Marimaca Copper (ASX:MC2) is progressing its Chile project in line with expectations, with a major de-risking catalyst receiving its environmental approvals, said Euroz Hartleys in a Wednesday note.

The company on Wednesday said that its unit, Marimaca NewCo, received formal environmental approval for its Marimaca Oxide project in Chile and can now advance to the next phase of permitting activities.

The company, in a separate filing, also said that he results from its 10,000-meter discovery drilling campaign at the Pampa Medina deposit, part of the Marimaca project in Chile, continued to show extensions to the high-grade sedimentary-hosted sulfide copper horizon, as well as upside to the known extent of the near-surface oxide mineralization.

The research firm said that the Pampa Medina deposit is expanding beyond earlier forecasts. At the current spot copper price of about $4.85 per pound, the project is expected to generate an average lifetime earnings before interest, tax, depreciation, and amortisation (EBITDA) of around $340 million per year.

Euroz Hartleys added that the expected EBITDA of $340 million per year is well above the definitive feasibility study estimate of about $288 million per year over the first ten years, which was based on a copper price assumption of $4.30 per pound.

Euroz Hartleys maintained its speculative buy rating on Marimaca Copper and raised its price target to AU$14.36 from AU$12.17.

The company's shares rose almost 1% in recent Thursday trade.