Barksdale Commences Updated PEA for San Javier Copper-Gold Project, Adding Gold for the First Time and Current Consensus Metal Pricing

Barksdale launches a long-term PEA update to add gold economics at San Javier.

What the company is saying

Barksdale Resources Corp. is initiating an updated Preliminary Economic Assessment (PEA) for its 100%-owned San Javier copper-gold project in Sonora, Mexico, aiming to quantify the value of gold alongside copper. The company highlights that the current 2024 PEA, based on US$4.00/lb copper and copper-only recovery, does not account for gold, despite conceptual estimates of 250,000 to 400,000 ounces of gold in the deposit. Management, led by President and CEO Chris Stewart, frames San Javier as a low-capex, low-strip-ratio project, emphasizing a US$116.8 million initial capital cost, a 0.6:1 strip ratio, and a 12-year mine life at 10,000 tonnes per day. The announcement stresses recent gold assay results from 2026, including 9.0 metres of 3.464 g/t Au and 12.0 metres of 1.084 g/t Au, as evidence of gold's potential economic impact. The company plans to update metal price assumptions to consensus levels for both copper and gold and will conduct additional metallurgical testing to assess gold recoverability. AKF Mining Services is tasked with delivering the PEA Update in accordance with NI 43-101, targeting completion in Q4 2027. The tone is optimistic but acknowledges that gold remains a conceptual upside, not yet included in any resource or economic model.

What the data suggests

The only realised figures are from the 2024 PEA, which outlines a copper-only open pit, heap leach, and SX-EW operation with a US$116.8 million initial capex, post-tax NPV7% of US$61.6 million, and post-tax IRR of 18.1%, based on 70.1 million tonnes grading 0.271% copper and a 12-year mine life at 10,000 tonnes per day. The mine plan assumes a low strip ratio of 0.6:1 and minimal pre-stripping due to outcropping mineralization. Sensitivity analysis from the 2024 PEA shows that at US$4.50/lb copper, Measured and Indicated tonnage increases by 18% and post-tax NPV7% by 68%, but these figures do not include any gold value. Gold intercepts from 2026 assays are strong in places—such as 9.0 metres of 3.464 g/t Au and 12.0 metres of 1.084 g/t Au—but gold is not included in the current resource or economic model. The conceptual gold inventory of 250,000 to 400,000 ounces is not classified as a Mineral Resource, and no economic value is assigned to it yet. The update process will include new metallurgical test work and a revised resource estimate, but no new economic or resource figures are provided in this announcement.

Analysis

The announcement is generally positive in tone, highlighting the commencement of a PEA Update for the San Javier project and referencing strong historical copper and gold intercepts. However, the majority of the new value proposition—incorporating gold recovery and updated metal pricing into project economics—remains entirely forward-looking, with the PEA Update not expected until Q4 2027 (two years from the announcement date). The only realised progress is the completion of gold assays on historical drill core, while all economic and resource upside from gold remains conceptual and unquantified. The release restates the 2024 PEA's copper-only economics and capital cost (US$116.8 million), but no new financial or resource figures are provided. The capital intensity is high, with a large initial outlay and no immediate earnings or cash flow impact. The narrative is somewhat inflated by referencing potential gold credits and higher copper prices, but these are not yet supported by updated technical or economic analysis.

Risk flags

• ●The gold component remains conceptual, with no Mineral Resource or economic value assigned, and it is uncertain whether further work will delineate a gold resource or demonstrate economic recoverability. This introduces significant geological and metallurgical risk.
• ●The timeline for the PEA Update is long, with completion not expected until Q4 2027, exposing the project to market, technical, and permitting risks over several years before any construction or production decision.
• ●All current economic and resource figures are based on the 2024 copper-only PEA; no updated financials or resource estimates are available, so investors have no basis to assess the magnitude of potential upside from gold or new pricing assumptions.
• ●The initial capital cost of US$116.8 million is substantial for a junior company, and the project’s economics are sensitive to metal prices and recovery rates, which remain to be validated for gold.
• ●There is no certainty that the PEA Update will result in a gold Mineral Resource or that gold will be economically recoverable, as explicitly cautioned in the announcement.

Bottom line

Barksdale is restarting the economic analysis for San Javier to include gold, but all current project economics remain based on copper-only figures from the 2024 PEA. The company presents strong gold assay results and a conceptual inventory of 250,000 to 400,000 ounces, but this gold is not yet part of any resource or economic model. The PEA Update process will take until late 2027, so any value uplift from gold or new pricing is at least a year away and subject to successful metallurgical and resource work. Investors should recognize that the only hard numbers are from the existing copper-only PEA, with US$116.8 million capex, US$61.6 million post-tax NPV7%, and 18.1% IRR. The main catalyst will be the completion of the PEA Update, which must deliver a quantifiable gold resource and demonstrate economic recoverability to change the investment case. Until then, the gold upside remains speculative.

Announcement summary

(TSXV:BRO) (OTCQB:BRKCF) (FSE:2NZ) Barksdale Resources Corp. has commenced an update to the Preliminary Economic Assessment (PEA) for its 100%-owned San Javier copper-gold project in Sonora, Mexico. The PEA Update will include additional metallurgical testing focused on the recovery of both gold and copper mineralization and assess its potential impact on project economics. Gold at San Javier occurs primarily in the surficial oxide zone, with intercepts such as 15.0 metres of 0.727 g/t Au in hole SJ21-25 starting 21.0 metres below surface. In 2026, Barksdale assayed 187 drill core reject samples from five holes drilled in 2007 for gold content, with four holes returning positive results, including 9.0 metres of 3.464 g/t Au in SJ07-64 and 12.0 metres of 1.084 g/t Au in SJ07-66. The current 2024 PEA mine plan features a life-of-mine strip ratio of 0.6:1, with minimal pre-stripping required as mineralization outcrops at surface and waste material used for construction and haul roads. The 2024 PEA assumed a copper-only heap leach operation at US$4.00/lb copper. The PEA Update will use updated consensus metal prices for copper and gold, replacing the 2024 PEA's copper-only price deck. Higher copper prices and potential gold credits will be evaluated to determine if the conceptual pit shell can be extended below the base of the hill. In the 2024 PEA, a copper price of US$4.50/lb increased Measured and Indicated tonnage by 18% and post-tax NPV7% by 68%, without considering gold. The PEA Update is expected to be completed in the fourth quarter of 2027. Chris Stewart, President and CEO, highlighted the project's low initial capital cost of US$116.8 million and low strip ratio, noting that the 2024 PEA valued San Javier on copper alone at US$4.00/lb and did not consider gold recovery. Section 24.3 of the 2024 PEA referenced a conceptual range of 250,000 to 400,000 ounces of gold within the deposit, primarily in the oxide zone, but attributed no value to it as gold was not included in the last Mineral Resource update in 2022. The 2024 PEA outlined an open pit, heap leach, and SX-EW operation producing copper cathode at 10,000 tonnes per day over a 12-year mine life, with initial capital of US$116.8 million, post-tax NPV7% of US$61.6 million, and post-tax IRR of 18.1%. The supporting Mineral Resource, effective October 31, 2022, totals 70.1 million tonnes grading 0.271% total copper (419.2 million pounds copper) with 289.4 million pounds Cu recoverable. Gold was not included in the 2022 Mineral Resource estimate or the 2024 PEA due to lack of economic extraction evaluation, and the 2024 PEA recommended evaluating the potential for a gold Mineral Resource. The company has since assayed 187 preserved drill core reject samples for gold and is selecting 2007 and 2021 drill core rejects for bottle roll and column leach tests to estimate gold recoveries. AKF Mining Services will complete the PEA Update in accordance with NI 43-101, including updated gold and silver metallurgical test work, an updated copper and gold Mineral Resource estimate at consensus pricing, pit shell and cut-off grade re-optimization, and updated capital and operating costs, mine plan, and economic analysis including copper and gold. William Wulftange, a Director of the Company and Qualified Person as defined by NI 43-101, has reviewed and approved the scientific and technical information in this release. Information relating to the 2024 PEA is derived from the technical report titled 'Preliminary Economic Assessment Study for San Javier Property, Sonora, Mexico, NI 43-101 Technical Report' with an effective date of January 2, 2024, prepared by Tetra Tech Canada Inc. and Independent Mining Consultants, Inc.

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