ARIZONA SONORAN COPPER CO Stock Price, News & Analysis

Arizona Sonoran Copper Company Inc. (OTCQX: ASCUF; TSX: ASCU) is a copper exploration and development company focused on advancing the Cactus Project, a brownfield copper project in Arizona. The company describes itself as an emerging U.S.-based copper developer and near-term producer, with the objective of developing Cactus and related deposits into a long-life copper cathode operation.

The Cactus Project is situated on privately held land in an infrastructure-rich area of Arizona and contains a large-scale porphyry copper resource. According to company disclosures in multiple press releases, the project benefits from a state-led permitting process, in-place infrastructure, highways and rail lines nearby, and onsite permitted water access. The company holds a 100% interest in the Cactus Project and also owns the contiguous Parks/Salyer deposit, which is described as enabling potential phased expansion once Cactus becomes a producing asset.

Core assets and project concept

The company’s principal asset is the Cactus Project (the former ASARCO Sacaton mine), which is being advanced as a conventional open-pit, heap leach and solvent extraction/electrowinning (SX/EW) copper cathode operation. A series of technical studies, including a Preliminary Economic Assessment (PEA) and a subsequent NI 43-101 Pre-Feasibility Study (PFS), outline a mine plan based on oxide and enriched material from the Cactus and Parks/Salyer open pits. The PFS describes a long-life operation producing LME Grade A copper cathode onsite through open-pit mining, heap leaching and SX/EW processing.

The company reports that the Cactus Project is located on private land and that the consolidated land package has been expanded over time. In a land acquisition update, Arizona Sonoran stated that the Cactus Project land package grew to approximately 7,843 acres, including surface and mineral rights acquired to support the anticipated development and operations plan, such as SX/EW plant infrastructure, leach pads and waste rock stockpiles. The company notes that this land position is intended to meet supporting land requirements for the project plan and provide operational flexibility for potential future development of primary sulphide mineralization and additional exploration targets.

Mineral resource base

Arizona Sonoran has released an updated Mineral Resource Estimate (MRE) for the Cactus Project, covering the Parks/Salyer, Cactus West, Cactus East and stockpile deposits. The company reports that the updated and expanded MRE incorporates extensive infill and step-out drilling and is based on a copper price assumption used to determine cut-off grades. The MRE indicates:

• Measured and Indicated resources totaling approximately 1,143 million short tons at 0.48% total copper (CuT), representing about 11.0 billion pounds of contained copper.
• Inferred resources of approximately 233 million short tons at 0.37% CuT, representing about 1.7 billion pounds of contained copper.
• The company states that 75% of the Measured and Indicated copper pounds are leachable, with the remaining portion categorized as primary sulphide material.

Within this overall resource, the company highlights the significance of the Parks/Salyer deposit. Arizona Sonoran reports that Parks/Salyer accounts for a substantial share of the project’s Measured and Indicated resources, with a large proportion of leachable copper. The company notes that infill drilling converted a significant portion of Inferred material to the Measured & Indicated category and that 90% of Parks/Salyer copper pounds in the Measured & Indicated classification are leachable. The Cactus West and Cactus East deposits have also seen expanded resources through infill and step-out drilling, including increased primary sulphide mineralization at depth and around the existing pit shell.

Pre-Feasibility Study and project concept

The NI 43-101 PFS for the Cactus Project, filed on SEDAR+ and summarized in company press releases, outlines a conventional open-pit copper operation utilizing heap leach and SX/EW processing to produce copper cathode onsite. Key features described by the company include:

• Open-pit mining at the Parks/Salyer and Cactus West deposits, with ore feed to a heap leach pad.
• Two-stage crushing and screening ahead of heap leaching.
• A solvent extraction and electrowinning plant designed initially for 70,000 tons per year of copper cathode capacity, with a planned expansion to 140,000 tons per year between years three and four of operations.
• Heap leach processing of oxide and enriched material, with leach cycles and recovery assumptions summarized in the PFS.

The PFS mine plan, as described in company disclosures, emphasizes a streamlined approach that leaches oxides and enriched ore from the Parks/Salyer and Cactus West open pits. Primary sulphides and the Cactus East underground mineralization are identified as future expansion opportunities outside the initial mineable reserve base. The company states that the PFS is based on conventional truck-and-shovel mining, with a defined strip ratio, crusher throughput, and recovery parameters, and that it models a multi-decade operational life for the project.

Exploration and drilling programs

Arizona Sonoran has undertaken extensive drilling programs to support both resource growth and technical de-risking. The company reports that:

• A PFS-related drilling campaign totaling approximately 160,000 feet (49,000 meters) focused on infill drilling at Parks/Salyer and geotechnical, hydrogeological and metallurgical drilling across the Cactus Project.
• A step-out drilling program of about 72,000 feet (22,000 meters) at Cactus West extended mineralized zones to the north, south and southwest and at depth below the existing pit shell.
• These programs were followed by a Definitive Feasibility Study (DFS) infill drilling program targeting conversion of Indicated resources to Measured classification at Parks/Salyer, with drill spacing tightened to approximately 125 feet in areas planned for early mining phases.

Drilling results disclosed by the company include long intervals of continuous copper mineralization at Parks/Salyer, Cactus West and Cactus East. The company notes that infill drilling has confirmed continuity of near-surface and low-grade mineralization at Parks/Salyer South and that step-out drilling at Cactus West has demonstrated potential for additional resource growth, particularly in primary sulphide zones.

Permitting and land position

Arizona Sonoran emphasizes that the Cactus Project benefits from a state-led permitting process and is at an advanced permitting stage. The company reports that it has obtained key permits in prior years, including an Aquifer Protection Permit (APP), an Industrial Air Permit and a Mined Land Reclamation Permit (MLRP), and that these permits have been or are being amended to reflect the larger and modified project scope outlined in the PFS.

In a permitting update, the company announced receipt of a Dust Permit from the Pinal County Air Quality Division, based on the PFS mine plan. It also notes that amendments to the APP, Industrial Air Permit and MLRP are being pursued to align with the updated production profile and inclusion of the Parks/Salyer open pit. The company’s land acquisition program, including the purchase of over 2,100 acres of adjacent private land, is described as providing the additional acreage necessary for SX/EW facilities, leach pads, waste rock storage and potential future development of primary sulphide mineralization.

Corporate strategy and objectives

Across multiple press releases, Arizona Sonoran states that its objective is to develop the Cactus Project and become a mid-tier copper producer with low operating costs. The company positions the Cactus and Parks/Salyer deposits as the foundation for a copper cathode operation that could generate significant returns for investors and support a long-term, sustainable and responsible operation for local communities and stakeholders.

The company describes itself as a lower risk copper developer due to factors such as its brownfield setting, private land position, existing infrastructure, and state-level permitting framework. It also notes that its executive management team and board have a track record of project delivery in North America and experience in global capital markets. Financing updates released by the company reference equity financings, strategic investments and project-level debt financing workstreams intended to support ongoing technical studies, permitting amendments, early development activities and eventual construction.

Project development workstreams

Arizona Sonoran outlines several key workstreams that underpin its development plan for the Cactus Project:

• Technical studies: Completion of the NI 43-101 PFS and advancement of a Definitive Feasibility Study (DFS), including detailed engineering and further refinement of mine planning, processing and infrastructure design.
• Permitting: Amendments to existing state permits, including air, water and reclamation permits, to reflect the expanded and simplified open-pit mine plan incorporating Parks/Salyer.
• Project financing: Engagement with banks, export credit agencies and other project finance institutions to structure a project debt package, with advisory support from Hannam & Partners.
• Early development activities: Work programs described by the company include long-lead procurement, power infrastructure engineering with Arizona Public Service, and organizational development focused on safety, human resources and administrative support.

According to its disclosures, the company views these workstreams as essential steps toward demonstrating operational readiness and supporting a potential final investment decision on the Cactus Project.

ESG and community engagement

Arizona Sonoran reports that it is updating and expanding its environmental, social and governance (ESG) program in line with the PFS mine plan. The company references planned or ongoing work such as life cycle analysis, economic impact reporting for the City of Casa Grande, and polling within Pinal County regarding community support for the restart of the Cactus Project. It also notes plans to develop an internal environmental and social management system to guide the project through advanced study, permitting and potential construction phases.