What a Junior Hopes to Find Where Majors Such as ASARCO Once Mined World-Class Ore Deposits Like Naica and Santa Eulalia

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1. Disclosure for the quote from the Stewart Thomson article published on May 12, 2026

1. For the quoted article (published on May 12, 2026), Centenario Gold Corp. has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: Stewart Thomson was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Thomson is a retired Canadian financial advisor who has passed the Canadian Securities Course as well as additional technical analysis courses that were mandated by his former employer and approved by Ontario regulatory bodies. For the past 15 years, he has been editing and writing numerous financial newsletters that have a strong focus on charts.  The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

2. 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.

Centenario Gold Corp. (CTG:CSE) has begun its maiden drill program at the Los Reyes copper-moly-gold skarn project in Chihuahua, Mexico, targeting depth extensions of mineralization previously mined by ASARCO at the Jibosa and Tueda shafts.

Key Investor Takeaways

• Centenario Gold is an exploration-stage company focused on copper, gold, and silver projects in the Americas, with Los Reyes as its primary Mexican asset and an option on the Cabot copper-gold-cobalt project in Newfoundland.
• The current drill program directly tests depth potential below historic ASARCO-mined zones at Jibosa and Tueda shafts in a skarn system geologically analogous to major past producers.
• High-grade surface and underground samples (up to 27.9% Cu (copper) and 2.1% Mo (molybdenum)) from 2026 work support targeting extensions in an area with a history of significant base and precious metal output by larger operators.
• As a junior, Centenario aims to validate and expand on historical mining data using systematic modern drilling.
• Management emphasizes responsible exploration and community engagement in Mexico.
• Investors should monitor assay results from the ongoing program for indications of grade and continuity at depth.

Maiden Drilling Underway

The September 29, 2026, press release confirms the program is active, consisting of five to six holes totaling approximately 1,500 m (meters) at depths of 200 to 500 m. Targets focus on >100 m depth extensions of the high-grade Cu-Zn (zinc)-Ag (silver) skarn zone along the N-S trending mineralized corridor on the El Rey concession.

This follows May 2026 mapping and sampling of old mine dumps and underground workings, with results released June 10, 2026, including up to 27.9% Cu from a 1.3 m fracture zone sample 20 m underground at Jibosa and up to 2.1% Mo with anomalous Au (gold) at Tueda.

What a Junior Hopes to Find Where Majors Once Mined: ASARCO Shafts, Naica, and Santa Eulalia Context

Los Reyes is located within a long-established mining region of Chihuahua, Mexico, where skarn and carbonate replacement systems have supported mining for many years. The project sits within the broader Faja de Plata, a prolific polymetallic belt in north-central Mexico that includes major historic mining districts such as Santa Eulalia and Naica. Santa Eulalia has been mined since the early 18th century and hosts a range of mineralization styles, including skarns, carbonate replacement deposits, mantos, and chimneys containing Ag, Pb (lead), Zn, and Cu. Naica, meanwhile, was discovered in 1794 and eventually became a major Pb, Zn, and Ag operation. Industrias Penoles' history of Naica and geological descriptions of the Santa Eulalia district provide context for the broader mineral potential of the region.

Los Reyes itself also has a substantial mining history. Historical mining reportedly dates to the early 1700s, while ASARCO operated workings in the late 19th and early 20th centuries. Historical records cited by Centenario indicate that approximately 200,000 tons of Cu-Zn-Ag material were mined from the property during that period. The historical workings occur along an approximately 1 km (kilometer) north-south-trending contact between a granodiorite intrusive body and Cretaceous-age limestone and shale. That geological contact is significant because intrusive rocks interacting with carbonate-rich rocks can create favorable conditions for skarn and related replacement mineralization.

¹Technical analyst Stewart Thomson gave the company a "Speculative Buy" rating, with a short-term price target of CA$0.60 and a medium-term price target of CA$1.30.

Modern exploration has built on that historical foundation. In 2019, Valterra Resource Corp. (VQA:TSX.V) conducted geological mapping and surface sampling along approximately 800 m of the intrusive-limestone contact and completed a 2D/3D DCIP geophysical survey covering 4.8 line km.

The company reported copper mineralization in 22 of 28 samples that assayed above 1% Cu, with an average of 3.1% Cu among those samples and a maximum reported value of 5.9% Cu. Individual samples also returned Au, Ag, Mo, and Zn values. Because these were surface samples rather than drill intercepts, they do not establish the grade or continuity of a potential deposit, but they helped define targets for subsequent drilling. 

Centenario's 2026 exploration program is, therefore, testing more than an isolated surface anomaly. The company has been mapping and sampling the historical underground workings at Jibosa and Tueda while using those results to refine targets for its maiden drill program. 

For investors following Mexican Cu, Au, and polymetallic exploration, the broader story at Los Reyes spans a combination of historical production, a defined intrusive-carbonate geological setting, previous exploration, copper-rich surface sampling, and targets that remain to be tested. Centenario's current drilling is intended to determine whether the mineralization that supported historical mining represents a larger, continuous Cu-Au-Mo system beneath and along the historical workings. The drilling will ultimately provide a more direct test of that potential than historical workings or surface samples alone.

Copper Demand on the Rise

Volcanogenic massive sulfide (VMS) deposits are an important source of base and critical metals, including copper and zinc. According to the U.S. Geological Survey (USGS), copper is used extensively in electrical equipment, construction, transportation, and industrial machinery, while zinc is primarily used for galvanizing steel and in alloys. VMS deposits can contain multiple metals, with copper, zinc, lead, gold, and silver most commonly present.

Copper demand is expected to increase as electrification, data-center construction, power-grid investment, electric vehicles, and defense applications expand. A 2026 study from S&P Global projected that global copper demand will rise from approximately 28 million metric tons in 2025 to 42 million metric tons by 2040, an increase of about 50%. The study identified core economic activity and the energy transition as major sources of additional demand, while AI data centers and defense represent emerging demand drivers.

Supply growth remains a consideration as copper demand expands. S&P Global estimated that, without significant additions to global supply, the copper market could face a shortfall of approximately 10 million metric tons by 2040.

The study projected that mined copper production could peak around 2030 before declining as existing mines age, while recycled copper would cover only part of the additional demand.

Zinc is another important commodity associated with VMS systems, with demand tied largely to steel production and infrastructure. The International Lead and Zinc Study Group tracks global zinc mine production, refined zinc production, usage, and inventories, providing market data for the industrial metal. Zinc demand can, therefore, be influenced by construction, transportation, infrastructure investment, and broader industrial activity.

North American supply and critical-mineral considerations add another dimension for copper- and zinc-bearing deposits. The U.S. Geological Survey's 2026 Mineral Commodity Summaries estimated U.S. mine production of approximately 1 million metric tons of copper in 2025, compared with 1.05 million metric tons in 2024. The USGS also estimated U.S. refined copper production at approximately 850,000 metric tons in 2025. Copper was added to the U.S. critical minerals list in 2025.

Analyst Cites "Trend-Level Strength"

¹Technical analyst Stewart Thomson wrote about Centenario on May 12, 2026. Thomson wrote, "A possible uptrend is now in play. Short-term moving averages show a bullish cross to begin the year. Volume is becoming significant. OBV (on balance volume) shows trend-level strength."

At the time of writing, Thomson gave the company a "Speculative Buy" rating, with a short-term price target of CA$0.60 and a medium-term price target of CA$1.30.

Near-Term Catalysts Encompass Drilling

According to the company presentation, Centenario's goal is to continue drill testing and trenching in four untested EM anomalies and to complete near-surface step-out drilling to the north of the Cabot prospect for the development of a Phase 1 pit constrained resource shape.

Alain Charest, VP of Exploration at Centenario, told Streetwise Reports in an exclusive statement, "We are presently drilling the 1^st hole, we intend on cutting the core as we drill, so we should have our first samples sent to the Chemex preparation Lab facilities in the city of Chihuahua by the 10^th of October. We also plan to report the drill results every second or third week, in 2 or 3 tranches."

Then, looking to the company's future, Charest stated, "The Los Reyes drilling program is only the beginning. The newly revived, and well-funded, Centenario Gold Corp, although it intends to primarily focus on its two main projects in Mexico and in Canada, it will keep looking and evaluating other opportunities. A small, manageable market cap, good mineral projects, and a loyal shareholder base make funding an easy task."

Ownership & Share Information²

Centenario Gold Corp. has a market cap of CA$5.67 million, with 34.33 million shares outstanding. The company's 52-week range is CA$0.10-CA$0.47.

Insiders & Management own 5.69% of shares, while the remaining 94.31% of shares are held by Retail.

Frequently Asked Questions

Q: What is the scale of historical mining in the Naica and Santa Eulalia districts compared to Los Reyes?

A: Naica produced over 40 million tonnes of Pb-Zn-Ag ore through 2015 from skarn and chimney deposits; Santa Eulalia has yielded over 500 million ounces silver and nearly 6 million tonnes Pb-Zn since the 1700s. Los Reyes historical output was approximately 200,000 tons of Cu-Zn-Ag material by ASARCO, representing a much smaller footprint than the current program seeks to extend at depth.

Q: How does Centenario's approach differ from past major operators like ASARCO or Penoles?

A: Historical work focused on accessible near-surface and oxide zones; Centenario is using modern mapping, sampling, and drilling to test for deeper sulfide extensions and lateral continuity in the skarn system.

Q: Are there current peers or competitors active in the same Chihuahua corridor?

A: Historic producers such as Grupo Mexico (via IMMSA at Santa Eulalia) and Penoles-linked operations at Naica continue or have continued district-scale activities, providing geological and historical context for the Chihuahua mining region, though Centenario's Los Reyes is an independent early-stage exploration play.

Q: What are the next milestones after this drill program?

A: Results from the 1,500m program will inform potential follow-up work; the company continues to evaluate opportunities in Mexico and Canada.