Arizona Sonoran Copper Company Inc. (TSX:ASCU |
OTCQX:ASCUF) (“ASCU” or the “Company”) today announces its 2023
work plan for the Cactus Property, inclusive of the Cactus and
Parks/Salyer (“P/S”) Projects. All work streams this year will feed
into the planned Prefeasibility Study (“PFS”) due in 4Q23/1Q24, and
includes drilling, metallurgy, detailed engineering, permitting and
technical studies, along with continued efforts to build the onsite
operations and technical team.
2023 Work Plan Highlights
- The PFS is expected in 4Q23/1Q24 following the completion of
infill, metallurgical, hydrological and geotechnical drilling as
well as trade-off and gap analyses
- Drilling Programs targeting oxide and enriched copper
mineralization
- Complete 105,000 ft (32,000 m) infill drilling program on
Parks/Salyer (Q1 2023)
- Complete 90,000 ft (27,000 m) infill drilling program at the
Cactus East and Parks/Salyer projects (Q2-Q4 2023) a requirement
for Definitive Feasibility Study (“DFS”) in 2024
- Begin small exploration program along the 4 km mine trend
(Q1-Q3 2023)
- Metallurgy
- Testing programs for the PFS and Definitive Feasibility Study
(“DFS”) level includes at least 12 columns, 20 ft (6 m) in height
and composed of material from the Stockpile, Parks/Salyer and
Cactus deposits, separated into different rock type, copper grades
and mineralogy
- 5 additional columns, 30 ft (9 m) in height are scheduled to be
constructed and online within Q1 2023
- Program completion anticipated in Q3 2023
- Permitting
- Complete permitting of Cactus based on the 2021 Cactus
Preliminary Economic Assessment (“PEA”)
- Primary Sulphide Upside
- Ongoing column testing the leachability of the primary sulphide
material at Cactus and Parks/Salyer
- The full impact of the success of the Nuton technologies in
relation to Cactus and Parks/Salyer and/or integration within a
technical study remains under consideration and will be determined
by the output of the technical work and commercial arrangements to
be reached
- Potential to infill drill the primary sulphide material at
Cactus, related to the Nuton technologies requirements
George Ogilvie, ASCU President and CEO commented, “This
past year was pivotal as we developed Cactus and demonstrated
scalability through the addition of the Parks/Salyer deposit which
grew our Cactus project into the third largest independent copper
project in the US. Additionally, our teams advanced permitting,
conducted detailed engineering and welcomed Rio Tinto as a 7%
shareholder, related to its Nuton technologies testing ASCU’s
primary material, a previously stranded resource. Our team
continues to grow at the project level, as we ended the year with
17 employees and 25 contracted support personnel, and zero-lost
time accidents.
He continued, “This next year’s milestones will be tied to the
integration of the Cactus base case leachable material mine plan
with potential new additions from the Parks/Salyer deposit and the
primary sulphide optionality currently being tested with Rio
Tinto’s Nuton technologies.
“We also aim to conduct pure additional exploration drilling on
our underexplored property; which could add further value through
success with the drill bit.”
Drilling
Drilling at Parks/Salyer is focused on completing the infill to
250 ft (76 m) spacing drilling program. Two drill rigs are
completing the remaining 19 (47,000 ft | 14,350 m) of the planned
46-hole (105,000 ft | 32,000 m) program, with final assays expected
within the second quarter. Three drill rigs in total are focused on
the necessary infill and engineering holes required to advance the
Parks/Salyer Project through to PFS, including geotechnical and
hydrology holes. The necessary Cactus engineering drilling has
already been completed.
An additional infill program to 125 ft (38 m) drill spacing at
both Cactus and Parks/Salyer will be ongoing from Q2 to Q4 within
approximately 90,000 ft (27,000 m) of drilling. The drilling will
move the resource classification into the measured category ahead
of the Definitive Feasibility Study (“DFS”) expected in 2024.
A 20,000 ft (6,100 m) exploration program is being considered on
the 4 km mine trend based on results of an ionic leach survey. The
survey illustrated the potential for additional mineralization in
the “Gap Zone” between Parks/Sayler and Cactus West, as well as in
the NE Extension.
Further infill drilling relating to the primary sulphides at
Cactus West will need to be considered in due course in the context
of the Nuton technologies and potential incorporation within a
technical study.
Infrastructure Improvements
ASCU, working on a brownfield site, is continually improving and
upgrading the past producing project. Projects planned in 2023
include:
- Connect electricity to site facility, Trustone Metallurgical
and Sample Lab
- Upgrade Trustone to include a core shed
Metallurgy
Metallurgical testing programs for the PFS, DFS and Nuton are in
progress. ASCU is operating 12 initial 20 ft (6 m) columns on site.
The materials from the Stockpile, Cactus and P/S deposits have been
separated into different rock types, copper grades and mineralogy
for assessment. Additional materials from Parks/Salyer
metallurgical core hole drilling program have been submitted to an
outside lab to be crushed and prepared for the ongoing testing
program. Based on the Cactus met testing, Parks/Salyer is expected
to follow a similar timeline of 90-day oxide leach cycle, and
~200-day enriched material leach cycle.
Five columns will be constructed to a height of 30 ft (9 m) to
test both oxide and enriched materials from Parks/Salyer and
Cactus. In addition, Rio Tinto is operating columns related to the
Nuton leaching technologies, including samples from the oxide,
enriched and primary sulphide material from both Cactus and
Parks/Salyer, as well as from the Stockpile and tailings
facility.
Permitting
Completed permitting to date has included water rights and
access to water and the SWPPP among others. Pinal County and
Arizona State Mines department are currently reviewing applications
for the Industrial Air Quality Permit and the Mined Land
Reclamation Permit. Once in hand, ASCU will be fully permitted
based on the 2021 PEA for the Cactus East UG and Stockpile; upon
completion of the PFS, ASCU will amend relevant permits with
updated engineering.
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 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.
Forward-Looking Statements
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/20230110005312/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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