Source: Streetwise Reports 09/13/2024

Fitzroy Minerals Inc. FTZFF announced a major expansion of copper-in-soil anomalies at its Polimet Gold-Copper-Silver Project in Chile. The new soil geochemistry results highlight two continuous mineralized trends of 2.0 km and 1.9 km in length, alongside five additional anomalies ranging from 400 m to 1,000 m. These anomalies total 6.9 km and show significant expansion potential, particularly in a 450 m-wide zone at the southern end of one grid where no previous surface mineralization was indicated. This expansion follows the company’s earlier soil survey results reported on May 14, 2024.

Merlin Marr-Johnson, President and CEO of Fitzroy Minerals, spoke about these findings in the company news release, stating that they “highlight the mineral potential of Polimet” underscoring the project’s status as a high-priority drilling target.

Fitzroy’s soil sampling campaign included 800 samples, with 24% showing copper concentrations over 150 ppm, and 11% exceeding 200 ppm. The highest copper (Cu) concentration was measured at 993 ppm (0.1% Cu). The survey also correlated well with field and aerial observations, showing promising trends in both soil color and ASTER imagery data.

Digging Into Copper, Silver, and Gold Mining

Stockhead reported on September 13 that gold reached an all-time high of US$2,568/oz, driven by U.S. economic data and the anticipation of a potential interest rate cut by the Federal Reserve. ANZ commented that weak labor market data in the U.S., along with an uptick in initial jobless claims, raised the likelihood of an interest rate cut, further buoying the precious metals market. The rally in gold prices was also supported by investors buying back once-bearish bets, as money managers’ net short positions in Comex gold futures reached their highest level in four weeks by September 3.

This bullish trend in the gold sector is particularly relevant for companies such as Fitzroy Minerals, which continues to explore and develop projects like the Polimet Gold-Copper-Silver Project in Chile. Fitzroy Minerals’ CEO, Merlin Marr-Johnson, highlighted the recent soil geochemistry survey, noting that the Polimet project continues to deliver promising results. The discovery of multiple copper-in-soil anomalies, including two continuous trends measuring 2.0 km and 1.9 km, positions Polimet as a priority drilling target.

In terms of copper, Katusa Research pointed out on September 3 that its role in the global green energy transition is equally crucial. Copper is essential in electric vehicles, solar panels, and wind turbines, and the ongoing electrification of the world is set to increase its demand. Katusa emphasized that the mismatch between supply and demand is creating a “perfect storm” in the copper market, with inventories falling and prices expected to rise as industries scramble to secure this critical metal.

This growing deficit, combined with tightening market conditions, suggests a bullish future for copper prices, further supporting companies like Fitzroy Minerals, which are active in copper exploration.

Company Catalysts Section

The latest soil geochemistry results, as specified by the company, are expected to guide Fitzroy Minerals’ future exploration efforts at the Polimet project. The discovery of large-scale copper-in-soil anomalies across multiple kilometers enhances the company’s drilling strategy, with the anomalies acting as direct indicators for potential gold drilling targets within the gold-copper-silver system.

The Polimet project benefits from its proximity to the El Bronce Epithermal District, known for its significant gold and copper deposits. Fitzroy Minerals will build upon the current soil survey by conducting geophysical surveys and structural mapping to fine-tune their drilling targets.

Marr-Johnson noted, “Given these results and the significant infrastructure advantages of the area, Polimet is shaping up to be a priority drill target.” With further soil surveys and geophysical analysis planned, Fitzroy Minerals aims to capitalize on the promising indications of a robust mineral system, targeting high-grade pay shoots expected to be concentrated between 1,000 and 1,600 meters above sea level. The project’s strategic location and evolving data make it a key focus for the company’s upcoming exploration initiatives.

Expert Opinions Section

Michael Ballanger of GGM Advisory Inc., in his September 12 newsletter and covered on Streetwise Reports, provided a positive outlook on Fitzroy Minerals Inc., particularly regarding its Polimet Gold-Copper-Silver Project in Chile. He noted that Polimet is “a highly prospective copper-gold anomaly now believed to be far more extensive than originally thought.”

Ballanger expressed strong confidence in the company’s overall potential, stating that Fitzroy’s portfolio is “worth a great deal more than the current market cap of CA$21 million” implying significant undervaluation and investment potential.

In addition to his praise for the Polimet project, Ballanger highlighted that Fitzroy’s broader project portfolio, which includes two Chilean copper-gold projects and the Argentinian gold prospect Taquetren, positions the company well for future growth. He projected that with the upcoming drilling at Buen Retiro, Fitzroy’s market could move quickly into the CA$0.20 range. He also emphasized the substantial value of Buen Retiro, calling it “a company-maker” and one of the few projects in his 45-year career that has the potential to enrich shareholders in a meaningful way.

Ballanger’s analysis underscored his long-term belief in the gold and copper sectors, noting that while copper has faced headwinds due to concerns over China’s slowing economy, “gold has taken up the slack and risen to its rightful seat on the throne of all commodities.” His Buy recommendation on Fitzroy reflects his confidence in its dual focus on copper and gold, two metals he deems most promising for 2024 and beyond.

Ownership and Share Structure

According to Refinitiv, 6.67% of Fitzroy Minerals is owned by management and insiders. Of those, Executive Chairman Campbell Smyth owns the most, with 5.51%

5.18% of ownership is institutions, with CloudBreak Discovery Group holding the most at 5.18%. The rest is retail.

Fitzroy Mineral’s market capitalization is 10.08 million with 80.38 free float shares. The 52-week range for FTZ.V is US$0.02 – 0.18.

Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fitzroy Minerals Inc.
2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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