Arizona Sonoran Copper Company Inc. (“ASCU” or the
“Company”), an emerging U.S.-based copper developer and near-term
producer, announces its Work Plan for 2022. The Work Plan walks
through drilling (up to 3 drill rigs focused on exploration and
infill), technical studies, permitting activities in respect of the
Cactus Project, wider exploration program for our properties and
ESG initiatives. Ultimately, the 2022 Work Plan will support the
advancement of the Cactus Project (the “Project”) to a construction
decision in the medium term.
Highlights of the 2022 Work Plan:
- US$20 million budgeted to advance the Cactus Project in
2022
- The Pre-Feasibility Study (“PFS”) has begun with completion
expected in summer 2022; Feasibility Study (“BFS”) is expected by
1Q23
- Up to 38,252 m (125,500 ft) of drilling allocated for
exploration, expansion and infill drilling
- Permitting continues at the State and County level (no federal
requirements)
- Environmental Life Cycle Assessment has commenced to inform
carbon reduction strategies
George Ogilvie, ASCU President and CEO commented, “The
Project is a world class redevelopment project in a Tier 1 location
with ready infrastructure available. To date, we have made
significant advances in de-risking the project, thus setting the
stage to deliver value for our shareholders. This coming year will
be a pivotal year for ASCU as we look to come to a construction
decision in respect of the Cactus Project and explore the district
scale potential of our 100%-owned properties all on private
land.”
Drilling
ASCU has largely completed a 16,154 m (53,000 ft) infill
drilling program to support a PFS, due in the summer of 2022. The
drilling programs were planned to convert inferred material to
indicated at both Cactus West (12,192 m | 40,000ft) and Cactus East
(3,962 m | 13,000 ft). Assay results are pending. Combined, these
drilling results will inform the updated Cactus mineral resource
model, as well as provide further information on metallurgical
recoveries and geotechnical conditions.
The Company has now begun further infill drilling at the project
to target planned measured drill spacing consisting of 10,912 m
(35,800 ft) at Cactus West and 13,411 m (44,000 ft) at Cactus East
with up to three diamond drill rigs currently operating onsite.
These results will be included in the year-end BFS.
Additionally, and with a view towards expansion at Cactus West,
the Company is budgeting an approximate 3,500 m (11,500 ft) of
exploration drilling targeting opportunities proximal to the
current mine plan. With success, up to an additional 2,500 m (8,200
ft) of drilling is planned at Cactus West and 1,000 m (3,300 ft) at
Cactus East.
Following the 2021 success of 2 exploration holes drilled at
Parks/Salyer, the Company has budgeted a 12-hole drill program
(6,700 m / 22,000 ft) with the intent to issue a maiden Mineral
Resource estimate by year end. Parks/Salyer is located less than 2
km along trend southwest of Cactus. A total of 2 holes are now
complete within this program and assays are pending. Subject to
successful results from this drill program, further drilling may be
accelerated to prove up the district potential of the contiguous
property.
Technical Studies
ASCU has officially begun working on the PFS on the Cactus Mine
Project with the final study expected to be complete by the summer
of 2022, followed by a BFS. In addition to the advancing technical
studies at Cactus, the Company expects to issue a maiden Mineral
Resource Estimate at the Parks/Salyer Project, also at
year-end.
The referenced PFS will update the following inputs based on
updated drilling data, rezoned land and potentially increased
copper resources:
- Mineral resource estimate update
- Updated metallurgy
- Geotechnical and hydrology
- Site general arrangement
- Stockpile design
- Open Pit design
- Underground design
- Process
- Mining schedule
- Trade-off/PFS schedule
Permitting
The Aquifer Protection Permit (APP) is currently in the process
of being amended to include the Cactus West and East deposits, in
addition to the Stockpile Project where the Company already has an
Aquifer Protection Permit. The permit is expected in 1H22.
Currently, the water usage and access are both approved and
available from an independent industrial-use only aquifer for a
50-year operation. Additional permits including the Industrial
Permit and Mined Land Reclamation Permit, are expected to be
received prior to a construction decision by the Company.
Project Financing
Following successful results from the PFS program, the Company
will look to work with a number of financing counterparties who
have already demonstrated interest and others to work towards
obtaining a financing package for the Cactus Project.
ESG, Sustainability and GHG Emissions
After developing the ASCU ESG framework in 2021, the focus in
2022 is to expand on the strategic pillars and determine the best
path towards establishing a net-zero carbon emissions operation at
the Cactus Project. In 1Q22, Minviro and ASCU are carrying out life
cycle assessments throughout the development stages, thus
proactively identifying the Scope 1, 2 and 3 emissions. The intent
remains to reduce CO2 emissions pre-construction.
Improving Bench Strength
The Company recently confirmed the appointment of Nick
Nikolakakis as VP of Finance and Chief Financial Officer. Nick
brings to ASCU significant experience in project financing and
capital markets and will be instrumental in our next phase of
development. The Company will look to add further bench strength in
technical and other areas as we transition from development through
to construction and finally production.
In addition, Sarah Strunk was added as a new Independent
Director to the Board. The breadth of Sarah’s legal experience will
prove instrumental as the Company develops the Cactus Project.
Sarah has worked extensively in Arizona and runs a successful law
practice in the State. Additionally, she has many years of Board
experience including Brio Gold where she was the Chairwoman prior
to its acquisition by Leagold and subsequently, Equinox.
Neither the TSX nor the
regulating authority has approved or disproved the information
contained in this press release.
About Arizona Sonoran Copper Company (www.arizonasonoran.com |
www.cactusmine.com)
ASCU‘s objective is to become a mid-tier copper producer in the
near term with low operating costs, develop the Cactus Project 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.
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.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements contained in this new release includes,
but are not limited to, the intentions of ASCU to complete the
Offering, the planned use of the proceeds of the Offering and
future development and financial prospects of the Cactus Project.
Forward-looking statements involve known and unknown risks,
uncertainties 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. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals.
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 news
release and ASCU disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220118005331/en/
Alison Dwoskin, Director, Investor Relations 647-233-4348
adwoskin@arizonasonoran.com
George Ogilvie, President, CEO and Director 416-723-0458
gogilvie@arizonasonoran.com
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