FMR Resources Secures 100% Stake in Los Warbos Copper-Gold Project in Central Chile

Strategic Acquisition Enhances FMR's Central Chile Copper-Gold Portfolio

FMR Resources announced the execution of a conditional binding Option Agreement granting exclusive rights to acquire the Los Warbos Project, a major strategic addition to its copper-gold assets in central Chile. Located in the Coquimbo Region about 64 kilometres east of Ovalle, Los Warbos is a district-scale opportunity positioned 60 kilometres north-northeast of FMR’s existing La Lorena Project. This acquisition aligns with FMR’s strategy to build a portfolio of high-quality copper-gold projects within Chile’s proven mineral belts, as emphasized by Managing Director Oliver Kiddie.

The Los Warbos Project covers approximately 3,300 hectares of granted mining concessions under the Option Agreement, alongside 5,250 hectares of contiguous exploration concession applications held directly by FMR. The property’s location within a highly prospective structural setting influenced by the NNE-trending Tulahuen Fault and a major WNW-trending Trans-Lithospheric Fault (TLF) provides strong geological justification for the acquisition. These crustal-scale structures have played a key role in controlling intrusive emplacement, hydrothermal fluid flow, and mineralisation district-wide, offering FMR exposure to multiple fertile structural corridors within the same metallogenic province.

Due Diligence Sampling Confirms Extensive High-Grade Surface Mineralisation

FMR’s initial due diligence program yielded promising results, with rock chip samples grading up to 10.77% copper, 4.01 grams per tonne gold, and more than 100 grams per tonne silver. These findings confirm widespread high-grade mineralisation across multiple prospects within Los Warbos, validating FMR’s acquisition pursuit. Combined with detailed geological mapping and reconnaissance, the sampling identified extensive epidote-rich alteration zones, abundant magnetite replacement within carbonate host rocks, and associated copper oxide mineralisation across several prospects.

FMR interprets the geological features as consistent with a calcic skarn system formed within reactive carbonate sequences adjacent to a fertile intrusive source. Notably, the project shows evidence of multiple mineralisation styles within what is believed to be a single large, long-lived intrusion-related hydrothermal system. These include high-grade copper-gold-silver skarn mineralisation, IOCG-affinity mineralisation, copper-gold-molybdenum porphyry-style systems, and silver-rich polymetallic veins, indicating potential for multiple significant discoveries rather than isolated occurrences.

Historical Artisanal Mining Highlights High-Grade Mineralisation Without Modern Exploration

Historical artisanal mining operations (pirquinero) across Los Warbos revealed widespread high-grade copper, gold, and silver mineralisation through numerous small-scale workings. However, these operations selectively targeted only shallow, easily accessible mineralisation with limited understanding of broader geological controls or system scale. This presents a major exploration opportunity for FMR, as the project has never been systematically explored using modern geological, geochemical, or geophysical techniques, and has never been drill tested.

The lack of modern exploration and drilling is especially notable given the scale and quality of surface mineralisation. Pirquinero operations focused solely on easily exploitable oxide copper mineralisation without investigating deeper system potential or district-scale mineralisation. FMR’s geological team interprets Los Warbos as a large-scale hydrothermal system with multiple mineralisation styles, making it a rare district-scale asset with exposed high-grade mineralisation that remains largely unexplored by contemporary standards.

Multiple Intrusive Centres Offer Promising Porphyry Copper-Gold Targets

FMR’s geological interpretation identifies multiple intrusive centres within Los Warbos, offering compelling targets for porphyry copper-gold mineralisation. These intrusions lie within a favourable geological setting of reactive carbonate host rocks and major structural lineaments that likely facilitated hydrothermal fluid flow and mineralisation. The presence of multiple centres suggests a hydrothermal system more extensive than a single point-source, potentially hosting multiple discovery targets across the district.

Different mineralisation styles observed—including skarn, IOCG-affinity, and porphyry systems—may represent varying expressions at different distances and depths from these intrusions. This aligns with models for large, long-lived hydrothermal systems in copper-gold provinces. The untested porphyry targets, combined with surface high-grade mineralisation, position Los Warbos as an attractive exploration prospect as FMR advances toward systematic drilling.

Project Situated Along Trans-Lithospheric Fault Corridor Hosting Major Deposits

Los Warbos is located along a major WNW-trending Trans-Lithospheric Fault (TLF), a crustal-scale structure that hosts the Andacollo deposit operated by Teck Resources Limited at its western end. This confirms the TLF corridor’s capacity to host economically significant copper-gold mineralisation. FMR’s acquisition allows exploration of a different segment of this proven mineralised structure, approximately 60 kilometres northeast of its La Lorena Project.

Managing Director Oliver Kiddie noted that Los Warbos complements FMR’s portfolio by providing exposure to a different TLF corridor within the same highly prospective metallogenic province. Alongside the La Lorena Project and involvement in the Llahuin Joint Venture, this portfolio approach positions FMR across multiple fertile structural corridors that have controlled magmatism and hydrothermal mineralisation regionally. The presence of a major deposit on the same fault structure underscores Los Warbos’ mineral potential.

Ongoing Systematic Exploration Program Incorporates Mapping, Geochemistry, and Geophysics

FMR has launched a systematic exploration program at Los Warbos aimed at defining drill targets and advancing the project toward an initial drilling campaign. The program includes detailed geological mapping, geochemical sampling, and geophysical surveys to characterise the mineral system and identify priority drill targets. This structured approach contrasts with historical artisanal mining, which provided limited geological insight.

FMR’s strategy leverages the upside potential of applying modern exploration techniques to a property with proven high-grade surface mineralisation. By integrating geological mapping with geochemical and geophysical data, the company aims to rapidly progress Los Warbos to drilling. Managing Director Kiddie expressed excitement about commencing systematic exploration and advancing the project toward drilling, reflecting FMR’s commitment to this asset. Combining multiple exploration disciplines will help identify the most prospective initial drill targets.

FMR Resources Strengthens Position in Chile’s Established Copper-Gold Metallogenic Province

The Los Warbos acquisition is a key component of FMR Resources’ strategy to develop a portfolio of high-quality copper-gold projects within central Chile’s proven metallogenic province. FMR already controls the La Lorena Project and participates in the Llahuin Joint Venture, both within the same geological terrane as Los Warbos. This portfolio approach enables multiple project options while benefiting from operational, geological, and logistical synergies within a defined region with established infrastructure and regulatory familiarity.

By acquiring multiple projects in the same district, FMR diversifies risk while focusing on a metallogenic province with demonstrated mineral endowment. Positioning across multiple structural corridors increases the likelihood of significant discoveries and builds exploration and operational expertise tailored to the geological setting. This strategy supports capital allocation across assets at various maturity stages rather than relying on a single project’s success.

Conditional Option Agreement Details and Pathway to Full Ownership

FMR has executed a conditional binding Option Agreement securing exclusive rights to acquire Los Warbos, outlining a clear path to 100% ownership. The agreement’s conditional status means certain precedent conditions must be met before finalisation, though specific terms were not detailed in the company update. This structure demonstrates FMR’s commitment while maintaining flexibility as due diligence and commercial evaluations continue.

The Option Agreement covers approximately 3,300 hectares of mining concessions, with an additional 5,250 hectares of contiguous exploration concession applications held directly by FMR. This combined land package provides substantial tenure in the Los Warbos district. Investors will monitor progress on satisfying agreement conditions and the timeline for full acquisition. Upcoming milestones include completing due diligence and advancing exploration toward initial drilling.

Exploration Potential from Undrilled High-Grade Mineralisation in Underexplored District

Los Warbos offers a compelling exploration opportunity due to visible high-grade mineralisation and absence of modern exploration or drilling. In mature mining districts, early-stage projects with surface mineralisation typically undergo reconnaissance drilling; the lack of drilling at Los Warbos suggests previous holders lacked drilling capability or faced regulatory/access constraints. This creates discovery potential as FMR implements systematic exploration and drilling.

FMR’s geological interpretation based on mapping and rock chip results indicates a large-scale mineral system with potential for multiple significant discoveries. The presence of diverse mineralisation styles and interpreted intrusive centres supports a large, long-lived hydrothermal system capable of hosting multiple economic ore bodies. Managing Director Kiddie highlighted "the apparent scale of the mineral system" as a key attraction. As drilling approaches, investors will watch for defined priority drill targets and estimates of potential discovery sizes within Los Warbos.