Salazar Resources
Financials:
Primary ticker: TSX:SRL, OTCQX:SRLZF, FRA:CCG
Stage of development: Exploration, Development
Primary minerals: Gold, Copper
Project to promote: El Domo, Curipamba
Project location: Ecuador
Website: www.salazarresources.com
A fully carried stake in a high value VMS deposit in Ecuador called El Domo. Our stake in El Domo carries an NPV of US$75-80 M, versus our market cap of US$38 M, so everything else in Salazar Resources is ‘in for free’, even with an aggressive discount on the carried position.
Salazar has a busy year ahead, drilling 100% highly prospective targets, offering exploration upside. Salazar is expert in CSR and operating in Ecuador, with a great track record of discovery.
Cash: CAD$5M
Debt: Nil
Major shareholders:
Salazar family – 25%
Directors / Insiders – 12%
Arlington Group – 9%
Institutions – 17%
Other – 40%
Management ownership – 31%
Management Profile
Merlin Marr-Johnson – Executive Vice President
28 years’ experience in the minerals sector, including work as an exploration geologist for Rio Tinto, an analyst for HSBC and a portfolio manager for Blakeney Management. Merlin has worked on projects in South America, Africa, Central Asia and Europe, and as CEO he has brought two companies to AIM, London. He speaks several languages, including Spanish.
What is your rationale for taking part 121 Mining Investment?
We want more people to know about Salazar Resources and to want to own the stock. We want to grow our shareholder base.
What recent news would you like to highlight to investors attending?
EL DOMO – CURIPAMBA (SRL 25%)
The Curipamba Feasibility Study was published in October
Environment & Social Impact Assessment was filed in November
Curimining (the operating company) was financed – $250 M in January
New General Manager to build the project was hired in January
100% SRL EXPLORATION
Visible gold seen in drilling at Los Santos and samples of 20.2 g/t Au and 1217 g/t Ag
45 m @ 2.5 g/t Au in channel sampling at El Potro
What are your key goals for the next 3, 6 and 12 months?
3 Months:
100% Salazar portfolio: Drilling results from Los Santos, Sampling results from El Potro
Fully-carried portfolio: Start of exploration at Pijili
6 Months:
100% Salazar Portfolio:
Hopefully announce a discovery at Los Santos.
Water permits to allow drilling at El Potro.
New concessions granted by Mining Cadastre
Fully-carried portfolio:
Progress with permitting for Curipamba
Exploration drilling at Pijili
12 Months:
100% Salazar Portfolio:
Discoveries at Los Santos and El Potro (after drilling)
New discoveries on new projects (after sampling)
Fully-carried portfolio:
Curipamba fully permitted and construction started
Discoveries at Pijili
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Assay turnaround times have been very slow. Salazar has switched to a new laboratory with better throughput rates and capacity.
Anti-mining protestors in Ecuador are vocal and well-organised. Salazar has an impeccable track record of working with locals. It really helps that the Company is Ecuadorian and that the senior management live in-country.
Water permits and Mining concessions have been slow to be issued. Salazar is working very closely with the government. The President himself is keen to attract investment into the country. The government is liaising with industry representatives, including Salazar Resources, to improve permitting.
What do you think makes your company such a compelling investment?
First production at Curipamba is expected in 2024. In 2025 Salazar is forecast to receive the profits from 11 million pounds of attributable copper. The feasibility AISC cost is US$1.26/lb, and copper averaged US$4.24/lb in 2021… Salazar is in line to receive significant dividends throughout 10 years of mine life. This will fund the exploration, and more. The Company should rerate as the Mining Permits are granted.
Salazar is THE Ecuadorian resources Company, and it is uniquely well positioned to make the next great discovery. And with the funding from 2025 it will be dilution-proof at that point.
What are the top 3 key investor takeaways?
1. The Ecuadorian resources sector is thriving under President Lasso, and companies like Salazar Resources will benefit most.
2. Our stake in El Domo is highly valuable, and mine permits will drive share price appreciation in the short term.
3. Our exploration portfolio and team offers exciting upside on top of any gains made as El Domo advances, as outlined by the news of visible gold in core at Los Santos.