“Highest-Probability” Discovery Targets Defined says Coppernico Metals VP Exploration Tim Kingsley

Capernico Metals – Sombrero Project Update: Detailed Summary

Key Concepts:

• Scar Mineralization: High-grade, concentrated metal deposits.
• Porefree System: Large-scale, diffuse mineralizing systems with broader envelopes.
• Geophysics (Gravity & Magnetics): Utilizing physical properties of rocks to infer subsurface geology.
• Iterative Exploration: A cyclical process of data collection, analysis, and drilling to refine targets.
• Post-Mineral Cover: Overlying layers of rock obscuring mineralization, necessitating geophysics.
• Andaliari Belt: A mineral-rich geological region in Peru, serving as an analog for Sombrero.
• IP (Induced Polarization): A geophysical technique used to detect chargeability anomalies associated with mineralization.
• Tippy Kancha: A younger, distinct mineralizing system within the Sombrero project area.

---

I. Project Overview & Phase One Drilling Results

Capernico Metals’ Sombrero project in Peru is a large-scale exploration venture (over 55,000 hectares) focused on base metal discovery. The current phase builds upon Phase One drilling (20 holes) which, while not definitive, provided crucial insights into the complex geology and validated existing geophysical models. The primary goal of Phase One was to understand the 3D architecture of the Pfray-Scar system and correlate geological features with geophysical signatures. Results improved understanding of a large and complex Pfray-Scar system and highlighted the importance of using geophysics to infer geology beneath significant cover. The drilling program confirmed the continuation of mineralization at the Theoraso target down to at least 230 meters below surface.

II. Geophysical Surveys & Target Refinement

Following Phase One, Capernico Metals conducted refined gravity and magnetic surveys, alongside high-resolution topography and photogrammetry. These surveys aimed to map density variations (gravity) and magnetic signatures, both indicators of potential mineralization. The key finding is the ability to validate geophysical targets on surface (at Pioraso and Neoch) where mineralization is visible, and then search for similar signatures at depth. This has allowed for a significant refinement of initial targets, reducing a 3x2 km area to 1.5 km, focusing exploration efforts on the most prospective rock volumes. The use of gravity surveys is particularly important as scar mineralization is often dense. Analogous deposits in the Andaliari Belt, such as Las Bombas, Tentaya, and Korokco, are being used as comparative models.

III. Target Prioritization & Drilling Plan

Currently, four major targets are prioritized: Ferraso, Neoch, Antipa, and Tippy Kancha. The company estimates a minimum of 40 drill holes will be required to adequately test these targets. The drilling strategy will be aggressive but disciplined, incorporating learnings from each hole to refine subsequent drilling plans.

• Ferraso & Neoch: These targets exhibit similar characteristics and are considered high-priority due to surface mineralization and favorable geophysical signatures. Neoch is larger in scale than Ferraso.
• Antipa: Located as a northern extension of Neoch, Antipa shows similar geophysical anomalies and potential for mineralization, though it is largely covered.
• Tippy Kancha: A distinct, younger mineralizing system offering a different exploration opportunity and a pipeline of targets. Initial drilling will focus on understanding the system's characteristics.

IV. Scar vs. Porefree: Exploration Strategy

Tim Kingsley articulated a key exploration strategy: targeting “scar” mineralization for high grades and “porefree” systems for scale. Scar deposits represent concentrated, high-grade mineralization, while porefree systems offer broader, potentially economic mineralized envelopes. The ideal scenario is to find both high grade and significant volume within the porefree system. The project benefits from infrastructure (road access, power lines, water) which would facilitate potential mining operations.

V. Analogies & Regional Context

Ivan Beck emphasized that Capernico Metals’ land position represents an extension of the Andaliari Belt westward by 200 km, potentially hosting multiple mines similar to those already established in the region. The company’s thesis is that Sombrero could contain three or four mines, rather than relying on a single discovery. The project’s potential is viewed as a “multigenerational discovery opportunity.”

VI. Financing, Permitting & Timeline

The next phase of drilling is contingent on securing financing and obtaining necessary permits. Discussions are underway with potential strategic investors. The company anticipates receiving the larger permit needed for expanded drilling in May-June. Drilling is expected to commence in the third week of April, assuming funding is secured. Listing on the New York Stock Exchange (NAMX) is a future goal to broaden investor access.

VII. Key Quotes

• Ivan Beck: “Drill for knowledge…having the discipline to stop that program and use the rest of it to do the appropriate studies…is really intelligent in hindsight.” (Regarding the iterative exploration approach)
• Tim Kingsley: “It’s going to be always drilling for discovery, but…there’s going to be a lot of secondary information that is going to be quite important to guide how we drill and where we go next.” (Highlighting the adaptive nature of the drilling program)
• Ivan Beck: “We are hitting a perfect storm…we’re going to have a lot of swings at the drill bit here.” (Expressing optimism about the project’s timing and potential)

---

Conclusion:

Capernico Metals’ Sombrero project demonstrates significant potential for copper and base metal discoveries. The combination of refined geophysical data, learnings from Phase One drilling, and a strategic exploration approach focused on both high-grade scar mineralization and large-scale porefree systems positions the company for a potentially impactful drilling program. The project’s location within the prospective Andaliari Belt, coupled with existing infrastructure, further enhances its attractiveness. Successful financing and permitting will be crucial to realizing the project’s full potential. The company is aiming for a disciplined, knowledge-driven exploration program with the goal of multiple discoveries over the next 12-18 months.