Copper Explorer Finds Excellent Skarn Potential in Peru

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Disclosures From Coppernico Metals Inc.:

1. 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.
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 Sombrero project), and third-party sources outside of both Coppernico Metals and Streetwise Report’s control.

Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB; 9l3:FSE) announced initial surface channel sampling results from the Nioc target area at its flagship Sombrero copper-gold project in Peru.

Highlights release through the company's wholly owned Peruvian subsidiary, Sombrero Minerales SAC, include 52 meters of 1.06% copper (Cu), 0.19 grams per tonne (g/t Au), and 1.20 g/t silver (Ag), as well as 36 meters of 1.10% Cu, 0.32 g/t Au, and 3.44 g/t Ag.

These findings provide an early glimpse into the high-grade copper-gold mineralization at Nioc and underscore the potential scale of a second major skarn system within the project, the company said.

"Sombrero is unique both in its large scale and grade and represents numerous tier one exploration opportunities as we continue to receive new impressive results across multiple targets within our significant claim holdings," said Chairman and Chief Executive Officer Ivan Bebek. "The results announced today were limited only to hard rock — outcropping rocks and the channel samples are open for considerable expansion over the multi square kilometer underlying geophysical footprint."

Bebek said the results significantly benefit the company's targeting and increase opportunities for discovery.

"As we advance our pending permits, we are developing a pipeline of tier one copper-gold skarn exploration targets," Bebek said. "We are looking forward to providing updates on permit and additional partnership with the communities in the region in the near term."

Highlights of the Sombrero results in Zone 1:

• Hole 25SRT029: 52 meters of 1.06% Cu, 0.19 g/t Au, and 1.20 g/t Ag
• Hole 25SRT030: 40 meters of 0.96% Cu, 0.13 g/t Au, and 0.96 g/t Ag
• Hole 25SRT032: 93.5 meters of 0.87% Cu, 0.19 g/t Au, and 0.60 g/t Ag

Highlights of the Sombrero results in Zone 2:

• Hole 25SRT040: 32 meters of 0.59% Cu, 0.23 g/t Au, and 1.44 g/t Ag
• Hole 25SRT042: 36 meters of 1.10% Cu, 0.32 g/t Au, and 3.44 g/t Ag
• Hole 25SRT043: 26 meters of 0.99% Cu, 0.40 g/t Au, and 3.11 g/t Ag

The exploration at Sombrero has maintained a record of being incident-free since its inception, the company also noted in its release.

Additionally, it was announced that Bebek will present at the upcoming Precious Metals Summit Beaver Creek Conference on Thursday, September 11, at 10:30 a.m. He will also participate in a series of additional conferences through early 2026, offering investors opportunities to engage directly with management.

Mineralization remains open, with boundaries in all directions yet to be defined, Coppernico said. The structural control on mineralization has not been assessed.

The channel samples lie directly over a large 1.8-kilometer- by 1.4-kilometer chargeability anomaly, suggesting continued sulfide mineralization at depth, the company said.

Co. Plans to Expand Exploration Work at Project

According to Coppernico's release, the channel samples were gathered from skarn-altered rock bodies that are exposed on the surface. This marks the first systematic sampling effort by Coppernico within the Nioc target area, one of several mineralized centers within an extensive skarn environment.

Coppernico said its geologists concentrated their sampling on two zones of outcropping garnet and magnetite skarn, which contain visible copper oxides and trace sulfides. These features are directly comparable to the mineralization observed at the Fierrazo target within the Ccascabamba target area to the south. The channel sampling program has identified multiple zones of copper-gold mineralization with undefined boundaries, establishing Nioc as a promising target for further exploration.

Additional channel sampling and mapping will be necessary to better determine the orientation and extent of mineralization.

The company said it plans to expand its surface exploration work at Nioc, including additional detailed mapping and channel sampling to further refine the geometry, scale, and continuity of mineralization and associated structures. These efforts will guide future drill targeting, which the company intends to commence at the earliest opportunity once a community agreement is achieved, to support the broader exploration strategy across the Sombrero Project.

"These maiden results from Nioc are further validation of the thesis of extensive district-scale mineralization at Sombrero," Vice President Exploration Tim Kingsley said. "With high-grade copper values directly above a large chargeability footprint, Nioc is shaping up to be a major target area alongside the adjacent Ccascabamba target area."

He continued, "This work at Nioc represents part of our ongoing efforts to advance a pipeline of large scale and high priority targets aiming to realize the full potential of the Sombrero Project."

Analysts: Results Promising for Project

The sampling results are very promising and considerably enhance the prospectivity of Nioc and the broader Sombrero project, according to analysts Mark Souvenir and Steven Therrien of 3L Capital in a research note update on September 4.

"If even a portion of the interpreted Zone 1 and 2 skarn bodies proves to be mineralized to depth, Nioc could represent a system measured in the hundreds of millions of tonnes. Layered on top of the established Fierrazo zone at Ccascabamba — where historical drilling already delivered broad copper-gold intercepts such as 116 meters at 0.42% Cu and 0.24 g/t Au or 90.4 meters at 0.48% Cu and 0.05 g/t Au — the emerging picture is one of multiple mineralized centers across Sombrero with scale potential."

The analysts also noted there are still many target areas with significant scale that have yet to be sampled or drilled.

The Catalyst: Fluctuating Copper Prices

Copper prices have experienced significant fluctuations this year. The price of the metal reached a high of US$5.24 per pound on March 26, before dropping to US$4.05 per pound due to global trade tensions, according to a report by Sachin Patel for Open Markets on September 3. It then rebounded, hitting a new record of US$5.69 per pound on July 8, following the announcement of a planned 50% tariff on copper imports to the U.S.

However, prices fell again when it was clarified that the tariff would only apply to semi-finished copper products, not ore or refined copper. In the short term, uncertainties about demand strength and geopolitical instability are creating challenges for copper. In the long run, the metal could face a significant supply-demand imbalance as production declines and demand — driven by its use in green energy infrastructure and artificial intelligence (AI) — continues to rise.

Copper is an incredibly versatile and recyclable metal, often regarded as one of the most essential materials for humanity, as highlighted in a report by Minerals Make Life. Its use dates back thousands of years, and its unique characteristics have made it indispensable in modern society. Notably, copper is among the few metals with antibacterial properties, making it ideal for medical applications. Its ability to be recycled multiple times also makes it an environmentally friendly choice. Copper's malleability allows it to be formed into thin wires without breaking, and its excellent electrical and thermal conductivity makes it crucial for electrical components across various industries worldwide. Applications such as smart devices, building wiring, telecommunications, and electronics account for about three-quarters of global copper consumption.

What has recently drawn attention — and what experts believe could lead to a supply shortage — is copper's vital role in our energy future. The United States, European Union, and many other governments have set net-zero emissions targets, aiming to achieve them by 2050 with technologies that heavily depend on copper. Electric vehicles and their batteries, along with solar and wind power, rely on this fundamental metal of electrification. While internal combustion engines use about 23 kilograms of copper, hybrid vehicles require double that amount, and all-electric vehicles nearly quadruple it.

According to S&P Global's "The Future of Copper" report, copper demand is expected to double by 2035 and continue to grow thereafter. Between now and 2030, the U.S. copper market is projected to expand at a 6% compound annual growth rate, according to Grand View Research. Specifically, revenue is anticipated to reach US$19.7 billion by 2030, up from US$14.4 billion in 2024.

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$29.26 million. Its 52-week range is CA$0.12–0.54 per share.