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
3
19
Appendix
Copper Market Outlook
22
28
Property and Company Overview
Overview Of Amrich and Its Santa Cruz Property
Compelling copper resource investment opportunity
Santa Cruz
Property
Resource
Highlights
Copper Industry
•
•
•
•
100% owned by Amrich with no production royalties
Past-producing mine located in Pinal Country, Arizona
Will produce 99.999% 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)
•
•
•
•
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
• 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
Overview of the Phase I thru 3 Development Plan
Fast Tracking of Production Through Phased Development
Phase I
• 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 II
•
•
•
•
Phase III
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
• 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
Deposit
Tons
lbs/ton
%AsCu
Contained Cu
Santa Cruz (Hanna Getty)
220,000,000
2,000
1.07
4,708,000,000
Santa Cruz (Northwest)
150,000,000
2,000
0.50
1,500,000,000
Santa Cruz (Southeast)
50,000,000
2,000
0.56
560,000,000
Sacaton North
63,000,000
2,000
0.98
1,234,800,000
Sacaton South
200,000,000
2,000
1.00
4,000,000,000
Texaco
57,000,000
2,000
1.12
1,276,800,000
TOTAL
13,279,600,000
740,000,000
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 acidresistant 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
Name
Experience
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
Name
Experience
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: 13-20 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 Leaching
Courtesy of Curis Resources
Open Pit Mining
Large Previously Disturbed Area
Majority of Historic Land Use was for Agriculture
Looking East from Pilot Plant
Looking 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 Property
Near Past Producing Mine
Santa Cruz Property Permitting Matrix Overview
Located in a Mine Friendly Region
AGENCY
United States Environmental Protection Agency (EPA)
PERMIT
Underground Injection Control Permit & Aquifer
Exemption
Aquifer Protection Permit
Arizona Department of Environmental Quality (ADEQ)
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 Commission
Planning 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 Grande
General Plan, Rezoning, Site Planning & Building Permits
Pinal County Air Quality Control District
Air Quality Permit
Pinal County Emergency Response Planning Committee
Planning Notification
Appendix
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 - 9.2 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
Thank You