Machine Learning Identifies 9 Untested Copper Targets in Chile as 5,000-Meter Drilling Program Begins

Important Disclosures:

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.
2. 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.

Key Investor Takeaways

• Nine New Copper Exploration Targets Identified: Fitzroy Minerals Inc. identified nine previously untested copper exploration targets at its Buen Retiro Copper Project in Chile using machine learning and three-dimensional seismic imaging.
• Machine Learning-Driven Exploration Combines Extensive Geological Data: The targeting study, completed with Fleet Space Technologies, incorporated approximately 24,400 copper assays from 140 drill holes alongside geophysical surveys and geological models to identify prospective areas within 400 meters of the surface.
• 5,000-Meter Copper Drilling Program Underway: Fitzroy commenced a combined diamond and reverse circulation drilling program to investigate the newly identified targets, with drilling results also being used to update and refine its machine-learning model.
• Copper Development Milestones Scheduled Through 2027: Fitzroy's plans included a maiden Mineral Resource Estimate and Preliminary Economic Assessment in Q4 2026, final metallurgical testing in Q1 2027, and a Pre-Feasibility Study in Q2 2027. The company identified 2028 as its production target for Buen Retiro.
• Additional Copper Exploration Planned at Caballos: Fitzroy outlined a separate 5,500-meter drilling program at its Caballos copper-gold-molybdenum project in Chile, with Phase 2 drilling scheduled to begin in Q4 2026.
• Global Copper Supply Constraints Remain in Focus: Industry research cited a potential requirement for approximately US$332 billion in new copper supply investment by 2050, while demand from electrification, electrical infrastructure, and industrial applications remained central to the sector outlook.

Machine Learning Identifies Nine Untested Copper Exploration Targets in Chile

Fitzroy Minerals Inc. (FTZ:TSX.V; FTZFF:OTCQX; C3Y:FSE) announced on October 22 the results of an integrated seismic and machine-learning targeting study completed with Fleet Space Technologies at the Buen Retiro Copper Project near Copiapó, Chile. The study identified nine previously untested exploration targets within approximately 400 meters of the surface, using geological, geophysical, and drilling data to identify areas with characteristics similar to those hosting known copper mineralization at the property.

The study combined Fleet's three-dimensional Ambient Noise Tomography (ANT) data with Fitzroy's existing geophysical surveys, geological models, and approximately 24,400 copper assays from 140 drill holes. The resulting machine-learning model generated a ranked portfolio of nine exploration domains based on similarities between subsurface characteristics and the geological signatures associated with Buen Retiro's existing copper mineralization.

Fleet's work began with a regional ANT survey commissioned by Fitzroy in early 2026. The survey used natural seismic noise to create a three-dimensional representation of the geology beneath the project, identifying structures and zones associated with alteration and brecciation at depth. A subsequent higher-resolution infill survey provided additional information about faults and fractures interpreted to control permeability corridors and associated mineralization.

The regional and infill surveys mapped geological features beyond the depths of existing drilling, providing a subsurface framework extending approximately 400 meters below the surface. The company said the imaging also covered areas toward its 100%-owned Sierra Fritis properties to the east. An extensive alluvial gravel cover across the area has complicated conventional surface geological mapping and exploration target generation.

The machine-learning study incorporated four geophysical datasets alongside geological information and historical copper assays. ANT shear-wave velocity measurements provided information about fracturing and alteration, while induced polarization chargeability data identified responses associated with disseminated sulphide minerals. Induced polarization resistivity measurements distinguished clay alteration from resistant intrusive rock, and magnetic susceptibility data provided information about magnetite-rich zones. Copper assays from existing drill holes were used to train and calibrate the model.

The targeting methodology used relationships between the geophysical datasets and existing copper assays to estimate areas where copper mineralization above a 0.5% threshold might occur within 25-meter blocks. The model also assigned uncertainty values to individual blocks. Fitzroy emphasized that the 0.5% copper threshold was used to visually identify blocks meeting the target criteria and did not represent a uniform estimate of copper grade across those blocks.

The selection process excluded previously mined areas and locations within 200 meters of existing drill holes. The remaining blocks were grouped into nine geographic domains representing clusters with similar predicted responses and geological characteristics. These domains were ranked as conceptual exploration targets for further investigation.

Merlin Marr-Johnson, president and CEO of Fitzroy Minerals, discussed the geological characteristics of the property and the company's exploration approach in the October 22 news release.

"We believe Buen Retiro shares many of the geological characteristics of the major iron oxide copper-gold (IOCG) deposits at Candelaria and Mantoverde, yet the sulphide potential of the wider property has barely been tested," Marr-Johnson said.

He added, "By combining advanced 3D subsurface imaging with machine learning and our extensive drilling database, we can now identify and prioritize blind exploration targets beneath the gravel cover."

Fitzroy has begun a 5,000-meter drilling program using diamond and reverse circulation rigs to investigate the newly identified areas. The company and Fleet are reviewing drill orientations and sequencing for the nine targets. As drilling progresses, geological logs and assay results will be compared with the original model predictions and incorporated into subsequent updates.

The company stated that each drill hole will serve three purposes: testing an individual exploration target, improving or validating the machine-learning model, and providing additional information for subsequent drilling decisions. The machine-learning results are intended to complement the company's geological interpretation and conventional drill planning rather than replace those methods.

Fitzroy cautioned that the nine domains remain conceptual exploration targets and have not been tested by drilling. The identified characteristics do not establish the presence, grade, size, or continuity of copper mineralization. The company also noted that model reliability depends on the quality and coverage of the underlying information and generally decreases with greater distance from existing drill holes and increasing depth.

Dr. Scott Jobin-Bevans, an independent geological consultant and qualified person under National Instrument 43-101, reviewed and approved the technical information in the announcement and verified the underlying sampling, analytical, and test data.

Copper Market Balances Rising Demand With Global Supply Constraints

According to an October 21 report from Bezinga, the global copper industry faced growing concerns about the availability of supply as electrification, electrical grid upgrades, and artificial intelligence infrastructure contributed to demand. The report cited forecasts indicating that copper production and investment in new mining capacity remained central considerations for the industry's long-term outlook.

The report cited estimates from Morgan Stanley indicating a potential copper supply deficit of approximately 600,000 tonnes for the year, while J.P. Morgan projected a shortfall of approximately 330,000 tonnes. The International Copper Study Group had also revised its previous expectation of a surplus to a deficit.

Longer-term supply requirements were addressed through research from BloombergNEF, which estimated that approximately US$332 billion in investment in new copper supply would be required to address an anticipated shortfall of 20 million metric tons by 2050. The research identified an average development period of 17 years for a new mine, illustrating the extended timelines associated with bringing additional production capacity into operation.

The report also examined changes in the composition of copper demand. "Electrified transport is the fastest-growing copper application," BloombergNEF analysts wrote, while describing data centers as "a drop in the ocean for copper demand." The findings distinguished between the growth of electricity-intensive digital infrastructure and the broader contribution of transportation electrification to copper consumption.

Chile's production outlook was another focus of the report. BloombergNEF estimated that the country's copper output would decline from 5.8 million tonnes in 2026 to 4.8 million tonnes by 2050. The report also identified declining ore grades as a factor affecting the costs and operational requirements of existing copper mines.

In an October 5 newsletter, Ron Struthers of Struthers Resource Stock Report reiterated his Buy recommendation on Fitzroy.

Trading Economics reported on October 22 that copper futures had fallen toward US$6.40 per pound, reaching a five-week low amid a broader selloff in artificial intelligence stocks.

Despite the decline, copper had gained approximately 25.7% over the preceding year. The report identified data centers and power infrastructure as important sources of copper demand associated with the expansion of artificial intelligence.

The report also described uncertainty surrounding proposed U.S. tariffs on refined copper imports. Copper had reached record highs the previous month after traders redirected shipments into U.S. warehouses in anticipation of potential tariffs, reducing metal availability in other markets. Trading Economics noted that "supply concerns remain elevated" amid labor disputes and the possibility of strikes at major mining operations.

Copper's industrial applications remained broad, spanning construction, electronics, power generation, and renewable energy systems. Trading Economics identified Chile as the largest source of global mined copper and noted that the metal's price remained sensitive to industrial demand and economic conditions. Its production data showed Chilean copper output of 369,500 tonnes in August, compared with 403,420 tonnes in the preceding reporting period.

Newsletter Writers Examine Copper Project Milestones and Share Price Outlook

In a September 8 report, Michael Ballanger of GGM Advisory Inc. identified Fitzroy Minerals as his top investment pick and largest holding. Ballanger argued that the company's market valuation had not kept pace with developments at its Buen Retiro Copper Project in Chile. He pointed to upcoming project milestones as factors that could influence the company's valuation.

Ballanger estimated that Fitzroy could eventually reach a valuation of US$400 million to US$500 million, compared with approximately US$120 million when his report was published. That estimate represented roughly three to four times the company's valuation at the time. He also highlighted the Caballos copper-gold-molybdenum project, where drilling was expected to begin within 30 days of his report to investigate deep induced-polarization targets.

In an October 5 newsletter, Ron Struthers of Struthers Resource Stock Report reiterated his Buy recommendation on Fitzroy following additional exploration results from Buen Retiro. Struthers reported that 6,257,243 warrants and finders' warrants had been exercised at CA$0.25 per share, providing the company with approximately CA$1.56 million in proceeds. He suggested that the outstanding warrants had "probably held the stock back over the last couple of months."

Struthers also discussed recent copper drilling results, including an intersection of 30.5 meters grading 2.48% copper from surface. Referring to the warrant exercises and exploration results, he wrote, "With these out of the way and more good drill results like those announced today, the stock should move higher."

His assessment also addressed Fitzroy's development schedule, including a maiden Mineral Resource Estimate and Preliminary Economic Assessment planned for the fourth quarter of 2026 and a Pre-Feasibility Study targeted for the second quarter of 2027.

Turning to the company's share price, Struthers identified CA$0.48 as a technical threshold and outlined subsequent price levels he was monitoring.

"Once the stock breaks CA$0.48, it will probably quickly test CA$0.55. Next would be new highs," he wrote. At the time of writing this article, Fitzroy has broken that threshold and is currently trading at CA$0.49.

From Copper Exploration to Development: Upcoming Project Milestones

Fitzroy Minerals outlined a series of exploration, technical, permitting, and development milestones across its Buen Retiro and Caballos copper projects in its September 2026 corporate presentation. The company's work program covered activities extending from the third quarter of 2026 through the third quarter of 2027, alongside a stated production target of 2028 for Buen Retiro.

At Buen Retiro, the company identified heap leach exploration, baseline studies, and preliminary metallurgical testing among its third-quarter 2026 activities. Its technical work plan scheduled heap leach exploration across the third and fourth quarters of 2026, while baseline studies and metallurgy were also scheduled during that period. The project development plan included conventional and enhanced recovery heap leaching, followed by solvent extraction and electrowinning (SX/EW).

The September presentation identified several previously reported copper drill intercepts at Buen Retiro. These included 110 meters grading 1.94% copper in hole BRT-DDH022, 135 meters grading 0.73% copper in BRT-DDH006, and 78 meters grading 1.70% copper in BRT-DDH059. Fitzroy estimated that true widths represented approximately 75% of the reported downhole intervals.

The company's fourth-quarter 2026 schedule included a maiden mineral resource estimate (MRE) and preliminary economic assessment (PEA) for Buen Retiro. Engineering activities were also included in the technical work plan, with the PEA, MRE, and engineering work extending into the first quarter of 2027.

Environmental work formed another component of the Buen Retiro development schedule. The presentation identified submission of a Declaración de Impacto Ambiental (DIA) during the fourth quarter of 2026, followed by a permitting milestone in the third quarter of 2027.

Metallurgical testing was scheduled in stages, with preliminary metallurgy identified for the third quarter of 2026 and final metallurgical results targeted for the first quarter of 2027. These activities were listed separately from the mineral resource estimate and economic assessment work.

Fitzroy also scheduled an initial pre-feasibility study (PFS) for the second quarter of 2027. The company's development timetable placed financing and a final investment decision (FID) in the second and third quarters of 2027, with permitting also identified for the third quarter.

The presentation stated that Buen Retiro had a production target of 2028. Its development framework included conventional and enhanced recovery heap leaching and SX/EW processing, with a proposed production operation following the planned technical studies, financing, and permitting activities.

The company also described a potential ownership arrangement involving Pucobre. According to the presentation, Pucobre retains the right to acquire a 30% interest in the Buen Retiro option concessions by reimbursing 90% of eligible expenditures, subject to a minimum payment of US$10.2 million. Pucobre has indicated its intention to exercise the right after Fitzroy completes the option, anticipated in Q2 2027, although exercise is not guaranteed. The September presentation illustrated a potential 70% attributable interest for Fitzroy following such an arrangement.

Fitzroy's project page states that the signed letter of intent includes a firm offer for processing capacity representing a minimum of 80% of Planta Biocobre's nominal capacity of approximately 800 tonnes of cathode copper per month. It also described industrial water availability and an underutilized electrowinning tankhouse. The facility was identified as one of six underutilized plants within a 180-kilometer radius.

Fitzroy's 2026 plan included approximately 22,000 meters of exploration and resource-definition drilling at Buen Retiro. The presentation reported a treasury balance of CA$23.9 million, and separately identified potential proceeds from warrants and options. It also presented an approximately CA$20 million reimbursement figure associated with the Pucobre arrangement as a question rather than a confirmed payment.

The exploration of sulphide mineralization represented a separate Buen Retiro workstream. The company's technical schedule included Fleet ANT and artificial intelligence work during the third quarter of 2026, followed by sulphide exploration drilling extending from the third quarter of 2026 through the second quarter of 2027. The newly announced 5,000-meter drilling program provided a more recent operational update on the machine-learning targets at Buen Retiro.

At the Caballos Copper Project in Chile's Valparaiso region, Fitzroy identified a separate exploration program focused on a copper-molybdenum-gold-rhenium porphyry system. The September presentation described known copper, molybdenum, and gold mineralization associated with a large concealed geological system.

The Caballos property was described as containing mineralized breccias, porphyry material in clasts, and geophysical anomalies at approximately 2,000 meters elevation. The presentation also identified more than 14 kilometers of strike along the Pocuro Fault Zone and approximately 18,000 hectares of strategic licenses.

Fitzroy's Caballos exploration schedule included deep induced polarization geophysical work during the third quarter of 2026. A second phase of drilling was scheduled to begin in the fourth quarter of 2026 and continue into 2027. The company separately specified a 5,500-meter drilling program at Caballos for the fourth quarter of 2026.

The Caballos presentation also included a previously reported intercept from drill hole CAB-DDH001 of 200 meters grading 0.81% copper equivalent from a depth of 66 meters. Fitzroy stated that no metallurgical test work had been completed at the project and that its copper-equivalent calculations incorporated assumed recovery rates and trailing average metal prices.

Beyond Buen Retiro and Caballos, Fitzroy outlined work on additional projects in Chile. The technical schedule included tenure-related activities during the third quarter of 2026, followed by remote sensing, mapping, and sampling programs extending through the third quarter of 2027.

The company's stated development timetable, therefore, encompassed multiple separate activities: continued exploration drilling at Buen Retiro, metallurgical testing, a maiden mineral resource estimate, a preliminary economic assessment, environmental submissions, a pre-feasibility study, financing and permitting work, the Caballos drilling program, and exploration activities on additional Chilean properties. These milestones reflected the plans presented in September 2026, while the October 22 announcement documented the completion of the machine-learning targeting study and the commencement of drilling at Buen Retiro.

Ownership and Share Structure¹

Fitzroy Minerals Inc. has a market cap of approximately CA$173.19 million, with 342.39 million shares outstanding. The company's 52-week range is CA$0.27 to CA$0.73.

Institutions own 1.80% of shares, while strategic investors own 21.84%. Management and insiders own 9.05% of shares.

Frequently Asked Questions About Fitzroy Minerals

What did Fitzroy Minerals discover at the Buen Retiro Copper Project in Chile?

Fitzroy Minerals Inc. announced the identification of nine previously untested copper exploration targets at its Buen Retiro Copper Project near Copiapó, Chile, on October 22, 2026. The targets were generated through a machine-learning study conducted with Fleet Space Technologies. The study identified subsurface geological characteristics resembling those associated with known copper mineralization at Buen Retiro. The nine areas remained conceptual exploration targets, and drilling had not yet confirmed mineralization within them.

How is machine learning being used to discover copper deposits in Chile?

Fitzroy Minerals and Fleet Space Technologies used machine learning and three-dimensional Ambient Noise Tomography (ANT) to identify potential copper exploration targets beneath gravel-covered terrain. The system combined approximately 24,400 copper assays from 140 drill holes with geological models, induced polarization surveys, magnetic susceptibility measurements, and seismic imaging. The resulting model identified nine target areas within approximately 400 meters of the surface, providing information for the company's copper exploration drilling program.

Why are the nine new copper targets at Buen Retiro being investigated?

The nine exploration targets exhibited geological and geophysical characteristics similar to areas containing known copper mineralization at Buen Retiro. The machine-learning model identified areas that had not previously been drilled, excluding mined-out ground and locations within 200 meters of existing drill holes. Fitzroy planned to investigate these targets through drilling, although the model did not establish their copper grades, size, or continuity.

Has Fitzroy Minerals started drilling its new copper exploration targets?

Yes. Fitzroy Minerals announced that it had begun a 5,000-meter drilling program at Buen Retiro using diamond and reverse circulation drill rigs. The company and Fleet Space Technologies were reviewing drilling orientations and sequencing for the nine newly identified exploration areas. Geological logs and copper assay results from the program were also intended to update the machine-learning model and inform subsequent drilling decisions.

What are the latest high-grade copper drilling results from Fitzroy Minerals?

Fitzroy Minerals previously reported a copper intersection of 30.5 meters grading 2.48% copper from surface at Buen Retiro, a result highlighted by analyst Ron Struthers in October. The company's September presentation also identified historical drill intercepts of 110 meters grading 1.94% copper, 135 meters grading 0.73% copper, and 78 meters grading 1.70% copper. These results were separate from the nine newly identified machine-learning exploration targets.

Why is Chile important to global copper mining and exploration?

Chile was identified by Trading Economics as the world's largest source of mined copper. The country hosts major copper mining operations and exploration projects, including Fitzroy Minerals' Buen Retiro and Caballos properties. Industry research cited concerns about declining ore grades and projected Chilean copper production falling from 5.8 million tonnes in 2026 to 4.8 million tonnes by 2050.

What was the copper price in October 2026?

Trading Economics reported copper futures near US$6.40 per pound on October 22, following a decline to a five-week low. Despite the recent pullback, the metal had gained approximately 25.7% over the preceding year. The report associated the decline with weakness in artificial intelligence stocks and uncertainty surrounding proposed U.S. tariffs on refined copper imports.