Horizon Copper’s HNE Play: A Near-Term Copper Boom Catalyst

The global energy transition is driving unprecedented demand for copper—a metal essential for electric vehicles, solar panels, and grid infrastructure. Nowhere is this opportunity more concentrated than in Horizon Copper’s (HCU/HNCUF) 24% stake in the Hugo North Extension (HNE), a high-grade copper-gold project within the Oyu Tolgoi mining district of Mongolia. Recent drill results and operational milestones validate this asset as a near-term, low-risk leveraged play on one of the world’s most promising copper deposits. With Rio Tinto’s Lift 1 ramp-up on track for 2027 production and HNE’s mineralization extending far beyond current plans, investors have a rare chance to capitalize on a project poised to deliver outsized returns.

The Drill Results: High-Grade Continuity Defines HNE’s Value

The HNE’s May 2025 drill results underscore its world-class quality. Highlights include:
- 552 meters grading 2.30% copper (Cu), including a 260-meter core averaging 3.29% Cu, with assays remaining strong 200 meters below the proposed Lift 2 block cave boundary.
- 169.3 meters grading 2.72% Cu, intersecting hydrothermal breccias with pockets exceeding 10% Cu equivalent (CuEq).

These intercepts, part of a 22% increase in the inferred resource to 1.2 billion tonnes at 1.25% CuEq, reveal a deposit that’s both thick and high-grade, with mineralization open at depth and along strike. Crucially, the drilling confirms vertical continuity, enabling future “lifts” (deeper mining zones) that could extend HNE’s lifespan well beyond its current 20+ year mine plan.

2027 Production: Rio Tinto’s Track Record Anchors the Timeline

The HNE’s timeline is inextricably tied to Rio Tinto’s management of the Oyu Tolgoi joint venture. The Lift 1 underground mine—where HNE’s ore will be processed—is on schedule to begin production in 2027, with development of Panel 1 advancing steadily since October 2024. As of April 2025, 152 meters of lateral development had been completed, all within budget and aligned with Mongolia’s regulatory approvals.

Rio’s credibility as a world-class operator is a critical advantage. The company’s on-time execution of Lift 1’s $6 billion development—despite geopolitical and logistical challenges—eliminates project delivery risk for Horizon’s investors. Once operational, the HNE’s ore will feed directly into Oyu Tolgoi’s existing infrastructure, reducing capital expenditure and de-risking Horizon’s stake.

Leverage to Oyu Tolgoi’s Scale and Copper’s Green Demand Surge

Horizon’s 24% stake in Entrée Resources provides unparalleled leverage to the HNE’s success. As Oyu Tolgoi transitions to underground mining, its production is set to quadruple, with HNE’s high-grade copper contributing to an eventual 500,000-tonne-per-year output by 2030.

Meanwhile, copper’s structural demand is accelerating. The International Energy Agency projects that 40 million tonnes of additional copper will be required by 2040 to meet EV and renewable energy targets—a 50% increase over current global production. With HNE’s copper grades outperforming the global average of 0.6% Cu, this project is ideally positioned to capitalize on the green metal’s supercycle.

Near-Term Catalysts to Watch

Investors should monitor three critical milestones:
1. Q4 2025 Resource Update: Horizon expects to publish a revised resource estimate reflecting the May 2025 drilling, which could push the HNE’s CuEq grades higher.
2. 2026 Pre-Feasibility Study: A PFS will detail HNE’s scalability, including potential for a Lift 2 expansion.
3. 2027 Production Start: First copper from HNE will validate Horizon’s stake and trigger a re-rating of its valuation.

Risks, but Mitigated by Progress

Delays in transferring Mongolian mining licenses to Oyu Tolgoi LLC remain a risk, though agreements are pending final tax approvals. Additionally, commodity price fluctuations could impact cash flows. However, Rio’s operational discipline and the HNE’s robust grades provide a buffer against downside, while copper’s green demand ensures long-term price stability.

Why Act Now?

Horizon Copper is a high-conviction, low-risk leveraged play on one of the world’s most advanced copper projects. With Rio Tinto’s execution credibility, HNE’s 2027 production timeline, and copper’s green demand tailwind, this is a rare opportunity to invest in a near-term catalyst-driven asset with multi-year growth potential.

As the energy transition accelerates and copper shortages loom, Horizon’s 24% stake in Entrée is primed to deliver outsized returns. Investors should act before the 2027 value realization, securing exposure to a project that combines world-class geology, operational certainty, and strategic alignment with the global copper boom.

The clock is ticking. HCU/HNCUF is a buy now.