Copper Samples Top 10% as Expanding Drill Campaign Targets Historic Mine Area

1.  James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQB) provided an exploration update from its 100%-owned Buen Retiro Copper Project near Copiapó, Chile, reporting channel sampling results from the historical Buen Retiro open pit and an update on drilling, metallurgical testing, and project development activities.

The company reported that 21 one-meter channel samples collected from locations throughout the historical open pit returned an average grade of 2.96% copper, with a maximum result of 10.68% copper. According to the company, 17 of the 21 samples returned grades above 1.0% copper, and four samples exceeded 5.0% copper.

In addition to the channel sampling program, Fitzroy reviewed historical drill data compiled by Pucobre S.A. and Ptolemy Mining Ltd. The company noted that historical drill hole BRT-DDH-013 intersected 7 meters grading 2.78% copper from 130 meters and 30 meters grading 3.52% copper from 141 meters downhole. The intervals are located approximately 30 to 55 meters below the current open pit floor.

Merlin Marr-Johnson, President and CEO of Fitzroy, stated in the news release, "Channel sample results averaging around 3.0% Cu and historical drill results of 30 meters at 3.52% Cu showcase the type of copper mineralization that Fitzroy is targeting in the Pit Area."

The company said drilling continues to intersect oxide and mixed oxide-sulphide copper mineralization. Three diamond drill rigs are currently operating at the project, with a reverse circulation rig scheduled to be added the following week.

Fitzroy reported that diamond drill hole BRT-DDH099, located 70 meters south of the historical open pit, intersected 113 meters of tenorite mineralization from 3.5 meters downhole. The intercept has been submitted directly for over-limit analysis because the company estimates the interval averages approximately 1.0% copper and may exceed regular exploration assay limits.

The company stated that 10,048 meters have been drilled at Buen Retiro during 2026. The original 7,000-meter drilling program was expanded to 10,000 meters after continued intersections of shallow mineralized material. An additional 5,000-meter drilling program focused on oxide and mixed mineralization within the historical pit area is underway.

Fitzroy also reported ongoing delays in assay turnaround times at ALS Global due to laboratory congestion and disruptions affecting shipments between Chile and Peru. To address the delays, samples from pit area drilling are being sent to SGS Laboratories in Santiago, Chile.

Metallurgical test work remains in progress. The company stated that mini-column test results are expected in July, while one-meter and three-meter column test work results are expected during the fourth quarter of 2026. The Fleet Space Technologies Ambient Noise Tomography passive seismic infill survey was completed in May, and the company said the results will be incorporated into ongoing work programs.

Copper Sector Commentary Points to Tight Supply Conditions

According to Mining & Metals coverage from BNamericas on June 11, Latin American mining activity continued to include investment, policy, and transaction developments across several commodities. The publication referenced "merger and acquisition transactions that are heating up mining in Latin America" and stated that "rare earths, copper, lithium, and iron ore" were among the commodities driving activity in the region. BNamericas also referenced "Mining Capex Growth Accelerates in 2026" and reported on new investment incentive measures in Argentina, including secondary legislation tied to the Rimi investment incentive regime and the addition of two mining projects to the RIGI for US$2.132 billion.

According to a June 15 market update from Couloir Capital, copper declined 0.9% during the week as stronger U.S. payroll data, rising Treasury yields, and concerns about tighter monetary policy weighed on industrial commodities. The report stated that "the macro headwinds overshadowed constructive supply-demand fundamentals."

The same update noted that several base metals faced pressure despite supply-related challenges. Couloir Capital wrote that zinc declined "despite tightening market conditions, including supply disruptions at major smelters, a narrowing global surplus, and expectations for a refined zinc deficit this year."

A June 16 report from Scotiabank's metals team described copper market fundamentals as tighter than many market participants had anticipated. According to the report, copper had "entered into a material multi-year net deficit position," while the supply side faced challenges because of the long timelines required to bring new mines into production.

Scotiabank increased its copper price forecasts and stated that "market conditions are ripe for a potential near-term upside price squeeze towards US$7.00/lb." The report also noted that global copper demand rose 3.7% last year, while China's copper demand increased 4.6% despite a weaker economic backdrop.

On the supply side, Scotiabank highlighted declining production growth and reduced industry investment. The report stated that Chile, the world's largest copper-producing nation, generated 5.42 million tonnes in 2025, down from a peak of 5.83 million tonnes in 2018. It also noted that planned growth capital expenditures of US$7.4 billion annually between 2026 and 2028 represented a 49% decline from the US$14.7 billion spent annually during the prior three-year period.

Looking at longer-term supply trends, Scotiabank wrote that it expected "very modest net supply growth" despite several large-scale mine developments moving through the pipeline. The report attributed this to declining grades and depletion at existing operations.

Scotiabank also identified several sources of future copper demand, including data center construction, defense spending, and rising global electricity consumption. The report stated that global copper demand has averaged 2.9% annual growth since 1960 and estimated that demand growth of approximately 1.9% annually would be required to keep the copper market balanced during the 2026-2028 period.

Third-Party Commentary Focuses on  Exploration Activity

In a May 4 commentary, Michael Ballanger of GGM Advisory Inc. wrote that he continued to view the copper market positively, stating, "I see no evidence of any disruption in the copper bull whatsoever, and continue to accumulate copper juniors with advanced exploration projects and established resources." He also noted that copper had "been grinding higher since it put in its low around CA$5.23 back in early February."

Ballanger discussed exploration activity at Fitzroy Minerals' Caballos project, referencing a 5-kilometer-wide anomaly identified through a helicopter-borne MobileMT airborne electromagnetic and magnetic survey. He wrote that an upcoming deep induced polarization survey was expected to determine whether the anomaly exhibited chargeability, which he described as a characteristic associated with sulphide-bearing porphyry copper systems.

Quoting an email alert regarding the survey process, Ballanger wrote, "I realize that this is a lot of information to absorb, especially for subscribers that are relatively new to the world of mineral exploration, but this IP survey will almost completely rule out other 'chargeable' materials, leaving the most likely material as 'sulphides'."

He added, "Given that Fitzroy has already identified copper-moly-gold sulphides on the fringes of the system, the odds are that any big chargeability anomaly will have Cu-Mo-Au in the sulphides mix." Ballanger further stated, "The IP survey will increase our odds of discovery, which is why I am telling you."

In a May 15 market update, Ballanger wrote that copper "remains the standout performer in the metals for the past few weeks" and noted that July copper had "eked out a modest 0.62% gain after hitting an all-time high at US$6.716/lb. on Wednesday."

According to Ballanger, copper's recent performance reflected both supply and demand factors. He wrote that severe supply constraints and speculative demand tied to artificial intelligence infrastructure had supported the market. Ballanger also cited disruptions in sulfuric acid supply, lower smelter processing fees, and production reductions, while pointing to demand from data center construction, electrification initiatives, and exports of copper-intensive clean technology products from China.

Ballanger also wrote that copper prices had "shrugged off" uncertainty related to tensions between Iran and the United States, adding that investors had shifted capital toward physical assets such as copper. He later stated, "The move to record highs in copper is a premonition of better days ahead for the red metal and all of the major producers and junior developers as well."

The commentary also referenced recent drilling results at Buen Retiro, including drill hole BRT-DDH059, which returned 78.0 meters grading 1.70% copper from 58.0 meters, including 40.0 meters grading 3.02% copper from 92.0 meters. Ballanger noted that the company's share price rose following the results and wrote that, "For a junior explorer, that is an exceptionally strong weekly performance and indicates the market is assigning increasing value to the Buen Retiro discovery."

On June 1, Ballanger discussed broader market conditions, the role of artificial intelligence-related investment activity, and implications for commodity markets, including copper. Ballanger wrote that copper was up 10.46% year to date and argued that commodities could benefit from long-term monetary and fiscal trends.

Within that discussion, Ballanger highlighted Fitzroy Minerals and its Buen Retiro project in Chile. He noted that the company announced on April 23 that it had signed a Letter of Intent with Chilean mining company Pucobre S.A. regarding Pucobre's intention to exercise its 30% clawback provision.

Ballanger quoted Fitzroy CEO Merlin Marr-Johnson, who stated: "The joint Letter of Intent is a major validation of the Buen Retiro Heap Leach project and is a win for both parties. Pucobre benefits by potentially securing production from the Buen Retiro Heap Leach to fill spare capacity at Planta Biocobre for many years, and thereby significantly improve operational economics by spreading fixed costs across more production units."

Ballanger wrote that Fitzroy's management has an economically viable oxide copper resource in Chile and said the company has emphasized that it is "explorers first and foremost." He noted that the company continues to pursue exploration opportunities at both Buen Retiro and Caballos in addition to the oxide material at Buen Retiro.

Discussing the agreement with Pucobre, Ballanger wrote that Fitzroy's management recognizes Pucobre's experience operating heap-leach oxide copper deposits in Chile and described the Letter of Intent as providing a clear path forward for the Buen Retiro Heap Leach project.

Ballanger also commented on seasonal trading patterns in the junior mining sector, writing that the market typically experiences summer slowdowns. He encouraged investors to monitor drilling progress and stated that individual companies could still generate significant interest through major drill results.

The commentary concluded with Ballanger expressing optimism for the second half of 2026, while continuing to monitor exploration and development activity across the junior mining sector.

Development Studies and Permitting Activities Advance at Buen Retiro

Fitzroy stated that drilling continues to support resource definition work and the Heap Leach Development Plan at Buen Retiro. The company said a reverse circulation rig will be added to the project, bringing the total number of active rigs to four.

The company plans to apply a data cut-off to resource drilling at the end of July. According to Fitzroy, this will allow time for assaying, modeling, integration of metallurgical results, and inclusion of data in a Project Development Plan. The company stated that the Project Development Plan will provide the basis for an Environmental Permit Application scheduled for October 2026.

Metallurgical test work is underway. Fitzroy reported that initial mini-column results are expected in July and will be incorporated into the Project Development Plan. One-meter and three-meter column test work results are expected in the fourth quarter of 2026 and are planned for inclusion in the Pre-Feasibility Study.

The company stated that the Pre-Feasibility Study remains on track for completion during the first quarter of 2027.

Fitzroy also reported that the Ambient Noise Tomography passive seismic infill survey completed in May identified zones of elevated fracturing and host-rock alteration. The company stated that these results will be integrated into its ongoing work and news-flow program.

In April, Fitzroy signed a Letter of Intent with Pucobre S.A. The company said engineering and commercial work related to the Heap Leach Development Plan continues, with data being shared between the parties through a two-way process. 

The company reported that assay results from current drilling are expected to be published in late June. Fitzroy also stated that its regular mid-month reporting schedule is expected to resume beginning in July.

Ownership and Share Structure¹

Fitzroy Minerals Inc. has a market cap of CA$152.46 million, with 327.87 million shares outstanding. The company's 52-week range is CA$0.24-CA$0.73.

Management and Insiders own 11% of shares, while Institutions own 2%. Strategic Investors own 25% of shares, and the remaining 62% of shares are held by Retail.