ATEX Resources Inc. announced the results of metallurgical test work completed on copper (Cu) gold (Au) porphyry related material, completed at Base Met Laboratories (BML) in Kamloops, British Columbia. This work was completed using samples selected from drill core from the Phase II and III drill programs at the Valeriano Project (Valeriano or the Valeriano Project) located in Atacama Region, Chile. The metallurgical program was undertaken using three composite samples of >100 kilograms each selected from within the Valeriano resource area (See Company news September 12, 2023).

The work in this program was completed to a PEA level and was designed, scoped, and supervised by Libertas Metallurgy LTD, Chatsworth, Ontario. ROBUST COPPER AND GOLD RECOVERIES - Copper recoveries ranging from 91% to 95% and total gold recovery ranging from 83% to 94%, using a combination of flotation (Cu, Au) and cyanidation of cleaner tails (Au). ATTRACTIVE CONCENTRATE GRADES - Desirable concentrate grades of 26% to 31% Cu and 7g/t to 12g/t Au with negligible deleterious elements.

SIMPLE COMMUNUTION - The test work has demonstrated that Valeriano mineralized material is amenable to SAG and ball milling. COPPER-MOLYBDENUM SEPARATION UPSIDE: Cu-Mo separation could produce a molybdenum concentrate at 65%-75% Mo recovery. In May 2023, a PEA level metallurgical test work program was designed and scoped by Libertas Metallurgy and ATEX Resources.

Samples were collected from half core under supervision of Libertas in June 2023. The samples packaged and shipped to BML and were delivered in July 2023. Metallurgical test work was completed at Base Met Laboratories in Kamloops, BC during August and September 2023.

A total of three representative samples (>100 kg of material) were selected by Libertas Metallurgy and ATEX geologists: High Grade Composite ("HGC") selected from the Early Porphyry ("EP") lithology within the Central High-Grade Trend. Medium Grade Composite (MGC) selected from within the EP around the contact with the host rock. Wall Rock Composite (WRC) selected from mineralized wall rock material above and adjacent to the EP.

The PEA level test work included the following objectives: Head characterization including chemical assays and quantitative mineralogy. Comminution test work for SAG milling (SMC tests) and ball milling (Bond Ball Work Index tests). Comprehensive program of rougher and cleaner flotation tests culminating in successful locked cycle tests on each of the three composites.

Due to the homogenous nature of the copper and gold mineralization over long intervals at Valeriano, a significant amount of candidate material was available for selection of the metallurgical composite samples. Libertas was provided with lists of available material for the high-grade, medium grade and wall rock composites by ATEX and representative composite samples were selected with grades ranging from 0.4%-0.7% Cu and 0.2g/t-0.4g/t Au. A total of 22 rougher and cleaner batch flotation tests were conducted on 2.0 kg test work charges from the three metallurgical composites.

A conventional copper porphyry processing flowsheet was used as the basis of flowsheet optimization including: A primary grind circuit, reducing sample material to a size of 80 to 120 microns. A copper rougher flotation circuit with copper and gold collectors. Followed by regrinding of the copper rougher concentrate and, 2-3 stages of copper cleaner flotation to produce a concentrate grading +27% Cu.

Leaching of rougher flotation and Cleaner 1 flotation tails. The following flotation variables were investigated and optimized for the high-grade composite based on the assumption of any future production scenario commencing in the HGC material. This was subsequently confirmed on the MGC and WRC material: Sensitivities were tested on the primary grind size resulting in the selection of 120 microns as the optimal grind size.

Copper rougher flotation time and mass pull sensitivities were run that focused on increasing gold recovery to copper concentrate. Regrind sensitivity tested regrind sizes down to 20-25 microns. Reagents dosage sensitivities were run and demonstrated that conventional combinations of the PAX and 3477 collector reagents were suitable.

Sensitivities run on pH demonstrated that moderate lime dosages were required to increase cleaner flotation pH to 10.0 for the high grade and medium composites, and to pH 11.5 for the wall rock composite. The application of fuel oil was investigated to increase molybdenum recovery and yielded successful results boosting potential recoveries from 65% to 75%. Cu-Mo separation testwork was considered to be beyond the scope of this phase of testwork.