Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB; 9l3:FSE) announced an update on its Sombrero Project in Peru, including recent surface exploration findings at the Macha Machay and Milpoc targets and actions taken to optimize land holdings.
Highlights of the findings included initial surface mapping at the Macha Machay target that identified two new distinct hydrothermal alteration zones, indicative of epithermal-style systems. The Macha Machay East prospect shows a broad argillic and pyrite alteration footprint with coinciding geochemical anomalies.
The company said mapping efforts will also expand over the Milpoc target, where previous rock sampling revealed up to 8.45% copper and 101 grams per tonne (g/t) silver (Ag), found in basement rocks.
Additionally, a strategic rationalization of mineral claims is underway to optimize the Sombrero Project footprint, focusing on areas with the highest geological potential, Coppernico said.
Finally, the company also said in its August 18 release that Keenan Jennings is stepping down from the Board to take on an exclusive executive position with a mid-tier international gold producer.
"Since gaining access at Sombrero, we have conducted extensive and systematic groundwork across most of our expansive land package, building an exceptional pipeline of large-scale targets while streamlining our property portfolio to focus on the most geologically prospective areas," Chair and Chief Executive Officer Ivan Bebek said. "As we move toward Phase 2 drilling, we are advancing permits and land access agreements to ensure a steady flow of high-impact, drill-ready targets. As we optimize our land position in Peru, we are also actively pursuing potential additional property acquisitions in the U.S. in an effort to build our project pipeline ahead of an improving metals market, with a strong focus on copper and gold assets."
2 Distinct Alteration Systems Uncovered
In recent months, initial prospect-level mapping at a 1:10,000 scale has been conducted across the Macha Machay claim area, with some follow-up mapping in the Milpoc claim area. Both are situated in the southwestern part of the Sombrero Project, aiming to identify and refine sources for several previously noted anomalous stream sediment catchments, Coppernico said.
Surface exploration at the Macha Machay claim area has uncovered two distinct hydrothermal alteration systems affecting the Miocene-aged volcanic rocks. Macha Machay West is characterized by an area of argillic alteration and weak silica veining associated with a rhyolite dome (approximately 500 meters by 300 meters) overprinting the volcanic rocks, the company said. Jasperoid and pyrite veining are also present in the vicinity.
Macha Machay East mapping has identified a large area (approximately 4 kilometers by 1 kilometer) of disseminated pyrite linked with moderate argillic alteration, weak silicification, and jasperoid veining, according to the release. Initial, widely spaced rock sampling revealed multi-element anomalies in tellurium, bismuth, selenium, molybdenum, arsenic, and copper.
Milpoc Surface Also Mapped
Limited recent mapping was also conducted at Milpoc due to its proximity to Macha Machay, prompting a review of historical data. The Milpoc target is located approximately 5 kilometers north of the Macha Machay East prospect and about 7 kilometers south of the Tipicancha target, the company said.
Milpoc is characterized by sporadic copper oxide (CuOx) occurring along fracture surfaces and bedding planes, hosted within basement rock units beneath the Miocene volcanics. Notably, the Ferrobamba limestone, also present at the Fierrazo target where copper skarn mineralization has been identified, is found within the Milpoc claim area, further enhancing its geological significance, Coppernico said.
Rock sampling at Milpoc in 2018 and 2019 returned copper values ranging from 0.1% to 8.45% and silver values between 0.06 g/t to 101 g/t, according to the company. The CuOx mineralization is characterized by elevated concentrations of silver, arsenic, bismuth, copper, molybdenum, lead, selenium, and tellurium. Coppernico has recently resumed mapping in the Milpoc claim area, which, along with planned future work, aims to further evaluate the Milpoc prospect and integrate the observed mineralization into the broader geological context.
"The opportunities we are finding in this highly underexplored land package continue to impress our team," Vice President of Exploration Tim Kingsley said. "Our systematic exploration efforts continue to uncover new mineralized hydrothermal systems and evidence of multiple mineralizing events. Follow-up work is ongoing to better understand the significance of the Macha Machay prospects and integrate them into our expanding pipeline of high-quality copper-gold targets."
Co. Reviewing Additional Projects
The company said in line with its strategy to focus on high-impact targets while maintaining financial discipline, it has relinquished 58 claim blocks totaling 50,099 hectares in the northern and southeastern parts of the project. These areas were deemed outside of Sombrero's core exploration focus, reducing the Sombrero Project land position to approximately 53,800 hectares. By concentrating exploration efforts in this area, Coppernico said it is better positioned to allocate exploration capital more efficiently across its high-priority targets, increase the likelihood of discovery, and eliminate holding costs associated with non-core claims.
As part of its project pipeline optimization strategy, the company said it is actively reviewing additional projects in the Americas for potential acquisition. The goal is to diversify its mineral property portfolio, potentially increase its exposure to other metals, and provide jurisdictional balance alongside its flagship Sombrero Project in Peru.
Analyst: Potential for Large Deposit at Sombrero
Steven Therrien, an analyst with 3L Capital, highlighted in a May 14 research report that Coppernico has been busy generating new drill targets, in addition to previously identified highly prospective targets.
"The most obvious," the analyst noted, is Fierrazo. There, historical drilling returned significant intercepts comparable to Las Bambas, including 90.4 meters of 0.50% copper (Cu), 51 meters of 0.43% Cu and 116 meters of 0.42% Cu.
Two other targets are the area north of Chumpi, the highly prospective intrusive limestone contact, and Nioc. Surface grab samples from Nioc historically returned high grades, including 4.33% Cu and 2.11 g/t gold (Au), and 9.09% Cu and 5.88 g/t Au.
"We still firmly believe in the thesis and the potential for a large copper skarn deposit at Sombrero," Therrien wrote.
Industry Update: Consumers Might Face Higher Costs
Leading U.S. manufacturers of electrical wire are increasing prices shortly after President Donald Trump's unexpected decision to exempt basic copper imports from tariffs, Jack Farchy reported for Bloomberg on August 19.
This move indicates that American consumers might face higher costs, even though metal prices have dropped, he wrote. Southwire Co. LLC, a major producer of copper wire and cable in the U.S., along with Cerro Wire LLC, a wire manufacturer owned by Berkshire Hathaway Inc., have recently announced a 5% price hike across various copper wire products, according to a Bloomberg analysis of their published price lists.
The decision highlights how a select group of lesser-known companies that own U.S. copper-processing facilities are poised to benefit most from Trump's unexpected tariff exemption. The president's choice to impose a 50% import tariff solely on manufactured goods containing copper, such as wires and cables, rather than on unprocessed refined copper as many anticipated, means that companies like Southwire and Cerrowire will incur lower costs for the metal they purchase than they initially feared. Meanwhile, the import tariff on copper-containing products increases expenses for their international competitors exporting to the U.S. Until the U.S. expands its copper processing capacity, the additional cost on the vast quantities of copper-containing goods imported annually is expected to be inflationary for American consumers, despite a significant decline in domestic copper prices, analysts suggest, according to the report.
"While wire and cable prices are influenced by copper prices, they are not the same. The margin between the two can widen if local producers have more pricing power," Aisling Hubert, a senior wire and cable analyst at consultancy CRU Group, told Farchy.
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Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB;9l3:FSE)
The tariff gives U.S. producers an advantage in price negotiations with their customers, she noted. It remains uncertain whether the price increases were a direct consequence of the tariff decision, and it may take some time before the full market impact becomes evident, Farchy noted.
What is certain about the copper market, however, is that due to global electrification, demand for the red metal is continuing to grow. By 2035, copper demand is set to outpace new supply, the International Energy Agency told The Guardian on May 21. If nothing is done, supply will fall short by 30%.
Ownership and Share Structure
According to Refinitiv, six strategic entities own 15.3% of Coppernico Metals, including Teck Resources Ltd. (TECK:TSX; TECK:NYSE) with 9.9%. The CEO Bebek holds 3.7%, other directors and officers 1.7%, and the rest is in retail.
Coppernico has 177.3 million outstanding shares and 150.18 million free float traded shares. Its market cap is CA$31.91million. Its 52-week range is CA$0.12–0.54 per share.
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Disclosures From Coppernico Metals Inc.,
- Coppernico is solely responsible for the technical information herein about its Sombrero project, such disclosure having been reviewed by its qualified person Tim Kingsley, C.P.Geo.
- 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 Sombrero project), and third-party sources outside of both Coppernico Metals and Streetwise Report’s control.