Interview with Dr. Kevin B. Heather, Chief Geological Officer of Aldebaran Resources
Our previous interview: https://www.cruxinvestor.com/posts/aldebaran-resources-tsxvalde-resource-update-pea-in-2024-25-on-massive-copper-gold-project-5345
Recording date: 29th of November, 2024
Aldebaran Resources (TSX-V: ALDE) presents a copper investment opportunity with its massive Altar project in San Juan, Argentina. The company has just announced a major increase in the project's mineral resource estimate, doubling the measured and indicated (M&I) copper resource to 22 billion pounds and increasing the inferred resource by over 500% to 9.8 billion pounds. This brings the total contained copper at Altar to over 30 billion pounds, placing it among the world's largest undeveloped copper projects.
Aldebaran is rapidly advancing Altar through the development stages, with a Preliminary Economic Assessment (PEA) targeted for completion by Q2 2025 and a Pre-Feasibility Study (PFS) by the end of 2026. The company is well-positioned to meet these milestones, with a significant portion of the resource already in the M&I category and key geotechnical, environmental, and hydrological data in hand.
A potential game-changer for the project is the involvement of mining major Rio Tinto with its subsidiary Nuton LLC. Rio Tinto has signed an option agreement to acquire up to 20% of the Altar project for $250 million, with a focus on testing and applying its novel low-temperature, low-cost leaching process. If successful, with support from Nuton, Aldebaran could unlock the bulk of Altar's resource, which is primarily hypogene (sulfide) mineralization, and significantly enhance the project's economics while reducing water usage and carbon emissions compared to traditional processing methods.
Test work is already underway, with initial small-scale column tests to be followed by larger 10-meter columns that will simulate a full heap leach. Aldebaran is proactively drilling to collect material for these larger tests, demonstrating confidence in the technology's potential. However, the company is also wisely considering traditional processing options, with the PEA set to include trade-off studies between a Nuton-only scenario and a conventional flotation concentrator.
The Altar project is well-positioned to capitalize on the compelling long-term fundamentals of the copper market. With the global energy transition driving significant demand growth and the current project pipeline insufficient to meet this demand, the world is facing a looming copper supply deficit. Altar's scale and location in a mining-friendly jurisdiction make it a rare and attractive asset.
Aldebaran's management team has a proven track record of success, including the previous sale of Antares Minerals for $650 million. The company's current valuation provides an attractive entry point for investors, with significant re-rating potential if the project advances and key milestones are achieved as planned.
Learn more: https://www.cruxinvestor.com/companies/aldebaran-resources-inc
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What is Company Interviews?
An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.