New Copper-Gold Hits Extend High-Grade VMS Zone Ahead of Prefeasibility Study

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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.

Emerita Resources Corp. (EMO:TSX.V; EMOTF:OTCQB; LLJA:FSE) reported new assay results from its ongoing drill program at the El Cura deposit, part of its wholly owned Iberian Belt West (IBW) Project in Spain. The update included multiple drill holes that intersected copper-gold-silver mineralization across several sections of the deposit, including the upper-central, eastern, and western zones.

The most notable result came from hole EC092, which returned 12.1 meters grading 1.6% copper, 0.85 grams per tonne (g/t) gold, and 32.11 g/t silver. Hole EC085 also reported 1.4 meters grading 5.8% copper, 4.89 g/t gold, and 51.0 g/t silver. Other intercepts included 1.8 meters grading 2.3% copper and 1.78 g/t gold in hole EC086, and 2.8 meters grading 0.7% copper and 1.31 g/t gold in hole EC087.

According to the company, the El Cura deposit currently extends approximately 650 meters along strike and 320 meters down dip. The deposit remains open down plunge to the west and up plunge to the east, supporting further exploration potential.

To date, 86 holes have been drilled at El Cura, with 74 returning mineralized intercepts. Emerita described El Cura as a steeply dipping, copper-gold-rich volcanogenic massive sulfide (VMS) deposit, which is expected to be included in its upcoming prefeasibility study (PFS).

Joaquin Merino, P.Geo., President of Emerita, commented, "The El Cura deposit continues to expand with very good grades of base metals and gold. The deposit has only been drilled to moderate depths, which allows us to cost-effectively continue to drill the deposit in sufficient detail to be classified primarily as measured and indicated resources, which provides conversion to reserve categories in the forthcoming prefeasibility study."

The IBW Project includes three VMS deposits — La Romanera, El Cura, and La Infanta — spanning 1,545 hectares. Prefeasibility studies are underway on all three zones. As of February 2025, Emerita reported an indicated resource of 18.96 million tonnes and an inferred resource of 6.8 million tonnes.

Copper Strength, Precious Metal Demand, and Inflation Hedges Shape Early 2026 Market Sentiment

On January 2, Frank Holmes reported that copper had closed 2025 at nearly US$12,600 per ton, a 45.6% increase since the start of the year. He described copper as "at the heart of the electrification boom," citing its key role in power grids, data centers, electric vehicles, and defense systems. Holmes also referenced a Goldman Sachs report that named copper its "favorite industrial metal," noting that nearly half of global copper demand is now tied to electrification. He added that Fitch forecasted demand growth of 2.0% to 2.5% for 2026, while UBS projected 3% growth for both 2025 and 2026.

On December 8, Clarus Securities analyst Varun Arora maintained a "Speculative Buy" rating on Emerita Resources Corp.

On January 4, Bloomberg AI noted that copper was "surging toward a record" amid growing concerns over global supply constraints. A strike at Chile's Mantoverde mine and potential U.S. tariffs were cited as key drivers. Analysts at China Securities Co. stated that "overall supply shortfalls, coupled with regional dislocation caused by U.S. tariffs, [were] propelling copper," and forecasted a global supply deficit exceeding 100,000 tons in 2026.

On January 5, Hormaz Fatakia turned attention to precious metals, noting that investors were again seeking safe-haven assets following an escalation in Venezuela. Gold futures rose 1% in early trading, and both gold and silver logged their strongest annual performance since 1979. The article also highlighted Venezuela's estimated 161 metric tonnes of gold reserves, valued at nearly US$22 billion at recent market prices.

On January 6, Nick Giambruno of The International Man described silver as both an industrial metal and a monetary hedge. He called silver "an industrial metal with a call option on inflation and monetary chaos," pointing out its smaller market size compared to gold. Giambruno emphasized that while silver is usually driven by industrial use, it tends to spike when inflation or financial instability drives demand for alternatives to fiat currency. "Silver's monetary demand tends to soar during periods of high inflation," he wrote. "As money floods in, the price surges."

Analyst Sees Compelling Value in Emerita Despite Legal Setback

On December 8, Clarus Securities analyst Varun Arora maintained a "Speculative Buy" rating on Emerita Resources Corp., while lowering the target price to US$1.50 per share from US$3.15. The revision followed a ruling from the Seville Provincial Court that acquitted all 16 defendants in the Aznalcollar criminal case. Arora noted that the market reaction had largely removed Aznalcollar from Emerita's valuation, despite the ruling affecting only the criminal case and not the ongoing civil dispute.

Arora described the IBW Project as a valuable standalone asset. He stated that more than 55% of life-of-mine revenue was expected to come from precious metals. Clarus's model projected an after-tax net present value (NPV) of CA$1.0 billion (US$767 million) at a 5% discount rate, based on an initial capital outlay of US$275 million. The plan includes average annual production of 220 million pounds of zinc-equivalent material over a 22-year mine life, with an all-in sustaining cost (AISC) of US$0.70 per payable pound.

The updated valuation excluded any contribution from Aznalcollar but retained upside in the event of a favorable administrative court decision. Arora noted that the criminal trial did not assess the legality of the Aznalcollar tender process, which remains under review in a separate civil proceeding.

Clarus also valued IBW's scale and upside potential. "IBW has a global resource of approximately 26 million tonnes at 9.8% zinc equivalent on an in-situ basis, including roughly 1.6 million ounces at 2 grams per tonne gold equivalent from gold and silver," Arora wrote. He noted the deposit remains open and includes 9 million tonnes of estimated resource not yet modeled but valued separately using in-situ metrics.

At the time of the report, Emerita was trading at just CA$0.02 per pound on an EV/resource basis and 0.16x price-to-NAV, compared to peer averages of CA$0.07 and 0.70x, respectively. Arora characterized the stock as oversold and pointed to re-rating catalysts, including an updated mineral resource estimate in Q1 2026, a prefeasibility study in June 2026, and a potential mining license approval later in the year.

Clarus's revised 12-month price target of US$1.50 was based on 0.5x IBW's NPV, adjusted for exploration upside, debt, and in-the-money warrants and options.

Steady Progression Toward Development Milestones

According to the investor presentation, Emerita has outlined several upcoming milestones at IBW. These include continued drilling at El Cura and La Romanera, an updated mineral resource estimate in late Q1 2026, and submission of a prefeasibility study by mid-year. The company noted that 86% of holes at El Cura have intersected mineralization to date.

The project has also been designated as strategically important by the Spanish government, enabling faster permitting. The Government of Andalusia has granted a 30-year renewable mining license and established a fast-tracked permitting task force.

Metallurgical testing has shown strong results, with copper recoveries of 92.7% and gold recoveries of 80.8% at El Cura. Emerita is using a cyanide-free leaching process (CLEVRTM) designed to improve metal recovery and produce non-acid-generating waste.

In Q1 2026, the company aims to complete public consultation for its Environmental Impact Study (AAU). A resolution in the Aznalcollar administrative case could also serve as a near-term catalyst.

Ownership and Share Structure¹

Management and insiders hold 5.32% of Emerita. Michael Lawrence Guy owns 1.45%, David Patrick Gower holds 1.3%, and Joaquin Merino-Marquez controls 1.04%.

Institutional ownership totals 1.12%, including Merk Investments LLC with a 0.99% stake.

The company has 289.12 million shares outstanding, with 248.80 million freely tradable. Emerita's market capitalization is CA$364.29 million, and shares have traded between CA$0.56 and CA$2.00 over the past 52 weeks.