Development Work Accelerated At The Cactus Project

CASA GRANDE, AZ - Arizona Sonoran Copper Company Inc. (ASCU) announced a Work Plan for 2022 that 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 to a construction decision in the medium term.

George Ogilvie, President and CEO, said, “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.”

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.

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.