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Spotlight 🔍 Aldebaran

Aldebaran, recognized as a Top Pick at CEM’s 8th Annual Florida Capital Event, is making waves with a game-changing resource estimate for its Altar project. In this Spotlight Q&A, Adam Greening, the company’s Senior VP, delves into why Altar is capturing the attention of the global copper market.

Disseminated on behalf of Aldebaran Resources Inc.

Aldebaran electrifies the global copper market with stunning new resource estimate

  • Aldebaran’s Altar project ranks among the world’s largest undeveloped copper-gold deposits, with an updated resource estimate revealing over 30 billion pounds of copper, alongside significant gold and silver reserves.
  • Aldebaran’s alliance with Nuton, a Rio Tinto technology venture, unlocks up to US$250 million in funding while leveraging cutting-edge technology to significantly boost Altar’s economic potential.
  • With copper demand projected to double by 2035 amid a critical supply shortage, Aldebaran’s Altar project is poised to draw interest from major mining companies seeking large-scale, high-quality copper assets.
"After completing over 63,000 meters of drilling, the resource grew substantially to over 30 billion pounds of copper and just under 7 million ounces of gold, as we recently reported… This makes Altar one of the five largest undeveloped copper-gold projects in the hands of a junior globally,"
— Adam Greening.

From powering solar panels and wind turbines to driving the adoption of electric vehicles and modernizing energy grids, copper is the indispensable backbone of the world’s electrification efforts.

However, a looming global shortage of copper threatens to derail this progress, as existing reserves of the red metal — an essential component of electrification — struggle to keep pace with surging demand. 

By 2030, global copper mines are projected to meet only 80% of the world's copper requirements, according to the International Energy Agency. Meanwhile, S&P Global forecasts that copper demand will double by 2035, creating a significant supply gap that jeopardizes the achievement of climate goals.

Amid this growing challenge, it’s not surprising that miners, investors, and industry leaders in the global copper market are keenly eyeing Aldebaran Resources Inc. (TSXV: ALDE, OTCQX: ADBRF), which recently unveiled a substantial resource expansion at its Altar project in Argentina.

The company reported that its updated Measured and Indicated Resources now stand at a remarkable 22.01 billion pounds of copper with the Inferred Resource contributing another 9.83 billion pounds of copper, firmly establishing Altar as one of the world's largest undeveloped copper deposits.

Additionally, the updated resource estimate shows 5.08 million oz gold and 93.76 million oz silver in the Measured and Indicated categories, plus 1.71 million oz gold and 49.04 million oz silver in the Inferred category.

"After we picked up the Altar project in 2018, we put out an initial resource estimate in 2021 based primarily on drilling completed before our acquisition. At that point, it had around 13 billion pounds of copper and just under 4 million ounces of gold,” said Adam Greening, Aldebaran’s Senior Vice President of Corporate Development.

"After completing over 63,000 meters of drilling, the resource grew substantially to over 30 billion pounds of copper and just under 7 million ounces of gold, as we recently reported… This makes Altar one of the five largest undeveloped copper projects in the hands of a junior globally."

Capital market analysts agree.

“Aldebaran’s highly anticipated Altar resource update has not disappointed — significantly eclipsing our ‘conceptual’ 2.0 billion tonnes ‘expectation’,” reported Cormark Securities Inc.

The updated resource numbers now position the deposit alongside an ‘elite’ group of largescale assets in the hands of a junior, it said.

Analysts at Red Cloud viewed Altar as a copper asset of ‘major’ scale that stands to garner ‘corporate attention’ before Aldebaran would have to start building a mine.

“Altar is one of the largest undeveloped copper-gold deposits in the world and we believe it should be sought after by major mining companies,” reported Red Cloud.

Building on the latest resource estimate, Aldebaran is currently advancing the Altar project towards a Preliminary Economic Assessment (PEA) expected by the end of Q2 2025, and a Pre-Feasibility Study (PFS) in 2026.

Aldebaran Resources was established in 2018 as a spinout from Regulus Resources Inc. and retained the same veteran management team, which has an enviable track record of success in Latin America, having sold their previous junior company, Antares Minerals, to First Quantum for C$650 million.

At the heart of its portfolio is the Altar copper-gold project in Argentina’s San Juan province, which is ranked as one of the top-rated jurisdictions in Latin America for mining investment attractiveness by the Fraser Institute.

Located approximately 10 km from the Argentina–Chile border, it is part of a region containing world-class deposits like Los Pelambres (Antofagasta Minerals), El Pachón (Glencore), and Los Azules (McEwen Copper), presenting significant exploration and discovery potential.

Aldebaran has also entered into an Option to Joint Venture agreement with Nuton Holdings Ltd., a Rio Tinto venture, for the Altar Project.

This collaboration aims to leverage Nuton's proprietary sulphide leaching technologies at Altar, potentially increasing the project's economic viability.

In addition to Nuton, Aldebaran has major financial and strategic backing from; Route One Investment Company, a San Francisco-based hedge fund; Sibanye Stillwater, a multinational mining and metals processing group; and South32, an Australian-based mining and metals company, that was spun out from BHP.

A Top Pick at CEM's 2024 Florida Capital Event

As interest from investors and the broader copper market surged around Aldebaran’s updated resource estimate, the company earned further recognition as a Top Pick at CEM’s 8th Annual Florida Capital Event last November. At the event's signature Investor Breakout Exchange, Aldebaran’s appeal stood out in a roomful of capital market players hungry for high-quality, undervalued copper-gold assets.

Stock Information TSXV: ALDE

💰
$189M
Market Cap
🔷
$1.71
Priceš
🎉
$1.93
Picked²
  1. As of market open on Wednesday January 29, 2025
  2. As of market open on Monday November 18, 2024 after being selected as a Top Pick at the CEM Florida Capital Event

Shortly after Aldebaran announced the filing on SEDAR+ of its updated Technical Report and Mineral Resource Estimate this month, I spoke to Adam Greening, the company’s Senior Vice President of Corporate Development for this Spotlight Q&A.

How does Aldebaran view Argentina as a mining jurisdiction, and what are the key advantages and challenges of operating in the region?

“Aldebaran views Argentina as a mining jurisdiction with significant potential, particularly due to its rich mineral deposits and its history of successful mining operations. The country has the world’s fourth largest copper reserves that are largely untapped. Argentina, five years ago, was kind of no man's land for mining. The rocks have always been right, but the issue was federal-level fiscal constraints, like export taxes and getting money in and out of the country.

Now with Javier Milei as President, Argentina has gone from having one of the highest tax rates in South America to one of the lowest when it comes to mining. This has made it much more attractive for mining companies to invest in development projects.

This administration has also said it wants quicker permitting, and clearer processes for mining projects. But like in many South American jurisdictions, there are issues of inflation, getting social licence, and currency volatility.

In San Juan, where we are, we have strong support and relations with the local community, while also getting good support from the Federal level. We are confident in our team’s ability to navigate the Argentine mining landscape and unlock the immense potential of the Altar project.”

How does your collaboration with Nuton complement Aldebaran's goals for the Altar project?

“Our partnership with Nuton provides significant financial support without diluting our shareholders and puts us in a position to be fully funded to the completion of a PFS. This funding, potentially totalling US$250 million, has four milestones, two of which have been completed. Upon signing, Nuton made a payment of US$10 million, and they made another payment of US$20 million when we delivered our updated mineral resource estimate recently. The next payments of US$30 million are tied to the delivery of the PEA expected in Q2 of 2025 and US$190 million upon delivery of the PFS in the second half of next year.

Secondly, Nuton’s proprietary sulphide leaching technologies could add significant value to the Altar project by reducing the costs and capital required for development. While we believe Altar is viable without Nuton's sulphide leaching technology, its potential application could be a game-changer. 

Our upcoming PEA and PFS will present both Nuton and non-Nuton cases to provide a comprehensive evaluation of Altar’s potential. This partnership with Nuton, which is a Rio Tinto technology venture, also enhances our project's credibility and appeal, demonstrating Altar's world-class potential.”

What’s next for Aldebaran in 2025?

“2025 is shaping up to be an exciting year for Aldebaran and we are anticipating some major catalysts during the year. The big highlight is going to be our PEA, which we expect to complete by the end of the second quarter and we're pretty excited about it. 

Keep in mind we are also doing some strategic infill drilling to increase the confidence in our mineralization. These drill results hold the potential to move more of our resources from the Inferred to the Measured and Indicated categories.

This is crucial because only Measured and Indicated categories can be used in our upcoming Pre-Feasibility Study, which we're targeting to complete by the end of 2026.

And let's not forget our partnership with Nuton. We'll be working on metallurgical sampling and testing their sulphide leaching technology, which could potentially add significant value to the project.

So, while 2025 might sound technical, for us, it's about laying the groundwork to unlock Altar's massive potential. Looking at copper M&A transactions in the last 15 years, the value of projects increase significantly when they’re advanced from resource definition, where Altar is now, through to PEA and PFS, where we are heading.”

Our View

  • A World-Class Copper-Gold Asset in a Strategic Location
    Aldebaran’s Altar project in San Juan, Argentina, is one of the largest undeveloped copper-gold deposits globally, boasting over 30 billion pounds of copper and significant gold and silver resources. Located in a mining-friendly jurisdiction, Altar benefits from proximity to neighbouring major mining projects. Argentina’s improving fiscal environment and mining policies under the current administration further enhance the nation’s attractiveness as a mining jurisdiction.
  • Strategic Partnerships with Industry Leaders
    Aldebaran has forged a game-changing partnership with Nuton, a Rio Tinto technology venture, securing up to US$250 million in funding to advance the Altar project to the Pre-Feasibility Study stage. Nuton’s proprietary sulphide leaching technology has the potential to significantly reduce costs and capital requirements, further increasing Altar’s economic viability. Additional backing from Route One Investment Company, Sibanye Stillwater, and South32 strengthens Aldebaran’s financial and operational position, while enhancing its credibility in the copper market.
  • Positioned to Address a Critical Global Supply Gap
    With copper demand projected to double by 2035 and a looming supply shortage threatening global electrification goals, Aldebaran’s Altar project is ideally placed to meet this need. As one of the five largest undeveloped copper projects held by a junior company, Altar is poised to attract major corporate attention. The upcoming Preliminary Economic Assessment (PEA) and Pre-Feasibility Study (PFS) will further highlight the project’s potential, setting Aldebaran apart as a key player in the race to supply the world with critical copper resources.

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Fabian Dawson

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