Junior Explorer Targets Deep Porphyry System in Arizona's Copper Triangle

• Prismo Metals is an exploration company with two projects in Mexico (silver and gold) and one copper project in Arizona called Hot Breccia.
• Hot Breccia was previously drilled by Kennecott (Rio Tinto subsidiary) in the 1970s but the drillholes didn't go deep enough. Prismo believes the real potential lies deeper.
• Prismo has identified a large geophysical anomaly at Hot Breccia near the historic drilling and believes it could represent a major porphyry copper and skarn system.
• The company has done surface mapping, sampling, and permitting to prepare Hot Breccia for a 5,000 meter initial drill program to test the anomaly.
• CEO Alain Lambert emphasizes Prismo is an exploration company seeking to make a major copper discovery and would look to partner with or sell to a major mining company to develop it.

Alain Lambert, CEO of Prismo Metals (CSE:PRIZ), lays out his company's plan for copper exploration in Arizona. With its flagship Hot Breccia project, Prismo is taking a calculated risk to drill test a promising geophysical anomaly near a historic Kennecott drilling area. If successful, Lambert hopes it could lead to a buyout or joint venture with a major mining company.

The Arizona Copper Opportunity 

Lambert emphasized that major miners are actively seeking the next generation of large, high-grade copper deposits to replace maturing mines and meet growing demand. He sees Arizona as one of the best places to explore, with a rich history of copper production and excellent infrastructure in place. The region hosts massive porphyry copper deposits like Resolution, a joint Rio Tinto-BHP project with over 1.78 billion tonnes grading 1.5% copper. Resolution lies just 40 km from Hot Breccia. Lambert commented:

"The consensus among the people that I talk to, is that's what the big players are going to focus on, to find these deep-seated, large and rich copper deposits."

Previous Exploration at Hot Breccia 

Hot Breccia’s potential was first recognized in the 1970s by Kennecott. Lambert said Kennecott drilled the property, encountering copper mineralization, but never reached the depth needed to test the heart of the system. 

"The drilling in the 70s didn't go deep enough. They encountered interesting mineralization but they didn't hit the sweet spot, which is what the IP study has identified."

Prismo's Exploration Approach 

Over the past year, Prismo's geological team, has worked to refine the Hot Breccia drill targets. Surface mapping and sampling returned values up to 5.6% copper in mineralized fragments believed to originate from a porphyry system at depth.

Prismo also reprocessed geophysical data using artificial intelligence. The AI modeling further confirmed that the core of the anomaly lies below and adjacent to the historic drilling. 

Interview with Chief Executive Officer, Alain Lambert

Plans & Budget for Initial Drilling 

Lambert said Prismo is fully permitted and eager to launch an initial 5,000 meter drill program to test the primary geophysical anomaly. The company has a drilling contractor lined up and can begin work as soon as financing is secured.

While Prismo had hoped to raise $3 million and begin the program in early 2024, it was unable to close a financing amid challenging market conditions. 

Potential Paths to Value Creation 

As an exploration company, Prismo's endgame is to define an economic copper deposit and sell the asset to a larger company to develop. The surrounding property holders - Rio Tinto, BHP, Freeport-McMoRan, Asarco/Grupo Mexico - would all be logical partners if Prismo's drilling successfully proves the Hot Breccia concept.

"It's going to be a big boy game at the end. We want to find the prize and let somebody else develop it."

In the meantime, any drill success could provide a major re-rating for Prismo stock. Other copper exploration companies with encouraging drill results have seen their valuations soar into the tens or even hundreds of millions of dollars.

Secondary Projects Provide Additional Optionality 

While Hot Breccia is the primary focus, Prismo offers additional optionality through its Mexican silver and gold projects. The company's Palos Verdes project lies adjacent to Vizsla Silver's high-grade silver discovery in Sinaloa state. Vizsla Silver is the largest shareholder of Prismo and the two companies are working together to advance Palos Verdes in tandem with Vizsla's development plans.

Prismo's Los Pavitos property in Sonora state covers a large area prospective for orogenic gold deposits. Work to date has been encouraging, but Lambert said Prismo will seek a partner to advance the project to conserve funds for drilling Hot Breccia.

The Investment Thesis for Prismo Metals

• Exposure to a large geophysical anomaly with potential to host a major copper porphyry deposit in mining-friendly Arizona
• Adjacent to a cluster of giant porphyry deposits and mines held by majors like Rio Tinto, BHP and Freeport-McMoRan
• Supported by mineralized surface samples grading up to 5.6% copper interpreted to be scraps from a porphyry system at depth
• 5,000 meter initial drill program fully permitted and ready to test the main anomaly
• If successful, drilling could quickly prove up a deposit of interest to neighboring major miners
• Near-term catalysts expected from initial deep holes into the core of the anomaly

Macro Thematic Analysis

The global energy transition is driving strong demand for copper. Electric vehicles require up to 4x more copper than internal combustion engines, and renewable power systems are 5-7x more copper intensive than fossil fuel plants. At the same time, a lack of new mine supply and declining reserves at existing operations have created a structural supply deficit.

S&P Global estimates the world could face a 10 million tonne annual copper shortfall by 2035 without a massive increase in new mine supply. That equates to 10-15 new mines the size of BHP's Escondida, the world's largest copper mine. To incentivize that development, copper prices may need to reach $15,000-20,000 per tonne - double the current level near $9,000.

Copper exploration budgets are already rising. The estimates say that industry spent $3.1 billion on copper exploration in 2024, up from $2.8 billion in 2023. Much of that is focused on the US Southwest, Chile, Peru, Australia and Canada. The Hot Breccia project lies squarely in that nexus. If Prismo can deliver a discovery, it may find itself in the right place at the right time.