4 Overview Of Amrich and Its Santa Cruz Property Compelling copper resource investment opportunity 100% owned by Amrich with no production royaltiesPast-producing mine located in Pinal Country, ArizonaWill produce % pure copper on siteDrilled resource and facilities situated on over 2,700 acres of unpatented mineral claims totaling 132 claimsAmenable to lowest cost recovery technologies (In-Situ, SX/EW processing)Santa Cruz Property6 well defined ore bodies13,279,600,000 pounds of contained copperThird largest un-mined copper deposit in ArizonaProperty was explored by ASARCO and Freeport McMoRan Copper & Gold as a Joint VentureOver 50,000 feet of drilling done on site by Joint Venture partnersResource HighlightsCopper is the most widely used non-ferrous metal; demand has grown over 34% over the last 10 yearsDemand 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 2025Copper Industry
5 Overview of the Phase I thru 3 Development Plan Fast Tracking of Production Through Phased DevelopmentConstruct SX/EW facility at Santa Cruz propertyDevelop well fields at Hanna Getty, Santa Cruz Southeast, Santa Cruz Northwest depositsStart production of copper cathode at SX/EWPhase IConstruct pipeline from Texaco deposit to SX/EW facility at Santa Cruz siteDevelop well fields at Texaco depositStart in-Situ leaching at Texaco depositStart reclamation at Hanna Getty, Santa Cruz Southeast, Santa Cruz Northwest depositsPhase IIConstruct pipeline from Sacaton North and Sacaton South deposit to SX/EW facility at Santa Cruz siteDevelop well fields at Sacaton North and Sacaton South depositStart in-Situ leaching at Sacaton North and Sacaton South depositStart reclamation at Texaco depositsPhase III
6 Historic Reserve Estimates Large copper resource of 13 Historic Reserve Estimates Large copper resource of 13.3 billion pounds of copperDepositTonslbs/ton%AsCuContained CuSanta Cruz (Hanna Getty)220,000,0002,0001.074,708,000,000Santa Cruz (Northwest)150,000,0000.501,500,000,000Santa Cruz (Southeast)50,000,0000.56560,000,000Sacaton North63,000,0000.981,234,800,000Sacaton South200,000,0001.004,000,000,000Texaco57,000,0001.121,276,800,000740,000,000TOTAL13,279,600,000
7 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.
10 Typical View of a Wells from Surface Courtesy of Curis Resources
11 Proposed Drilling Pattern for Santa Cruz Injection Proposed Drilling Pattern for Santa Cruz Injection. Recovery and Monitoring Well Fields
12 Ore at Santa Cruz Property The Santa Cruz In-Situ Copper Mining Research Project ChrysocollaGranite
13 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.
14 Amrich Minerals, LLC Management NameExperienceAmiel DavidDr. 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 LeeMr. 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 SniderMr. 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.
15 Amrich Minerals, LLC Advisory Board NameExperienceTim SniderMr. 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 MarsdenMr. 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 QuickMr. 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 ChakrabartiDr. 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.
17 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.
18 Highlights of Santa Cruz Pilot Plant Joint Venture Between ASARCO & Freeport McMoRan Operating Period: Encompassed 309 daysOperations Ceased in early 1998During operations the SX/EW ran very efficiently and virtually flawlesslyPlant processed: gpm of solvent extraction (SX) feed containing 0.3 to 1.8 gpl of CuPilot plant production: 17.5 tons of copper cathodesThe SX plant operated with 93% copper transfer efficiencyThe EW plant achieved 97% current efficiencyCathode purity achieved: 99.99% CuPlant operating staff: 14
19 Historic Aerial Photo of In-Situ Pilot Plant Joint Venture Between ASARCO & Freeport McMoRan
20 Comparison of Surface Disturbances In-Situ vs. Open Pit Mining In-Situ LeachingOpen Pit MiningCourtesy of Curis Resources
21 Looking East from Pilot Plant Looking West at Pilot Plant Large Previously Disturbed Area Majority of Historic Land Use was for AgricultureLooking East from Pilot PlantLooking West at Pilot Plant
23 Infrastructure Existing infrastructure providing support for mine build out The project site is accessed by State and County roads with rail /airport facilities nearbySufficient water is available on the property and groundwater wells will be developed to meet the water requirementsPower is available at the project site from the Arizona Public Service (APS) gridA 33-KVA power line with a major electrical substation is located nearbyRail Adjacent to PropertyNear Past Producing Mine
24 Santa Cruz Property Permitting Matrix Overview Located in a Mine Friendly Region AGENCYPERMITUnited States Environmental Protection Agency (EPA)Underground Injection Control Permit & Aquifer ExemptionArizona Department of Environmental Quality (ADEQ)Aquifer Protection PermitArizona Pollution Discharge Elimination System - General Permit For Stormwater DischargeHazardous Waste Generator Identification Number401 CertificationBureau of Land Management (BLM)Mine Plan of OperationArizona Department of Water Quality (ADWQ)Permit to Withdraw Groundwater for Mineral Extraction & Metallurgical ProcessingWater RightsArizona State Emergency Response CommissionPlanning NotificationArizona State Mine Inspector (ASMI)Mined Land Reclamation PlanArizona Department of Transportation (ADOT)Encroachment PermitFederal Communications Commission (FCC)Radio LicenseCity of Casa GrandeGeneral Plan, Rezoning, Site Planning & Building PermitsPinal County Air Quality Control DistrictAir Quality PermitPinal County Emergency Response Planning Committee
26 2010 Copper Production in Arizona Santa Cruz Property General Location Compelling copper resource investment opportunity2010 Copper Production in ArizonaTotal personal income (direct & indirect): $3.624 billionTotal jobs (direct & indirect): 73,100Total payments to governments (direct): $194.4 millionTotal contributions to Arizona economy (direct): $2.5 billionTotal employment (direct): 10,400Total wages and salaries (direct): $970 millionTotal mineral production: 797,408 tonsTotal production value: $6.034 billionSanta Cruz Site
27 Claims at Santa Cruz Property Compelling copper resource investment opportunity
28 Ore Deposits at the Santa Cruz Property Compelling copper resource investment opportunity
30 Arizona Copper Facts One of the five “C’s” Arizona produced 63% of U.S. copperArizona’s copper is predominately sold outside the state – injecting fresh dollars into Arizona’s economyIndustry 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 charitiesCopper is one of Arizona’s five “C’s”, a core industry of our state’s economy
31 Copper Industry Demand Issues Global Growth Downward pressure on demandWireless technologySubstitutionMore efficient constructionOverbuilt infrastructure in Western worldUpward pressure on demandInfrastructure in developing worldGrowing world population billion by 2050Rising living standards in AsiaInfrastructure rebuilding in US/EuropeAlternative energy (solar, wind, electric cars)
33 World Population Growth Global Growth 1950 to 2050
34 Per Capita Copper Consumption (Annual pounds copper consumed per person)
35 8 Challenges in Development of Mineral Resources Growing PopulationsGrowing per Capita Mineral UsePhysical Availability of MineralsCompetition for LandCompetition for WaterCompetition for EnergyBiosphere’s Capacity to Absorb Mineral WasteTechnology Development
36 Worldwide Copper Consumption Million Metric Tons
37 Worldwide Copper Production Factors impacting supply growth Political opening of ChilePolitical opening of PeruGrasbergSX/EW expansionsExpanded resources at past producing minesEmerging resource areas like Africa
38 Copper Industry Supply Issues Downward pressure on supply Declining production from existing mines– Natural decline in ore gradeRate of exploration discovery has not kept up with demand– Stable parts of the world are well explored – easy ones have already been foundNew discoveries are likely to be undergroundNew discoveries are likely to be in politically challenged countriesIncreasing number of properties off limits due to social/environmental issuesDevelopment timeline for projects has extendedConstruction costs have increasedEquipment availabilityLimited mining talent pool
39 Worldwide Copper Consumption Million Metric Tons Assumes 9.2 billion people consuming 10 pounds Cu annually in 2050
40 World Population Growth Global Growth 1950 to 2050