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“As part of the Preliminary Economic Assessment, we engaged GEM to conduct a detailed trade-off analysis of the myriad of potential development routes available for the exciting Marimaca Project. While this analysis is at an early stage, GEM concluded that Marimaca is clearly a very promising project within the global sphere of copper development peers. GEM’s report also confirmed that Marimaca warrants development as a standalone project with a production capacity design for up to 40,000 tonnes of copper cathode per annum. As a result, this assessment has become the design basis for the upcoming PEA.”

Michael Haworth
Executive Chairman
Marimaca Copper Corp.

Marimaca Copper Corp. has released the high level results of a detailed trade-off analysis, conducted by independent consultants, Gestion y Economia Minera Limitada, for the development of its flagship Marimaca Copper Deposit.

Michael Haworth, Executive Chairman of Marimaca Copper Corp commented:

“As part of the Preliminary Economic Assessment, we engaged GEM to conduct a detailed trade-off analysis of the myriad of potential development routes available for the exciting Marimaca Project.

“While this analysis is at an early stage, GEM concluded that Marimaca is clearly a very promising project within the global sphere of copper development peers. GEM’s report also confirmed that Marimaca warrants development as a standalone project with a production capacity design for up to 40,000 tonnes of copper cathode per annum. As a result, this assessment has become the design basis for the upcoming PEA.

“We remain very excited at the potential to find additional oxide resource tonnes around the Project, which could change its scale and mine life in the future. One of the key benefits of SX-EW processing is the simplicity with which production can be increased due to the modular nature of the processing plant.

“Lastly, the PEA is progressing well, despite the difficulties many businesses faced as a result of Coronavirus. We are anticipating delivering the results to the market at the end of June or into early July.”

Marimaca Copper Project Overview

Marimaca Copper released an updated Mineral Resource Estimate  for Marimaca of 70 million tonnes, with an average grade of 0.60% copper, within the Measured & Indicated Categories (approximately 420Kt of contained copper) and 40 million tonnes, with an average grade of 0.52% copper, within the Inferred Category (approximately 224kt of contained copper) (refer release on 2 December 2019). This represents an increase of almost 100% from the MRE released in April 2018 and makes the Project one of the most significant copper oxide discoveries in Chile in the last decade. The Company is currently undertaking a PEA for the Project, which is anticipated to be completed in the late June or early July 2020. The Project is expected to benefit from low upfront capital development costs and, due to the favourable geometry of the orebody and relatively simple oxide processing through SX-EW, Management believes the Project will have very competitive operating costs, delivering compelling economics in the PEA. ”

GEM Trade-off Analysis

Marimaca Copper engaged GEM to conduct a detailed option trade-off and analysis and risk assessment for the development of the Marimaca Copper Project. The objective of the work was to identify an optimal development strategy for Marimaca, but also to provide additional risk-based information to inform strategic decision making by the Company.”

GEM ran multiple scenarios, using deterministic and stochastic models, to quantify economic outcomes of each potential development strategy, but also the level of risk associated with each strategy based on numerous inputs. The analysis followed a path of first identifying any uncertainties for the Project as a whole, then quantifying risks to the Project and finally an assessment of each of the potential strategies available to the Company.”

Following the rigorous analytical processes undertaken by GEM, it was clear that the best development strategy was the construction of a full scale, standalone, development of Marimaca, using an open pit and SX-EW plant with a design basis for the production of up to 40,000 tonnes of copper cathode per annum.”

Given Marimaca Copper enjoys the strong support of two large shareholders, and capital is unlikely to be constrained for a project of the quality of Marimaca, the Company elected to proceed with the full scale, standalone Marimaca development as the go-forward strategy.”

Marimaca Copper Mining and the Marimaca Project

Marimaca is fast becoming recognised as one of the most significant copper discoveries in Chile in recent years as it represents a new type of deposit which challenges accepted exploration wisdom in the region. Marimaca is hosted by intrusive rocks while the numerous manto deposits in the same region are hosted by volcanics. With a lack of new copper exploration discoveries in Chile, the growing Marimaca resource is an exciting development project, situated in the coastal belt at low elevation close to the major regional centres of Antofagasta and Mejillones. This prime location could enable its future development at a relatively modest capital investment. Marimaca will benefit from nearby existing infrastructure including roads, powerlines, ports, a sulphuric acid plant, a skilled workforce and seawater.”

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