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Rising to Meet the Green Revolution

Featured Submission, Featured Submission
1 Comment| October 21, 2021

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Q&A with Max Resource Corp


Max Resource Corp (TSX-V: MXR) is a copper and precious metals exploration company focused on projects in Colombia and Peru. In this in-depth Q&A, Max’s executive team shares investment highlights and key moments in 2021’s ongoing exploration at its flagship CESAR copper-silver project.
Why invest in Max Resource Corp?

Max boasts the following attributes:
  • Management team with a track record of value creation
  • District size copper-silver project potential in Colombia
  • Third-party validation of CESAR copper-silver project from worldwide copper producer and global miner plus universities in Krakow, Poland, and Medellin, Colombia.
  • Drill ready high-grade gold project in Peru

Max is great leverage to copper, silver, and gold because the Company is advancing:
  • the district scale CESAR Copper-Silver Project in Northern Colombia
  • the high-grade RT Gold Property in Peru.

With leverage to copper, silver, and gold, Max Resource Corp. (TSX-V: MXR) is positioned to thrive in the ongoing commodity bull market which looks to extend well beyond 2021.

Can you tell us about your CESAR copper-silver project?

The CESAR Project is located 420 km north of Bogota covering approximately 500 sq km in northeastern Colombia. The town of Barrancas is 70 km to the north by a paved road with a population of 37,000. Local infrastructure includes a municipal airport, rail lines, hydroelectric power, and access to tidewater, at the Puerto Bolivar shipping terminal 180 km to the northeast. The copper-silver project lies along a historic 120-km copper-silver belt within a major oil-gas and coal mining district. Access is relatively easy in this arid area (ie. not jungle) of Colombia. It features rolling hills and excellent infrastructure including townships, power, roadways, railways, airports, and shipping ports.

What kind of copper deposit is the CESAR?

CESAR represents a type of large-scale sedimentary hosted copper mineralization which is typically flat-lying, near-surface, and is found extensively in Africa, Poland, and Colombia. Early indications from experts who study this type of deposit confirm the CESAR resembles the sediment-hosted copper-silver mineralization of the Kupferschiefer deposit in Poland. These types of deposits are generally known to be larger and higher grade than copper porphyry deposits.

Max is using a similar exploration model that discovered the Kupferschiefer deposit:

  • Identify a very large surface footprint target of 300sq.km
  • Continuous mineralized horizon, dips gently to NW, outcrops on hillsides and in creeks
  • Logging and XRF of oil/gas drill hole core/chips for the presence of copper
  • Interpretation of seismic data over an area of 40-km by 20-km

The Kupferschiefer deposit is the world’s #6 copper producer and #1 silver producer. It has an average grade of 1.5% copper + 49g/t silver mining from 500m depth with 2-metre mining width. The Kupferschiefer deposit is huge with mineralization spread over 300sq km.

For the CESAR Project, we are targeting 1.0% copper + 20 g/t silver with mineralization at surface spread with a 300 sq km mineralization target.

What is the history of the area, and how was CESAR discovered in Colombia?

Historically, the Cesar area has been explored from a local context, but never in a broader district context using advanced exploration technology and methods. In 2019 Max acquired an initial stake in the CESAR North as a potential copper project. However, our field work quickly confirmed widespread historic copper-silver occurrences and early on we felt that the copper mineralization could be of significant size with district scale potential.

There are major mining operations within the Cesar basin: Anglo-BHP-Xstrata operates Cerrejon, South America’s largest coal mine, plus Glencore, Drummond, and Chevron have operations in the area. This is an indication of excellent infrastructure in the region and friendly jurisdiction for mining and oil & gas companies.

One important fact is that no other exploration or mining company has explored this region of Colombia for copper. Max is the first.

There are kilometers of historical drill core and seismic from oil & gas exploration in the Cesar basin. Max is the first mineral exploration company to test the historic drill core for copper and other mineralization.

What results have been recorded on the CESAR copper-silver project?

Surface exploration has identified four distinct zones and has produced some great and very encouraging results suggesting district-scale potential:
  • CESAR North zone is 80-km long, open along strike and down dip with highlight grab sample assays from varying intervals with high-grade values of 1.0 to 34.4% copper + 5 to 305 g/t silver.
  • CESAR South zone covers 340 sq. km and hosts stratabound copper-silver over at least 15-km of strike with highlight grab sample values of 11.4% copper + 656 g/t silver.
  • CESAR West: Jurassic host rock identified copper-silver mineralization along 180-kilometre-long landholding.
What were the exploration plans for 2021?

The Company had implemented a multi-faceted exploration program for 2021 to establish the potential strike, recording dip, and width of the mineralization and investigation from a more regional perspective. The exploration team continues to identify mineralized outcrops, with visible malachite, azurite and chalcocite, hosted in sedimentary and/or volcaniclastic rocks, typical of a sedimentary hosted.

  • Advance the CESAR North (URU and CONEJO): systematic mapping of the rock-bearing mineralization to significantly expand surface extent and grades as well as orientation to delineate drill targets.

  • Advanced Drill Core Analysis and Modelling: ongoing interpretation of seismic sections and analysis of historic oil & gas exploration drill holes are all being integrated into our structural modeling of the Cesar Basin, in collaboration with Ingeniería Geológica Universidad Nacional de Colombia in Medellín

  • Geochemical and Mineralogical: geochemical and mineralogy research programs by the University of Science and Technology (“AGH”) of Krakow, Poland. AGH bring their extensive knowledge of KGHM’s world-renowned Kupferschiefer sediment-hosted copper-silver deposits in Poland to the CESAR project;

  • Geophysics: Fathom Geophysics is interpreting regional airborne magnetic and radiometric data, funded by the Company in collaboration with one of the world's leading copper producers;

  • Proprietary Field Exploration & Techniques: Max’s exploration teams continue to explore copper-silver stratabound targets at CESAR.

The results of the four-step exploration approach continue to be integrated with the existing Company database to build a three-dimensional (3D) model. The model will assist in determining the thickness and extent of the CESAR copper-silver mineralization at surface and depth, anticipated to greatly assist ongoing exploration.

Where is your surface exploration focused today?

We are focused on expanding AM North, advancing the Conejo and URU zones, and confirming our exploration model concerning the overall CESAR Basin.
CONEJO Copper-Silver Discovery
In March 2021, Max reported the CONEJO discovery (March 24, 2021, NR), spanning over 1.6 by 0.6-km and open in all directions. In May 2021, the latest set of assays expands the CONEJO copper-silver zone to an area covering 3.2-km by 1.6-km. The CONEJO zone remains open in all directions, lying along the mid-portion of the 80-kilometre-long CESAR North copper-silver belt.

CONEJO assay results include:
  • highlight values of 12.5% copper and 120 g/t silver from panels varying from 5m by 5m to 1m by 1m,
  • 23 twenty-three rock panels returned values above 5.0% copper from varying from 5.0-metre by 5.0-metre to 1.0-metre by 1.0-metre;
  • 66 panel samples returned values over 1.0% copper.

The CONEJO mineralization occurs both as a stockwork of cross-cutting fractures and as disseminated mineralization hosted in igneous rock. Observed minerals include chalcocite, native copper, cuprite, and copper oxides. Epidote is commonly associated with copper mineralization.

URU Copper Discovery
In early April, Max reported the URU zone discovery lying along the southern portion of the CESAR North belt. The presence of copper mineralization extends over 3.7-kilometers and is open in all directions.
The first results showed fifteen rock chip channels over widths of 10m, along 4-km of strike, returned assay values greater than over 1% copper, highlight values of 5.7% copper and 14 g/t silver.
As of August 2021, Max edpanded the URU Zone to over 12-km² reporting 3.9% copper over 10-metre widths and visible copper mineralization at CESAR North, NE Colombia.
  • Eight rock samples over widths ranging from 10 to 25-metres returned values of 2.0% copper and above,
  • twenty-one returned values greater than 1.0% copper, with highlight values of 3.9% copper and 37 g/t silver.

The Max field team is currently rock chip sampling and mapping the copper-bearing rock to determine the potential volume and average copper-silver values. Max cautions investors that rock panel sampling can be selective and are not necessarily representative of the mineralization.

When does Max expect to drill CESAR?

The Company has implemented a multi-faceted exploration program for 2021 to establish the potential strike, recording dip, and width of the mineralization and investigation from a more regional perspective:

  • Proprietary Field Exploration & Techniques
  • Geochemical and Mineralogical
  • Geophysics
  • Advanced Drill Core Analysis and Modelling

The results of the four-step exploration approach will be integrated with the existing Company database to build a three-dimensional (3D) model. The model will assist in determining the thickness and extent of the CESAR copper-silver mineralization at surface and depth, anticipated to greatly assist ongoing exploration.

The analysis of the historical drill core is very important and when complete Max will be in a good position to establish drill targets to test the exploration model. Management has applied for a mineral license for the CESAR project and once approved will apply for drilling permits.

Management estimates Q4 2021 for a potential start of an initial drill campaign.

Can you tell us what major mining companies are interested in the CESAR copper-silver project?

Due to its early exploration success with the CESAR Project, Max has signed non-disclosure agreements with mining companies which are currently reviewing all of the exploration data related to the project. The mining companies wished to remain anonymous due to competitive reasons.
  • Max has entered into a non-binding collaboration CA on CESAR with one of the world’s leading copper producers, and a consulting agreement with Fathom Geophysics,
  • Entered into a non-exclusive CA with a Global Miner in respect to the CESAR copper-silver projects.


Has Max attracted other world-class interests?

Yes, the new copper-silver discovery in Colombia has attracted interest from the financial, exploration, and academic sectors.

In December 2020, Eric Sprott invested $2 million through a private placement to become Max’s largest shareholder. Also, Max has teamed up with two international universities known for their work on sedimentary hosted copper mineralization deposits:

  • Ongoing studies with the University of Science and Technology (AGH) Krakow, Poland, which have a long history of cooperation with KGHM, Europe’s largest copper producer and the world’s largest silver producer
  • Geológica Universidad Nacional de Colombia in Medellín are conducting the ongoing structural study and modeling of CESAR

How much cash does Max have? What is Max’s market capitalization?

The last financing was completed in October 2020 when Max closed an oversubscribed $6.5-million non-brokered private placement. The financing included management and featured a $2 million strategic investment from Eric Sprott, who remains the Company’s largest shareholder.

Currently, Max Resource has approximately $4 million in cash and a $20 million market capitalization.


FULL DISCLOSURE: Max Resource is a client of Stockhouse Publishing.



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