THE NEXT 10X....THE TRANSFORMATION INTO A HIGH-GRADE MINING TITAN CONTINUES….

Podcast discussing key ideas in report: https://anchor.fm/docjonesresourceinvestor/episodes/Emerita-Resources-Due-Diligence-Report-10-commentary-e171pr4

Emerita Resources continues to grow and strengthen its dominant position in The Iberian Pyrite Belt, the largest and most mineral endowed VMS belt in the world. It as become the 3rd largest land holder in this highly coveted region of Spain were they operate that is richly endowed with high-grade copper, zinc, silver, lead and gold, having won 7 additional public land tenders in the last year.

 They achieved this by consistently winning tenders, beating major mining companies due to their inherently superior technical prowess and business acumen. It’s worth noting the public tender process in Spain awarded the land at zero cost and with zero royalties.  They achieved this right under the nose of the market and most investor.

This is why due diligence is so important, how to gain an edge over the Institutional Houses and Retail Investors, this information is only available on the Official Government Website "COUNCIL OF ECONOMIC TRANSFORMATION, INDUSTRY, KNOWLEDGE AND UNIVERSITIES, Andalusian Mining Registry", this information has been confirmed by David Gower CEO in a one of my podcasts, "...Emerita is listed as the owner of those land packages on the government website, the land packaged are Emerita's, no one else can take them, now we are just waiting on the final signatures before we will make an official public release..."

Podcast Link: https://podcasts.apple.com/ca/podcast/company-update-on-emerita-resources-with-ceo-david-gower/id1568221675?i=1000532610661

https://ws050.juntadeandalucia.es/portalandaluzdelamineria/ConsultaRMA (see for yourself, vet the data, open in Chrome and use Translate to English)

Below you can see Emerita has legal title to 8 land packages so far:

Why focus on the Andalucia region in Spain? 

Andalusia is the Spanish region with the highest numbers in terms of mining sites, export rates, employment creation (6,800 direct jobs) and production (25% of the national average). Furthermore, the region has great potential in terms of natural resources, being home to the largest reserve of non-ferrous minerals (polymetallic sulphides) in Europe (Iberian Pyrite Belt) and to one of the richest copper deposits worldwide. Infrastructure provides competitive advantage Mining companies benefit from the extensive transport network, comprising roads and motorways that connect with the country’s capital, Madrid, and other Spanish cities, together with its railway network, with several high-speed lines, and international airports, make Andalusia an attractive place for any economic activity, supported by a stable regulatory framework. The ports of Huelva—the largest in Spain—and Algeciras, a vital trade port which connects two continents, or the Port of Seville, the only inland port in Spain, provide Andalusia with endless possibilities for product transport and distribution anywhere in the world. The Andalusian Regional Government and other public authorities, such as the Provincial Government of Huelva, acknowledge the opportunity these mining resources represent and are fully committed with the mining tradition.

Other than having the majority of the World Class Iberian Pyrite Belt, a new anti-corruption and mining friendly government, low corporate taxes and zero royalties on production form public tendered land, Andalucia, Spain passed a NEW LAW heavily supporting UNDERGROUND MINING (Emo's focus is on under-ground mining) follow immediately by the Euro Zone announcing a $3.1 Billion Euro Mining Development Fund spread over 5 years to support the mining industry in this very small region, especially advanced development project that will produce critical metals. (Emo's IBW will begin PFS in early 2022 and the AZN tender was to bring the mine back into production, both will qualify for financial incentives from the EU fund.) 

1. The Junta of the Andalucia Region passed a law designating underground mining as a strategically important industry in the region that will be permitted in all areas of the region . Mining development will have priority as an economic activity.

2. The European Union has passed an initiative as part of its plan to rebuild the economy post the COVID 19 pandemic whereby the Iberian Belt which is located primarily in Andalucia and extends westward to Portugal will receive a strategic investment of €3.10 billion for mine development and related activities. The Ministry of Economic Transformation, Industry, Knowledge and Universities has promoted the project for the metal mining and metallurgy sectors in Andalusia to apply for funds from the “Next Generation of the European Union” (funds established for economic rebuilding of the EU post the pandemic). The strong mining industry and recognized geological potential hosted in the Iberian Pyrite Belt, within the provinces of Seville and Huelva will be the focus of the program.

NOTE: Emerita Resources has a huge competitive advantage, they will not only qualify for this EU Fund they also are advantaged by the new law in Spain because they are focused on high-grade underground mining and both projects, the IBW and AZNALCOLLAR already have a tremendous amount of historically drilled high-grade resources totalling over $37 Billion USD company wide, each project area as-is are large enough to begin development activities today. The IBW after the current resource confirmation/expansion drilling is scheduled for a PFS early 2022 and AZN was tendered specifically to put that mine back in production. Emerita has already done FS level work on AZN as part of their tender. It's very important to understand the implications of the above on the overall already high margin projects within their development portfolio. Lower cost of capital, lower hard dollars the company will need to raise, higher IRR, higher margins, higher NPV, higher FCF, accelerated mine payout periods, built in off-take agreements to Euro Zone, etc, etc.   These already high-margin low cap ex. projects have become even more so.

In the last year  Emerita's management has successfully executed a stealth strategy of adding strategic land positions within their core areas that provide multiple levels of compounding upside through discovery and adding historical high-grade mineral resources to their already massive high grade inventory  by winning 7 additional strategic land packages , 6 supporting the Iberian Belt West Project and 1 supporting the Aznalcollar Project, the end result is Emerita is now the 3rd largest land holder in this highly sought tier-1 jurisdiction surrounded by large Mid-tier and Major mining companies Rio Tinto, Lundin, Matsa, First Quantum and Phelps Dodge

THE LAND STRATEGY

SCALE IS EVERYTHING…. Acquire highly perspective land packages that have historical deposits, mine workings, proven fertile geology that can also produce a world class discovery around IBW and AZN within trucking distant to the future milling complex’s serving each project areas known deposits.

NOTE: All the current known deposits are open for expansion, the following numbers are the historical starting point. 

The IBW Deposits: La Infanta, Romaera, El Cura = +14mt high-grade. 

The Aznalcollar Deposits: Los Frailes Mine, The Aznalcollar Mine, The Caridad, The Unnamed Len = +91mt high-grade) .

Each additional ton added from resource expansion of the historically above or from these recent acquired land packages will compound and enhance the overall economics of these project dramatically, increasing the overall value of the every ton the company holds. As scale grows the size of a Mill grows pulling forward greater free cashflow, NPV, adding to overall mine life and value per share.

EMERITA RESOURCES PROJECT ARE IN THE TOP QUARTILE in COST and in the HIGHEST GRADE GLOBALLY

 

CORE AREAS OF OPERATIONS

1) Iberian Belt West Project (IBW)

Originally comprised of the La Romanera Land Package (3 high-grade deposits) has increased in scale by over 350% with the awarding of 6 additionally bolt-on land packages in the last year. The largest being the Ontario Land Package which includes, to name a few but there are many more, the historic Los Silos Copper Mine that produces at an average grade of 5-6% copper in the 1900’s and the historical High-Grade Paymogo Deposit (0.82Mt grading 2.4% copper, 1.25% zinc, 0.7% lead, 1g/t golds, 157g/t silver that was discovered in the 1862)

IBW has grow by over 350% in scale. 

The La Romanera Package in purple is what they began the year with containing 3 known high-grade deposits (La Infanta, El Cura and Romanera). 

I've marked just 2 of the many historically working and deposits they now own that could provide substantial resource additions.  This is the first time in history one company has consolidated this area to contemplate a single milling complex feed by several high grade deposits.  

THE ORIGINAL IBW Land Package's 3 Historical Deposits

 ( La Romanera Package in purple above that was won after battling Trafigura in the Supreme Court for 6 years. This land package is owned by Emerita and has no royalties attached. )

After fighting 6 years Emerita has finally begin their first drill program on the three deposit within The Paymogo Project which is located in Southwestern Spain. Geologically, the project is underlain by rocks of the Iberian Pyrite Belt (IPB) which is a prolific VMS terrane with numerous current and past producers of base metals sulphides.  The Original IBW hosts three historical deposits named La Infanta, El Cura and the Romanera, all these deposits remain open.

Important Facts to Remember:

• This is the first time in history those 3 deposit are contained in a single land package and the area was consolidated.
  
• No drilling has been preformed in 20-30 years, in most areas little to no geophysical surveys were done.
  
• The historical resources total +14 million tons of high-grade Zinc, Lead, Gold, Silver, Copper were drilled out by Rio Tinto and Phelps Dodge
  
• Most of the historical resources across these deposits didn't include assaying for all Gold and Silver.
• Now all 3 deposits are in 1 land package for the first time in history and can be expanded to their full potential and developed into 3 mines feeding 1 mill, 100% owned with zero royalties, that economies of scale with 14 million tons combined worth $7 billion at an average blends grade of $500/ton, 
• Deposits begin at surface at mineable widths making these cheap to develop utilizing ramp access into ore vs sinking a shaft.
  
• The IBW will have a new 43-101 filed in Q1 2022 after which a PEA/PFS will begin as per CEO after expansion
  

• David said in the ZIMTU webcast “He expect cost for mining and milling to be about $100 a ton, at even as high as $120 a ton we’ll make healthy margins” Current blended value at Paymogo is $500/ton 
  

1) Romanera Deposit (10'000m drilling starts in Sept-Oct)

• Outcrops at surface
• 50 historical drill holes drilled by Rio Tinto and Asturiana Zinc 1960's to 1990's, 
• Only drilled to 350m, 
• Open in all directions, Gravity and Deep EM confirmed Conductors exceed 400m
  
• Not all cores were assayed for Gold though there are multiple zone historically of +8m @ 2-6g/t not included in resource 
• Rio Tinto's historically resource was comprised of just Lead+Zinc

11.2 Million Tons of High Grade

• 99 Million Pounds of Copper
• 1.355 Billion Pounds of Zinc
• 608 Million Pounds of Lead
• 23 Million ozs of Silver
• 360k ozs of Gold (bare min. not all cores original assayed for Gold)

Total Metal Value  = +$4.15 Billion USD

INSITU VALUE PER TON (Without Full Gold Assays) = +$370 USD/ton

Possible ultimate size 20-30Mt of high grade

NOTE: Notice below 1) a blind lens discovered 2) grades and width of gold 3) last and deepest hole along strike hit 2 lens and over 20 meters of high-grade meaning this will get a lot bigger, there's no faulting nearby that will cut this deposit off.

2) La Infanta Deposit (ASSAYS DUE EVERY 2-3 WEEKS FOR THE NEXT MONTHS)

• Outcrops at surface
• Currently being drilled 5000-10000m and results are far exceeding historical grades and width
• ULTRA HIGH GRADE average Cu 1.77%, Zn 12.66%, Pb 6.91% & Ag 148g/t 
• 49 historical drill hole by Phelps Dodge and Asturiana Zinc
• In 1975 completed a feasibility study to ship the ore to “Cueva de La Mora” mine, about 30 km to the north.
  
• Only drilled to 100m vertical depth
• La Infanta has over 5,000m of drilling done on the property with historical resources of 2Mt at very high grades but due to lack of data current historical resource is reported at 800k tons
  
• Gravity and Deep Em show conductors go below 400m
• Pyrite depleted system
• Gold was never included in historical resource though it runs close to 1g/t

Historical Resource *800k Tons 

NOTE: "La Infanta has over 5,000m of drilling done on the property with historical resources of 2Mt at very high grades".   Lack of data to include all 2mt..." 

Note: 800k Tons (2Mt )

• 29.9 Million Pounds of Copper ( 74.8  )
  
• 222.82 Million Pounds of Zinc ( 557.1)
  
• 121.62 Million Pounds of Lead ( 304.1)
• 3.81 Million Ozs Silver ( 9.53)

Total Metal Value = $663 Million USD ( $1.656 Billion USD)

INSITU VLAUE PER TON (without Gold) = $832/ton

Ultimate size: 5-10mt of ultra high grade

CURRENT DRILL PROGRAM AT LA INFANTA 

Emerita currently has 2 rigs running on the deposit. This is the first drill program on La Infanta in over 20 years and the results are vastly outperforming the historical grades of $832/ton

Drill hole IN004 7.45 meters grading 1.67% copper, 6.01% lead, 11.49% zinc, 90.1 g/t silver and 0.49 g/t gold from 62.55 meters, including 3.76% copper, 15.29% lead, 28.81% zinc and 206.3 g/t silver and 1.08 g/t gold over 2.65 meters from 64.55 meters depth

Drill hole IN003 16.2 meters grading 1.2% copper, 5.1% lead, 10.0% zinc, 106.8 g/t silver and 0.38 g/t gold from 86.2 meters, Including 5.0 m 3.8% copper, 15.6% lead, 30.5% zinc 372.8 g/t silver and 1.22 g/t gold 

Drill Hole IN001intersected 4.0 meters grading 0.07% % copper, 1.68% lead, 3.40% zinc and 11.50 g/t silver from 24.3 meters, and a second intercept of 2.8 m grading 0.02 % copper, 3.79% lead, 7.50% zinc and 12.95 g/t silver from 32.3 meters depth. This hole is near surface and likely suffered some leaching of the mineralization related to surface weathering as it is only approximately 15 meters vertically from surface.

 

In a recent Interview David Gower CEO mentioned the drill program at La Infanta will at least double to exceed 10'000m due to the results of the DEEP EM SURVEY which showed that the conductors continue along at least 1200m of strike and below 400m in depth, the historical resource is based on only 450m of strike and 100m of depth, the grades and widths are increasing at depth. This implies a resource growth from 800k tons to up to +7.2mt or a 900% increase = $5.97 Billion Insitu that's tremendous upside leverage, almost doubling the value of the whole project area

Below are the locations of the drill trances of the Phrase One 5000 meter expansion/confirmation drill program on La Infanta. 

• The Green Box is the historical resource
  
• 1200m of mineral high grade strike has been confirmed
• Historical drilled only to 100m depth because deposit dipped off original postage size property, deep EM Surveys and Gravity shows conductors extend below 400m
• First 3 holes reported confirmed and beat historical grades and widths
• The are currently drilling the step outs beyond historical
• Assays should come every 2-3 weeks for months 

This deposit is like a huge pan cake with a lip on one side that outcrops at surface. It has been proven that the grades increase and intensify and the width of the mineralization fatten at depth.  It's also important to realize that so far 1 additional blind high grade lens has been discovered.  Due to the fact it has only been drilled to 100 meters in vertical depth, meaning that not only the main lens can at least triple in length that the potential for the discover of stacked lens exists.  VMS deposits often have stack lens from multiple mineralizing pulses and can extend to 2km in vertical depth.  The extremely high grade is astounding, cores of multiple meters of over 50% metal. considering $275/ton is considered high grade and La Infanta runs more then 3x that.   

3) The El Cura Deposit (6000m of drilling begins Q4 2021)

“El Cura deposit, located on the left bank of the River Malagуn, and in the middle of the other two deposits had a separate history; it also shows shallow workings from roman times. After a long period of inactivity and according to the mining engineer and writer Gonzalo Tarin (1886) towards the end of the 19th century, some old shafts were explored and a 1.25m wide intersection of sulfide mineralization rich in copper, lead and silver was found. The mining group sold the tenements in 1872 to the Malagуn Mines Company, which after producing about 300 tons, abandoned the tenements. Some exploration took place in 1938 and 1943. Phelps Dodge explored the deposit in 1975 and 1985.”

“ In El Cura deposit an adit from the 19th century of less than 100 meters, presumably to intercept the mineralized lenses, is known to be buried. There is also a 60m deep shaft, that intercepts two mineralized lenses 900 m apart, at 47 m depth. Another shaft, to the west also intercepted a lens. In 1946, the explorer Pinedo Vara found a pile of ore with the following grades 5.7 % Cu, 14.0 % Pb, 24.0 % Zn, 2.0 % Sb, and 580 g/t Ag.” THIS EQUALS OVER $2300/ton

Internal Reports acquired from Rio Tinto state that there are at least 2 million tons of similar to La Infanta, historic drill cores not available.

• 2 Million Tons at La Infanta grade of $$828/Ton
  
• Multiple lens near surface

Metal Value = $1.656 Billon USD 

NOTE: Notice there are two Parallel Volcanic Sedimentary Suite hosting Massive Sulphide Mineralizations unpinning these high grade deposits, VMS deposits occur in clusters, a string of pearls, beginning to understand why they locked up so much more land in the last years. 

IMMEDIATE/NEAR TERM DISCOVERY UPSIDE ON THE IBW...

The Gravity Survey shows 4 possible new deposits but MORE INTERESTING the results so far from the unreleased on-going DEEP EM SURVEY revealed that the large gravity anomaly above La Infanta has a large EM signature much the same as the LA INFANTA DEPOSIT which now extends below 400m. 

When GRAVITY and EM CONDUCTORS agree, there's a ultra high-grade deposit a stones throw away and it's a VMS system where deposit form in clusters, the odds are that another ultra high-grade deposit exists, This La Infanta sister scale is actually largest then La Infanta in Gravity.

The coming release of the Deep EM Survey will be a real game changer for the company because it's the first time in history anyone has ever seem what's below 100 meters on this land package due to the technological limitation of 30 years ago.

David speaks about this possible 4th deposit on this Podcast: https://anchor.fm/docjonesresourceinvestor/episodes/Company-UPDATE-on-EMERITA-RESOURCES-with-CEO-David-Gower-e1674h2

2) Aznalcollar Project Package (AZN)

• The AZNALCOLLAR/LOS FRAILES TENDER was to PUT THE MINE BACK INTO PRODUCTION, a commercial mine has already been approved by all levels of Government. That's a very important point. THE TENDER WAS TO BUILD A MINE not just to explore for resources and hope they allow a mine years down the road.. Emerita has already submitted a 10'000 page details Feasibility Study Level Engineering Plan that included: tailing storage, waste management, a mill design, water use and treatment, power and processing, etc etc and that proposal was approved back in round one of the tender process, that's why they were the only company to legally advance to the final round.
  

To understand the legal battle read this: https://ceo.ca/@Drjimjones/victory-is-oursemerita-resources-emerges-as-a-titan-ddr-8

It speaks for itself, doesn't it?  

• Approx. $30 Billion in high grade underground mineable resources over 4 known deposits, all open for expansion, all deposits will fall into 1 mine development plan utilizing a central ramp acmes system and feed 1 mill. 
  
• Approx. 90Mt of high-grade resources as-is valued at over $30 Billion USD that can reasonable grow to 150Mt of high-grade or to $45 Billion USD in gross metal value of mineable resources.
  

THE AZN PACKAGE'S 4 KNOWN DEPOSITS 

1) The old Aznalcollar Copper-Silver Mine (Approx. $13 Billion in high grade metal)

90 million tons that has a high-grade lens of 43 millions tons in the Pyritic Complex not mentioned in Emerita's presentation, though David mentioned it in the webcast and was verified in a 1998 Ming Journal containing all known deposit in the Iberian Pyrite Belt.

43 Million Tons of High Grade

1.38 million ozs gold

93 million ozs silver

3.15 billion pounds of zinc

1.67 billion pounds of lead

416 Million pounds of copper

NOTE: It was drilled for shallow drilled an open pit, the last and deepest hole was in +30 meters of high grade, it will get a lot bigger. 

2) Los Frailes Mine Zinc (Approx. $11 Billion in high grade metal)

70 million tons including 28 million ton high-grade lens (comprised of 20 million tons pit constrained and 8 million ton below the pit identified mentioned by the CEO in multiple webinars.)

28 Million Tons of High Grade

4.1 Billion pounds of Zinc

2.4 Billion pounds of Lead

179 Million pounds of Copper

76 Million ozs of Silver

Note: The last and deepest hole in the 28mt resource is in +60 meters of mineralization, 40 meters of which is high grade. This will get a lot bigger. The last hole is below.

3) Unnamed High-Grade Deposit (Approx. $1.8-$3.6 Billion in high grade metal)

It falls between Los Frailes and Azn mine, it hasn’t had enough drilling to define tonnage but has multiple high grade intercepts similar grades to Los Frailes it's upside of an additional 5-10 million tons.

4) The Caridad/Cuchichon Deposit (Approx. $3.6 Billion in high grade metal)

High Grade like Los Frailes, near the Los Frailes mine, accessible from planned ramp system/mine working that will serve the Los Frailes, AZN, Unnamed deposits 10Mt approx.

THE BATTLE for the AZNALCOLLAR LAND PACKAGE is ENDING...

After 6 long years in multiple levels of court The Aznalcollar Land Package with its +$30 USD Billion in historical high-grade resources across 4 high grade deposits, open for expansion is final coming home to it’s lawful and rightful owner: Emerita Resource.

NOTE: The legal team, CEO and President went through years where they worked for free without a salary fueled by their conviction that they would win in court. Seems they were right. They won IBW now AZN is looking to be the same. Victory.

Based on the data, the quotes from the courts, legal team, David Gower CEO, official release pretty much sums it up:

“...It is important to note that three levels of courts in Spain have determined that crimes were committed during the tender process and have ruled that the accused must stand trial. With respect to the title to the Aznalcollar property, Emerita’s external Spanish legal counsel has advised the Company that under Spanish law if there is commission of a crime in awarding a public tender that bid must be disqualified and the tender must be awarded to the next qualified bidder. Emerita is the only qualified bidder in this particular tender.”

"...the Provincial Court, in reviewing the case during the previous appeal process, has indicated that the other bid did not meet the requirements laid out in the tender process and should have been disqualified on that basis alone."

"According to Emerita’s external Spanish legal counsel this is a very important step since trials in Spain do not typically proceed to this stage without a high certainty of guilt and it is very rare that accused are found not guilty at this stage. In this trial there are 14 accused individuals."

NOTE: Once 1 person is found guilty it triggers the Tender to be revoked and awarded to Emerita, they do not have to wait until every trial is done. The tender can be awarded to Emerita concurrent to the trial going on.

It seems self-evident that the Government Of Spain not only has an extremely high confidence in Emerita but also shares a strong belief that it's management has the abilities the explore, develop and bring mineral deposits into production quickly and safely. Why else would The Government of Spain consistently support Emerita's legal claims and consistently chose them as the winner of public tenders, awarding them multiple valuable land packages. Common sense, right?

On Thursday June 24th Emerita Resource put out a press release: “Emerita Provides Update on Aznalcollar Court Proceedings, Spain” in it they confirmed what had been circulating in Spain’s media a few days early.

YOU HAVE TO READ THIS: https://ceo.ca/@nasdaq/emerita-provides-update-on-aznalcollar-court-proceedings

SUMMARY OF THE PRESS RELEASE:

• This is a sentencing phrase, crimes have already established, it’s just a question of which individuals will get what sentence.

• A total of 16 individuals advance to the sentencing round, 9 more then originally charged

• The charges have been upgraded to more serious crimes which now include jail time

• The Court has decreed no more appeals or evidence maybe submitted, nothing will further delay the resolution of this case

• 3 levels of court in Spain agree and have determined crimes were committed during the tender process, the other company shouldn't have advanced from round 1 to round 2 and then have been awarded the AZN and have ruled that the accused must stand trial.”

• 99% conviction rate once it goes to this stage

“under Spanish law if there is commission of a crime in awarding a public tender that bid must be disqualified and the tender must be awarded to the next qualified bidder. Emerita is the only qualified bidder in this particular tender.”

“the Provincial Court, in reviewing the case during the previous appeal process, has indicated that the other bid did not meet the requirements laid out in the tender process and should have been disqualified on that basis alone.” Emerita should have been awarded the tender 7 years ago to begin with

"According to Emerita’s external Spanish legal counsel this is a very important step since trials in Spain do not typically proceed to this stage without a high certainty of guilt and it is very rare that accused are found not guilty at this stage”

SIMPLE LOGIC TIME

If it looks like a duck, if it talks like a duck, if it walks like a duck; then it’s a duck! Emerita has won the tender, the data in conclusive, in a short amount of time it will be officially awarded.

"no additional evidence may be submitted nor appeals heard that could further delay the legal process proceeding to formal trial of the accused parties."

Occam Razor: the simplest answer is usually the correct one:

• If a crime was committed: Emerita wins.

• The Provincial Court has stated publicly that the other company shouldn't have gone to the second round of the tender: Emerita wins.

Data Analysis Simplified: 

7 More people charged plus more severe crimes added to the list of charges, more severe punishments levied, 3 levels of court support Emerita’s case stating that crimes were committed and if a crime is committed Emerita wins, Provincial Court says the other bidder didn’t even complete the work to go to round two in the first place. Emerita wins.

Resolution Timeline: David Gower, CEO of Emerita, expects the case to be resolved by end of July, or no later than by the end of September (Spain’s Gov’t shuts down for the month of August every year, Gov't holiday.). The Courts have barred any further appeals or evidence to impede the resolution of this case. (see news release above). There is the risk that the process could drag out longer than expected, if it takes 6 months or even a year, in the end, based on the data that Emerita will be awarded the Aznalcollar Tender. In the meantime, the IBW project and Neuvo Tintillo alone offer at least 5X upside while waiting for a resolution to AZN.

The markets are forward looking, as more begin to adopt the opinion "Victory Is Ours!" the share will reflect a win of AZN long before the official announcement adding $1-$2 billion USD.

The laws and all levels of the courts are very clear in regard to that crimes were committed and that the other company should been disqualified from the tender years ago.

NOTE: it’s important to realize that EMERITA RESOURCE is now the 3rd largest land holder in the region through winning multiple public tenders.

It seems self-evident that the Government Of Spain not only has an extremely high confidence in Emerita but also shares a strong belief that it's management has the abilities the explore, develop and bring mineral deposits into production quickly and safely. Why else would The Government of Spain consistently support Emerita's legal claims and consistently chose them as the winner of public tenders, awarding them multiple valuable land packages. Common sense right? 

Total AZN Package As-Is, Day One, Approximate Gross Metal Value

• Just the mineable high grade resources
• all deposits are close enough together to be developed to be mined utilizing a central ramp access system and feed one central milling complex.
  
• All deposits open for expansion
• only drilled to 350m max

All Four Deposits: 

Los Frailes, Aznalcollar, UnNamed Lens, Caridad = Total Gross Metal Value = $29.4 - $31.2 Billion USD

Total High Grade Tonnage: 86Mt - 91Mt at an average of  over $300USD/ton 

Company Wide Historical Resources

7 deposits at/near surface, within 2 project areas, ramp access, high-grade tons:

1. IBW (La Infanta, Romanera, El Cura) = $7 Billion USD
2. Aznalcollar Package (Los Frailes, Aznalcollar Mine, Caridad, UnNamed Lens, median average value) = $30.0 Billion USD

Total Company Wide High Grade Resources: $37 Billion USD
Total High Grade Tons: 102.5 Million tons
Average Value Per Ton: $361 USD

In Gold Equiv. using $1828 gold price = 20 Million Ozs @ 6.14g/t gold
In Silver Equiv. using $24.50 silver price = 1.5 Billion Ozs @ 457g/t silver
In Copper Equiv. using $4.34 copper price = 8.53 Billion Pounds @ 3.78% copper
In Zinc Equiv. using $1.35 zinc price = 27.41 Billion Pounds @ 12.15% zinc

THE MONSTER NUEVO TINTILLO LAND PACKAGE 

The SCALE of this package is over 3x of the Aznalcóllar Package. Emerita in the last year won yet another important Tender, The Neuvo Tintillo Land Package that sits above the Aznalcollar Land Package which contains multiple historical workings, untested showings and outcrops. 

• There is 8 zones of high grade mineralization historically documented on the property.
  
• Copper enriched
• Trucking distance to future AZN milling complex
• over 16 historical mine working within property borders
• Little to no modern exploration or geophysical surveys
• size, scale, geology offers the opportunity of discovering multiple Tier-1 deposits
• no special environmental permitting requirements 

CLARUS REPORT UPSIDE PRICE TARGET of $13.25

• Their model only includes 55Mt of the historical approx 90Mt that with expansion will likely exceed 150Mt
  
• Their model doesn't include any Gold at the AZN of which there is 1.38 Million ozs at 1g/t
• Their model assumes lower recoveries then is current being experienced by our neighbours
• Their model assumes flat commodity price well below current, copper at $3/lb for example
• Their model to arrive at price target includes the future issuing of 51 million shares
• Read it, it's a very conservative report

WHAT MY POINT? 

Even though Clarus used very conservative number to model their price targets they still get to a an upside of $13.25, so what is the actually upside target share price including all the resource historically let alone the additional tons from expansion drilling and adding in any new discoveries on the super-sized IBW Project area and the Neuvo Tintillo? $20-$30-$40? Model it just using the all the historical tons and you are well north of $20 a share.

Full Clarus Report: https://cdn-ceo-ca.s3.amazonaws.com/1gjf0ln-EMO-2021-07-23-Clarus-IR.pdf

CONCLUSIONS

• The data is the data.
  
• The math is the math.
  
• The geology and geophysics are the geology and geophysics. 
• All the data correlates to the answer that Emerita Resources has the assets, management and assets to grow quickly into a very important Mid-Tier Global Mining Titan in the next few years if it is not bought-out by a major prior. I believe in the next 2-3 year they will command a market cap that exceeds $4 billion USD equal to 5-10% the value of the high-grade mineable global resource.
• They will win Aznalcollar 
• IBW is growing into a world class mining camp
• Compared to peers and past deals EMO will command a Market cap many times it current. (see prior reports for financial analysis)

The current state as-is already exceeds Arizona Minings $2.1 buy-out by South 32 a few years ago but Emerita's average grade in much higher and won't require sinking a 500m shaft to get to the ore body, nor will they surfer the permitting horror South 32 is experiencing. The Tender for AZN was to BUILD and PUT THE MINE INTO production. It's already has been approved by all levels of government in spirit.

With continued successful resource confirmation and expansion Emerita will be valued above $4 Billion USD / $5 Billion CN within 2-3 years as their tonnage and scale increases across their world class portfolio in the Iberian Pyrite Belt of Spain.

This is the best risk reward I have seen in over a decade.  

Best Regards,

Doc Jones

Twitter:

drjimjonesceo

Podcast channel:  https://podcasts.apple.com/ca/podcast/due-diligence-by-doc-jones-resource-investor-hunting/id1568221675

Website:  https://drjonesresourceinvestor.wordpress.com

Past Reports on EMO:

https://ceo.ca/@Drjimjones/emo-emerita-resources-isthe-great-bear-resources-of-thepolymetallic-sector

https://ceo.ca/@Drjimjones/emo-emerita-resources-announces-first-assaysafter-winning-6-year-court-battle

https://ceo.ca/@Drjimjones/victory-is-oursemerita-resources-emerges-as-a-titan-ddr-8

I’m a PRIVATE INVESTOR, enjoying early retirement after a long, successful, and fulfilling career as an investment professional with a focus on the resource sector (including oil and gas). I employ common sense, Fundamental, bottom-up analysis that incorporates but not limited to: currency exchange rates, cost of labor, raw materials cost, geology, Metallurgy, cost of capital, infrastructure, macro influencing factors, capital discipline by management, etc. 

Research, research, research. I run a highly concentrated and focused portfolio.

If you want to invest along side me, do your own due diligence, it’s your money, your responsibility, buy and sell for your own reasons not mine. It’s your money.

The best investment you can make is in your own education.

I am driven by the hunt for value and truth. This is my passion in life. I’m a big research nerd. Always double-check and only trust the numbers that you have vetted.

Commit to memory: “all ozs in the ground are NOT created equal” understanding this basic principle will increase your wealth and your ability to sleep at night...

If the data changes then I do, no emotion about it, let the data guide your investments.