Arizona Sonoran Copper Co., Inc.
Arizona Sonoran Copper — Investor Presentation (February 2023)
42 slides from Arizona Sonoran Copper's investor presentation, Feb 16, 2023
Slide 1: Invest In Sustainability – Corporate Presentation February 2023
ASCU:TSX ASCUF:OTCQX COPPER Invest In Sustainability Corporate Presentation February 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$195M 6% Rio Tinto Shares Outstanding (M) 103.9 26% Tembo Warrants (M) 6.4 Insitutional Options (M) 2.9 32% Management RSU’s (M)(1) 0.3 Retail DSU’s (M) 0.4 5% Fully Diluted Share Capital (M) 113.9 Cash as at Feb 16,
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: Local Support for the Cactus Mine
9 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 Definit
Slide 10: Major Permits in Place – De-risked Project Development on Private Land
Major Permits in Place – De-risked Project Development on Private Land 10 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
Slide 11: Among the Most Developed Independent US Development Copper Assets
Among the Most Developed Independent US Development Copper Assets 11 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 12: ASCU Projects
ASCU Projects
Slide 13: Cactus Project, Low-Risk Brownfield Project
Cactus Project, Low-Risk Brownfield Project 13 Leachable Base Case Economics / Optionality for Primary Sulphides ASCU:TSX | ASCUF:OTCQX ARIZONASONORAN.COM
Slide 14: Brownfield Infrastructure Advantage
Brownfield Infrastructure Advantage 14 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 15: PEA Base Case – Cactus Mine
PEA Base Case – Cactus Mine 15 Project Economics + Rescoped Opportunity PEA BASE CASE PROJECT METRICS(1)(2) Cactus Mine’s Oxide and Enriched Material Upcoming PFS to Expand on PEA Base Case and Over the Life of Mine Test Sulphide Leaching Optionality Mine Life 1.27 B lbs of Cu over 18 years Between
Slide 16: Cactus Mine Leachable-Only Mineral Resource Estimate
Cactus Mine Leachable-Only Mineral Resource Estimate 16 Grades Significantly Increase Underground LEACHABLE MINERAL RESOURCE Total Open Pit & Stockpile Underground Indicated 1,065,900 Klbs 919,700 Klbs 0.696% 146,200 Klbs 0.954% UG high-grade Cu TSol CuTSol contributing to economics Inferred 1,211,3
Slide 17: Parks/Salyer Project – Grades, Thicknesses
Parks/Salyer Project – Grades ✓ Thicknesses ✓ 17 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 • Traditional hors
Slide 18: Beyond the Base Case: Primary Sulphide Optionality
18 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 19: Beyond the Base Case: Exploration along 4 km Mine Trend
Beyond the Base Case: Exploration along 4 km Mine Trend 19 Building Scale and Potential Future Operational Pipeline • Ionic leach program and magnetics show highly prospective zones all along the 4 km porphyry copper mine trend • Gap Zone: Historic condemnation drilling extended 100 ft in depth • NE
Slide 20: Leachable Material Metallurgical Programs
Leachable Material Metallurgical Programs 20 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 21: The Cactus Project Timeline
The Cactus Project Timeline 21 Integrating Cactus and Parks/Salyer with the Primary Sulphide Material Task 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 2025 2026 2027 PFS Drilling / Assays Metallurgy Detailed Mine Design and Engineering Pre-Feasibility Permitting Feasibility Study Construction Decision a
Slide 22: Peer Benchmarking
Peer Benchmarking
Slide 23: Copper Development Peers (P/NAV)
23 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 24: Value Proposition: Benchmarking to Copper Developers
Value Proposition: Benchmarking to Copper Developers 24 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 25: Benchmarking ASCU to Copper Developers
25 Benchmarking ASCU to Copper Developers Market Capitalization (C$) $169M $1.4B $2.8B $784M $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 26: Key Investment Highlights
26 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 27: Alison Dwoskin, Director, Investor Relations
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 28: Appendix
Appendix
Slide 29: The Cactus Mine Project History and Path Forward
29 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 30: Our ESG Framework – Setting the Pace for Net Zero Carbon Emissions
30 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 31: Journey Towards Net Zero - Partnership with Minviro
31 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 32: Junior Copper Producer Benchmarking (Enterprise Value and Production)
32 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 $0 0 Capstone Coppe
Slide 33: Cactus PEA Production Schedule
33 Cactus PEA Production Schedule – Opportunity beyond 40 kstpa (80 Mlbs) CACTUS PRODUCTION SCHEDULE(1)(2) Heap Leach & SX/EW Processing 55,000,000 55,000 Organic Growth Opportunities: 50,000,000 In-Pit and Near-Pit Optimization 50,000 Parks/Salyer 45,000,000 NE Extension 45,000 40,000,000 40,000 Re
Slide 34: Robust Returns from Lowest Capital Intensity vs Peer Group
34 Robust Returns from Lowest Capital Intensity vs Peer Group Between the PEA and the upcoming Prefeasibility study, PEA CONSTRUCTION CAPEX BREAKDOWN (US$M) ASCU is reviewing the following: Direct & Indirect Leach Pads, SXEW Total Cost Components Ponds & Pipelines Facility Capital Cost • Mining inve
Slide 35: 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 36: Notes to the Mineral Resource Estimate
36 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 37: Cactus East FS Level Infill Drilling Supporting Current Model
Cactus East FS Level Infill Drilling Supporting Current Model 37 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 38: Cactus East Cross Section, Looking Northwest
Cactus East Cross Section, Looking Northwest 38 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 39: Parks/Salyer Plan View with Interpreted Mineralized Extents
Parks/Salyer Plan View with Interpreted Mineralized Extents 39 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 40: Parks/Salyer Cross Section – Looking West
Parks/Salyer Cross Section – Looking West 40 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 41: ECP-097 Oxide Mineralization
ECP-097 Oxide Mineralization 41 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 42: Rediscovering the World-Class Santa Cruz Copper Porphyry System
42 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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