“Outstanding Surface Results”: 155m of .54% Copper at Coppernico Metals Nioc target - CEO Ivan Bebek

Key Concepts

• Sombrero Project: A large-scale copper exploration project in Southern Peru.
• NEOK Target: A specific area within the Sombrero project showing high-grade copper mineralization.
• Furaso Target: Another area within Sombrero with historical drilling, now re-evaluated for copper.
• Kuska Bomba Area: A key area for future drilling, requiring significant permitting.
• Channel Sampling: A precise method of collecting rock samples along a continuous line, akin to a horizontal drill hole.
• Trenching: Excavating shallow ditches to expose bedrock for sampling.
• Skarn Mineralization: A type of metamorphic rock deposit often associated with contact metamorphism and rich in various minerals, including copper.
• Porphyry System: A large-scale, typically low-grade, but economically significant type of mineral deposit associated with intrusive igneous rocks, often containing copper.
• Geophysical Program: Surveys (e.g., gravity) used to map subsurface geology and identify potential mineralization.
• Social Access & Permitting: Crucial processes for gaining community consent and government approval for exploration and drilling.
• Warrants: Financial instruments that give the holder the right to buy shares at a specified price, often used for financing.
• Copper Market: The current economic environment for copper, characterized by rising prices.

Project Overview and Strategic Importance

Capernico Metals is advancing its Sombrero project in Southern Peru, described as a "decade-long pursuit of a world-class copper district." The project is strategically located on or near the trends of major copper producers like Los Bombas, the 11th largest copper producer globally. Much of the area is covered by volcanic rock, necessitating detailed exploration to uncover the underlying copper mineralization. The company has identified several key targets, including NEOK, Furaso, Kuska Bomba, and Tippic Koncha.

Exceptional Surface Exploration Results at NEOK Target

Capernico Metals recently announced significant surface exploration results from the NEOK target. Building on previous results from September last year, which reported 52 meters of 1.06% copper, the company has now extended a continuous channel sample to 155 meters averaging 0.54% copper. These grades are considered "incredibly high grade" and "really high grade," respectively, with the width of the 155-meter intercept being "extremely impressive."

The speaker highlighted these as "some of the best surface copper results I've seen globally in the past few years on a project that's never been drilled." Further south within the NEOK area, additional trenching has revealed widths of 120-140 meters averaging 0.4-0.5% copper, with very high-grade sections attributed to skarn mineralization.

At the nearby Furaso target, historical drill holes, originally targeting iron, were re-sampled for copper, revealing 0.5% to 0.8% copper over tens of meters. The presence of "grazin surface" (likely referring to visible copper mineralization) in these historical drill holes further underscores the project's potential.

Exploration Methodology and Geological Interpretation

The exploration at NEOK involved a combination of channel sampling and trenching. The initial September samples utilized a rock saw to cut exposed rock. For the more recent results, trenches were dug approximately 2-3 feet deep to sample the bedrock directly. Channel sampling is described as being "like a horizontal drill hole," offering "extremely accurate" data that can be used in a resource calculation. Trenching is also considered "very representative."

The full width and north-south extension of the mineralization at NEOK remain unknown due to the thin volcanic cover, which is "extremely encouraging" as it suggests the potential for even larger scale.

Capernico's drilling philosophy is focused on "drilling for knowledge in first phases of any project." The surface evidence at Sombrero indicates "the hallmarks of a big skarn system and the potential for major porphyry system as well." This supports the company's thesis that the mineralization "could go to depth" and potentially represent "one of the new major copper discoveries globally."

A significant geophysical program, including gravity and other surveys, is underway over NEOK, Kuska Bomba, and Tippic Koncha. This program aims to provide crucial context for past drilling and guide future drill hole placement.

Permitting and Social Access Progress

Gaining social access and permits has been a significant challenge, contributing to the "9 years it took to get here." However, progress is now accelerating. The permit for the Kuska Bomba area, which would grant access to Furaso and allow for approximately 185 drill pads over a significant area, is reportedly "a bit ahead of schedule."

For the NEOK target, the permitting process is "two-thirds of the way there," awaiting a community meeting following the election of a new president late last year. The company anticipates a resolution in the coming months. The goal is to be in a position to drill both Kuska Bomba and NEOK this year. The "continued partnership with the communities" is highly valued and considered a "massive asset to the company."

Company Ownership, Financials, and Future Strategy

Capernico Metals maintains 100% ownership of the Sombrero project. The project has attracted significant attention from major mining companies, with Teck Resources recently acquiring 9.9% of the company and Newmont owning approximately 6%.

While the company has "a few million dollars in the treasury," it's not sufficient for extensive drilling. However, Capernico has "warrants that are in the money" and "a lot of options for financing," indicating no immediate rush for a capital raise in the next 30-90 days.

The company's strategy involves maintaining a "steady pipeline" of both advanced targets with extensive surface mineralization (some with historical drill holes) and slightly buried targets. The aim is to drill throughout the rest of the year. The current timing coincides with a strong copper market, with copper crossing $6 spot per pound at the time of the interview.

While acquiring a project in the US remains a high priority, nothing has yet matched the scale and quality of Sombrero. The company is "falling in love with Sombrero" due to the positive trends in permitting and access. Subject to financing, Capernico aims to drill 40 to 50 holes across numerous targets this year, anticipating its "biggest discovery year."

Upcoming activities include attending the Vancouver Resource Investment Conference and PDAC, alongside significant marketing efforts and further permitting updates expected within the next 60 days.

Conclusion

Capernico Metals is at a pivotal stage with its Sombrero project in Peru, showcasing exceptional high-grade surface copper results at the NEOK target (155m of 0.54% Cu, previously 52m of 1.06% Cu) and promising historical data at Furaso. The geological indicators point to a large-scale skarn and porphyry system with significant depth potential. After years of dedicated effort, social access and permitting are progressing positively, positioning the company for substantial drilling activity this year. With strong institutional backing, diverse financing options, and a favorable copper market, Capernico is poised for a potentially transformative discovery year, aiming to drill 40-50 holes across its numerous targets.