Gold Hart Copper Completes Acquisition of Historic Copper-Gold Mine in Chile

0:16Isaac Maresky: All right, everybody, welcome back into Mining Stock Daily. We're going to actually take a little bit of a break of our continued coverage of the Zurich Precious Metals Summit because one of our current partners, that's Goldheart Copper, had meaningful news out this morning. and they actually have completed the acquisition of the Copioso asset there in Chile. This was kind of news that was expected. CEO Isaac Mareski joins us here today. Something that we, you know, kind of anticipated for the last couple months. So one quick note, Goldhart Copper does trade on the Venture Exchange with HART. Isaac, good to see you.

0:50Isaac Maresky: Congratulations on finalizing this. It's got to feel good to put another meaningful asset here within the Hart portfolio. Yeah, great to be back on the Mining Stock Daily. Thanks for having me, Trevor. Really happy about this property. It's been a long time in the making, and I think this asset really has potential to catapult Goldheart as a company. okay let's start with how this transaction came together you've acquired a former producing carbon gold asset in chile through government claims process rather than any sort of like traditional purchase agreement how does this opportunity become available and how was the timing so good uh we really got lucky but you know you have to be very very hard working to be lucky in this business, we've been monitoring hundreds of claims in Chile for years and years.

1:45And every year, you know, we keep an eye on the claims that we like. We go to the government auctions, we monitor the claims maps, and we found this property that we really like. And we thought there's a potential opportunity to file an application for it. And we got it, right? So we won. It feels like we kind of won the lottery on this one. But as I say, you have to have chips on the table to win at the casino. And we've had chips on the table for years and years on various different opportunities. And this one finally came through. So it's a big win for Goldheart and for Goldheart shareholders.

2:20But it has been years and years in the making in terms of monitoring every property of interest in our jurisdictions of focus.

2:28Isaac Maresky: okay how is this property remains undeveloped for so long right what is the overhang on this so why would somebody let it go i actually recently did a study that showed that the average successful gold mine has had five prior owners right so every gold mine that is producing gold making cash flow had four or five owners look at it and say this is not good enough for us for some reason. Now, maybe the gold price or copper price is too low. Maybe the capital markets environment is not right. Maybe the geologists are not looking at it in the way that it ends up getting worked. But for various reasons, the most successful gold mines in the world, Sean Ruzin's Canadian Malartic, which started those Cisco, is the prime example.

3:17Barrick Gold looked at that asset and thought, this is a liability of millions of dollars and has to be in bankruptcy, right? And then Sean Rosen came and got it for 188 ,000 Canadian dollars, which is like 120 ,000 US. And it's now one of the largest gold mines in Canada worth billions of dollars. So it doesn't faze me if an asset is not already operating. You have to look at something with fresh eyes and follow the science. This asset was mined in 2007. It actually produced 427 ,000 pounds of copper at 1.5 % copper in 2007. It's been worked a bunch intermittently. We don't have exact numbers aside from that 2007, but we know that it's been worked before and after that.

3:59But this asset really hasn't been explored with real capital. As far as we can tell, it's only been explored to about 100 meters. We see visible copper mantos over a few kilometers. we see you know maybe a dozen or so mines or adits or tunnels so this property has been worked very minimally in our view relative to its potential and not only relative to its potential but also relative to even the prior owners historic estimate or historic exploration target so there's actually two different resources or historic exploration targets on this asset i have to be very careful what I say. But if you look at the historic documents, two different mining engineers put out different opinions on what this asset hosts in their view.

4:49And both of them only went down to about 100 or 150 meters.

4:54Isaac Maresky: Okay. That non-43-101 compliant historic, those numbers, let's talk about it. Like again, historic, not compliant by NI-43-101 regulations, but that number, it's 45.8 million tons at 1.14 % copper. So how much confidence can you realistically place on those numbers there, Isaac? And what evidence gives you conviction that that mineralization could exist at the scale? In terms of the company's confidence level, I really can't give our opinion because we just got the property. The only survey we've completed on the property last week is a drone survey, which is really just kind of best practice for getting teams on the ground.

5:41You want to know exactly what the asset looks like from an aerial perspective, where the tunnels are, where the adits are. You want to make sure everyone's safe. So we kind of now have a lay of the land to a pretty microscopic level such that we can allocate teams. So we finished the drone survey. Now we're getting geophysicists on site. We think geophysics is going to be really interesting for this asset because, you know, let's say we run a magnetic survey and the mag pops up in every area where we see the manto, the copper mantos on surface or the historic mining areas. That's going to be a pretty interesting correlation for where there might be more copper or gold.

6:19Or same for chargeability, right? Or resistivity. If the areas are lighting up, pink and red where we think there's clearly visible mineralization, then we have an idea of where it might be deeper or along strike. But there's several kilometers of strike as far as we can tell. In terms of confidence, all I can say is there's clearly copper visible in various areas on this property. You can see the green. I actually have the asset as my background of this interview. You can see literally like there's works everywhere. It's not like we just went to the desert and there's some historic resource. There's been a bunch of mining here.

6:59There's documented mining. There was almost half a million pounds of copper produced in 10 months of 2007 alone, right? So this is clearly an area of historic interest. Multiple mining engineers looked at this and put a resource on it. We're technically not allowed to call one of them a resource because it came through a second, uh, uh, you know, kind of a third party's analysis of that prior resource. So we can call one of them a historic resource estimate and one of them a historic exploration target, but they range from 30 to 80 million tons. Um, and the copper grades are something like one to one and a half percent copper with gold credits as well and silver credits as well.

7:40So, you know, you can do your own math, but the numbers quickly add up to pretty, large numbers. Okay.

7:46Isaac Maresky: So you've officially taken control of the asset here at Copioso, but the announcement specifically references an exploration mining concession. Isaac, what rights does Gold Heart now hold and what additional steps might be required to secure exploration rights? Is that something you already have or something you'll need to acquire? We have everything we need to get moving. We control this asset just as we control all of our assets. The only step we're going to have to complete is the standard drill permit, which shouldn't be an issue. But we have at least a month or two now of pre-drilling work.

8:24As I said, we finished the drone survey. Now we're going to do magnetic and probably IP chargeability survey. We got to do a bunch of mapping, and then hopefully we'll have drills here as soon as possible, maybe even first month of the new year.

8:39Isaac Maresky: Okay. So let's talk about what you do over those next two months, not only at Copioso, but also within the other assets within the portfolio. Does it feel like Copioso is going to get a bulk of the attention this expiration season? And even if you're just doing early stage, kind of de-risking ahead of a drill program at Copioso, what can be done in parallel with other said properties? One of the reasons I love Copioso is because it's so proximal to Copiapo, where we have our head offices in Chile. And if you look at a map, we have Copiapo, the mining town in Chile, where we have our headquarters.

9:17You have Copioso, about 20 minute drive away. You have Nessa, about an hour and a half away. You have Manto Cobre, which is about an hour away. And then you have, of course, our Vicuña assets, which everyone knows us for, Toro, Tolita, Cachitos, Casales Sur, and Zelma, which is about a three and a half hour drive into the mountain. So everything is kind of centered around Copiapo. In terms of which assets are getting attention, I believe it's most prudent for us to focus on the assets where we can create the most value for the lowest capital. Now that doesn't mean our Vicunia assets are going to be neglected.

9:51We've received pretty strong interest in our Vicunia assets from several partners who know Porphyries, who know the Vicunia district and I love our Vicuña assets and Tolita to this day remains our flagship asset. I still don't think people appreciate how rare it is to have 740 meters of mineralization in the Vicuña district on one of your first drill holes. So Tolita is still a beautiful asset. Toro is a great secondary asset and our other Vicuña assets are phenomenal. It might just be a partner spending money on those assets in the coming year or so. whereas Goldheart will be allocating our own geologists to developing Copioso, the Nessa complex, which is comprised again of a few assets, Ringo, Nessa, Rebecca, and Manto-Carolina, and then Manto-Cobre, which is our new asset south of Manto-Verde, Capstone's big, and of course Copioso, which is right near our office and is ripe for expedited exploration and development.

10:57So we have a lot of really, really great assets. I think right now, the plan in our view is let's find the right partner to help us develop the Vicunia assets. Let's focus on the assets very close to Copiapo, which is the Nessa complex, the Manto-Cobre complex, and the Copioso complex. And I really think people are going to be blown away by what we can do.

11:24Isaac Maresky: okay you got you got teams on the ground here today yeah i mean so what what's happening on the ground you mentioned the drone survey what else is happening on the ground we've had teams on the ground in nessa and mental cobre over the past month um we've been doing quite a lot of work in terms of geophysics and geochemistry at both the nessa complex and mental cobre um we actually just finished a geophysics survey at Manto Cobre. I'm really excited about that. Again, the market totally was asleep when we pushed out that news that we acquired Manto Cobre. It has seven historic mines on site, visible copper everywhere.

12:05It was mined for copper and gold in the past by artisanals. It's just south of Capstone's Manto Verde, which is a beautiful, huge copper mine. One vein, one vein of copper and gold on Manto Cobre is 145 meters with multiple levels. So it has depth too. And we own it outright, again, from the government process, almost the same process as Copioso. So I think Copioso is probably one of the best deals we've ever done in terms of what we've acquired for what we spent. And Manto Cobre is a pretty close second. I love our portfolio of assets and I think you know we have enough cash in the bank to take these assets very far along the value chain.

12:48Isaac Maresky: Okay very good all right well congratulations on this I'm just curious I know that the news just recently went out but what has been some you know reaction from any of your shareholders and you know larger stakeholders I think the stock was of about 10 % on the back of this news last I saw but internal dialogue what are you hearing? People really love the deal people are really excited about it. You know, a lot of people thought, sort of that, a lot of people really thought that this would be a potential catapult for Goldheart. And it came through. There were definitely some doubts as to whether we'd be able to actually finalize this deal.

13:28And we finalized it. So I think it's one of our best deals ever. And I'm really excited to see what we can do with it. I'm really, really excited to get a drill rig on site at Copioso so and hopefully start showing the market that there really is size to this thing very good

13:44Isaac Maresky: all right isaac thanks so much congratulations once again obviously a lot of news coming down the pipeline is expiration season down in chile it's starting to kick off here pretty soon if it hasn't already started obviously it has started but some of the higher stuff were so i think there's still some snow up in the higher altitudes that needs to kind of warm up and and be dismissed but more to come here from the company this exploration season. Once again, Goldheart Copper does trade on the venture with HART. I am a shareholder of the company. They're a partner of the podcast. Isaac, we'll talk to you again here in the next coming weeks.

14:16Thanks, Trevor. Thanks for listening. Appreciate it.

14:18Isaac Maresky: The information presented should not be considered investment advice. Mining Stock Daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.