Josemaria Resources Inc. (TSX: JOSE) (OTCQB: JOSMF)
Josemaria Resources Inc. (TSX: JOSE) (OTCQB: JOSMF) is a Canadian natural resources company based in Vancouver, British Columbia. The company's current focus is on advancing the development of its wholly owned Josemaria copper-gold mining project.
Josemaria Resources is part of The Lundin Group of companies, a conglomerate of 13 business entities operating in the mining, oil and gas and renewables sectors all around the world.
The Josemaria Copper-Gold Project
The company's flagship Josemaria Copper-Gold Project is located in the San Juan Province of Argentina – a well-known mining hub supporting a wide variety of mining service companies. The Lundin Group has been active in Argentina for approximately 30 years. Committed to advancing the project, Josemaria Resources has already begun the bridging phase, with basic and detailed engineering planning expected to commence in early 2021.
The company recently announced the results of a feasibility study at the Josemaria Project. The study, prepared by a team of engineering and consulting providers including Fluor Canada Ltd., SRK Consulting (Canada) Inc. and Knight Piésold Ltd., highlights a robust, low-risk project with rapid payback expected via an open pit operation with forecast capacity to feed a conventional process plant at a rate of 152,000 tonnes a day over a 19-year mine life.
According to the feasibility study, the project is expected to yield an average annual production of 136,000 tonnes of copper, 231,000 ounces of gold and 1,164,000 ounces of silver. Other highlights of the study include:
- The optimized mining production plan provides average grades in the first three years of production that are notably better than the life-of-mine average. This supports a forecast 3.8-year payback period from the start of production.
- The project's total initial cost, including engineering, procurement, construction, management, on- and off-site infrastructure, contingency and pre-construction engineering work, amounts to roughly $3.09 billion.
- The location provides readily available access to essential resources, including water, grid power, transportation and logistics infrastructure within San Juan Province.
- An Environmental and Social Impact Assessment (ESIA) of the project is already underway and is expected to be submitted to relevant authority agencies for review during Q1 2021.
The Josemaria Copper-Gold Project has been designed to incorporate the latest technology. Per the feasibility study, the project will include the use of autonomous trucks and production drill fleets, with the option of incorporating green energy, indicating the company's commitment to minimizing and mitigating the adverse effects of mining on the environment.
To this end, the company intends to leverage suitable planning, impact assessment and monitoring tools while also incorporating water and energy efficiency systems and ecosystem conservation services in the design and implementation of its operations.
Josemaria Resources President and CEO Adam Lundin welcomed the results of the study as confirming that this is one of the very few readily developable copper-gold projects in the world and forecasting an attractive economic outcome for the asset, comparable with other copper-gold projects in development.
"We believe that Josemaria is perfectly positioned to commence production by mid-decade, meeting rising copper demand from a rapidly electrifying global economy. I believe the study results will allow us to unlock various financing opportunities as we move toward construction," Lundin said in a news release.
The global smart mining market was estimated at $6.8 billion in 2019. It is forecast to reach $20.31 billion by 2025. The significant increase is expected to be driven by technological advancements within the sector.
Global demand for copper is also growing steadily, due to the metal's versatility and multiple uses for industrial, domestic and high-technology indications. The global copper market is expected to reach $222.1 billion by the end of 2026.
Adam Lundin is the President, CEO and Director of Josemaria Resources. He has several years of experience in managing capital markets and public companies across the natural resources sector. His background includes oil, gas, mining technology, investment advising, international finances and executive management. Lundin began his career working for several of the Lundin Group mining companies. He is currently engaged in multiple roles, as he is also the Chairman for Filo Mining Corp. and Africa Energy Corp. and a Director of NGEx Minerals Ltd. and the Lundin Foundation.
Ian Gibbs serves as CFO of Josemaria Resources. He is a Canadian Chartered Accountant and a graduate of the University of Calgary, holding a Bachelor of Commerce degree. Gibbs has held many prominent positions within the Lundin Group of companies over the last 15 years, most recently as the CFO of Africa Oil Corp.
Arndt Brettschneider is the company's Vice President of Projects. He has over 23 years of international mining, consulting and project development experience. Before joining Josemaria Resources, he was Vice President of the mining consulting businesses of two globally recognized engineering companies. Brettschneider obtained a Bachelor of Science with Honors from the University of Queensland in Brisbane, Australia. He received his MBA from Queen's University in Ontario, Canada.
Bob Carmichael is the company's Vice President of Exploration. He joined Josemaria Resources from Lundin Mining Corporation's UK office. In his UK role, he was the General Manager of Resource Exploration. Carmichael is a registered Professional Engineer in the Canadian province of British Columbia. He obtained a Bachelor of Applied Science from the University of British Columbia. His dual role includes serving as Vice President of Exploration for Filo Mining Corp. and NGEx Minerals Ltd.
Alfredo Vitaller is Josemaria Resources' General Manager in Argentina. He has been involved in the mining industry since 1993. He graduated as a Licentiate in Geological Sciences from Buenos Aires University and has an M.Sc. from Mackay School of Mines at the University of Reno. Vitaller has worked with the Lundin Group since 1993 and was a part of the exploration teams for Filo, Helados and Josemaria.
Ashley Heppenstall, chairman of the Josemaria Resources board of directors, has over 30 years of experience in the oil and gas and resources sectors. From 2002 to 2015, Heppenstall served as the President, CEO and Finance Director of Lundin Petroleum AB, an oil and gas exploration and production company with core assets in Norway and Southeast Asia. He is credited with building Lundin Petroleum into the largest independent oil firm in the world today, leveraging a single equity raise of $50 million to guide Lundin in the design and implementation of a strategy that's led it to a current market cap of roughly $6 billion.
Ron Hochstein has worked for the Lundin family directly as a consultant for over 20 years and is currently the President and CEO of Lundin Gold, a gold-producing business whose key asset is the Fruta del Norte gold deposit in Ecuador. Hochstein led construction efforts on the first mine in Ecuador, which went into production in 2019 and was completed on time and on budget.
Paul Conibear has been with The Lundin Group for over two decades, including serving as the CEO and Director of Lundin Mining from 2011 through 2018. Lundin Mining's current market cap is estimated at $3.5 billion. In total, Conibear has more than 35 years of experience in progressively more responsible positions in the resource sector ranging through management of all phases of mine investment, including exploration, economic assessments, construction, operations and closure.