From TD this morningSolaris Resources Inc. (SLS-T) C$11.68 Warintza East Expanded; Targeting High-grade Link to Central
Event Yesterday morning, Solaris reported additional results from its recent Warintza East discovery within its Warintza Project in southeastern Ecuador (see our initial thoughts here).
Impact: NEUTRAL
The first two holes at Warintza East (see page 2) returned long intervals of copper porphyry mineralization from surface across a significant portion of the undrilled gap to Warintza Central (suggesting potential continuity between the two zones).
The company reported that visual observation of mineralization in the second hole and step-out drilling completed northeast of Warintza Central suggest an offset in the east-west corridor of higher-grade mineralization to the north that is being targeted in ongoing drilling.
Moreover, visual observation of core from SLSE-02 suggests that a broader interval of mineralization may exist than the portion for which assays have been received and reported herein.
Remaining assays are expected in October, along with the results of step-out drilling from Warintza Central.
With the latest discovery at Warintza East, it appears that the conceptual pit shell could be extended to the north and east (potential to become a ‘superpit’ joining the two areas).
Recall, our model for Warintza is based only on Warintza Central (we currently anticipate resources of ~620 Mt at ~0.65% CuEq; however, recent drilling suggests that we could potentially see a bigger resource) and does not incorporate the discovery potential at the company's other targets (West, South, East, etc.). An updated resource is expected in Q1/22.
Solaris is well-funded, with $60mm of cash as at June 30. TD Investment Conclusion World-class discoveries are rare and unique, and we believe that Solaris is in the early stages of making multiple world-class discoveries among its cluster of porphyries on the Warintza property. We expect the stock to continue to re-rate higher as the company demonstrates the growth potential of the project.