Coniagas Battery Metals: Speculative Play on High-Grade Battery Metals in Quebec with Upcoming Drill Program

• Coniagas Battery Metals is a newly listed company spun out from another company, with a focus on nickel, copper, cobalt and platinum group metals exploration in Quebec.
• The company has a tightly held share structure with only about 5.2M of 30M shares currently free trading. More shares will become free trading over 3 years.
• Previous drilling of 17,000m and $6M spent has outlined a potential 30-60Mt copper resource at high grades with intercepts including 30m at 2.6% copper equivalent.
• The company plans to start a large drill program in the next 2-3 months to expand the strike length and target a deeper mineralized zone that could return even higher grades over 100m widths.
• Coniagas has a lean corporate structure with a small experienced technical team motivated by stock options. Comparables in the area have market caps up to $116M vs. Coniagas at $3.5M.

Coniagas Battery Metals (TSXV:COS) is a newly listed junior exploration company that presents an intriguing speculative investment opportunity in the battery metals space. With a focus on copper, nickel, cobalt and platinum group metals (PGM) in Quebec, Canada, the company has a promising land package with potential for a significant high-grade discovery.

Exploration Potential & Drill Plans

Coniagas' flagship asset saw 17,000 meters of historic drilling with about $6 million spent by the previous operator. While the historic estimate is not yet 43-101 compliant, it points to the potential for 30 to 60 million tonnes of high-grade copper mineralization.

Some of the historic highlight intercepts include 30 meters grading 2.6% copper equivalent. The company believes there is potential to expand the mineralization along strike and at depth.

In particular, Coniagas is excited about a deeper zone target, Graal, that could return even higher grades over wider intervals. President & CEO Frank Basa elaborates:

"Our current targets are we're trying to go to this deep Zone it's called proper is called Graal. I think we might get some pretty pretty good results - some of our results are we've been getting are 30m of 2.6 copper equivalent so I think the potential is massive there."

To follow up on these targets, the company is planning a large drill program to start in the next 2-3 months. The goal is to expand the known mineralization along strike and test the deeper Grail target. If successful, this program could be a major catalyst for the stock.

Interview with President & CEO Frank Basa

Corporate Structure & Share Float

Coniagas was spun out from another company earlier this year, with a very tight corporate structure designed to maximize upside for shareholders. The company currently has about 30 million shares outstanding, but only 5.2 million are free trading, with the rest held in escrow to be released over three years.

Basa explains the share structure: "We did a very small private placement to get listed, about $850,000 at $0.25, so we had very little paper. We have about 30 million shares out there, but in reality, only 5.2 are available to trade. A lot of the other ones are in escrow, so they are tightly held. Anybody can move my market up and down with $1,000 or $2,000."

While the tight structure means limited liquidity for now, it also means any positive news could have an outsized impact on the share price. As the escrowed shares become free trading over the next three years, the company will gain more liquidity while hopefully also advancing the project to create shareholder value.

Peer Comparison

Coniagas' market capitalization is currently just $3.5 million, a fraction of some of its peers in the area. Basa points to neighbors like Power Nickel with a $116 million market cap as an example of the potential upside if Coniagas is successful in its exploration efforts.

While exploration is risky and there is no guarantee Coniagas will succeed similarly to its neighbors, the company appears undervalued relative to its peers given the historical drilling and upcoming catalysts. Any exploration success could help close the valuation gap to its peers.

Lean Technical Team

Another aspect that stands out is Coniagas' lean corporate structure. The company has no office, with a small experienced technical team motivated by stock options. This means low overhead costs and a focus on advancing the project.

While there are risks to this approach, it has the potential to be beneficial for shareholders if the company can deliver exploration success with minimal dilution.

Conclusion

Coniagas Battery Metals offers speculative exposure to in-demand battery metals in a top jurisdiction. The company's tightly held share structure and lean overhead make it a high risk, high reward bet on exploration success. If the company is able to deliver with the drill bit, it could close the valuation gap to peers and reward patient investors. The upcoming large drill program is a key catalyst to monitor for investors.

The Investment Thesis for Coniagas Battery Metals

In summary, Coniagas presents a speculative investment opportunity with significant potential upside for risk-tolerant investors:

• Exposure to in-demand battery metals like copper, nickel and cobalt in a top mining jurisdiction of Quebec
• Tightly held share structure with just 5.2M of 30M shares free trading, meaning any positive catalysts could move the stock significantly
• Historic drilling points to potential for 30-60Mt of high-grade copper mineralization with opportunities to expand along strike and at depth
• Large 60-90,000m drill program planned to start in the next 2-3 months to test deeper high-grade targets
• Significantly undervalued relative to peers, with a $3.5M market cap vs peers as high as $116M
• Lean corporate structure with low overhead and technical team motivated by stock options

Macro Thematic Analysis

The global transition to electric vehicles and renewable energy drives strong demand for battery metals like nickel, copper, and cobalt. Quebec, with its abundant mineral resources, cheap hydroelectric power, and supportive government policies, is positioned to be a key supplier.

"We're in the area where a lot of other people have had very good success, and I think we might be able to do the same."

With its promising land package and upcoming catalysts, Coniagas offers a compelling way for investors to gain exposure to this macro theme. While speculative, the potential upside could be significant if the company is successful in its exploration efforts. As the world electrifies, companies like Coniagas could play an important role in supplying the necessary metals.