Slide 1: Chile's New Copper Discovery
CHILE’S NEW COPPER DISCOVERY Marimaca’s PEA Webcast presentation Hayden Locke - President TSX: MARI Investor presentation | 9th SEPTEMBER 2020
Slide 2: Disclaimer
Disclaimer 2 This presentation includes certain forward-looking statements about future events and/or financial results which are forward- looking in nature and subject to risks and uncertainties. Such forward-looking statements or information, including but not limited to those with respect to the
Slide 3: Introduction: Marimaca Copper Project
Introduction: Marimaca Copper Project 3 Marimaca has the potential to be a low capital cost, high margin, copper development Significant oxide copper Outstanding location, tier resource 1 mining jurisdiction Simple, low strip ratio, Identified near mine open pit mining oxide exploration potential co
Slide 4: Commitment to Sustainability
Marimaca Copper – Commitment to Sustainability 4 Marimaca is committed to creating long-term value for all our stakeholders through integrating ESG best practice into the ongoing development of the Company Transparency & Accountability Building Together with our Communities Transparent corporate gov
Slide 5: Why is it unique? Location & Access to Infrastructure
Marimaca: Why is it unique? 5 Location & Access to Infrastructure/Utilities = Lower Execution Risk Close proximity to Within 25km of Port first class utilities of Mejillones and infrastructure › Water › One of the primary › Power import ports for › Transport H2SO4 to Chile › Communications › Access
Slide 6: Why is it unique? Location & Access to Infrastructure
Marimaca: Why is it unique? 6 Location & Access to Infrastructure/Utilities = Lower Execution Risk Antofagasta – 40km Route 1 – National Highway Port of Mejillones – 25km Process Plant Existing 110kV Powerline Existing Seawater Pipeline 7km Open Pit N CHILE’S NEW COPPER DISCOVERY Advancing Developme
Slide 7: Industry Leading Capital Intensity Among Greenfields Projects
Marimaca: Why is it unique? 7 Industry Leading Capital Intensity Among Greenfields Projects Source: Tamesis Partners CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 8: Expected to be in the lowest 15% of the AISC curve
Marimaca: Why is it unique? 8 Expected to be in the lowest 15% of the AISC curve $5.00 $4.50 $4.00 $3.50 AISC (US$/lb CuEq.) Current Copper Price: US$3.06/lb $3.00 $2.50 ~57% Cash Margin $2.00 $1.50 Marimaca $1.00 $0.50 $0.00 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative Percent of Global P
Slide 9: Compelling Results from the PEA
Marimaca: Compelling Results from the PEA 9 Item Value Low Upfront Capital Cost Copper Price Assumption US$3.15/lb flat real › US$285m among the lowest in the copper Pre-Tax NPV8 & IRR US$757 million / 39.9% development peer group Post-Tax NPV8 & IRR US$524 million / 33.5% Payback Period from First
Slide 10: A standout among developers: NPV/Pre-Production Capital Costs
Marimaca: A standout among developers 10 NPV/Pre-Production Capital Costs Source: Tamesis Partners CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 11: A standout among developers
Marimaca: A standout among developers 11 Source: Tamesis Partners CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 12: Low upfront capital and bottom quartile operating cost
Marimaca: A standout among developers 12 A rare combination of low upfront capital and bottom quartile operating cost $3.5 Los Helados $3.0 Taca Taca Josemaria $2.5 Casino Initial Capex (US$bln) $2.0 Rosemont $1.5 Santo Domingo Cotabambas Ann Mason Filo del Sol Zafranal $1.0 Harper Creek Kamoa-Kakul
Slide 13: Representing compelling value?
???? Marimaca: Representing compelling value? 13 Trading at a fraction of reported NAV per share C$10.81 Exploration Potential > 3.0x Unfunded NAV/Share C$3.08 Current Share Price CHILE’S NEW COPPER DISCOVERY 1) Calculated assuming post tax NPV8 of US$524m with CAD:USD exchange rate of 0.75 and 64.4
Slide 14: PEA Based on Large Oxide Resource
Marimaca: PEA Based on Large Oxide Resource 14 Mineral Resource Estimate (MRE) updated in Dec ‘19 Depending on cut-off grade: › Nearly 420kt of contained copper in M&I › Nearly 225kt of contained copper in Inferred Represents approx. 100% increase over maiden MRE released April 2018 April 2018 Resou
Slide 15: Simple Open Pit Mining
Marimaca: Simple Open Pit Mining 15 Open pit developed over 8 phases Single continuous pit 900m Significant proportion of the Mineral Resource Estimate is captured within the open pit design in 1,500m the PEA Virtually no pre-strip No capitalized cut-backs during life of mine CHILE’S NEW COPPER DISC
Slide 16: Simple Open Pit Mining: Favorable deposit geometry
Marimaca: Simple Open Pit Mining 16 Favorable deposit geometry improves economics Very low strip ratio of 0.84:1 in PEA mine plan › Favorable geometry of ore body has further reduced strip from MRE 1,500m High grade zones from surface › First five years grade is 0.78% CuT › Green oxides with met str
Slide 17: Simple SX-EW Processing
Marimaca: Simple SX-EW Processing 17 CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 18: Supported by Four Phases of Met Work
Marimaca: Supported by Four Phases of Met Work 18 Marimaca has completed rigorous met testing on materials across the deposit Tests completed on materials from across the full extent of the deposit and addressed all defined mineral subzones Addressed all key operating parameters for Underpins PEA As
Slide 19: Summary of Marimaca PEA
Marimaca: Summary of Marimaca PEA 19 LOW RISK TIER 1 LOCATION Low execution and financing risk due to location, Lowers execution risk and capital cost simple mining and processing LOW CAPEX HALF A BILLION NPV Industry leading capital intensity for new greenfields Post tax NPV8 of US$524m or approxim
Slide 20: New, high quality discoveries are rare
Marimaca: New, high quality, discoveries are rare! 20 20 18 17 16 15 15 15 Marimaca is the only discovery Number of Major Discoveries (#) 14 13 12 globally in five years + 12 11 11 11 10 10 10 10 9 8 8 8 8 7 7 6 6 6 5 4 4 3 2 1 1 1 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2
Slide 21: Where to from here?
Marimaca: Where to from here? 21 Continue to move Marimaca towards production while assessing the exceptional exploration potential near Marimaca and beyond Feasibility Study Exploration Potential Technical Workstreams are advanced Dual Track Exploration Strategy well beyond PEA level Significant pr
Slide 22: Dual Track Exploration Strategy
22 DUAL TRACK EXPLORATION STRATEGY Potential for a game changing discovery Exciting near mine and district scale potential CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 23: Sulphide Potential below Oxide Deposit
Marimaca: Sulphide Potential below Oxide Deposit 23 • Large magnetic anomaly adjacent to Oxide • Volume of favorable magnetic anomaly – Deposit 175 million m3 • Coincident with interpreted extension of mineralizing structures at surface
Slide 24: Repetitions of Marimaca?
Marimaca: Repetitions of Marimaca? 24 • Structural conduits at Marimaca are regionally extensive • IOCG requires proximity to large regional structures • Potential for generation of additional Marimaca style targets? • Regional drone mounted high resolution mag survey finished, awaiting final result
Slide 25: Near Mine Exploration Potential
Marimaca: Near Mine Exploration Potential 25 Deposit remains open to the north and south and at depth Multiple near surface oxide exploration targets identified within close proximity to Marimaca › Potential to add near term tonnes to mine life Near Mine Oxide The Hanging Wall Alteration (HWA) zone
Slide 26: Summary
Marimaca: Summary 26 A unique development stage copper asset with exceptional economics in a Tier 1 jurisdiction Outstanding exploration potential near mine Potential for district scale discoveries High Quality Copper Development Asset Multiple value catalysts over next 12 in a Tier 1 Location month
Slide 27: Appendices
Appendices CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 28: The Right Team to Deliver
The Right Team to Deliver 28 Experienced and Leading explorational, Deep experience in invested Board and regional and financial copper and Chile management team experience Michael Haworth Luis Albano Tondo Hayden Locke Tim Petterson Executive Chairman CEO & Director President Independent Director ›
Slide 29: Corporate Structure
Corporate Structure 29 12-Mth Share Price and Volume 4.0 2,500,000 3.5 2,000,000 Share Price - C$/share 3.0 Volume Traded 2.5 1,500,000 2.0 1.5 1,000,000 1.0 500,000 0.5 0.0 0 Volume Price Capital Structure1 Board Management Stock Exchange TSX “MARI” Hayden Locke President Michael Haworth Executive
Slide 30: Roadmap towards PFS
Marimaca: Roadmap towards PFS 30 Work Stream 2015 2016 2017 2018 2019 2020 2021+ Early exploration work ✓ Discovery Drilling ✓ Initial Mineral Resource Estimate ✓ Resource Expansion & Infill Drilling ✓ Updated Mineral Resource Estimate ✓ Resource Expansion and Infill Drilling ✓ Updated Mineral Resou
Slide 31: Simple Open Pit Mining: Very low strip ratios
Marimaca: Simple Open Pit Mining 31 Favorable deposit geometry delivers very low strip ratios HIGH GRADE ZONES 1,500 meters Long section looking northeast CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential
Slide 32: Mineral Resource Estimate
Mineral Resource Estimate 32 Measured Indicated Measured + Indicated Inferred Cut-off grade (% CuT) Mineral CuT CuS Mineral CuT CuS Mineral CuT CuS Mineral CuT CuS kt (%) (%) kt (%) (%) kt (%) (%) kt (%) (%) 0.60 9,272 1.00 0.65 18,375 0.91 0.58 26,727 0.95 0.61 12,182 0.90 0.48 0.50 11,397 0.91 0.6
Slide 33: Mineral Resource Estimate by Mineralization
Mineral Resource Estimate by Mineralization 33 Mineral CuT CuS CuT CuS Mineral Resource Category (kt) (%) (%) (t) (t) Measured Brochantite 10,890 0.76 0.55 82,418 59,835 Chrysocolla 4,918 0.59 0.45 29,016 22,191 Wad/Black oxides 3,262 0.34 0.20 11,118 6,555 Mixed 475 1.02 0.26 4,865 1,217 Enriched 1
Slide 34: Chile's New Copper Discovery
CHILE’S NEW COPPER DISCOVERY Advancing Development With Further Growth Potential