Mantoverde-Santo Domingo district integration

Growth

The Company’s next phase of transformational growth will be a construction decision and integration of the Santo Domingo project.  The development of Santo Domingo is key to unlocking district synergies in the world-class Mantoverde-Santo Domingo (“MV-SD”) district.

In November 2022, Capstone announced the Mantoverde-Santo Domingo (“MV-SD”) District Integration Plan (the “Plan”) to showcase the path towards creating a world-class mining district in the Atacama region of Chile, targeting low-cost copper production with the potential to also become one of the largest and lowest cost battery grade cobalt producers in the world outside of the Democratic Republic of Congo.  In 2024, Capstone announced updated Feasibility Studies for Mantoverde and Santo Domingo, which further support the potential for mine life extension and optimization in the district. 

The ability to leverage district-scale synergies presents an opportunity to unlock operating cost savings, while also enabling additional copper and cobalt production – through utilizing excess SX-EW capacity,  infrastructure capital savings, and the potential for significant tax synergies through the reinvestment in Chile to support district growth. The combination of key infrastructure already in place alongside an experienced mine building and operating team significantly de-risks the future development of the Santo Domingo Project and the District.

Geology and exploration

Capstone Copper has significant untapped exploration potential within MV-SD district. The Mantoverde Optimized plan was prepared without completing any expansionary drilling since 2019. At Mantoverde, there are approximately 200 million tonnes of M&I and 550 million tonnes of Inferred sulphide resources not in reserves. Exploration targets also include the northern extension (~10km long) of the projection of the prospective Atacama fault system. At Santo Domingo, there are over 100 million tonnes of M&I and over 200 million tonnes of Inferred sulphide resources not in reserves. The recently acquired Sierra Norte property also represents an opportunity to potentially be a future feed source in the district.

Capstone Copper intends to progress its exploration strategy to service its two eventual processing centers between Mantoverde and Santo Domingo, in addition to drilling that is currently underway at Mantoverde to evaluate the potential for Mantoverde Phase II, which could include the addition of an entire second processing line at Mantoverde. The program will first target the areas closer to MV Optimized pit focusing on improving copper grades and mineralization continuity within and nearby the pit boundaries. The program will also test areas to the north of the pit to potentially increase the mineral resource. An Induced Polarization (IP) geophysical survey was completed in 2025 at Mantoverde with the focus to cover the northern extension (~10km long) of the projection of the prospective Atacama fault system. At Sierra Norte work commenced with a revision and validation of the historic drilling database and geological model.