Sonoran Desert Copper Corporation Amended Cuatro Hermanos Transaction
Rhea-AI Summary
Sonoran Desert Copper (TSXV: SDCU) has amended its option to purchase the Cuatro Hermanos Porphyry Copper Project in Sonora, Mexico. The amendment reduces payments and expenditures for 2025-2027, and terminates the San Lorenzo concession to reduce mine taxes. Key changes include:
- Total cash payments reduced from $5,862,500 to $5,662,500 USD
- Work expenditures for 2024-2027 reduced to minimum required by Mexican regulations
- Estimated savings of $238,566 in 2024 and $603,640 in 2025
The 4H Project contains a large porphyry copper-molybdenum system. Recent sampling in the South Conglomerate Zone yielded up to 16.25% copper, with 20 samples averaging 1.736% copper. The company plans to conduct percussion drilling in this high-grade area to establish an inferred resource at minimal cost.
Positive
- Amendment reduces required cash payments by $200,000 USD
- Work expenditures for 2024-2027 reduced to minimum required, saving $238,566 in 2024 and $603,640 in 2025
- Recent sampling in South Conglomerate Zone yielded high-grade copper results, up to 16.25%
- 20 samples from South Conglomerate Zone averaged 1.736% copper
- Plans for low-cost percussion drilling to establish inferred resource in high-grade area
Negative
- Termination of San Lorenzo concession from the 4H Option
- Historical resource estimate not verified by a Qualified Person, may not be reliable
News Market Reaction
On the day this news was published, PMDRF declined 5.12%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - August 6, 2024) - Sonoran Desert Copper Corporation (TSXV: SDCU) ("SDCU'' or the "Company") is pleased to announce that the Company has signed an amendment (the "Amendment") to the option to purchase a 100-per-cent interest in the Cuatro Hermanos Porphyry Copper Project (the "4H Project"), located in Sonora, Mexico, 185 kilometres southeast of Hermosillo.
Under the Amendment, dated July 29th, 2024
- Original terms of the Option are detailed in the News Release dated February 9, 2023
- Payments reduced for years 2025 - 2027
- Expenditures reduced for years 2024 - 2027 to the amount required under Mexican regulations
- Mine Taxes reduced through the termination of the San Lorenzo concession from the 4H Option
Updated Transaction Details
To exercise the Purchase Option, SDCU will now make cash payments to Minerales Y Yacimientos Mexicanos Sacramento, S.A. DE C.V. and complete work expenditures and make Mine Tax payments for a
| Date | Old Payment | New Payment | Old Expenditures | New Expenditures |
| December 31 2023 | $ 50,000 | Paid | $ 100,000 | Completed |
| December 31 2024 | $ 150,000 | $ 150,000 | $ 250,000 | $ 66,019 |
| December 31 2025 | $ 200,000 | $ 150,000 | $ 500,000 | Minimum Required |
| December 31 2026 | $ 200,000 | $ 150,000 | $ 1,000,000 | Minimum Required |
| December 31 2027 | $ 200,000 | $ 150,000 | $ 1,000,000 | Minimum Required |
| December 31 2028 | $ 5,062,500 | $ 5,062,500 | $ - | Minimum Required |
| Totals | $ 5,862,500 | $ 5,662,500 | $ 2,850,000 |
| Date | Mine Tax | Status |
| December 31 2023 | $ 183,771 | Paid |
| December 31 2024 | $ 129,186 | Paid |
| December 31 2025 | $ 70,000 | Estimate |
As a result of the Amendments, SDCU will reduce its required USD capital expenditures in 2024 and 2025 on the 4H Project, as per the following:
| Savings in 2024 | |
| Savings in 2025 (projected) |
4H Project Overview
The 4H Project is located in Sonora, Mexico, and comprises 9 concessions and contains a large porphyry copper-molybdenum system with surface measurements of at least four kilometres east-west by two kilometres north-south. The Company released a recent NI 43-101 report on the 4H Project in October 2023 which comprised a review of historical work. Historical resources were last estimated in 2008:
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5386/219001_e999a830b449696f_001full.jpg
Primary sulphide mineralisation is chalcopyrite and molybdenite with secondary oxide chalcocite. **
Under the recent sampling program, the results of which were announced in a News Release dated January 11, 2024, grab samples were collected with a focus on the areas of the 4H Project that have received minimal historical attention. The results were highlighted with assays returning up to
South Conglomerate Zone Results - 20 samples collected
| SOUTH CONGLOMERATE | Cu (ppm) | Mo (ppm) | Ag (ppm) |
| Min | 102 | 1.68 | 0.21 |
| Max | 162,500 | 49.8 | 1.54 |
| Average | 17,363 | 22.1 | 0.9 |
| Std Deviation | 35,184 | 13.9 | 0.3 |
South Conglomerate Detailed Copper Assays
| Sample # | Cu (ppm) | Cu % |
| 1843843 | 10,950 | |
| 1843844 | 12,800 | |
| 1843845 | 102 | |
| 1843846 | 3,800 | |
| 1843848 | 4,640 | |
| 1843849 | 1,940 | |
| 1843850 | 2,090 | |
| 1843851 | 2,530 | |
| 1843852 | 11,550 | |
| 1843853 | 7,960 | |
| 4H015a | 15,700 | |
| 4H015b | 21,700 | |
| 4H015c | 10,900 | |
| 4H016 | 17,550 | |
| 4H017b | 3,160 | |
| 4H033 | 10,250 | |
| 4H034 | 35,900 | |
| 4H036 | 4,730 | |
| 4H037 | 162,500 | |
| 4H038 | 6,500 | |
| Average |
The South Conglomerate area is higher-grade, and the immediate development plan is to percussion drill this area to an inferred resource at minimal cost. This drilling along with permitting, metallurgy and acid-sourcing can be completed in the next 24 months. The soluble copper content in the North and South Conglomerates, in addition to the supergene zones contained in the 4H porphyry have the combined potential for a significant Heap Leach & SX-EW operation.
Cautionary Note
* The reader is cautioned that grab samples are selective by nature and may not represent the true grade or style of mineralization across the property.
** The resource estimate is historical in nature and has not been verified by a Qualified Person as defined by NI 43-101 and should not be relied upon as a current mineral resource estimate. The Company is not treating these historical estimates as current mineral resources or reserves. While the historical estimates are relevant for providing context on the potential of the property, further work, including verification by a Qualified Person, will be required to upgrade or confirm this estimate.
Qualified Person Statement
The technical contents of this release were approved by Case Lewis, P.Geo., a Qualified Person as defined by National Instrument 43-101.
References
(1) 09 August 2008. Technical Report, Cuatro Hermanos Porphyry Copper-Molybdenum Project Sonora, Mexico. Prepared for Virgin Metals Inc. (by Chlumsky, Armbrust and Meyer, LLC. Richard Nielsen, PhD. & Robert Sandefur, P.E.
ABOUT SONORAN DESERT COPPER CORPORATION
Sonoran Desert Copper Corporation is focused on securing, developing and monetizing materials assets and technologies to build shareholder value.
On behalf of the Board of Directors of
SONORAN DESERT COPPER CORPORATION
"Brian Leeners"
Brian Leeners, CEO & Director
brianleeners@gmail.com / +1 604-862-4184 (WhatsApp)
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219001
FAQ
What changes were made to the Cuatro Hermanos Project option agreement by Sonoran Desert Copper ?
What were the results of recent sampling at the Cuatro Hermanos Project's South Conglomerate Zone?
What are Sonoran Desert Copper 's (TSXV: SDCU) plans for the South Conglomerate Zone of the Cuatro Hermanos Project?
How much does Sonoran Desert Copper expect to save in 2024 and 2025 due to the amended agreement for the Cuatro Hermanos Project?
