Surge Copper Corp. · TSXV:SURG
Surge Copper — Investor Presentation (June 2024)
40 slides from Surge Copper's investor presentation, Jun 1, 2024
Slide 1: Copper Discovery & Development in British Columbia
TSXV:SURG | OTCQB:SRGXF | FRA:G6D2 Copper Discovery & Development in British Columbia June0 2024
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 HAS 100% OWNERSHIP OF A LARGE LAND POSITION IN THE B ERG -H UCKLEBERRY -O OTSA DISTRICT Competitive Advantages ✓Simple 100% ownership of 125,499- hectare contiguous land package ✓Over 1.4 Bt of combined M+I resources1 at Berg & Ootsa ✓Deposits accessible by road, off Trans-C
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 After-Tax NPV8% 5.8Blbs Life-of-Mine Payable CuEq1 Production 30 Year Mine Life Annual Payable CuEq 20% Base Case After-Tax IRR 191Mlbs Production C$348m Life-of-Mine
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 $2.50 267 264 263 399 Mlbs LOM Payable Copper Eq. (Mlbs CuEq
Slide 6: Metal Price Sensitivity
Metal Price Sensitivity B ERG PEA ECONOMICS ARE ROBUST UNDER A WIDE RANGE OF LONG - TERM COMMODITY PRICE ASSUMPTIONS After-Tax NPV8% Sensitivity to Cu & Mo Prices (C$mm) After-Tax IRR Sensitivity to Cu & Mo Prices (%) - Base Case Copper Price (US$/lb) Copper Price (US$/lb) $2.80 $3.20 $3.60 $4.00 $4
Slide 7: Simple Project Design
Simple Project Design L OW COMPLEXITY CONFIGURATION DESIGNED TO MINIMIZE ENVIRONMENTAL FOOTPRINT & CARBON EMISSIONS Highlights ✓Single, long-life open pit mine ✓Use of downhill, electric- powered overland conveyors ✓Conventional flowsheet to produce copper concentrate (with PM by- products) plus mol
Slide 8: One of the Largest Resource Bases in Western Canada
One of the Largest Resource Bases in Western Canada P RIMARY COPPER PORPHYRY DEPOSITS | M&I RESOURCE TONNES 1 3,000 - Development Projects 2,500 - Mines Global M&I Resource (Mt) 2,000 1,500 1,000 500 0 Casino Huckleberry Gibraltar Kwanika Highland Valley Copper Mountain Red Chris North Island Saddle
Slide 9: Selected Comparables
Selected Comparables S INGLE - ASSET JUNIORS WITH LARGE - SCALE PORPHYRY DEVELOPMENT PROJECTS AND RECENT ECONOMIC STUDIES Study / LOM LOM After-Tax After-Tax NPV / Capex / lb Enterprise EV / EV / lb Project Location Mine Life Capex NPV2 Value3 Year CuEq1 IRR2 Capex CuEq NPV CuEq (US$ billions) (US$
Slide 10: Re-rating Potential
Re-rating Potential 3-4 X SHARE PRICE RETURN REQUIRED TO BRING S URGE IN LINE WITH PEER GROUP EV/CuEq Re-rating Potential1 EV/NPV Re-rating Potential2 Peer Group Surge Copper Peer Group Linear Regression - Ex Outliers Peer Group Surge Copper Peer Group Linear Regression - Ex Outliers $400 $400 $350
Slide 11: Track Record of Growth in Per Share Resource Exposure
Track Record of Growth in Per Share Resource Exposure M EAURED & I NDICATED C U E Q 1 RESOURCE PER FULLY DILUTED SHARE 50.0 45.1 45.0 40.0 Drivers: 35.0 • Updated Berg Pounds CuEq / Share MRE 29.9 30.0 • $4m raised • Acquisition of 100% of Berg 25.0 Drivers: 23.5 • Updated Ootsa MRE 20.0 Drivers: •
Slide 12: 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, AI and infrastructure investment denisity higher metal utilization 2
Slide 13: 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 14: Catalysts
Catalysts R ECENTLY ANNOUNCED $5 M FUNDING PACKAGE FULLY FUNDS S URGE ’ S PFS TECHNICAL WORK PROGRAMS IN 2024 ✓ Advancing Berg toward PFS (targeting 2025) ✓ Technical work programs in 2024 to include metallurgy, geotech, geochem, environmental baseline ✓ Advancing high priority exploration targets i
Slide 15: 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 16: Ootsa Project
7 COPPER CORP Ootsa Project
Slide 17: 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 18: 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 19: Regional Exploration
Regional Exploration 18
Slide 20: 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 21: Berg Deposit Geological Model
Berg Deposit Geological Model S IMPLIFIED GEOLOGICAL MODEL Plan View Cross Section 20
Slide 22: 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 23: Berg 2023 Exploration
Berg 2023 Exploration T HREE CORE HOLES FOR 2077 M | T ARGETING DEEPER PORTIONS OF B ERG DEPOSIT ALONG PERIPHERY OF DEPOSIT 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 dri
Slide 24: 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 25: 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 26: 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 27: 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 28: Corporate Info
Corporate Info 27
Slide 29: Capitalization
Capitalization A LL - EQUITY CAP STRUCTURE Equity Capitalization1 Key Announcements over Last Twelve Months $0.25 3.0 Berg met Basic Shares Outstanding 275.8M program kick off Market Cap $51.0M 2.5 $0.20 Cash $4.7M Berg 627m Berg PEA: @ 0.25% C$2.1B NPV Cu, 0.026% Side-car Enterprise Value $46.3M &
Slide 30: Surge Team
Surge Team C OMMITTED PROFESSIONALS WITH SIGNIFICANT EXPERIENCE IN OPERATIONS , EXPLORATION , AND FINANCE Management Team Board of Directors Leif Nilsson | Chief Executive Officer & Director Christian Kargl-Simard | Non-Exec Board Chair Metallurgical engineer, mining executive and former investment
Slide 31: 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 30
Slide 32: 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 33: 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 34: 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 35: 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 36: Opex Buildup
Opex Buildup T OTAL UNIT OPERATING COSTS OF C$13.26/ T MILLED Overview Operating Cost Esimates On-site Unit Operating Costs • Processing, mining, and G&A operating costs built up from first principles basis using recent benchmark data with Mining* C$/t mined $2.40 certain items having quoted and ava
Slide 37: 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 38: 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 39: 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 40: 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