Drill Turning In Argentina’s Long-Closed Copper Belt

After 30 years of mapping by Rio Tinto, Lundin, and Vale, the Western Malargüe Mining District is open, and Kobrea Exploration (CSE: KBX, OTCQB: KBXFF) is the first public company to drill.

Distributed on behalf of Kobrea Exploration. Please see the disclaimer below.

Key Highlights

First drill permit ever issued to a public company in Western Malargüe: Kobrea is the first public company to receive approval and begin drilling in the region’s history.
District-scale: 733 km² across seven copper projects, spanning the same Andean copper belt that hosts Chile’s largest deposits.
Targets mapped by Rio Tinto, Lundin, and Vale: Now drillable after 30 years of surface work without permits.
First drill holes underway at El Perdido: The district’s first modern drill test beneath a major porphyry system is underway now.
Newly opened jurisdiction: Argentina is moving to develop its underutilized Andes copper resources under President Milei’s pro-investment agenda.

The race for copper is reaching a critical moment.

AI, microchips, data centers, industrial reshoring – each of these trends is accelerating simultaneously. And each one will require massive amounts of copper.

BHP estimates that copper use in data centers alone could increase sixfold by 2050, rising from roughly half a million tonnes to around 3 million tonnes annually.

That would effectively lift the sector’s share from about 1% to as much as 7% of total global copper consumption.ⁱ

BloombergNEF warns this could deepen an already substantial supply gap, creating a potential shortfall of 6 million tonnes of copper by 2035.ⁱⁱ

That’s just scratching the surface of a problem years in the making.

S&P Global estimates the world will need to develop the equivalent of multiple new world-class copper districts over the next decade just to keep pace with demand.ⁱⁱⁱ

And yet, new copper discoveries have become harder to find. Permitting timelines are longer. And many of the world’s most productive belts are already mature.

Copper prices are reflecting the strain, soaring 37% to an all-time high of $6/lb. in January 2026.^iv

As supply tightens and geopolitical risk rises, attention is shifting toward jurisdictions where large, proven copper systems exist but were previously inaccessible.

Which is why the industry pays attention when a proven copper belt, mapped for decades but never drilled, finally opens.

A World-Class Copper Belt That Sat Idle for 30 Years

An aerial view of the open pit of Anglo American’s Los Bronces copper mine with Aconcagua mount (C) in the background, America’s highest peak in the Andes mountain range, and several glaciers, near Santiago city, November 17, 2014. Courtesy of REUTERS/Ivan Alvarado^v

A broad copper belt runs down the spine of the Andes. On one side of that divide, Chile turned it into the foundation of their modern copper industry.

On the other, across the same mountain range in Argentina, much of that potential remained effectively untouched for decades.

Not because the geology was weaker, but because access was restricted.

Chile’s western flank of the Andes sits atop the Neogene Porphyry Belt, a continuous mineral trend that hosts some of the largest copper deposits ever discovered.

At Río Blanco–Los Bronces, operated by Anglo American, sits the world’s greatest known concentration of copper. The system contains more than 200 million tonnes of the metal and with nearly 450,000 tonnes of copper produced each year.^vi

Just to the south sits El Teniente, the world’s largest underground copper mine.

In operation for more than a century, it holds one of the largest copper inventories ever defined, supported by a vast underground network of tunnels stretching thousands of kilometers.

It remains one of the most important copper-producing assets on the planet, generating roughly 400,000 tonnes annually.^vii

These mines are the product of a prolific belt that Chile has spent generations developing.

Yet on the eastern flank of the Andes, in Argentina, modern copper production remained largely nonexistent.

In regions like Western Malargüe in Mendoza Province, major mining companies, including Rio Tinto, Lundin, and Vale, mapped and sampled porphyry systems, outlined large mineral footprints, and identified multiple high-priority targets.

The geology was there and the systems were defined. But no drill permits were ever issued.

For decades, Western Malargüe remained off limits simply due to policy.

A Rare, Untapped Copper District Opens Up

That constraint has only recently begun to ease as Argentina’s policy landscape shifted.

Under President Javier Milei, the country has moved toward market-oriented reforms and closer economic alignment with the United States, with mining increasingly positioned as a pillar of national growth.

Milei has emphasized that Argentina is “underutilizing the Andes mountain range,” highlighting strategic resources like copper, lithium, uranium, and rare earths as central to the country’s next phase of development.^viii

Copper is now a strategic supply-chain issue, and Argentina is emerging as a more relevant partner for the United States. This shift is underscored by a U.S. – Argentina Critical Minerals agreement aimed at supporting long-term investment.

In parallel, the Mendoza Province adopted a targeted strategy for mining development. Rather than opening the region broadly, the government created the Western Malargüe Mining District.

This area was designed to support exploration with baseline environmental work, infrastructure planning, and a structured permitting framework already in place.

For the first time in decades, companies could apply for drill permits in Mendoza – and receive them. Kobrea Exploration (CSE: KBX, OTCQB: KBXFF) got there first.

In the Same Belt as the World’s Biggest Copper Mines

In a matter of fortunate timing, Kobrea Exploration was positioned ahead of the district’s reopening. The company secured 733 square kilometers across seven project areas and became the first public company to receive drill permits in Western Malargüe’s history.^ix

In January 2026, Kobrea began drilling at their flagship El Perdido project—marking the third modern drill program ever permitted in the district, the first by a foreign company.^x

El Perdido is the clearest example of why this district has been on the radar of major mining companies for decades.

Situated within the same broad Andean mineral belt that hosts Chile’s world-class copper districts, El Perdido contains a large porphyry copper–gold–molybdenum system.

The target is exposed and unusually large for an undrilled project, with a roughly 2×2 km mineral footprint, multiple intrusive phases, extensive breccias, and strong geochemical indicators. The upper layer has been heavily leached over time, an important feature in porphyry deposits, where the main body of copper–gold mineralization often remains intact just below.

Geologists have long believed El Perdido may hold stronger copper and gold mineralization at depth, but that assumption had never been tested by drilling.

That’s exactly what Kobrea Exploration (CSE: KBX, OTCQB: KBXFF) is now working to prove out.

Because permitting and baseline work were advanced early, the company was able to move quickly once approvals were granted.

Road access, water supply, and camp infrastructure are in place, and diamond drilling is now underway.

The Phase 1 program includes three drill holes, each planned to about 500 meters deep, aimed at testing the heart of the system beneath the surface cap.

The first hole is designed to drill into the main mineralized rock body mapped at surface, where dense quartz veining suggests the strongest copper-bearing activity may have occurred. It is expected to continue for several hundred meters before intersecting a breccia zone that’s believed to be the center of the deposit.

Results from these first holes will guide follow-up drilling and help Kobrea focus on the areas most likely to host stronger mineralization.

A New Copper District Taking Shape

El Perdido is only the starting point. What Kobrea is building in Western Malargüe could quickly evolve into a much larger, district-scale opportunity. The company holds the right to earn a 100% interest in seven porphyry copper projects spanning approximately 733 km² across the district.

Two systems, El Perdido and El Destino, have already been mapped in detail. Historical work has identified more than a dozen additional porphyry targets across the broader land package that remain untested.

While drilling begins at El Perdido, field crews are simultaneously advancing work across El Destino, Cuprum, Sofi, Tiburcio, Elena, and Veronica, extending the pipeline of targets within the same emerging belt.

Importantly, all seven projects are fully approved for exploration following ratification by Mendoza’s Senate and Chamber of Deputies, giving Kobrea district-scale exposure under a single permitting framework.

To support continued exploration, the Company closed an $8.5 million private placement to fund drilling and the next phase of district-wide target development.

Top 7 Reasons to Consider Adding Kobrea Exploration (CSE: KBX, OTCQB: KBXFF) to Your Watchlist

The First Drill Program by a Public Company Ever Underway in Western Malargüe:
Kobrea is the first public and first foreign company to receive drill permits and begin drilling in the Western Malargüe Mining District, launching the third modern drill campaign in the district’s history.
A District Major Producers Studied for Decades:
Over the past 30 years, groups like Rio Tinto, Lundin, and Vale mapped and sampled large porphyry systems across Western Malargüe but were never able to drill. Kobrea is now advancing targets that industry leaders identified long ago, now accessible for the first time.
Flagship Target Tested at Depth for the First Time:
El Perdido is a large, surface-defined copper–gold–molybdenum system with a roughly 2 x 2-kilometer footprint. Diamond drilling is now underway, marking the first-ever test beneath the leached cap where stronger mineralization may be preserved.
District-Scale Exposure Across Seven Porphyry Projects:
Kobrea holds the right to earn 100% interest in seven projects totaling approximately 733 km², offering district-scale potential.
Located Along the Same Copper Belt as Chile’s Giant Deposits:
Western Malargüe sits within the broader Andean mineral belt that hosts some of the world’s largest copper mines, including Los Bronces–Rio Blanco and El Teniente.
Permits Secured, Infrastructure Built, Drilling Underway:
All seven projects are fully approved for exploration following ratification by Mendoza’s Senate and Chamber of Deputies. Road access, water supply, and camp infrastructure are in place, allowing drilling and follow-up work to proceed without further regulatory delay.
Fully Funded for the Next Phase of Exploration:
Kobrea closed an $8.5 million private placement to fund drilling, continued exploration, and the next stage of target development across multiple projects in the district.

Western Malargüe is open, drilling is underway, and the next updates will come from the drill core.

To follow Kobrea Exploration’s (CSE: KBX, OTCQB: KBXFF) progress, visit www.kobreaexploration.com and sign up below to receive the latest news releases and exploration results as they are announced.

ⁱ https://www.bhp.com/news/bhp-insights/2025/01/why-ai-tools-and-data-centres-are-driving-copper-demand
ⁱⁱ https://www.zerocarbonacademy.com/posts/ai-roll-out-to-send-copper-demand-soaring-feeding-the-global-appetite-for-data-centre-expansion-risks-exacerbating-a-global-shortfall
ⁱⁱⁱ https://press.spglobal.com/2026-01-08-Substantial-Shortfall-in-Copper-Supply-Widens-as-the-Race-for-AI-and-Growing-Defense-Spending-Add-to-Accelerating-Demand,-New-S-P-Global-Study-Finds
^iv https://www.kobreaexploration.com/
^v https://www.google.com/finance/beta/quote/HGW00:COMEX?sa=X&ved=2ahUKEwj0xvL_8a2SAxXHC0QIHZk6MLMQ3ecFegQIIxAT
^vi https://www.reuters.com/world/americas/anglo-americans-los-bronces-project-granted-environmental-permit-2023-04-18/
^vii https://www.footprintspa.cl/Protacted-Magmatic-Hydrothermal.pdf
^viii https://www.mining-technology.com/features/feature-the-10-biggest-copper-mines-in-the-world/
^ix https://www.panorama-minero.com/en/news/the-united-states-in-argentina-s-mining-sector-where-it-operates-and-what-it-does
^x https://mining.com.au/kobrea-permit-a-first-in-malargue-western-mining-district/

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