OROCO COMMENCES PHASE 2 DRILLING
Oroco transitions from permitting to production-pathway as Phase 2 drilling commences at Santo Tomás
The most recent news (February 24, 2026) confirms the commencement of Phase 2 drilling at the flagship Santo Tomás copper project in Mexico. This follows the successful closing of a significantly upsized C$23 million bought deal financing in January 2026. The drilling is specifically designed to upgrade mineral resource classifications in the South Zone to support a Pre-Feasibility Study (PFS). Complementary work including hydrogeological, geotechnical, and metallurgical programs has also been initiated.
The news is Routine - Positive. While the mobilization of a drill rig is a standard operational step, its significance is elevated by the context of the previous two years. Oroco has successfully navigated a period of "site inactivity" (as noted by Chairman Craig Dalziel), secured strong federal and state government support in Mexico, and raised the necessary capital to move beyond the 2024 PEA. The impact is positive as it marks the transition from administrative and permitting hurdles to active value-added technical work. However, it is "Routine" because the market was already aware of the funding and the intent to drill following the January financing.
Oroco is focused on the Santo Tomás copper porphyry project in Sinaloa/Chihuahua, Mexico. The project boasts a 2024 PEA with a post-tax NPV of US$1.48 billion and an IRR of 22.2%. The project is notable for its proximity to infrastructure (170km to deep-water port, rail, and power) and its massive scale (LOM payable copper of 4.77 billion lbs).