Tincorp Metals: Acquisition Completed and Drilling Launched; Santa Barbara Project Set to Drive New Gold-Copper Growth Engine

On May 13, Tincorp Metals Inc. (TSXV: TIN) announced that it has officially completed the acquisition of the Santa Barbara gold-copper project in Ecuador, securing full ownership of this large-scale, high-quality porphyry gold-copper asset. Just six days later, on May 19, the company further announced that its initial 10,000-meter drilling program is progressing smoothly, with four drill rigs currently operating simultaneously on site. The first five drill holes have been completed, and core samples are being sent for assay, with results pending. This marks the project’s formal entry into the substantive phase of resource verification and upgrading. $Tincorp Metals Inc (TIN.CA)$

Victor Feng, CEO of Tincorp Metals, stated that Phase I drilling at the Santa Barbara project is advancing comprehensively and systematically, laying a solid foundation for future mineral resource growth, and that assay results will be released promptly. Upon completion of Phase I drilling, the project will move into Phase II, which will focus on step-out exploration and testing of deeper target zones.

With two major milestones achieved in quick succession—against the backdrop of sustained strong market conditions for both gold and copper—Tincorp Metals, leveraging its high-quality resource endowment and clear strategic roadmap, is rapidly transforming from a pure-play explorer into an emerging mining company capable of continuously unlocking resource value. Its long-term growth potential and investment appeal are drawing significant market attention.

From a core resource perspective, the Santa Barbara project boasts three key advantages: large scale, high grade, and strong recoveries—offering a robust resource base and outstanding development potential. According to the NI 43-101 compliant Mineral Resource Estimate (MRE) report disclosed by the company on April 9, 2026, using a Net Smelter Return (NSR) cutoff of USD 25 per tonne, the project hosts a combined Measured and Indicated resource of 235 million tonnes grading 0.54 g/t gold (containing 128 tonnes or 4.11 million ounces of gold) and 0.10% copper (containing 224,000 tonnes of copper). This equates to 134 tonnes (4.30 million ounces) of gold equivalent at a grade of 0.57 g/t. Additionally, preliminary metallurgical test results confirm the project’s economic viability, with gold recovery reaching 85.5% and copper recovery at 19.6%—levels that rank favorably among similar porphyry deposits—providing a solid foundation for future cost control and profitability.

The project’s scarce geographic advantage further amplifies the resource value and development certainty of the Santa Barbara project. Located in the Zamora copper-gold metallogenic belt in southeastern Ecuador—one of the world’s premier gold-copper districts—the area hosts multiple large-scale operating mines and advanced-stage development projects, offering exceptionally favorable mineralization geology. The project is adjacent to Hochschild Mining’s Condor project and lies just 36 kilometers from Lundin Gold’s Fruta del Norte gold mine and 56 kilometers from the Mirador copper-gold mine. With well-established regional mining infrastructure and a mature development environment, the project benefits from significantly reduced exploration and development support costs. Additionally, the project holds exploration permits covering 52 square kilometers. Between 1999 and 2018, historical exploration efforts completed 56 drill holes totaling 22,027 meters, delineating a nearly 1,200-meter continuous mineralized zone. Mineralization remains open along strike, at depth, and laterally, indicating substantial potential for resource upgrading and peripheral discoveries. Against the backdrop of global scarcity in high-quality gold-copper assets, this dual scarcity—both in location and resource endowment—provides a solid foundational support for the project’s valuation.

From a corporate strategy and capital operations perspective, the completion of this acquisition and the initiation of drilling represent a critical step in South American Tin’s resource portfolio expansion, backed by robust capital and a clear growth trajectory. South American Tin recently closed a significant CAD 17.5 million financing round, issuing 43.75 million subscription warrants at CAD 0.40 per share, with the full over-allotment option exercised. Proceeds are exclusively earmarked for the acquisition of the Santa Barbara project and subsequent exploration and development, providing strong financial backing for project execution. Following the acquisition, the company now operates a dual-region, multi-commodity asset base comprising Bolivian tin assets and Ecuadorian gold-copper assets, eliminating reliance on a single asset and substantially enhancing its resilience to commodity cycles and earnings elasticity. This move also accelerates its transformation into an integrated mining company driven by both resources and growth.

At this juncture, the long-term bullish industry trends for both gold and copper provide an ideal external environment for the ongoing revaluation of the Santa Barbara project and unlock long-term growth potential for South American Tin. Copper prices have recently rebounded strongly to historic highs, driven by a confluence of factors: global supply constraints, declining ore grades, restocking demand from China and the U.S., AI computing infrastructure build-out, and the structural demand from the energy transition—all of which are widening the supply-demand deficit and reinforcing copper’s long-term growth fundamentals. Although gold faces near-term pressure due to easing geopolitical tensions (reducing safe-haven premiums) and renewed U.S. inflation concerns reigniting Federal Reserve rate hike expectations, central bank gold buying has become a long-term strategic trend. Net central bank gold purchases in Q1 2026 rose significantly year-over-year, and Goldman Sachs’ latest research report dated May 18 maintains its year-end gold price target of USD 5,400 per ounce. Sustained central bank purchases and the broader de-dollarization trend will provide enduring support for gold’s value. In this context, the Santa Barbara project—combining gold’s long-term safe-haven and inflation-hedging attributes with copper’s short-term industrial strength—will see its resource value continuously re-rated alongside the metal price cycle: capturing immediate upside from elevated copper prices while leveraging gold’s cyclical resilience for long-term returns, thereby delivering South American Tin a compelling combination of certainty and growth potential.

Looking ahead, South American Tin’s growth thesis is now clearly materializing: near-term catalysts will come from exploration results, while long-term value hinges on resource realization and production ramp-up. In the short term, the company’s initial 10,000-meter drill program is progressing steadily, with core objectives including validating historical drill data, infill drilling to upgrade resource classification, and deepening understanding of mineralization controls. Ongoing assay results will continue to drive fundamental improvements. Immediately following completion of Phase I drilling, Phase II will commence, focusing on testing extensions and deep targets at the deposit periphery, with strong potential to further expand resource scale and enhance grade. Over the long term, as the acquisition closes and exploration advances, the Santa Barbara project’s resource base is expected to undergo continuous upgrades. Coupled with favorable long-term gold and copper price trends, the company is poised to transition into the development phase, ultimately evolving from an explorer into a producing miner.

Overall, South American Tin has entered a high-growth trajectory, powered by the Santa Barbara project’s core strengths—large-scale resources, high-grade potential, and superior location—and amplified by the long-term tailwinds of the gold and copper supercycle. From acquisition closing to accelerated drilling, every step the company takes aligns tightly with the theme of unlocking resource value. The certainty of fundamental improvement continues to strengthen, highlighting exceptional medium- to long-term growth potential and investment appeal. South American Tin is positioned to emerge as a high-quality global mining asset offering both visibility and scalable growth.

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