Here's a summary of our interview with Prospectiva Resources CEO James on the São Francisco copper-gold project in northeastern Brazil. Full write-up and video at the link.
Overview:
What have they done for shareholders lately?
How much money do they have and what are they spending it on?
Upcoming catalysts
Risks
Full Article: https://resourcetalks.com/copper-stocks/high-grade-copper-in-brazil-but-is-there-a-real-system/
TL;DR
They own 100% of São Francisco from day one, bought out of Pan American Silver for US$500,000 on signing, with US$350,000 due January 2028, a US$3 million payment only if they define a million ounces gold equivalent, and a 1% royalty back to Pan American. No back-in, no ROFR, no change of control fees. Yamana drilled about 5,900 m and hit high grade near surface, including intervals around 6.% copper over 7.5 m and 7.5 m at roughly 4% copper, but never called it a VMS and never ran EM before drilling. Prospectiva’s differentiator is a fixed-loop EM survey that has outlined a roughly 3 km conductor corridor between the western high-grade zone (SF1) and the eastern disseminated zone (SF2), plus oriented core and downhole EM to build a structural model. The current 10-hole, 2,500 m program is fully funded and will not answer everything. James was upfront that a second phase of about 5,000 m is what he wants next, that direct drilling costs are around C$300 per metre, and that they will need to raise north of C$3 million to fund it. Grade and continuity are the two unknowns he flagged himself, and he said geology risk is what keeps him up at night.
