Presentation on theme: "Santa Cruz Project Pinal County, Arizona Amrich Minerals, LLC September 2013 CONFIDENTIAL – NOT FOR DISTRIBUTION."— Presentation transcript:
Santa Cruz Project Pinal County, Arizona Amrich Minerals, LLC September 2013 CONFIDENTIAL – NOT FOR DISTRIBUTION
Table of Contents Property and Company Overview Santa Cruz Overview Appendix Copper Market Outlook
Property and Company Overview
Overview Of Amrich and Its Santa Cruz Property Compelling copper resource investment opportunity Copper is the most widely used non-ferrous metal; demand has grown over 34% over the last 10 years Demand has exceeded supply for the last 5 years. Copper production will have to increase by 75% over the next 12 years to satisfy demand by 2025 Copper Industry 6 well defined ore bodies 13,279,600,000 pounds of contained copper Third largest un-mined copper deposit in Arizona Property was explored by ASARCO and Freeport McMoRan Copper & Gold as a Joint Venture Over 50,000 feet of drilling done on site by Joint Venture partners Resource Highlights 100% owned by Amrich with no production royalties Past-producing mine located in Pinal Country, Arizona Will produce % pure copper on site Drilled resource and facilities situated on over 2,700 acres of unpatented mineral claims totaling 132 claims Amenable to lowest cost recovery technologies (In-Situ, SX/EW processing) Santa Cruz Property
Overview of the Phase I thru 3 Development Plan Fast Tracking of Production Through Phased Development Construct SX/EW facility at Santa Cruz property Develop well fields at Hanna Getty, Santa Cruz Southeast, Santa Cruz Northwest deposits Start production of copper cathode at SX/EW Phase I Construct pipeline from Texaco deposit to SX/EW facility at Santa Cruz site Develop well fields at Texaco deposit Start in-Situ leaching at Texaco deposit Start reclamation at Hanna Getty, Santa Cruz Southeast, Santa Cruz Northwest deposits Phase II Phase III Construct pipeline from Sacaton North and Sacaton South deposit to SX/EW facility at Santa Cruz site Develop well fields at Sacaton North and Sacaton South deposit Start in-Situ leaching at Sacaton North and Sacaton South deposit Start reclamation at Texaco deposits
Historic Reserve Estimates Large copper resource of 13.3 billion pounds of copper DepositTonslbs/ton%AsCuContained Cu Santa Cruz (Hanna Getty)220,000,0002, ,708,000,000 Santa Cruz (Northwest)150,000,0002, ,500,000,000 Santa Cruz (Southeast)50,000,0002, ,000,000 Sacaton North63,000,0002, ,234,800,000 Sacaton South200,000,0002, ,000,000,000 Texaco57,000,0002, ,276,800, ,000,000TOTAL13,279,600,000
What is In-Situ Leaching Proven Save Technology In-situ mining is designed to co-exist with other land uses, such as agriculture. The in-situ mine will typically consist of a series of injection wells and recovery wells. The wells are built with acid- resistant concrete and a PVC casing. At the level where the drill hold penetrates the copper-bearing rock, perforations in the casing allow a weak acid solution to be pumped into the ore to dissolve the copper. Then the copper-rich solution is drawn up through the recovery wells for processing at a nearby SX-EW (Solvent Extraction, Electrowinning) facility.
In-Situ Model Courtesy of Curis Resources
Typical Well Field Model Courtesy of BHP
Typical View of a Wells from Surface Courtesy of Curis Resources
Proposed Drilling Pattern for Santa Cruz Injection. Recovery and Monitoring Well Fields
Ore at Santa Cruz Property The Santa Cruz In-Situ Copper Mining Research Project Chrysocolla Granite
Santa Cruz Property Deposit Geology Information from Mindat Mineralization is a porphyry copper deposit. The ore zone is 2000 meters long, 800 meters wide, with a depth-to-top of 1600 meters and a thickness of 1700 meters. May be the largest atacamite deposit in the world. Ore control was intrusions and faulting. The high grade of the ore body is due to a supergene enrichment zone composed of atacamite and chrysocolla in the oxide zone. No production as yet, reserves proven for future open pit operations.
Amrich Minerals, LLC Management NameExperience Amiel David Dr. Amiel David, co-founder of Amrich, has over 40 years of expertise in natural resource related operations, management, investment banking and engineering. Dr. David is past president of the publicly traded Dune Energy, Inc, and was involved with the establishment of other public and private energy companies. He was also previously employed by: Gulf Research and Development Company, Superior Oil Company, First City Bank, and Duke Capital Partners amongst others. He is a member of the SPE and SPEE, and is a Registered Professional Engineer. Dr. David is currently the President of Amrich Energy, Inc. Richard Lee Mr. Lee has a strong background in natural resource engineering, Petroleum Geology, Project Evaluation and Implementation, and Field Operations. He has over 25 years of experience in the operation of oil and gas fields, and management of Exploration and Production companies. He brings a robust amount of oil industry expertise and enthusiasm to the corporation. Richard is currently the Vice President of Amrich Energy, Inc. Travis Snider Mr. Snider has more than 18 years of industry experience in exploration, production, permitting, development and consulting for major mining companies. Mr. Snider is currently on the Board of Directors for Alliance Mining Corporation and sits on the Board for the Arizona Mining Association. Previously he has worked for 8 years with Phelps Dodge Mining Corporation and served as Senior Vice President of Operations for Sierra Resource Group Inc.
Amrich Minerals, LLC Advisory Board NameExperience Tim Snider Mr. Snider has spent over 40 years in the copper industry in various aspects of copper production and operations, technical services, exploration, general management, and executive leadership. Mr. Snider is the founding chairman of Cupric Canyon Capital, and was President and Chief Operating Officer of Freeport-McMoRan Copper and Gold and its predecessor Phelps Dodge Corporation. John Marsden Mr. Marden is a professional engineer with 28 years of broad, international experience in the design and management of major, innovative copper, gold, silver, molybdenum and cobalt operations and projects in the USA, Chile, Peru, Brazil, Mexico, South Africa, and the Congo (DRC). Marsden was president of Freeport-McMoRan Copper & Gold Inc. Bob Quick Mr. Quick is a government & public affairs executive with 30 years experience in the legislative, regulatory, tax, environmental and public involvement aspects of natural resource development in mining, energy exploration and production, and industrial infrastructure. Mr. Quick was the President of the Arizona Mining Association. Andy Chakrabarti Dr. Chakrabarti has more than 44 years professional experience in economic mineral, resource assessment and engineering geology. He has held the positions of Vice President and Senior Geologist for major consulting firms and mining companies in the U.S., United Kingdom, South Africa, Colombia, and Canada.
Atacamite Mineralization Photo from Mindat
Post Mine Closure and Land Use Life After the Mine Following the completion of operations the property will be available for residential development, farming, recreation or a combination of land uses. Once the copper minerals have been recovered, injection and recovery wells will be used to rinse the bedrock with fresh groundwater. Once groundwater quality has returned to its original condition, wells will be cemented and sealed off below ground-level and production areas covered with native soils. Project buildings, facilities and infrastructure will also be removed. Reclamation at the facility will be an ongoing process, with some portions of the production area fully reclaimed while others are still in operation.
Highlights of Santa Cruz Pilot Plant Joint Venture Between ASARCO & Freeport McMoRan Operating Period: Encompassed 309 days Operations Ceased in early 1998 During operations the SX/EW ran very efficiently and virtually flawlessly Plant processed: gpm of solvent extraction (SX) feed containing 0.3 to 1.8 gpl of Cu Pilot plant production: 17.5 tons of copper cathodes The SX plant operated with 93% copper transfer efficiency The EW plant achieved 97% current efficiency Cathode purity achieved: 99.99% Cu Plant operating staff: 14
Historic Aerial Photo of In-Situ Pilot Plant Joint Venture Between ASARCO & Freeport McMoRan
Comparison of Surface Disturbances In-Situ vs. Open Pit Mining In-Situ LeachingOpen Pit Mining Courtesy of Curis Resources
Large Previously Disturbed Area Majority of Historic Land Use was for Agriculture Looking East from Pilot PlantLooking West at Pilot Plant
Santa Cruz Overview
Infrastructure Existing infrastructure providing support for mine build out The project site is accessed by State and County roads with rail /airport facilities nearby Sufficient water is available on the property and groundwater wells will be developed to meet the water requirements Power is available at the project site from the Arizona Public Service (APS) grid A 33-KVA power line with a major electrical substation is located nearby Rail Adjacent to PropertyNear Past Producing Mine
Santa Cruz Property Permitting Matrix Overview Located in a Mine Friendly Region AGENCYPERMIT United States Environmental Protection Agency (EPA) Underground Injection Control Permit & Aquifer Exemption Arizona Department of Environmental Quality (ADEQ) Aquifer Protection Permit Arizona Pollution Discharge Elimination System - General Permit For Stormwater Discharge Hazardous Waste Generator Identification Number 401 Certification Bureau of Land Management (BLM)Mine Plan of Operation Arizona Department of Water Quality (ADWQ) Permit to Withdraw Groundwater for Mineral Extraction & Metallurgical Processing Water Rights Arizona State Emergency Response CommissionPlanning Notification Arizona State Mine Inspector (ASMI)Mined Land Reclamation Plan Arizona Department of Transportation (ADOT)Encroachment Permit Federal Communications Commission (FCC)Radio License City of Casa GrandeGeneral Plan, Rezoning, Site Planning & Building Permits Pinal County Air Quality Control DistrictAir Quality Permit Pinal County Emergency Response Planning CommitteePlanning Notification
Santa Cruz Property General Location Compelling copper resource investment opportunity 2010 Copper Production in Arizona Total personal income (direct & indirect): $3.624 billion Total jobs (direct & indirect): 73,100 Total payments to governments (direct): $194.4 million Total contributions to Arizona economy (direct): $2.5 billion Total employment (direct): 10,400 Total wages and salaries (direct): $970 million Total mineral production: 797,408 tons Total production value: $6.034 billion Santa Cruz Site
Claims at Santa Cruz Property Compelling copper resource investment opportunity
Ore Deposits at the Santa Cruz Property Compelling copper resource investment opportunity
Copper Market Outlook
Arizona Copper Facts One of the five “C’s” Arizona produced 63% of U.S. copper Arizona’s copper is predominately sold outside the state – injecting fresh dollars into Arizona’s economy Industry is active in sustainable development efforts – reclaiming and remediating impacts of historic mining and investing in the future of mining communities Industry benefits rural and metropolitan communities and counties throughout the state Companies donate many volunteer hours and provide significant funding to support local charities Copper is one of Arizona’s five “C’s”, a core industry of our state’s economy
Copper Industry Demand Issues Global Growth Downward pressure on demand Wireless technology Substitution More efficient construction Overbuilt infrastructure in Western world Upward pressure on demand Infrastructure in developing world Growing world population billion by 2050 Rising living standards in Asia Infrastructure rebuilding in US/Europe Alternative energy (solar, wind, electric cars)
Copper Industry Demand Issues Global Growth
World Population Growth Global Growth 1950 to 2050
Per Capita Copper Consumption (Annual pounds copper consumed per person)
8 Challenges in Development of Mineral Resources Growing Populations Growing per Capita Mineral Use Physical Availability of Minerals Competition for Land Competition for Water Competition for Energy Biosphere’s Capacity to Absorb Mineral Waste Technology Development
Worldwide Copper Consumption Million Metric Tons
Worldwide Copper Production Factors impacting supply growth Political opening of Chile Political opening of Peru Grasberg SX/EW expansions Expanded resources at past producing mines Emerging resource areas like Africa
Copper Industry Supply Issues Downward pressure on supply Declining production from existing mines – Natural decline in ore grade Rate of exploration discovery has not kept up with demand – Stable parts of the world are well explored – easy ones have already been found New discoveries are likely to be underground New discoveries are likely to be in politically challenged countries Increasing number of properties off limits due to social/environmental issues Development timeline for projects has extended Construction costs have increased Equipment availability Limited mining talent pool
Worldwide Copper Consumption Million Metric Tons Assumes 9.2 billion people consuming 10 pounds Cu annually in 2050
World Population Growth Global Growth 1950 to 2050