Explorer Confirms High-Potential Copper Discovery in Andes

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Disclosures From Coppernico Metals Inc.,  

1. Coppernico is solely responsible for the technical information herein about its Ccascabamba 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 Ccascabamba project), and third-party sources outside of both Coppernico Metals and Streetwise Report’s control. 

Coppernico Metals Inc. (COPR:TSX; CPPMF:OTCQB) has announced final assay results from its Phase 1 diamond drill program at the Sombrero Project in Peru. Conducted through its subsidiary, Sombrero Minerales SAC, the 20-hole campaign totaled 8,232.9 meters and focused on the Ccascabamba target area. The program successfully confirmed the presence of a large-scale copper-gold skarn system, with mineralization and alteration zones pointing to further potential well beyond the currently permitted area.

The company reported copper-gold mineralization across broad intervals in multiple holes. Highlights included 9.85 meters of 0.26% copper and 0.46 g/t gold in hole 25SOM-013, and 21.85 meters of 0.22% copper in hole 25SOM-018. Drill holes also confirmed a robust intrusive igneous rock architecture, zonation and controls, key indicators of skarn systems, particularly at the Hojota area, where mineralized zones of over 30 meters showed lateral continuity of approximately one kilometer with significant vertical continuity. 

"These early drill results confirm our belief that we are only beginning to unlock the value of this largely underexplored, yet highly promising, land package," said Ivan Bebek, Chair and CEO of Coppernico, in a company news release. 

Tim Kingsley, Vice President of Exploration, noted that mineralized alteration at Ccascabamba extended over 300 meters from the intrusion-limestone contact and continuity of more than 400 meters vertically. He added, "These early indications confirm the presence of a large-scale system, comparable to some of Peru's most prominent porphyry-skarn deposits, such as Antamina and Las Bambas." 

While drilling is temporarily paused to conserve cash and allow for expanded permitting, the company is progressing with regional exploration. This includes the identification of new skarn, epithermal, and porphyry targets at Nioc, Antapampa, Tipicancha, Macha Machay, and Cello. At Antapampa, fieldwork has identified skarn-style alteration similar to the mineralization at Nioc, suggesting the possibility of a new intrusive center or major extension of existing systems. 

At Tipicancha, the company is defining alteration and geochemical zonation that is likely to represent the lower portion of an epithermal system transitioning vertically towards a porphyry environment. Significantly, Tipicancha is a geologically distinct and younger system than the nearby Eocene-aged porphyry-skarn centers at Ccascabamba, Nioc, and Good Lucky. The alteration and associated porphyritic dikes at Tipicancha cross-cut young volcanic rocks, the same units that overlie known skarn mineralization elsewhere on the property.  This target highlights the the potential for multiple mineralization events within the company's large land package and the significant exploration potential on the property which the company is beginning to reveal with a growing pipeline of targets. 

The company also confirmed that high-priority targets remain untested due to permit boundaries. While additional drill permits are in progress to expand access, the exploration team is focusing on interpreting geophysical data and refining targets across the project area. 

Coppernico's Phase 1 program was funded through a US$19.37 million financing, including US$8.77 million from Teck Resources. The company is fully permitted for 49 drill holes from 38 pads at Ccascabamba and holds a social access agreement in place for the region. Drill core analysis and quality assurance protocols were performed by ALS Labs in Lima, with results indicating good overall accuracy and precision. 

Copper Sector Remained Tight as Trade Dynamics Reshaped Market Conditions 

Copper prices continued to rise in May, driven by a convergence of supply constraints, geopolitical shifts, and sustained Chinese demand. According to a May 6 summary from UN Trade and Development (UNCTAD), copper demand was projected to rise 40 percent by 2040 due to clean energy and digital expansion. UNCTAD estimated that meeting this demand would require over 10 million additional tonnes of copper and as much as US$250 billion in investment. The report added that even with this level of spending, challenges such as supply limitations, declining ore grades, and geopolitical risks remained significant. 

On May 9, Mining.com reported that copper stockpiles on the Shanghai Futures Exchange (SHFE) had declined 10 percent since the end of April, continuing a trend that included a 32 percent plunge the week before. The Yangshan copper premium rose to US$102 per tonne, the highest level since December 2023, reflecting strong import demand in China. Meanwhile, copper for July delivery on the COMEX rose 3 percent to US$4.74 per pound. A trader quoted by Bloomberg explained that most downstream fabricators had already taken delivery in April, which helped moderate fears of a sudden price spike. 

In a separate report published May 9, Ahead of the Herd explained that copper prices had risen to US$4.62 per pound, up 5% from the April 8 trough. The article cited easing geopolitical tensions -including temporary ceasefires in Ukraine and Yemen - as contributing to a rebound in both copper prices and global equities. Strong Chinese buying was also identified as a key factor, with Bloomberg reporting a 25 percent increase in grid investment and a 60 percent rise in equipment spending during the first quarter. Demand from sectors such as air conditioning and electric vehicle manufacturing was also highlighted. 

The article referenced comments from a trader at Zijin Mining Investment Shanghai Co., who said, "Demand growth for copper has been running at double-digits this year, a pace which cannot continue." Nonetheless, the rapid drawdown in warehouse inventories in April, which was down 136,000 tonnes for the largest four-week decrease on record, was attributed to opportunistic Chinese buying when prices briefly dipped. 

Further complicating supply dynamics, the article cited research from the University of Michigan and Cornell University indicating that global copper production would not be able to meet projected policy-driven demand. "We show in the paper that the amount of copper needed is essentially impossible for mining companies to produce," said co-author Adam Simon. Additional commentary from Visual Capitalist emphasized that copper requires more new supply than any other transition metal, estimating that 61 new mines would be needed by 2030 to meet net-zero goals. 

These conditions contributed to a tightening copper market with elevated prices and supply risks. According to Stockhead Mining, even with new mine projects in development, bottlenecks in refining capacity - particularly in the United States - suggested that existing infrastructure may be insufficient to process domestic output. Benchmark noted that smelting limitations, not just mining, were "an important bottleneck" for the copper supply chain in North America. 

Target-Rich Terrain and Next Steps for Sombrero

Looking ahead, Coppernico is leveraging the results of Phase 1 drilling to guide systematic exploration across its approximately 100,000-hectare Sombrero land position. According to the company's May 2025 investor presentation, the project is viewed as a direct analogue to major Peruvian copper mines, including Las Bambas and Antapaccay, based on scale, mineralization style, type of rocks, and geological age. 

Key milestones reached in 2024 included the TSX listing under the symbol "COPR," the commencement of Phase 1 drilling, and the securing of strategic financing and board expertise. With regional mapping and sampling underway, the company is actively developing a pipeline of advanced targets, including, Macha Machay, Milpoc, Cello, Tipicancha and Antapampa, in addition to the Ccascabamba and Nioc target areas. 

The Sombrero Project includes a series of erosional windows along the western extension of the Andahuaylas-Yauri belt, in an area that had previously gone undrilled for copper-gold. The company's technical team believes that multiple overlapping chargeability and magnetic anomalies along a 10-kilometer trend support the potential for several large-scale discoveries. 

Expanded permitting efforts are ongoing to access high-priority targets like Chumpi and Fierrazo. Coppernico has indicated that future drill phases will aim to test these robust outcropping areas more comprehensively.

With over 20 years of exploration and community collaboration experience in Peru, Coppernico's team has also prioritized stakeholder engagement. The company has supported government-funded agricultural programs, including a weaving initiative and lamb breeding project, which have impacted over 800 people in the region. 

Coppernico states that its exploration approach is strategic, disciplined, and rooted in environmental and community responsibility. The company's funding through 2025, combined with the expansion of permits being underway and promising technical indicators, sets the stage for a busy second half of the year as it works to define the full extent of the Sombrero copper-gold system. 

Ownership and Share Structure 

According to Refinitiv, six strategic entities own 15.08% of Coppernico Metals. Teck Resources own 9.9%, Newmont 6.28%, Coppernico CEO Ivan Bebek 3.45%, and other Directors and Officers 1.6%. Institutional ownership amounts to 17.75%, and the rest is in retail. 

The Canadian explorer has 177.3 million (177.3M) outstanding shares and 150.56M free float traded shares. 

Its market cap is CA$22M. Its 52-week trading range is CA$0.12−CA$0.54 per share.