C3 Metals Inc (TSX-V:CCCM, OTC:CUAUF) has reported results from the second drill hole of its ongoing program at the 100%-owned Khaleesi copper project in southern Peru, which included a higher-grade copper-gold intercept at depth.
The company said drill hole KHZ5800-002 intersected 51.1 metres grading 0.54% copper and 0.31 grams per ton (g/t) gold, 3.21 g/t silver and 6 parts per million (ppm) molybdenum, from 339.6 metres downhole depth, or 0.86% copper equivalent.
Within this interval, a higher-grade section of 18 metres returned 1.08% copper and 0.76 g/t gold, or 1.85% copper equivalent.
Additional mineralized intervals were encountered near surface and toward the end of the hole, including 8 metres at 0.42% copper from 13.9 metres downhole and 13.2 metres at 0.29% copper from 488.3 metres.
KHZ5800-002 was collared along the marble–diorite contact and targeted the southwest extension of mineralization intersected in the first hole, KHZ5800-001, which reported broad lower-grade copper intervals in December 2025.
The second hole was designed to test beneath surface skarn mineralization and geophysical chargeability and magnetic anomalies identified in prior surveys.
According to the company, the deeper high-grade interval represents a different style of mineralization than that observed in the first hole, with porphyry-style copper-gold mineralization overprinting garnet skarn. Mineralization in this zone is associated with copper sulphide minerals and visible gold within quartz veinlets, a feature not identified in the earlier drilling.
"Our second hole at Khaleesi has delivered a high-grade intercept for this greenfield project. Importantly, this could vector us towards the 'heat engine' of the hydrothermal system,” C3 Metals CEO Dan Symons said in a statement.
“We see both hypogene chalcocite - a very high-temperature/high-grade copper sulphide mineral - and coarse gold. Seeing porphyry-style sheeted veinlets overprinting skarn suggests multiple copper-mineralizing events. That is precisely what we want to see.”
C3 Metals said the mineralized zones remain open along strike and at depth, and the company plans additional drill holes to further test the high-grade zone and investigate the potential source of the mineralization.
“Now we are very keen to get additional pierce points into this high-grade zone of mineralization because with oriented drill core, we should be able to follow the porphyry-style sheeted veinlets down dip with the goal of intersecting the causative intrusion of the Khaleesi hydrothermal system,” Symons said.
The Khaleesi drill program comprises a planned 6,300 metres of drilling. Approximately 4,200 metres have been completed so far, with eight holes drilled. Assay results are pending for six completed holes, and two additional holes are currently in progress.
Shares of C3 Metals added 4.3% in Wednesday morning trading.
