Solis Minerals to Acquire 75% of Cucho Copper Project, Plans 5,000m Drill Program

Strategic Acquisition in Peru’s Copper Belt

Solis Minerals Limited (ASX – SLM) has announced a binding agreement to acquire up to a 75% interest in the Cucho Copper Project, located in Peru’s Ancash Department. This staged earn-in deal includes an option to acquire 100% ownership, subject to shareholder approval. The Cucho Project is a large-scale copper-molybdenum-silver porphyry system with historical drilling confirming significant copper mineralisation from surface, making it a compelling addition to Solis Minerals’ growing South American portfolio.

The project’s location is strategically advantageous, situated just 44 kilometres from the Pacific coast and approximately 183 kilometres north-northwest of Lima. It benefits from excellent infrastructure, including proximity to provincial roads and the recently developed Chancay mega port, a key export hub for mineral products. The terrain is low-relief desert, favourable for mining infrastructure development.

Historical Drilling and Exploration Potential

Historical exploration at Cucho includes a 2014 diamond drilling campaign of approximately 2,000 metres across seven holes. These drill holes consistently intersected copper mineralisation from surface, with grades ranging around 0.23% to 0.28% copper, accompanied by molybdenum and silver credits. Notably, the drilling confirmed a vertical zonation from an oxide copper blanket near surface to primary sulphide mineralisation at depth, a classic signature of porphyry copper systems.

Despite these encouraging results, the 2014 drilling program was limited in scope and depth, leaving significant geochemical and geophysical anomalies untested, particularly to the north and northeast of the drilled area. Solis Minerals plans to target these untested anomalies with a 5,000-metre drilling program commencing in early 2026, aiming to delineate a maiden JORC-compliant resource and publish a preliminary economic assessment within 12 to 18 months.

Transaction Structure and Milestones

The acquisition is structured as a staged earn-in with low upfront cash payments and equity issuances tied to exploration milestones. Initial payments include a USD 100,000 exclusivity fee and a USD 300,000 exercise payment plus A$1 million in shares for a 20% interest. Subsequent payments and share issues are linked to securing drill permits, completing drilling programs, and achieving resource and prefeasibility study milestones, ultimately increasing Solis Minerals’ interest to 75%. The vendor, Quippu Exploraciones SAC, will be free-carried until the completion of the prefeasibility study milestone.

This staged approach is designed to de-risk the project, allowing Solis Minerals to validate exploration potential progressively while managing capital deployment. The company also retains an option to acquire 100% ownership within seven years for US$10 million.

Favourable Geology and Regional Context

Cucho is hosted within the Coastal Batholith of Peru, a prolific metallogenic belt that includes some of the country’s largest copper deposits. The project’s geological setting, alteration patterns, and mineralisation style are comparable to major porphyry copper projects such as Hudbay’s Mason and Constancia operations, Teck’s Zafranal, and Newmont’s Illari project.

Its proximity to Element 29 Resources’ Elida project, which hosts an inferred resource of over 321 million tonnes grading 0.32% copper, underscores the district-scale potential of the region. Additionally, major mining companies like Fortescue, Vale, and Newmont are actively exploring nearby, highlighting the area’s attractiveness.

Community Support and Infrastructure Advantages

The project benefits from consolidated surface land ownership under a single community landholder, which has recently renewed its support agreement for exploration activities. This arrangement is expected to streamline permitting and reduce development timelines. Access to hydropower and water sources, combined with high solar exposure, offers multiple power generation options, enhancing the project’s sustainability prospects.

Infrastructure access, including proximity to roads and ports, positions Cucho well for future development. The low-relief desert terrain further supports cost-effective mining infrastructure construction.

Looking Ahead

Solis Minerals’ acquisition of the Cucho Copper Project represents a significant step in its strategy to build a portfolio of Tier-1 copper-gold assets in South America. The upcoming drilling campaign and subsequent resource definition work will be critical in unlocking the project’s full potential. Alongside its existing projects, including Ilo Este and Cinto, Cucho adds depth and scale to the company’s exploration pipeline, promising a steady flow of news and value creation opportunities for shareholders.