PPX Resumes Exploration Activities at Callanquitas: A Promising Opportunity

PPX Mining Corp. (TSX.V: PPX, SSE: PPX, BVL: PPX) has announced the resumption of exploration activities at the Callanquitas Mine in Peru, marking a significant step forward in the company's efforts to enhance understanding of the mine's potential resources. The drilling campaign, set to start in early March 2025 and conclude by July, aims to confirm the geometry and high-grade mineral values in the sulfide vein, as well as expand oxide resources in the west vein. With a total of 2264 meters of diamond drilling to be conducted underground, the campaign is expected to provide valuable insights into the mineralization potential of the area.

The decision to resume exploration activities at Callanquitas is driven by several key factors that align with PPX's long-term strategic goals. First, the company's previous exploration efforts yielded promising results, indicating the presence of high-grade mineral values in the sulfide vein and the potential for expanding oxide resources in the west vein. These encouraging findings support PPX's objective of increasing its mineral resource base and enhancing the economic viability of its projects. Second, the availability of drilling services through a contract between Proyectos La Patagonia S.A.C. and RAMPERU S.A.C. allows PPX to access the necessary resources to resume exploration activities. Lastly, the planned drilling campaign aligns with PPX's exploration strategy, focusing on confirming the geometry and high-grade mineral values in the sulfide vein, and expanding oxide resources in the west vein.

The planned drilling campaign at Callanquitas is more extensive in scale and scope compared to previous exploration efforts. In January 2024, PPX completed the first six diamond drill holes directed at Callanquitas West, totaling 515.6 meters. While this earlier campaign provided valuable information, the upcoming campaign is more than four times larger in terms of the total meters of drilling planned (2264 meters compared to 515.6 meters). Additionally, the scope of the planned campaign is broader, as it aims to explore both the sulfide vein and the west vein, whereas the previous campaign focused primarily on the Callanquitas West breccia. This expanded scope suggests a more comprehensive approach to understanding the mineralization potential of the area.

In terms of expected outcomes, the planned drilling campaign is expected to provide valuable data on the geometry and high-grade mineral values in the sulfide vein, as well as the potential for expanding oxide resources in the west vein. This information will be crucial for defining the geometry of the precious metals mineralization and for planning future drilling in this area. The previous campaign also delivered promising results, such as 2.55 meters with grades of 8.14 g/t Au and 88 g/t Ag, and 1.15 meters grading 8.74 g/t Au and 58 g/t Ag. The upcoming campaign is expected to build on these results and provide further insights into the mineralization potential of the Callanquitas area.

However, PPX may face potential risks and challenges during the execution of this drilling campaign. Geological uncertainties, accessibility and logistical challenges, safety and environmental concerns, weather and seasonal challenges, and financial risks are some of the factors that the company must address. To mitigate these risks, PPX can implement robust safety protocols, provide adequate training to workers, conduct regular environmental impact assessments, plan the drilling campaign meticulously, maintain open communication with local authorities and communities, and closely monitor the campaign's progress and costs to ensure they remain within the planned budget.

In conclusion, PPX's decision to resume exploration activities at Callanquitas is a promising opportunity for the company to enhance understanding of the mine's potential resources. The planned drilling campaign, with its extensive scale and broad scope, is expected to provide valuable insights into the mineralization potential of the area. By addressing potential risks and challenges proactively, PPX can enhance the likelihood of a successful and productive drilling campaign, ultimately supporting the company's long-term strategic goals.