Well-positioned, with recent corporate activity occurring in the North Andean mineral belts of Peru and Ecuador
Fidelity has a long track record in the area, with an experienced in-country team
Two recent acquisitions, while quite different, each provide the firm with a path to near-term value creation
What does Fidelity Minerals:
Fidelity Minerals (CVE:FMN) (FSE:S5GM) has its eyes on Peru. The junior resources company is targeting near-term gold production from the Cerro Dorado plant owned by the company. It is also focusing on gold, silver, copper, lead and zinc mineral resources from appraisal stage projects.
As an early mover into Northern Peru, Fidelity Minerals is well-placed to become a key player in this highly prospective region, hot on the heels of the emergence of Ecuador as a world-class mineral exploration region, flanked by world-class projects to the south and active corporate activity to the north in Ecuador.
Fidelity recently acquired two significant projects. The company has now bought a 100% interest in a porphyritic copper project (1,200 hectares) in La Libertad, northern Peru and also, an initial 25% interest in a company that holds a portfolio of project concessions (3,500 hectares) also in La Libertad, including an advanced-stage polymetallic project.
According to the firm, the two acquisitions "are the culmination of an extensive project origination, evaluation and acquisition effort that has been ongoing for some time," said Ian Graham, director and CEO of Fidelity Minerals. "Whilst the two projects are quite different, they each provide Fidelity Minerals with a clear pathway to near-term value creation."
The Porphyritic copper project comprises three contiguous concessions covering 1,200 hectares (Ha) in an active mining and development district in La Libertad, Northern Peru. The project hosts near surface visible copper mineralization, as well as small-scale artisanal workings.
Meanwhile, the polymetallic project comprises six concessions covering 3,500 hectares in an active mining and development district in La Libertad, Northern Peru.
How's it doing:
Fidelity's projects are well-positioned, with its polymetallic project near to major Barrick Gold's (TSE:ABX) Lagunas Norte mine (9 million ounce gold resource) with both its Porphyritic copper and polymetallic projects located within a proven mineralized belt that hosts several world-class precious metal projects, including Newmont Goldcorp's (TSE:NGT) Yanacocha mine.
Despite the fact the area is hot at the moment, Fidelity has had roots in the area for a long time. It has an experienced in-country team that manages permitting, development, operations, and provides corporate support, including deal flow.
Its portfolio continues to expand, and the firm uses the strategic project generator (SPG) model, in which it seeks appraisal stage opportunities with near-term valuation catalysts, including the potential for high-impact M&A (merger and acquisitions).
Fidelity Minerals has its fingers in a number of pies, but its Cerro Dorado project is one to watch as it is on the pathway to near-term cash flow. The project is located in the prolific mining Province of Caraveli in Arequipa and provides Fidelity Minerals with a platform to process high grade ore on an “owned” or “tolling” basis.
Its two recent acquisitions are also quite compelling. While they are quite different, each provide the firm with a path to near-term value creation. Fidelity has also identified a number of regional project consolidation opportunities that could prove promising going forward.
Contact Katie Lewis at [email protected]