Could you introduce yourself and tell us about Fredonia Mining?

My story in mining began with my father, a geologist who worked on exploration programs financed by the Argentine state. My own background is in project financing. After the commodity crash of the early 2000s, I worked in London with Barclays’ metals group, which opened my eyes to the financing side of mining. 

In 2011–2012 we founded Samco Gold, which held the projects that today form part of Fredonia. We raised capital and carried out extensive drilling, but when the super-cycle ended in 2013–2014, and investors viewed Argentina as too risky, we had to restructure. In 2015 we founded Fredonia Mining, regaining control of the assets and relaunching under a new structure.

The context began to improve under former President Mauricio Macri, although capital remained scarce. At that time, Resource Capital Fund supported us with an initial financing of just over US$1 million, which allowed us to restart drilling in our two main projects: Águila and El Dorado. The latter, with nearly 30,000 meters of historic drilling, quickly became our main focus. While we did not find spectacular intercepts like those at Cerro Negro or Cerro Moro, the mineralized system consistently gave us reasons to move forward.

In 2021 we listed Fredonia on the TSX and raised about US$6 million, mainly from institutional investors, which gave us stability. In 2022, we raised additional funds and completed 15,000 more meters of drilling with very positive results.

What results has exploration delivered at El Dorado, and how do you view the project today?

Last year we commissioned a resource estimate that confirmed 2.25 million oz with an average grade close to 0.9 g/t of gold equivalent. This demonstrated that the project is economically viable with today’s infrastructure in Santa Cruz. I am convinced that El Dorado can become the next gold mine to be developed in the province.

How has the market and financing environment evolved for you?

Today, investor appetite has returned, and we are negotiating financing that could take us to the next stage, possibly a prefeasibility study. The recent activity around Cerro Vanguardia has also brought more attention to our district, from which we are benefiting.

What challenges and opportunities do you see for gold exploration in Argentina?

Argentina has enormous geological potential, but under very unique circumstances. Exploration risk capital has been scarce due to broader economic instability, which has led local investors to prefer short-term or protected businesses over the long-term risk of exploration. International capital has also been cautious, given political swings and inconsistent regulations.

Costs are high, and labor and union issues in Santa Cruz add complexity. Large companies with producing mines can manage this, but for juniors it increases risk. That said, provinces such as Santa Cruz, San Juan, Catamarca, and Jujuy remain fundamentally mining-friendly. I believe Argentina’s federal government has always supported mining; what is really needed is a more rational and consistent political opposition to avoid extreme shifts. Encouragingly, the current mining authorities, under the leadership of Claudio Vidal, have shown strong support for our company and demonstrated a very efficient management approach, which gives us confidence in the direction the sector is heading.

How does Fredonia Mining approach sustainability and community relations?

We operate with strong environmental safeguards and maintain transparent and respectful relations with local communities. In Santa Cruz we have had no conflicts with communities, something we are very proud of. 

What are Fredonia Mining’s priorities for the coming year?

Our immediate priority is to secure financing that will allow us to continue systematic drilling at El Dorado and move toward prefeasibility. The area is very active and has already attracted significant interest from investment groups.

Some believe we already have sufficient information to take the next step, and we are carefully evaluating those opportunities. I am very optimistic: El Dorado is the best-positioned project in Santa Cruz to move toward development. With continued investor support, within the next six months we expect to resume systematic drilling with the goal of establishing El Dorado as the next producing gold mine in Argentina.

At the same time, Fredonia is committed to working very closely with the provincial authorities to ensure mutually beneficial outcomes—for the company, the communities, and the long-term development of Santa Cruz.