High-Grade Copper in Brazil, But is There a Real System? | Prospectiva Resources CEO Interview

**Antonio** (0:00)
This video is sponsored by Terrahutton, who makes the invisible, investible. Today on a CEO BBQ, Copper and Gold Exploration in Brazil, together with Prospectiva Resources. 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 in-personal 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, Prospectiva's flagship is the South Francisco Copper Gold Project in Pernambuco State that's in northeastern Brazil. And it's roughly 30 kilometers southwest of Pico de Jambre, which is the highest point in the neighboring Paraiba.
Yamana actually already worked this asset. They made a discovery. They proved up that there's locally, at least, high-grade copper here. Some of the historical holes that they drilled were up to 6.5% copper over 7.5 meters. And they had another interval. It was 7.5 meters at close to 4% copper. But nobody has really demonstrated how much of that high-grade material really there is and how much of it connects into meaningful tons that would look good on an MRE, which of course will be a big part of the conversation today. But in short, Prospectiva now interprets the mineralization a little bit differently than what Yamana was doing, as far as I understand. And of course, we'll talk about that. But they think this is a deformed and metamorphosed VMS-style copper and gold system.
Right now, they're drilling a relatively small, so it's a 2,500-meter program, 10 diamond holes, which they started in August. So just this summer, there's going to be five, roughly 150-meter holes, initially testing one of the shallow high-grade areas before the rig moves east towards some of the more important, or one of the more important targets, but also some of the previously undrilled EM conductors. There are other projects in this portfolio as well, by the way. There's TABIRA being one of the most advanced gold project that they have. It's got 5,500 meters of historical drilling into structurally controlled orogenic style mineralization and detailed structural mapping is planned there next. While Pico de Jambre and D'astero, so other projects, they're much earlier stage gold targets, actually, if you can call them that, where recently there's been some early works, mapping and sampling and stuff like that. Some of the results showed that they should do some follow-up. Structural mapping, soil work and channel samples are going to be the next step there.
Again, not the focus of the conversation, not the focus for the company either, but maybe a brief update on the secondary stuff later on as well.
Now, for some of the numbers and a bit of the details, Prospectiva is listed as PSVA on the TSX V Exchange in Canada, where the average daily volume over the last three months has been about 9,000 units. 52-week high is 80 cents and a 52-week low is 3 cents. With 26 million shares outstanding and a $16 million market cap today, this is a 63-cent stock. There are about 6 million options and warrants outstanding combined, which collectively represent about 20 percent of the 32 million shares on a fully diluted basis. The last time they raised capital was in July. Again, just this summer, right before drilling, they closed on a $3.7 million financing at 81 cents with a full warrant at 13 cents for two years.
How much of that money have they got now? How much of the money are they going to have left at the end of this drill program? How much money are they going to have to raise for the next drill program? And where is that money going to come from? Those are all questions that we'll be asking later on in the conversation. But for this to actually become a conversation though, I will have to shut up already. And Dan, I'll give you the word here. But first of all, thank you for sitting down with me today.

**Dan James** (4:07)
Thank you. Good afternoon. Thanks very much.