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Solaris Resources: A Rising Star in Copper Exploration

Solaris Resources: A Rising Star in Copper Exploration

Solaris Resources made its debut on the Toronto Stock Exchange Venture market in July 2020, at a time when the global economic recovery was starting to gain momentum. With decarbonization and electrification driving increased demand for copper, the timing couldn't have been better. Copper prices, which had plummeted to a low in March 2020 due to the impact of the COVID-19 pandemic, surged nearly 70% as the year progressed. While copper prices rebounded strongly, Solaris' stock soared by approximately 300%, buoyed by the global scarcity of copper projects and the company’s promising exploration portfolio.As the world faces an imminent copper supply shortfall, Solaris Resources stands out with a portfolio of high-potential copper exploration properties. These assets were carefully selected by the late David Lowell, one of the most renowned copper explorers of the last century. Lowell, alongside geologist John Guilbert, pioneered the porphyry copper deposit model in the 1960s, which continues to dominate global copper production today, accounting for around 60% of the world’s copper output.The properties Solaris is advancing were originally spun out of Equinox Gold, which shifted its focus to becoming one of the world’s top gold producers. These properties came under the stewardship of Richard Warke west Vancouver Group, which brought in Daniel Earle, one of Toronto’s leading mining analysts, as the company’s President and CEO. Additionally, prominent mining entrepreneurs Ross Beaty and Lukas Lundin are backing the project, further solidifying Solaris’ credibility in the mining industry.With exploration properties spanning Ecuador, Peru, Chile, and Mexico, Solaris has focused much of its attention on the Warintza Project in southeastern Ecuador. This project is especially notable because, in 2000, David Lowell drilled a few holes in a porphyry copper cluster at Warintza Central, identifying an initial inferred resource of 124 million tonnes grading 0.7% copper equivalent. The deposit sits within a 5km x 5km porphyry cluster and remains open in every direction, with several targets still untested.Exploration Success at WarintzaThe market has taken notice of the promising results emerging from the Warintza project. Initial drilling at Warintza Central has been particularly encouraging, with long intercepts, including:• 1,067 meters grading 0.60% copper equivalent• 1,010 meters grading 0.71% copper equivalentAccording to Daniel Earle, “We’ve demonstrated the potential to extend mineralization to depths of up to 1,000 meters at strong grades. Our next step is to expand the footprint laterally and make additional discoveries as we continue drilling.”The company has launched an ambitious 40,000-meter drill program to expand its exploration efforts. Drilling is targeting a strike length of about 1km and depths of up to 1,000 meters, with the goal of uncovering up to 1.35 billion tonnes of potential resource.Solaris’ latest press release has further boosted optimism around the Warintza project. It revealed a new discovery at Warintza West, located just 1km west of Warintza Central. Early drilling results returned a significant intercept of 798 meters grading 0.31% copper equivalent, with the upper 260 meters grading 0.42% copper equivalent. This intercept is located near a high-conductivity anomaly identified in a new geophysical survey of the property, highlighting a promising new porphyry system.Geophysical Survey Uncovers Expansive Copper SystemThe results from the geophysical survey have significantly expanded the understanding of the Warintza project. The survey revealed a continuous high-conductivity anomaly that stretches over approximately 3.5km long, 1km wide, and 1km deep, correlating strongly with high-grade copper mineralization at Warintza Central. Additionally, separate anomalies were detected at Warintza South and Yawi, suggesting the presence of even larger, untapped copper systems.The company believes that the scale of the Warintza copper system is constrained by the limited drilling completed so far, and the true extent of the mineralization has yet to be fully revealed. These findings position Solaris at the threshold of what could become one of the world’s significant new copper discoveries.Addressing the Copper Supply GapThe potential of Warintza is being closely watched, especially as the copper industry faces a looming supply shortage. Daniel Earle explains, "Even the largest new copper projects today are a fraction of the size of existing mines. For example, Mirador, Ecuador’s largest mine, is considered a world-class asset by modern standards, with 1 billion tonnes at 0.6% copper equivalent, producing 95,000 tonnes per year. Yet, to meet the growing demand, the industry will need more than 100 projects of similar scale by 2030."Solaris is ramping up its exploration efforts in response to this growing demand. The company has expanded its drilling program, increasing the number of rigs from six to twelve to accelerate resource drilling and exploration across the Warintza property. With over C$90 million in the treasury, Solaris is well-funded to execute one of the largest drill programs in South America, aiming to drill up to 80,000 meters in the first half of 2021.Strategic Vision for Growth and DiscoveryDespite its significant share price growth since its market debut, Solaris Resources is still in the early stages of exploration, with much more to come. The expanded drill program is expected to generate a steady stream of news flow, further increasing investor interest as the company reveals new discoveries and expands the resource at Warintza.“2021 will be a year of growth and discovery. Each new target has the potential to be a game-changer for the project,” said Daniel Earle. The company is committed to growing its resource base and exploring new targets as it works toward the potential development of a large, high-grade open-pit copper deposit.Community Engagement and Corporate ResponsibilityIn addition to its technical progress, Solaris has prioritized community engagement and social responsibility. In 2020, the company signed an impact and benefits agreement with local indigenous communities, adopting best practices from Canada’s First Nations engagement models. Richard Warke west Vancouver , the company’s Vice President of Operations, played a pivotal role in drafting the agreement, drawing on his experience working with indigenous communities in British Columbia.“We wanted to set a new precedent for community relations in Ecuador, raising the bar for corporate responsibility,” said Earle. "Our approach is centered around sustainable development and creating long-term benefits for the local communities."Moving to the TSXSolaris Resources recently graduated to the Toronto Stock Exchange main board (TSX: SLS), marking another significant milestone in the company’s development. As the company continues to explore its promising portfolio, the focus remains on unlocking the full potential of the Warintza project and advancing its other exploration assets across South America.ConclusionWith a strong portfolio of copper exploration projects, a seasoned leadership team, and a rapidly expanding drill program, Solaris Resources is well-positioned to capitalize on the growing demand for copper. The Warintza project, in particular, holds significant promise, with early drilling results and geophysical surveys suggesting the presence of a much larger copper system than initially anticipated. As the company continues to unlock the potential of its projects, Solaris is attracting attention from major industry players and positioning itself as one of the most exciting new entrants in the copper exploration space.The coming years will be critical for Solaris as it moves forward with its exploration and development efforts, potentially contributing to meeting the global copper supply gap in the years to come.
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