Cactus

The Cactus Project is 100% owned by Arizona Sonoran. The project is situated on private land in Pinal County, Arizona, the US’s leading copper-producing state.

The Cactus Project previously produced from the Sacaton open pit, which produced 38.1 million short tons of ore, recovering 200,000 short tons of copper, 27,455 ounces of gold and 759,000 ounces of silver. The unmined Cactus East and Cactus West deposits lie either side of the Sacaton pit; and, the Parks/Salyer deposit, less than 2km to the southwest, is a similar deposit exhibiting outstanding continuity of grade and mineralisation over hundreds of metres.

The orebodies at Cactus are parts of a single large porphyry copper deposit that has been broken up and displaced by extensional faulting. The system has undergone multiple periods of oxidation and leaching to produce a supergene enrichment sequence which hosts the majority of the current Resource. Historical exploration of the primary material underlying the enriched zone is limited, however, drilling has confirmed lower grade mineralisation at depth which has the potential to re-scale the project again.

Elemental Altus’ royalty covers the majority of the combined Cactus and Parks/Salyer project area and Resource, excluding the 0.64km2 Bronco Creek tenement estimated to cover approximately 25% of the Parks/Salyer Resource and 10-15% of the total Resource.

The 0.14% buydown right needs to be exercised at any time prior to July 10, 2025, after which the right will expire.

Sources

• Technical Report titled “NI 43-101-Compliant Mineral Resource Estimate and Technical Report, Parks/Salyer” effective September 26, 2022 and dated November 10, 2022
• Arizona Sonoran TSX Release titled “Arizona Sonoran Announces Updated Mineral Resource Estimate for the Cactus Project”, dated October 16, 2023
• For more information on Mercedes, please visit https://arizonasonoran.com/