Mogotes Secures Critical Ground on Strike from BHP's Filo Acquisition

• Mogotes Metals is a copper-gold exploration company with a strategic land position directly adjacent to Filo Mining's Filo del Sol discovery (recently acquired by BHP-Lundin for C$4.5B) in the Vicuña District of Argentina.
• The company has identified multiple large-scale exploration targets across its property, with many untested by drilling, and has recently optioned additional claims to secure the projection of the Filo del Sol trend.
• The company has conducted extensive geophysical surveys (MT, IP, 3D IP), geological mapping, and geochemical sampling to develop systematic drill targets, with work confirming advanced argillic alteration systems continuing from Filo del Sol.
• Key targets include Meseta (located on the Mogotes-Filo property boundary), Camino, Rincon, Cruz del Sur, and Colorida, with plans to begin drilling in October 2025.
• The company is led by an experienced management team including CEO Allen Sabet, Chairman Peter Mullens (35+ years in mining, 25 in Argentina), and Technical Advisor Stephen Nano (former VP Exploration and CEO of Mirasol Resources).

Mogotes Metals Inc. is a copper-gold exploration company strategically positioned in Argentina's prolific Vicuña District, directly adjacent to the Filo del Sol discovery that was recently acquired by BHP-Lundin for C$4.5 billion. In a recent interview, CEO Allen Sabet outlined the company's systematic approach to exploration and its strategic advantages in the region.

The company's Filo Sur Project sits on trend with Miocene Age deposits including Filo del Sol, Lunahuasi, and Los Helados in a district that has seen multiple large copper discoveries.

Company Background & Exploration Philosophy

Founded approximately two and a half years ago, Mogotes Metals went public in June 2024 but has been working on the project for over two years prior to listing. The company has taken a methodical approach to exploration, learning from successful neighbors in the district.

Sabet, with a background in strategy consulting at McKinsey and prior experience in technology, brings a different perspective to mineral exploration. 

"We've been following in the pathway and standing on the shoulders of giants. The Lundin group have done a great job here of taking a part of this long Andean porphyry belt... we can take those same tools and we have taken those same tools but accelerated the timeline substantially."

Rather than rushing to drill, Mogotes has invested in comprehensive data collection and analysis. It has enabled the company to identify multiple previously unrecognized exploration targets.

"To mitigate the risk of drilling into nothing, we take a step back and we do a full property-wide systematic program which involves significant mapping, significant sampling, geophysics across the whole property."

Strategic Land Position & New Claims

One of the company's key strengths is its land position. The Filo Sur Project is located directly south of Filo Mining's ground, with the geological trends continuing across the property boundary. Most recently, Mogotes announced the optioning of new claims that secure the projection of the Filo del Sol trend.

"We've locked up strategically over the last two years any open ground that was there and now we've closed that with our most recent transaction."

This strategic acquisition completes their land position along the same geological belt that hosts major discoveries. The company's properties are situated directly along the Middle Miocene Belt where alteration continues from the Filo del Sol property. The newly optioned claims extend HSE (high-sulfidation epithermal) targets and complete the target picture across the property boundary.

Exploration Approach & Technical Differentiators

Mogotes has invested over $10 million in exploration work to date, focused on gathering comprehensive data using multiple exploration techniques. The company has built approximately 30-40 km of new tracks and rehabilitated another 30-40 km to facilitate exploration across the property. Sabet noted that Mogotes has replicated successful methodologies used at Filo del Sol: 

"The tools they've [Filo Mining] used are MT geophysics... IP geophysics... alteration analysis from satellite imagery. We've engaged many of these geologists to come and work with us, we've engaged many of the expert geophysical providers to come and do the work on our property."

This systematic work has revealed compelling exploration targets. Many extensive geophysical anomalies have been found across the Filo Sur project in MT and IP surveys, with patterns similar to those at Filo del Sol where drilling has returned significant intercepts. Additionally, district-scale copper and gold anomalies in soil sampling are contiguous with Filo del Sol's geochemical footprint.

"We see very interesting patterns there at the surface and in the geophysics already from the interim work that's come through."

Interview with Chief Executive Officer, Allen Sabet

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Key Exploration Targets

The company has identified multiple large-scale exploration targets across the property, with many untested by drilling. Primary targets include:

• Meseta Target: A high-priority target located on the Mogotes-Filo property boundary, with reconnaissance rock chip sampling assays of up to 1.48 g/t Au and 3.6 g/t Ag from vuggy silica structures and breccias. The target is located just 1.2 km from Filo's drill hole FSDH116, which intersected 610m at 0.39 g/t Au, 0.15% Cu, and 2.2 g/t Ag. Geophysical anomalies indicate targets approximately 400m below surface.
• Camino Target: Features phyllic alteration with jarosite overprint and copper, molybdenum, and arsenic in surface soils. A large chargeable cloud surrounds conductive targets from both MT and DDIP surveys, with the top of the pipe target approximately 140m below surface.
• Rincon Target: A newly identified trend of mineralization running several kilometers north-south. Trenching has found wide intervals of anomalous copper and gold, with the company's 2024 trench reporting 150m at 0.23 g/t Au, 1.4 g/t Ag, 620 ppm Cu, and 461 ppm Zn.
• Cruz del Sur Targets: Magnetic chargeable targets untested by drilling, with potential outflows detected in recent drilling (134m @ 0.22 g/t Au). These targets are close to surface and at lower altitude than others.
• Colorida Zone Targets: Two large conductive and chargeable anomalies surrounding a newly recognized HSE breccia pipe, with targets sitting beneath anomalous copper in soils and rock chips.

"It's a very well-endowed district and we've got a large piece of it." 

Near-Term Plans & Catalyst Timeline

The company is currently finalizing plans for its first comprehensive drill program, scheduled to begin in October 2025. This timing aligns with the seasonal work window in the high Andes.

"We're going to be designing a drill program that will start in October this year and actually wholesomely test all of our best targets with the benefit of having the data that we need to make the best decisions."

The company plans to complete additional geophysical work on the newly optioned claims before drilling. In the immediate term, Mogotes is conducting trenching work to further define drill targets, particularly at Rincon. Sabet explained their planned approach that reduces risk before committing to expensive drill holes.

 "We were able to take the approach of doing long trenches over the top of these multi-kilometer targets to generate as much surface data as possible." 

Financial Position & Investor Base

As of February 2025, Mogotes Metals had a market capitalization of approximately C$33 million, with C$8 million in cash. The company has 247.5 million common shares outstanding, with management and insiders holding 18%, institutional investors holding 36%, and 43% held by retail investors.

Sabet emphasized the company's efficient use of capital: 

"We've taken most of the money directly into the ground really, the majority I would say... definitely more than 80%." 

This focus on maximizing exploration value has helped attract institutional investors despite being a small-cap exploration company.

"My expectations of shareholders institutional-wise is that they understand the process of exploration and discovery, knowing that if we find something as you said even half the size of Filo, this could be substantial." 

The Investment Thesis for Mogotes Metals

• Strategic Location: Directly adjacent to Filo del Sol deposit recently acquired by BHP-Lundin for C$4.5B, with geological trends continuing directly onto Mogotes ground
• Undervalued Exploration Potential: Market cap of only C$33M despite controlling a significant portion of a district with demonstrated multi-billion dollar discoveries
• Systematic De-risking: Over $10M invested in comprehensive geophysical, geochemical and geological work to identify and prioritize multiple drill-ready targets
• Experienced Technical Team: Led by Stephen Nano (former Mirasol Resources CEO) and Raymond Jannas (involved in multiple major discoveries), with specific expertise in porphyry and epithermal systems
• New Property Acquisition: Recently optioned additional ground securing the projection of the Filo del Sol trend, enhancing discovery potential
• Catalyst-Rich Timeline: Drilling program scheduled to begin October 2025, with results to follow as first significant test of multiple targets
• Strong Cash Position: C$8M in treasury (as of February 2025) to fund planned exploration work
• Institutional Support: 36% of shares held by institutions including Sprott Funds, unusual for an early-stage explorer
• Copper Market Exposure: Pure-play exposure to copper, a metal critical for the energy transition facing projected supply deficits
• Acquisition Potential: Success at any of the targets could attract interest from neighboring majors already operating in the district

Macro Thematic Analysis

The global copper market is facing an unprecedented supply-demand imbalance. As the world pushes toward electrification and renewable energy to meet climate goals, copper demand is projected to double by 2035. Meanwhile, copper mine supply is constrained by declining ore grades at existing operations and a dearth of new major discoveries over the past decade.

The Vicuña District represents one of the few areas globally with potential for multiple world-class copper deposits. BHP's recent C$4.5 billion acquisition of Filo Mining demonstrates major miners' willingness to pay premium prices for quality copper assets in anticipation of future supply constraints. Mogotes Metals offers exposure to this same geological trend at a fraction of the valuation.

The strategic importance of securing copper supply is underscored by increased competition between major mining companies for quality assets. As CEO Allen Sabet notes:

 "We're next to probably the biggest potentially the biggest future copper mine in the world. We've locked up strategically over the last two years any open ground that was there and now we've closed that with our most recent transaction."

For investors seeking exposure to the copper thematic, early-stage explorers with strategic land positions adjacent to major discoveries offer asymmetric upside potential, particularly when backed by systematic exploration approaches and experienced technical teams.