DALLAS, TX -- October 5, 2026 -- Fitzroy Minerals Corp. (TSXV: FTZ): Stonegate Capital Partners initiates coverage on Fitzroy Minerals Corp. (TSXV: FTZ). Fitzroy’s 3Q26 update and drilling support the initiation thesis, with Buen Retiro progressing from exploration toward a more defined development pathway while Caballos remains the higher-variance discovery option. The key changes since quarter-end are continued expansion and continuity of shallow mineralization at Buen Retiro and management’s first quantitative framework for a potential mine. Tenorita extended from a 1.7 km trend in July to 1.9 km in August, while BRT DDH094 returned 105.0 m at 0.74% Cu and BRT-DDH095 intersected 8.8 m at 3.70% Cu, including 1.0 m at 21.84% Cu. Management has also outlined a conceptual heap-leach/SX-EW operation producing approximately 20,000 30,000 tonnes of copper annually, with estimated initial capital of roughly $120 150M and all-in costs below $2.00/lb. These figures remain management targets ahead of formal economic studies but provide the first quantitative framework for the potential scale and capital intensity of Buen Retiro. Management continues to target a possible production decision around mid-2027 and production in 2028.
Buen Retiro - Resource definition remains the principal value driver. Fitzroy is on track for roughly 22,000 m of drilling in 2026, with August drilling showing extension drilling and new mineralization between Manto Negro and Nativo. Two diamond rigs were expected to leave site in September following the MRE data cut-off, with 4Q activity shifting toward regional and deeper exploration. We believe this sequencing prioritizes establishing the shallow heap-leach resource and economics while retaining sulphide upside. The Pucobre relationship supports the development concept through nearby infrastructure and the contemplated 30% clawback. However, management's newly discussed 20,000 30,000 tpa copper concept appears materially larger than the processing capacity described in the Pucobre LOI, suggesting the ultimate development plan may require expanded or additional SX-EW capacity rather than relying solely on existing Planta Biocobre capacity. The September deck also shows 50% availability offered at Planta Biocobre versus the 3Q26 MD&A’s disclosure that the Pucobre LOI offered a minimum 80% of ~800 tpm nominal capacity, warranting clarification as the economic studies define the processing configuration.
Caballos / Outlook - Caballos has moved from geophysical prospectivity toward drill-ready targets. MobileMT and deep IP work have identified coincident conductive and chargeability anomalies across a system roughly 5 km in scale, with a 5,500 m Phase 2 program planned to test four main targets. Management has also indicated preliminary interest from major mining companies, although no formal process, agreement or counterparty has been disclosed. Over the next 1 3 quarters, the thesis should be driven by Buen Retiro metallurgy, MRE/PEA and DIA submission, followed by Caballos drilling, the 2Q27 PFS and a potential mid 2027 production decision. Supportive technical studies would increase confidence in the 2028 development pathway; Caballos remains additive upside rather than necessary to the base case.
Valuation: We use an equal weighting of NAV and EV/contained-copper methodologies to determine our valuation. When we combine the two methodologies it results in a valuation range of C$0.76 to C$1.32 with a price target of C$1.04 per.
