Camino Minerals Near Producer Status with Construction Soon Underway at Chile's Puquios Copper Project

• Camino is advancing its Puquios copper project in Chile toward construction start in mid-2026, with debt financing negotiations underway with a Japanese lender targeting 70%+ project funding at competitive rates with no hedging requirements
• The company operates two projects - the construction-ready Puquios (50% owned, partnered with Nittetsu) and the exploration-stage Costa de Cobre in Peru (65% owned) - both targeting oxide copper deposits with sulfide expansion potential
• Puquios economics were modelled at $4.25/lb copper versus current prices above $6.00/lb, with updated capex at approximately $142 million and expected 78% recovery rates from SX-EW processing
• Costa de Cobre drilling program commenced with 28,000 meters completed to date, recent intercepts including 84 meters at approximately 1% copper, targeting 40-50 million ton resource similar to Puquios
• Key near-term catalysts include closing Japanese debt facility in the coming months, with a view to construction starting at Puquios (July 2026), and continued drilling results from Costa de Cobre's 220 square kilometer IOCG system

Camino Minerals Corporation (TSXV:COR) is positioning itself for a transition from junior explorer to copper producer at a pivotal moment in the copper market. With prices trading above $6.00 per pound and global supply constraints intensifying, the company is advancing two complementary assets: a near-construction development project in Chile and an expanding exploration play in Peru. CEO Jay Chmelauskus provided an update from the Costa de Cobre project site in Peru, outlining progress on both fronts and detailing the path toward production.

Puquios Development Project: Approaching Construction

The company's flagship Puquios project in Chile represents Camino's most immediate value driver. Located approximately 50 kilometers from Nittetsu's Arqueros mine in the Coquimbo region, Puquios is a 50/50 joint venture partnership that has completed feasibility studies and secured all necessary permits for construction.

Camino is currently in advanced negotiations with a Japanese lender to finance approximately 70% or more of the project's capital requirements. The CEO indicated the company was in Japan a month prior and expects to finalise the debt facility in the coming weeks to months. 

"We are on track to get a facility out of Japan with our partners in Nittetsu. What that would do is finance 70% of the project, maybe more, at Puquios in Chile, which means we could start putting shovels into the ground as early as July of this year."

The financing structure includes pledging Camino's 50% offtake allocation to the Japanese partner, providing economic benefits to the Japanese economy while securing favourable debt terms with no hedging requirements - a significant advantage in the current copper price environment.

Economic Framework at Current Copper Prices 

Puquios is designed as a solvent extraction-electrowinning (SX-EW) operation targeting oxide copper mineralisation in the supergene enriched zone above a deeper sulfide body. This approach represents the most capital-efficient method for developing a copper mine, with lower upfront investment compared to traditional sulfide processing.

The project's economics were modelled at $4.25 per pound copper, well below current market prices exceeding $6.00 per pound, providing a substantial margin cushion. Capital expenditure estimates have experienced some inflation, moving from approximately $125 million in 2021 to $142 million in the most recent update, though the CEO expects this to remain relatively stable pending detailed engineering results.

Metallurgical testing using large-scale column tests has established an expected recovery rate of 78% overall. The orebody's favourable geology - situated at the top of a mountain - results in a relatively low strip ratio, enhancing project economics. The company has secured water rights approximately three times operational requirements, providing flexibility for future expansion.

Path to Construction Start 

Camino has advanced several critical path elements since the beginning of 2026. The company has established on-ground presence in Chile with CEO and finance teams, opened office space at the project site, and initiated early earthworks. Detailed engineering has commenced with Ausenco, a tier-one engineering firm, and all construction permits are in place.

Chmelauskus emphasised that financing represents the final hurdle before construction commencement, with all other prerequisites satisfied. The proximity to Nittetsu's Arqueros operation provides operational synergies, as Camino plans to utilise some of the same contractors for the Puquios development.

Interview with Jay Chmelauskus, President & CEO of Camino Minerals

Costa de Cobre: Building the Second Mine

While advancing Puquios toward production, Camino is simultaneously expanding its Costa de Cobre (formerly Los Chapitos) project in Peru's Arequipa province. The project encompasses a 220 square kilometer land package along Peru's copper coast, approximately 500 kilometers south of Lima and 150 kilometers north of Mina Justa, one of the world's newest large-scale copper mines.

Drilling commenced approximately one week prior to the interview, building on 28,000 meters of previous drilling that has defined the main Adriana zone and identified several additional target areas. Recent drilling has produced encouraging results, with intercepts including 84 meters at approximately 1% copper and zones exceeding 2% copper.

The project is classified as an IOCG (Iron Oxide Copper Gold) system, similar in geological character to other significant deposits in the region. Chmelauskus noted, 

"We look at it as a very similar project to Puquios in terms of soluble copper. The size that we're drilling towards - we're targeting a size similar to Puquios, although there's every opportunity on projects like this, like Mina Justa, to make a major discovery."

Targeting Resource Scale Through Systematic Drilling 

Camino's exploration approach focuses on two parallel objectives: expanding the known Adriana zone into a mineable resource and conducting step-out drilling along the eight-kilometer Diva structural corridor to identify new discoveries. The company has completed step-out drilling at intervals of two to five kilometers along this structure, encountering copper zones that warrant follow-up work.

The target scale for Costa de Cobre is 40-50 million tons of oxide mineralisation to achieve critical mass similar to Puquios. The CEO indicated the project is approximately halfway toward this tonnage target based on current drilling results. Beyond the near-surface oxide potential, the project also exhibits characteristics suggesting deeper sulfide mineralisation, similar to other IOCG systems in the region that began as small oxide operations before discovering larger sulfide orebodies at depth.

Drilling to date has focused on relatively shallow targets to define oxide resources, but the company is beginning to incorporate deeper drilling to test sulfide potential with insights from partner Nittetsu. The company holds a 65% interest in Costa de Cobre, with plans for additional drilling campaigns later in 2026 pending permit approvals.

Market Position and Valuation Disconnect

Despite advancing two copper projects in a strong price environment, Camino trades at approximately CAD$50 million market capitalisation - a valuation more typical of junior explorer companies. The CEO acknowledged this disconnect, attributing it partly to the recent timing of the acquisition closing and the time required for markets to recognise the portfolio's value.

The company expects a rerating catalyst once the Japanese debt facility closes and construction commences at Puquios. Chmelauskus emphasised the rarity of companies successfully transitioning from exploration to production: 

"There's not many groups and companies that make that transition. So Camino is well positioned for that to happen in a matter of weeks and months."

Strategic Partnership with Nittetsu

The relationship with Nittetsu represents a strategic advantage for Camino. The partnership operates on a 50/50 basis at Puquios and 35% (Nittetsu) to 65% (Camino) at Costa de Cobre. Nittetsu's involvement provides technical expertise, access to Japanese financing markets, and operational synergies given their nearby Arqueros mine operation.

The CEO indicated ongoing discussions about expanding the partnership's scope, suggesting potential for deeper collaboration across both companies' project portfolios. This relationship provides Camino with a well-capitalised partner experienced in Chilean mining operations while maintaining majority control of the higher-risk, higher-reward exploration asset in Peru.

The Investment Thesis for Camino Minerals

• Near-term production catalyst: Puquios construction start expected mid-2026 following Japanese debt facility closure, transitioning company from explorer to producer status in matter of months
• Leveraged copper price exposure: Project economics modeled at $4.25/lb copper versus current $6+ prices provides substantial margin expansion potential without hedging requirements on debt
• Capital-efficient development model: SX-EW processing of oxide copper represents lowest capital intensity approach, with 70%+ debt financing minimising equity dilution for construction funding
• Dual asset diversification: Development-stage Puquios (Chile) provides production visibility while exploration-stage Costa de Cobre (Peru) offers discovery upside across 220 sq km IOCG system
• Strong jurisdictional positioning: Both projects located in established mining jurisdictions (Chile and Peru) with all Puquios permits secured and existing infrastructure supporting operations
• Strategic partnership benefits: Nittetsu relationship provides technical expertise, financing access, and operational synergies while Camino maintains majority control of higher-upside exploration asset
• Valuation disconnect opportunity: ~$50M market cap trades at junior explorer multiples despite near-construction asset with secured permits, creating potential rerating catalyst upon financing close
• Expansion optionality: Both projects exhibit oxide-to-sulfide transitions, providing pathway for production expansion beyond initial phases with limited additional land acquisition requirements
• Recent exploration momentum: Costa de Cobre drilling intersected 84m at ~1% copper with zones over 2%, demonstrating system scale potential across multiple target corridors
• Copper market tailwinds: Global supply constraints and energy transition demand drivers support sustained higher copper prices, enhancing economics of both near-term production and exploration assets

Macro Thematic Analysis

The global copper market faces a structural supply deficit as energy transition demand accelerates while new mine development stagnates. Major discoveries have declined substantially over the past decade, and the permitting timeline for new projects extends increasingly beyond ten years in many jurisdictions. This creates a unique window for advanced-stage projects with secured permits to capture premium valuations as the market recognises the scarcity of near-term production growth. Camino's Puquios project represents exactly this profile - a fully permitted, construction-ready SX-EW operation in a tier-one jurisdiction that can reach production within 18-24 months. The SX-EW processing route, while lower-grade than traditional sulfide operations, offers dramatically lower capital intensity and faster construction timelines, making it ideally suited for the current environment where speed-to-market commands premium valuations. As Chmelauskus noted, 

"It takes decades to get a mine to this stage of development where you're actually going to start construction and get copper out of the ground... that's a major milestone for Camino but it's also a major milestone for the entire copper industry."

TL;DR

Camino Minerals is advancing toward mid-2026 construction start at its permitted Puquios copper project in Chile through Japanese debt financing covering 70%+ of capex, while simultaneously drilling its 65%-owned Costa de Cobre IOCG system in Peru that has intersected 84m at ~1% copper. With project economics modeled at $4.25/lb copper versus current $6+ prices and no hedging requirements on the debt facility, the company offers leveraged exposure to strong copper fundamentals through near-term production and exploration optionality at a ~$50M market cap that significantly undervalues the dual asset portfolio.

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