1.8 km Step-Out Hole Hits Mineralized Skarn

C3 Metals Inc. (TSX-V: CCCM) is pleased to announce assays from a further five holes from its ongoing drilling program of the Jasperoide Copper-Gold Project, Southern Peru. All five holes were drilled on Line JAS2700 at the Montana de Cobre prospect, located 50 metres north of high-grade copper-gold mineralization reported on Line JAS2650 (Press release dated May 25, 2021).

Drilling on Line JAS2700 successfully confirmed that high-grade copper-gold mineralization is laterally extensive over 500m and is 100m to 125m in true thickness. Interpreted feeder structures and breccia zones identified in hole JAS2700-04 returned high gold and silver values, typical of high-sulphidation style mineralization.

Separately, drilling is progressing on a high priority coincident magnetic and IP anomaly at Cresta Verde, 1.8km north-northwest of Line JAS2600 (Figure 1). The current hole (JAS4350-02) has intersected significant intervals of pervasive skarn alteration with semi-massive to massive sulphides and visible copper sulphide mineralization. This hole is collared approximately 700 metres northwest of historic drill hole JADD11-20 that clipped the southeastern edge of the same coincident geophysical anomaly and intersected 23.5m at 1.86% Cu¹ from 19m.

Drilling Highlights:

• Strong copper-gold mineralization intersected over broad intervals on section JAS2700 includes:
  • JAS2700-06
    • 235.18m @ 0.67% Cu and 0.34 g/t Au from 21.5m
    • including 100.4m @ 0.84% Cu and 0.32 g/t Au from 64.4m
  • JAS2700-07
    • 43.45m @ 2.21% Cu and 0.49 g/t Au from 85.85m
    • including 15.00m @ 5.44% Cu and 0.39 g/t Au from 113.5m
  • JAS2700-08
    • 87.30m @ 0.97% Cu and 0.35 g/t Au from 21.30m
    • including 24.8m @ 2.00% Cu and 0.61 g/t Au from 83.8m
• High grade gold in JAS2700-06 assayed 1.2m @ 47.7g/t Au, 12.7g/t Ag, 0.58% Cu from 232.4m
• High sulphidation style feeder structures confirmed in JAS2700-04 and 05. Better assays included:
  • JAS2700-05
    • 26.5m @ 0.41g/t Au and 30g/t Ag from 89.1m
• Assay results are pending for a further 15 drill holes
• Drilling is ongoing at Cresta Verde Zone on section line JAS4350

Kevin Tomlinson, President & CEO of C3 Metals, commented,

“We are very encouraged by the broad extent and continuity of the shallow high-grade copper and gold mineralization being intersected at Jasperoide. Significantly, primary copper sulphides have been intersected below the oxide zone in drill hole JAS2700-05 and high-sulphidation feeder structures hosting gold and silver mineralization are confirmed. These important observations combined with other geological vectors strongly suggest a well-developed concealed copper-gold porphyry system is driving the extensive mineralized skarn development we are currently drilling.

“Given the coincidence of high-grade copper-gold mineralization with strong magnetite alteration, the Company recently flew airborne magnetics over its entire tenement holdings. This was followed by ground IP surveys on key target areas. Multiple large discrete magnetic anomalies with coincident chargeability anomalies are evident in the recently processed data. The drill rig was mobilized to a high priority geophysical target at the Cresta Verde prospect, 1.8km to the north of where three holes were recently completed at Montaña de Cobre. C3 Metals’ geologists in Peru are excited by initial drill observations, reporting significant intervals of pervasive skarn alteration with visible copper sulphide mineralization. This drill hole proves the Company’s exploration strategy is working and we look forward to drill testing multiple other high priority coincident geophysical anomalies and geochemical targets.”

A total of 32 drill holes have been completed to date with drilling now progressing on Line JAS4350 (Figure 1). Copper mineralization has been intersected in all holes drilled to date.

Montaña de Cobre Drill Results

Two drill fans in eight holes were completed on Line JAS2700 for 1,552.9m, defining a strongly mineralized skarn body with a shallow westerly dip that is contiguous for over +500m laterally (Figure 2). Results from the first three holes on this section were reported on July 27, 2021 and include 118.71m @ 1.15% Cu and 0.37 g/t Au from 87.3m with an internal high-grade section of 29.95m @ 2.57% Cu and 0.50 g/t Au in drill hole JAS2700-03.

Drill holes JAS2700-06, 07 and 08 covered in this release intersected oxidized garnet diopside and magnetite skarn consistent with geological observations in drill holes JAS2700-01, 02 and 03. Secondary copper species comprise malachite, chrysocolla and azurite filling open spaces, as disseminated grains and in veins. A total of 57 core samples have been sent for petrographic analysis to confirm skarn alteration mineralogy and copper speciation. Similar to Line JAS2650, high-grade gold mineralization is locally associated with metre-scale breccia zones, particularly in drill hole JAS2700-06, which intersected 1.2m @ 47.7g/t Au, 12.7g/t Ag and 0.58% Cu (Figure 3).

Drill holes JAS2700-04 and 05 intersected intensely silicified, brecciated and locally strongly sheared zones interpreted as “feeder structures” to high-sulphidation style epithermal mineralization, which bisects the skarn. Assays from this zone confirm strong gold and silver geochemistry, which is typical of high-sulphidation epithermal style feeder structures. As previously reported, primary copper sulphide and pyrite mineralization was intersected below the extensive copper oxide zone in drill hole JAS2700-05 and this sulphide zone assayed 41.5m @ 0.31% Cu and 0.11g/t Au. The pyrite to chalcopyrite ratio in the sulphide zone is approximately 3:1, suggesting this zone is distal to the central skarn where significant bornite and chalcopyrite and lesser pyrite are expected.

Summary

Drilling on section line JAS2700 at Montaña de Cobre demonstrates that skarn hosted copper-gold mineralization is pervasive and laterally extensive for over 500 metres and remains open in multiple directions and to depth.

An 1,800 line km helicopter-borne magnetic and radiometric survey and a 43 line km ground Induced Polarisation (IP) survey were recently completed, identifying several strongly coincident magnetic and IP chargeability anomalies. Consequently, the drill rig was recently moved to Cresta Verde Zone to test one of the high priority coincident geophysical targets generated. Drilling on Line JAS4350 intersected significant skarn alteration with sections of visible copper mineralization (Figure 4).

Surface mapping and grid soil sampling programs have also recently been completed. Geological, geochemical and geophysical data will be reviewed and employed to design deeper drill holes to test for additional mineralized skarn horizons and a concealed porphyry system interpreted at depth.

As the drill program progresses, additional results will be released as they become available. Significant assays from drill holes JAS2700-04 to 08 are included in the table below.

Notes:

1. Significant intercepts are reported as length-weighted averages exceeding 0.20% Cu, with less than 5m of consecutive internal dilution.
2. Arbitrary top cut of 5g/t on gold assays has been used, copper is uncut.
3. True width of down-hole intersections reported are estimated to be approximately 60-90% of the down-hole lengths.

Figure 1: Ground magnetic analytical signal image and current drill hole locations.

Figure 2: Jasperoide Cross Section JAS2700 (50m window).

Figure 3: JAS2700-06 (231.8 – 235.2m) showing an oxidized breccia cut by quartz-magnetite vein, interval 232.4 – 233.6m assayed 1.2m @ 47.7g/t Au, 12.7g/t Ag and 0.58% Cu.

Figure 4: (Top Left) JAS4350-02 (223.6m) Garnet-Diopside Skarn cut by epithermal quartz-carbonate-pyrite vein (Top Right) JAS4350-02 (284.3m) Garnet-Magnetite Skarn with chalcopyrite mineralization. (Bottom Left) JAS4350-02 (315.0m) Endoskarn altered diorite with chalcopyrite disseminations. (Bottom Right) JAS4350-02 (359.0m) showing pyrrhotite-chalcopyrite-pyrite veins cutting hornblende diorite.

References for Historic Data

¹ Data retrieved from Hochschild Mining’s database and internal reports. Hochschild was operator of the Jasperoide Project from 2011 to 2012 and completed two drill programs. C3 Metals has access to the entire drill database and believes that reporting of the information was to industry standard practice.

ABOUT C3 METALS INC.

C3 Metals Inc. is a junior minerals exploration company focused on creating substantive value for its shareholders through the discovery and development of large copper and gold deposits. The Company’s flagship project is the 57km² Jasperoide high-grade copper-gold skarn and porphyry system located in the prolific Andahuaylas-Yauri Porphyry-Skarn belt of Southern Peru. Mineralization at Jasperoide is hosted in a similar geological setting to the nearby major mining operations at Las Bambas (MMG), Constancia (Hudbay) and Antapaccay (Glencore). C3 Metals also holds a 100% interest in five licenses covering 207 km² of highly prospective copper-gold terrain in Jamaica, and a 100% interest in two porphyry copper-gold properties, with one under option to Tocvan Ventures, covering 304 km² within the Cascade Magmatic Arc in southwestern British Columbia.