Arizona Sonoran outlines 2026 Cactus work plan

Executive Summary

• Arizona Sonoran Copper outlined its fully financed 2026 work plan to advance the Cactus project toward a final investment decision (FID) in Q4 2026 and first cathode production in H2 2029.
• The company recapped 2025 achievements, including ~$255.3M in capital raises, a 51% increase in measured & indicated copper resources, and a PFS highlighting robust project economics ($2.3B NPV, 22.8% IRR, $977M initial capex).
• Key 2026 priorities include completing the feasibility study, securing major permit amendments, advancing project debt financing, and executing infill/geotechnical drilling programs to define reserves and derisk mine engineering.

Key Details

• 2026 Work Plan & Budget: Fully financed program with ~$105M cash balance at Jan 1, 2026. 2026 operating budget is $75M (U.S.) targeting FID by Q4 2026 and first cathode production in H2 2029.
• Feasibility Study (FS): Completion expected in H2 2026. M3 Engineering is lead consultant. Workstreams include mine geotechnical study, heap leach facility design, metallurgical programs, and water reviews (storm water management, dewatering wells around Parks/Salyer pit, and monitor wells around heap leach pad).
• Drilling Programs:
• Infill to measured drilling: 91 holes (~70,000 ft) completed in 2025; additional 30 holes (22,000 ft) planned for 2026 to define first 2.5 years of mining at 125 ft spacing.
• Geotechnical & Hydrogeological: Drilling around pit and at depth to optimize slope stability and predict dewatering rates.
• Condemnation Drilling: 13 holes (7,000 ft) underway for future mine facilities; one 2025 hole intersected bedrock at 117 ft and extended to 3,195 ft in barren rock.
• Exploration: NE extension evaluation underway; relogging/reassaying historical core (ECN-128 previously intersected 990 ft @ 0.46% CuT).
• Permitting & Land: Major permit amendments anticipated in H2 2026 (aquifer protection, industrial air, mined land reclamation, GPA/PAD modifications). Industrial dust permit received Jan 7, 2026. Land payments of $7M (cash/shares) for 2025 acquisitions. Total land package: 7,843 acres.
• Project Financing: Advancing debt financing package with Hannam & Partners as adviser. Targeting firm commitments post-FS in H2 2026. Exploring government grants/loans.
• 2025 Financial Recap: ~$255.3M raised via three financings and two block trades. Includes $21.6M strategic placement (Hudbay/Nuton), $57.6M bought deal, ~$79.4M block trades ($2.50 & $2.32), $96.7M bought deal.
• 2025 Resource/Reserve Updates: M&I resources increased 51% to 11 billion lbs Cu @ 0.48% Cu. Inferred: 1.7 billion lbs @ 0.37% Cu. PFS defined 5.3 billion lbs reserve @ 0.52% CuT.
• PFS Economics (at $4.25/lb Cu): NPV (8%) $2.3B, IRR 22.8%, Initial Capex $977M (2-year construction), Free Cash Flow $7.2B, C1 Cash Cost $1.62/lb, AIC $2.01/lb, Profitability Index 2.4x, Capital Intensity $10,894/tonne. Production: 113,000 short tons Cu/yr over first 10 years of 22-year life.
• Royalty Buydowns: Bronco Creek NSR (1.0% for $500k), Royal Gold & Elemental NSR (0.64% for $8.91M).
• ESG/Community: Updated life cycle analysis and economic impact report due H2 2026. 4th round of polling planned. Scholarship with ASU Barrett College. Travis Snider appointed Casa Grande Chamber Chair 2025.

Notable Quotes

• George Ogilvie (President & CEO): "The objectives set forth for 2026 are underpinned by the company's successes in 2025. Through the methodical and disciplined execution of the corporate and project level strategy, we are advancing towards the operational readiness of the project."
• Ogilvie: "As we advance the feasibility study to completion, our teams focus is advancing the project to a final investment decision as early as Q4 this year. Included in this year's scope of work, we will seek amendments to key permits, procure long lead items and advance project financing to expected completion to fund the anticipated initiation of construction in 2027."