Fitzroy Minerals Inc. (FTZ:TSX.V FTZFF:OTCQB) has secured the exclusive option to acquire the Polimet gold-copper-silver project in Chile. Fitzroy will acquire the project, which is located in the Valparaiso region, from Asesorias y Inversiones Sol SPA.
The Polimet project comprises 1,860 hectares of concessions, at an average altitude of 1,700 meters. It's located near the town of Petorca, around 105 miles from Santiago, and eight miles south of the El Bronce one-million-ounce epithermal gold-silver deposit.
Of the news, Fitzroy Minerals chairman Campbell Smyth, said: "Polimet offers the opportunity to explore a high-grade gold-copper target that is uniquely well suited for development. The Polimet project is located in a mining area dotted with many small processing plants."
He added that the "high tenor of the target" and its "unique infrastructure advantages" will lead to "significant value" being created.
Polimet has historic DSO (direct shipping operation) ore sales of 117 tonnes grading 33.5 grams per tonne (g/t) gold, 55 g/t silver and 6.9 percent copper. It also has a fully preserved low-sulphidation epithermal system with known mineralization, and around five kilometers strike of vein system identified and ready for drill testing.
In order to exercise the Polimet option, Fitzroy Minerals must make a cash payment of US$80,000 upon the signing of a definitive option agreement, and another $80,000 on the first anniversary. It will also need to cover exploration costs of at least $2.25 million over a three-year period. It will need to spend no less than $500,000 on exploration on each consecutive 12-month period.
In year four, Fitzroy Minerals will be able to exercise the Polimet option by making a $1.2 million payment to Asesorias y Inversiones Sol SPA.
Spotlight on Fitzroy Minerals
The company recently changed its name from Norseman Silver Inc., which will be delisted, and began trading as Fitzroy on the TSX Venture Exchange. There was no consolidation of capital, and the company is classified as a mining exploration/development company.
According to its website, Fitzroy Minerals is "focused on exploring and advancing commercial copper and gold discoveries in Chile and Argentina."
Its portfolio "includes the Caballos Copper project in Chile, the Taquetren Gold project in Argentina, and the non-core Cariboo project in British Columbia, Canada."
Fitzroy's management has over 120 years of combined experience in financial, technical and mining industries.
The Future Relies on Copper and Gold
As Fitzroy Minerals puts it, "the world needs more copper mines."
Katusa Research referred to the copper sector as one of four that "could have monster breakouts in 2024." It called copper "the backbone of our electric future – THE electric element." It explained that "things are setting up quite nicely for copper" due to "a slowdown for copper drilling activity in 2023 compared to the year previous" and the strikes at Las Bambas mine in Peru, pauses in BHP's Chile operations, and suspension of activity at First Quantum's Cobre Panama mine, which accounted for 1.5% of global supply.
Katusa also included gold in its potential monster breakout list.
John Gideon Hartnett recently wrote about J.P. Morgan's famous quote: "Gold is money. Everything else is credit." Schiff Gold summarized Hartnett's article by asserting that "even though the Fed still holds gold, there was never a time when the dollar was less backed or less safe than now."
As part of the news release, chairman Campbell Smyth highlighted the fact that "Fitzroy Minerals now has two ideally located projects in a premier mining jurisdiction" and mentioned the "global shortage of copper and gold assets with good grade, clean metallurgy and simple geometry."
Chief Operating Officer Merlin Marr-Johnson also explained: "The geology at Polimet is a classic low-sulphidation epithermal vein system, complete with bonanza-grade ore shoots. Uniquely for this district, the Polimet system consistently shows strong copper values of around 2 per cent in the veins, even when the precious metal content varies. This copper content could potentially cover development costs, which means that the gold and silver content would be essentially 'free.'"
Exciting Upcoming Catalysts
Fitzroy Minerals plans to start drilling Polimet in the second half of 2024, and are currently working on establishing and expanding its local exploration team.
According to Merlin Marr-Johnson, "exploration will include mapping, soil sampling and geophysics, prior to a drill program. The concessions host approximately five km of mapped veins to date and the aim will be to identify as many potential pay shoots as possible within the target area."
Michael Ballanger of GGM Advisory Inc. referred to "behind-the-scenes developments that are going to launch [Fitzroy Minerals] into the limelight within the next eight weeks." He went on to suggest readers "should be accumulating aggressively and BEFORE the stock starts to move."
Ownership and share structure
Headquartered in Vancouver, British Columbia, Fitzroy Minerals Inc. has 80.69 million shares outstanding and a market cap of $14.12 million.
84.7% of shares are owned by retail, while management insiders account for 8.36%. Institutions own 6.93%.
It trades at a 52-week range of CA$0.17 and $0.14.
