Domestic Metals Targets Big Copper System Just 50km From Historic Butte Mine

• Domestic Metals acquired a Montana copper porphyry project from Rio Tinto, earning 60% by spending $3.15M USD with Rio retaining 40% and a 20% clawback provision
• The project sits 50km northwest of the Butte mine (22B pounds copper produced over 100+ years) in the same Helena formation geology with similar rock characteristics
• Rio Tinto drilled 26 of 40 holes, with best intercept of 109m at 0.75% copper including 80m at 0.97%, marching toward geophysical targets in the northwest
• President & CEO Gordon Neal has successful track record building MAG Silver ($50M to $2.5B market cap) and New Pacific Metals ($100M to $1.5B)
• Company recently raised just under $4M to conduct IP/MT geophysics in January-February 2026, followed by 3,000+ meters of drilling starting February-March with results expected April-May

Domestic Metals has positioned itself to explore what could become a significant copper discovery in Montana, acquiring rights to a project that major Rio Tinto deemed valuable enough to retain 40% ownership. The Smart Creek-Sunrise property sits within proven copper-producing geology, 50 kilometers from the historic Butte mine that has produced 22 billion pounds of copper over a century of operations. With permitting timelines in Montana dramatically shorter than other US jurisdictions and an experienced management team, the company aims to advance what five previous exploration groups have incrementally de-risked.

Project Acquisition from Rio Tinto

The Smart Creek-Sunrise copper porphyry project came to Domestic Metals through an earn-in agreement with Rio Tinto that speaks volumes about the property's perceived potential. Under the terms, Domestic Metals can earn 60% of the project by spending $3.15 million USD on exploration work, with approximately $1.5 million already invested. Critically, these funds must go directly into ground work rather than cash payments to Rio Tinto.

"I tried to get 70 or 80% and they said ‘no way’. In fact they have a clawback provision of 20% and that tells you how much they are interested in this." 

This clawback provision allows Rio Tinto to buy back an additional 20% stake under certain conditions, reducing Domestic Metals to 40% ownership if exercised - an unusual protective measure that underscores Rio Tinto's conviction in the project's long-term value.

Rio Tinto's Kennecott exploration arm conducted substantial work on the property, drilling 26 of the 40 total holes and initiating geophysical surveys before capital allocation priorities shifted. Neal noted that Rio Tinto's exploration budget focuses primarily on extending life-of-mine at existing operations rather than pure greenfield exploration, creating the opportunity for junior companies to advance projects that don't meet the major's immediate capital deployment criteria.

Management's Track Record in Building Value

President Gordon Neal brings a proven history of building junior mining companies into billion-dollar enterprises. Starting in 2003 at MAG Silver as VP of Corporate Development, he raised approximately $500 million of the company's $700-800 million total capital raised during his tenure. Under his involvement, MAG Silver grew from $50 million market capitalization to $2.5 billion when Pan American Silver acquired the company.

Following Mag Silver, Neal spent time learning production operations at Silvercorp Metals in China before becoming President and CEO of New Pacific Metals from 2016 to 2023. "I took that from a $100 million market cap to 1.5 billion," Neal stated. Most recently, he served at World Copper, selling the Zonia Project in Arizona to Edge Copper before joining Domestic Metals.

Neal's background in capital markets and track record of financing exploration companies through discovery and development provides credibility to Domestic Metals' capital allocation strategy. His emphasis on "putting money in the ground" rather than "lifestyle management" reflects lessons learned from changing investor sentiment over his two-decade career.

Geological Setting in Montana's Copper Belt

The Smart Creek-Sunrise property occupies ground with compelling geological parallels to one of North America's most productive copper districts. Located 50 kilometers northwest of Butte, Montana - which has produced 22 billion pounds of copper over more than a century - the project sits within the same Helena formation geology.

"We've done geological study. The rocks are the same. The age are the same and the geology is the Helena formation." 

The property's geologists, Dan MacNeil and Alan Wainwright, have told Neal that "none of the geologists involved in this themselves, and the Rio guys, would be surprised if we made a major discovery like Butte at Smart Creek-Sunrise."

The property features four target areas: Smart Creek (east), Smart Creek Exotic (southeast), Sunrise Mine (west), and Radio Tower (southwest). Historical mining at the Sunrise Mine in the 1800s and 1900s produced 12,500 ounces of gold at 6 grams per tonne alongside 1.5% copper concentrate, demonstrating the mineralized system's polymetallic character.

Interview with Gordon Neal, President, Domestic Metals

Rio Tinto's Exploration Results

Rio Tinto's 26 drill holes systematically advanced understanding of the mineralized system, with results improving as drilling moved from southeast to northwest toward geophysical targets. The company's work culminated in hole SMC-22, which intersected 109 meters of 0.75% copper, including 80 meters at 0.97% copper - significant grades for a porphyry system that remains open.

"Every hole has copper in it. And as they advance toward the northwest from the southeast, the assays get better and better." 

This progressive improvement in results suggests the drilling was moving toward rather than away from the porphyry center, leaving the highest-grade core potentially undrilled.

Rio Tinto conducted induced polarization (IP) geophysics but did not complete the survey program before shifting focus elsewhere. The partial IP data identified chargeability anomalies measuring approximately 1,400 by 600 meters, consistent with a substantial porphyry system. However, the incomplete survey coverage leaves target definition imprecise - a gap Domestic Metals intends to address with comprehensive IP and magnetotelluric (MT) surveys before drilling.

At the Sunrise Mine target area, company geologists discovered a porphyry dyke protruding from the surface that Rio Tinto had overlooked. Expecting 0.5 grams per tonne gold from sampling, they instead obtained 4.5 grams per tonne gold, indicating "they're standing on top of a porphyry," according to Neal. This discovery at Sunrise represents an independent high-priority target beyond Rio Tinto's primary focus area.

Montana's Improved Permitting Environment

A critical factor distinguishing this project from many US copper exploration plays is Montana's streamlined permitting process for drill programs on US Forest Service land. While similar permits in Arizona can require 5-7 years, Montana permits are being obtained in approximately four months.

The improved permitting climate recently manifested in an unprecedented administrative decision. When 36 previously approved drill sites on the property expired in December 2024, company geologists contacted the Forest Service requesting reinstatement and a two-year extension. 

"They said yes. I've never heard of that in my life for the Forest Service of the United States. They just extended them, used the same paperwork and we have 36 holes already to go."

This permitting advantage directly impacts capital efficiency and timeline to results. With permits in hand, the company can move rapidly from geophysical surveys to drilling to assay results within a compressed timeframe that preserves treasury for ground work rather than holding costs during extended permitting delays.

Capital Allocation for Phase 1 Exploration

Domestic Metals recently completed a financing raising just under $4 million to fund its Phase 1 exploration program. Initially planning to drill immediately in January 2026, management reassessed the strategy to prioritize comprehensive geophysical surveys before committing capital to drill holes.

The updated plan calls for IP and MT geophysical surveys in January-February 2026, with drilling commencing in February-March and assay results expected in April-May. 

The current treasury provides sufficient capital for 3,000-3,500 meters of drilling at approximately $400 USD per meter - the depth required to test porphyry targets at 600 meters. "We will know," Neal emphasized regarding whether initial holes confirm the geological model. "The 3,000 meters will tell us we'll be able to tell right away if we're in the right rocks within the first hole and a half."

Copper Market Fundamentals

While copper prices recently exceeded $5 per pound and Neal acknowledged long-term price targets around $4.50, he emphasized that investors should focus on project economics across price cycles rather than commodity price speculation. 

"If you're in this business, don't look at what the price can be. Look at investing in companies that can actually show you economic returns when the price goes the other way."

Regarding copper demand drivers, Neal cited artificial intelligence infrastructure as an emerging consumption category alongside electric vehicles and grid infrastructure: 

"The numbers that are coming out for these AI stations - I'm hearing that some of the buildings that are being vacated, they're talking about turning them into AI farms, which is going to take a tremendous amount of copper."

The Investment Thesis for Domestic Metals

• Major mining company Rio Tinto retaining 40% ownership plus 20% clawback provision signals strong conviction in discovery potential
• Location 50km from Butte mine (22B lbs copper production) in identical Helena formation geology with similar rock characteristics and diabase enhancement factor
• Proven management team that built MAG Silver from $50M to $2.5B market cap and New Pacific Metals from $100M to $1.5B market cap
• Best intercept to date of 109m at 0.75% copper including 80m at 0.97% copper with drilling advancing toward higher-grade porphyry core
• Montana permitting environment dramatically improved with drill permits obtained in 4 months vs 5-7 years in Arizona; 36 drill sites already permitted
• Near-term catalyst timeline with IP/MT geophysics January-February 2026, drilling February-March, and assay results April-May 2026
• Capital efficient exploration with $4M treasury sufficient for 3,000+ meters of drilling at primary targets

Macro Thematic Analysis

The United States faces a critical copper supply deficit as domestic consumption outpaces production, with imports now exceeding those of any other country globally. This supply-demand imbalance intensifies as artificial intelligence infrastructure deployment accelerates, adding to existing demand from grid modernization and electrification initiatives.

Montana's streamlined permitting environment represents a fundamental shift in US mining policy, with drill permits now obtained in four months versus 5-7 years in other jurisdictions - a change that dramatically improves project economics and timeline certainty. Domestic Metals' Smart Creek-Sunrise project benefits directly from this policy evolution while occupying proven copper-producing geology adjacent to North America's most prolific historical copper district. As Neal emphasized: 

"The administration is stepping up and shortening permitting times and focusing on getting production in the United States going. I found it's a lot easier to work in the United States right now than it was in the past."

TL;DR

Domestic Metals is advancing a Montana copper porphyry where Rio Tinto drilled 109m at 0.75% copper (including 80m at 0.97%) before capital constraints forced them to retain 40% while Domestic earns 60%. The project sits 50km from the 22-billion-pound Butte mine in identical geology, with Montana's 4-month permitting timeline (vs 5-7 years in Arizona) enabling rapid advancement. President Gordon, bringing proven discovery and financing expertise to drill the porphyry core starting Q1 2026 with results expected by May.

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