Paul Dumas

Precore Gold: Drilling for a Major Find in Peru's Most Prolific Gold-Copper Belt

• Top takeaway Dumas argues value creation hinges on the Phase 1 6,000-metre drill program at Precore Gold's Arequipa project in southern Peru, which he expects to drive most of the news flow over the next 6-18 months as of late September 2026.
• He rests the Arequipa case on historical results he calls rare today: 420 m at 0.91 g/t gold with a section above 80 m at 3-5.5 g/t, and a gold envelope about 400 m wide and 3 km long that he plans to test with 200-metre step-outs off the best historical holes.
• He frames the investment case around four pillars - a team with a discovery track record, tier-1 mining jurisdictions, a very tight capital structure and shareholder returns - and expects the next 6-18 months of complementary work to re-rate both assets and the company.
• On the recent $6 million placement he says it was oversubscribed about two-fold, that he turned down pressure to upsize it in order to limit dilution, and that 75-80% of the money came from funds based outside North America.
• He says a geophysical survey flying 150-200 line kilometres at Arequipa, together with re-analysis of recovered core, is meant to create new targets beyond the known mineralised corridor, with a Phase 2 program hoped for after Phase 1 results.

Precore Gold's re-rating hinges on one 6,000-meter drill program at its Arikepay gold-copper project in southern Peru. Untested since 2017, historical drilling hit 420 meters at 0.91 grams gold per tonne, with 80 meters above 3 grams. A gold envelope 400 meters wide and three kilometers long stays untested, with historic collars spaced 500 meters to a kilometer apart. Crown land and a four-stage permit process keep permitting straightforward, with no Indigenous negotiations required. A $6 million private placement lifted shares outstanding to 63 million; management refused to upsize it to protect dilution.

Precore Gold ($PRCG) Investor Webinar: Two High-Potential Brownfield Gold Assets Among the Majors

• Top takeaway Paul Dumas argues that Arequipa is Precore's flagship and that the company's best route is to build a mineral resource for a potential acquirer.
• He says a resource of around 2 million ounces at Arequipa could draw interest from tier-one producers, given the property's location among major operations.
• Dumas expects geophysics to extend known mineralized signatures and says initial drilling will twin historic holes before moving to 200-metre step-outs.
• He says the main near-term risk is capital-market weakness, while permitting timing remains outside the company's control.
• Dumas says strong gold prices support the strategy and forecasts another gold rally over the next few months.

Precore is concentrating capital on a 5,000-to-6,000-metre Phase 1 drill program at Arequipa, pending geophysics and permits. Management highlights historical drilling at Arequipa and plans twinned holes plus step-outs to test a gold-enriched corridor within a copper porphyry system. At Lac Big Rush, the company is using AI to combine regional geological data, then plans field validation before defining drill targets. Precore expects to raise capital for its first drill phase while limiting dilution; management estimates roughly $1.5 million for diamond drilling, excluding base camp costs. The stated strategy is to grow a mineral resource estimate and position the assets for potential acquisition rather than build a producing mine.