Arizona Sonoran Copper

Arizona Sonoran Copper 200x300px

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

ASCU is focused on developing the Cactus Project, a brownfield copper project, on private land in Arizona. The company is on track to issue its first PFS in Q1 2024, envisaging a 45ktpa simple heap leach and SX/EW copper operation. With permitted water availability, a streamlined permitting framework and infrastructure already in place, ASCU’s Cactus Project is a lower risk copper development project in an infrastructure-rich and geopolitically safe region. The Cactus Mine Project, also the third largest independent copper development project in the US, is located less than an hour’s drive from the Phoenix International airport via highway i-10, with grid power and the Southern Union Pacific Rail line running past the Project’s main road.

Cash: USD 18M
Debt: NIL

Major shareholders:
Tembo – 31%
Rio Tinto – 7%
Beedie
Delbrook
Konwave / Gold 3000
Management Ownership – 5%

Financials

Management Profile

George Ogilvie, has over 34 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?

ASCU management is seeking to update it’s European shareholders and continue building market awareness of it’s high-quality project, team and the right commodity. The company has US$18M and is well financed to deliver a PFS early in the new year.

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

September 6, 2023 – Arizona Sonoran Updates on Company Activities and Announces the Appointment of Steve Dixon, Chief Metallurgist

September 12, 2023 – Arizona Sonoran drills 1.78% CuT over 639 ft (194.8 m) from the Parks/Salyer Deposit

June 5, 2023 – Arizona Sonoran Reports Positive NutonTM Technologies Extraction Rates on Cactus Primary Sulphides

April 3, 2023 – Arizona Sonoran Receives its Mined Land Reclamation Permit

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

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

3 Months:
Rezone Parks/Salyer Extension (MainSpring)
Infill to Measured drilling at Cactus and Parks/Salyer
Potential mineral resource update on Cactus & Parks/Salyer, with a high conversion rate expected from inferred to indicated category, ahead of the PFS in Q1 2024

6 Months:
Complete a commercial framework with Nuton – this will trigger a Phase II metallurgical study and a new drilling program at Cactus West, focused on expanding primary resources
Complete the Pre-Feasibility Study, which triggers project financing discussions as well as final permitting (including major permit amendments and minor permit applications)
Begin the Definitive Feasibility Study

12 Months:
Deliver a PFS and near completion of a DFS
Advance discussions for project financing
Deliver final mining permits
Deliver results from Rio Tinto’s Nuton technology

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

Permitting is always a risk no matter where you operate. For ASCU, the company has demonstrated the social license to operate in Casa Grande, as it has obtained all major permits related to the PEA. While on private land with no federal nexus, permitting is a streamlined process.

Inflation, while it seems to be more under control now, is a risk for all companies. With a minimal CAPEX ($124 million) in the PEA, inflationary measures will increase the CAPEX, yet should not impact the finance-ability of the asset.

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

ASCU is delivering the next Copper Mine in Arizona. The lower risk brownfield copper project is among the top copper deposits in the US from a size and scale perspective. Located on 100%-owned and private ground in Arizona, the project benefits from low capex, a streamlined and advanced permitting process, a proven and operations focused management team and the opportunity to become a major contributor to copper in the USA.

What are the top 3 key investor takeaways?

High-quality copper project
Growth Oriented
Experienced and operations-focused management team