Kobrea Enters into Option Agreement to Acquire Copper Porphyry Portfolio in Argentina

Kobrea Exploration Corp. is a mineral exploration and development company focused on the acquisition and exploration of base metal projects in the Americas.

Kobrea Exploration Corp. has announced that it has entered into an exclusive option agreement dated August 14, 2024, to acquire up to a 100% interest in certain mineral properties in the Mendoza province of Argentina (the "Western Malargüe Copper Projects" or the "Properties"), subject to a 1.5% net smelter return royalty ("NSR") in favour of the optionors.

Highlights:

• Seven projects comprising a total of 73,334 hectares (733 square kilometres)
• Two mapped and sampled Cu-Au-Mo porphyry systems by Vale Exploration Argentina
• 12 porphyry targets identified in historical exploration
• No historical drilling, neighbouring projects granted drill permits for the first time in 2024
• Road access and nearby infrastructure
• Five-year option agreement for Kobrea to earn a 100% interest in the property portfolio

"The execution of the Option Agreement represents a major milestone for the Company. The properties feature underexplored copper-gold-molybdenum porphyry systems within a world class porphyry belt where, in 2024, several neighbouring projects have had drilling permits granted for the first time," commented James Hedalen, CEO.

Western Malargüe Copper Projects

The Western Malargüe Copper Projects lie within the Neogene Porphyry Belt that straddles the border between Central Argentina and Chile (Figure 1). This world-class belt includes the Los Bronces / Rio Blanco and El Teniente porphyry copper deposits, representing the 2nd and 3rd largest copper deposits in the world, respectively, in terms of contained copper.1 The Properties are situated 80 kilometres south of El Teniente and 70 kilometres west of the City of Malargüe.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10375/220339_19d9f1511460ea32_001full.jpg

Seven mineral properties covering 73,334 hectares comprise the Western Malargüe Copper Projects: Sofi, El Perdido, Mantos de Cobre, Cuprum, Elena, Veronica and El Destino (Figure 2). The Properties are considered highly prospective for porphyry copper and porphyry copper-gold deposits. Several porphyry targets have been outlined at surface by previous operators, most notably VALE Exploration Argentina between 2010 and 2013, although no drilling has been completed on the Properties to date. Copper porphyry targets outlined to date exhibit multi-kilometre hydrothermal alteration footprints, anomalous copper ± gold ± molybdenum geochemistry, quartz stockwork veining, localized hydrothermal breccias and Miocene aged dacitic to dioritic porphyry intrusions.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10375/220339_19d9f1511460ea32_002full.jpg

The Province of Mendoza

Mendoza is one of the most thriving economies in Argentina, containing a bioceanic corridor that connects the Atlantic with the Pacific Ocean. The government of Mendoza has been working to promote mineral exploration and mining the province of Mendoza over the past several years. Through Impulsa Mendoza SA, a vehicle adopted by the province of Mendoza, they are seeking to develop a modern and sustainable mining sector. Impulsa Mendoza's goal is to encourage and attract private investment to the mining sector, always seeking projects with public-private participation.

The Western Malargüe Mining District

The Western Malargüe Mining District (WMMD) (Figure 3) is a tool developed by the Government of the Province of Mendoza through Impulsa Mendoza SA to respond to the challenge that the energy transition represents for the world. Impulsa Mendoza SA has developed a detailed environmental impact study in the entire WMMD area. It has also carried out studies of geological and infrastructure potential to shorten the times required for the exploration of mining projects.

"These studies have made it possible to determine that the region is very suitable for mining development, as it has enormous geological potential and there is no competition for the use of land or water with any other productive activity." - Impulsa Mendoza

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10375/220339_19d9f1511460ea32_003full.jpg