Upcoming Valeriano resource update to lift Atex shares

Atex Resources’ (TSXV: ATX) upcoming resource update for the flagship Valeriano project in northern Chile, slated for release by year-end, could prove to be an inflection point as the company moves toward a development decision.

The Toronto-based company said Wednesday it had completed a fifth stage of drilling for 12,000 metres with final assay results for three holes announced. It marks “the most successful campaign at Valeriano to date,” CEO Ben Pullinger said in a news release.

BMO Capital Markets’ Bryce Adams argues the update “will be the inflection point that re‑rates ATX shares.” He set a $3.80 (US$2.75) target on Atex, implying 85% upside to Tuesday’s $2.06 close.

Cormark’s Cole McGill agrees, forecasting a $3.50 target “once the NI 43‑101 update confirms the expanded high‑grade core,” he said in a July 29 note.

Atex shares were trading 3¢ or 1.5% lower on Wednesday at $2.03, after the stock gained 40% since the start of the year. It has a market capitalization of $567 million.

Validated model

Highlight assays released Wednesday include hole ATXD25C that cut 138 metres at 0.58% copper, 0.19 gram gold per tonne and 0.9 gram silver for a copper-equivalent grade of 0.75% from 1,394 metres down. The hole also included 8 metres of 2.26% copper-equivalent starting at 1,558 metres, and the hole ended in high‑grade breccia.

Hole ATXD27B cut 34 metres of 0.69% copper, 0.35 gram gold per tonne and 1.1 grams silver for 0.95% copper-equivalent from 1,540 metres depth. Another hole, ATXD28A, returned 96 metres of 0.68% copper, 0.29 gram gold and 1.5 grams silver for 0.93% copper-equivalent from 1,106 metres deep.

“These results not only validate and improve our geological model but set a strong foundation for the upcoming stage six program, which is currently in progress with an expected start in September,” Pullinger said in a press release.

The explorer’s stage five drill program was boosted by Agnico Eagle Mines’(TSX, NYSE: AEM) $55 million investment last October, which gave the major a 13% stake in Atex.

Valeriano hosts 1.4 billion inferred tonnes grading 0.49% copper, 0.21 gram gold, 0.99 gram silver and 62.4 grams molybdenum, according to a resource released in 2023. Contained metals total about 7 million tonnes copper, 9.5 million oz. gold, 46.1 million oz. silver and 90,100 tonnes molybdenum.

If the updated resource meets expectations, analysts say Valeriano could vault into the global top 10 porphyries and underpin a lower‑capital starter‑mine phase.