Themac denied transfer of Santa Teresa water rights

Executive Summary

• The New Mexico State Engineer denied Themac Resources Group Ltd.’s application to transfer 2,400 acre‑feet of Santa Teresa water rights to the Copper Flat mine.
• The company is reviewing the decision and evaluating alternative water management solutions, including advanced‑stage dry‑stack tailings technology.
• No immediate impact on production timelines disclosed; further analysis and permitting will determine next steps.

Key Details

• Original Agreement (April 2019): Lease of 2,400 acre‑feet of Santa Teresa water rights for use by New Mexico Copper Corp., a wholly owned subsidiary, at the Copper Flat project.
• Application Filed: August 2019 to change point of diversion and purpose of use to the Copper Flat mine; administrative hearing held in August 2023.
• Decision (2026): New Mexico State Engineer denied the water‑rights transfer application.
• Company Response: Currently reviewing the denial and considering next steps, including potential appeals or alternative strategies.
• Alternative Water Management Options:
• Investigation of more economically favourable and sustainable systems to avoid reliance on Santa Teresa rights.
• Evaluation of dry‑stack tailings technology—advanced stage feasibility study; further detailed analysis required for implementation and permitting.
• Impact Assessment: No specific quantitative impact disclosed; the denial may affect water supply planning for Copper Flat, prompting a shift toward alternative waste‑management technologies.

Notable Quotes

(No direct quotes provided in the release.)