Copper – The Cornerstone of the Energy Transition

Disseminated on behalf of Prismo Metals

As the global economy pivots toward decarbonization, copper has emerged as a critical material for the 21st century. Known as “Dr. Copper” for its ability to gauge economic health, this versatile metal is indispensable for renewable energy systems, electric vehicles (EVs), and grid infrastructure, driving exponential growth in demand.

Wind turbines, for instance, require approximately 5.5 tons of copper per megawatt, while EV’s consume 2.5 to 4 times the amount of copper used in traditional internal combustion vehicles. Solar panels and energy storage systems similarly depend on copper for their wiring and connectivity.

Source: BloombergNEF Transition Metals Outlook 2023. The line represents demand and the shaded area represents supply. Demand is based on a net-zero scenario, i.e., global net-zero emissions by 2050 to meet the goals of the Paris Agreement. Included for illustrative purposes only.

But global supply is becoming increasingly constrained.

Aging mines, declining ore grades, and geopolitical challenges have contributed to a looming copper supply deficit with analysts projecting a 7.9 million ton shortfall by 2035 unless new resources are discovered and developed. This supply gap is driving nations to prioritize domestic mining to secure their critical metal supply chains.

And this is where Prismo Metals comes in.

Prismo Metals’ Hot Breccia project in Arizona’s Copper Belt is positioned to not only meet the surging demand of U.S. produced copper, but its geological potential and location in a premier mining jurisdiction make it a strong contender to address the global supply-demand imbalance.

With copper prices trending above $4/lb and expected to climb further, securing access to quality copper assets today presents a rare investment opportunity. Combining climbing copper prices with the high-grade gold-silver of Prismo’s Palos Verdes and Los Pavitos projects, Prismo is positioning itself at the forefront of the green economy’s resource needs.  

Source: Bloomberg. Data as of 12/31/2023. The copper spot price is measured by the LME Copper Cash ($), Copper Miners is measured by the Solactive Global Copper Miners Index. Included for illustrative purposes only.

It is for this reason, and the 4 others I have listed below, that I will be adding Prismo Metals (CSE: PRIZ) (OTCQB: PMOMF) to my long-term investment watchlist.

Company Overview

Prismo Metals (CSE: PRIZ) (OTCQB: PMOMF) is a growth-stage exploration company led by a team of experienced mining professionals with a track record of successful discoveries. The team is focused on creating shareholder value by acquiring, exploring and developing precious and base metal projects in Mexico and the USA. Their flagship project, Hot Breccia, is a property that consists of 1,420 hectares of contiguous mining claims located in the world-class Arizona Copper Belt.

Prismo is also actively exploring two precious metal projects in Mexico (Palos Verdes and Los Pavitos). The Palos Verdes Project is a 22.8-hectare property located in the historic Panuco-Copala silver-gold district in southern Sinaloa, Mexico. The Los Pavitos project consists of 5,289-hectare property located in southern Sonora, Mexico.

Not only are these projects located in highly favorable geological settings with significant historical and recent exploration results, these assets are positioned for potential buyouts by strategic partners, presenting a compelling investment opportunity with attractive upside potential.

Prismo Metals (CSE: PRIZ; OTCQB: PMOMF)

  • Float: 33.5M
  • Shares Outstanding: 54.17M
  • Insider/Founders Ownership: 28.6%
  • Viszla Silver (NYSE: VZLA): 9.4%
  • Market Cap: 8.802M
  • Total Cash on Hand: 1.59M

Hot Breccia Project – A Transformative Copper Discovery

As the old saying goes, “Location, Location, Location.”  Situated in Arizona’s Copper Belt and home to major mines like Morenci, Resolution, and Ray, the Hot Breccia project spans 1,420 hectares across 227 contiguous claims. This region has produced billions of pounds of copper, with Hot Breccia showing geological parallels to the historic Christmas Mine, is just 4 km away. Historic data also suggests significant copper-bearing breccias with grades up to 5.69% Cu and associated high zinc and gold values.

Geological & Historical Significance

  • The fully permitted property sits atop mineral-rich Paleozoic carbonate rocks, known for hosting copper skarn mineralization like that of the Christmas Mine, a historical copper producer with over 482 million pounds of copper mined at 1.8% Cu (alongside significant gold and silver credits).
  • Historic drilling by Bear Creek (1972-1974) confirmed strong copper anomalies and intersected quartz diorite porphyry with copper mineralization to the bottom of drill hole OC-1. Modern ZTEM surveys have since identified a substantial, previously untested, conductive body – suggesting a large-scale porphyry deposit.

ZTEM Survey and Modern Exploration

  • In 2023, a ZTEM survey indicated a massive anomaly directly beneath surface breccias. The anomaly shares dimensions and characteristics with the Resolution Deposit, one of Arizona’s largest copper systems. Sampling programs revealed grades as high as 5.9% copper and associated gold, making this project particularity attractive for exploration.

In an effort the further validate the ZTEM survey, Prismo recently received results from an AI study at Hot Breccia, providing support for the Company’s exploration plan at the project; identifying the most likely location for a large body of sulfide mineralization in the same general area as historic drilling. This upcoming $2M drilling (5,000m) campaign could transform Hot Breccia into a tier-one discovery.

Strategic Acquisition Potential?

Rio Tinto, through its subsidiary Kennecott, has previously explored the property and remains a likely acquirer. Fully permitted with existing road access and minimal infrastructure hurdles, should Prismo’s drilling program confirm a significant copper resource this project would align with Rio Tinto’s strategy of expanding its copper footprint in the United States.

Palos Verdes: A Logical Acquisition for Vizsla Silver

Located in Mexico’s Panuco district, a world-class silver-gold belt, Palos Verdes boasts proximity to Vizsla Silver Corp (NYSE: VZLA) operations, making it also a prime consolidation target.

Project Highlights:

  • Over 6,000m drilled (across 33 holes) in the past three years, delivering exceptional results. Drill intercepts of 102 g/t gold and 3,100 g/t silver (11,520 g/t AgEq) over 0.5 meters – among the highest grades reported in the district​.
  • A planned 3,000-meter drill program with a focus on expanding known mineralization and testing deeper zones is currently underway, with results expected shortly.

Partnership with Vizsla Silver

Viszla Silver is Prismo’s largest shareholder, owning 9.4% of the company, and a Right of First Refusal (ROFR) on the Palos Verdes property.

As Vizsla consolidates the Panuco district, Palos Verdes offers:

  1. High-grade silver and gold resources to expand its reserve base.
  2. Operational synergies by integrating nearby properties​

In an interview with Michael Konnert, Vizsla CEO, Michael commented that “we likely will acquire that property at some point,” underscoring the buyout potential. Drill pads are already located on Vizsla’s property, demonstrating the strength of their joint technical committee collaboration.

Surrounded by Vizsla Silver’s holdings, this Palos Verdes project fits seamlessly into Vizslas plans to develop a large-scale, streamlined operation in the Panuco district. With a billion-dollar market cap and plans for significant production, Vizsla stands to gain operational synergies by acquiring Palos Verdes and would be the natural strategic buyer for Prismo.

Undervalued Market Opportunity

Prismo Metals (CSE: PRIZ) (OTCQB: PMOMF) market cap of $9 million (CAD) significantly undervalues its high-quality assets. Similar early-stage exploration companies in Arizona and Mexico trade at much higher valuations. Additional upside lies in:

  • Catalysts: Upcoming drill results and potential buyout interest could lead to significant share price appreciation​.
  • Tight Share Structure: With a float of 33.5 million shares and insider ownership of 28.6%, Prismo has limited dilution risk and strong alignment between management and shareholders​

Strategic partnerships with major players such as Vizsla also reduce exploration risk and provide a clear path to unlocking shareholder value through potential acquisitions.

Financial Backing:

  • Raised $5M in late 2022/early 2023 at an average price of ~$0.50, nearly double the current trading price.
  • Includes a $2M strategic investment from Vizsla and $3M at $0.52 / share from institutions.

Management – A Strategic Blend of Expertise

Prismo Metals’ management team combines extensive experience in mining exploration and capital markets, creating a strong foundation for project execution and shareholder value creation. Also notable (and which speaks the to not only the quality of the project, but the people) is that Management have zero fixed salaries suggesting they need to drive value in order to make money themselves:

  • Dr. Craig Gibson (Co-Founder & Chief Exploration Officer): A seasoned geologist with a strong track record of discoveries, Dr. Gibson’s technical expertise drives the company’s exploration strategy.
  • Steve Robertson (President): Brings decades of operational and executive experience in the mining sector, particularly in developing exploration projects into producing assets.
  • Alain Lambert (CEO): A capital markets veteran with deep connections in financing and corporate development, Lambert ensures Prismo is well-capitalized and strategically positioned for growth.
  • Dr. Peter Megaw (Advisor & Significant Shareholder): Renowned in the mining world for his role in major discoveries, Megaw’s involvement adds substantial credibility to the company’s projects.
  • Carmelo Marrelli (CFO): With a strong background in financial management and compliance, Marrelli ensures fiscal responsibility and operational efficiency.

This team’s combination of technical expertise and capital markets acumen positions Prismo Metals to execute on its exploration programs, attract strategic partners, and negotiate potential buyouts effectively.

Conclusion

Prismo Metals (CSE: PRIZ) (OTCQB: PMOMF) is uniquely positioned to capitalize on high-potential copper and silver projects in top-tier mining districts. With strategic acquisition appeal, undervalued assets, and upcoming exploration milestones, Prismo represents an exceptional opportunity for investors seeking exposure to the junior mining sector.

Its flagship Palos Verdes Project, surrounded by Vizsla Silver, is delivering bonanza-grade results and is already positioned for a strategic acquisition. Meanwhile, the Hot Breccia Project offers world-class copper potential in a prime jurisdiction. Prismo’s management team, with deep expertise and shareholder-aligned incentives, combined with a tight share structure, ensures focused execution on exploration programs and value creation. At current undervaluation levels, Prismo Metals provides an asymmetric risk-reward profile that is hard to ignore.

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