Arizona Sonoran Standalone PEA for Cactus Open Pit Project Reports Post-Tax NPV8 of US$2.03 Billion (C$2.77 Billion) and IRR of 24% and LOM EBITDA of US$11.29 Billion (C$15.36 Billion)
-
Key Performance Indicators:
-
US$2.03B Net Present Value (“NPV”) (8% discount, after-tax) - 24% Internal rate of return (“IRR”)
- 4.9 years Payback Period
-
-
Life of Mine (“LoM”) Gross Revenue of
$20.8 billion -
LoM Free Cash Flow (“FCF”) of$7.3 billion (unlevered) -
Cash
costs (C1) of
$1.82 and All in Sustaining Costs (“AISC”) of$2.00 per pound of copper -
Financial and operational executability nowthrough transition to
Open Pit operation- 94% material from open pit mining (Cactus West and
Parks /Salyer), 6% from the Stockpile and Cactus East underground
- 94% material from open pit mining (Cactus West and
- 232 million pounds (“lbs”) (116,052 short tons (“st”)) average annual copper cathode production over the first 20 years of operation and a total of 5,339 million lbs (2,669,342 st) of copper cathode produced over the 31-year operating mine life
-
Cactus Project is well positioned to add value in a variety of copper price environments-
Copper Price Assumption
-
$3.90 /lb Cu -
$4.50 /lb Cu
-
-
NPV8 (after-tax)
-
$2,032 million -
$2,927 million
-
-
IRR (after-tax)
- 24%
- 30%
-
Payback (after-tax)
- 4.9 Years
- 4.5 Years
-
Development Capital -
$668 million -
$668 million
-
-
LoM FCF (After Tax)
- 7,295 million
- 9,777 million
-
Copper Price Assumption
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240807400084/en/
FIGURE 1: Cumulative Stacked Recoverable Copper (Graphic: Business Wire)
A webinar will be held on
The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
TABLE 1: SUMMARY OF KEY METRICS
Valuation Metrics (Unlevered) |
Unit |
2024 PEA
|
Net Present Value @ 8% (pre-tax) |
$ millions |
2,769 |
Net Present Value @ 8% (after-tax) |
$ millions |
2,032 |
Internal Rate of Return (after-tax) |
% |
24.0 |
Payback Period (after-tax) |
# years |
4.9 |
Project Metrics (Imperial) |
Unit |
2024 PEA
|
Construction Period – SXEW plant |
# years |
1.5 - 2 |
Life of Mine (“LoM”) |
# years |
31 |
Strip Ratio |
Waste : Feed |
2.23 |
LoM Mineralized Material Mined |
ktons |
889,004 |
|
% CuT |
0.46 |
LoM Avg Annual Contained Copper Production |
000 tons millions lbs |
86 172 |
LoM Annual Crusher Throughput |
millions tons |
29 |
Annual Copper Production (years 1-20) |
000 tons millions lbs |
116 232 |
Recovery (years 1-20) |
%CuTSol |
83 |
LoM Recoveries (LOM) |
% CuTSol |
73 |
LoM Oxide |
% CuTSol |
92 |
LoM Enriched |
% CuTSol |
85 |
LoM Primary (conventional leaching) |
% CuT |
25 |
LoM Recovered Copper Cathodes |
K pounds |
5,338,683 |
|
$ millions |
668 |
Sustaining Capital |
$ millions |
1,169 |
Cash Cost (C1)* |
$/lb Cu |
1.82 |
All in Sustaining Cost (AISC)* |
$/lb Cu |
2.00 |
LoM Revenues |
$ millions |
20,821 |
LoM EBITDA |
$ millions |
11,292 |
LoM FCF (unlevered) after tax |
$ millions |
7,295 |
Notes: |
||
*Project operating costs include mine operating, process plant operating, and general and administrative costs (“G&A”). Total production costs include royalty expense. The AISC additionally includes initial Capex, sustaining Capex, reclamation & closure. |
He continued, “We now look forward to completing metallurgical programs and the infill drilling to support a PFS expected in 1H2025. Clearly, Cactus shows merit on a standalone basis and we will continue to move forward with this mine plan, while continuing to work with our partner, Nuton Technologies, a Rio Tinto Venture. We envisage Cactus, a brownfield
Key Impacts on the NPV:
-
Mine plan execution rescopes to 94% open pit
-
Parks /Salyer and Cactus West are open pit operations; changes positively impact annual throughput, mining costs, operating costs and processing costs.
-
-
Mineralized material impacts
-
LoM tonnage processed of 889 million st, including:
-
659 million st of oxides and enriched material
Parks /Salyer: 69%-
Including: new MainSpring inferred mineral resources of
245 Mst @ 0.39% CuT (PR datedJUL 16, 2024 )
-
Including: new MainSpring inferred mineral resources of
- Cactus West: 23%
- Cactus East: 6%
- Stockpile 2%
-
230 million st of primary sulphides to the leach pads with current recoveries reported at an average of 25% from year 15
Parks /Salyer 34%- Cactus West: 66%
-
659 million st of oxides and enriched material
-
LoM tonnage processed of 889 million st, including:
-
Processing cost impacts
-
Processing initial capital expenditure (“capex”) of
$511 million including contingency(SXEW plant and owner’s costs) -
Processing sustaining capital of
$553 million (process plant - average of$18 million per year) -
Processing operating costs (“opex”) of
$2.29 /st
-
Processing initial capital expenditure (“capex”) of
-
Other cost impacts
- Updated salvage cost, land sales, closure and royalties
-
Mining cost impacts
-
Mining opex and capex impacted by
Parks /Salyer rescope to an open pit mining operation -
Initial Capex of
$157 million (pre-production stripping) -
Mining sustaining capital of
$544 million , optimizing the per ton mining costs (average of$18 million per year) -
Operating expenditures of
$8.16 /t processed
-
Mining opex and capex impacted by
The Company intends to file a technical report (the “Technical Report”) in respect of the PEA in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile and the Company’s website within 45 days of the MRE News Release.
Preliminary Economic Assessment Summary
The 2024 PEA supersedes the PFS titled “Cactus Mine Project NI 43-101 Technical Report and Pre-Feasibility Study,
A total of 2,872 million tons will be mined and a total of 889 million tons processed, recovering 5.34 billion pounds of copper cathodes over the LoM or 2,669,000 tons. Copper cathodes will be produced directly onsite via heap leach and SXEW, including a four year ramp up period. Total Copper recoveries are planned at an average of 73%, extracting copper from the oxides, enriched and primary sulphides. See Exhibit 1 and 2 for mine plan, sequencing, costs and economics. Gross acid usage is calculated at 22 lbs per ton at a cost of
Current onsite and nearby infrastructure includes:
-
Onsite administration buildings, geology, core storage, completed earthworks, substation, parking lot and access roads -
Clean power via onsite substation for
$0.07 /kWh -
Paved access roads and easy access to interstate highways
I-8 andI-10 - Union Pacific railroad line adjacent to the property
-
Casa Grande ,Maricopa andPhoenix are all located nearby to supply materials/consumables in addition to a skilled labour pool - Permitted water available onsite, and additional water may be available through the city
- Flat land and low altitude
-
Located within the
City of Casa Grande industrial park
TABLE 2: Report Sensitivities to the Copper Price
Revenue, NPV and IRR Sensitivity Based on Copper Price |
|||||
Metal Price |
Copper Price |
Revenue
( |
NPV, before tax @ 8% ( |
NPV, after tax @ 8% ( |
IRR after Tax |
Base Case |
|
|
|
|
24% |
20% |
|
|
|
|
32% |
10% |
|
|
|
|
28% |
-10% |
|
|
|
|
20% |
-20% |
|
|
|
|
16% |
Mining and Processing Operations
Mineralized material will be sourced mainly from the two open pits with an overall LoM strip ratio of 2.3:1. The Cactus West pit (1.0:1 strip ratio) and new
Both
The mine schedule for open pit mining at
The mine schedule for open pit mining at Cactus West consists of 306 million tons of feed material grading 0.29% CuT, including 154 million tons of oxide/enriched leach feed material grading 0.26% CuT and 152 million tons of primary leach feed material grading 0.32% CuT. Open pit mining will take place at Cactus West in the years of 7-11, 15, 19, and 23-31. Phase 1 Cactus West is used to smooth stripping requirements of
The Stockpile project contributes 9.8 million tons of conventional leach feed material grading 0.24% CuT which will be used for project commissioning in Year 1 of processing.
After a comprehensive review of Cactus East¸ sub-level caving (“SLC”) was selected as the preferred underground mining method. A sublevel cave underground mine is planned for Cactus East with development beginning in Year 8 and mining completed in Year 22, peaking at 3.9 million tons per year. Total Cactus East feed material mined is projected to be 42 million tons grading 0.83% CuT. The initial Cactus East SLC level will begin at 1,325 ft (404 m) below the surface over 7 sublevels, to a final depth of 1,845 ft (562 m). Access will be via a single decline with a portal located within the existing Cactus West pit. Haulage of mineralized material to surface will be via a vertical conveyor which can be supplemented with truck haulage to surface via the open pit if necessary.
Average annual water consumption is planned at approximately 1,200 gallons per minute, the equivalent of 1,935 acre feet per year, well within ASCU’s permitted 3,600 acre feet per year industrial use allocation, using in place onsite wells.
The PEA envisages that overall tonnage will comprise approximately 25% oxide material, 50% enriched (secondary sulphides) and 25% primary sulphides within the LoM. From year 15 to 22 placed tons will consist of approximately 25% primary, whereas from year 23, will comprise 100% of the operation. Overall copper extraction is impacted by the lower rates from primary sulphides. In the PEA, ASCU includes a conservative 25% extraction rate.
The total LoM costs, operating costs per ton ($/st) of processed material, and dollars per pound ($/lb) of cathode produced are summarized in the three tables below. Project operating costs include mine operating, process plant operating, and general and administrative costs (“G&A”). Total production costs include royalty expense. The AISC additionally includes initial Capex, sustaining Capex, reclamation & closure.
Mining operating cost estimates, prepared by
TABLE 3: LoM OPERATING AND PRODUCTION COSTS |
|||
Cost Elements |
LoM (US$) |
||
Total Cost (US$M) |
US$ / st Processed |
US$ / lb Copper |
|
Mine Operating Cost |
|
|
|
Process Plant Operating Cost |
|
|
|
G & A |
|
|
|
Operating Costs |
|
|
|
Royalties |
|
|
|
Total Production Costs |
|
|
|
Sustaining Capex |
|
|
|
Reclamation & Closure |
|
|
|
Salvage |
- |
- |
- |
All-In Sustaining Costs |
|
|
|
Property & Severance Taxes |
|
|
|
Initial Capex (non-sustaining) |
|
|
|
All-In Costs |
|
|
|
TABLE 4: LoM OPERATING COST AND CASH FLOW |
||
ACTIVITY (LOM) |
US$M |
US$ / st |
LOM REVENUE |
20,821 |
- |
Mining (OP and UG) |
7,252 |
8.16 |
Process Plant |
2,039 |
2.29 |
General & Administration |
50 |
0.06 |
Total Cash Operating Cost |
9,341 |
10.51 |
Royalties |
388 |
0.44 |
Salvage Value |
- |
-0.25 |
Reclamation & Closure |
|
0.03 |
Total Production Cost |
9,529 |
10.72 |
EBITDA |
11,292 |
- |
Total CAPEX |
1,836 |
2.07 |
Net Income Before Taxes |
9,456 |
- |
Taxes and Depreciation |
2,161 |
2.43 |
Free Cash Flow (unlevered) |
7,295 |
- |
The capital cost estimates for the PEA were developed with a -25% to +30% accuracy. The Company uses an estimated overall mining contingency of approximately 18% and according to the
TABLE 5: CAPITAL COST ESTIMATES |
||||
AREA |
DETAIL |
INITIAL CAPEX (US$000’s) |
SUSTAINING CAPEX (US$000’s) |
TOTAL CAPEX (US$000’s) |
Direct Costs |
Mine Costs |
156,856 |
543,609 |
700,465 |
Processing Plant |
259,320 |
408,240 |
667,560 |
|
Infrastructure |
95,740 |
17,211 |
112,951 |
|
Indirect Costs |
45,470 |
16,944 |
62,414 |
|
Owner's Costs, First Fills, & Light Vehicles |
22,921 |
72,030 |
94,951 |
|
Total CAPEX without Contingency |
580,307 |
1,058,034 |
1,638,341 |
|
Contingency |
87,558 |
110,599 |
198,157 |
|
Total CAPEX with Contingency |
667,865 |
1,168,633 |
1,836,498 |
The PEA is based on the updated 2024 MRE, as published in the MRE News Release on
TABLE 6: Cactus Project Mineral Resource Estimate
Material
|
Tons
|
Grade CuT % |
Grade Cu Tsol % |
Contained
|
Contained
|
Measured |
|||||
Total Leachable |
55,200 |
0.94 |
0.79 |
1,032,200 |
873,800 |
Total Primary |
12,300 |
0.51 |
0.05 |
124,400 |
13,400 |
Total Measured |
67,500 |
0.86 |
0.66 |
1,156,500 |
887,200 |
Indicated |
|||||
Total Leachable |
414,800 |
0.60 |
0.53 |
4,965,000 |
4,365,700 |
Total Primary |
150,400 |
0.39 |
0.04 |
1,173,300 |
126,000 |
Total Indicated |
565,200 |
0.54 |
0.40 |
6,138,200 |
4,491,700 |
M&I |
|||||
Total Leachable |
470,000 |
0.64 |
0.56 |
5.997,200 |
5,239,500 |
Total Primary |
162,700 |
0.40 |
0.04 |
1,297,600 |
139,400 |
Total M&I |
632,600 |
0.58 |
0.43 |
7,294,800 |
5,378,900 |
Inferred |
|||||
Total Leachable |
299,600 |
0.43 |
0.38 |
2,572,400 |
2,262,800 |
Total Primary |
174,500 |
0.36 |
0.04 |
1,267,500 |
124,700 |
Total Inferred |
474,000 |
0.41 |
0.25 |
3,839,900 |
2,387,500 |
NOTES: |
|||||
1. Total soluble copper grades (Cu TSol) are reported using sequential assaying to calculate the soluble copper grade. Tons are reported as short tons. |
|||||
2. Stockpile resource estimates have an effective date of 1st March, 2022, |
|||||
3. Technical and economic parameters defining mineral resource pit shells: mining cost |
|||||
4. Technical and economic parameters defining underground mineral resource: mining cost |
|||||
5. Technical and economic parameters defining processing: Oxide heap leach (“HL”) processing cost of |
|||||
6. Royalties of 3.18% and 2.5% apply to the ASCU properties and state land respectively. No royalties apply to the MainSpring property. |
|||||
7. Variable cut-off grades were reported depending on material type, potential mining method, potential processing method, and applicable royalties. For ASCU properties - Oxide open pit or underground material = 0.099% or 0.549% Cu TSol respectively; enriched open pit or underground material = 0.092% or 0.522% Cu TSol respectively; primary open pit or underground material = 0.226% or 0.691% CuT respectively. For state land property – Oxide open pit or underground material = 0.098 % or 0.545% Cu TSol respectively; enriched open pit or underground material = 0.092% or 0.518% Cu TSol respectively; primary open pit or underground material = 0.225% or 0.686% CuT respectively. For MainSpring properties – Oxide open pit or underground material = 0.096% or 0.532% Cu TSol respectively; enriched open pit or underground material = 0.089% or 0.505% Cu TSol respectively; primary open pit or underground material = 0.219% or 0.669% CuT respectively. Stockpile cutoff = 0.095% Cu TSol. |
|||||
8. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, sociopolitical, marketing, or other relevant factors. |
|||||
9. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource; it is uncertain if further exploration will result in upgrading them to an indicated or measured classification. |
|||||
10. Totals may not add up due to rounding |
Metallurgical Testwork
Metallurgical testwork used for the PEA shows good metallurgical recoveries from all deposits with no deleterious elements. Testing in the PEA shows an average of 73% of total copper extracted overall. A column leach testing program for oxides and enriched sulphides, from
Project Overview
Ownership, Social License and Permitting
Of the 5,720 acres, 4,732 acres are considered fee simple and private land. The remaining acreage is State land where ASCU owns either the surface or mineral rights and is in the process of acquiring the surface rights from the State.
ASCU has a well-developed community engagement plan that it has implemented through numerous public meetings and outreach. With the presence of legacy mining in the
Royalties
Opportunities and Next Steps, including Nuton Technologies
Technical Studies
Following the issuance of the PEA, the anticipated next steps for the
It is expected that the 2025 PFS will include the major economic and operational rescope; specifically, rescoping
An Early Works program is in the early phases of being defined and planned for mid-2025, dependent upon funding. The program includes executing the permitting and bonding requirements and optimizing a pre-stripping program for the
Nuton Opportunity
The PEA proposes a robust standalone project incorporating conventional leaching technology. In order to capitalize on the primary sulphides, initial test work has validated the application of Nuton proprietary technology. As per the strategy outlined in the option to Joint Venture (“JV”) press release, dated
Other Future Opportunities
The project has several other opportunities available to continue the optimization of the operation.
- The addition of an In-Pit-Crush-Convey (IPCC) for waste handling instead of truck haulage will be evaluated for improvement in the economics of the project.
-
There is a potential to access the high-grade
Parks /Salyer material earlier, by moving theParks /Salyer open pit centroid further northward
Exhibit 1: Mine Plan and Key Financial Assumptions
Exhibit 1: Production and Cash Costs |
||||||||||||||
Year |
Production (000’s) tons |
Head Grade |
Recovered Copper |
Costs (/lb) |
||||||||||
|
U/G |
OP |
UG |
|||||||||||
|
Cactus West |
Stockpile |
Open Pit Rehandle |
Total Open Pit Moved |
Open Pit Material |
Open |
Cactus East |
% TCu |
% TCu |
ktons |
klbs |
C1 Cost |
AISC |
|
0 |
70,000 |
0 |
0 |
0 |
70,000 |
170 |
69,829 |
0 |
0.12 |
|
48.78 |
87,427 |
|
|
1 |
130,000 |
|
10,000 |
9 |
140,009 |
24,527 |
115,473 |
0 |
0.23 |
|
64.24 |
111,826 |
|
|
2 |
150,000 |
0 |
0 |
0 |
150,000 |
34,303 |
115,697 |
0 |
0.24 |
|
61.62 |
106,669 |
|
|
3 |
140,000 |
0 |
0 |
303 |
140,303 |
30,621 |
109,379 |
0 |
0.25 |
|
72.72 |
126,910 |
|
|
4 |
150,000 |
0 |
0 |
0 |
150,000 |
35,538 |
114,462 |
0 |
0.25 |
|
210.96 |
360,507 |
|
|
5 |
150,000 |
0 |
0 |
0 |
150,000 |
77,997 |
72,003 |
0 |
0.48 |
|
177.01 |
302,233 |
|
|
6 |
152,363 |
0 |
0 |
10,312 |
162,675 |
21,428 |
130,935 |
0 |
0.87 |
|
65.26 |
112,749 |
|
|
7 |
131,119 |
8,881 |
0 |
20,859 |
160,859 |
4,282 |
135,718 |
0 |
0.32 |
|
66.71 |
116,778 |
|
|
8 |
97,685 |
65,000 |
0 |
5,712 |
168,397 |
18,160 |
144,525 |
132 |
0.36 |
0.37 |
176.94 |
303,147 |
|
|
9 |
94,478 |
50,522 |
0 |
0 |
145,000 |
36,401 |
108,599 |
920 |
0.60 |
0.69 |
86.70 |
154,276 |
|
|
10 |
88,593 |
50,558 |
0 |
0 |
139,151 |
33,780 |
105,371 |
2,462 |
0.31 |
0.79 |
116.63 |
207,731 |
|
|
11 |
105,000 |
22,301 |
0 |
0 |
127,301 |
33,486 |
93,815 |
3,456 |
0.33 |
0.82 |
295.39 |
507,032 |
|
|
12 |
125,000 |
0 |
0 |
0 |
125,000 |
49,458 |
75,542 |
3,328 |
0.80 |
0.84 |
220.54 |
378,173 |
|
|
13 |
125,000 |
0 |
0 |
4,601 |
129,601 |
33,652 |
91,348 |
3,825 |
0.76 |
0.92 |
151.19 |
261,603 |
|
|
14 |
115,000 |
0 |
0 |
10,582 |
125,582 |
27,174 |
87,826 |
3,822 |
0.50 |
0.86 |
109.64 |
156,352 |
|
|
15 |
86,891 |
28,109 |
0 |
2,719 |
117,719 |
29,972 |
85,028 |
3,828 |
0.32 |
0.79 |
177.80 |
269,472 |
|
|
16 |
100,000 |
0 |
0 |
4,848 |
104,848 |
24,733 |
75,267 |
3,693 |
0.56 |
0.88 |
203.53 |
306,859 |
|
|
17 |
85,724 |
0 |
0 |
5,478 |
91,202 |
25,134 |
60,590 |
3,502 |
0.72 |
0.88 |
219.74 |
341,302 |
|
|
18 |
53,497 |
0 |
0 |
2,040 |
55,537 |
28,686 |
24,810 |
3,584 |
0.75 |
0.84 |
170.78 |
254,961 |
|
|
19 |
18,367 |
7,763 |
0 |
2,958 |
29,087 |
25,854 |
275,559 |
3,603 |
0.57 |
0.90 |
122.81 |
176,092 |
|
|
20 |
17,015 |
0 |
0 |
12,096 |
29,111 |
16,669 |
346 |
3,535 |
0.47 |
0.75 |
76.39 |
97,761 |
|
|
21 |
9,294 |
0 |
0 |
20,527 |
29,821 |
9,254 |
41 |
2,520 |
0.41 |
0.76 |
61.52 |
70,315 |
|
|
22 |
16,097 |
0 |
0 |
22,520 |
38,617 |
16,079 |
17,895 |
0 |
0.37 |
|
54.06 |
61,131 |
|
|
23 |
0 |
20,813 |
0 |
27,195 |
48,008 |
4,265 |
16,547 |
0 |
0.16 |
|
99.51 |
62,746 |
|
|
24 |
0 |
67,119 |
0 |
22,332 |
89,451 |
15,490 |
51,629 |
0 |
0.22 |
|
88.77 |
58,543 |
|
|
25 |
0 |
67,584 |
0 |
0 |
67,584 |
35,186 |
32,398 |
0 |
0.28 |
|
87.71 |
63,674 |
|
|
26 |
0 |
60,000 |
0 |
5,000 |
65,000 |
30,480 |
29,520 |
0 |
0.28 |
|
72.18 |
61,623 |
|
|
27 |
0 |
60,000 |
0 |
0 |
60,000 |
41,640 |
18,360 |
0 |
0.24 |
|
92.68 |
81,688 |
|
|
28 |
0 |
30,000 |
0 |
4,361 |
34,361 |
26,939 |
3,060 |
0 |
0.32 |
|
94.36 |
68,405 |
|
|
29 |
0 |
34,018 |
0 |
1,997 |
36,015 |
29,305 |
4,712 |
0 |
0.32 |
|
92.06 |
58,879 |
|
|
30 |
0 |
30,000 |
0 |
6,651 |
36,651 |
24,783 |
5,217 |
0 |
0.35 |
|
16.51 |
11,817 |
|
|
31 |
0 |
2,805 |
0 |
7,061 |
9,865 |
1,343 |
1,462 |
0 |
0.33 |
|
|
|
|
|
Exhibit 2: Annual Economics |
||||||
Year |
Revenue |
Operating Cost |
Operating Income |
EBITDA |
Capex |
FCF |
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 |
|
|
- |
- |
|
- |
Exhibit 3: PRICE DECK - ASSUMPTIONS |
||
PRICE / RATE |
UNIT |
LONG TERM |
Copper |
$/lb |
3.90 |
Weighted Average Recovery |
% |
73 |
Sulfuric Acid |
$/ton |
160.00 |
Electricity (Nuclear) |
$/kWh |
0.071 |
NSR Royalty |
|
|
|
% |
2.54% (assumes buyback) on Cactus and a portion of |
|
% |
0.5% on |
Effective Taxes |
% |
22.9 |
Quality Assurance and Quality Control Procedures
The results of these analyses, including the QA/QC checks, were transmitted to a select set of individuals at ASCU and the qualified persons.
Qualified Persons
Each of the persons listed below are authors preparing the 2024 PEA and have reviewed and verified the contents of this news release as it relates to their area of responsibilities. By virtue of their education, experience and professional association membership, each of the below listed persons are considered “qualified person" as defined by NI 43-101.
Scientific and technical aspects of this news release have been reviewed and verified by these Qualified Person’s listed below and
Project Management, M3 Engineering, John Woodson, PE, SME-RM
Metallurgy, M3 Engineering,
Mineral Resources,
Water and Environmental,
Mine Planning,
Links from the Press Release:
Webinar:
https://www.bigmarker.com/vid-conferences/ASCU-newdevelopments
Figures and Tables:
https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
SEDAR+:
https://www.sedarplus.ca
About
ASCU’s objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus and
Non-IFRS Financial Performance Measures
This news release contains certain non-IFRS measures, including sustaining capital, sustaining costs, EBITDA, C1 cash costs and AISC. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Cautionary Statement Regarding Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred mineral resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The mineral resource estimate disclosed in this news release may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the Canadian disclosure requirements of
Forward-Looking Statements
This news release contains “forward-looking statements” and/or “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or the negative connotation thereof. In particular, statements regarding ASCU’s future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves or mineral resources constitute forward-looking statements. Forward-looking statements in this news release include, but are not limited to statements with respect to the results (if any) of further exploration work to define and expand or upgrade mineral resources and reserves at ASCU’s properties; the anticipated exploration, drilling, development, construction and other activities of ASCU and the result of such activities; the mineral resources and mineral reserves estimates of the
ASCU considers its assumptions to be reasonable based on information currently available but cautions the reader that their assumptions regarding future events, many of which are beyond the control of the Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect ASCU, its properties and business.Such risks and uncertainties include, but not limited to, the global economic climate, developments in world commodity markets, changes in commodity prices (particularly prices of copper), risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, risks relating to capital market conditions and ASCU’s ability to access capital on terms acceptable to ASCU for the contemplated exploration and development at the Company’s properties, changes in exploration, development or mining plans due to exploration results and changing budget priorities of ASCU or its joint venture partners, the effects of competition in the markets in which ASCU operates, results of further exploration work, the ability to continue exploration and development at ASCU’s properties, the ability to successfully apply the Nuton™ technologies in ASCU’s properties, the impact of the Nuton™ technologies on ASCU operations and cost relating to same, the timing and ability for ASCU to prepare and complete the 2025 PFS and the costs relating to same, errors in geological modelling, changes in any of the assumptions underlying the PEA, the ability to expand operations or complete further exploration activities, the ability to obtain regulatory approvals, the impact of changes in the laws and regulations regulating mining exploration, development, closure, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in ASCU’s most recently filed Annual Information Form, annual and interim management’s discussion and analysis, copies of which are available on SEDAR+ (www.sedarplus.ca) under ASCU’s issuer profile. ASCU’s anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it based on information available at the date of preparation, those assumptions may prove to be incorrect. There can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and are urged to carefully consider the foregoing factors as well as other uncertainties and risks outlined in ASCU’s public disclosure record.
ASCU disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807400084/en/
647-233-4348
adwoskin@arizonasonoran.com
416-723-0458
gogilvie@arizonasonoran.com
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