Surge Copper Corp. · TSXV:SURG
Surge Copper — Investor Presentation (October 2023)
39 slides from Surge Copper's investor presentation, October 2023
Slide 1: Copper Discovery & Development in British Columbia
TSXV:SURG | OTCQB:SRGXF | FRA:G6D2 Copper Discovery & Development in British Columbia October0 2023
Slide 2: Disclaimer
Disclaimer This presentation (“Presentation”) is being issued by Surge Copper Corp. (the “Company” or “Surge Copper”) for information purposes only. Cautionary Statements Concerning Forward-Looking Statements This Presentation contains "forward-looking information" within the meaning of applicable C
Slide 3: District Overview
District Overview S URGE CONTROLS A DOMINANT LAND POSITION IN THE B ERG -H UCKLEBERRY -O OTSA DISTRICT Competitive Advantages ✓Over 1.4 Bt of combined M+I resources1 at Berg & Ootsa ✓Deposits accessible by road, off Trans-Canada Highway ✓Abundant fresh water resources ✓Multiple nearby port options ✓
Slide 4: Maiden Berg PEA Highlights
Maiden Berg PEA Highlights R OBUST BASE CASE ECONOMICS WITH SIGNIFICANT LOW - COST PRODUCTION OVER A LONG MINE LIFE C$2.1B Base Case NPV8% 5.8Blbs Life-of-Mine Payable CuEq1 Production 30 Year Mine Life Annual Payable CuEq 20% Base Case IRR 191Mlbs Production C$348m Life-of-Mine Avg. Annual FCF $1,0
Slide 5: Strategically Significant Project
Strategically Significant Project S IGNIFICANT VOLUMES OF CRITICAL MINERALS C U & M O OVER 30- YEAR MINE LIFE Breakdown Production Profile 3.7 Blbs LOM 350 $3.00 121 Mlbs/yr Cu 64% of Revenue Co-Product Cash Costs (US$/lb CuEq) 281 300 279 $2.50 267 264 263 399 Mlbs LOM Payable Copper Eq. (Mlbs CuEq
Slide 6: Metal Price Sensitivity
Metal Price Sensitivity B ERG PEA ECONOMICS SHOW STRONG LEVERAGE TO COPPER PRICE UPSIDE UNDER A RANGE OF MOLYBDENUM PRICES $4,000 30% - Base Case Numbers 27% $3,500 25% 25% 25% $3,000 22% 23% 20% 20% 20% NPV8% (C$ million) $2,500 18% IRR (%) $2,000 15% $3,443 $1,500 $2,990 $2,979 10% $2,537 $2,526 $
Slide 7: Simple Project Design
Simple Project Design L OW COMPLEXITY CONFIGURATION DESIGNED TO MINIMIZE ENVIRONMENTAL FOOTPRINT & CARBON EMISSIONS Highlights ✓Single, long-life open pit mine ✓Use of downhill, electric- powered overland conveyors ✓Conventional flowsheet to produce copper concentrate (with PM by- products) plus mol
Slide 8: One of the Largest Resource Bases in Western Canada
One of the Largest Resource Bases in Western Canada G LOBAL M&I RESOURCE TONNES 1 3,000 - Development Projects - Mines 2,500 Global M&I Resource (Mt) 2,000 1,500 1,000 500 0 Huckleberry Casino Gibraltar Kwanika Highland Valley Copper Mountain Red Chris North Island Saddle Mt Polley Mt Milligan Berg
Slide 9: Selected Comparables
Selected Comparables S INGLE - ASSET JUNIORS WITH LARGE - SCALE PORPHYRY DEVELOPMENT PROJECTS AND RECENT ECONOMIC STUDIES Project Berg Costa Fuego Copper Creek Santo Tomas Casino Vizcachitas Cascabel Los Azules Study / Year PEA / 2023 PEA / 2023 PEA / 2023 PEA / 2023 FS / 2022 PFS / 2023 PFS / 2022
Slide 10: What is the opportunity in copper?
What is the opportunity in copper? B IG M ARKET + S TRONG F UNDAMENTALS = A TTRACTIVE TO M AJORS Copper is the quintessential electric metal • Demand growth exposure to three “megatrends”: Renewables 1 Lower energy Urbanization and infrastructure investment denisity higher metal utilization 2 Grow
Slide 11: Why BC?
Why BC? T OP MINING JURISDICTION WITH THE RIGHT INGREDIENTS FOR AN ESG FOCUSED FUTURE • British Columbia is a top mining jurisdiction that is well positioned for an ESG focused future ✓Stable jurisdiction and fiscal regime ✓Clear and thorough environmental permitting process ✓Strong opportunities to
Slide 12: Advancing a Canadian Critical Metals District
Advancing a Canadian Critical Metals District T HREE BUCKETS OF VALUE CREATION POTENTIAL Berg Project Ootsa Project Regional Exploration • Successfully delivered a robust • The Ootsa project (Seel and Ox • Surge has made significant maiden PEA1 with base case porphyry deposits plus Seel Breccia inve
Slide 13: Ootsa Project
7 COPPER CORP Ootsa Project
Slide 14: Ootsa Project
Ootsa Project T WO PORPHYRY COPPER DEPOSITS | T OTAL M&I R ESOURCES OF 439M T 1 Favourable Location – Central B.C. Interior • The deposits at Ootsa are favourably located adjacent to Imperial Metals’ Huckleberry Mine & Mill complex • The project area has gentle rolling topography, a mild climate, an
Slide 15: Significant Increase in Resources
Significant Increase in Resources I NCREASE OF 96% IN M&I RESOURCE 1 Highlights • Approximately 50,000 metres of drilling completed since 2018 at Seel has significantly expanded mineralization in key areas, relative to the prior 2016 resource estimate • New drilling helped support a 96% increase in
Slide 16: Regional Exploration
Regional Exploration 15
Slide 17: District Scale Exploration Opportunity
District Scale Exploration Opportunity L ARGE PIPELINE OF TARGETS IN ONE OF BC’ S MOST PROSPECTIVE COPPER DISTRICTS ✓Surge controls 125,499 hectare contiguous claim block ✓Dominant land position in ~50km strike length porphyry copper belt ✓Pipeline of regional prospects being 0.40% tested and advanc
Slide 18: Berg Deposit Geological Model
Berg Deposit Geological Model S IMPLIFIED GEOLOGICAL MODEL Plan View Cross Section 17
Slide 19: Berg 2023 Exploration Program
Berg 2023 Exploration Program M AJORITY FOCUS AT B ERG WITH SMALLER START UP ON PRIORITY TARGETS FROM 2022 Overview • 2023 program operated from July to early September − Completed three diamond core holes totalling 2,077 metres − Holes designed to test deeper portions of Berg deposit, potentially c
Slide 20: Berg 2023 Exploration: Preliminary Results
Berg 2023 Exploration: Preliminary Results F IRST HOLE REPORTED IN O CTOBER Highlights • New Cu-in-soil anomaly outlined to the SW of Berg deposit − Similar size and magnitude as the Cu expression over Berg − Never identified historically and never drilled • Hole BRG23-243 intersected 756 meters gra
Slide 21: 2022 Regional Reconnaissance Program
2022 Regional Reconnaissance Program W IDESPREAD SURFACE EXPLORATION COMPLETED ACROSS COMBINED O OTSA & B ERG PROPERTIES Highlights • 23 IP lines in 5 grids • 4,481 soil samples and 337 rock samples plus extensive surface mapping • Selected results: − Expension of Bergette Cu-Mo-in-soil anomaly to 2
Slide 22: 2022 Regional Program: New Cu-Au Porphyry Potential at Seel
2022 Regional Program: New Cu-Au Porphyry Potential at Seel NEW NEAR - SURFACE C U -A U TARGET JUST TO THE NORTH OF E AST S EEL Highlights • Holes S22-328 and 330 were drilled along the northern margins of the Seel Breccia East Zone (angled south) and encountered >100m intervals of South-North cross
Slide 23: 2022 Regional Program: New Silver Discovery at Blackjack
2022 Regional Program: New Silver Discovery at Blackjack V ERY LARGE AND HIGHLY ALTERED INTRUSTIVE CENTRE PROSPECTIVE FOR PM’ S AND WIDE OPEN FOR FURTHER DISCOVERY Highlights • Holes BJ22-01 was testing a large ZTEM anomaly and encountered a wide zone of Ag- Au-Pb-Zn mineralization in addition to 3
Slide 24: 2022 Regional Program: Bergette Porphyry Target
2022 Regional Program: Bergette Porphyry Target L ARGE - SCALE COPPER PORPHYRY TARGET APPROXIM ATELY 10 KM EAST OF THE B ERG DEPOSIT Highlights • Holes BTG22-01 (vertical) and 02 (angled to the northeast) were drilled from the same pad at Bergette, targeting updated geochemical, magnetic, and charge
Slide 25: Corporate Info
Corporate Info 24
Slide 26: Capitalization
Capitalization A LL - EQUITY CAP STRUCTURE Equity Capitalization Key Announcements over Last Twelve Months $0.18 Seel Breccia East 40m @ Seel Breccia 2.5 $3.9mm 1.51% Cu, 0.23 g/t Au, East 138m placement Basic Shares Outstanding 198.0M 38.6 g/t Ag upsized from @ 0.94% Zn, 8.1 g/t $1.25 Ag $0.16 Berg
Slide 27: Surge Team
Surge Team C OMMITTED PROFESSIONALS WITH SIGNIFICANT EXPERIENCE IN OPERATIONS , EXPLORATION , AND FINANCE Management Team Board of Directors & Special Advisors Leif Nilsson | Chief Executive Officer & Director Christian Kargl-Simard | Non-Exec Board Chair Metallurgical engineer, mining executive and
Slide 28: Contact Info
www.surgecopper.com TSXV:SURG LinkedIn: Surge Copper Corp +1 604 718 5454 info@surgecopper.com OTCQB:SRGXF Frankfurt: G6D2 Twitter: @SurgeCopper Contact Info 27
Slide 29: Summary Price Assumptions
Summary Price Assumptions R OUNDED AVERAGE BETWEEN 3- YEAR HISTORICAL PRICES & 5- YEAR FORWARD ANALYST CONSENSUS PRICES Overall Average Prices Historical: 3-Year Average Copper US$/lb $3.86 Molybdenum US$/lb $16.19 Cu $4.00 Silver Gold CADUSD US$/oz US$/oz FX $23.31 $1,828 0.7718 Forecasts Mo $15.00
Slide 30: First Nation Involvement
First Nation Involvement S URGE ’ S EXPLORATION PROGRAMS AND WORK FORCE HAVE BENEFITED IMMENSELY FROM F IRST N ATION SUPPORT & PARTICIPATION Our Approach Cheslatta Carrier Nation members have been regularly employed at the Ootsa Project, providing exploration • Open communication and engagement rega
Slide 31: ESG a Driver of Long-Term Value Creation
ESG a Driver of Long-Term Value Creation I NCREASED FOCUS ON ESG RESPONSIBILITIES , OPPORTUNITIES , AND BEST PRACTICES Environmental Social Governance • Focused on project design • Field operations governed by up-to- • Oversight responsibility from opportunities to minimize carbon date policies incl
Slide 32: Berg PEA Mine Plan
Berg PEA Mine Plan S IMPLE , SIX - PHASE OPEN PIT PLAN USING OWNER OPERATED FLEET Overview Mine Plan Physicals • Conventional drill-blast-load-haul open pit 120 100 Mined Material (Mt) • Six engineered phases based on LG shells to ultimate pit 80 allows better access to high grade material and low g
Slide 33: Process Flowsheet
Process Flowsheet C ONVENTIONAL SULPHIDE FLOTATION AND MOLYBDENUM SEPARATION FLOWSHEET Cu-Mo ROUGHER FLOTATION DUMP POCKET Cu-Mo REGRIND Cu-Mo CLEANER CYCLONE TAILINGS FLOTATION PRIMARY CRUSHER Cu CONCENTRATE OVERLAND THICKENER CONVEYOR Mo ROUGHER Cu-Mo SCAVENGER FLOTATION CONCENTRATE STOCKPILE Cu C
Slide 34: Opex Buildup
Opex Buildup T OTAL ON - SITE UNIT OPERATING COSTS OF C$10.66/ T MILLED Overview Operating Cost Esimates On-site Unit Operating Costs • Processing, mining, and G&A operating costs built up from first principles basis using recent benchmark data with Mining* C$/t mined $2.40 certain items having quot
Slide 35: Capex Buildup
Capex Buildup T OTAL PRE - PRODUCTION CAPEX OF C$2.0 BILLION Overview Capital Cost Esimates • Capital cost estimate developed by Ausenco based on EPCM Initial Capital (C$mm) approach to development Mine Pre-stripping $143 • Approach makes maximum use of in place infrastructure Mining Equipment Down
Slide 36: Berg Option Agreement
Berg Option Agreement S UMMARY OF KEY TERMS • Definitive Option Agreement with Thompson Creek Metals Company Inc., a subsidiary of Centerra Gold Inc. Option Agreement • Option to acquire a 70% interest in the Berg property • Five year option period ending December 2025 • Initial grant to Centerra of
Slide 37: Berg Mineral Resources (2023)
Berg Mineral Resources (2023)1 P IT - CONSTRAINED USING C$8.50/ T NSR CUT - OFF Grade Gross Contained Metal C$8.50/t NSR Cut-off Tonnage NSR/t Cu Mo Ag Au Cu Mo Ag Au (Mt) (C$/t) (%) (%) (g/t) (g/t) (Mlbs) (Mlbs) (Moz) (koz) Supergene Measured 14 $43.03 0.39 0.03 5.6 0.04 120 8 3 18 Indicated 227 $3
Slide 38: Ootsa Mineral Resources (2022)
Ootsa Mineral Resources (2022)1 P IT - CONSTRAINED USING C$8.27/ T NSR CUT - OFF Grade Gross Contained Metal Tonnage Cu Mo Au Ag Cu Mo Au Ag (Mt) (%) (%) (g/t) (g/t) (Mlbs) (Mlbs) (Moz) (Moz) Seel Measured 103.7 0.19 0.014 0.15 2.6 440 32 0.5 8.7 Indicated 276.1 0.16 0.017 0.12 2.0 974 105 1.1 18.2
Slide 39: End Notes
End Notes ✦ All references to copper equivalent (“CuEq”) are on the basis of recovered or payable metals, as indicated, with such recovered or payable metals converted into copper equivalent based on their respective price ratios using long-term metal prices assumptions of US$4.00/lb Cu, US$15.00/lb