Marimaca Copper - Drilling Expands Pampa Medina Norte Discovery

• Developing the Marimaca Oxide project in northern Chile's copper-rich region with complementary Pampa Medina project 25km away
• Recent results confirm high-grade mineralization with 80 meters at 1.2% copper, including 20+ meters at 2.5%
• Pampa Medina could nearly double in size, supporting production increase from 50,000 to 70-75,000 tonnes annually
• Finalizing DFS with permitting underway, positioning for near-term production versus years-away competition
• Centralized processing facility approach maximizes efficiency and extends mine life through multiple satellite deposits

Introduction to Marimaca Copper & Projects

Marimaca Copper (ASX listed) stands at a pivotal moment in its development journey, with CEO Hayden Locke recently announcing significant drill results that could reshape the company's production profile and investor appeal. The company is strategically developing two key assets in northern Chile: the flagship Marimaca Oxide project and the promising Pampa Medina exploration project.

"We're developing the Marimaca Oxide project in northern Chile, and also exploring, and we've announced some very exciting drill results at our Pampa Medina project, which is about 25 kilometers from our flagship Marimaca Oxide project," explains Locke, highlighting the geographic advantage of having complementary assets within a manageable distance.

The Pampa Medina project has already demonstrated substantial potential with a historical resource of approximately 40 million tons at 0.7% copper. However, recent drilling suggests this could be just the beginning of a much larger discovery. The strategic positioning of these assets allows Marimaca to implement a hub-and-spoke development model, where a centralized processing facility can handle ore from multiple deposits, significantly improving operational efficiency and economics.

This approach is particularly valuable in Chile's mining landscape, where infrastructure development costs can be prohibitive. By leveraging shared infrastructure between projects, Marimaca can maximize returns while minimizing capital expenditure, creating a compelling investment proposition in an industry where operational efficiency increasingly determines success.

Interview with President & CEO, Hayden Locke

Exciting Drill Results & Mineralization Insights

The latest drill results from Pampa Medina have exceeded management expectations and confirmed the presence of two distinct mineralization styles that could significantly expand the project's potential. The key hole, SMDO2, was specifically designed to test the extension of mineralization identified in a previous exceptional drill hole (SMRO1) that was terminated at 650 meters due to rig limitations.

"This hole was designed to confirm the results from SMRO1 and then extend significantly into the lower horizons to see if that boronite and chalcopyrite mineralization extended," Locke notes. The results were impressive: approximately 80 meters of mineralization at over 1.2% copper, including a higher-grade zone exceeding 20 meters at 2.5% copper.

What makes these results particularly exciting is the discovery of what appears to be two stacked manto-style deposits with different mineralization characteristics. The upper unit contains the oxide mineralization that extends the known Pampa Medina horizon, while deeper drilling has revealed significant primary sulfide mineralization, including bornite and chalcopyrite.

The presence of bornite is especially significant in this geological setting. As Locke explains:

"What was really important at Cachorro was the Bornite in that system indicated that you were coming to the center of the system."

Cachorro, developed by Antofagasta Minerals, represents a tier-one discovery with over 300 million tonnes at over 1% copper, and Antofagasta continues to invest $200 million in exploration to potentially double that resource.

Additionally, the discovery of polymetallic mineralization including galena and sphalerite in the lower portions of the hole suggests multiple mineralization events and potential for by-product credits that could further enhance project economics.

Understanding the Structural Architecture of Pampa Medina

The geological understanding of Pampa Medina is evolving rapidly, with each drill hole providing crucial insights into the structural controls and mineralization patterns. The recent drilling has revealed that the deposit is not simply a single manto but rather a complex system with multiple horizons and structural controls. Locke explains:

"We now think there are two stacked mantos, one on top of the other, and they're two different styles of mineralization, which obviously presents two opportunities,"

This interpretation suggests that Pampa Medina could support both oxide heap leaching operations and potentially sulfide processing in the future.

The structural architecture appears to be controlled by dike systems and faulting, which create both challenges and opportunities. "We're gradually getting a better understanding that the dike systems that cross cut these deposits are very important controls of mineralization. There are some that are barren, there are some that are mineralized," notes Locke.

Despite the complexity, the mineralization appears remarkably continuous along strike.

"It looks very continuous, a long strike to the north, north east. And there are clearly controlling structures on either side of Pampa Medina," Locke confirms.

The team believes they're looking at "one continuous big manto system extending over probably five by four kilometres with variable grades in the horizons."

This continuity is crucial for mine planning and resource development, as it suggests the potential for long-term, sustainable mining operations rather than isolated high-grade pockets that could be quickly depleted.

Strategic Planning & Future Exploration

Marimaca's exploration strategy balances aggressive discovery with prudent capital allocation, particularly important given current market conditions. The company has outlined a three-pronged approach to maximize the value of its Pampa Medina discovery while advancing its flagship Marimaca project toward production.

"The strategy will become, and this is subject to us getting these results back, we will likely focus on some infill drilling between SMR and SMDO1 back to the Pampa Medina deposit," explains Locke. This approach aims to establish an inferred resource for the northern extension, potentially linking it with the existing Pampa Medina deposit and nearly doubling the strike length.

The second phase involves periodic deeper drilling to test the continuity of the sulfide-bearing conglomerate horizon. This methodical approach allows the company to understand the three-dimensional geometry of the mineralization while managing exploration costs effectively.

The third component focuses on Madrugador, another acquired deposit that requires drilling to extend mineralization and bring it into current NI 43-101 compliance. This work would enable its inclusion in the integrated development study currently underway.

Given current market volatility and trade war uncertainties affecting copper prices and equity markets, Marimaca is taking a measured approach to funding. Locke acknowledges:

"We would have liked to have raised a significant amount of money to go out and really go hard on the drilling. But we're also equally mindful that we don't want to be diluting at a price that we think is lower than it should be relative to the value that we have in our projects."

Integration Study & Development Strategy

The integration study being conducted by Stantec represents a crucial milestone in demonstrating the technical and economic viability of incorporating Pampa Medina into Marimaca's development plans. This study will evaluate processing the oxide portion of Pampa Medina through the planned centralized processing facility at Marimaca.

"It's important to us that we get that integration study out so that we can say we have confirmed at a PEA level that this is both technically and economically viable and add significant value to Marimaca."  

The study aims to justify a production increase from the contemplated 50,000 tonnes in the DFS to 70-75,000 tonnes annually for an extended period.

The metallurgical characteristics appear favorable, with Locke noting:

"We have a fairly good indication of what those recoveries are going to be, and it's very acid soluble, so high recoveries. We would expect better recoveries than at Marimaca."

This suggests that Pampa Medina ore could actually improve the overall processing performance of the combined operation.

Importantly, the development strategy doesn't change Marimaca's timeline to production.

"Marimaca is very well advanced. We're in the final throes of our DFS. We are in our permitting phase and that's all going really well," confirms Locke. These projects will be "several years behind Maramaka in terms of their maturity and therefore our ability to take them into production."

The hub-and-spoke model remains central to the strategy, allowing Marimaca to bring its main asset into production quickly while developing satellite deposits that can extend mine life and increase production scale once the initial project is generating cash flow.

The Investment Thesis for Marimaca Copper

• Near-Term Production: Unlike many copper development projects that face years of development, Marimaca is finalizing its DFS and advancing through permitting, positioning it for production in the near term when copper supply deficits are expected to intensify
• Scalable Production Profile: The integration of Pampa Medina could increase production from 50,000 to 70-75,000 tonnes annually, making Marimaca "the sixth largest proper project on the ASX" and moving it into the globally significant category
• Multiple Value-Creation Catalysts: With ongoing DFS completion, integration study results, resource expansion at Pampa Medina, and potential discovery of a Cachorro-style sulfide system, investors have multiple near-term catalysts for value creation
• Strategic Asset Portfolio: The hub-and-spoke model, featuring the advanced Marimaca Oxide project supplemented by Pampa Medina and Madrugador, creates operational synergies and extends mine life beyond typical single-asset operations
• Favorable Jurisdiction and Infrastructure: Operating in Chile's established mining region provides access to skilled labor, existing infrastructure, and a proven regulatory framework that reduces development risk compared to frontier mining jurisdictions
• Optionality on Sulfide Discovery: While focusing on oxide production, the presence of significant bornite and chalcopyrite mineralization provides long-term optionality for a much larger sulfide operation, similar to major discoveries in the region

Marimaca Copper represents a rare opportunity in today's mining landscape: a company with near-term production potential, multiple expansion opportunities, and strategic assets in a premier mining jurisdiction. As copper supply deficits loom and new projects become increasingly scarce, Marimaca's combination of advanced development status and significant growth potential through resource expansion makes it a compelling investment opportunity for those seeking exposure to the coming copper supply crisis. The company's measured approach to capital allocation and strategic development positions it to capitalize on higher copper prices while building a sustainable, long-term operation that could become a significant player in the global copper market.

The Copper Supply Crisis: A Perfect Storm for Marimaca

The global copper market faces an unprecedented supply-demand imbalance that creates a compelling investment backdrop for companies like Marimaca Copper. Years of underinvestment in new copper projects, combined with depleting grades at existing mines and growing demand from electrification trends, have created a supply shortage that experts predict will persist throughout the decade.

The electrification revolution, driven by electric vehicles, renewable energy infrastructure, and grid modernization, is fundamentally reshaping copper demand. Each electric vehicle requires approximately 185 pounds of copper compared to 55 pounds in conventional vehicles, while wind turbines demand 3-5 times more copper per megawatt than traditional power generation. This demand surge coincides with a pipeline of new copper projects that is dramatically insufficient to meet requirements.

Recent trade tensions and supply chain disruptions have further complicated the supply picture, with many countries seeking to secure copper resources within friendly jurisdictions. Chile, despite some political uncertainty, remains one of the world's most attractive copper mining destinations, offering political stability, established infrastructure, and proven geology. This positions Chilean copper developers like Marimaca particularly well to capitalize on the evolving market dynamics.

The timing could not be better for Marimaca's development strategy. While major mining companies struggle with declining grades and increasing costs at aging operations, Marimaca is advancing new, high-grade deposits that can benefit from modern mining and processing technologies. The company's near-term production timeline means it will enter the market during the most severe supply constraints, potentially commanding premium pricing for its product. This perfect storm of favorable market conditions, strategic assets, and optimal timing creates a compelling investment opportunity for those seeking exposure to the copper story through a company positioned to become a meaningful new supply source in the coming years.