Olympio Metals Ltd (ASX: OLY) has taken a decisive step in its growth strategy, announcing an option to acquire an 80% interest in the Dufay Copper-Gold Project, located in Quebec, Canada. Positioned along the world-renowned Cadillac Break—a structure responsible for over 110 million ounces of gold—the project offers Olympio access to one of the world’s most prolific mineralised corridors.
The deal represents a low-cost entry into a region boasting excellent infrastructure and promising exploration potential. Drilling approvals are already underway, with plans to commence exploration in January 2025.
A World-Class Geological Setting
The Dufay Project spans 60 square kilometres and encompasses a 10-kilometre strike of the Cadillac Break. This major crustal fault system divides the Archean Abitibi Greenstone Belt and the Pontiac Sub-Province, home to a wealth of orogenic gold and copper deposits. The project lies just 35 kilometres from Rouyn-Noranda, a mining hub with a Glencore-operated copper smelter.
“The Dufay Project offers Olympio significant strike exposure to one of the world’s premier mineralised structures, the famed Cadillac Break. The Project offers a range of underexplored exploration targets, including high-grade copper showings that have never been drilled and compelling porphyry Cu-Au geophysical targets that remain untested,” remarked Sean Delaney, Olympio’s Managing Director.
High-grade copper rock chip samples have been recorded across the property, with standout results including 7.7% copper at the Papitose prospect and 6.8% copper at the Chevrier prospect. These findings suggest the presence of a robust mineralising system, further bolstered by an untested Induced Polarisation (IP) anomaly spanning over 1.2 kilometres adjacent to a syenite porphyry.
Drilling and Exploration Focus
Olympio’s immediate focus will be on three high-priority targets:
- Dufay Porphyry IP Anomaly: A conductivity anomaly interpreted as indicative of semi-massive or massive sulphide mineralisation.
- Chevrier Prospect: High-grade copper-gold quartz-sulphide veins, untested by modern drilling.
- Papitose Prospect: Extensive copper-gold mineralisation in quartz veins, exposed over 350 metres of strike.
Planned exploration includes a 40-square-kilometre detailed magnetic survey, further mapping, and ground geophysics to refine drill targets. The goal is to develop a deeper understanding of the structural and mineralogical context of this highly prospective region.
Acquisition Terms Reflect Long-Term Vision
The option agreement requires Olympio to make an upfront cash payment of CAD $75,000 and issue 1 million ordinary shares to the vendors. To earn its full 80% interest, Olympio must invest CAD $750,000 in exploration over three years, alongside additional cash and share payments. The vendors will retain a 20% free-carried interest until a bankable feasibility study is completed.
Performance-based payments tied to the discovery of substantial resources further align the vendors’ and Olympio’s interests. These include CAD $1.5 million per million ounces of JORC-compliant gold resources and CAD $1 million for each 200,000 tonnes of copper resources.
Strategic Move Amidst Sector Dynamics
Olympio’s decision to pivot away from its option over the Cadillac Lithium Project in Quebec—citing a downturn in sentiment in the lithium sector—underscores its focus on diversification and value generation in base and precious metals. The copper-gold space offers robust long-term demand prospects, particularly as the global economy accelerates its energy transition.
The infrastructure advantages of the Dufay Project cannot be overstated. Year-round access via highways and proximity to the Rouyn-Noranda copper smelter position the project well for future development and potential collaborations.
What Lies Ahead
The Dufay Project represents a compelling opportunity for Olympio Metals to establish itself in a globally significant mining region. With modern exploration methods and a strategic focus on high-grade targets, the company is well-positioned to uncover the next major discovery along the Cadillac Break.
As drilling commences in early 2025, investors will closely monitor progress on exploration milestones. Success at Dufay could not only validate Olympio’s strategic shift but also significantly enhance its portfolio’s value and appeal in a competitive global mining landscape.
