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16 hours ago
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Arizona Sonoran Buys-down 0.64% of the Cactus Project Royalties
CASA GRANDE, Ariz. & TORONTO--(BUSINESS WIRE)-- Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) ('ASCU' or the 'Company'), an emerging U.S. copper developer, is pleased to announce that its subsidiaries have exercised their rights to buy-down 0.64% of certain net smelter returns royalties on the Cactus Project (collectively, the 'NSRs'; see FIGURE 1, outlined in yellow), ahead of the applicable July 10, 2025 exercise notice expiry dates. Total cash payments of US$8.91 million will be made to RG Royalties LLC, a subsidiary of Royal Gold Inc. (RLGD:NASDAQ) and Elemental Altus Royalties Corp. (ELE:TSXV), to reduce the aggregate percentage of the NSRs from 3.18% to a remaining 2.54% (collectively, the 'Buy-downs'). The Buy-downs are expected to close on or about August 12 th, 2025. Our team remains focused on the critical workstreams needed to position the Cactus Project as a lower risk, top-tier copper development project and among the best-positioned in North America to deliver copper cathode production. The Buy-downs continue the Company's royalty reduction strategy as it continues to optimize Project economics in advance of the Pre-Feasibility Study ('PFS') scheduled for completion later this year. The remaining 2.54% NSR applies to the Cactus West and Cactus East deposits as well as a portion of the Parks/Salyer deposit, outlined in yellow in FIGURE 1. In early Q2 2025, the Company's subsidiary had two historic ASARCO royalties (Nolles/Wagoner; each 5%) vacated by final judicial order. Additionally, in January, ASCU bought down a royalty on the BCE Property, covering a small portion of the Parks/Salyer deposit, from 1.5% to 0.5% for a cash payment of US$500,000 (PR dated JAN 6, 2025), as outlined in blue in FIGURE 1. The southern portion of the Parks/Salyer deposit outlined in white in FIGURE 1, formerly referred to as the MainSpring Property, is not subject to any royalties and comprises the first four years of production in a conceptual mine plan as contemplated by the 2024 Preliminary Economic Assessment ('2024 PEA'; see PR dated AUG 4, 2024 | Technical Report). George Ogilvie, ASCU President, CEO and Director commented, 'Upon completion of these Buy-downs, the collective reduction of Cactus Project royalties in 2025 will be a strategic milestone for the Company, set to strengthen Project economics, optimize future cash flows and return copper price upside to our shareholders, as projected in the 2024 PEA. Having just completed the $51.75 million bought deal financing, we now have the necessary runway to advance Cactus, with confidence and clarity, through PFS) and then Definitive Feasibility Study to an eventual Final Investment Decision, potentially in Q4 2026. Our team remains focused on the critical workstreams needed to position the Cactus Project as a lower risk, top-tier copper development project and among the best-positioned in North America to deliver copper cathode production, with a projected industry-leading capital intensity.' The Company's subsidiaries, Cactus 110 LLC and Arizona Sonoran Copper Company USA, Inc., have provided notice of exercise of their rights to buy‑down (i) Royal Gold's 2.5% NSR to 2.0% for US$7.0 million and (ii) Elemental Altus' 0.68% NSR to 0.54% for US$1.91 million, that will result in an aggregate reduction in Cactus Project royalties of 0.64% for aggregate payments of US$8.91 million. These NSRs were initially purchased in 2021 by funds of Tembo Capital and Resource Capital Funds, which each subsequently sold its NSRs to Royal Gold (December 2024) and Elemental Altus (September 2023), respectively. The Buy-downs are expected to close on or about August 12, 2025, following which Royal Gold will hold a 2.0% NSR and Elemental Altus a 0.54% on the Cactus Project (as shown in FIGURE 1, outlined in yellow). About the Cactus Project The Project is a lower risk brownfield open pit copper project with onsite permitted water wells, substation and transmission lines, neighbouring nationwide railroad, nearby nationwide highway and an on-site office with a team of 20 engineers and geologists advancing Cactus to PFS, scheduled for completion later this year. The PFS will build off the heap leach and solvent extraction and electrowinning operation, producing LME Grade A copper cathodes, as contemplated in the 2024 PEA. The 2024 PEA projected a low capital intensity of under $10,000 per ton and an unlevered life of mine free cash flow of approximately $7.3 billion, from annual average production of 116,000 short tons of copper cathode over the first 20 years. The 2024 PEA projected an after-tax net present value (8%) of $2.03 billion and internal rate of return of 24%, at a $3.90/lb copper price, and an increase to $2.9 billion and 30%, respectively, at a copper price of $4.50/lb. ASCU has appointed Hannam & Partners as project financial debt advisor for project financing. Upon completion of the PFS, the Cactus Project team will immediately advance required amendments of applicable state permits and initiate the Definitive Feasibility Study for completion ahead of a potential Final Investment Decision, potentially by Q4 2026. Neither the TSX nor the regulating authority has approved or disproved the information contained in this press release. About Arizona Sonoran Copper Company ( | ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Project, on privately held land, contains a large-scale porphyry copper resource and a recent 2024 PEA proposes a generational open pit copper mine with robust economic returns. Cactus is a lower risk copper developer benefitting from a State-led permitting process, in place infrastructure, highways and rail lines at its doorstep and onsite permitted water access. The Company's objective is to develop Cactus and become a mid-tier copper producer with low operating costs, that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Cautionary Statements regarding Forward-Looking Statements and Other Matters Forward-Looking Statements All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute 'forward-looking statements' and 'forward-looking information' (collectively, 'forward-looking statements') within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'advancing', 'ahead', 'anticipated', 'assumptions', 'become', 'believes', 'commitment', 'conceptual', 'confidence', 'contemplated', 'continues', 'could', 'delivery', 'developer', 'emerging', 'estimates', 'exploration', 'eventual', 'expectation', 'feasibility', 'focused', 'future', 'generational', 'later', 'long-term', 'milestone', 'objectives', 'optimize', 'options', 'plan', 'positioned', 'potentially', 'pre-', 'projected', 'proposes', 'rights', 'risk', 'runway', 'scheduled', 'set to', 'strategy', 'studies', 'subject to', 'upside', and 'will', or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, would, will (or not) be achieved, occur, provide, result or support in the future, or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include those relating to the completion (or close) of the Buy-downs (including the timing thereof and resulting reductions in either such NSR individually and/or in the aggregate) and the implications thereof (including impacts on the cash flows and other economics of the Cactus Project, and any upside for shareholders, related to such Buy-downs and/or any other prior royalty reductions or royalties vacated); the impacts of the Company's royalty reduction strategy (including on Project economics), and any related strategic milestone; the impacts of the recently completed bought deal equity financing (including that such financing provides the necessary runway to advance the Cactus Project (including all Project-‑related workstreams) through Pre-Feasibility Study (or PFS) and then Definitive Feasibility Study to an eventual Final Investment Decision, potentially in Q4 2026, and any related confidence and clarity; any eventual Final Investment Decision (including timing thereof); ongoing and future workstreams (including those related to the PFS, and any permit amendments and Definitive Feasibility Study thereafter, or otherwise) and implications thereof (including positioning of the Cactus Project as to associated risk or ranking within Arizona or otherwise, and to deliver copper cathode production, with a projected industry-leading capital intensity); the risk of the Cactus Project; ongoing and future technical studies (including the current ongoing Pre-feasibility Study (or PFS) and any eventual Definitive Feasibility Study), moving forward with such study work (including related or other workstreams) and the timing, results or implications thereof (including any eventual Final Investment Decision); the results of the 2024 PEA (including risk, capital intensity, cash flow, net present value, or returns (including internal rate of return) and other economics, mine plan and production, and proposal of a generational open pit copper mine); the PFS and the Cactus Project contemplated thereby; project financing; the Company's strategic and other objectives (including commitment to disciplined execution and long-term value creation for our shareholders, and the Cactus Project becoming a significant producer of copper cathodes in Arizona and the U.S.); and the future plans or prospects of the Company (including sustainability of the Cactus Project and becoming a mid-tier copper producer). Although the Company believes that such statements are reasonable, there can be no assurance that those forward-looking statements will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this press release which may prove to be incorrect include those set forth or referenced in this press release, as well as those stated in the Company's prior press releases referenced herein (collectively, the 'Referenced PRs'), the technical report for the Cactus Project filed on August 27, 2024 (the '2024 PEA Technical Report'), the Company's Annual Information Form dated March 27, 2025 (the 'AIF'), Management's Discussion and Analysis (together with the accompanying financial statements) for the year ended December 31, 2024 and the quarter already ended in 2025 (collectively, the '2024-25 Financial Disclosure') and the Company's other applicable public disclosure (collectively, 'Company Disclosure'), all available on the Company's website at and under its issuer profile at Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the 'Risk Factors' in the AIF, and the risks, uncertainties, contingencies and other factors identified in the Referenced PRs, the 2024 PEA Technical Report and the 2024-25 Financial Disclosure. The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the AIF, the 2024-25 Financial Disclosure and other Company Disclosure. Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release (or as otherwise expressly specified) and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements referenced or contained in this press release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the AIF, the Referenced PRs, the 2024 PEA Technical Report and the 2024-25 Financial Disclosure. Preliminary Economic Assessments The Preliminary Economic Assessment (or 2024 PEA) referenced in this press release and summarized in the 2024 PEA Technical Report is only a conceptual study of the potential viability of the Cactus Project and the economic and technical viability of the Cactus Project has not been demonstrated. The 2024 PEA is preliminary in nature and provides only an initial, high-level review of the Cactus Project's potential and design options; there is no certainty that the 2024 PEA will be realized. For further detail on the Cactus Project and the 2024 PEA, including applicable technical notes and cautionary statements, please refer to the Company's press release dated August 7, 2024 and the 2024 PEA Technical Report, both available on the Company's website at and under its issuer profile at
Yahoo
08-05-2025
- Business
- Yahoo
Arizona Sonoran Updates on PFS Workstreams at the Cactus Project
CASA GRANDE, Ariz. & TORONTO, May 08, 2025--(BUSINESS WIRE)--Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) ("ASCU" or the "Company"), an emerging U.S. copper developer in Arizona, today provides an update on key workstreams associated with advancing the 2024 Preliminary Economic Assessment ("2024 PEA" see the Aug 7, 2024 Press Release | Technical Report) to Pre-feasibility Study ("PFS"). The 2024 PEA envisages a low capital intensity open pit operation producing over 116,000 short tons or 232 million pounds of copper cathodes annually for the first 20 years of the mine life, via heap leach and solvent extraction electrowinning ("SX/EW") processing of the oxides and enriched material. Activities in 2025 are set to derisk the Cactus Project as we move through the technical studies and to an eventual construction decision post-definitive feasibility study next year. Key workstreams: - The PFS work and workstreams are on track for issuing in 2H2025 - Engineering Hydrology – Vibrating wireline piezometers have been installed in eight drillholes; ground water data is being collected to facilitate the ongoing hydrologic model Geotechnical drilling is complete and test work and final analysis is pending Base case mine planning well underway with varying opportunities to improve Project economics Earthworks and trial excavation of the Cactus West pit using a surface continuous miner - Metallurgy – completed columns to date indicate Parks/Salyer (including MainSpring) metallurgy positively correlates with 2024 PEA results. Additional primary sulphide column testing using conventional heap leaching is ongoing - Cactus West Pit Sampling – samples from the pit lake to be taken in June. Results to analyze the usage of pit lake solution within the PFS flow sheet - Drilling – 65% complete, with final results expected in July - Land use management – Pinal County has selected Cactus' stockpiled alluvium for use as road construction material. In March, a total of 11,000 cubic yards of alluvium was moved offsite for use in road improvement and construction within the local community George Ogilvie, ASCU President, CEO and Director commented, "The Pre-Feasibility workstreams continue on pace to deliver a Mineral Resource Estimate update as well as PFS results and technical report in 2H2025. We tested a Wirtgen SM280 Surface Miner in the Cactus West Open pit earlier this year, both in the Alluvium and Gila Conglomerate which represents approximately 65% of all the material that will have to be moved over the 2024 PEA life of mine. The test results remain subject to ongoing analysis but we were impressed with the unit's productivity and final product size which could be helpful from a reclaim perspective." He continued: "We believe the Cactus Project remains one of only a few copper projects in the United States that can be built in relatively short order with a low capital intensity to produce copper cathode for direct sale to the domestic US market, tariff-free." Engineering Engineering for the site is approximately 53% complete with M3 Engineering as lead consultant, and approximately 70% complete with respect to trade off studies, hydrology and geotechnical programs with the intent to manage costs, dust and noise, vibrations, throughput, flow sheet efficiency and a more consistent output and cash flow. Hydrology study work, managed by Clear Creek Associates, continues on schedule. Geotechnical study work by Call and Nicholas is ongoing, with preliminary results indicating continuity is consistent with assumptions in the 2024 PEA. The Cactus Project team and consultants are separately assessing various mine plans considering, among other things, impacts on project economics, opportunities to mitigate risks, optimizing the open pit approach from the 2024 PEA open pit project, and waste dump design to maximize current lands owned. In February, the first material movement at the Cactus Project began within the pit since closure in 1984. A trial was initiated within a southwestern pushback of the in-situ Cactus West pit, with engineering provided by the Cactus Project team. The trial focused on the potential usage of a surface miner in future operations at Cactus. Stripping of the alluvium managed by earthworks specialists Rango Mining, exposed the Gila Conglomerate after excavating 5-20 ft (6 m) benches, using conventional hydraulic excavator and articulated type trucks. In March, North American Mining and Wirtgen initiated a six-week test to trial a hard rock surface miner SM 280 within the Cactus West historic pit. The surface miner excavated two benches (2 x 20 ft (6 m)) into the Gila Conglomerate and demonstrated the potential of this method for future open pit application. Over 20 key performance metrics were specified for evaluation of the test trial, including instantaneous throughput and operating costs per ton, and the preliminary results outperformed all modelling and performance expectations. Drilling The 130,000 ft (39,600 m) infill drilling is on track for planned issuance of a Mineral Resource Estimate ("MRE") update and disclosure of PFS results in 2H2025. Drilling with three rigs at Parks/Salyer and one at Cactus West, is 67% complete, with 27% of assays reported; all drilling is expected to be complete in June with all results expected in this summer. While many assay results from our infill drilling program at Parks/Salyer remain pending, the geology and assay results received to date are consistent with expectations. We expect a high conversion rate of current inferred MRE to the indicated category, including the Parks/Salyer deposit's southern area. Cactus West Pit Water Sampling A copper analysis of the Cactus West pit lake is planned to begin in June. Crow Industries has been engaged to extract samples for testing at ACZ Laboratories Inc. and Skyline Assayers & Laboratories. Testing will determine the level of copper in solution, through ICP all metal analysis. In addition to the metal content within the pit lake solution, the Company will test for acidity. ASCU is conducting the work to determine the copper levels in the pit water and its pH levels. The Cactus Pit is a terminal groundwater sink, meaning its contents do not infiltrate groundwater. Metallurgy Overall, 19 columns were initiated, as per the 2024 PEA recommendations. Initial results indicate recovery performance is on par or exceeds 2024 PEA test work based on improved cycles over 180 days and extrapolated over 210 days to account for three, 180-day leach cycles. As reference, the 2024 PEA assumed 85% extraction from the enriched material and 92% from the oxide material on a copper soluble basis. Completed Columns Based on the 6 enriched columns from the Parks/Salyer deposit (including MainSpring), the predicted average percent of soluble copper extraction is 94.4% at 210 days of leaching. The column results are assessed based on a "heap efficiency factor", which is the relationship of column test results to operational results. A world class operation would have a factor close to 100%. An operation that uses best practice would be expected to have a factor of about 95% which, if applied to the initial 6 enriched column results, reduces the predicted extractable soluble copper for 210 days of leaching from 94.4% to 89.7% (as compared to the 85% assumed in the 2024 PEA). There may be additional copper extracted from the heap beyond the three leach cycles if best practices are applied throughout the loading and operations processes. This additional copper extraction is not part of the Cactus Project copper extraction model. The six composite samples from Parks/Salyer (including MainSpring) were tested at two labs (Base Met and McClelland labs). The operating conditions for the tests were: crush to P80 of 19 mm (3/4"), column height of 6.2 m (20 ft), raffinate free acid of 5 gpl and irrigation rate of 6 L/hr/m2 (0.0024 gpm/ft2). Ongoing Columns An additional seven enriched composites and four primary composites for column tests also continue in progress at Base Met and McClelland labs. Metallurgical work remains ongoing. A flotation option for copper sulphide recovery remains under evaluation as a possible future optimization of the base case mine plan beyond year 20. Qualified Persons Statement Technical aspects of this news release relating to geology, drilling, and resource have been reviewed and verified by Mr. Allan Schappert – CPG #11758, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure for Mineral Projects. The metallurgy information in this news release has been reviewed and approved by Ms. Laurie Tahija, a Senior Metallurgist, with over 40 years of mineral processing experience. She is a Qualified Person within the meaning of NI 43-101 and is independent of the Company. Ms. Tahija is satisfied that the metallurgical testing procedures and associated assay methods used are standard industry operating procedures and methodologies. She has reviewed, approved and verified the metallurgical information disclosed in this news release, including preliminary, analytical and test data underlying the technical information. Links from the Press Release: August 7, 2024 PR: Technical Report: Neither the TSX nor the regulating authority has approved or disproved the information contained in this press release. About Arizona Sonoran Copper Company ( | ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Project, on privately held land, contains a large-scale porphyry copper resource and a recent 2024 PEA proposes a generational open pit copper mine with robust economic returns. Cactus is a lower risk copper developer benefitting from a State-led permitting process, in place infrastructure, highways and rail lines at its doorstep and onsite permitted water access. The Company's objective is to develop Cactus and become a mid-tier copper producer with low operating costs, that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Cautionary Statements regarding Forward-Looking Statements and Other Matters Forward-Looking Statements All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "advance", "assessing", "assumptions", "become", "believe", "continue", "could", "delivery", "developer", "emerging", "envisages", "estimate", "exploration", "eventual", "expected", "exposure", "feasibility", "forward", "future", "generational", "growing", "indicate", "initial", "initiate", "intent", "long-term", "model", "objective", "ongoing", "on pace", "on track", "opportunities", "optimizing", "option", "pending", "planning", "potential", "predict", "preliminary", "program", "progress", "proposes", "recommendation", "right", "risk", "study", "subject to", "testing", "underway", "upcoming", "will", and "would", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, would, will (or not) be achieved, occur, provide, result or support in the future, or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include those relating to ongoing and future technical studies (including the PFS, any related trade off studies, hydrologic or geotechnical studies, column and other metallurgical testing (including predicted extraction rates), and any definitive feasibility study), continuing such study work, and the timing of completion and results or implications thereof (including any eventual construction decision); de-risking of the Cactus Project; the results of the 2024 PEA (including capital intensity, production, mine life (or life of mine), returns and other economics); the testing of the Cactus West pit lake (including the timing, results thereof and any inclusion in the PFS flow sheet); mineral or copper resources and any realization of value therefrom (including the current MRE and any upcoming update thereof); and the Company's objectives, future plans or prospects (including becoming a mid-tier copper producer with lower operating costs, robust returns and long-term sustainable and responsible operations). Although the Company believes that such statements are reasonable, there can be no assurance that those forward-looking statements will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this press release which may prove to be incorrect include those set forth or referenced in this press release, as well as those stated in the technical report for the Cactus Project filed on August 27, 2024 (the "2024 PEA Technical Report"), the Company's Annual Information Form dated March 27, 2025 (the "AIF"), Management's Discussion and Analysis (together with the accompanying financial statements) for the year ended December 31, 2024 and the quarter already ended in 2025 (collectively, the "2024-25 Financial Disclosure") and the Company's other applicable public disclosure (collectively, "Company Disclosure"), all available on the Company's website at and under its issuer profile at Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the "Risk Factors" in the AIF, and the risks, uncertainties, contingencies and other factors identified in the 2024 PEA Technical Report and the 2024-25 Financial Disclosure. The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the AIF, the 2024-25 Financial Disclosure and other Company Disclosure. Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release (or as otherwise expressly specified) and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements referenced or contained in this press release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the AIF, the 2024 PEA Technical Report, the 2024-25 Financial Disclosure and other Company Disclosure. Preliminary Economic Assessments The Preliminary Economic Assessment (or 2024 PEA) referenced in this press release and summarized in the 2024 PEA Technical Report is only a conceptual study of the potential viability of the Cactus Project and the economic and technical viability of the Cactus Project has not been demonstrated. The 2024 PEA is preliminary in nature and provides only an initial, high-level review of the Cactus Project's potential and design options; there is no certainty that the 2024 PEA will be realized. For further detail on the Cactus Project and the 2024 PEA, including applicable technical notes and cautionary statements, please refer to the Company's press release dated August 7, 2024 and the 2024 PEA Technical Report, both available on the Company's website at and under its issuer profile at Mineral Resource Estimates Until mineral deposits are actually mined and processed, copper and other mineral resources must be considered as estimates only. Mineral resource estimates that are not classified as mineral reserves do not have demonstrated economic viability. The estimation of mineral resources is inherently uncertain, involves subjective judgement about many relevant factors and may be materially affected by, among other things, environmental, permitting, legal, title, taxation, socio-political, marketing, or other known and unknown risks, uncertainties, contingencies and other factors described in the foregoing Cautionary Statements on Forward-Looking Statements. The quantity and grade of reported "inferred" mineral resource estimates are uncertain in nature and there has been insufficient exploration to define "inferred" mineral resource estimates as an "indicated" or "measured" mineral resource and it is uncertain if further exploration will result in upgrading "inferred" mineral resource estimates to an "indicated" or "measured" mineral resource category. Inferred mineral resource estimates may not form the basis of feasibility or pre-feasibility studies or economic studies except for preliminary economic assessments. The accuracy of any mineral resource estimate is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. It cannot be assumed that all or any part of a "inferred", "indicated" or "measured" mineral resource estimate will ever be upgraded to a higher category including a mineral reserve. The mineral resource estimates declared by the Company were estimated, categorized and reported using standards and definitions in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (the "CIM Standards") in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"), which governs the public disclosure of scientific and technical information concerning mineral projects. U.S. Readers The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" as disclosed by the Company are Canadian mining terms defined in the CIM Standards (collectively, the "CIM Definitions") in accordance with NI 43-101. NI 43-101 establishes standards for all public disclosure that a Canadian issuer makes of scientific and technical information concerning mineral projects. These Canadian standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to United States domestic and certain foreign reporting companies under Subpart 1300 of Regulation S-K ("S-K 1300"). Accordingly, information describing mineral resource estimates for the Cactus Project may not be comparable to similar information publicly reported in accordance with the applicable requirements of the SEC, and so there can be no assurance that any mineral resource estimate for the Cactus Project would be the same had the estimates been prepared per the SEC's reporting and disclosure requirements under applicable United States federal securities laws, and the rules and regulations thereunder, including but not limited to S-K 1300. Further, there is no assurance that any mineral resource or mineral reserve estimate that the Company may report under NI 43-101 would be the same had the Company prepared such estimates under S-K 1300. View source version on Contacts For more information Alison Dwoskin, Director, Investor Relations647-233-4348adwoskin@ George Ogilvie, President, CEO and Director416-723-0458gogilvie@ Sign in to access your portfolio
Business Wire
08-05-2025
- Business
- Business Wire
Arizona Sonoran Updates on PFS Workstreams at the Cactus Project
CASA GRANDE, Ariz. & TORONTO--(BUSINESS WIRE)-- Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) ('ASCU' or the 'Company'), an emerging U.S. copper developer in Arizona, today provides an update on key workstreams associated with advancing the 2024 Preliminary Economic Assessment ('2024 PEA' see the Aug 7, 2024 Press Release | Technical Report) to Pre-feasibility Study ('PFS'). The 2024 PEA envisages a low capital intensity open pit operation producing over 116,000 short tons or 232 million pounds of copper cathodes annually for the first 20 years of the mine life, via heap leach and solvent extraction electrowinning ('SX/EW') processing of the oxides and enriched material. Activities in 2025 are set to derisk the Cactus Project as we move through the technical studies and to an eventual construction decision post-definitive feasibility study next year. Key workstreams: - The PFS work and workstreams are on track for issuing in 2H2025 - Engineering Hydrology – Vibrating wireline piezometers have been installed in eight drillholes; ground water data is being collected to facilitate the ongoing hydrologic model Geotechnical drilling is complete and test work and final analysis is pending Base case mine planning well underway with varying opportunities to improve Project economics Earthworks and trial excavation of the Cactus West pit using a surface continuous miner - Metallurgy – completed columns to date indicate Parks/Salyer (including MainSpring) metallurgy positively correlates with 2024 PEA results. Additional primary sulphide column testing using conventional heap leaching is ongoing - Cactus West Pit Sampling – samples from the pit lake to be taken in June. Results to analyze the usage of pit lake solution within the PFS flow sheet - Drilling – 65% complete, with final results expected in July - Land use management – Pinal County has selected Cactus' stockpiled alluvium for use as road construction material. In March, a total of 11,000 cubic yards of alluvium was moved offsite for use in road improvement and construction within the local community George Ogilvie, ASCU President, CEO and Director commented, 'The Pre-Feasibility workstreams continue on pace to deliver a Mineral Resource Estimate update as well as PFS results and technical report in 2H2025. We tested a Wirtgen SM280 Surface Miner in the Cactus West Open pit earlier this year, both in the Alluvium and Gila Conglomerate which represents approximately 65% of all the material that will have to be moved over the 2024 PEA life of mine. The test results remain subject to ongoing analysis but we were impressed with the unit's productivity and final product size which could be helpful from a reclaim perspective.' He continued: 'We believe the Cactus Project remains one of only a few copper projects in the United States that can be built in relatively short order with a low capital intensity to produce copper cathode for direct sale to the domestic US market, tariff-free.' Engineering Engineering for the site is approximately 53% complete with M3 Engineering as lead consultant, and approximately 70% complete with respect to trade off studies, hydrology and geotechnical programs with the intent to manage costs, dust and noise, vibrations, throughput, flow sheet efficiency and a more consistent output and cash flow. Hydrology study work, managed by Clear Creek Associates, continues on schedule. Geotechnical study work by Call and Nicholas is ongoing, with preliminary results indicating continuity is consistent with assumptions in the 2024 PEA. The Cactus Project team and consultants are separately assessing various mine plans considering, among other things, impacts on project economics, opportunities to mitigate risks, optimizing the open pit approach from the 2024 PEA open pit project, and waste dump design to maximize current lands owned. In February, the first material movement at the Cactus Project began within the pit since closure in 1984. A trial was initiated within a southwestern pushback of the in-situ Cactus West pit, with engineering provided by the Cactus Project team. The trial focused on the potential usage of a surface miner in future operations at Cactus. Stripping of the alluvium managed by earthworks specialists Rango Mining, exposed the Gila Conglomerate after excavating 5-20 ft (6 m) benches, using conventional hydraulic excavator and articulated type trucks. In March, North American Mining and Wirtgen initiated a six-week test to trial a hard rock surface miner SM 280 within the Cactus West historic pit. The surface miner excavated two benches (2 x 20 ft (6 m)) into the Gila Conglomerate and demonstrated the potential of this method for future open pit application. Over 20 key performance metrics were specified for evaluation of the test trial, including instantaneous throughput and operating costs per ton, and the preliminary results outperformed all modelling and performance expectations. Drilling The 130,000 ft (39,600 m) infill drilling is on track for planned issuance of a Mineral Resource Estimate ('MRE') update and disclosure of PFS results in 2H2025. Drilling with three rigs at Parks/Salyer and one at Cactus West, is 67% complete, with 27% of assays reported; all drilling is expected to be complete in June with all results expected in this summer. While many assay results from our infill drilling program at Parks/Salyer remain pending, the geology and assay results received to date are consistent with expectations. We expect a high conversion rate of current inferred MRE to the indicated category, including the Parks/Salyer deposit's southern area. Cactus West Pit Water Sampling A copper analysis of the Cactus West pit lake is planned to begin in June. Crow Industries has been engaged to extract samples for testing at ACZ Laboratories Inc. and Skyline Assayers & Laboratories. Testing will determine the level of copper in solution, through ICP all metal analysis. In addition to the metal content within the pit lake solution, the Company will test for acidity. ASCU is conducting the work to determine the copper levels in the pit water and its pH levels. The Cactus Pit is a terminal groundwater sink, meaning its contents do not infiltrate groundwater. Metallurgy Overall, 19 columns were initiated, as per the 2024 PEA recommendations. Initial results indicate recovery performance is on par or exceeds 2024 PEA test work based on improved cycles over 180 days and extrapolated over 210 days to account for three, 180-day leach cycles. As reference, the 2024 PEA assumed 85% extraction from the enriched material and 92% from the oxide material on a copper soluble basis. Completed Columns Based on the 6 enriched columns from the Parks/Salyer deposit (including MainSpring), the predicted average percent of soluble copper extraction is 94.4% at 210 days of leaching. The column results are assessed based on a 'heap efficiency factor', which is the relationship of column test results to operational results. A world class operation would have a factor close to 100%. An operation that uses best practice would be expected to have a factor of about 95% which, if applied to the initial 6 enriched column results, reduces the predicted extractable soluble copper for 210 days of leaching from 94.4% to 89.7% (as compared to the 85% assumed in the 2024 PEA). There may be additional copper extracted from the heap beyond the three leach cycles if best practices are applied throughout the loading and operations processes. This additional copper extraction is not part of the Cactus Project copper extraction model. The six composite samples from Parks/Salyer (including MainSpring) were tested at two labs (Base Met and McClelland labs). The operating conditions for the tests were: crush to P80 of 19 mm (3/4'), column height of 6.2 m (20 ft), raffinate free acid of 5 gpl and irrigation rate of 6 L/hr/m2 (0.0024 gpm/ft2). Ongoing Columns An additional seven enriched composites and four primary composites for column tests also continue in progress at Base Met and McClelland labs. Metallurgical work remains ongoing. A flotation option for copper sulphide recovery remains under evaluation as a possible future optimization of the base case mine plan beyond year 20. Qualified Persons Statement Technical aspects of this news release relating to geology, drilling, and resource have been reviewed and verified by Mr. Allan Schappert – CPG #11758, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure for Mineral Projects. The metallurgy information in this news release has been reviewed and approved by Ms. Laurie Tahija, a Senior Metallurgist, with over 40 years of mineral processing experience. She is a Qualified Person within the meaning of NI 43-101 and is independent of the Company. Ms. Tahija is satisfied that the metallurgical testing procedures and associated assay methods used are standard industry operating procedures and methodologies. She has reviewed, approved and verified the metallurgical information disclosed in this news release, including preliminary, analytical and test data underlying the technical information. Links from the Press Release: Technical Report: Neither the TSX nor the regulating authority has approved or disproved the information contained in this press release. About Arizona Sonoran Copper Company ( | ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Project, on privately held land, contains a large-scale porphyry copper resource and a recent 2024 PEA proposes a generational open pit copper mine with robust economic returns. Cactus is a lower risk copper developer benefitting from a State-led permitting process, in place infrastructure, highways and rail lines at its doorstep and onsite permitted water access. The Company's objective is to develop Cactus and become a mid-tier copper producer with low operating costs, that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Cautionary Statements regarding Forward-Looking Statements and Other Matters Forward-Looking Statements All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute 'forward-looking statements' and 'forward-looking information' (collectively, 'forward-looking statements') within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'advance', 'assessing', 'assumptions', 'become', 'believe', 'continue', 'could', 'delivery', 'developer', 'emerging', 'envisages', 'estimate', 'exploration', 'eventual', 'expected', 'exposure', 'feasibility', 'forward', 'future', 'generational', 'growing', 'indicate', 'initial', 'initiate', 'intent', 'long-term', 'model', 'objective', 'ongoing', 'on pace', 'on track', 'opportunities', 'optimizing', 'option', 'pending', 'planning', 'potential', 'predict', 'preliminary', 'program', 'progress', 'proposes', 'recommendation', 'right', 'risk', 'study', 'subject to', 'testing', 'underway', 'upcoming', 'will', and 'would', or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, would, will (or not) be achieved, occur, provide, result or support in the future, or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include those relating to ongoing and future technical studies (including the PFS, any related trade off studies, hydrologic or geotechnical studies, column and other metallurgical testing (including predicted extraction rates), and any definitive feasibility study), continuing such study work, and the timing of completion and results or implications thereof (including any eventual construction decision); de-risking of the Cactus Project; the results of the 2024 PEA (including capital intensity, production, mine life (or life of mine), returns and other economics); the testing of the Cactus West pit lake (including the timing, results thereof and any inclusion in the PFS flow sheet); mineral or copper resources and any realization of value therefrom (including the current MRE and any upcoming update thereof); and the Company's objectives, future plans or prospects (including becoming a mid-tier copper producer with lower operating costs, robust returns and long-term sustainable and responsible operations). Although the Company believes that such statements are reasonable, there can be no assurance that those forward-looking statements will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this press release which may prove to be incorrect include those set forth or referenced in this press release, as well as those stated in the technical report for the Cactus Project filed on August 27, 2024 (the '2024 PEA Technical Report'), the Company's Annual Information Form dated March 27, 2025 (the 'AIF'), Management's Discussion and Analysis (together with the accompanying financial statements) for the year ended December 31, 2024 and the quarter already ended in 2025 (collectively, the '2024-25 Financial Disclosure') and the Company's other applicable public disclosure (collectively, 'Company Disclosure'), all available on the Company's website at and under its issuer profile at Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the 'Risk Factors' in the AIF, and the risks, uncertainties, contingencies and other factors identified in the 2024 PEA Technical Report and the 2024-25 Financial Disclosure. The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the AIF, the 2024-25 Financial Disclosure and other Company Disclosure. Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release (or as otherwise expressly specified) and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements referenced or contained in this press release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the AIF, the 2024 PEA Technical Report, the 2024-25 Financial Disclosure and other Company Disclosure. Preliminary Economic Assessments The Preliminary Economic Assessment (or 2024 PEA) referenced in this press release and summarized in the 2024 PEA Technical Report is only a conceptual study of the potential viability of the Cactus Project and the economic and technical viability of the Cactus Project has not been demonstrated. The 2024 PEA is preliminary in nature and provides only an initial, high-level review of the Cactus Project's potential and design options; there is no certainty that the 2024 PEA will be realized. For further detail on the Cactus Project and the 2024 PEA, including applicable technical notes and cautionary statements, please refer to the Company's press release dated August 7, 2024 and the 2024 PEA Technical Report, both available on the Company's website at and under its issuer profile at Mineral Resource Estimates Until mineral deposits are actually mined and processed, copper and other mineral resources must be considered as estimates only. Mineral resource estimates that are not classified as mineral reserves do not have demonstrated economic viability. The estimation of mineral resources is inherently uncertain, involves subjective judgement about many relevant factors and may be materially affected by, among other things, environmental, permitting, legal, title, taxation, socio-political, marketing, or other known and unknown risks, uncertainties, contingencies and other factors described in the foregoing Cautionary Statements on Forward-Looking Statements. The quantity and grade of reported 'inferred' mineral resource estimates are uncertain in nature and there has been insufficient exploration to define 'inferred' mineral resource estimates as an 'indicated' or 'measured' mineral resource and it is uncertain if further exploration will result in upgrading 'inferred' mineral resource estimates to an 'indicated' or 'measured' mineral resource category. Inferred mineral resource estimates may not form the basis of feasibility or pre-feasibility studies or economic studies except for preliminary economic assessments. The accuracy of any mineral resource estimate is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. It cannot be assumed that all or any part of a 'inferred', 'indicated' or 'measured' mineral resource estimate will ever be upgraded to a higher category including a mineral reserve. The mineral resource estimates declared by the Company were estimated, categorized and reported using standards and definitions in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (the 'CIM Standards') in accordance with National Instrument 43-101 of the Canadian Securities Administrators ('NI 43-101'), which governs the public disclosure of scientific and technical information concerning mineral projects. U.S. Readers The terms 'mineral resource', 'measured mineral resource', 'indicated mineral resource' and 'inferred mineral resource' as disclosed by the Company are Canadian mining terms defined in the CIM Standards (collectively, the 'CIM Definitions') in accordance with NI 43-101. NI 43-101 establishes standards for all public disclosure that a Canadian issuer makes of scientific and technical information concerning mineral projects. These Canadian standards differ from the requirements of the United States Securities and Exchange Commission (the 'SEC') applicable to United States domestic and certain foreign reporting companies under Subpart 1300 of Regulation S-K ('S-K 1300'). Accordingly, information describing mineral resource estimates for the Cactus Project may not be comparable to similar information publicly reported in accordance with the applicable requirements of the SEC, and so there can be no assurance that any mineral resource estimate for the Cactus Project would be the same had the estimates been prepared per the SEC's reporting and disclosure requirements under applicable United States federal securities laws, and the rules and regulations thereunder, including but not limited to S-K 1300. Further, there is no assurance that any mineral resource or mineral reserve estimate that the Company may report under NI 43-101 would be the same had the Company prepared such estimates under S-K 1300.
Miami Herald
05-03-2025
- Business
- Miami Herald
Swiss Resource Capital AG Welcomes Arizona Sonoran Copper Company Inc. as a New Client
HERISAU, SWITZERLAND / ACCESS Newswire / March 5, 2025 / Swiss Resource Capital AG is pleased to welcome Arizona Sonoran Copper Company Inc. (TSX:ASCU)(OTCQX:ASCUF)(ISIN:CA04058Q1054) as a new client. "Swiss Resource Capital AG is pleased to welcome Arizona Sonoran Copper Company Inc. as a new customer. With our many years of experience and an extensive network, we offer you a unique platform to effectively represent the company and reach your target group in a targeted manner. Our goal is to sustainably strengthen your brand in the financial world and significantly increase your reach," says Jochen Staiger, Managing Director of Swiss Resource Capital AG. Jochen Staiger continues: "We at Swiss Resource Capital AG offer access to over 85,000 followers and work together with leading stock market portals such as Smartbroker AG and as a premium partner. We maximize your reach with customized roadshows in European financial centers, exclusive commodity reports and specialized IP-TV channels such as Rohstoff-TV and Commodity-TV. Supplemented by the SRC Mining Special Situations Certificate, we offer our customers comprehensive opportunities to successfully present their projects and address investors in a targeted manner. In Swiss Resource Capital AG, Arizona Sonoran Copper Company Inc. has found a strong partner for communications and investor relations in the DACH region." George Ogilvie, Arizona Sonoran President and CEO commented: "Arizona Sonoran Copper Company is pleased to further expand its presence in the DACH region through its business relationship with Swiss Resource Capital AG. Their expertise in investor relations, organizing successful road shows and their impressive reach enhancement will be instrumental in contributing to our success. We look forward to beginning our strong partnership and celebrating future successes together." About Arizona Sonoran Copper Company ASCU's objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus and Parks/Salyer Projects that could generate robust returns for investors and provide a long term sustainable and responsible operation for the community and all stakeholders. The Company's principal asset is a 100% interest in the Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. Contiguous to the Cactus Project is the Company's 100%-owned Parks/Salyer deposit that could allow for a phased expansion of the Cactus Mine once it becomes a producing asset. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. About Swiss Resource Capital AG ("SRC") Swiss Resource Capital AG is a leading investor relations and communications firm based in Switzerland specializing in publicly traded resource companies from Canada, the United States and Australia. With extensive industry knowledge and a strong network, the company provides effective investor relations services. SRC supports both clients and investors with targeted communication strategies and modern digital channels. The company specializes in organizing and executing exclusive roadshows throughout Europe, enabling companies to engage directly with investors and build trust in their projects. SRC ensures that investors are informed about the latest developments and helps resource companies maximize their visibility and reach. Overall, Swiss Resource Capital AG makes a decisive contribution to the capital market strategy of resource companies and helps them to reach their full potential. Swiss Resource Capital AGJochen Staiger & Marc Ollingerinfo@ Disclaimer SRC AG: SOURCE: Swiss Resource Capital AG
Yahoo
13-02-2025
- Business
- Yahoo
Arizona Sonoran Announces Royal Gold's Purchase of Existing NSR on the Cactus Project
CASA GRANDE, Ariz. & TORONTO, February 13, 2025--(BUSINESS WIRE)--Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) ("ASCU" or the "Company"), an emerging U.S. copper developer, is pleased to report that RG Royalties LLC, a subsidiary of Royal Gold Inc. (RLGD:NASDAQ) has purchased an existing 2.5% net smelter royalty ("NSR") on a portion of the Cactus Project for cash consideration of US$55 million from Tembo Capital. ASCU has the right to buy back 0.5% of Royal Gold's aggregate 2.5% NSR for US$7 million, by July 10, 2025. George Ogilvie, ASCU President, CEO and Director commented, "We are pleased to see the royalty move to a top calibre royalty and streaming company, with a history of participating in project financing packages and a positive prior experience with our management team. We believe that Royal Gold, as the acquiror, is yet another strong endorsement and recognition of the Cactus Project and its go-forward plan, by a sophisticated mining financier. Our team has dedicated itself to growing the asset to a significant size, securing water, permits, community support and, as reflected in our 2024 PEA, demonstrating a capital efficient project with robust forecast economics. We will continue to de-risk and advance Cactus as we move forward with various technical studies, through pre‑feasibility to definitive feasibility study, to an eventual final investment decision." In 2020, a Tembo Capital fund initially purchased the 2.5% NSR, as part of an aggregate 3.18% NSR financing with Resource Capital Funds whose portion is now owned by Elemental Altus Royalties Corp. ("Elemental Altus"). In addition to the 0.5% buy back option on Royal Gold's NSR, ASCU also has the option to buy back 0.14% of Elemental Altus' aggregate 0.68% NSR for US$1.9 million by July 10, 2025, which together would reduce the overall combined NSR to 2.54%. The Company is well funded and is currently evaluating its options with respect to both NSR buy back options. Neither the TSX nor the regulating authority has approved or disproved the information contained in this press release. About Arizona Sonoran Copper Company ( | ASCU is a copper exploration and development company with a 100% interest in the brownfield Cactus Project. The Project, on privately held land, contains a large-scale porphyry copper resource and a recent 2024 PEA proposes a generational open pit copper mine with robust economic returns. Cactus is a lower risk copper developer benefitting from a State-led permitting process, in place infrastructure, highways and rail lines at its doorstep and onsite permitted water access. The Company's objective is to develop Cactus and become a mid-tier copper producer with low operating costs, that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise. Cautionary Statements regarding Forward-Looking Statements and Other Matters Forward-Looking Statements All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "advance", "assumptions", "become", "believe", "continue", "could", "delivery", "developer", "emerging", "estimate", "exploration", "eventual", "expectation", "exposure", "feasibility", "forward", "future", "generational", "growing", "long-term", "objective", "optimizing", "option", "pending", "plan", "potential", "program", "progress", "right", "risk", "study", "subject to", "will", and "would", or variations of such words, and similar such words, expressions or statements that certain actions, events or results can, could, may, should, would, will (or not) be achieved, occur, provide, result or support in the future, or which, by their nature, refer to future events. In some cases, forward-looking information may be stated in the present tense, such as in respect of current matters that may be continuing, or that may have a future impact or effect. Forward-looking statements include those relating to ongoing and future technical studies (including pre-feasibility and definitive feasibility studies), moving forward with such study work and the results or implications thereof (including any eventual investment decision); de-risking of the Cactus Project; the results of the 2024 PEA (including capital efficiency and economics); buy back of any portion of NSRs on the Cactus Project held by Royal Gold or Elemental Altus (including any exercise of the option, the Company being well funded to do so and reduction in either such NSR individually and/or in the aggregate); mineral or copper resources and any realization of value therefrom; any upside in value and/or delivered back to shareholders, sustainability and risk; the Company's objectives (including the Cactus Project becoming a significant producer of copper cathodes in Arizona and the U.S.); and the future plans or prospects of the Company (including sustainability of the Cactus Project and becoming a mid-tier copper producer). Although the Company believes that such statements are reasonable, there can be no assurance that those forward-looking statements will prove to be correct, and any forward-looking statements by the Company are not guarantees of future actions, results or performance. Forward-looking statements are based on assumptions, estimates, expectations and opinions, which are considered reasonable and represent best judgment based on available facts, as of the date such statements are made. If such assumptions, estimates, expectations and opinions prove to be incorrect, actual and future results may be materially different than expressed or implied in the forward-looking statements. The assumptions, estimates, expectations and opinions referenced, contained or incorporated by reference in this press release which may prove to be incorrect include those set forth or referenced in this press release, as well as those stated in the technical report for the Cactus Project filed on August 27, 2024 (the "2024 PEA Technical Report"), the Company's Annual Information Form dated April 1, 2024 (the "AIF"), Management's Discussion and Analysis (together with the accompanying financial statements) for the year ended December 31, 2023 and the quarters already ended in 2024 (collectively, the "2023-24 Financial Disclosure") and the Company's other applicable public disclosure (collectively, "Company Disclosure"), all available on the Company's website at and under its issuer profile at Forward-looking statements are inherently subject to known and unknown risks, uncertainties, contingencies and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks, uncertainties, contingencies and other factors include, among others, the "Risk Factors" in the AIF, and the risks, uncertainties, contingencies and other factors identified in the 2024 PEA Technical Report and the 2023-24 Financial Disclosure. The foregoing list of risks, uncertainties, contingencies and other factors is not exhaustive; readers should consult the more complete discussion of the Company's business, financial condition and prospects that is provided in the AIF, the 2023-24 Financial Disclosure and other Company Disclosure. Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release (or as otherwise expressly specified) and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements referenced or contained in this press release are expressly qualified by these Cautionary Statements as well as the Cautionary Statements in the AIF, the 2024 PEA Technical Report, the 2023-24 Financial Disclosure and other Company Disclosure. Preliminary Economic Assessments The Preliminary Economic Assessment (or 2024 PEA) referenced in this press release and summarized in the 2024 PEA Technical Report is only a conceptual study of the potential viability of the Cactus Project and the economic and technical viability of the Cactus Project has not been demonstrated. The 2024 PEA is preliminary in nature and provides only an initial, high-level review of the Cactus Project's potential and design options; there is no certainty that the 2024 PEA will be realized. For further detail on the Cactus Project and the 2024 PEA, including applicable technical notes and cautionary statements, please refer to the Company's press release dated August 7, 2024 and the 2024 PEA Technical Report, both available on the Company's website at and under its issuer profile at Mineral Resource Estimates Until mineral deposits are actually mined and processed, copper and other mineral resources must be considered as estimates only. Mineral resource estimates that are not classified as mineral reserves do not have demonstrated economic viability. The estimation of mineral resources is inherently uncertain, involves subjective judgement about many relevant factors and may be materially affected by, among other things, environmental, permitting, legal, title, taxation, socio-political, marketing, or other known and unknown risks, uncertainties, contingencies and other factors described in the foregoing Cautionary Statements on Forward-Looking Statements. The quantity and grade of reported "inferred" mineral resource estimates are uncertain in nature and there has been insufficient exploration to define "inferred" mineral resource estimates as an "indicated" or "measured" mineral resource and it is uncertain if further exploration will result in upgrading "inferred" mineral resource estimates to an "indicated" or "measured" mineral resource category. Inferred mineral resource estimates may not form the basis of feasibility or pre-feasibility studies or economic studies except for preliminary economic assessments. The accuracy of any mineral resource estimate is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. It cannot be assumed that all or any part of a "inferred", "indicated" or "measured" mineral resource estimate will ever be upgraded to a higher category including a mineral reserve. The mineral resource estimates declared by the Company were estimated, categorized and reported using standards and definitions in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (the "CIM Standards") in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"), which governs the public disclosure of scientific and technical information concerning mineral projects. U.S. Readers The terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" as disclosed by the Company are Canadian mining terms defined in the CIM Standards (collectively, the "CIM Definitions") in accordance with NI 43-101. NI 43-101 establishes standards for all public disclosure that a Canadian issuer makes of scientific and technical information concerning mineral projects. These Canadian standards differ from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to United States domestic and certain foreign reporting companies under Subpart 1300 of Regulation S-K ("S-K 1300"). Accordingly, information describing mineral resource estimates for the Cactus Project may not be comparable to similar information publicly reported in accordance with the applicable requirements of the SEC, and so there can be no assurance that any mineral resource estimate for the Cactus Project would be the same had the estimates been prepared per the SEC's reporting and disclosure requirements under applicable United States federal securities laws, and the rules and regulations thereunder, including but not limited to S-K 1300. Further, there is no assurance that any mineral resource or mineral reserve estimate that the Company may report under NI 43-101 would be the same had the Company prepared such estimates under S-K 1300. View source version on Contacts Alison Dwoskin, Director, Investor Relations647-233-4348adwoskin@ George Ogilvie, President, CEO and Director416-723-0458gogilvie@ Sign in to access your portfolio
