Titan Minerals

Overview

Ecuador is known for its oil exports, but that’s not all the country has to offer. The country hosts gold, copper and silver deposits that have the potential to be developed into world-class mining operations. However, it has historically been difficult for mining companies to explore and develop the country’s resources largely because of its mining laws, which state that the country has the rights and first opportunity to develop every deposit. Despite this, the government has lacked the financing and technical expertise required to explore and fully develop its rich deposits.

Everything changed in 2019 when Lundin Gold (TSX:LUG) acquired a previously abandoned project and reached an agreement with the Ecuadorian government to develop the now-prolific Fruta del Norte Project. It was the country’s first large-scale modern gold mine and remains the largest producing gold mine in the country. Fruta del Norte is largely responsible for doubling Ecuador's mining exports in 2021 to US$2 billion, with the operation surpassing its own forecast. The Chinese-owned Mirador Copper-Gold Project is another large-scale mining operation that also contributed to the country’s record-breaking 2021 mineral exports. Both projects are located in Southern Ecuador.

Now, the Ecuadorian government has seen the power of foreign investment in developing its natural resources. Mining-friendly President Guillermo Lasso is actively encouraging foreign companies to invest in the country’s booming mining industry, which is projected to reach roughly US$4 billion by 2025. Three Canadian-owned mining companies were granted gold concessions and are now in advanced exploration stages: Dundee Precious Metals’ (TSX:DPM) Loma Larga Project, Atico Mining (TSXV:ATY) La Plata Project, and Adventus Mining’s (TSXV:ADZN) Curipamba Project.

Ecuador has also seen the emergence of powerhouse mining companies such as BHP-Newcrest jointly acquiring 15 percent of Sol Gold. Franco Nevada paid U$150 million to Sol Gold for a royalty over that project, which demonstrates long term confidence that Ecuador is a safe place to invest.

Other notable entrants are Hancock Prospecting, Fortescue Metal Groups (OTCQX:FSUMF) and First Quantum (TSX:FM), all searching for major mining opportunities not presently found in many other countries globally.

Another good sign is the presence of other mining companies now exploring and developing assets within the country, such as the Adventus Mining’s (TSXV:ADZN) Santiago project in south-central Ecuador and Cornerstone’s (TSXV:CGP) two wholly-owned exploration projects in Southern Ecuador. Cornerstone is also exploring its Caña Brava Project and Bramaderos Project in partnership with Sunstone Metals (ASX:STM).

The presence of all of these miners means one thing: Ecuador is finally open for business.

Titan Minerals (ASX:TTM) is focused on developing its gold and copper projects in Southern Ecuador. The company has four projects in Ecuador, each providing fresh opportunities to develop the country’s next large-scale mining operation. All of Titan Minerals’ projects are located in Ecuador’s Andean region, the same region as the two prolific mining operations currently comprising the majority of Ecuador’s mining exports. A management team with direct experience in developing large-scale gold mines is at the helm of Titan Minerals, creating confidence in its ability to capitalize on its assets.

The company’s flagship project, Dynasty Gold, has a resource estimate (in full accordance with Canadian NI-43-101) totalling 2.1 million ounces of gold averaging 4.5 g/t. The project is only 25 kilometers away from the Peruvian border, which opens up access to Peru’s modern processing facilities and robust trade routes. The company has released its own assay results that corroborate aspects of the foreign resource estimate, confirming high-grade gold and silver deposits throughout the project’s area.

Recently, Titan Minerals released additional exploratory results from an additional 30 diamond drill holes throughout Dynasty Gold, which further confirmed the presence of high-grade gold and silver up to a depth of 300 meters. The company is working towards a resource estimate that’s in full accordance with the JORC code.

It’s quite unusual for a junior mining company to possess an asset with millions of ounces of gold. In a recent interview, Executive Director Matthew Carr explained why the company is so optimistic about its holdings. He stated, “The interesting thing about Ecuador is all the concessions that have been granted. From a real estate point of view, it’s awfully difficult for anyone to get in and pick up new ground. It’s certainly looking at everyone who has ground and what they’re sitting on. From our perspective, these types of assets you don’t see in Australia junior. It’s rare that a junior has the types of assets that we’ve got, and it’s starting to catch the attention of bigger players in the market.”

Titan Minerals has assembled an experienced team of managers and experts to help the company reach its full potential. Peter Cook, non-executive chairman, brings over 35 years of experience from roles throughout the mining industry, such as field exploration and corporate management. Michael Skead brings a combined 60 years of experience and formal training in mining exploration, evaluation and development. Matthew Carr, executive director, and Nick Rowley, non-executive director, both have a strong background in fundraising and corporate finance.

The company has also brought on experts in operating in Ecuador. Freddy Villao, vice president of government affairs in Ecuador, is a lawyer with 15 years of experience in Ecuador. He is helping the company navigate Ecuador's mining laws. Pablo Morelli, exploration manager in Ecuador, is a geologist with direct experience with copper-gold and gold-rich porphyry systems.

Company Highlights

• Titan Minerals is focused on underdeveloped and undervalued gold and copper assets in Southern Ecuador’s Andean region.
• Other mining companies have already had success in Southern Ecuador and serve as a strong indication of what’s possible for Titan Minerals.
• The company’s flagship project, Dynasty Gold, has a foreign resource estimate of 2.1 Moz of high-grade gold, with the company’s assay results corroborating the presence of high-grade gold and silver deposits.
• Titan Minerals has capitalized on Ecuador only recently opening its doors to foreign investment to capitalize on its natural resources. The company now has four promising projects in underexplored areas.
• A management team with direct experience in gold exploration and development, including a lawyer with expertise in Ecuadorian law, builds confidence in the company’s ability to capitalize on its holdings.