Copper Explorer Sets Sights on Premium Targets in Peru

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Disclosures From Coppernico Metals Inc.,

1. Coppernico is solely responsible for the technical information herein about its Ccascabamba project, such disclosure having been reviewed by its qualified person Tim Kingsley, C.P.Geo.
2. Streetwise Reports has written this article with information compiled from third-party sources and does not make its own opinions. The information presented in this article comes from Coppernico Metals (when writing technically about the Ccascabamba project), and third-party sources outside of both Coppernico Metals and Streetwise Report’s control.

Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB) recently announced a corporate update  highlighting its achievements in 2024 — including the commencement of trading on the Toronto Stock Exchange and securing a CA$19.37 million financing which included Teck Resources acquiring a 9.9% stake in the Company — and shares its strategic objectives for 2025.

Its Phase 1 (2024) diamond drilling program at its wholly-owned Sombrero Project in Peru completed more than 5,200 meters of drilling across 12 holes to test high-priority targets within the Ccascabamba target area.

The company said initial assay results from the first five holes at the Corrales and Hojota targets "indicate significant potential for copper and gold mineralization, showing grades comparable to those at the analogous Las Bambas mine."

The year "was pivotal for Coppernico as we achieved critical milestones, namely securing drill permits which allowed for the commencement of our inaugural drill program at the Sombrero Project, the completion of a CA$19.37 million financing during strong copper prices, and the commencement of trading on the TSX and OTCQB," Chairman and Chief Executive Officer Ivan Bebek said. "These achievements have not only strengthened Coppernico's position as a mineral explorer of a highly prospective project, but also expanded our global shareholder base."

A highlight of the inaugural drilling program included 19 meters of 0.50% Copper (Cu) and 27 meters of 0.21% Cu drilled in hole 4; follow-up drilling to expand on the results is expected this year.

Preliminary data from holes 6 through 8 at the Hojota target "indicate the presence of copper mineralization associated with sulfides along the highly prospective contact zone between the Ccascabamba intrusive complex and the Ferrobamba limestone," the company said in its release. "Holes 9 through 11 at the North Corrales and Chumpi targets have documented a high-temperature portion of the hydrothermal system and have provided a refinement of our understanding of these undercover targets."

'A Pivotal Point' in Exploration

During 2024, the company started trading its common shares on the Toronto Stock Exchange (TSX) under the symbol "COPR" and on the OTCQB Venture Market under "CPPMF."

The company also secured the CA$19.37 million in financing, including a 9.9% equity investment from Teck Resources, to advance Sombrero.

Coppernico said that as of December 31, 2024, it "maintained a robust financial position with over CA$11 million in cash" which will be used to continue its planned 30-hole drill campaign in 2025.

Last year's drilling uncovered key promising areas within Sombrero, and "while the results to date are consistent with our exploration thesis, we have encountered limited grades and width of the magnitude that we are targeting," Bebek noted.

"However, we feel that we are at a pivotal point in our vectoring and understanding of the large skarn system that is present," he said. "With a steady drilling pace of approximately 1,000 meters per month, and disciplined financial management, Coppernico is in an excellent position to capitalize on exploration success."

Phase 2 Fully Funded, Permitted

According to the news release, Coppernico's 2025 objectives include initiating a Phase 2 drilling program, which is fully funded and permitted, to complete the remainder of the program which, in aggregate, was planned to include 30 holes and 11,500 metres of drilling over Phase 1 and 2. This next phase is expected to focus on testing additional high-priority zones and expanding on existing promising targets from Phase 1.

"Disciplined, widely spaced drilling in 2024 provided an initial high-level picture of this extensive and polyphase skarn system," the company said. "The team is using this information to dramatically improve our understanding of the 3-D architecture of the hydrothermal system and is beginning to define a variety of zonation patterns based on geochemistry and alteration minerals."

The results defined "numerous high-priority targets for follow-up drilling," which will be tested in the coming year.

"As we look to 2025, our key focus includes the expansion of our drill-permitted polygon and securing access to some of the most robust outcropping areas of the system," Bebek said. "We look forward to the pending results from completed drilling and from the next set of holes currently in progress."

'A Billion-Dollar-Plus Idea'?

British Columbia-based Coppernico was spun out of Auryn Resources in 2020 and is exploring for large-scale, high-grade copper and copper-gold projects in the Americas, the company said.

Ccascabamba skarn-porphyry system at Sombrero would be "a billion-dollar-plus idea if it works, if the company has drill success and is able to prove up even just half the resource of this single target," Steven Therrien, senior mining analyst at 3L Capital, wrote in a research report.

The property sits on the western extension of one of Peru's most prolific copper belts, Andahuaylas-Yauri, host of some of the world's largest copper mines.

"The Sombrero project represents a unique opportunity to extend a world-class belt and hosts the potential for multiple major discoveries," said Tim Kingsley, Coppernico's vice president of exploration.

The Catalyst: New Opportunities in Red Metal

The inauguration of President-elect Donald Trump and tariff threats are leading to higher silver and copper prices, "opening up opportunities in those two metals," VettaFi's Beth Hernandez wrote on January 14.

"The fear of trade wars was made apparent as silver and copper prices ticked higher in last week's trading session," she wrote. "Traders are placing bets that the incoming president will impose tariffs on silver/copper imports, potentially sparking a global trade war."

Peru, as a mining jurisdiction, is the world's third leading copper producer, according to Red Cloud Research. The country is on track to invest more in mining this year than the government estimated, and the total could reach US$5.3 billion, according to Peru's largest commercial bank, Banco de Crédito del Perú.

"We are seeing the pace of permit approval increase and major permits being issued, such as the February 2024 Modification of the Environmental Impact Assessment approval that allows for a US$2 billion Antamina copper mine expansion, a positive sign for mining and exploration in the country," 3L Capital Analyst Therrien added.

The reason for all the activity is the red metal's importance to the energy transition. According to Credendo, demand for copper could double by 2035, as electric vehicles (EVs) use more than three times as much of it as gas-burning cars.

In a piece on Mining.com, Ahead of the Herd's Rick Mills wrote, "Simply put, the road to reaching net zero begins and ends with copper. All infrastructure built to support renewable energy uses large amounts of copper, as the metal is a highly efficient conductor of electricity and heat."

S&P Global Market Intelligence has projected that annual global copper demand will nearly double to 50 million tonnes by 2035, he noted.

Ownership and Share Structure

Regarding ownership of Coppernico Metals, according to company estimates, strategic investors, including insiders, own 55.46%. Specifically, CEO Bebek holds 3.45%, management and directors have 1.6%, and close associates own 34.23%. Teck Resources (TECK:NYSE) owns 9.9% and Newmont Corp. (NEM:NYSE), 6.28%.

Institutional investors hold 17.75%, and retail investors account for 26.79%.

With respect to its capital structure, Coppernico has 177.3 million shares outstanding, 7.9 million options outstanding, and 36.1 million warrants outstanding.

The company's market cap is about CA$44.33 million. It has traded in a range of CA$0.21 and CA$0.54 since it commenced trading on the TSX on August 13, 2024.