First Two Holes at Montana Copper Project Hit Visible Sulfides Near Butte

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• Domestic Metals Corp. has completed the first two holes at its Smart Creek copper-gold-silver project in Montana and reported visible copper-zinc-silver sulfides in the core.
• The company said the first two holes contain significant carbonate replacement deposit-style alteration, though the continuity and geometry of the mineralized zones have yet to be established.
• First assay results are expected toward the end of November, and drilling is underway on the third hole.
• The holes target the Gold Coin Prospect, where historical Rio Tinto hole SMCR0022 returned 109.73 meters of 0.75% copper.
• Smart Creek is a joint venture with Rio Tinto, which holds 40%, and the company is running an up to 9,000-meter program on the project focusing on the Smart Creek target area.
• HoldCo Markets maintained its CA$0.75 price target in a September 8 note, saying the company could find higher grades than Rio Tinto's 2022 drill results.
• S&P Global projects global copper demand will rise 50% by 2040, with AI and data centers adding to demand.

Domestic Metals Corp. (DMCU:TSXV; DMCUF:OTCQB; 03E0:FSE) has completed the first two holes of its first diamond drill program at the Smart Creek copper-gold-silver project in Montana. The company reported visible copper-zinc-silver sulfides and alteration consistent with a carbonate replacement deposit (CRD) system.

According to the company's November 5 release, hole SMCR-26-001 was drilled to 456.29 meters and hole SMCR-26-002 to 654.40 meters, for a total of 1,110.69 meters. Drilling is now underway on hole SMCR-26-003.

"We are pleased and excited by the mineralization that we are seeing in drill core to date," said CEO and Director Gordon Neal. "The first two holes contain significant Carbonate Replacement Deposit style alteration."

The company has logged the core but has no assays yet. Core from the first hole has been sent to ALS in Reno, Nevada, and core from the second hole has been logged and is set to follow. The company expects first assay results toward the end of November.

In hole SMCR-26-001, Domestic logged calcareous siltstones with silicification, carbonate alteration, and calc-silicate replacement. Copper-zinc-silver mineralization appears in chalcopyrite-bearing quartz-carbonate veins and sulfide-rich fractures. The company noted copper near surface at 13.5 meters and 53.6 meters, sulfide intervals deeper in the hole, and possible tennantite, a copper mineral, at 342.65 meters.

Hole SMCR-26-002 cut strongly altered calcareous siltstones with oxidized copper near 15 to 16 meters. Deeper in the hole, the company logged hypogene chalcopyrite-pyrite-pyrrhotite-sphalerite mineralization between about 151 meters and 316 meters. That included semi-massive chalcopyrite-sphalerite at 316.3 meters. The company also identified scheelite, a tungsten mineral, at 126.1 meters.

Domestic said the observations are consistent with a carbonate-replacement-related hydrothermal system. It cautioned that the continuity and geometry of the mineralized zones have yet to be established.

The holes target CRD-style mineralization at the Gold Coin Prospect. Historical Rio Tinto hole SMCR0022 there returned 109.73 meters of 0.75% copper, including 89 meters of 0.97% copper. The company notes that mineralization on adjacent properties doesn't necessarily indicate mineralization on its own property.

Smart Creek covers about 8,000 hectares in the Maxville Mining District of Granite County. It lies about 50 kilometers northwest of the Butte Mine Complex, one of the best-known copper districts in the United States. Domestic acquired the project in August 2024. It is a joint venture with Rio Tinto Plc. (RIO:NYSE; RIO:LSE), which holds a 40% interest. The company is exploring for porphyry copper, copper-gold-silver carbonate replacement deposits, and skarn mineralization.

Rio Tinto drilled 26 of 40 permitted sites before Domestic took over the project, according to an August 6, 2026, release. Since then, Domestic has reported surface samples at the Sunrise target of up to 102 grams per tonne (g/t) gold, 23.1% copper, and 3,810 g/t silver. An induced polarization (IP) geophysical survey in 2026 identified anomalies north and south of the Sunrise Mine that the company ranks as top-priority targets.

HoldCo Markets maintained its CA$0.75 12-month price target on Domestic Metals.

"This program represents the culmination of nearly two years of systematic exploration at Smart Creek," Neal said ahead of drilling.

When drilling began on September 8, Domestic outlined a program of up to 9,000 meters in an estimated six to eight holes, with three holes planned at the Smart Creek target followed by four at the Sunrise Mine target. Neal said at the time that rig availability had pushed the start back several weeks. In its November 5 update, the company said drilling will remain focused on the Smart Creek target area for now.

From there, the company said it aims to extend the Gold Coin zone, test possible links to a porphyry copper-molybdenum system, and explore new targets at Smart Creek, Sunrise, and Radio Tower.

Neal will present at the Munich Mining Conference on November 6–7, the Swiss Mining Institute in Zurich on November 18–19, and 121 Mining Investment and the Global Mining Finance Autumn Conference, both in London, later in the month.

HoldCo Markets maintained its CA$0.75 12-month price target on Domestic Metals in a November 5 Research Spotlight note on the drilling update. The firm noted that core from the first two holes contains significant carbonate replacement deposit-style alteration, with copper oxides visible in core images from both holes. HoldCo said the CA$3.5 million budget for the up to 9,000-meter program "would almost ensure that the 60% earn-in terms with Rio Tinto (RIO) will have been met by program-end."

HoldCo said management is aiming to vector toward the center of the copper porphyry, which "might yield assay results surpassing the impressive 109m grading 0.75% Cu that Rio Tinto attained on site in 2022."

It added, "One can speculate that if successful, an intercept upwards of 150m grading 1.5% Cu at Smart Creek wouldn't sound unrealistic." The firm compared the setup to Hercules Metals, which it said re-rated after a 185-meter intercept grading 0.84% copper.

HoldCo called its target "arguably still on the conservative side" and said, "the risk would certainly be on the upside for a successful drilling campaign."

The buildout of artificial intelligence (AI) is adding a new layer of demand to a copper market that is already struggling to grow supply.

Data centers use a lot of copper. In a January 2025 analysis, BHP Group Ltd. (BHP:NYSE; BHPLF:OTCPK) cited a study of Microsoft's US$500 million data center in Chicago. It used 2,177 tonnes of copper, or about 27 tonnes for every megawatt of power. BHP estimated that copper use in data centers worldwide will grow sixfold by 2050, from about half a million tonnes a year to about 3 million tonnes.

Over the longer term, S&P Global projects that global copper demand will rise 50% by 2040, from 28 million tonnes in 2025 to 42 million tonnes, according to its Copper in the Age of AI report. It expects defense-driven demand to triple by 2040, and it warned of "a potential 10 million metric ton copper shortfall by 2040 without meaningful supply expansion."

Supply is already falling behind. Copper mine production among the 20 largest producers fell 2.5% year over year to 7 million tonnes in the first half of 2026, S&P Global reported during LME Week in October. Daria Efanova, head of research at Sucden Financial, said supply "cannot keep pace with demand from power grids, infrastructure, artificial intelligence."

She added that "the AI and data-center components are still further down the demand curve, but they are becoming increasingly prominent," and that her firm expects "deficits to start expanding from 2028 onward."

Physical demand is also showing up in the market. On October 27, the Yangshan premium, a gauge of China's appetite for imported copper, hit a nearly 13-year high, Reuters reported via Kitco. ING commodities strategist Ewa Manthey said copper demand is "expected to benefit from AI infrastructure expansion," and that the supply tightness "should continue to provide a floor under prices." Benchmark copper on the London Metal Exchange traded at about US$14,034 a tonne on November 3, Reuters reported. That was after it briefly touched its lowest level since August 19.

Gold, which Smart Creek also hosts, has been gaining as well. Spot gold climbed 1.49% to about US$4,119.50 an ounce on November 5 and earlier reached US$4,146.63, its highest level since October 20, Kitco News reported. Kitco said falling Treasury yields and softer labor costs supported the metal.

What has Domestic Metals found so far at Smart Creek?

The company has completed two holes totaling 1,110.69 meters and reported visible copper-zinc-silver sulfides. Hole SMCR-26-002 included semi-massive chalcopyrite-sphalerite at 316.3 meters. Domestic said the observations are consistent with a carbonate replacement deposit system.

When will assay results be released?

Core from the first hole has been sent to ALS in Reno, Nevada, and core from the second hole is set to follow. The company expects first assay results toward the end of November.

What is the Gold Coin Prospect?

Gold Coin is the target of the current drilling. A historical Rio Tinto hole there, SMCR0022, returned 109.73 meters of 0.75% copper, including 89 meters of 0.97% copper.

What is Rio Tinto's role in the project?

Smart Creek is a joint venture with Rio Tinto, which holds a 40% interest. Rio Tinto drilled 26 of 40 permitted sites before Domestic took over the project in August 2024.

How large is the drill program, and is it funded?

The program calls for up to 9,000 meters in an estimated six to eight holes. It begins at the Smart Creek target and then moves to the Sunrise Mine target. The company said it is fully funded from its existing treasury.

Where is Smart Creek located?

The project covers about 8,000 hectares in the Maxville Mining District of Granite County, Montana, about 50 kilometers northwest of the Butte Mine Complex.

What do analysts say about Domestic Metals?

HoldCo Markets maintained its CA$0.75 price target. The firm said Domestic is the sixth company to drill Smart Creek, giving it a large historical database, and that it could find higher grades than Rio Tinto's 2022 drill results.

Why does copper demand matter for the project?

AI data centers use large amounts of copper. BHP estimates that copper use in data centers will grow sixfold by 2050, and S&P Global warns of a potential 10 million tonne copper shortfall by 2040 without meaningful new supply.

Ownership percentages, named holders, share count, market capitalization, and the 52-week range for Domestic Metals were compiled from the company's public filings and investor materials, exchange notices, insider-trade reports (SEDI / equivalent), and third-party data providers. Figures are as of 2026-10-30 unless a source was dated earlier. Pie slices are normalized to 100% of basic shares outstanding; retail is the residual after disclosed institutions, management, insiders, and strategic holders. Warrant terms are current outstanding series only. Restructures are historical consolidations, splits, and symbol or name changes. Insider buying and selling covers open-market trades from 2026-04-30 through 2026-10-30 and excludes option exercises. These are public-source estimates and can differ from a later official register.