Can you provide updates from 2024 and the beginning of 2025?

Leading into the first half of 2025 our partnership with Nuton LLC (a Rio Tinto Venture) has advanced rapidly. In May 2024, we progressed to Stage 2 of our option agreement with Nuton, which meant we commenced early design work at our Johnson Camp mine (JCM), looking to restart the mine utilizing Nuton’s proprietary copper sulfide leaching technologies. Just 12 months later, construction of the operation is nearing completion.  Mining of copper oxide and sulfide material commenced in January 2025, and this material should start being placed on the newly constructed leach pad in June 2025. The first copper cathode is expected in Q3 this year, which marks a significant milestone for the company. For our flagship Gunnison project, we announced the results of a PEA for a large open pit in late 2024. This work highlighted a number of opportunities to make this exciting project look even better.  We termed these the “High Value-Add” (HVA) program and work has already started on this program with drilling commencing in April 2025.

How does the Nuton technology work?

Traditionally, treating sulfide requires crushing, grinding, and producing a concentrate, which is energy-intensive and consumes a lot of water. Sulfide leaching uses around 60% less water per pound of copper, reduces greenhouse gas emissions, and lowers capital costs. The technology involves bio-oxidation and uses certain additives that improve copper recovery from sulfide minerals. Moreover, it minimizes risks associated with tailings and acid mine drainage since we do not generate traditional tailings. This technology could also render currently uneconomic projects viable, especially in arid regions such as Arizona where water is limited.

Can you describe the underlying geology at your projects?

Johnson Camp and Gunnison are copper-molybdenum systems while peripherally there are copper, zinc, and silver systems like at Strong and Harris. We also have numerous magnetic and IP anomalies that require further exploration. Gunnison is the first company to consolidate the camp into one ownership, which opens up lots of opportunities for us.  

How does the PEA impact the open-pit versus in-situ mining decision?

Given the positive outlook for copper prices, combined with advancement of sulfide leaching technologies and the greater overall copper extraction afforded by open pit mining, it prompted us to focus on an open pit alternative to in situ recovery (ISR). To this end, we released the results of a PEA using traditional open mining in late 2024. 

How do you view the current copper price environment?

We are bullish on copper prices, especially the price of domestically produced American copper (COMEX) which has demonstrated persistent premiums recently versus non-American copper (LME).  While short term fluctuations can occur, the current geopolitical situation is making it increasingly urgent that reliable domestic US supply chains be established and strengthened for critical minerals such as copper. Recently, the President of the United States declared a National Energy Emergency and invoked emergency powers to stimulate domestic copper supply. Because of this, Arizona has seen a surge of investor interest, with new government funding sources now available and fast-tracking permitting options helping many copper development projects. 

In fact, earlier this year we announced that Gunnison and Nuton already received a US$13.9 Million allocation of Tax Credits from the Department of Energy and Internal Revenue Service to expand American made copper production at Johnson Camp.  Realization of the full amount of this tax credit is subject to several criteria which we intend to satisfy in 2025.

What catalysts are on the horizon for Gunnison Copper through 2025?

At Johnson, the big catalysts for 2025 will revolve around commencing leaching and then copper production in Q3 2025. We will then focus our efforts on ramping up to name-plate production through the first half of 2026. 

For the flagship Gunnison open pit, our intent is to complete the HVA work programs through Q3 2025. This work forms the early stages of our PFS and has the potential to add massive value to an already impressive project. In addition to the work directly on the Gunnison open pit, the transition to the open pit mining approach opens the potential for integrating some of our other assets like Strong and Harris into a large, integrated, mining and processing complex.