Doré Copper Mining Corp. (TSXV:DCMC) (OTCQX:DRCMF) Research Initiation – June 2024

Arrowhead is initiating coverage on Doré Copper (Doré, DCMC, or the Company) with a fair value bracket of CAD 0.61 to CAD 0.95 per share (share price on June 11th, 2024: CAD 0.11) derived using a blend of Relative Valuation (RV) and Discounted Cash Flow (DCF) methodologies.

Report Highlights:

• Doré Copper Mining Corp. (Doré Copper) is a Canadian exploration and development company based in Toronto. The company is focused on copper and gold in the Chibougamau area of Québec. Through its subsidiary CBAY Minerals Inc., it holds a substantial land portfolio of 13 past-producing mines, deposits and potential resource areas spanning 60 kilometers (km) around its Copper Rand mill. This portfolio has yielded 1.6 billion (bn) pounds (lbs) of copper (Cu) and 4.4 mn ounces (oz) of gold (Au).
• Doré Copper is implementing a hub-and-spoke development strategy, with its Copper Rand mill as the central hub. The company aims to reach an initial production goal exceeding 50 mn pounds of copper equivalent (or 100,000 ounces of gold equivalent). To achieve this, it has completed a preliminary economic assessment (PEA) and is now moving forward with a feasibility study.
• Doré Copper’s hub-and-spoke model sequences the development of the Devlin, Corner Bay, and Joe Mann deposits through the central Copper Rand mill, offering lower risk, capital needs, and permitting requirements, plus an integrated project pipeline. The project is in mid-latitude Quebec in an established mining area with excellent infrastructure.
• The company has several high-grade copper and gold exploration targets, including Cedar Bay, Doré Ramp, Gwillim, and Joe Mann. For instance, the most recent drilling campaign at Gwillim intersected shallow mineralization grading up to 16.51 grams per ton (g/t) Au over 2.3 meters.
• In January 2024, DCMC exercised its right to acquire a 65% interest in the SOQUEM Joe Mann joint venture property, comprising 69 claims totaling 3,029.6 hectares, from Ressources Jessie Inc. for CAD 300K and 3.33 mn shares. This provides DCMC with a controlling interest in the area surrounding the former high-grade Joe Mann gold mine, which includes numerous identified gold occurrences and mineralized zones. One of them, the Norhart mineralized zone, consists of five parallel quartz vein structures approximately 1 km from the former Joe Mann mine.
• The company has solid support from its two largest shareholders (owning approximately 54% of the outstanding shares) who are committed to the development of the project.
• The Corner Bay project showcased excellent ore sorting and flotation test results confirming that the copper concentrate product will be very low in impurities.