Fitzroy Minerals: Dual-Track Copper Strategy Targets Near-Term Cash Flow and Major Discovery Upside

Fitzroy Minerals Positions for Copper Market Strength with Near-Term Development & Discovery Optionality

Fitzroy Minerals Inc. is executing a bifurcated copper strategy in Chile that balances near-term production economics with high-impact exploration. The company's Buen Retiro project is advancing toward a preliminary economic assessment for heap leach operations, supported by over 32,000 metres of drilling and active discussions with joint venture partner Pucobre SA. Concurrently, the Caballos sulphide project has emerged as a potential district-scale discovery following a successful proof-of-concept drill hole that intersected 200 metres of Cu-Mo-Au-Re mineralization. With C$11 million in cash, a C$103 million market capitalization, and two 2026 PEA target dates, Fitzroy offers investors exposure to both oxide copper development economics and porphyry-style exploration upside in one of the world's premier mining jurisdictions.

The investment case for Fitzroy centres on the company's ability to leverage existing infrastructure, secure strategic partnerships, and capture value across multiple stages of the mining lifecycle. Buen Retiro benefits from brownfield site status, proximity to processing capacity, and streamlined permitting pathways, while Caballos represents a greenfield opportunity in a highly fertile copper belt with minimal modern exploration. The combination of near-term cash flow potential and longer-term discovery optionality creates a diversified risk-reward profile for copper-focused investors seeking exposure beyond single-asset development stories.

Fitzroy's management team brings operational, financial, and geological expertise from major producers and successful developers. President and CEO Merlin Marr-Johnson holds advanced degrees in geology and mineral deposit evaluation and has worked across South America, Africa, and Europe. Chief Operating Officer Gilberto Schubert spent 22 years with Vale in progressively senior roles, ultimately serving as Country Manager and CEO of the company's Chilean subsidiary. Technical Advisor Ken McNaughton brings over 30 years of geological engineering experience from Corona, Silver Standard, and Pretium Resources.

Buen Retiro: Infrastructure-Driven Path to Near-Term Production

Buen Retiro is a copper oxide-transition-mixed sulphide system located in Chile's Atacama Region, approximately 25 kilometres from Pucobre's Planta Biocobre solvent extraction-electrowinning facility. The project encompasses over 13,000 hectares and hosts extensive surface copper mineralization along a four-kilometre strike length, with drilling to date demonstrating continuity of oxide and transitional copper over widths averaging 35 to 40 metres. Key intercepts include 110 metres at 1.94% Cu in hole BRT-DDH022 and 135 metres at 0.73% Cu in hole BRT-DDH06, with mineralization dominated by leachable tenorite, chrysocolla, chalcocite, and native copper. The project's mineralogy and shallow depth position it for potential heap leach processing, a low-capex development pathway that could generate cash flow within a compressed timeline relative to conventional milling operations.

The company completed over 32,000 metres of combined reverse circulation and diamond drilling across multiple phases, with an additional 11,000 metres budgeted for 2025 and 2026 to support resource definition, geotechnical studies, and metallurgical testwork. Drilling effectiveness has exceeded 90%, and the project benefits from open-mine status and a brownfield site designation, reducing permitting complexity compared to greenfield developments. The historical Manto Negro mine operated at Buen Retiro from 2005 to 2009, trucking ore to Planta Biocobre, and the mine was never officially closed, which provides regulatory and operational continuity. A preliminary economic assessment is underway with expected completion in Q4 2026, targeting heap leach scenarios that leverage proximity to Pucobre's processing infrastructure.

Fitzroy's partnership with Pucobre SA adds strategic value beyond infrastructure access. Pucobre, listed on the Santiago Stock Exchange, operates Planta Biocobre with 9.6 ktpa nameplate capacity and produces 38,000 tonnes per annum of copper cathode. Pucobre holds a 30% clawback right on the Buen Retiro option, exercisable by August 2028 based on a valuation of three times eligible expenses invested by Fitzroy. Joint venture discussions are progressing, with Pucobre potentially assuming operational control of heap leach development, enabling Fitzroy to retain equity exposure while minimizing capex requirements and execution risk. This non-operated cash flow model is rare among junior explorers and significantly de-risks the path to production for Fitzroy shareholders.

Caballos: High-Grade Cu-Mo-Au-Re Discovery Opens New District

The Caballos project represents a grassroots discovery in a structurally controlled corridor located between Los Pelambres and Los Bronces, two of Chile's largest porphyry copper deposits. Fitzroy controls 18,000 hectares across the Pocuro Fault Zone at approximately 2,000 metres elevation, a prospective setting characterized by same-age intrusions as the Manto Verde deposit and similar structural architecture to Candelaria. The Chincolco anomaly, one of two primary targets at Caballos, measures 1,200 metres long and 150 metres wide at surface, defined by coincident IP geophysics, soil geochemistry, and rock chip sampling. First-pass drilling in 2024 returned 200 metres at 0.46% Cu, 0.06% Mo, 0.07 g/t Au, including 98 metres at 0.78% Cu, 0.11% Mo, 0.12 g/t Au, and 42 metres at 1.20% Cu, 0.18% Mo, 0.23 g/t Au.

The Caballos system is characterized by hydrothermal breccias with porphyry-style clasts, mineralized with chalcopyrite, molybdenite, and pyrite, along with anomalous gold and rhenium values. Molybdenum grades are notably high relative to typical Cu-Mo porphyries, with potential economic contribution at current metal prices. Gold shows positive correlation with molybdenum, and rhenium, a strategic by-product with 50 to 60% global supply sourced from Chile, adds further value potential. Mineralization occurs within barren breccia units cutting felsic intrusions and andesitic volcanics, with no oxide or transition zones encountered in the initial hole, indicating the system remains sulphide-dominant at depth. The Mule Hill and Chincolco anomalies extend over 10 kilometres of combined strike, with only one drill hole completed to date, suggesting significant discovery potential remains untested.

Fitzroy's 2025 exploration program at Caballos includes 3,000 metres of diamond drilling, airborne and deep-looking geophysical surveys, and follow-up drilling contracts for 2026. The company has budgeted C$4 million for Caballos over the next 12 months, targeting confirmation of scale and grade potential across the two primary anomalies. Drilling will focus on step-out holes to test strike and depth extensions, with geophysics designed to refine targets for subsequent phases. The project's location in a world-class copper district, combined with early high-grade intersections and minimal historical drilling, positions Caballos as a potential company-making asset if scale and grade continuity are confirmed.

Financial Position & Use of Proceeds Support Dual-Track Strategy

Fitzroy holds C$11 million in cash as of November 2025, providing full funding for planned exploration and development activities through 2026 without near-term equity dilution. The company's 12-month budget allocates C$4 million to each project, with C$1.6 million reserved for general and administrative expenses and C$0.3 million for non-core asset spin-out activities. At Buen Retiro, budgeted work includes infill drilling, geotechnical and sterilization drilling, metallurgical testwork, baseline environmental studies, and engineering support for the PEA. At Caballos, funds will support diamond drilling, geophysical surveys, and new drilling contracts for 2026. The company expects C$1.1 million to remain in treasury after planned spend, with an additional C$5.4 million in warrant and option premiums exercisable over the next 18 months.

Fitzroy's share structure consists of 274.6 million shares outstanding, 20.7 million options, and 35.5 million warrants, for a fully diluted count of 330.8 million shares. At a current share price of C$0.3750, the company trades at a C$103 million market capitalization. The shareholder base is diversified, with 47% held by high-net-worth and retail investors, 26% by Crux Investor and Ptolemy Capital, 20% by institutional funds, and 7% by board and management. The company's financial position is further supported by in-the-money warrants and options with an average exercise price of C$0.224, generating C$5.4 million in non-dilutive capital if fully exercised, extending the company's financial runway into late 2026.

The dual-project funding strategy is designed to balance risk and return. Buen Retiro de-risks near-term cash flow potential through PEA completion and JV discussions, while Caballos provides exploration upside with minimal capital at risk until scale and grade are confirmed. This approach allows Fitzroy to advance two distinct value drivers simultaneously without over-leveraging balance sheet or diluting shareholders prematurely. The absence of near-term financing requirements differentiates Fitzroy from many junior explorers and provides management flexibility to optimize timing and structure of any future capital raises.

Strategic Context: Chile's Copper Fairway &Infrastructure Advantage

Fitzroy's projects are located in Chile's prolific copper fairway, a region responsible for over 25% of global copper production and home to some of the world's largest and longest-lived copper deposits. Buen Retiro sits on the same structural corridor as Lundin Mining's Candelaria mine, a high-grade copper-gold producer with over 30 years of production history. Caballos lies between Anglo American's Los Bronces and Lundin's Los Pelambres, two multi-billion-tonne porphyry copper systems. The company's projects benefit from Chile's established mining culture, skilled workforce, and robust infrastructure, including high-voltage transmission lines, the Pan-American Highway, and approved desalination facilities at Copiaport-E. These infrastructure advantages reduce capital intensity, accelerate development timelines, and lower execution risk relative to projects in frontier jurisdictions.

Chile's regulatory environment, while rigorous, is predictable and transparent, with clear pathways for environmental permitting, water rights, and community engagement. Buen Retiro's brownfield status and existing baseline data from Copiaport-E reduce permitting timelines, while the project's low elevation, minimal vegetation, and absence of nearby residents further streamline environmental assessment. Caballos, at 2,000 metres elevation, benefits from track access and proximity to established mining districts, enabling year-round drilling and efficient logistics. For investors evaluating jurisdiction risk, Chile ranks consistently among the top mining destinations globally, with stable political institutions, enforceable contracts, and active capital markets supporting mining investment.

The company's partnership with Pucobre adds further strategic value. Pucobre's ownership of Planta Biocobre provides Fitzroy with a potential processing route for Buen Retiro ore, eliminating the need for greenfield plant construction and reducing upfront capex. Pucobre's clawback right aligns incentives: if Buen Retiro economics are robust, Pucobre can acquire 30% of the project by paying Fitzroy a valuation based on three times invested capital. Alternatively, a joint venture structure could see Pucobre fund development in exchange for majority ownership, enabling Fitzroy to retain equity exposure while minimizing cash requirements. Either scenario positions Fitzroy as a near-term copper producer with optionality on sulphide exploration at depth.

Risks & Considerations

Fitzroy's investment case is contingent on successful execution across exploration, development, and partnership negotiations. At Buen Retiro, PEA results must demonstrate robust economics at current copper prices and realistic capex assumptions for heap leach operations. Metallurgical testwork, currently underway, will determine copper recoveries and leach kinetics, which directly impact project economics. If recoveries are lower than assumed or capex higher than modelled, the project's economic viability could be challenged. Joint venture negotiations with Pucobre are progressing but not finalized, and terms of any eventual agreement will determine Fitzroy's retained ownership, funding obligations, and operational control.

At Caballos, the project remains early-stage, with only one drill hole completed to date. While initial results are encouraging, follow-up drilling is required to confirm scale, grade continuity, and metallurgical characteristics. Porphyry copper systems are inherently variable, and there is no guarantee that subsequent holes will replicate the 200-metre intersection from the first hole. Geophysical anomalies, while promising, are not definitive proof of mineralization, and the project's remote location at 2,000 metres elevation introduces logistical challenges for year-round drilling. Capital requirements to advance Caballos to resource definition stage could be substantial, and Fitzroy's current treasury may not be sufficient to fund a multi-year drilling campaign without additional equity or partnership capital.

Broader market risks include copper price volatility, currency fluctuations, and potential changes to Chilean mining regulations or tax policy. While Chile's regulatory environment is stable, recent political debates over lithium nationalization and royalty increases for large producers underscore the importance of monitoring policy developments. Permitting timelines, even for brownfield projects, can extend beyond initial estimates if environmental or community concerns arise. Fitzroy's reliance on partner relationships introduces counterparty risk, and any delays or disagreements in negotiations could impact project timelines. The company's relatively small market capitalization and liquidity profile may result in share price volatility, particularly in response to drilling results, PEA outcomes, or broader sector sentiment.

The Investment Thesis for Fitzroy Minerals

• Dual-project exposure balances near-term oxide copper economics at Buen Retiro with high-impact sulphide discovery potential at Caballos, diversifying risk across development and exploration timelines.
• Buen Retiro's proximity to Pucobre's processing infrastructure enables low-capex heap leach scenarios with potential non-operated cash flow, reducing execution risk for Fitzroy shareholders.
• Caballos' first drill hole confirms a new Cu-Mo-Au-Re mineralizing system in a world-class copper district, with 10 kilometres of prospective strike and minimal historical drilling providing significant discovery upside.
• C$11M cash and C$5.4M warrant and option premium fund 12 months of drilling, PEA work, and baseline studies without near-term dilution, supporting value realization across both assets.
• Strategic partnership with Pucobre through 30% clawback right and JV discussions de-risks Buen Retiro development path and provides potential capital return for Fitzroy.
• Chile's Tier-1 jurisdiction, established infrastructure, and predictable permitting reduce project risk relative to peers in frontier regions, enhancing economics and timeline visibility for both projects.

Fitzroy Minerals offers a differentiated copper investment proposition through its combination of near-term heap leach development at Buen Retiro and grassroots discovery potential at Caballos. The company's partnership with Pucobre de-risks the path to production and provides potential non-operated cash flow, a structure rarely seen among junior copper explorers. Infrastructure advantages, brownfield site status, and streamlined permitting at Buen Retiro enhance project economics and reduce execution risk, while Caballos' location in a world-class copper district and early high-grade intersections position the project for potential district-scale discovery. With C$11 million in cash, two PEAs targeted for 2026, and C$5.4 million in warrant and option premium providing additional runway, Fitzroy is fully funded to advance both projects without near-term dilution.

For copper-focused investors, Fitzroy represents a balanced risk-reward profile. Buen Retiro provides near-term optionality on oxide copper economics and potential cash flow, while Caballos offers blue-sky exploration upside in a Tier-1 jurisdiction. The company's dual-project strategy diversifies risk across development and exploration timelines, reducing reliance on any single asset for value realization. Management's operational and financial experience, combined with strategic partnerships and established infrastructure, positions Fitzroy to execute on its development and discovery objectives. Investors seeking exposure to both near-term production potential and longer-term exploration upside in Chile's copper fairway should evaluate Fitzroy as a compelling opportunity within the junior copper sector.

TL;DR

Fitzroy Minerals (TSX-V: FTZ) is advancing two copper projects in Chile: Buen Retiro, targeting near-term heap leach production with PEA underway and JV discussions with partner Pucobre, and Caballos, a grassroots Cu-Mo-Au-Re discovery with significant scale potential. The company holds C$11M cash, trades at C$103M market cap, and offers investors exposure to both development economics and exploration upside in a Tier-1 jurisdiction.

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