CASA GRANDE, Ariz. & TORONTO, August 27, 2024–(BUSINESS WIRE)–Arizona Sonoran Copper Company Inc. (TSX:ASCU | OTCQX:ASCUF) (“ASCU” or the “Company”) today reports that, further to the press release dated AUG 7, 2024, announcing the Cactus Project NI 43-101 Preliminary Economic Assessment (“PEA”), the technical report in respect of the PEA is now filed on SEDAR+ (www.sedarplus.ca) under the Company’s issuer profile and is also available on the company website (www.arizonasonoran.com). The Cactus PEA envisages an average 86k short ton (172 million pound) per annum open pit copper heap leaching operation over a 31-year mine life (“LoM”). In total, 5.3 billion lbs or 2.7 million short tons of LME Grade A Copper Cathodes is detailed for production directly onsite via solvent extraction and electrowinning (“SXEW”) hydrometallurgical processing. The PEA supersedes the previously released Pre-Feasibility Study (“PFS”) in all respects. All dollar amounts referenced herein in US dollars, and all references to tons are imperial or short tons, unless otherwise noted; 1 short ton equals approximately 0.91 metric tonnes.Highlights from the PEA:Key Performance Indicators at $3.90/lb Copper$2,032 million Net Present Value (“NPV”) (8% discount, after-tax)24% Internal rate of return (“IRR”, after-tax)4.9 years Payback Period$668 million development capital including contingencyLife of Mine (“LoM”) Gross Revenue of $20.8 billionLoM Free Cash Flow (“FCF”) of $7,295 million (unlevered)Cash costs (C1) of $1.82 and All in Sustaining Costs (“AISC”) of $2.00 per pound of copperFinancial and operational executability now through transition to Open Pit operation232 million pounds (“lbs”) (116,052 short tons (“st”)) average annual copper cathode production over the first 20 years of operation and a total of 5,339 million lbs (2,669,342 st) of copper cathode produced over the 31-year operating mine lifeCactus Project is well positioned to add value in a variety of copper price environmentsThe PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the project described in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.Story continuesTABLES 1 and 2 below summarize the key metrics within the PEA and the sensitivities to the copper price, as it relates to revenue, NPV and IRR.TABLE 1: SUMMARY OF KEY METRICSValuation Metrics (Unlevered)Unit2024 PEA$3.90/lb CuNet Present Value @ 8% (pre-tax)$ millions2,769Net Present Value @ 8% (after-tax)$ millions2,032Internal Rate of Return (after-tax)%24.0Payback Period (after-tax)# years4.9Project Metrics (Imperial)Unit2024 PEA$3.90/lb CuConstruction Period – SXEW plant# years1.5 – 2Life of Mine# years31Strip RatioWaste : Feed2.3 : 1LoM Mineralized Material Minedktons889,004LoM Copper Grade% CuT0.46LoM Avg Annual Contained Copper Production000 tonsmillions lbs86172LoM Annual Crusher Throughputmillions tons29Annual Copper Production(years 1-20)000 tonsmillions lbs116232Recovery (years 1-20)%Cu TSol83LoM Recoveries (LOM)% Cu TSol73LoM Oxide% Cu TSol92LoM Enriched% Cu TSol85LoM Primary (conventional leaching)% CuT25LoM Recovered Copper CathodesK pounds5,338,683Initial Capital (including contingency)$ millions668Sustaining Capital$ millions1,169Cash Cost (C1)*$/lb Cu1.82All in Sustaining Cost (AISC)*$/lb Cu2.00LoM Revenues$ millions20,821LoM EBITDA$ millions11,292LoM FCF (unleve …
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