1M+ Ounces of Heap Leach Gold in Mexico, But Can They Really Restart It? | Axo Metals CEO Interview

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This video is sponsored by Terrahutton, who makes the invisible, investible. Today in the CEO BBQ gold exploration in Sonora, Mexico, together with Axo Metals. But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors and this is not intended as financial advice. It is a broad, general and impersonal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on SitterPlus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases and do not consume this content. If you don't agree with everything said therein. Moving on, Axo Metals' previous flagship project was actually the La Huerta project, but San Antonio is now the more advanced asset, and it's the one that's getting the most attention. It's the main near-term development focus, if you want to call it that. It obviously carries the better name. San Antonio is located in, again, it's in Sonora, so it's roughly 160 kilometers southeast of Hermeseo, and it's interpreted as an IOCG style system, with the gold hosted mainly in hydrothermal breccias and stockwork veining associated with intrusive rocks. That actually matters. It's not only geospeak.

We'll definitely touch upon that later on. The current NI 43.1.1 resource dates back to the summer of 2022 It was done under a different company, but it contained about close to 600,000 ounces of gold at 1.2 grams per ton, as well as about 1.4 million ounces of silver in indicated. And then there was another about a half a million ounces of gold and 1.7 million ounces of silver in inferred as well. The resource covers five deposits, and it includes oxide transition and sulfide material. Again, that also matters, and I'll try to touch upon that as well. All of which will be part of a PEA, which is targeted for later this year.

And the PEA is now also going to contain, obviously, an updated resource in it. It's going to use the existing drilling database at that point with an updated metal price assumption as well, which obviously way different than it was in 2022 On the ground right now, Axo has three rigs that are working at San Antonio. They're drilling within and around Sapuche to upgrade the resource confidence and test material that was previously modeled as waste, while they're also going to be stepping out around the historical Luz del Cobre pit.

And that specifically the gap between Luz del Cobre and Sapuche is going to be interesting because it's starting to get very similar, and we'll definitely talk about that as well. The latest batch covered about 5,000 meters in 29 holes.

That was announced. They include about 18 meters of 8 grams per ton of gold in the oxide at Sapuche, and there was 46.5 meters at 1.4 grams per ton of gold from surface, roughly 750 meters outside of the existing resource at Luz del Cobre, all of which I'll hopefully be asking some questions about later on. As I mentioned, they also have a second asset. It used to be the primary asset.

It used to be that the company was called Axo Copper, actually, and that was because of this asset. That asset, again, called La Huerta, but that one is now it's in the earlier stage. It's the copper side of the story. It's located in Poelisco, roughly a 90-minute drive from the port city of Mantanil. The main mineralization there is interpreted as an IOCG-style sulfite system with choco pyrite and lesser boronite associated with applied dykes, cutting andesite. Again, not just geospeak, it matters because that basically says that it's a copper-heavy system with parts of the wider property also showing poor-free style mineralization. Again, if we have the time, I'll touch upon that later on in the conversation, but not necessarily the focus would definitely be San Antonio. Now, for some of the numbers and more details, Axo Metals is listed as Axo, so that's AXO on the TSX Venture Exchange in Canada, where the average daily volume over the last three months is in about 280,000 units. The 52-week high is $1.10 and the 52-week low is $0.30.

With 216 million shares outstanding and a $230 million market cap today, this is a $1.06 stock. There are about 3.5 million options outstanding and 39 million warrants, which collectively represent about 16.5% of the 259 million shares on a fully-valued basis.