Fitzroy Minerals: Chile Copper Play with Near-Term JV Potential

• Fitzroy Minerals Inc. (TSXV: FTZ, OTCQB: FTZFF) is advancing two copper projects in northern Chile with C$11 million in treasury and a C$103 million market capitalization, positioned to benefit from constrained global copper supply and strengthening fundamentals.
• December 2, 2025 exploration update reports completion of 12,250 meters of drilling at the flagship Buen Retiro property, identifying three distinct mineralization styles comparable to producing regional mines including Capstone Copper's Manto Verde, Lundin Mining's Candelaria, and the La Farola deposit.
• Recent drilling results include 85.4 meters grading 0.22% copper from 58.6 meters depth and 5.0 meters at 1.33% copper from 301 meters in newly recognized La Farola-style mineralization, expanding the project's geological footprint and confirming 360-meter-wide mineralized zones near surface.
• Potential joint venture partnership with Pucobre S.A., Chile's only primary copper producer listed on the Santiago Stock Exchange, provides access to existing processing infrastructure at the 800-tonne-per-month Planta Biocobre facility and reduces development capital requirements through shared infrastructure.
• Preliminary Economic Assessment targeted for completion in 2026 will define heap leach economics for near-term oxide development while ongoing drilling tests deeper sulphide potential, offering investors dual exposure to production optionality and exploration discovery upside.

Chile's position as the world's dominant copper producer faces unprecedented challenges as aging infrastructure, declining grades, and capital intensity pressures threaten to constrain output growth through the end of the decade. According to Chile's national copper commission COCHILCO, the country will maintain production near 5.4 million tonnes annually through 2033 despite US$83 billion in projected investment, with its share of global production rising to 27% simply because other jurisdictions face similar headwinds. Copper prices reached record highs in May 2024, with London Metal Exchange three-month contracts touching $11,104.50 per tonne, though prices have since moderated to around $9,040 per tonne as of December 2024, while COMEX futures trade near $4.10 per pound.

Fitzroy Minerals enters this environment with two exploration-stage copper projects in proven Chilean mining districts, differentiated by a structured option agreement with Pucobre S.A., the only primary copper producer listed on the Santiago Stock Exchange. The partnership provides potential access to existing processing infrastructure at Pucobre's Planta Biocobre facility, a 800-tonne-per-month copper solvent extraction-electrowinning plant operating continuously since 1992. With drilling programs underway at both the Buen Retiro and Caballos properties, the company is simultaneously pursuing near-term heap leach development and exploring for larger-scale sulphide systems.

The investment case centers on three elements: proximity to producing mines with similar geology, partnership optionality that could reduce capital requirements, and exploration upside from untested geophysical anomalies at depth. Recent drilling results have identified mineralization styles analogous to Capstone Copper's Manto Verde deposit, Lundin Mining's Candelaria operation, and the privately-held La Farola project, all operating within the same geological belt.

Company Overview

Fitzroy Minerals Inc. operates as a mineral exploration company focused exclusively on copper and copper-gold-molybdenum systems in Chile, a jurisdiction that produced 5.33 million tonnes of refined copper in 2024, representing 24% of global mine supply. The company's property portfolio comprises the Buen Retiro project located near Copiapó in Chile's Atacama Region and the Caballos project in Valparaíso Region, both acquired under option agreements with Pucobre S.A. that include defined spending requirements and royalty structures. Trading on the TSX Venture Exchange under symbol FTZ and on the OTCQB under FTZFF, the company maintains a fully diluted share capital of 330,783,930 shares including 20,685,000 options and 35,480,501 warrants.

The corporate structure reflects a deliberate strategy to minimize capital intensity through partnership arrangements while maintaining exploration upside. Under the Buen Retiro option agreement, Fitzroy must incur US$7 million in exploration and technical expenditures by August 2027 plus a US$4 million cash payment by August 2028 to earn 100% interest, subject to a 2% net smelter royalty and Pucobre's 30% clawback right exercisable at three times eligible expenses. The Caballos option requires US$5 million in technical spending by Q2 2028, a US$2 million payment by Q2 2029, and US$2 per tonne of copper equivalent within any unconstrained NI 43-101 resource.

Management consists of mining sector veterans with operational experience across multiple jurisdictions. President and CEO Merlin Marr-Johnson holds geology degrees from Manchester University and Imperial College's Royal School of Mines, with 30 years of experience including roles at Rio Tinto, HSBC, and Blakeney Management. Chief Operating Officer Gilberto Schubert brings 30 years of industry experience including 22 years with Vale in progressively senior roles, ultimately serving as Country Manager and CEO of Vale's Chilean mining subsidiary.

Key Development: Buen Retiro Drilling Results

Fitzroy's December 2, 2025 exploration update reported completion of 12,250 meters of drilling at Buen Retiro in 2025, comprising 7,150 meters of diamond core and 5,100 meters of reverse circulation holes, with results from holes 36 through 39 demonstrating lateral continuity of oxide and secondary sulphide mineralization across previously untested areas. Diamond drill hole BRT-DDH039 intersected 85.4 meters grading 0.22% copper from 58.6 meters depth, including 13.0 meters at 0.33% copper from 111 meters, confirming mineralization width of 360 meters near surface in the gap between the South and Southwest drilling areas. This intersection effectively links two previously separate mineralized trends into a continuous zone of oxidized copper amenable to heap leach processing.

Merlin Marr-Johnson, President and CEO, Fitzroy Minerals stated:

"The more we explore at Buen Retiro the more copper we find. It is a remarkable system. What is particularly interesting is the sheer variety of mineralizing styles that we're seeing."

Holes BRT-DDH040 through DDH042, for which assays remain pending, all intersected intervals exceeding 145 meters of disseminated chalcopyrite in stratiform geology that company geologists describe as Candelaria-style mineralization. Lundin Mining's Candelaria operation hosts proven and probable reserves of 607 million tonnes grading 0.45% copper and 0.10 grams per tonne gold as of December 31, 2023, according to the company's technical report. The mine produced 143,000 tonnes of copper and 83,000 ounces of gold in 2023, with 2024 guidance of 130-145 thousand tonnes of copper.

Reverse circulation hole SFR-RCD002, drilled 3.2 kilometers east-southeast of the historical pit, intersected 5.0 meters grading 1.33% copper from 301 meters within what Fitzroy identifies as La Farola style mineralization, characterized by chalcopyrite veins associated with calcite, specularite, and quartz in chlorite-epidote altered micro-dioritic intrusive rocks. La Farola refers to a specific type of late-stage, low-temperature, hematite-dominant iron oxide-copper-gold deposit found in the Candelaria-Punta del Cobre district.

Strategic Significance: Pucobre Partnership

The option agreement with Pucobre S.A. differentiates Fitzroy's development pathway from typical junior exploration companies by providing potential access to existing copper processing infrastructure without requiring construction of standalone facilities. Pucobre operates Planta Biocobre, an 800-tonne-per-month copper solvent extraction-electrowinning plant located near Copiapó that has processed oxide ore continuously since 1992, with grandfathered environmental permits that would be difficult to replicate under current Chilean regulatory frameworks. Pucobre S.A. trades on the Santiago Stock Exchange with a market capitalization of approximately USD $520 million as of December 2024. The company produced 34,828 tonnes of copper in 2023 according to its annual report and is developing the El Espino copper-gold project in Chile's Atacama Region.

Pucobre's strategic interest in Buen Retiro stems from multiple factors including geographic proximity to existing operations, familiarity with the property from historical mining activities, and the availability of spare processing capacity at Planta Biocobre. The company previously operated a mine at Buen Retiro and retains a 30% clawback right exercisable by August 2028 at a valuation of three times Fitzroy's eligible exploration and development expenses. For a heap leach operation, partnership with Pucobre could eliminate or significantly reduce capital expenditure for crushing, agglomeration, and electrowinning facilities.

Fitzroy's management visited Pucobre's leaching facility at Planta Biocobre in late 2025 as part of ongoing commercial discussions regarding operational arrangements for potential oxide development at Buen Retiro. While no definitive agreements have been announced, the December presentation materials identify Buen Retiro Heap Leach JV with Pucobre as a potential near-term value driver for the company.

Current Activities: Dual-Track Exploration Program

Fitzroy is executing a dual-track exploration strategy at Buen Retiro, simultaneously advancing near-surface oxide mineralization toward resource definition for heap leach development while drilling deeper targets to test sulphide potential beneath and adjacent to the known mineralized zones. The company has allocated approximately C$5.5 million to Buen Retiro activities over the next 12 months, encompassing infill drilling for resource estimation, geotechnical and sterilization drilling, metallurgical test work, environmental baseline studies, and preliminary economic assessment work. Environmental baseline surveys commenced in September 2025, representing the first formal step toward permitting a potential mining operation.

The oxide-focused program targets definition of near-surface mineralization across the South and Southwest areas where drilling has demonstrated lateral continuity over more than 1,400 meters of strike length. Hole BRT-DDH036 returned 20.2 meters grading 0.31% copper from 4.8 meters depth, including 9.0 meters at 0.33% copper from 46 meters. These geometries support potential open-pit mining scenarios with minimal waste stripping ratios.

The sulphide exploration component targets geophysical anomalies at depth that remain untested by drilling. North-south magnetic sections show a major anomaly with deep roots extending to at least 500 meters below surface, while induced polarization surveys have identified chargeability anomalies open at depth consistent with disseminated sulphide mineralization.

At the Caballos project, Fitzroy allocated approximately C$2.5 million to complete 3,000 meters of diamond drilling in 2025 after experiencing technical difficulties that resulted in two holes being abandoned short of target depths. Previous holes at Chincolco intersected copper-molybdenum-gold mineralization in hydrothermal breccias, with hole CAB-DDH001 returning 200 meters grading 0.46% copper equivalent.

Investment Thesis for Fitzroy Minerals

• Near-term catalyst potential through PEA completion in 2026 could define heap leach economics at Buen Retiro with partnership optionality reducing capital requirements versus standalone development scenarios.
• Leverage to copper prices exceeds mid-tier producers given pre-production status, with every $1,000 per tonne increase in long-term price assumptions directly improving project economics without operational hedging constraints.
• Partnership structure with established operator Pucobre provides access to existing processing infrastructure and Chilean operational expertise while maintaining exploration upside through 100% ownership option.
• Multiple mineralization styles at Buen Retiro expand geological model beyond simple oxide enrichment, with Candelaria-style, Manto Verde-style, and La Farola-style copper identified in different areas.
• Untested geophysical anomalies at depth represent exploration upside independent of near-surface heap leach development, with magnetic and IP signatures consistent with larger-scale sulphide systems.
• Chilean jurisdiction offers mining-favorable regulatory framework with established permitting processes, skilled labor force, and infrastructure access despite recent political transitions.

Fitzroy Minerals represents a leveraged exposure to copper price strength through two exploration-stage projects in Chile's established mining districts, differentiated by a partnership structure with Pucobre S.A. that could accelerate development of near-surface oxide mineralization while drilling tests deeper sulphide potential. The December 2025 exploration update demonstrates continued expansion of mineralization at Buen Retiro, with results identifying three distinct copper styles analogous to producing mines in the region and expanding the known mineralized footprint to more than 1,400 meters of continuous strike length. With C$11 million in treasury, ongoing environmental baseline studies, and a Preliminary Economic Assessment targeted for completion in 2026, the company is advancing toward potential heap leach development on a timeline that could see commercial production within three to five years.

Risk factors include execution risk on drilling programs, partnership negotiation outcomes with Pucobre, permitting timeline uncertainty despite Chile's mining-favorable regulatory framework, and copper price volatility that could affect project economics and financing availability. The company's burn rate of approximately C$1.6 million annually for general and administrative expenses plus C$8 million budgeted for exploration over the next 12 months suggests current capital will support operations through 2026, with potential warrant and option exercises generating an additional C$5.4 million if share prices remain above strike prices.

TL;DR

Fitzroy Minerals (TSXV: FTZ) is advancing two copper projects in Chile with C$11 million in cash and a partnership arrangement with established operator Pucobre S.A. Recent drilling at the flagship Buen Retiro property identified three distinct mineralization styles comparable to producing regional mines, with 85.4 meters grading 0.22% copper near surface and pending assays from holes intersecting 145+ meters of disseminated sulphides at depth. The company targets PEA completion in 2026 for potential heap leach development while exploring larger-scale sulphide potential, offering investors leveraged copper exposure through both near-term production optionality and discovery upside.

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