“Copper Discovery Targets Expanded” explains Coppernico CEO Ivan Bebek (Sombrero Project Update)

Key Concepts

• Sombrero Holdings: Capernico Metals' primary project area.
• Roomie Target: A newly discovered, significant target within the Sombrero holdings.
• BLEG Survey (Bleg): A geochemical survey method involving collecting stream sediment samples to identify mineralized areas.
• Lithocap: A cap rock that can obscure underlying mineralization.
• Scar System: A geological feature that can host significant mineralization but is often narrow and tricky to explore.
• Permitting: The process of obtaining regulatory approval for exploration and mining activities.
• Community Relations: Building positive relationships with local communities, particularly through social benefit programs like agriculture and job creation.
• Copper Market: The current and projected strong performance of the copper commodity.

Capernico Metals Update: Sombrero Holdings Expansion and New Discoveries

This update from Capernico Metals, presented by founder, chair, and CEO Ivan Beck, focuses on the company's strategic optimization of its Sombrero holdings, the discovery of new, significant targets, and advancements in permitting and community relations in Peru.

1. Strategic Land Position Optimization and New Discoveries

Capernico Metals has been actively optimizing its land position within the Sombrero holdings. While some ground has been relinquished due to a lack of technical significance or social accessibility, this process has led to the identification of new, potentially spectacular targets.

• Rationale for Expansion: The company is being highly competitive as a first mover in the district, with major and mid-size explorers showing increased interest in the region. This necessitates a proactive approach to securing and optimizing land.
• "We know a lot more about this region than we're obviously going to share publicly because we're being very competitive as first movers in the district." - Ivan Beck.
• 17 Standalone Targets: Capernico has identified 17 distinct, potential standalone significant discoveries within its land package.
• Target Scale: Each of these targets measures between 1 to 3 kilometers in scale, which is considered substantial for exploration targets.
• Investment and Perseverance: This extensive target generation is the result of 10 years and approximately $50 million spent, driven by the belief in extending a major copper-gold mining trend that hosts world-class mines like Las Bambas, Tintaya, and Constancia.
• Focus on Quality Ground: The company emphasizes that "You don't get paid for having a lot of ground. You get paid for having the right ground."

2. The Roomie Target: A New Discovery

A significant highlight of the update is the discovery and initial assessment of the "Roomie" target.

• Discovery Method: The Roomie target was identified from data collected during a BLEG survey conducted in 2015-2016. This survey involved collecting granular data from stream drainages to detect elevated mineral concentrations.
• Initial Indicators: The BLEG survey indicated the potential for a copper-gold system in the area.
• Follow-up Exploration: Tim Kingsley, VP of Exploration, and his team recognized the potential and followed up with ground-walking reconnaissance, leading to their excitement and surprise at the findings.
• "This is an individual new discovery that we've made off of our own data that we collected back in 2015 2016." - Ivan Beck.
• Geological Significance: Geologically, the Roomie target is measuring up with significant interest and is expected to become a top priority.
• Location: The Roomie target is situated east-southeast of the Tippiccha target within the general project area.
• Outcrop Exposure: While there is some outcrop exposure through the lithocap, further results from surface work are pending. The geological model suggests a potentially large system beneath the cap.
• Permitting Status: The current permit application does not include the Roomie target. A community access agreement is underway, followed by a permit application for this specific target.

3. Permitting Advancements and Community Relations

Capernico Metals is making significant progress on permitting and fostering strong community relationships, which are crucial for advancing its projects.

• Major Permit Filing: The company is about to file its major permit for the Furaso Kasabomba to Picancha areas within the next week or two.
• Additional Permits: Work is also underway on additional permits and community access agreements in the Neocho area and the Sombrero region.
• Shift in Peru: There appears to be a positive shift in Peru, with increased metal prices driving a desire to move projects forward.
• Social Benefit Programs: Capernico's success is attributed to its proactive social presence, including agriculture programs and job creation. These initiatives have created over 100 jobs in 12 months and are now extending to neighboring communities.
• Positive Community Impact: The company highlights its strong track record, with no safety incidents since 2015 and a reputation for being "great citizens." They have educated communities about the minimal impact of exploration and fostered collaborative partnerships.
• "We're starting to get more access. Permits are moving forward and now we're identifying some of the best targets we can as a junior globally." - Ivan Beck.
• Community Interest: Neighboring communities are showing interest due to the sustainable social benefits and job creation opportunities.

4. Copper Market Outlook and Drilling Plans

The company is strategically positioned to capitalize on the strengthening copper market and upcoming drilling campaigns.

• Copper Market Strength: Copper has been exciting for years, and it is now "acting," with the spot price recently moving through $5. Capernico anticipates a "massive massive move in the copper price" over the next two years.
• Drilling Timeline: The company plans to commence drilling its high-priority targets, both hidden and obvious, around mid-Q1.
• Permit-Driven Drilling: Larger permits for Furaso and Neo are expected in late Q2 of next year.
• Scar System Exploration: For scar systems, which are known to be tricky but can carry significant grade, Capernico will apply different geophysical techniques, including gravity and advanced magnetic surveys, to improve resolution and confidence in targeting.
• "I think the next two years, you're going to see a massive massive move in the copper price, which will be as the same time we're starting to drill most of our high priority targets." - Ivan Beck.

5. Future Catalysts and Investor Relations

Capernico Metals anticipates a significant news flow in the coming months, driving investor interest and share price appreciation.

• Active Pipeline: The company expects a very active pipeline with more surface results and permit advancements.
• Upcoming Press Releases: Approximately six to seven impactful press releases are anticipated between now and the end of January.
• Roadshows and Conferences: Ivan Beck is actively engaging with investors through roadshows and conferences in New Orleans, Zurich, and New York.
• US Project Exploration: While Capernico can drill year-round in Peru, they have been exploring project acquisitions in the US for diversification. They are currently in the due diligence stage for three high-priority targets in the US but are prioritizing the advancements at Sombrero due to its increasing activity.

6. Company Information

• Website: capernicometals.com
• US Ticker: CPMF
• Toronto Ticker: COPR