George Ogilvie, President and CEO of Arizona Sonoran Copper (TSX:ASCU – OTCQX:ASCUF), joins me outline the updated resources at the Cactus Project in Arizona, that contains over 11 billion pounds (“lbs”)  of copper in all categories – 7.3 billion lbs of copper in measured and indicated, and 3.8 billion lbs in the inferred category.

We start off discussing the key metrics and takeaways from this updated resource estimate, and George outlines that it is because of all the drilling the company has done at the MainSpring Property, had not been included in this study yet, which brought in 1.9 billion lbs of copper.  Since Mainspring was amenable to open pit mining, this also allowed for Parks-Salyer to be transitioned into an open pit scenario as well, bringing in an additional 1.5 billion lbs of copper. Now that there is an enlarged pit, it confirms Parks/Salyer and MainSpring as one deposit, renamed to “Parks/Salyer.” This transition to open pit mining increases the efficiencies, improves costs, reduces capex, and takes away the need to put in the twin declines initially proposed.

There will be a Preliminary Economic Assessment coming out in the next few weeks that will wrap some economics and other mine development data around the combined project.  After that PEA, then all of the ongoing infill drilling at MainSpring and also deeper at Cactus West looking for more sulphide resources will all factor into a larger combined PFS for the whole Cactus Project, Parks Salyer, and Mainspring, both as a stand-alone project, and in concert with the Nuton leaching technology in 2025. That PFS study for next year will also review the optionality to improve the process with the investment by Nuton LLC (a wholly-owned subsidiary of Rio Tinto) and subsequent option to Joint Venture (“JV”) the Cactus Project to Nuton LLC using their proprietary leaching recovery methods.   George also provides some updates on permitting for the project, and the importance of it being on private land to help expedite the process.

If you have any follow up questions for George about Arizona Sonoran, then please email me at Shad@kereport.com  and I’ll get those forwarded along to the company.

• In full disclosure, Shad has a position in Arizona Sonoran Copper at the time of this recording.

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