New Chile Project Targets High-Grade Silver and Copper

Grafton Resources Inc. (GFT:CSE; PMSXF:OTC) announced the establishment of the Caldera silver-copper-gold-antimony project in Chile's Pedernal district of the Valparaiso region. According to the company, the project consists of multiple concessions targeting favorable geology within the Morro Hediondo Caldera region and brings together newly staked exploration ground, the Silver One concessions, and a historic geological database into a consolidated exploration package.

The company said the project includes 10 newly staked exploration concessions totaling 2,100 hectares, covering continuous trends of mineralized vein outcrop and areas exhibiting epithermal alteration. The Caldera project also incorporates the Silver One concessions, which were the subject of a previously announced letter of intent with Asesorias e Inversiones Sol SpA (AIS), together with a historic geological database that informed concession selection. Combined, the land package includes the principal northwest-southeast vein trend, a parallel northeast-southwest trend hosting the Silver One concessions, and surrounding alteration targets approximately 10 kilometers from the producing El Bronce mine.

Project highlights released by the company included 3.8 kilometers of secured vein trends across continuous outcrop that have not been drilled, historical samples grading up to 4.0 grams per tonne gold, 300 grams per tonne silver, and 12.4% copper within epithermal vein systems, along with vein systems previously worked by artisanal miners and zones of epithermal alteration that have not been tested using modern exploration methods.

"By leveraging proprietary in-country expertise, Grafton Resources has secured licenses over highly prospective vein systems that are known to host high-grade mineralization but never subjected to systematic modern exploration," Chairman Campbell Smyth said. He added, "Grafton Resources geologists have already started work on these concession areas, and results will follow shortly."

According to the company, the concession selection was based on a historic sampling database obtained through agreements with AIS related to the acquisition of the Silver One concession. The database contains 150 samples from across the district analyzed using ICP multielement methods, gold fire assay, and selected base metals by atomic absorption. Grafton said 92% of the samples returned anomalous copper values greater than 0.1% copper, 24% exceeded 3.0% copper, and the highest value reached 12.4% copper. Twenty-five percent of silver samples exceeded 100 parts per million, while all anomalous silver samples also returned elevated antimony, arsenic, and mercury values. The company noted that the sampling was completed by AIS during 2021, that most results are supported by laboratory certificates, but that the work lacks formal quality assurance and quality control, and should be treated as a historical initial indicator only.

Grafton also announced that it, its wholly owned Chilean subsidiary, and AIS entered into a framework agreement, two definitive option agreements, and a share consideration agreement dated July 21, 2026, replacing the previously announced letter of intent. Under the revised terms, the company received an option to acquire a 100% interest in the Silver One property through cash payments totaling US$248,000, consisting of US$148,000 upon signing and US$100,000 within 24 months, together with share consideration valued at US$400,000 issued in two equal tranches. The option remains subject to Canadian Securities Exchange approval.

Supply Tightness and Market Forces Shape Metals Sector

According to a July 18 market update from Couloir Capital, precious and base metals markets had faced pressure from macroeconomic conditions during the week. The firm wrote that "precious metals were lower as stronger Fed rate-hike expectations lifted the U.S. dollar and Treasury yields, raising the opportunity cost of holding non-yielding bullion," while "mixed signals from the U.S.-Iran conflict added to volatility." It also reported that silver prices had fallen 6.5%, noting that the metal's "sizeable industrial exposure also amplified the decline," while copper had edged lower as weaker Chinese growth and domestic demand data raised concerns over consumption from the world's largest metals buyer. Couloir Capital added that softer U.S. inflation data and mine supply disruptions had limited downside pressure for copper.

A July 20 report from Mining.com stated that silver had rebounded from an eight-month low, with Comex silver futures rising 1.5% to US$56.74 per ounce after touching US$55.50 on the previous trading session. Gold had traded at US$4,005 per ounce while holding above the US$4,000 level. The publication reported that physical demand continued to provide support for silver, citing Reuters' reporting that restrictions on silver imports in India had created shortages in the local market and pushed dealer premiums to US$6.50 per ounce, a six-month high. Mining.com also cited metals analyst John Gross, who wrote that "for the bull market to survive, both will have to make new highs," while noting that anything short of that represented "just a correction."

According to a July 21 report from Mining.com, copper prices had climbed to their highest level in more than a month as indicators pointed to tightening physical supply in China and traders reassessed expectations surrounding potential U.S. tariffs on refined copper. Comex copper for September delivery had risen 3.3% to US$6.55 per pound, while three-month copper on the London Metal Exchange had increased to US$13,851 per tonne. The publication reported that China's premium for spot cathode over Shanghai futures had climbed to 435 yuan per tonne, while the Yangshan premium had reached US$103 per tonne, both reflecting tighter availability. Deliverable copper inventories in Shanghai Futures Exchange warehouses had fallen 82% since early May, while London Metal Exchange inventories had declined 28% over the same period. ING commodities strategist Ewa Manthey stated in a note that "Copper is being pulled higher by a tightening Chinese market," adding that "the rally will need continued evidence of physical tightness to extend much further."

Upside in Chile Exploration Portfolio 

In commentary following the company's announcement, Michael Ballanger said Grafton Resources was "en route to building a powerful portfolio of projects all in Chile and all secured by the Fitzroy team." He described the Caldera project as "a silver-gold-copper prospect located proximate to an existing operating mine" and said it had "huge potential."

Ballanger also commented on the company's share structure, noting that it had "only 26m shares issued and outstanding." He wrote that "it will take a smattering of demand to push this stock into the CA$50m range of market cap, which is pretty close to CA$2.00."

Based on his assessment, Ballanger assigned Grafton Resources a Strong Buy recommendation and stated the stock was "a 'strong buy' at levels up to and including CA$1.00." His published target price was CA$2.00.

Geological Reconnaissance Underway at Caldera

Grafton Resources said it has begun a geological reconnaissance program across the granted concession areas at the Caldera project. According to the company, the work will include resampling historically mineralized sites and extending sampling coverage across the consolidated project area.

The company also said the program is intended to produce preliminary geological models for each occurrence within the project. Grafton stated that results from the reconnaissance program will be reported as they become available.

Ownership & Share Information¹

Management and insiders own 13.55% of Grafton. The rest is retail. 

The company's 52-week range is CA$0.22-US$43.98. They have a market cap of CA$10.99 million with 16.23 million free float shares.

FAQS

What is the Grafton Resources Caldera Project?

The Grafton Resources Caldera Project is a silver, copper, gold, and antimony exploration project in the Pedernal district of Chile's Valparaiso region. According to the company, the project combines newly staked exploration concessions, the Silver One concessions, and a historic geological database into a consolidated land package covering mineralized vein systems and epithermal alteration targets.

Where is Grafton Resources' Caldera Project located?

The Caldera Project is located in the Pedernal district within Chile's Valparaiso region, on the eastern margin of the Morro Hediondo Caldera. According to the company, the project is approximately 10 kilometers from the producing El Bronce mine and is accessible year-round by paved and gravel roads.

What metals is Grafton Resources exploring for at the Caldera Project?

According to Grafton Resources, the Caldera Project targets silver, copper, gold, and antimony mineralization. Historical sampling cited by the company returned values of up to 4.0 g/t gold, 300 g/t silver, and 12.4% copper from epithermal vein systems.

How large is the Grafton Resources Caldera Project?

According to the company, the Caldera Project includes 10 newly staked exploration concessions totaling approximately 2,100 hectares, together with the Silver One concessions and additional exploration targets consolidated into a single project area.

What is the latest news from Grafton Resources?

Grafton Resources announced the creation of its Caldera silver-copper-gold-antimony project in Chile, entered definitive agreements related to the Silver One property, acquired a historic geological database for the district, and began a geological reconnaissance program that includes resampling, expanded field work, and preliminary geological modeling.