Solis Minerals (ASX:SLM) has reported the completion of its first diamond drill hole at the Chancho al Palo copper-gold project in southern Peru, revealing early signs of iron oxide copper-gold (IOCG) and porphyry-style mineralisation. The drilling marks the first such exploration campaign on the property, situated in one of the world’s leading copper-producing regions.

The initial drill hole, CAP-001-2025, was collared to investigate coincident geophysical and geochemical anomalies. It was terminated at a depth of 712.90 metres, encountering multiple mineralised zones and alteration features that company geologists believe are indicative of a potentially large-scale mineral system. The drill hole terminated within hornfelsed volcanic rocks, which had been cut by magnetite-rich breccias—a geological feature commonly associated with the peripheral zones of porphyry systems.

Highlights from the results are as follows: 

• Diamond drilling commenced at Chancho al Palo (100% Solis Minerals) with the first drill hole completed at a depth of 713 metres. A second drill hole is scheduled to commence shortly, approximately 200 metres west of the first drill pad.
• The first drill hole intersected fault-bounded iron oxide copper-gold (“IOCG”) style mineralisation at 184 metres including visible chalcopyrite¹.
• Porphyry style mineralisation has been encountered from 451 metres including the presence of chalcopyrite mineralisation. From 586 metres, IOCG-style mineralised breccias increase in frequency. Visible gold was observed at 620 metres.
• Assays from Chancho al Palo are due from ALS Global (“ALS”) in July / August 2025.
• The Chancho al Palo drill rig and team will be mobilised to Ilo Este (100% Solis Minerals) once the planned 2,500 metre drill programme is completed.

Geophysical and Geochemical Targeting

CAP-001-2025 was drilled into a coincident magnetic and chargeability anomaly identified through induced polarisation (IP) surveys. Surface geological indicators and the proximity to a regional cross-fault, located roughly 200 metres to the southeast, provided additional rationale for selecting this target. Similar structures are known to control mineralisation at Solis Minerals’ Ilo Este property, 17 kilometres to the southeast.

Initial interpretations suggest the drill hole may have traversed the outer margin (propylitic zone) of a previously unidentified porphyry system, potentially overprinted by IOCG-style brecciation. This overprinting is supported by the breccias containing sulphides and magnetite, and the isolated instance of visible gold.

Visual mineral identification indicates the presence of epigenetic pyrite as early as 184.8 metres, progressing to chalcopyrite within intrusive rocks between 451.0 and 585.8 metres. Narrow IOCG veins between 585.8 and 636.0 metres further strengthen the case for a complex, multi-phase mineralising system.

It is important to note that visual estimates of mineral content do not substitute for laboratory assays and provide no reliable indication of grade, impurity levels, or economic potential. Laboratory analysis is required to quantify metal content and other relevant geochemical parameters.

Assay and Sampling Update

Drill core from CAP-001-2025 has been logged, split, and is being prepared for submission to ALS Global Laboratories for assaying. Sample preparation is to be conducted in-country, with final analysis in progress at ALS facilities. Results are expected during July or August 2025.

Solis Minerals is implementing industry-standard QA/QC protocols during sampling and assaying processes. These include the use of certified reference materials, blanks, and duplicates to ensure data reliability and accuracy.

Ongoing Drilling and Next Steps

A second drill hole is currently planned approximately 200 metres west of CAP-001-2025. This hole is designed to test a similar geophysical anomaly and improve geological understanding of the potential mineralised system. The complete drilling campaign at Chancho al Palo consists of approximately 2,500 metres, distributed across four to five holes.

Chancho al Palo lies within the coastal metallogenic belt of southern Peru, a region known for its significant porphyry and IOCG mineral deposits. The current drilling represents the first subsurface exploration conducted at the site. Previous surface work identified favourable alteration assemblages and geophysical signatures that are typically associated with large copper systems.

The area targeted by the first drill hole is situated roughly 200 metres northwest of a known regional fault zone. These structures are commonly associated with mineralisation conduits in porphyry systems and are a key targeting criterion at Solis Minerals’ adjacent properties. The interpretation that CAP-001-2025 has intersected the peripheral zones of a mineralised system is based on alteration features, lithological context, and the presence of mineralised breccias. The forthcoming drill hole is expected to clarify the geometry of the system and potentially locate higher-grade zones associated with the interpreted porphyry core.

Assay Results and Further Exploration

Assay results from the initial drill hole are expected to be released in mid to late 2025. The results will be used to validate interpretations from visual observations and inform the direction of ongoing exploration efforts.

Pending assay outcomes and geological interpretations from follow-up drilling, Solis Minerals intends to refine its understanding of the mineralising system and evaluate the project’s potential to host a significant copper-gold resource. The information gained will also help determine the suitability of additional geophysical or geochemical surveys in adjacent areas.