TD Flash NoteSolaris Resources Inc. (SLS-T) C$14.25 Maiden Drilling Started at South Arun Lamba, CFA Jamie Carmichael, (Associate) Event This morning, Solaris announced the commencement of maiden drilling at Warintza South. In addition, updated results from detailed geophysical interpretation and geochemical sampling have refined and expanded the dimensions of key targets at its Warintza Project in southeastern Ecuador. A dynamic 3D model featuring the updated geophysical and geochemical anomalies is available on the company’s website.
Impact: SLIGHTLY POSITIVE
Solaris commenced maiden drilling at the Warintza South target (goal of making the fourth discovery within its Warintza project), with the first hole collared ~3km south of Warintza Central. The Warintza South high conductivity anomaly has dimensions more than twice the size of Warintza Central, and a similar geochemical signature where exposed at surface. The updated interpretation has expanded the dimensions of the Warintza South high conductivity anomaly to ~2.5km x 2.0km x 0.7km and those of Warintza East and Yawi.
The company reported that additional geochemical sampling has also expanded the Warintza East anomaly further to the east and northeast where it now overlaps with Yawi.
Sampling continues to extend geochemical coverage over the sparsely sampled areas to the west and south of Warintza Central, and to targets beyond the Warintza porphyry cluster.
The company is in the process of redirecting their 12-rig drilling fleet toward aggressive step-out growth and discovery-oriented drilling over the balance of the year and into 2022.
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 much 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.
As at June 30, Solaris reported a cash balance of $60mm (estimated year-end cash balance of ~$40mm). Anticipated Timeline
Warintza Drill Results — Ongoing
Resource Update — Q1/22E
Warintza Central PEA — Mid-22E