Faraday Copper Corp · TSX:FDY
Faraday Copper — Investor Presentation (July 2023)
44 slides from Faraday Copper's investor presentation, July 2023
Slide 1: Developing U.S. Domestic Copper
Developing U.S. Domestic Copper ANALYST PRESENTATION July 2023
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Some of the statements in this presentation, other than statements of historical fact, are “forward-looking statements” and are based on the opinions and estimates of management as of the date such statements are made and are necessarily based on estimates and assumptions that a
Slide 3: Faraday Copper: Highlights
FARADAY COPPER: HIGHLIGHTS Building a Premier North American Copper Company ASSET STRATEGY CATALYSTS ▪ Copper Creek in Arizona is a large ▪ Growing the resource though ▪ 10,000 m Phase II drill program undeveloped project with over 4.2 definition of high-grade zones and results (H2 2023) Blbs of cop
Slide 4: Copper Creek: Top Mining Jurisdiction
COPPER CREEK: TOP MINING JURISDICTION Arizona Ranked Seventh for Investment Attractiveness (Fraser Institute, 2022) Pinto Valley Arizona, USA ARIZONA Globe-Miami ▪ 100% owned property in Pinal County, Resolution Arizona Ray Morenci ▪ Near mining and service hubs with Cactus Copper Creek Safford Lone
Slide 5: Copper Creek: Large Land Package
COPPER CREEK: LARGE LAND PACKAGE ~65 km2 Property Offers Strategic Benefits ▪ Mineral claims include patented claims, unpatented claims and state prospecting permits ▪ Optionality for infrastructure placement ▪ Solar power generation potential ▪ Ranch includes ~32,000 acres of surface rights through
Slide 6: PEA Highlights
PEA HIGHLIGHTS Life-of-Mine Average Annual Life-of-Mine Payable Measured and Indicated 51,100 tpa Payable CuEq 1 Production 3.4 Blb CuEq 1 Production 4.2 Blb Copper Mineral Resource a KEY FINANCIAL DATA ANTICIPATED PRODUCTION PROFILE Post-tax NPV(7%) $713 million Mine Life b 32 years Tonnes Milled c
Slide 7: Economic Sensitivity
ECONOMIC SENSITIVITY Well-positioned to Leverage the Copper Price $2,000 40% PEA $1,843 29.6% Post-Tax NPV ($ million) $1,500 $1,576 30% Post-Tax NPV (7%) $ M Post-Tax IRR 21.0% Post-Tax NPV (8%) $ M $1,000 20% 15.6% $1,144 $951 Post-Tax IRR % $713 $500 $566 10% $0 0% $3.80 $4.25 $5.00 Copper Price
Slide 8: LOM Payable Metal Production Profile
PEA: LOM PAYABLE METAL PRODUCTION PROFILE Copper Contributes ~94% of LOM Revenue Payable Metal Production (CuEq1) 90 Copper as % of Revenue Contribution 80 Silver as % of Revenue Contribution 70 Molybdenum as % of Revenue Contribution 60 Tonnes (Thousands) 50 40 30 20 10 - 1 2 3 4 5 6 7 8 9 10 11 12
Slide 9: Faraday Copper: Compelling Investment
FARADAY COPPER: COMPELLING INVESTMENT Low Capital Intensity, Long Life U.S. Copper Project Owned by a Developer Initial Capital Intensity vs Mine Life (a, b) Enterprise Value / M&I Mineral Resources (b) 60¢ 37.1¢ 17.6¢ 15.0¢ 10.0¢ Copperwood (US¢/lb CuEq Mine Plan Inventory) Carmacks Copper 50¢ Flat
Slide 10: PEA Technical Highlights
PEA TECHNICAL HIGHLIGHTS
Slide 11: Independent Consultants
INDEPENDENT CONSULTANTS Customized Team of Specialists Deliverable Consultant Location Scope Mineral Resource SRK Denver Delivery of an updated MRE Estimate Technical lead for the optimization of processing plant, tailings Ausenco Tucson facilities and associated infrastructure design, including eco
Slide 12: Updated Mineral Resource (2023)
UPDATED MINERAL RESOURCE (2023) MRE is Supported by >200,000 m of Drilling, 83% of Resource is M&I ▪ Drillhole database includes Phase I drill Tonnes Cu Mo Ag CuEq2 Cu Mo Ag CuEq2 results (as of Oct 27, 2022) Category (Mt) (%) (%) (g/t) (%) (Mlbs) (Mlbs) (Moz) (Mlbs) ▪ Updated geological model Open
Slide 13: Significant Resource with Upside
SIGNIFICANT RESOURCE WITH UPSIDE Open Pit and Underground Mineral Resource Open Pit Grade Distribution A A Copper Prince Childs Aldwinkle A’ 1,300RL Globe Mammoth N Copper 1,200RL Prince Marsha OPEN PIT 1,100RL Old Childs Reliable Alwinkle 1,000RL Mammoth 100 metres 900RL A’ Bald 500 metres Undergro
Slide 14: PEA: Geotechnical Assessment
PEA: GEOTECHNICAL ASSESSMENT Data Collected for Open Pit and Underground Mine Design ▪ Geotechnical core logging, including five historical drill holes (2,032 meters) and nine Phase I drill holes (5,624 meters) ▪ Geomechanical data (fracture statistics, joint conditions) Mammoth Breccia (FCD-22-008)
Slide 15: Open Pit Geotechnical Assessment
PEA: OPEN PIT GEOTECHNICAL ASSESSMENT Competent Host Rock: Reliable Slope Stability and Reduced Strip ▪ Overall pit slope stability assessment ▪ Rock strength and joint orientations allows for overall slope angle of 50 degrees supporting low strip ratios ▪ Back break and catch bench analysis ▪ Asses
Slide 16: Underground Geotechnical Assessment
PEA: UNDERGROUND GEOTECHNICAL ASSESSMENT Confirmed Caveability Bald ▪ Rate of Caving mm/day Caveability prediction Mammoth ▪ Fragmentation estimation ▪ Drawpoint spacing and support analyses ▪ Surface subsidence assessment American Eagle Keel ▪ Open pit and UG interaction evaluation Isometric view l
Slide 17: PEA: Metallurgical Summary
PEA: METALLURGICAL SUMMARY High Metal Recoveries and Clean Concentrate Recovery (%) 2023 Test work was assimilated with the historical test work to Domain Cu Mo Ag form the basis of the process design criteria for the PEA Oxide 75.0% n/a n/a Transitional 74.7% 70.9% 66.9% ▪ High copper recovery from
Slide 18: PEA: Mine Design Overview
PEA: MINE DESIGN OVERVIEW Integrated Mine Plan Provides Optionality and Scalability Open pit mining enables rapid payback on ISOMETRIC VIEW Open Pit LOOKING NORTHEAST initial capital and funds development of 154 Mt at 0.39% CuEq 1 bulk underground mine High-grade = 28 Mt at 0.98% CuEq Globe / Marsha
Slide 19: Open Pit Mine Design Overview
PEA: OPEN PIT MINE DESIGN OVERVIEW Favourable Average Open Pit Strip Ratio of 1:1.2 ISOMETRIC VIEW Open Pit LOOKING NORTHEAST 154 Mt at 0.39% CuEq 1 ▪ 154 Mt Open Pit Inventory consisting of High-grade = 28 Mt at 0.98% CuEq Globe / Medium-grade = 45 Mt at 0.33% CuEq Marsha ▪ 73 Mt at 0.58% CuEq1 (HG
Slide 20: Underground Mine Design Overview
PEA: UNDERGROUND MINE DESIGN OVERVIEW ▪ 211 Mt Underground Inventory Underground ▪ 47 Mt - Keel 211 Mt @ 0.53% CuEq 1 ▪ 155 Mt - American Eagle Caving = 202 Mt at 0.54% CuEq ▪ 9 Mt - Development material Development = 9 Mt at 0.42% CuEq ▪ The cave footprints would be accessed via a twin American dec
Slide 21: Mine Production Schedule
PEA: MINE PRODUCTION SCHEDULE Life-of-Mine Processed Material Total Processed Material by Material Type 18 16 Open Pit Sulphide Transitional 14 Underground Sulphide Oxide Quantity (million tonnes) 12 10 8 6 4 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32
Slide 22: Open Pit Mine Production Schedule
PEA: OPEN PIT MINE PRODUCTION SCHEDULE Mined Material by Period 30 Copper Prince Mammoth Globe Old Reliable 25 Marsha Bald / Jailhouse Rum Underground - Development 20 Underground - Keel Underground - American Eagle Quantity (Mt) Waste 15 10 5 - -1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Slide 23: Underground Mine Production Schedule
PEA: UNDERGROUND MINE PRODUCTION SCHEDULE Underground Development Metres and Mill Feed by Period 12 10,000 9,000 10 8,000 Mill Feed (million tonnes) 7,000 Development (metres) 8 6,000 6 5,000 4,000 4 3,000 2,000 2 1,000 0 0 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Slide 24: PEA: Underground Mine Production Schedule
PEA: UNDERGROUND MINE PRODUCTION SCHEDULE American Eagle ▪ Development of twin declines commencing in Year 3 Keel ▪ Cave production beginning in Year 8 ISOMETRIC VIEW LOOKING NORTHEAST ▪ Underground cave production would ramp up over a 3-year Underground Footprint: Development and Extraction Sequenc
Slide 25: Processing Flowsheet
PEA: PROCESSING FLOWSHEET Grinding Circuit Co–Mo Rougher Flotation and Regrind Co–Mo Cleaner Primary Flotation Open Pit Crusher Sag Mill Ball Mill Sulphide Stockpile Co–Mo Radial Stacker Concentrate 5-Stage Mo Thickener Tailings Thickening Cleaner Flotation & Filtering Mo Dry Stack Tailings Rougher
Slide 26: PEA: Site Infrastructure
PEA: SITE INFRASTRUCTURE Configured for scalability In-pit Waste Explosive Rock Dump Facilities Overland Conveyor Materials handling synergies Low-grade Stockpiles between open pit and underground External Open Pits Primary Waste Crusher Rock Dump Process (136 Mt) HLF Plant (20 Mt) SXEW Underground
Slide 27: PEA: Capital Expenditures
PEA: CAPITAL EXPENDITURES Low Initial Capital with a two-year construction period Initial Capital Expenditure Developed using EPCM project development approach with quotes, design driven quantity estimations and first principles Owners Costs and Contingency Process Infrastructure including Crushing
Slide 28: Operating Costs
PEA: OPERATING COSTS Average Life-of-Mine Production Cash Costs3 of $1.67/lb Copper Open Pit: Contractor-operated conventional truck and shovel Developed from first principles based on quantities generated from ▪ Open pit operating cost applied to mineralized material and waste mine design, producti
Slide 29: Permitting and ESG
FARADAY COPPER PERMITTING AND ESG™
Slide 30: Permitting Pathway
PERMITTING PATHWAY Plan of Operations and 404 Permit Plan of Operations ▪ Ground water National Environmental Update Plan of Operations and ▪ Surface water Environmental Impact bonding ▪ Air, Biological Policy Act Statement ▪ Tribal Record of Applications consultations After National Decision submit
Slide 31: Environmental & Stakeholder Engagement
ENVIRONMENTAL & STAKEHOLDER ENGAGEMENT Building a Framework for Data Collection and Engagement ENVIRONMENT STAKEHOLDER ENGAGEMENT Baseline environmental monitoring Commitment to open dialogue and systems in place for data collection to support for the local economy and social support permitting proc
Slide 32: Exploration
“’| FARADAY COPPER
Slide 33: Resource Expansion and New Discoveries
RESOURCE EXPANSION AND NEW DISCOVERIES Significant Growth Opportunities ▪ Mineral resource open laterally and at depth Holy Joe Fault ▪ Define and expand high-grade zones ▪ Multiple untested breccia and porphyry targets across the property Exploration Mineral Upside Resource Area chrysocolla malachi
Slide 34: Intersected Massive Copper Sulphide
INTERSECTED MASSIVE COPPER SULPHIDE A Copper Prince Breccia N A’ A Glory Hole Copper Giant Holly Copper Copper Prince Knight Copper Historical drill A’ Duchess hole trace Open pit shell Breccia 200 m Drill Hole Assay Results Block Model Copper Grade Copper Grade (%) (%) >2.00 >2.00 1.00 1.00 15.0 m
Slide 35: Continuous Mineralization Outside Open Pit
CONTINUOUS MINERALIZATION OUTSIDE OPEN PIT Copper Giant A’ N Breccia A Glory A’ Hole Copper Giant A Copper Holly Prince Copper Knight Copper Duchess Historical drill hole trace 100.12 m at 0.69% Cu, Open pit shell Drill Hole 1.15 g/t Ag, 0.04 g/t Au, Breccia 200 m Assay Results Block Model from 34.8
Slide 36: Potential for Resource Expansion at Keel
POTENTIAL FOR RESOURCE EXPANSION AT KEEL A A’ Looking Northwest Looking Northeast N Inset section line Keel Underground Drill Hole Assay Results Block Model A Shape in Copper Grade Copper Grade (%) Historical drill (%) section hole trace >2.00 >2.00 Open pit shell 484.81 m at 0.42% Cu, 2.77 1.00 1.0
Slide 37: Potential for UG Footprint Consolidation
POTENTIAL FOR UG FOOTPRINT CONSOLIDATION Looking Northeast Mammoth A’ A N Drill Hole Assay Results Block Model 66.26 m at 0.87% Cu, Copper Grade Copper Grade 1.22 g/t Ag, (%) (%) from 278.61 m A Historical drill >2.00 >2.00 1.00 1.00 136.48 m at 0.54% Cu, hole trace Open pit shell A’ 0.70 0.70 0.83
Slide 38: Exploration Data Collection
EXPLORATION DATA COLLECTION ▪ Geological mapping N ▪ Detailed airborne electromagnetic geophysical survey A' ▪ Reinterpreting historical OR Mammoth geophysical data ▪ Detailed airborne spectral survey A planned to commence ▪ Update target ranking and 1 km prioritization for future drill programs A A
Slide 39: Opportunities and Next Steps
OPPORTUNITIES AND NEXT STEPS Phase II drill Gold by-product Asset Phase III drill District program potential scalability program exploration ▪ Recent results ▪ Targeting potential ▪ Potential for ▪ 20,000 m drill ▪ New airborne demonstrate gold inclusion in production rate program geophysical and po
Slide 40: Appendix
FARADAY COPPER APPENDIX
Slide 41: Copper Creek: Mineral Resources (2023)
COPPER CREEK: MINERAL RESOURCES (2023) Grade Contained Metal Category Tonnes (Mt) Cu Mo Ag CuEq 2 Cu Mo Ag CuEq 2 (%) (%) (g/t) (%) (Mlbs) (Mlbs) (Moz) (Mlbs) Open Pit (OP) Measured 67.2 0.48 0.008 1.2 0.51 710.5 12.5 2.6 751.1 Indicated 59.9 0.31 0.008 0.6 0.33 412.9 10.1 1.1 440.5 M&I 127.1 0.40 0
Slide 42: Copper Creek: Notes to Mineral Resources
COPPER CREEK: NOTES TO MINERAL RESOURCES ▪ CuEq: Copper equivalent; g/t: Grams per tonne; Mlb: Million pounds; Moz: Million troy ounces; Mt: Million tonnes ▪ The mineral resources in this estimate were prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Stand
Slide 43: Endnotes
ENDNOTES 1. Preliminary Economic Assessment (PEA) copper equivalent (CuEq) values are calculated using commodity type and price, considering the relevant recovery rate based on domain, applied using a regression formula as a function of grade. Recovery regression formulas are based on the outcomes o
Slide 44: Contact Information
CONTACT INFORMATION STACEY PAVLOVA, CFA Suite 250, 200 Burrard Street VP Investor Relations Vancouver, BC Canada 778-730-1067 www.faradaycopper.com info@faradaycopper.com