Adventus Mining Corporation, previously known as Adventus Zinc Corporation, is a Canadian company focused on the exploration and development of copper-gold in Ecuador. The company also has a portfolio of exploration projects and investments in Ireland and Canada that is funded by commercial partners.
The mineral exploration and development company Adventus Mining Corp. (ISIN: CA00791E1025 / WKN: A2PL3X / TSX-V: ADZN) focuses on land identification, acquisition, exploration and development. However, the company has focused on the development of its extremely promising ‘Curipamba’ property in Ecuador.
The ‘El Domo’ project brought in by Salazar Resources, which was integrated into the ‘Curipamba’ project, is now running under the project name ‘Curipamba – El Domo’ in central Ecuador. In addition, Adventus and Salazar are partners in a nationwide exploration alliance aimed at new discoveries and projects. Adventus finances activities of new and approved exploration projects up to future construction decisions.
Source: Adventus Mining
In 2018, Adventus and Salazar included the first two exploration projects in their exploration alliance: ‘Pijili’ and ‘Santiago’. The first aerial geophysical surveys were completed in 2019 and exploration drilling started in 2020.
Adventus and Salazar are pursuing additional exploration project opportunities in Ecuador through their local, regional, national and global networks.
The project portfolio
‘Curipamba’, the copper-gold project in the middle of the ‘El Domo’ deposit
In 2017, Adventus Mining Corporation entered into an agreement with Salazar Resources Ltd whereby Adventus can acquire a 75% stake in the ‘Curipamba’ project in central Ecuador. To do this, Adventus must provide $ 25 million in exploration and development expenditures over a five-year period.
In addition, a feasibility study is required for the high-grade copper-gold deposit ‘El Domo’ within the ‘Curipamba’ project concessions, which Adventus is working closely with Salazar to develop.
As of June 2020, Adventus has funded more than $ 20 million in exploration and project development. The ‘Curipamba – El Domo’ feasibility study is expected to be completed in the fourth quarter of 2021.
‘Curipamba’ comprises seven concessions that extend over an area of approximately 21,500 hectares and include the highly developed and high-grade copper-gold deposit ‘El Domo’. ‘Curipamba’ is located in the center of Ecuador, around 150 km northeast of the large port city of Guayaquil. The concessions extend over low-lying hills and plains at 300 to 900 m above sea level.
‘El Domo’ is a flat-lying, tabular ‘VMS’ deposit, the mineralization of which begins at a depth of only 30 m from the surface and whose dimensions are approximately 800 x 400 m. Three well-developed gravel roads offer direct access to ‘El Domo’ and most of the ‘Curipamba’ project area. To date, over 60,000 meters of diamond drilling has been carried out on ‘El Domo’. The highlights of historical sections include:
- 24.02 m 5.41% copper, 6.40 g / t gold, 2.68% zinc, 58.6 g / t silver, 0.15% lead (~ 11.5% CuEq)
- 21.10 m 5.49% copper, 3.94 g / t gold, 2.77% zinc, 42.3 g / t silver, 0.19% lead (~ 9.8% CuEq), including: 8, 70 m 11.31% copper,
- 8.16 m 2.17% copper, 19.67 g / t gold, 23.17% zinc, 229.0 g / t silver, 4.01% lead (~ 28.4% CuEq), including: 3, 71 m 3.00% copper,
- 32.43 m 4.40% copper, 1.29 g / t gold, 1.84% zinc, 13.3 g / t silver, 0.09% lead (~ 6.2% CuEq), including: 19, 41 m 7.00% copper, 1.61 g / t gold, 3.00% zinc, 18.4 g / t silver, 0.14% lead (~ 9.5% CuEq)
In 2019 Roscoe Postle Associates Inc. completed an Independent National Technical Report 43-101 on the Preliminary Economic Assessment of the ‘Curipamba – El Domo’ Project, which included an updated mineral resource estimate and provided robust technical and economic results. The ‘measured and indicated’ resources for ‘El Domo’ are therefore 8.9 million tons at 2% copper, 2.56 g / t gold, 2.93% zinc, 51 g / t silver and 0.28% Lead while the ‘inferred’ resources are 1.3 million tonnes grading 1.52% copper and 2.25% g / t gold, 2.25% zinc, 45 g / t silver and 0.20% lead.
Source: Adventus Mining
In 2020, Adventus acquired surface rights for 100% of the land overlying the estimated mineral resources and proposed open pit and underground mines as set out in the 2019 Technical Report.
Since only minimal systematic exploration work has been carried out on the entire Curipamba property since the discovery of ‘El Domo’ in 2008 by Salazar, the partners have carried out a geophysical MobileMT survey since 2019, which covered a total of 2,142 line kilometers.
Since completing this survey, the partners have made significant strides in targeting, drilling and soil geophysical surveys on Curipamba through a target generation initiative that has processed and integrated all geoscientific data from surface geochemistry, geological mapping and prospecting. This data was compiled to create a target ranking matrix that will advance exploration planning through 2021. The exploration focus will be on high grade VMS targets.
Source: Adventus Mining
So far, 15 convincing high-priority targets have been defined, which are being pursued by the exploration team on site in order to refine the priority ranking and finally begin with the planning and logistics for the wells.
The ‘Pijilí’ and ‘Santiago’ projects
The ‘Pijilí’ project is located in the south-west of Ecuador in the province of Azuay, around 150 km from the large port city of Guayaquil. ‘Pijilí’ consists of three concessions totaling 3,246 hectares and is controlled in a joint venture, 80% owned by Adventus and 20% by Salazar. The ‘Pijilí’ project is believed to contain untested copper-gold-molybdenum-porphyry and epithermal gold-silver targets.
Source: Adventus Mining
Prior to 2018, the ‘Pijilí’ project was not studied using modern exploration techniques, nor were systematic geological mapping, geochemical sampling, trenches and / or drilling carried out. Only very small mining operations next to the property followed the precious metal-bearing structures via several small open pits and underground tunnels. These neighboring concessions have since been acquired and included in the ‘Pijilí’ project.
The ‘Santiago’ project is located in the south of Ecuador in the Loja province, about 37 km north of the city of Loja. ‘Santiago’ consists of a 2,350 hectare concession, also controlled by a joint venture, 80% owned by Adventus and 20% owned by Salazar. The project may contain an untested copper-gold porphyry system and an epithermal target area characterized by a swarm of mineralized veins and breccias.
There has been limited exploration of the ‘Santiago’ project in recent years, with Newmont Overseas Exploration Limited drilling some holes with a shallow program of 23 holes with an average depth of only 200 meters and Salazar some samples of sulphide-bearing veins and samples in the mid 1990s Performed breccia structures on the surface in 2012. In 2019, Adventus and Salazar completed a geophysical survey of the mobile MagnetoTellurics in the air, which was flown over Santiago with a line spacing of 150 m. Historical exploration results from previous owners have been incorporated into MobileMT’s geophysical mapping to generate tentative target areas for on-site validation.
Exploration portfolio in Ireland
Prior to the Adventus management team’s decision to focus its corporate efforts in Ecuador and on Adventus’ IPO on the Toronto Venture Exchange in 2017, Adventus had a large portfolio of exploration projects and licenses in Ireland, Newfoundland and Labrador, Canada. As Adventus is primarily focused on the further exploration and development of its core project portfolio in Ecuador, the management team has completed several transactions to secure further funding for its secondary portfolio projects from third parties and partners while at the same time keeping exploration at an advantage for its shareholders.
Source: Adventus Mining
Adventus has one of the largest mineral concession portfolios in the Republic of Ireland and has entered into an earn-in financing partnership with South32 Limited. Adventus also has interests in Canstar Resources Inc., which is focused on the exploration of base metals near the historic ‘Buchans’ and ‘Daniels Harbor’ mining camps in Newfoundland and Labrador, Canada, and BMEx Limited, which is focused on exploration of base metals in Ireland and Australia.
Ireland Portfolio – BMEX Ltd & South32
In 2019, the 100% Adventus exploration projects in Ireland: ‘Lismore’, ‘Millstreet’ and ‘Charleville’ were transferred to the Australian company in exchange for BMEX shares. This makes Adventus a strategic shareholder of BMEX, which is why it indirectly participates in the exploration successes of this company.
In 2020, Adventus and South32 announced an Earn-In Agreement giving South32 the option to acquire 70% of three 100% Adventus exploration projects in Ireland (‘Rathkeale’, ‘Kingscourt’, ‘Fermoy’) by EUR 3,500,000 will be financed over a period of four years.
Adventus has a 100% interest in eight contiguous Irish licenses covering 257 square kilometers in an area with the prospect of carbonate-hosted Irish-type Zn-Pb mineralization. The Irish ore field has the world’s largest concentration of zinc per square kilometer and the largest zinc mine in Europe. Historical drilling on the Adventus Rathkeale block has identified significant changes and mineralization, including 5.8 m with a content of 3.5% Zn for ‘Garranroe’ in borehole and 6 m with 5.7% Pb, 2.8% Zn and 0.7% Cu at ‘Kilcool Bridge’.
The project comprises 38,320 hectares, which are held on promising soil under 12 exploration licenses and are being examined for Zn-Pb deposits. The Kingscourt project is located just 15 km north of the world class 110 Mt Navan mine.
The ‘Fermoy’ project in North Country Cork consists of twelve prospecting licenses covering an area of 477 square kilometers and is located in the southern sector of the Irish zinc-lead-silver ore field. Based on historical data and maps, Adventus identified the area as geologically poorly resolved, with some key unrecognized structural features yet to be interpreted by modern exploration models. According to Adventus, none of the targets have been fully tested by previous exploration programs and therefore provide a target for zinc-lead-silver mineralization in the limestones of the Waulsortian Mudbank.
Newfoundland & Labrador Portfolio – Canstar Resources
In 2018, the 100% Adventus exploration project portfolio in the historic mining camps ‘Buchans’ and ‘Daniel’s Harbor’ was transferred to the company in a consolidation transaction with Altius Minerals Limited for Canstar shares. Adventus remains a strategic shareholder in Canstar with a representative on the board of directors. Here, too, the Adventus benefits indirectly from the exploration successes!
Position: CEO & Director
Christian Kargl-Simard is an engineer with over 15 years of professional experience in the mining industry, in both technical and financial functions. Before Kargl-Simard started at Adventus, he worked for 10 years in investment banking at Raymond James Ltd. and Haywood Securities Inc. During his time in investment banking, he has been involved in financing that raised more than $ 7 billion and has helped execute over 35 M&A deals from companies (including Fortuna Silver Mines Inc., Altius Minerals Corporation, Arizona Mining Inc., Trevali Mining Corporation, Victoria Gold Corp., Atlantic Gold Corporation and Tahoe Resources Inc.). He worked in both metallurgy and corporate development at Dynatec Corporation in Fort Saskatchewan, Alberta, until it was sold to Sherritt International Corp. in 2007. He is the author or co-author of three published technical articles in the field of hydrometallurgy. Kargl-Simard holds a B.A.Sc. Degree in metallurgy from the University of British Columbia.
Position: Vice President, Corporate Development
Sam Leung is also a mining professional with 15 years of international experience in corporate strategy, due diligence, and mergers and acquisitions. Prior to joining Adventus as a second employee, he was Director of Corporate Development at Lundin Mining Corporation, where he completed several successful transactions valued at over $ 3.7 billion. He was also responsible for the joint venture activities with Freeport-McMoRan Inc. in Africa and Europe as well as for strategic tasks at Lundin Mining in Europe and America. Prior to Lundin Mining, Sam served as a strategy and due diligence advisor to a global range of corporate, financial and government clients at Hatch Ltd.’s metal and mining advisory office in London and Toronto. He started his career as a metallurgist and is a licensed engineer. He holds a B.A.Sc. Graduated with Honors in Engineering Chemistry from Queen’s University in Kingston, Canada. Leung is currently also a non-executive director on the boards of AbraPlata Resource Corp. (ABRA: TSXV) and Canstar Resources Inc. (ROX: TSXV).
Position: Vice President Finance, Chief Financial Officer and Corporate Secretary
Frances Kwong is a finance and administration professional with over 35 years of international experience – from accounting and strategic planning to managing the implementation of financial systems in mining and other industries. She has more than 10 years of experience in the global mining sector, ensuring compliance with financial and regulatory requirements. She was the Chief Financial Officer of Vaaldiam Mining Inc. and a senior consultant for a large mining-focused equity and royalty fund. Prior to the mining sector, Kwong worked in the telecommunications and information technology industries. She is a Fellow of the Institute of Chartered Accountants in England and Wales, CPA CGA, and holds a B. Soc. Sc. (Hons) degree from the University of Hong Kong.
Position: Vice President, Exploration
Jason Dunning is a professional exploration geologist with over 20 years of experience in greenfield and brownfield environments, and a track record of developing sustainable project pipelines for small and large businesses. Most recently he was Mining Group Manager for Geology and Exploration at Nyrstar from 2014 to 2017, responsible for the management of all geological, exploration, land ownership and mineral reserve / resource work on its properties. Prior to that, Dunning was Vice President Exploration at Alamos Gold Inc., Selwyn Resources Ltd. and Yukon Zinc Corporation as well as exploration roles with Hudson Bay Mining and Smelting Co. Ltd. and Pamicon Developments Ltd. globally active at various project locations. He holds a bachelor’s and master’s degree in geology from Carleton University and Laurentian University, respectively.
Chairman of the Board of Directors, Director
As an entrepreneur in the mining industry, Dalton built a successful group of private mineral exploration and exploration services companies before co-founding Altius in 1997. In his 20 years at Altius, he helped grow the company to an asset base of more than $ 500 million through careful execution of the prospect generator / joint venture and royalty acquisition / creation business model. He is an active member of various industry organizations and volunteer boards and has received numerous awards for his entrepreneurial leadership.
Adventus Mining in numbers
Adventus is listed on the Canadian stock exchange TSX-V under the symbol ADZN. In Frankfurt the company is tradable under ISIN: CA00791E1025 / WKN: A2PL3X.
In total, the company had around 131 million shares outstanding at the beginning of the fourth quarter of 2020, plus 5.5 million options and 802,500 ‘Restricted Share Units’, i.e. a total of 137 million shares fully diluted. The market capitalization on a non-diluted basis is around CAD 118 million with a share price of around CAD 0.90.
With around CAD 42 million in financial resources, the company is ideally positioned!
Source: Adventus Mining
Adventus is also backed by a group of globally respected investors including Altius Minerals, Greenstone Resources, Resource Personal-Financial.com Funds, Wheaton Precious Metals and the Nobis Group of Ecuador.
Source: Adventus Mining
In particular, Adventus works with the Nobis Group (Consorcio Nobis) which is known in Ecuador for its success, reputation and leadership in many sectors. The Nobis Group completed an initial investment in Adventus in 2019 to participate in the growth of responsible modern mining in Ecuador. Adventus also collaborates with the Nobis Foundation (Fundación Nobis) on development programs close to its exploration and mining projects.
Conclusion & outlook
The experienced management team around CEO Kargl-Simard has done an excellent job so far and has proven relevant experience in exploration and mining operations.
Adventus and Salazar have further expanded their partnership in Ecuador by forming a nationwide exploration alliance – much to the benefit of its investors. The joint venture Adventus (80%) and Salazar (20%) benefit specifically from the financial and technical strength of Adventus with the history of exploration success and the local know-how of the Salazar team for new discoveries in Ecuador.
There is also still a lot of untapped geological potential in Ecuador. The country lies between the renowned mining countries Peru and Colombia and extends over the Pacific coast to the high Andes and is rich in natural resources. So far, however, Ecuador has not been investigated very much for metallic minerals. Significant discoveries like ‘Fruta del Norte’ (from Salazar CEO Freddy Salazar) date back to 2006. Since then, similar geologies have been found several times, which clearly points to new successes.
In addition, the government of Ecuador is determined to encourage foreign investment for economic development and regards a modern mining sector as a pillar of long-term economic growth, which has been underpinned by significant legal and fiscal reforms in recent years.
Last but not least, the country has specifically built new infrastructure to promote growth and strategically reinvested tax and license revenues from the oil and gas sector in modern infrastructure projects across the country. The South American country is an oil producer and a member of OPEC. The domestic diesel and gasoline products are even cheaper than in other American states, which is why you have extremely low energy costs!
Adventus Mining is already covered by many brokerage houses and analysts (Cormark Securities, Haywood Securities, National Bank of Canada, Raymond James and Laurentian Bank). Haywood’s latest target price is CAD 2.50 and offers over 170% upside potential!
All in all, excellent prospects for a swift and successful development of Adventus Mining’s promising projects in Latin America! We still see a lot of potential in this company, which should cause the share price to rise sharply in the short term!
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