Aldebaran Resources (TSXV: ALDE; US-OTC: ADBRF) says an economic study due next month on its Altar copper-gold project in Argentina will contain a $1.5-billion (C$2.09-billion) construction figure.
The preliminary economic assessment is to outline options for producing either concentrate or cathode based on a deposit containing about 32 billion lb. of copper and 6.7 million oz. of gold, country manager Javier Robeto told Reuters on Friday.
Altar lies in the northern mining-friendly San Juan province with an experienced management team that sold Antares Minerals and the Haquira project for around C$650 million to First Quantum (TSX:FM) after acquiring it for C$15 million, Red Cloud Securities mining analyst Taylor Combaluzier said in a note this month.
“Aldebaran is rapidly advancing and de-risking Altar ahead of a likely sale to a major mining company,” Combaluzier said. “We anticipate substantial resource growth in the forthcoming resource update, which should be the main driver of the stock in the near term. Given that Altar is well beyond the 10-billiion lb. copper-equivalent threshold sought by major mining firms, it should attract considerable interest from potential buyers.”
Shares in Aldebaran Resources were flat on Friday in Toronto after gaining a third in value this year to C$2.52 apiece for a market capitalization of nearly C$420 million.
Project growth
The project, part of a cluster of porphyry systems straddling the Argentina-Chile border, has grown substantially in size after 63,000 metres of drilling over the past several years. Aldebaran CEO John Black calls it one of the few “truly giant copper-gold projects still in the hands of a junior”.
According to a resource update in late 2024, Altar hosts 2.4 billion measured and indicated tonnes grading 0.42% copper, 0.07 gram gold per tonne, 1.22 grams silver, and 42 parts per million molybdenum for 22 billion lb. of contained copper and 5.1 million oz. of gold.
Inferred resources stand at 1.22 billion tonnes grading 0.37% copper, 0.04 gram gold, and 1.25 grams silver for 10 billion lb. of copper and 1.6 million oz. of gold, a fivefold increase from the prior estimate.
Government help
Argentina President Javier Milei’s government introduced the RIGI incentive program in October, offering tax breaks and international arbitration rights for investments over $200 million. Robeto said Aldebaran is assessing whether it can meet the timeline to qualify before applications close next July.
Aldebaran, which has earned an 80% interest in Altar from Sibanye-Stillwater (JSE: SSW; NYSE: SBSW), plans to advance the project toward a prefeasibility study in 2026.
It has partnered with Nuton, a Rio Tinto (NYSE, LSE, ASX: RIO) venture, to fund up to $250 million for a 20% stake. It’s providing technical expertise to help assess processing options.
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