Arizona Sonoran Pre-Feasibility Study Delivers Exceptional Results for the Cactus Project, Outlining Long-Life, Low-Cost Copper Production in Arizona

The most recent news, dated October 20, 2025, announces the results of a Pre-Feasibility Study (PFS) for Arizona Sonoran's 100%-owned Cactus Project in Arizona. The PFS outlines a long-life, open-pit copper operation using a heap leach and solvent extraction/electrowinning (SXEW) process.

Key after-tax metrics from the PFS include: * Net Present Value (NPV) at an 8% discount rate: $2.301 billion * Internal Rate of Return (IRR): 22.8% * Initial Capital Expenditures (CAPEX): $977 million * Average Annual Copper Production (first 10 years): 103,000 tonnes * All-in Sustaining Cost (AISC): $1.62 per pound of copper * Life of Mine (LOM) Free Cash Flow: $7.162 billion * Mineral Reserves: 512.9 million tons @ 0.52% CuT for 5.3 billion pounds of contained copper. * Timeline: The company targets a Final Investment Decision (FID) as early as Q4 2026, with first production anticipated in 2029.

The release of a PFS is a significant de-risking milestone, moving the Cactus Project from a preliminary economic concept to a more detailed engineering and financial plan. The impact is materially positive as it confirms the project's potential to be a large-scale, low-cost, long-life copper producer in a Tier 1 jurisdiction.

Comparison to Previous Studies: * August 2024 PEA: The PFS builds upon the 2024 PEA, which showed an after-tax NPV8 of $2.03 billion, an IRR of 24%, and an initial CAPEX of $668 million. * PFS vs. PEA Analysis: * NPV: The NPV has increased by approximately 13% to $2.3 billion, which is a strong positive. * IRR: The IRR has slightly decreased from 24% to 22.8%. While a minor decrease, it remains a robust return for a project of this scale. * CAPEX: The initial CAPEX has increased by a staggering 46% from $668 million to $977 million. This is a major concern and significantly elevates the project's financing risk. The company will need to secure nearly $1 billion for construction. * Costs: The AISC of $1.62/lb is a significant improvement from the PEA's $2.00/lb, placing the project firmly in the lower half of the industry cost curve and providing a substantial margin at current copper prices. This improvement helps to offset the negative impact of the higher CAPEX. * Production: The production profile of 103,000 tonnes/year is roughly in line with the PEA's projection of ~105,000 tonnes/year (116k short tons) for the first 20 years.

Progression and Execution: The PFS incorporates the updated Mineral Resource Estimate from September 2025, which saw a large increase in tonnage but a decrease in grade. The study successfully converts a large portion of this resource into a robust mineral reserve, adding a higher level of confidence. The company has methodically advanced the project, acquiring necessary land (Sept 2025), completing drilling programs (Aug 2025), and now delivering the technical study on the promised timeline (Q4 2025).

While the headline economics are strong and the project is significantly de-risked, the massive increase in initial capital requirements cannot be overlooked. The market's focus will now shift entirely to the company's ability to secure a financing package for this larger capital outlay without excessive dilution to existing shareholders.

Arizona Sonoran Copper Company Inc. (ASCU) is a Canadian-based copper exploration and development company. Its flagship asset is the 100%-owned Cactus Project, a brownfield copper project located on private land in Pinal County, Arizona, a Tier 1 mining jurisdiction. The project benefits from significant existing infrastructure.

The development plan has evolved significantly. An initial plan was outlined in a 2021 PEA. Discoveries at the contiguous Parks/Salyer deposit and the acquisition of the MainSpring property led to a much larger project scope. The August 2024 PEA rescoped the project as a large-scale, 31-year life-of-mine open-pit operation. The most recent October 2025 PFS has further refined this plan, confirming a 103,000 tonne-per-year operation with an initial CAPEX of $977 million and a targeted production start in 2029.