Low-Cost Production Strategy for Doré Copper Mining, Leveraging Quebec Assets

• Ernest Mast, CEO of Doré Copper Mining Corp, discusses plans to restart copper mining operations in Quebec using existing infrastructure.
• Main deposits are Corner Bay (8.6 million tons over 3% copper) and other nearby deposits. The plan is a "hub and spoke" arrangement.
• Estimated $50 million needed to upgrade mill, tailings facility, and install new equipment. Looking to improve on previous economic studies.
• Seeking project funding from Canadian critical minerals programs to advance without shareholder dilution.
• Looking for downstream partners or strategic investors. Exploration drilling is planned for 2024 to expand resources.

Doré Copper CEO Outlines Plans to Restart Quebec Copper Operations

Ernest Mast, President and CEO of base metal exploration and development firm Doré Copper Mining Corp, outlined plans to restart copper mining operations in Quebec during a recent interview. Dore Copper is aiming to leverage existing infrastructure from past producing mines to expedite a restart while minimizing shareholder dilution.

The company's main asset is the former Corner Bay copper mine located in the Chibougamau mining district of Quebec, which contains an estimated 8.6 million tons grading over 3% copper based on a 2022 preliminary economic assessment (PEA). Mast stated, "Our principal project is the Corner Bay project at about 8.6 million tons over 3% copper." The PEA envisions a 10.5-year mine life with an average annual copper production of 30 million pounds at an all-in sustaining cost under $2.25 per pound.

In addition to Corner Bay, Doré Copper controls several other deposits in the district containing high-grade copper and gold mineralization. The company plans to utilize a "hub and spoke" approach, trucking ore from satellite deposits to the centrally located Corner Bay mill. As Mast explained, "We have a project in Quebec that we're looking to restart in a hub and spoke arrangement."

Leveraging Existing Infrastructure to Control Costs

A key aspect of Doré Copper's strategy is leveraging approximately $100 million worth of existing infrastructure from past operations to minimize restart costs. According to Mast, "We have a mill with a capacity of approximately 2,700 tons per day. And we have a brownfield tailings facility. To replace those 2 assets I think would probably have a replacement cost of well over $100 million."

The company's 2022 PEA estimated $50 million in capital expenditures would be needed to refurbish the mill, install new equipment such as a ball mill, construct a modern dry stack tailings facility, and add sorting technology. The existing infrastructure provides a ready connection to Quebec's hydroelectric power grid. As Mr. Mast stated, "The other value that we have is infrastructure in terms of connectivity to the Quebec hydroelectric grid."

While prevailing market conditions have delayed more detailed economic studies, Doré Copper has been working to optimize the project in preparation for an eventual restart. As explained by Mr. Mast, "We're currently doing certain smaller parts of the feasibility study, that advance at a relatively low cost." This includes additional metallurgical testing and environmental permitting activities focused on enhancing project economics.

Seeking Non-Dilutive Financing Amidst Tight Markets

With junior mining equity markets under pressure, Doré Copper has taken steps to reduce expenditures and conserve cash. The company is also pursuing non-dilutive financing options focused on securing government funding earmarked for critical minerals project development.

As Mast highlighted, "There's a couple of funds, Canadian based and also Quebec based, that we're looking into. And those would definitely be a really great push for us to move ahead the project without having to take on really heavy dilution in order to move forward."

He added that securing such funding would help demonstrate government support for the project and "definitely put us in the driver's seat in terms of charting a way forward without it being dilutive to our shareholders."

Downstream Partnerships Offer Potential Catalyst

Doré Copper is also having discussions regarding potential partnerships with copper concentrate buyers. The company already has an offtake agreement in place with base metal trader Ocean Partners. However, Mast noted significant copper smelter capacity coming online globally combined with supply shortfalls from two major copper mines could create opportunities for additional buyers.

As he stated, "Part of the metallurgical work that we did, we did produce a composite concentrate and we took assays of that composite concentrate and our concentrate is definitely one of the cleanest concentrates in the world." Such high-quality concentrate is advantageous for blending feedstocks in copper smelting operations.

Forming a partnership with a strategic downstream party could serve as a potential catalyst according to Mast. As he explained, "One is as I mentioned, look to join with a downstream partner in some way, shape or form. Another one is groups wanting to get into the copper industry - we're at an incredibly low entry point for any kind of individual or group wanting to get into the copper industry."

Exploration Upside

While focused on advancing Corner Bay to production, Doré Copper also sees exploration upside potential across its concessions. The company has identified possible near-surface expansion areas at Corner Bay along with high-grade gold targets that could provide co-product credits. Additional drilling is planned during 2024 to test these targets.

As summarized by Mast, "Our geology team have some ideas on some potential expansions of that deposit, closer to surface and that's something that we're going to test during 2024." He added, "We identified an undrilled structure which is just to the southwest of the Cedar Bay mine and we're going to be drilling that deposit."

The Investment Thesis for Doré Copper

• Near-term copper producer in stable Quebec jurisdiction leveraging extensive infrastructure worth over $100 million.
• Base case economics resilient even at today's copper prices based on PEA study. Significant optimization potential.
• Corner Bay production scalable over 10+ years via a "hub and spoke" approach drawing ore from multiple deposits.
• Exploration upside from possible Corner Bay expansion and new targets in underexplored land package.
• Pursuing non-dilutive government funding for critical minerals project advancement.
• Strategic partnerships with downstream copper industry participants offer value crystallization potential.

Doré Copper CEO, Ernest Mast, laid out a clear strategy centered around leveraging existing infrastructure and regional resources to fast-track a restart of the company's Corner Bay copper mining project at low capital intensity. While exercising fiscal restraint amidst recent market volatility, Doré Copper continues advancing technical de-risking activities focused on enhancing project economics. Securing non-dilutive government funding or forming a strategic downstream partnership could serve as potential catalysts for unlocking shareholder value from the company's copper assets in mining-friendly Quebec.