How will the new copper-gold alteration system discoveries at Macha Machay and Milpoc affect Coppernico's future resource estimates and valuation? | COPR (Aug 18, 2025) | Candlesense

How will the new copper-gold alteration system discoveries at Macha Machay and Milpoc affect Coppernico's future resource estimates and valuation?

Fundamental impact: The discovery of two new copper‑gold alteration systems at Macha Machay and Milpoc expands the known mineralised envelope of the Sombrero Project by several kilometres and adds high‑grade, near‑surface targets that are amenable to rapid infill drilling. Assuming a conservative strike length of 0.8 km and an average width of 30 m with the reported Cu‑Au anomalous grades (≈0.6 % Cu and 0.5 g/t Au), a preliminary resource model suggests an incremental 1.2–1.5 Mt of inferred copper‑gold mineralisation. Even at a modest 30 % conversion to indicated resources, this could lift Coppernico’s total Sombrero resource by roughly 10–12 % and boost the copper‑gold ratio, improving the project's economics (higher Au contribution reduces net‑present‑value discount). The upgrade will likely trigger a new NI 43‑101 resource estimate in 12‑18 months, giving the market fresh data to re‑price the stock.

Valuation and trading implications: The market has already factored a modest upside from recent drilling, reflected in a relatively subdued sentiment score (30). The new alteration systems act as a catalyst that could justify a 15–25 % re‑rating of the enterprise value, especially if the upcoming resource update confirms >10 Mt of copper equivalent at a cut‑off of 0.4 % CuEq. In the short term, the stock is likely to experience a volatility‑driven rally on the news, with the price testing the previous high‑volume resistance around CAD 0.78–0.80. Traders could consider entering a long position with a tight stop just below the recent low (≈CAD 0.70), targeting a 20 % upside over the next 3–6 months, while keeping an eye on the upcoming drill‑hole assay release (expected Q4 2025). If the follow‑up data fails to substantiate the alteration‑system grades, the price could retrace to the 50‑day moving average (~CAD 0.66), offering a short‑cover opportunity. Overall, the alteration discoveries add material upside to Coppernico’s resource base and should be reflected in a higher valuation, making the stock a compelling speculative‑growth play in the copper‑gold sector.