Figure 1: Current Sombrero footprint covers approximately 57,000 ha.
Ivan Bebek, Chair and CEO of Coppernico, commented, "In the past nine years exploring the Sombrero district, we have both rationalized and acquired ground that we continue to explore with the thesis that we have extended the Andahuaylas-Yauri belt to the west. We are pleased to have secured these strategic concessions prior to the commencement of drilling at our adjacent Tipicancha target, where we are currently in the process of seeking drilling permits."
Terms of the Horizonte Concessions Option Agreement
The option agreement is between the arms-length owner of the concessions covering the 600 ha, Exploraciones Horizonte Gold S.A.C. (the "Optionor") and the Company's wholly-owned subsidiary, Sombrero Minerales S.A.C. The subsidiary has been granted immediate rights to conduct exploration activities on the Horizonte Concessions and may purchase them by completing US$3.0 million in staged work expenditures over a five-year period and making total payments of US$2.0 million. The agreement provides Coppernico with full operational control of the concessions during the option period, allowing the Company to advance exploration programs, including geophysical surveys and drilling.
If the option is exercised, the Optionor will retain a 1% net smelter return ("NSR") royalty on future production. Coppernico retains the right to reduce the NSR to 0.5% at any time within 10 years of the NSR being established, through a one-time payment of US$1.0 million.
The Horizonte Concessions are currently in good standing, with no known encumbrances or environmental liabilities, and all required payments have been maintained. Coppernico intends to commence initial exploration activities in the near term.
Figure 2: Map of the greater Tipicancha target area showing Coppernico concessions and newly optioned Horizonte Concessions with surface sample and drill hole locations.
Tipicancha Target and Project Expansion
Tipicancha is a large-scale copper-gold target defined by an approximately 2 kilometre ("km") by 1 km advanced-argillic lithocap developed in andesitic volcanics, characterized by alunite-kaolinite and variable silica alteration. Within this footprint, localized exposures of massive to semi-massive pyrite breccias have returned significant copper ("Cu") values in surface channel sampling, including 22 metres ("m") of 0.65% Cu, including 10 m of 1.14% Cu (true widths unknown; see news release dated May 21, 2025). This style of copper-bearing breccia is commonly interpreted as evidence of leakage from a fertile porphyry system at depth, making Tipicancha a compelling high-impact target.
The newly added concessions are strategically positioned immediately to the south of the Tipicancha target, expanding Coppernico's ground coverage over a zone of altered volcanic rocks consistent with higher levels and/or lower temperature expressions of lithocap alteration. Within the Horizonte Concessions, located approximately 2.5 km south of Tipicancha, is an area that was subject to a condensed historical exploration program by Minera del Suroeste S.A.C. between 2006 and 2007 as part of a joint venture with Newmont. This historical work included approximately 1:10,000-scale geological mapping, surface rock sampling, and the completion of three short reverse-circulation ("RC") drill holes. Mapping documented advanced argillic alteration assemblages including silica-alunite alteration, vuggy silica, silica breccias and structurally controlled silicified zones, as well as steeply dipping to near-vertical gold-bearing structures identified at surface, consistent with the upper levels of a high-sulfidation epithermal system. Surface sampling defined a coherent geochemical footprint over an approximately 800 m by 500 m sample area, characterized by anomalous to locally high gold and silver values with strong associated arsenic, antimony and mercury anomalies. These datasets were subsequently compiled and interpreted in a 2009 academic thesis based on the Minera del Suroeste exploration program authored by Herrera Fernández, Helmut (2009).
The historical drill program comprised three near-vertical RC drill holes spaced approximately 260 m to 300 m apart, with total depths ranging from 89 m to 172 m. The drill holes intersected extensive hydrothermal alteration and locally anomalous gold values; however, mineralized intervals were short and the program did not effectively test the system at depth or along interpreted structural trends. Coppernico currently interprets these historical results to represent the upper, typically weakly mineralized portion of a vertically extensive hydrothermal system.
Recent geological mapping completed by Coppernico immediately to the north, at the broader Tipicancha target, provides an expanded and deeper erosional view into the system and demonstrates vertical and lateral alteration zonation consistent with a transition from high-sulfidation epithermal conditions toward the base of a lithocap, with potential for porphyry-related mineralization at depth. The Company considers these concessions to be at an early stage of exploration and strategically important for advancing a district-scale geological model and vectoring toward higher-potential mineralized zones within the Tipicancha system.
Table 1: Historical Surface Sampling Results from the Horizonte Concessions
Element (ppm)
Samples below detection limit
Median
Mean
P90
Max
Au
28
