Ann: Drilling Returns Significant Wide Copper Intersections, page-158

Now the dust has settled and the results have been able to be absorbed, it really was a perfect storm for CPO to get hammered on assays.

1. Visual estimates were too high. That's on management and that was either a strategic risk to get oppies converted to raise funds vs chance of getting pulled up for it. I was lazy in the run up before the oppies conversion and didn't dig into the prior releases. A solid work through the x6 cross sections in the release on 1 September 2023 would have provided with an investor an indication of expected grades over extensive widths.

2. Unlisted oppies. The brokers behind the raise which led to the unlisted oppies at 4.8c pumped the excitement hard and helped the frenzy which led the SP 10c+. The trading halts and price/query responses allowed these option holders time to exercise their shares. When trading resumed the profit taking on these options led to the share price flattening out Friday and then beginning to dump Monday.

3. Trapped retail then panicked on assays which aren't actually bad but are well below the visuals (however noting within expectations had one done proper DD) causing a big gap down. Subsequent churn yesterday and today is the remnants of retail/traders exiting. Buying probably is largely the instos/sophs that dumped converted options, getting back in at a much lower price.

So where to from here? I believe the bottom is in and we should head back up quite quickly. There's a drilling program ongoing, company is now funded for another quarter minimum so no CR to weigh on the share price, and there's a gap above to fill. Vaca Muerta should see a 100m+ intersection of at least 0.5%+ copper in CHVMD002 which is quite something. There's also another 80m of drilling to be reported to 200m EOH. Probably not very likely but with historical workings only going down to 100m or so there's also the chance to surprise to the upside with significant mineralisation at depth.

The ultimate blue sky potential is at La Florida however with scale of the target and no prior drilling. I was fortunate to have exited prior to the assays and I'd be annoyed if I'd been through the dump but looking at it from a re-entry point of view here I just don't see any further downside with where the copper thematic is heading.