Edge Copper Announces Positive PEA Results for its Zonia Copper Project

Executive Summary

• Edge Copper Corporation announced positive results from a NI 43-101 Preliminary Economic Assessment (PEA) for its 100%-owned Zonia Copper Project in Arizona.
• The base-case economics (at $4.60/lb Cu) indicate an after-tax NPV of $488 million, an after-tax IRR of 23.4%, and total free cash flow of $985 million over a 10-year mine life.
• The project envisions an open-pit mining and heap leach SX/EW processing operation with an average annual production of 76 million pounds of copper cathode and C1 cash costs of $2.15/lb.

Key Details

• Base-Case Economics ($4.60/lb Cu):
  • After-tax NPV (8%): $488 million
  • After-tax IRR: 23.4%
  • Total Free Cash Flow: $985 million
  • Payback Period: 4 years
• Spot-Case Economics ($5.98/lb Cu):
  • After-tax NPV (8%): $1,073 million
  • After-tax IRR: 40.9%
  • Total Free Cash Flow: $1,828 million
  • Payback Period: 2 years and 2 months
• Production Metrics:
  • Total Copper Cathode Production: 784 million pounds
  • Average Annual Production: 76 million pounds
  • Mine Life: 10 years
  • Total Resource Mined: 218 million tons
  • Total Waste Mined: 136 million tons
  • Average Strip Ratio: 0.6
  • Average Mined Copper Grade: 0.25%
  • Average Processing Rate: 60,630 tons per day
  • Average Copper Recovery: 72.8%
• Cost Structure:
  • C1 Cash Cost: $2.15/lb
  • All-In Sustaining Cost (AISC): $2.38/lb
  • All-In Cost (AIC): $2.47/lb
  • Total Initial Capital (incl. contingency): $524.5 million
    • Pre-stripping: $21.2 million
    • Plant: $311.3 million
    • Leach Pad: $46.3 million
    • Mine Mobile Equipment: $13.2 million
    • Mine Operations Infrastructure: $8.2 million
    • Admin: $39.8 million
    • Other: $3.2 million
    • Contingency: $81.2 million
  • Sustaining Capital (LOM): $168.6 million
  • Reclamation/Closure Costs: $10 million
  • Salvage Values: $71 million
• Mineral Resource (Effective Jan 30, 2026):
  • Indicated: 194 Mtons at 0.25% Cu (964 Mlbs contained)
  • Inferred: 86 Mtons at 0.20% Cu (341 Mlbs contained)
  • Note: Indicated tons increased 73% and Inferred tons increased 37% compared to the 2024 estimate.
• Exploration Update:
  • Inaugural 54,000-foot drill program commenced in January 2026.
  • Focus: Conversion of resources to higher classifications, resource expansion, geotechnical, and condemnation drilling.
  • Updated Mineral Resource estimate expected in Q4 2026.
  • Prefeasibility Study (PFS) planned for 2027.
• Sensitivity Analysis (After-tax NPV at 8%):
  • -10% Cu Price: $284 million
  • -5% Cu Price: $386 million
  • Base Case ($4.60/lb): $488 million
  • +5% Cu Price: $587 million
  • +10% Cu Price: $685 million
  • Spot ($6.00/lb): $1,073 million

Notable Quotes

• "These results highlight a solid economic foundation and represent only an initial indication of Zonia's potential as they are based on historical data, such as recovery and drilling assumptions," commented Edge Copper's Chair and CEO, Gil Clausen. "We see potential to improve recoveries through additional metallurgical test work, including finer crushing studies, which are planned for this year. Further, we also believe that expanding the resource will be a significant driver of value going forward."
• "Our focus is to continue drilling to support Zonia as a scalable, long-life copper project. Zonia is well positioned to be of strategic relevance as a sizable source of U.S.-based copper supply."