Interview with Hayden Locke, President & CEO of Marimaca Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/marimaca-copper-tsxmari-permitting-dfs-timeline-fast-tracking-copper-production-by-2026-4348

Recording date: 6th November 2023

Marimaca Copper Corp is rapidly advancing its flagship Marimaca Copper Project in Chile through systematic derisking and optimization. With a recent major metallurgical breakthrough, Marimaca has cemented itself as one of the leading global copper development stories.

The company announced excellent results from Phase 6 metallurgical testing, which yielded a 25% reduction in projected acid consumption for processing its copper ores. This translates into significantly lower operating costs for the project.

Acid consumption is expected to fall from 40.6 kg/t to 30.6 kg/t based on optimized leaching conditions identified in the test work. With acid accounting for 30-40% of cash costs, this reduction provides major upside for Marimaca's cost profile. The company anticipates its C1 operating costs could now come in as low as $1.00-1.10/lb versus previous guidance of $1.30-1.40/lb. This would place Marimaca in the lowest quartile of the global copper cost curve.

At the same time, Marimaca confirmed average copper recoveries of 74.9% from its testing, in line with results from previous programs. It also showed further flexibility to reduce acid usage with minimal impact on overall recoveries.

The metallurgical optimizations significantly de-risk the project and provide multiple economic benefits. Firstly, the project has materially lower life-of-mine operating costs and increased profit margins at conservative copper prices. It has enhanced project economics with a potential NPV upside of 40-50% at the feasibility study stage. There is also an increase in operating flexibility and resilience against spikes in acid pricing. It has also further derisked Marimaca as the project heads into final feasibility study and project financing phases.

With Phase 6 metallurgical testing now complete, Marimaca is on the cusp of releasing its definitive feasibility study in 2025. The company remains on track to submit environmental permits in mid-2024 and break ground on construction in 2025. First copper production is expected in 2026, perfectly aligning Marimaca with the coming copper supply deficit as demand surges from electric vehicles, renewable energy, and global electrification. Marimaca’s large, oxide-only copper resource, straightforward metallurgy, tier 1 Chilean mining jurisdiction, and clean balance sheet further reinforce its position as a top global copper developer.

For investors, Marimaca represents a compelling, de-risked way to capitalize on the copper bull market. It offers world-class discovery potential and near-term production growth just as copper heads into a structural deficit. Few copper developers can match Marimaca’s blend of low operating costs, strong economics, exploration upside and clear path to production in a premier mining destination like Chile. With its latest metallurgical milestone, Marimaca cements itself as a premier copper growth play at the forefront of the electric vehicle revolution.

View Marimaca Copper's company profile: https://www.cruxinvestor.com/companies/marimaca-copper

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