Junior Explorer Uncovers Massive Copper-Gold Potential in Chile's Andean Belt
Contributed Opinion

1. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fitzroy Minerals Inc. and Grafton Resources Inc.
2. Michael Ballanger: I, or members of my immediate household or family, own securities of: Fitzroy Minerals Inc. and Grafton Resources Inc. My company has a financial relationship with: None. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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Michael Ballanger Disclosures

This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

Managed by the same group as Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQB) (The article on Fitzory can be seen here.), Grafton Resources Inc. (GFT:CSE; PMSXF:OTC) is primarily a junior exploration company with properties in Chile spearheaded by the Alicahue Copper Project located in the same Valparaiso region as FTZ's Caballos Project.

This project is located at an altitude of approximately 1,700 metres in the Andean Cordillera, just 140 km north of Santiago and 6 km from paved road access. The project covers 3,500 hectares of mining concessions in a northwest (NW) and southeast (SE) block. The area is surrounded by mining companies such as Newmont Corp. (NEM:NYSE; NGT:TSX; NEM:ASX), and Los Andies Copper (LA:TSX.V).

The project area has never been subjected to systematic copper exploration until recent years. The Vendors assessed the area for copper potential and used historical (BRGM) stream sediment anomalies as a starting point for systematic, traditional exploration. Values of up to 407 ppm Cu and 130 ppb Au in stream sediments are found in the area. Exploration work to date has included geological mapping and rock and soil geochemistry.

Based on the 1990s BRGM Stream-Sediment Survey copper and gold anomalies, soil sampling grids in the anomalous catchment areas were undertaken. The soil sampling identified sets of anomalies (> 300 ppm) at least 1.7 km long and 1.1 km wide in both the NW and in the SE blocks.

The main anomalies are still open to the north and the east.

Management considers Alicahue to host newly identified Cu-Au mineralization.

The project lies in the southern projection of the Paleogene metallogenic belt of Chile, which hosts large porphyries such as El Salvador, Escondida, and Chuquicamata.

This discovery could extend this fertile belt at least another 100 km to the south and open a new exploration frontier in Chile.

The combination of geology and geochemistry points to the potential for a Mapping in the NW block has identified mineralization that Grafton Resources believes has the potential for bulk, disseminated copper mineralization in the north and a high-grade Cu-Au-Ag IOCG-shear zone to the southwest.

In the SE block, Grafton Resources believes that there is potential for deeper porphyry-copper deposit formation, as indicated by the presence of UST textures, tourmaline breccia pipes, and epithermal veins.

Classic porphyry deposit.

• Issued Share Capital: 16,860,901 Warrants: 7,179,568
• Options: 700,000
• Fully Diluted: 24,740,469

With this enviable share structure, the stock is capitalized at a mere US$13.5 million with US$3m in cash. This gives it the opportunity to make further acquisitions without the egregious dilution that cripples other juniors that have to issue cheap paper to stay afloat while they await their turn in the junior mining cycle. GFT/PMSXF is fortunate to be launching itself at the exact point where the junior mining cycle has turned, giving it a huge advantage over the rest of the field.

There will be a flurry of corporate developments in the New Year, which I am certain will move the company to the top of the "must-own" ladder. For this reason, I am placing this company in second place on my list with a target price of US$3.00 ($75 million market cap) in 2026.

Note: Both Grafton and Fitzroy have commissioned a geophysical survey referred to as "Micromagnetic Tomography" ("MMT"), which is a laboratory-based technique used in paleomagnetism and rock magnetism research. It combines X-ray computed tomography (microCT) with high-resolution magnetic surface scanning to determine the individual magnetic moments and internal magnetization structure of single mineral grains within a rock sample.

This should be completed on the Caballos and Alicahue projects by the month's end, resulting in highly-enhanced drill targets to be explored immediately thereafter.