PPX Mining's Callanquitas Expansion: A High-Grade Gold-Silver Opportunity

The gold and silver markets are primed for companies that deliver both resource growth and operational discipline. PPX Mining Corp. (PPX) is poised to capitalize on both with its aggressive expansion of the Callanquitas Project, where a strategic shift to underground drilling has unlocked high-grade gold discoveries and positioned the company for a near-term re-rating. With a drilling program extended to 4,200 meters, metallurgical advantages in oxide zones, and a sulfide vein exploration campaign set to deliver Q3 catalysts, investors should act swiftly to secure exposure to this underappreciated asset.

The Callanquitas Expansion: A Gold-Silver Bonanza

PPX's decision to expand its 2025 drilling program from 2,300 meters to 4,200 meters marks a bold move to capitalize on the Callanquitas West (CW) structure, a parallel formation to the historically mined Eastern structure. Recent drilling in this area has unearthed high-grade gold intercepts, including 12.98 g/t Au over 0.6 meters (CA-25-13) and 14.30 g/t Au over 0.65 meters (CA-25-12), demonstrating the continuity of mineralization at depth. These results are no fluke: the CW structure has now been traced for over 300 meters along strike, with intercepts averaging 2.00 g/t Au over 32.35 meters—a strong indicator of resource expansion potential.

Operational Efficiency: The Underground Drilling Edge

What truly sets PPX apart is its cost-efficient underground drilling strategy, which slashes expenses while accelerating exploration. By conducting all drilling from existing underground chambers (with a third chamber under excavation), PPX avoids the delays and costs of surface permits, reducing drill lengths and logistical complexity. This approach has cut the program's budget to $1.215 million, including taxes—a fraction of what surface drilling would cost.

The results speak for themselves: the company is now able to target the CW structure's high-grade zones with precision, avoiding dilution from lower-grade material. This focused strategy not only maximizes resource delineation but also reduces the risk of overcapitalization—a critical advantage in today's cost-conscious mining environment.

Metallurgical Feasibility: Maximizing Value

PPX's metallurgical prowess further amplifies the project's value. The CW structure's oxide zones, rich in iron oxide (FeOx) minerals (goethite and limonite), offer easy processing via conventional heap leaching, minimizing capital expenditures. Meanwhile, the sulfide vein system—a key focus for Q3 drilling—contains silver, gold, and copper grades that could open additional revenue streams.

Historical intercepts, such as the 33.08 g/t Au, 8,174 g/t Ag, and 13.1% Cu found in 2024's CA-24-07 hole, hint at the sulfide zone's potential. By drilling deeper into this vein during Q3, PPX aims to replicate these grades and define a bulk-minable sulfide resource—a discovery that could dramatically lift the project's NPV.

The Sulfide Vein Catalyst: Q3's Game-Changer

The most imminent catalyst lies in Q3's sulfide vein drilling, which will test the depth and continuity of high-grade mineralization. With the rainy season avoided and permits secured, PPX is primed to deliver results that could validate the sulfide zone's economic viability. A successful outcome here would not only boost resource estimates but also diversify the project's metal mix, reducing reliance on gold alone.

Investment Thesis: Why Act Now?

PPX's combination of high-grade discoveries, cost discipline, and upcoming catalysts creates a compelling risk-reward profile. The stock trades at a significant discount to peers, with a market cap that does not yet reflect the Callanquitas Project's true potential. With Q3 sulfide results and ongoing oxide drilling set to deliver near-term upside, now is the time to position ahead of the re-rating.

Investors should also note PPX's progress toward production: construction of a 350-ton-per-day beneficiation plant is underway, and financing is secured. The company's partnership with Proyectos La Patagonia S.A.C. ensures technical expertise, while metallurgical testing confirms the viability of both oxide and sulfide processing.

Conclusion

PPX Mining is at a pivotal juncture. The Callanquitas Project's high-grade gold and silver potential, bolstered by a cost-efficient underground strategy and sulfide vein exploration, sets the stage for a transformative year. With Q3's drilling results and resource updates looming, investors ignoring this opportunity risk missing out on a multi-bagger. Act now—before the market catches on.

Investor action is recommended ahead of Q3's sulfide vein results, which could redefine PPX's valuation.