Salazar Resources
Financials:
Primary ticker: TSX:SRL, OTCQX:SRLZF
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$75-100 M, versus our market cap of US$15 M, so everything else in Salazar Resources is ‘in for free’, even with an aggressive discount on the carried position.
El Domo is on track to reach production in 2024 and will be generating cash flow for Salazar from 2025 onwards. Salazar is well-placed in Ecuador to use its income on high value exploration.
Cash: <CAD$1M
Debt: NIL
Major shareholders:
Salazar family – 22%
Directors / Insiders – 12%
Arlington Group – 9%
Institutions – 17%
Other – 40%
Management Ownership – 34%
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%)
Fully financed, with Wheaton Stream ($175.5 M) and Trafigura senior debt ($45 M)
100% SRL EXPLORATION
Phase 1 drilling at Los Santos returned 103 m @ 0.5 g/t Au, 0.2% Cu, 271 ppm Mo
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
100% SRL EXPLORATION
Nov-Dec: Opening of Cadastre and award of high value projects to Salazar
6 Months:
EL DOMO – CURIPAMBA (SRL 25%)
March-April: Environmental Permit
May-June: Grant of Mining Licence
100% SRL EXPLORATION
Q1 2023: Farm-out at El Potro
12 Months:
EL DOMO – CURIPAMBA (SRL 25%)
May-June: Grant of Mining Licence
July: Start of construction
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Permitting and obtaining new exploration licences are the key challenges in Ecuador.
We are working closely with all relevant government agencies. The Cadastre is forecast to start issuing licences again in December.
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 vital to the economy of Ecuador, and companies like Salazar Resources will benefit from this key position.
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.