical milestone for Solaris and the Warintza Project and secures the necessary resources for continued progress.
The Warintza Project also holds the potential to bring significant benefits to Ecuador. Responsible development post-exploration could create many more jobs, stimulate the local economy, and generate tax revenue for the government. Solaris has continued to emphasize its commitment to operating in a sustainable and responsible manner, minimizing environmental impact and engaging with local communities.
Looking Ahead: Milestones and Continued Progress Expectations
The release of the updated mineral resource estimate in late Q2 2024 stands as a major milestone for the Warintza Project. This event will provide valuable insights into the project’s size, grade, and economic potential. Depending on the results, further studies such as preliminary economic assessments or feasibility studies could follow, outlining a potential path towards development.
Solaris remains focused on advancing the Warintza Project through ongoing exploration, resource definition, and potential future development activities. With a significant update on the horizon, active drilling underway, and a secured financial position, the world is watching for the next news update.
Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has launched an extensive 2024 drilling and exploration program at its Warintza copper-gold project in southeastern Ecuador, aiming to substantially increase the current mineral resource estimate, make additional new discoveries, and advance infrastructure and engineering studies to further derisk what it hopes will become Ecuador’s next major mining operation.
With six drill rigs slated to be spinning by month’s end, Solaris is wasting no time following up on the successes of last year’s drilling efforts which outlined wide zones of high-grade mineralization over a 5km strike. The priority targets are the open-ended higher grade core at Warintza Central, extending the strike length and depth at the Warintza East discovery, and delineating an initial resource at the Warintza Southeast discovery made last fall.
An updated mineral resource estimate incorporating almost twice the results of the previous estimate is expected by late Q2. The additional data, especially from East and Southeast, could substantially increase the overall resource scale and grade. Warintza’s position among the ranks of major global copper projects may soon be cemented if this is the case.
But Solaris isn’t resting on this plan, with plans to keep drilling through the updated resource estimate and an aim of completing at least 30,000 additional meters focusing on further growth opportunities by yearend 2024. This includes tightening the drill pattern in some areas with room for optimization, as well as collecting data for preliminary metallurgical, geotechnical and hydrological studies to support future scoping and feasibility studies.
On a parallel track beyond the main Warintza deposits, field crews have mobilized to several earlier-stage regional targets with hopes of making Solaris’ next big porphyry discovery elsewhere on its large concession package outside of Warintza Central. Initial soil sampling and mapping programs over the past two years have revealed a number of intriguing copper-molybdenum anomalies that could indicate the presence of additional blind porphyries underlying the sandstone cover prevalent in the basin.
The immediate focus is on the Mateo prospect, where recent sampling outlined a sizable 3km x 1.4km copper-in-soils anomaly coincident with sandstone outcrops. Further infill soil sampling and possibly some initial geophysical surveys are planned over the coming months to refine the targets for an eventual maiden drill campaign later this year or early 2025. Several other early-stage regional targets are also on the agenda for Solaris’ exploration team.
With a recent $130 million strategic investment from China’s Zijin Mining Group now in hand, Solaris is well-funded to potentially ramp up and accelerate its plans over the next two years. In fact, beyond the six rigs currently operating, the company has targets to get as many as ten rigs spinning by the end of 2024 to systematically test the full breadth of what it has now in its crosshairs – a district-scale opportunity centered around Warintza but extending across its vast concession holdings in Ecuador.
Zijin identified world-class potential after taking a 15% stake in Solaris Resources, and, in addition to providing critical capital, Zijin also brings substantial technical expertise and experience to the table as one of China’s preeminent mining firms operating globally.
With renewed financial backing and drills now turning, Solaris Resources is intent on methodically unlocking the full promise of its Ecuadorian property package in 2024. The company’s near-term resource growth drilling, regional exploration campaigns, infrastructure studies, and new high-profile partnership with Zijin Mining set the stage for what could prove a potentially company-making year. Investors can likely expect a steady stream of news flow over the coming year, and further updates to this copper growth story.
Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has announced the start of its 2024 drilling program at the Warintza copper-gold project in southeastern Ecuador. The company plans to have six drill rigs operating by the end of February as part of an aggressive exploration and resource expansion campaign this year.
The first drill rig has begun turning at the Warintza East zone, with a goal of significantly increasing the project’s mineral resource estimate. An updated estimate is expected in late Q2 2024, incorporating nearly double the previous meterage. Solaris aims to demonstrate major growth potential at the Warintza Central, East and Southeast zones within a common open pit shell.
Drilling will continue beyond the updated resource estimate, with a focus on further expanding mineralization and infill drilling covering at least 30 square kilometres. Additional permitted platform locations will enable optimized drill hole patterns. Some holes will serve the dual purpose of collecting data for metallurgical, geotechnical, and hydrogeological studies to support mine design.
Meanwhile, field exploration programs are underway to define new drill targets at prospective areas around the Warintza project. This includes follow-up sampling at the Mateo prospect, where previous soil sampling outlined a 3-kilometre by 1.4-kilometre copper-molybdenum anomaly surrounding a sandstone unit that may overlay a buried porphyry system.
On the financing side, Solaris has closed US$40 million in funding, including US$10 million in equity financing and the first US$30 million tranche of its previously announced US$80 million offtake debt facility. This financing package will support baseline exploration and development programs in 2024 and 2025.
Upon closing a recently announced C$130 million strategic investment by Zijin Mining Group Co. Ltd., Solaris plans to aggressively expand its drilling and exploration activities in 2024 and 2025. The company will aim to have ten drill rigs in operation and significantly increase regional exploration. Further details on infrastructure development and mine planning will follow in the coming months.
Solaris Resources (TSX:SLS) has announced that it has entered into a subscription agreement with an affiliate of China’s Zijin Mining Group Co., Ltd. for a private placement of Solaris common shares. Under the terms of the agreement, Zijin will invest approximately $130 million into Solaris through the purchase of 28,481,289 common shares at a price of $4.55 per share. The deal values the shares at a 14% premium over Solaris’ closing share price of $3.99 on the Toronto Stock Exchange on January 10.
Mr. Daniel Earle, President & CEO, commented in a press release: “Zijin is one of the most successful major mining companies in the world. It boasts an unprecedented track record of growth from its origins operating a single gold mine in the early 1990s to becoming a global major operating in 16 countries with total revenue far in excess of its gold mining peers, including excepted top five-ranked copper production in 2024. We take tremendous pride in announcing our new strategic partnership with Zijin and look forward to leveraging its deep technical expertise and financial capacity in delivering the full potential of one of the last remaining greenfield copper districts at low elevation and adjacent to infrastructure available globally.”
Upon completion of the transaction, Zijin will own a 15% equity stake in Solaris on a fully diluted basis. The private placement proceeds will be used by Solaris to advance development of its Warintza copper-gold project in Ecuador and for general working capital purposes.
The share subscription agreement allows Zijin to nominate one member to Solaris’ board of directors as long as it maintains ownership of at least 5% of outstanding shares. Zijin will also have participation rights to buy additional Solaris shares to maintain its proportional holding.
Closing of the private placement remains subject to customary conditions and regulatory approvals, including from the Toronto Stock Exchange, Investment Canada, and Chinese authorities. Solaris expects the transaction to close by the end of Q1 2024. The newly issued shares will be subject to a statutory hold period.
Solaris was advised on the private placement by China International Capital Corporation Hong Kong Securities Limited and Minmetals Securities Co., Ltd. An early warning report will be filed by Zijin in accordance with Canadian disclosure rules.
Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has made a series of new announcements for 2024 that set its plans for drilling, a new listing, and further progress at the Warintza Project. The company intends to list on the NYSE American Stock Exchange to give U.S. retail and institutional investors interested in Solaris expanded access to the stock. Solaris Resources will file a Form 40-F Registration Statement with the U.S. Securities and Exchange Commission prior to NYSE American listing. Subject to approval of the listing application and meeting all requirements, the company expects its shares to start trading on NYSE American in the first half of 2024.
In the second quarter of 2024, the company plans to release an updated mineral resource estimate for Warintza. The new estimate is expected to nearly double the drill meterage included compared to the previous estimate. It is anticipated to show major growth by expanding the deposit from extensional drilling at Warintza Central and Warintza East, and incorporating the recent Warintza Southeast discovery within a shared pit shell.
Solaris Resources also plans to commence its third phase of drilling at Warintza soon. This will include extensional drilling at Warintza East and Warintza Southeast where the deposits remain open. It also includes approximately 30 kilometres of infill drilling to further define mineral resources within the pit shell ahead of studies. Some holes will be extended to also provide technical data for mine design and planning.
Additional 2024 plans for Warintza exploration include a follow-up on the recent Patrimonio discovery. Initial reconnaissance holes there intersected 144 meters of 0.50% CuEq and 148 meters of 0.52% CuEq. Notably, these intercepts contained skarn mineralization whose source has not yet been found. Vectors for the mineralization trend northwest over 1 kilometer untested toward Warintza West, while the strongest soil anomalies at Patrimonio remain untested in the south.
The company also intends to revisit the El Trinche area forming Warintza Central’s southern low-grade margin. A near-surface high-grade intercept within a broader low-grade interval was interpreted as a dike, with orientations and alteration suggesting a potentially deeper, higher-grade system not yet located.
For regional exploration, fieldwork is planned to define drill targets at prospective areas from the program so far. These include Medio Camino, Clemente, Mateo, and Caya.
The company expects to finalize and submit the Environmental Impact Assessment for regulatory approval in the second half of 2024, after over three years of baseline monitoring and data collection. Follow-up programs for metallurgy, geotechnical and hydrogeological drilling will proceed under recently appointed COO Javier Toro through year-end, along with infrastructure, water, power and other studies.
Solaris Resources (TSX:SLS) (OTCQB:SLSSF) has announced finalized agreements with Orion Mine Finance Management LP for a funding package totaling US$80 million, aimed at supporting the development of the Warintza Project in Ecuador through studies and permitting.
The financing package is diverse, consisting of several components. Firstly, there is a senior secured debt facility amounting to US$60 million, known as the Senior Loan. This loan has a term of four years and notably does not include any hedging conditions. The drawdown of this loan will occur in three stages, each linked to specific milestones. The initial tranche of US$30 million is expected to close soon, followed by a US$15 million drawdown contingent on the submission of an Environmental Impact Assessment (EIA), and another US$15 million upon the publication of a Pre-Feasibility Study (PFS) for the Warintza Project.
Additionally, the agreement includes an offtake arrangement with a buyback provision, under which Orion will purchase 20% of the metals produced from the Warintza Project for 20 years starting from the commencement of production. This offtake is subject to a buyback clause in certain change of control scenarios.
Mr. Richard Warke, Executive Chairman, commented in a press release: “This financing package funds the advancement of Warintza through studies and permitting, leading to a substantially de-risked Project. This is a very special asset that has the potential to create tremendous long-term value for all stakeholders as it unlocks one of the last remaining major greenfield copper districts at low elevation and adjacent to infrastructure in the entire mining industry.”
The funding package also incorporates an equity component. Orion has agreed to subscribe to US$10 million of Solaris’ common shares at a price of C$5.11 each, which is the closing price as of November 6, 2023, prior to the initial announcement. There is also a commitment for an additional US$10 million in equity financing, which Solaris can call upon later under specific conditions.
The net proceeds from this financing will be utilized to advance the Warintza Project. This includes funding for exploration and infill drilling, technical and environmental programs and studies, permitting processes, community social relations programs, and general and working capital needs.
Solaris Resources is an exploration company with a focus on developing its portfolio of copper and gold assets in the Americas. The Warintza Project, located in Ecuador, is its flagship project and is recognized as a large-scale resource with significant potential for expansion and discovery.
The global shift towards renewable energy, marked by a growing reliance on wind power and electric vehicles (EVs), hinges significantly on copper availability. However, a slump in the copper market presents a complex scenario. The current situation is characterized by a decrease in copper prices due to reduced demand from manufacturers and builders, who incorporate the metal in various applications, from electrical wiring to roofing. This drop in demand has led to a surplus, keeping copper prices low and thereby discouraging necessary investments for future supply.
Junior mining companies like Solaris Resources (TSX:SLS) (OTCQB:SLSSF) are part of the solution in addressing the copper supply issue for the green energy transition. Their focus on discovering and advancing new copper resources, as exemplified by the Warintza Project in Ecuador, is key to meeting future demands. Recent expansions in the Warintza East discovery demonstrate the significant potential of such projects. On top of this, strategic partnerships, like Solaris’ appointment of China International Capital Corporation Limited (CICC) as a financial advisor, highlight the growing global interest in new copper resources, with the company considering investor interest in the project and company.
The heart of the issue lies in the mining sector. To meet the burgeoning demands of renewable energy transition, mining firms are required to extract vast amounts of new copper in the coming years. Yet, the current market conditions are causing hesitance. Major mining companies like Freeport-McMoRan and Glencore have expressed their intentions to delay new mining projects until copper prices rise. This cautious approach stems from the high capital costs of developing new mines and the desire for profitability over long-term operations.
The mismatch between current supply and future demand is setting the stage for a potential market crunch, potentially leading to price spikes and supply shortfalls. Goldman Sachs metals strategist Nicholas Snowdon predicts an inevitable phase of extreme scarcity in the copper market. Adding to the complexity, factors such as a weaker pandemic recovery in China, the world’s largest copper consumer, and the resolution of supply disruptions in major producers like Chile and Peru contribute to the current market dynamics.
Despite these challenges, the demand for copper in the green energy sector is on the rise. Copper is essential for the construction of wind farms, solar arrays, and the manufacturing of batteries and power lines. However, this sector still accounts for less than 10% of global copper usage. China’s significant investments in renewable energy and EVs are driving up its copper consumption, with an increase in solar-related copper demand.
As the world moves towards a greener future, copper supplies become increasingly important, but the current market slump poses both a challenge and an opportunity. On one hand, it discourages immediate investments in new mining projects; on the other, it highlights the need for strategic planning and innovation to ensure a steady supply of copper for the burgeoning renewable energy sector.
Solaris Resources (TSX:SLS) has announced the addition of Mr. Javier Toro to their executive team as the Chief Operating Officer (COO), starting January 1st, 2023. Mr. Toro will take the reins of the Warintza Project, which is situated in the southeastern region of Ecuador. In a parallel development, the company has disclosed that it is close to securing significant financing, citing advanced negotiations over an offtake financing package amounting to US$80 million. This funding is intended to support the necessary studies and permitting processes for the Warintza Project.
Mr. Toro, an industry veteran, brings over a quarter-century of experience as a Mining Engineer. His illustrious career is highlighted by his expertise in steering the design and execution of engineering and economic assessments for notable open-pit copper ventures across the Americas. His previous position was with Hudbay Minerals, where he ascended to the role of Vice President, Mining Technical Services, after holding a series of incrementally senior positions. His tenure at Hudbay was marked by his oversight of several crucial technical reports and economic assessments for significant mining projects, including the Constancia mine in Peru and Copper World mine in the United States.
Before his engagement with Hudbay Minerals, Mr. Toro’s expertise was honed at Golder Associates Peru S.A., where he was instrumental in delivering mining designs and project cost evaluations. His foundational roles in various management capacities have been focused on geotechnical, hydrogeological, and mine planning operations. Mr. Toro’s academic credentials are equally impressive, with a Bachelor’s degree in Mining Engineering with Honors from the National University of Engineering in Lima, Peru.
The financial package, which Solaris is nearing an agreement on, must meet several conditions before the closing of the US$80 million financing deal. These include finalizing definitive documentation, and it’s been noted that there’s no certainty yet that this consensus will be reached or that the financing will ultimately be confirmed.
In related news, on September 12, 2023, Solaris provided an update on its exploration, reporting copper equivalent grades from its initial two reconnaissance drill holes at the Patrimonio site. Discovered in June 2023, Patrimonio is a new copper deposit located roughly half a kilometre southwest of Warintza Central. The drilling outcomes not only established the presence of significant copper mineralization but also uncovered a distinctive skarn-style mineralization within carbonate-rich volcanic sequences. The origin of this mineralization remains unidentified.
The two drill holes, SLSP-01 and SLSP-02, delivered copper equivalent grades from the surface, indicating two distinct phases of mineralization. The upper portions of the drill holes showed evidence of strong skarn alteration along with potassic alteration, with the latter stages dominated by a dacite porphyry showing quartz-sericite-pyrite alteration. The insights drawn from the drill core analysis point to a complex geological formation and suggest a different origin for the skarn mineralization compared to the later-stage alterations. This discovery hints at the possibility of uncovering additional skarn mineralization and potentially its source within the larger Patrimonio anomaly.
The company is actively engaged in detailed mapping and sampling efforts aimed at refining its understanding of this mineral system. These efforts include establishing the patterns of skarn presence and alteration zonation to prioritize further drilling sites. The mineralization detected so far remains open in multiple directions, adjacent to a less mineralized quartz-monzodiorite porphyry. The geological footprint of Patrimonio is outlined by an extensive soil anomaly pattern, with copper and molybdenum anomalies complementing each other and suggesting a strong mineral presence, which is further confirmed by the outcropping porphyry system showcasing extensive alteration and veining on the western periphery of an interpreted major fault line near Warintza Central.
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