Arizona Sonoran Copper Company Inc.

Financials:

Primary ticker: TSX:ASCU
Stage of development: Exploration, Development
Primary minerals: Copper
Project to promote: Cactus Mine and Parks, Salyer Project
Project location: USA
Website: www.arizonasonoran.com

Corporate presentation: Click here

Corporate video: Click here

ASCU’s objective is to develop the Cactus and Parks/Salyer Project and become a mid-tier copper producer with low operating costs, that could generate robust returns for investors, and provide a long term sustainable and responsible operation for the community and all stakeholders.

The Cactus Project is in the Preliminary Economic Assessment stage, contemplating a simple heap leach and SXEW operation over an 18-year mine life, producing an average of 28 ktpa (~56 mlbs annually) LME Grade A copper cathode. A newly issued Maiden Mineral Resource Estimate of 2.9B lbs of Copper on the Parks/Salyer Project is located 2 km from the Cactus Mine (1.6B lbs ind | 1.9B lbs inf), within the property boundary and presents the opportunity to significantly scale the contemplated operation at Cactus. The Company is currently undergoing a drilling program to convert mineral resources at P/S and Cactus to the measured and indicated categories for a future rescoped Technical Report.

Cash: USD$32 M
Debt: NIL

Major shareholders:
Tembo – 35%
Rio Tinto – 7.4%
Commodity Capital – 4.4%
Delbrook 2.8%
Macquarie 2.1%
Management Ownership – 6%

Management Profile

George Ogilvie – President and CEO

George Ogilvie, has over 33 years of management, operating and technical experience in the mining industry. Mr. Ogilvie was until most recently the President & CEO of Battle North, a position he was appointed to, in 2016 whilst the company was under financial insolvency & restructuring proceedings. During his 5 year tenure at Battle North, Mr. Ogilvie and his team successfully completed a turnaround of the company resulting in an increase in the resource base from 400 k ounces Au to approximately 1.3 million oz Au, completion of a positive bulk mining reconciliation program resulting in de-risking of the project, delivery of a preliminary economic assessment and follow on feasibility study in relation to the project with a post-tax IRR of 50% and completion debt and equity financing of over C$100m associated with project construction. Battle North was acquired by Evolution Mining Limited in May 2021 at a 45% premium to the prevailing spot price. Prior to this, Mr. Ogilvie was the CEO of Kirkland Lake Gold Inc. where he and his team implemented a turnaround strategy which included, amongst other items, improving operations at the Macassa Mine and the acquisition of St. Andrew Goldfields, resulting in significant returns for shareholders. Previously, Mr. Ogilvie was the CEO of Rambler Metals and Mining PLC, where he and his team guided the evolution of the company from grassroots exploration to a profitable junior producer. Mr. Ogilvie began his mining career in 1989 with AngloGold in South Africa and he subsequently held other roles at the Ruttan Mine in Northern Manitoba for HudBay Minerals Inc., the McCreedy West Mine and also as Area Manager for Dynatec Corporation. Currently, Mr. Ogilvie also serves on the board of Rupert Resources Ltd.

Mr. Ogilvie received his B.Sc. (Hons.) in Mining and Petroleum Engineering from Strathclyde University in Glasgow, Scotland. He is a Professional Engineer and also holds his Mine Managers Certificate (South Africa).

What is your rationale for taking part in 121 Mining Investment?

The 121 London event will be the first time ASCU has introduced the company to the European market, and is seeking to expand its shareholder base. ASCU IPO’d onto the TSX in Nov 2021.

Upcoming catalysts are centered around building the foundation of a successful future copper heap leaching operation in Arizona, including:
1. Continued drilling results
2. Ongoing metallurgical results
• Cactus and Parks/Salyer Column leach testing
• Nuton Results on the Cactus and Parks/Salyer Project
3. Ongoing permitting

What recent news would you like to highlight to investors attending?

September 28, 2022 – ARIZONA SONORAN DOUBLES GLOBAL LEACHABLE RESOURCE INVENTORY AND DECLARES MAIDEN MINERAL RESOURCES AT PARKS/SALYER OF 2.92 BILLION POUNDS AT 1.015% CU

September 13, 2022 – ARIZONA SONORAN CACTUS EAST DRILLING DEMONSTRATES CONSISTENCY OF MINERALIZATION; INTERSECTS 148.5 FT OF 2.57% TCU

September 7, 2022 – ARIZONA SONORAN PARKS/SALYER EXPLORATION DRILLING INTERCEPTS 531 FT OF 1.10% TCU

What are your key goals in 3 months, 6 months, 12 months?

3 Months:
Complete infill drilling at Parks/Salyer and begin exploration
Continue to advance permitting
Continue geotechnical and hydrological assessments
Advance metallurgical studies

6 Months:
Complete infill drilling at Parks/Salyer and begin exploration
Preliminary Nuton Results
Continue to advance permitting
Continue geotechnical and hydrological assessments
Advance metallurgical studies

12 Months:
Complete drilling at P/S and Cactus
Deliver results from Rio Tinto’s Nuton technology
Continue to advance permitting
Advance metallurgical studies
12 – 18 mos from September 2022, complete a rescoped Technical Study combining both Cactus and Parks/Salyer

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Permitting is a risk, although we are on private land with no federal nexus. Because we are on private land, we work with the State and County level regulatory bodies which dictate a streamlined process. We are focused on being good partners at the local level, with the social license to operate.

Inflation is a risk for all companies. With a minimal CAPEX ($124 million)in the PEA, inflationary increases to the CAPEX should not impact the finance-ability of the asset.

What do you think makes your company such a compelling investment?

The low risk brownfield copper project is now among the top independent copper deposits in the US from a size and scale perspective. Located on private ground in Arizona, the project demonstrates low risks to development including, low capex, streamlined permitting process, a strong management team and opportunity to continue growth and scale.

What are the top 3 key investor takeaways?

Brownfield, Scalable Development Project in a Top Tier Location.
Robust PEA: Low Capital Intensity
Private Landownership = Lower risk permitting process
Building scale and growth with 1.6B lbs ind and 4.9B lbs inf copper resource
Supportive long-term copper fundamentals