Pampa Metals: A Unique Copper Opportunity

A supply/demand mismatch story with an attractive growth profile

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The world is hurtling towards net zero.

Achieving net zero requires low-carbon energy systems.

Low-carbon energy systems are significantly more metal intensive than high-carbon energy systems.

But how much metal are we going to need? Where are we going to get it all? Is there enough?

The answers to these questions represent a massive opportunity for investors to cash in on the megatrend toward sustainability.

Our featured company has these answers and has positioned itself to capitalize on them: Pampa Metals.

Summary

  • Why Copper? Why Chile?

  • Why Pampa? Overview & Innovation

  • Buenavista & Other Project Highlights

  • Bottom Line: Unique Opportunity

Why Copper? Why Chile?

There’s a reason copper is used as an economic bellwether. That’s because it’s one of the most important industrial metals in the world with widespread applications across many sectors, including the critical manufacturing and construction industries.

Since the 2015 Paris Agreement on Climate Change, its role in the global economic machine has become elevated as the world shifts to zero carbon.

The technologies required by this shift are much more material intensive than current (fossil fuel) energy systems.

A good rule of thumb is simply that a low-carbon energy system will be more metal intensive than a high-carbon energy system, so the demand for these metals is directly correlated to the intensity of the trend.

Copper, which is a key metal for renewable technologies like solar, wind, hydrogen, EVs, and energy storage, stands to benefit tremendously from the transition to these lower-carbon systems.

A headwind for this transition (and a catalyst for copper prices) is a significant drought in new major copper discoveries—a byproduct of a severe decline in copper exploration investments and budgets since the 1990s.

The decline is reflected in a worsening supply gap, which according to S&P Global is expected to result in a supply shortfall by 2025 with demand for copper doubling by 2035.

This makes nonrenewable mineral sources and new developments critical.

It also brings us to the world’s premier copper-producing region, the elephant country for major economic deposits (and home to our featured company): Chile.

Over a quarter of the global copper supply is produced in Chile and no other country in the world comes close.

Porphyry copper deposits are a type of deposit that are responsible for ~60% of the world’s copper.

Chile was geographically blessed (located around the Pacific Ocean “ring of fire”) with rich porphyry copper deposits and boasts one of the world’s lowest-risk mining jurisdictions including a clear legal framework and a supportive government.

These characteristics make Chile vital not only to the copper industry but by extension the transition to net zero.

Why Pampa? Overview & Innovation

We noted above that exploration has declined sharply since the 1990s.

At Pampa Metals, discovery is the objective.

The company is led by a highly experienced and qualified management team with execution ability and a track record of discovery and project development all over the world, particularly in South America.

The team is leveraging an abundance of experience in capital markets paired with impeccable knowledge of copper porphyries with a focus on value-add monetization.

The biggest value-add moment for investors is the transition from exploration to discovery. To that end, the company owns 100% interest in 8 exploration projects covering 60,000 hectares of Chile’s rich geography.

These projects are located in the heart of Chile’s copper belts, along trend from major copper-producing mines in desert terrain with easy access.

This kind of highly competitive and prospective greenfield land position is unique for a junior copper exploration company in Chile!

And that’s not the only thing that gives it an edge over other juniors: Pampa Metals is leveraging innovation.

The company has an agreement with artificial intelligence (AI) tech company, VerAI Discoveries, which gives it access to 8 additional projects (covering 18,000 hectares in similar areas).

The technology uses AI algorithms to generate prospect targets from regional magnetics data.

Targets—which feature LS epithermal, HS epithermal, porphyry & IOCG characteristics—are optioned to Pampa Metals.

Buenavista & Other Project Highlights

Block 4 – Buenavista (Priority drill target)

Pampa Metal’s Block 4 project is positioned ~110km south of the famous La Escondida copper mine and is the location of the Buenavista target.

The target comprises a poorly exposed quartz veinlet stockwork zone hosted within a dacite porphyry intrusion, which is spatially coincident with a magnetic high and anomalous molybdenum geochemistry.

Geology & magnetics and trenching programs have been completed and recent encouraging results from the IP geophysical survey defined an area of interest significantly larger than 1 km x 1 km in size, confirming Buenavista as a priority drill target.

The survey also revealed other promising anomalies that are being evaluated as possible drill targets.

With the soil survey already underway, drilling at Buenavista is planned for Q4 2022.

Cerros Buenos Aires – Cerro Chiquitin target

A 7,600-hectare property with multiple geophysical anomalies associated with outcrops/sub-crops, as well as post-mineral covered “pampas”.

Recent drilling has vectored toward porphyry target.

Redondo Veronica – Co Redondo Norte & Redondo SW

This project is located ~40km from the famous La Escondida copper mine and is the home to 3 areas for drill testing.

Recent drilling gives line of sight to 2 deep porphyry targets – geophysical anomalies.

Bottom Line: Unique Opportunity

Copper was already one of the world’s most critical metals before the 2015 Paris Agreement sparked the transition to net zero.

Now, its importance has been magnified.

With a clear mismatch between supply and demand leaving a massive gap to be filled, copper possesses one of the greatest growth profiles of any metal with a demand boom likely to last for decades.

Pampa Metals represents a unique opportunity to own a highly-competitive junior copper miner strategically positioned in the world’s most prolific region for the metal.

With several promising targets in advanced stages, Pampa Metals is poised to fill the supply gap required by the global shift to net zero.

Click here to find out more about this unique opportunity.

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