TD Flash NoteWarintza East Continues to Expand Arun Lamba, CFA Kulvir Gill, CFA (Associate)
Event This morning, Solaris reported results from four holes aimed at growing resources at the Warintza East discovery within its Warintza Project in southeastern Ecuador.
Today's follow-up results continue to expand the drilled dimensions of the Warintza East footprint to the northeast, east and south, with the deposit remaining open in these directions.
Impact: SLIGHTLY POSITIVE
Warintza East (discovered July 2021) is one of four discoveries made within the Warintza porphyry cluster. Recall, eight holes covering the overlapping periphery were included in the April 2022 Warintza Central Resource Estimate (~1.5 Bt at 0.52% CuEq).
SLSE-16 was collared at the eastern limit of the grid and drilled southwest into an open volume, returning 108m of 0.57% CuEq within a broader interval of 712m of 0.45% CuEq from surface, extending mineralization to the south and southeast where it remains open. This hole was collared approximately 250m to the southeast of SLSE-13.
SLSE-17 was collared in the middle of the Warintza East drill grid and drilled southeast into an open volume, returning 144m of 0.52% CuEq from surface within a broader interval of 914m of 0.40% CuEq, extending mineralization to the east where it remains open.
This hole extends the drilled dimensions further to the east beyond SLSE-14, which previously returned 694m of 0.40% CuEq.
SLSE-19 was collared in the middle of the Warintza East drill grid and drilled northeast, returning 270m of 0.40% CuEq from surface within a broader interval of 580m of 0.31% CuEq, expanding the footprint to the northeast where it remains open.
Overall, in our view, drilling to date confirms Warintza East as a porphyry deposit that adjoins Warintza Central and remains open for expansion, with assays pending from a series of extensional holes to the north, east, south, and southeast.
Our view that Warintza provides strong exploration upside exposure continues to increase, given recent results. In an effort to be conservative, our model for Warintza does not incorporate the company's other discoveries/targets (West/ South, Yawi, etc.).
Solaris reported cash of US$22mm (November 8) and no debt. Additional funds could come from warrants expiring in May 2023 (C$30mm at C$1.20/sh).