Arizona Sonoran Copper Co., Inc.
Arizona Sonoran Copper — Investor Presentation (April 2023)
45 slides from Arizona Sonoran Copper's investor presentation, April 2023
Slide 1: Corporate Presentation April 2023
ASCU:TSX ASCUF:OTCQX COPPER Invest In Sustainability Corporate Presentation April 2023
Slide 2: Cautionary Information
2 Cautionary Information This presentation (“Presentation”) is being furnished on a confidential basis in order to provide readers certain information with respect to the business and operations of Arizona Sonoran Copper Company Inc. (the “Company” or “ASCU”). This presentation contains forward-look
Slide 3: Capital Structure & Ownership
3 Capital Structure & Ownership CAPITAL STRUCTURE OWNERSHIP Market Capitalization C$190M 7% Rio Tinto Shares Outstanding (M) 105.8 25% Tembo Warrants (M) 5.7 Insitutional Options (M) 5.6 32% Management RSU’s (M)(1) 0.3 Retail 5% DSU’s (M) 0.5 Fully Diluted Share Capital (M) 117.8 Including: Delbrook
Slide 4: ASCU: An Emerging Copper Developer in the USA
ASCU: An Emerging Copper Developer in the USA 4 A Goal to Provide the US with Locally Sourced Copper Brownfield Private Proposed Copper Building Scalability Experienced Supportive Exploration and Landownership = Heap Leach, SXEW and Growth Leadership Team; Copper Market Development State and County
Slide 5: Management Team with Track Record of Execution
5 Management Team with Track Record of Execution STRONG SPONSOR SUPPORT George Ogilvie, P.Eng. Ian McMullan, P.Eng., MBA Nick Nikolakakis, BASc, MBA Rita Adiani, LLB Hons • Global leading diversified PRESIDENT, CEO & DIRECTOR COO VP FINANCE AND CFO SVP STRATEGY & CORPORATE metals and mining company
Slide 6: Experienced Board of Directors
6 Experienced Board of Directors David Laing, B.Sc. Eng Thomas Boehlert, ICD.D George Ogilvie, P.Eng. CHAIR OF THE BOARD OF DIRECTORS DIRECTOR PRESIDENT, CEO & DIRECTOR +40 years experience in the mining industry with roles across +30 years in the agribusiness, mining & energy. Experienced finance +
Slide 7: Location Advantage
Location Advantage
Slide 8: Arizona: Globally Recognized Top Tier Jurisdiction to Operate
ARIZONA: Globally Recognized Top Tier Jurisdiction to Operate 8 Accessible Infrastructure and Skilled Labour-force Arizona is the USA's Cactus Project leading copper- and Parks/ Salyer producing state which Deposits accounted for 70% of At the intersection of 3 major porphyry domestic output of copp
Slide 9: Major Permits in Place – De-risked Project Development on Private Land
Major Permits in Place – De-risked Project Development on Private Land 9 Water Rights in Hand, Access to Water Onsite COMPLETED PERMITS OUTSTANDING PERMITS – STREAMLINED PROCESS Permit Permit Office Permit Permit Office Status Air Quality Dust Permit Pinal County Industrial Air Permit Pinal County S
Slide 10: Among the Most Developed Independent US Development Copper Assets
Among the Most Developed Independent US Development Copper Assets 10 Permitting well advanced and on track to complete a PFS LOW DISCOVERY COST PER POUND SIGNIFICANT INDEPENDENT COPPER DEVELOPMENT ASSETS IN THE USA $0.03 Discovery Cost Per Pound (US$) Global Copper Inventory (Mlbs) 4902 Primary Rese
Slide 11: ASCU Projects
ECN-128 Oxide ASCU Projects
Slide 12: Cactus Project, Low-Risk Brownfield Project
Cactus Project, Low-Risk Brownfield Project 12 Leachable Base Case Economics / Optionality for Primary Sulphides ASCU:TSX | ASCUF:OTCQX ARIZONASONORAN.COM
Slide 13: PEA Base Case – Cactus Mine
PEA Base Case – Cactus Mine 13 Project Economics + Rescoped Opportunity PEA BASE CASE PROJECT METRICS(1)(2) Upcoming PFS to target 50 ktpa Copper Production Cactus Mine’s Oxide and Enriched Material With 30 year Mine Life Over the Life of Mine Between the PEA and the forthcoming Prefeasibility study
Slide 14: Cactus Mine Leachable-Only Mineral Resource Estimate
Cactus Mine Leachable-Only Mineral Resource Estimate 14 Increased Underground Grades Contribute Significantly to the Economics LEACHABLE MINERAL RESOURCE Total Open Pit (CW) Underground (CE) Stockpile Indicated 1,065,900 Klbs 919,700 Klbs 0.696% 146,200 Klbs 0.954% n/a Cu TSol CuTSol Inferred 1,211,
Slide 15: Infill to Measured: ECE-076 - Oxide, Chrysocolla and Malachite in Granite
March 20, 2023 15 Infill to Measured: ECE-076 - Oxide, Chrysocolla and Malachite in Granite Results Support mine plan 3.08% CuT | 2.93% Cu Tsol | 0.019% Mo High grade interval within a 211 ft (64 m) intersect, at a depth of 1,204 ft (367 m) 1.75% CuT | 1.65% Cu Tsol | 0.012% Mo 250 ft (76 m) 125 ft
Slide 16: Parks/Salyer Project – Grades ✓ Thicknesses ✓
Parks/Salyer Project – Grades ✓ Thicknesses ✓ 16 Opportunity to Integrate into the Cactus PFS • Mineral resource grade in excess of 1% Contained Copper Grade • Newly defined deposit is being reviewed for inclusion to the Base Case project for the upcoming PFS 2.9 B lbs 1.015% T Cu Ox and Enr • Tradi
Slide 17: Beyond the Base Case: Primary Sulphide Optionality
17 Beyond the Base Case: Primary Sulphide Optionality Currently column leach testing primary sulphides via Rio Tinto’s NutonTM technologies • Initial testing showed +72% leaching recoveries of primary sulphides ABOUT NUTONTM • Technology assumes simple heap leach and SX/EW plant flowsheet • NutonTM
Slide 18: Beyond the Base Case: Exploration along 4 km Mine Trend
Beyond the Base Case: Exploration along 4 km Mine Trend 18 Building Scale and Potential Future Operational Pipeline • Layering geophysics and drilling results show IONIC LEACH G/T MAP NE Ext NE Ext compelling drill targets along the 4 km porphyry copper mine trend: • Gap Zone: Gap Gap Zone • Priorit
Slide 19: The Cactus Project Timeline
The Cactus Project Timeline 19 Integrating Cactus and Parks/Salyer with the Primary Sulphide Material Task 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2025 2026 2027 Drilling PFS drilling BFS drilling Metallurgy Detailed Mine Design and Engineering Pre-Feasibility Permitting Feasibility Study Constructi
Slide 20: Peer Benchmarking
Peer Benchmarking
Slide 21: ASCU Within the Lassonde Curve
21 ASCU Within the Lassonde Curve START UP Becomes Tier 2 ERO (operating) “HIGHER RISK” company 20 yr, 556 Mlbs LOM CONFIRMED DEPOSIT REALITY SETS IN 62,000 tpa; 40,000 oz/y Becomes Tier 3 company $1,973 M Market Cap $966 M NPV* *Analyst estimate, pre-resource update “LOWER RISK” FOM (construction)
Slide 22: Copper Development Peers (P/NAV)
22 Copper Development Peers (P/NAV) 1.00x 0.95x 0.90x 0.86x 0.80x 0.70x 0.65x 0.60x Peer Average: 0.55x P/NAV 0.49x 0.50x 0.48x 0.46x 0.46x 0.40x 0.30x 0.26x 0.22x 0.20x 0.10x 0.00x IE FOM FIL NGEX AMC MARI ASCU TMQ FDY Source: Company Filings, Capital IQ, February 15, 2023 ASCU:TSX | ASCUF:OTCQX AR
Slide 23: Value Proposition: Benchmarking to Copper Developers
Value Proposition: Benchmarking to Copper Developers 23 Low-Risk Copper Developer in Top Tier Jurisdiction $0.30 ✓ Large scale mineral resource base $0.247 $0.25 ✓ Streamlined permitting: $0.230 ✓ Water permits in hand ✓ No Federal Nexus $0.20 ✓ Brownfields project in Tier 1 EV/lb CuEq (US$/lb) juri
Slide 24: Benchmarking ASCU to Copper Developers
24 Benchmarking ASCU to Copper Developers Market Capitalization (C$) $190M $1.4B $784M $2.8B $304M $534M $533M $315M $112M $59M $133M Cactus / Santa Cruz / McIlvenna Cu Creek / Asset Name Filo del Sol Marimaca Los Helados Kay Casino Arctic Copperwood Parks Salyer Tintic Bay Contact Cu Economic Study
Slide 25: Key Investment Highlights
25 Key Investment Highlights A Team with a Successful High Quality Project Growth focused Track Record A simple porphyry copper Multi-billion-pound project A proven track record of project in a top tier jurisdiction pipeline includes Cactus, delivering successful mining with robust economics and low
Slide 26: Alison Dwoskin, CPIR and George Ogilvie, P.Eng
Alison Dwoskin, CPIR George Ogilvie, P.Eng Director, Investor Relations President, CEO & Director adwoskin@arizonasonoran.com gogilvie@arizonasonoran.com +1 (647) 233-4348 (cell) +1 (416) 723-0458 (cell) www.arizonasonoran.com | www.cactusmine.com
Slide 27: Appendix
Appendix
Slide 28: Detailed Leachable-Only Mineral Resource Estimate
Detailed Leachable-Only Mineral Resource Estimate 28 Grades Significantly Increase Underground LEACHABLE MINERAL RESOURCE Indicated Resource: 1,065,900 Klbs Inferred Resource: 1,211,300 Klbs • UG high-grade contributing to economics Open Pit & Stockpile Underground • Maiden Reserves expected with PF
Slide 29: Brownfield Infrastructure Advantage
Brownfield Infrastructure Advantage 29 Valued at approximately $100M Powerline and onsite substation connected to Arizona Public Service Electric • Offices, core shack and ancillary buildings • Rail line (to ship concentrate to refinery) • Power substation • Stockpile (part of Integrated Cactus PEA)
Slide 30: Leachable Material Metallurgical Programs
Leachable Material Metallurgical Programs 30 Simple heap-leach and SXEW process for Base Case and Option with Primary Sulphides Cactus Met Gross Acid Net Acid Cactus Programs complete with favourable Program Leach Cycle Recoveries Consumption Consumption (updated Feb 01 leach cycles • Enriched Mater
Slide 31: The Cactus Mine Project History and Path Forward
31 The Cactus Mine Project History and Path Forward ASARCO Sacaton ARIZONA SONORAN COPPER COMPANY US$20M Remediation Complete 2019/ Next 1964 1974 1984 2019 2021 2022 2023 Steps 2020 Sacaton Production Suspends • Purchases • Declaration • Bolsters Board • Infill drilling - • PFS and FS Studies Disco
Slide 32: Our ESG Framework – Setting the Pace for Net Zero Carbon Emissions
32 Our ESG Framework – Setting the Pace for Net Zero Carbon Emissions • ASCU is actively exploring use of renewable energy for its operations with the goal of becoming a “Net Zero Carbon Emissions” copper producer • Ability to also reduce carbon footprint by Arizona Public Service’s transition to re
Slide 33: Local Support for the Cactus Mine
33 Local Support for the Cactus Mine Overwhelming support for the Cactus Mine in Casa Grande – economic survey shows $8.5 Billion of indirect and direct revenues to the local community. Probably Support 82.6% GOP: 93.0% Support Don't Know, Refused Dem: 66.7% Support Support PND: 84.4% Support Defini
Slide 34: Journey Towards Net Zero - Partnership with Minviro
34 Journey Towards Net Zero - Partnership with Minviro PFS / FS PRODUCTION AND REPORTING Construction • Design parameters used to scope impact • Establishing reporting KPIs • Investment in low carbon technologies and minimizing • GHG inventory assessment (Scope 1, 2 • Reporting to international dire
Slide 35: Junior Copper Producer Benchmarking (Enterprise Value and Production)
35 Junior Copper Producer Benchmarking (Enterprise Value and Production) $4,500 200 $4,119 $4,000 180 160 $3,500 140 $3,000 Annual Production (Mlbs CuEq) 120 $2,500 EV (US$M) Company Goal: 100 $2,000 Peak PEA Production: 80 $1,500 60 $1,000 $772 40 $664 $552 $500 20 $318 $163 $97 $0 0 Capstone Coppe
Slide 36: Cactus PEA Production Schedule – Opportunity beyond 40 kstpa
36 Cactus PEA Production Schedule – Opportunity beyond 40 kstpa (80 Mlbs) CACTUS PRODUCTION SCHEDULE(1)(2) Heap Leach & SX/EW Processing 55,000,000 55,000 Organic Growth Opportunities: 50,000,000 In-Pit and Near-Pit Optimization 50,000 Parks/Salyer 45,000,000 NE Extension 45,000 40,000,000 40,000 Re
Slide 37: Robust Returns from Lowest Capital Intensity vs Peer Group
37 Robust Returns from Lowest Capital Intensity vs Peer Group Between the PEA and the upcoming Prefeasibility study, PEA CONSTRUCTION CAPEX BREAKDOWN (US$M) ASCU is reviewing the following: Direct & Indirect Leach Pads, SXEW Total Cost Components Ponds & Pipelines Facility Capital Cost • Mining inve
Slide 38: Mineral Resource Estimate Table
Material Type Tons (kt) CuT % TSol % Contained Cu (k lbs) Contained Cu (k Tons) INDICATED Cactus Oxide 31,400 0.559 349,700 176 Enriched 42,500 0.844 715,500 359 Total Leachable 73,900 0.723 1,065,200 534 Primary 77,900 0.35 545,500 273 Total Indicated 151,800 0.531 1,610,700 806 INFERRED Cactus Oxi
Slide 39: Notes to the Mineral Resource Estimate
39 Notes to the Mineral Resource Estimate 1. CuT means total copper and Tsol means total soluble copper as the addition of sequential acid soluble and sequential cyanide soluble copper assays. Tons are reported as short tons. 2. Cactus and Stockpile Resource estimates have an effective date of 31 st
Slide 40: Cactus East FS Level Infill Drilling Supporting Current Model
Cactus East FS Level Infill Drilling Supporting Current Model 40 Press Release Dated August 30, 2022 S-37 August 30 Press Release Assays Pending 250 ft (76 m) 500 ft (152.4 m) ASCU:TSX | ASCUF:OTCQX ARIZONASONORAN.COM
Slide 41: Cactus East Cross Section, Looking Northwest
Cactus East Cross Section, Looking Northwest 41 Press Release Dated August 30, 2022 ECE-073 ECE-069 ECE-058 S-37 S-42 A’ A ECE-072 ECE-073 ECE-069 344.0 ft @ 1.07% CuT, 247.0 ft @ 1.73% CuT, 0.82% Cu TSol 1.63% Cu TSol Incl. 101.7 ft @ 1.95% Incl. 90.0 ft @ 2.99% CuT, 1.89% Cu TSol CuT, 2.80% Cu TSo
Slide 42: Parks/Salyer Plan View with Interpreted Mineralized Extents
Parks/Salyer Plan View with Interpreted Mineralized Extents 42 Press Release Dated November 29, 2022 ECP-045 ECP-101 ECP-099 ECP-102 ECP-100 ECP-079 ECP-103 Previously Reported November 28 Press Release ECP-106 Assays Pending Interpreted Mineralization Extents ECP-104 500 ft (152 m) 1,000 ft (304.8
Slide 43: Parks/Salyer Cross Section – Looking West
Parks/Salyer Cross Section – Looking West 43 Press Release Dated November 29, 2022 A A’ ECP-079 ECP-106 ECP-100 479 ft @ 1.32% CuT, 0.90% TSol, ASCU Property Boundary 0.017% Mo (enriched) 225 ft @ 0.96% CuT, 0.63% TSol, 0.039% Mo (primary) ECP-099 552.0 ft @ 1.10% CuT, 0.85% TSol, 0.030% Mo (enriche
Slide 44: ECP-097 Oxide Mineralization
ECP-097 Oxide Mineralization 44 Press Release Dated November 2, 2022 1.71% TCu 1.70% TCu Sol 0.027% Mo 10 ft Interval 1,324 – 1,334 ft (3.0 m, 403.5 – 406.6 m) WITHIN: 0.68% TCu 0.65% Cu Tsol 0.018% Mo 294.4 ft interval 1,071.0 – 1,365.4 ft (89.7 m, 326.4 – 416.2 m) ASCU:TSX | ASCUF:OTCQX ARIZONASON
Slide 45: Rediscovering the World-Class Santa Cruz Copper Porphyry System
45 Rediscovering the World-Class Santa Cruz Copper Porphyry System Drilling the same porphyry copper system, starting Ivanhoe Electric ARIZONA SONORAN at Santa Cruz and extending northeast over P/S and beyond the Cactus Mine Project. ASCU – active drilling (3 rigs) A’ IE – active drilling (6 rigs) I
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