Cashed-Up QC Copper Zeroes in on Next Leg of High-Grade Copper Growth at Past-Producing Opemiska Complex

• QC Copper & Gold has published a mineral resource update indicating over 2 billion pounds of copper at their Opemiska project in an open pit context.
• The project is the highest-grade copper open pit project in Canada with copper grades of nearly 0.8% CuEq.
• The company is focused on further defining the engineering and economics of an open pit mine at the project location.
• Potential near-term catalysts include a strategic investment and exploration/resource growth from satellite deposits at historic mines nearby.
• Management aims to demonstrate the feasibility of a large-scale, multi-decade open pit mining operation in the region.

Updated Technical Report Confirms Tier One Copper Grades

QC Copper & Gold Corp. recently published an updated mineral resource estimate for its Opemiska Copper Complex project in the Chapais-Chibougamau region of Quebec, Canada. The new technical report outlines an in-pit constrained resource containing over 1.75 billion pounds of copper, making Opemiska the highest grade open pit copper project in Canada. With the project’s proximity to existing infrastructure and strong local partnerships already established from the site’s previous 50 years of production history under Falconbridge ownership, QC Copper is focused squarely on demonstrating both the technical and economic viability to resume open pit mining operations.

According to QC Copper & Gold Chairman and CEO Stephen Stewart, “We’re now officially Canada's highest grade copper open pit mine. We're well financed and not in a position where we need to raise money at this point in time."

The company currently has approximately CAD$6 million in cash on hand and continues to hold an equity position in Baselode Energy Corp. worth upwards of CAD$15 million. This financial flexibility allows QC Copper to methodically advance Opemiska on its terms rather than rushing studies or Partner decisions simply to raise capital.

Interview with Chief Executive Officer, Stephen Stewart

Social License and Environmental Planning

With copper grades of nearly 0.8% just from the copper contribution alone, Opemiska offers standalone copper potential well above typical grades for deposits of this scale. As Stewart explains, "Often times, 2 or 3 times the grade and that's only at the copper. Now you add the gold and silver, those are really nice byproducts.” While skeptical investors may question reliance on metal equivalents, Stewart rightfully points out Opemiska’s historical production record of over 300,000 kilograms of payable silver, providing confidence in the presence of accessory metals beyond the impressive copper values alone. Modern metallurgical test work conducted by the company over the past two years corroborates historical recoveries, further derisking assumptions on producibility.

However, an updated mineral resource estimate and strong grades alone do not make a mine. Particularly for a project located literally at the doorstep of a town like Opemiska with the aim of developing an open pit operation. As Stewart acknowledges, “We’ve been very straightforward with the town and their leadership and all the stakeholders that our ambition is to build an open pit at the foot of your town and so that has impacts clearly.”

While both the company and local stakeholders recognize net benefits from restarting production, mitigating disturbances represents a key part of QC Copper’s upcoming studies. Defining the ultimate pit perimeter and evaluating alternative development plans will be an integral part of positioning Opemiska for success. Not just from an economic perspective, but crucially also from a social license and permitting angle. Stewart elaborates that they have optionality in mine planning, stating “Our starter pit is just under 20 million tons at 1.1% copper equivalent - that is further to the west and that would be much less impactful and almost certainly wouldn't move any towns." This demonstrates management’s cognizance of stakeholder considerations and the ability to adapt plans accordingly.

The Opemiska Copper District Opportunity

But QC Copper does not view Opemiska in isolation. Stewart sees the broader region as an underexplored district play, primed to demonstrate its potential through consolidated ownership under a centralized processing hub strategy. He drew comparisons to the Malartic mine complex in the Abitibi region of Quebec. And opportunities for resource growth are close at hand with the company preparing to drill test two adjacent historic mines on the property package. Stewart adds, "Those were producing gold and copper mines that were that were one and a half to two kilometres away so these are real satellite pits, low hanging fruit in terms of adding resources because scale is important." The company’s methodical approach to validating historic data sets first before deploying exploration dollars speaks to the technically diligent and prudent allocation of shareholder capital.

On the catalyst front, Stewart sees potential for a strategic investment as a near-term milestone, stating “I have a hunch we’ll deliver that too.”

With copper demand forecasts against projected supply deficits from existing mines, Opemiska offers scarcity value as one of only a handful of high-grade copper projects controlled by junior developers globally. The Suriname project attentiveness witnessed during Newmont’s takeover battle for Continental Gold in 2020 lends credence to the notion that majors will pay handsome premiums to secure new sources of copper production in mining-friendly jurisdictions. Whether through a direct asset sale or a negotiated strategic investment at the corporate entity level, a seal of approval from a major mining company partner would represent a significant derisking event for QC Copper shareholders. In the meantime, the company’s cashed-up position affords leadership the luxury of negotiating from a position of strength during any partnership dialogue.

The next 12-18 months should prove transformational for QC Copper at Opemiska as project engineering and study work begins in earnest alongside satellite deposit exploration efforts. Funding concerns that typically pressure development-stage companies to prematurely transact will not plague decision-making at Opemiska. The company's seasoned and cycle-tested management team instead remains focused on systematic value creation by establishing a clear path to production in a rising copper price environment. Both the project and the executive team appear primed to seize upon the window of opportunity ahead.

The Investment Thesis for QC Copper & Gold

• Near-term de-risking expected from expanded open pit resource, positive project studies and/or a partnership agreement with a strategic player
• Exploration drilling of satellite deposits holds district-scale resource growth potential
• Highly experienced management team with a track record of creating shareholder value across economic cycles
• Strong command of historic data sets instils confidence in growth plans grounded in geological understanding
• Ultimately, projects in mining-friendly Canadian jurisdictions with infrastructure in place that require modest relative capital intensity tend to attract premium valuations when underlying commodity enters structural deficit

QC Copper & Gold presents a multi-faceted value proposition for investors underpinned by both short and long-term copper market fundamentals.