Community Presentation July 2010 1 SWVP-022790 Project Overview - - PowerPoint PPT Presentation

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Community Presentation

July 2010

SWVP-022790

SWVP-0599

Project Overview

• Florence Copper Project is an initiative of Curis Resources Ltd. to develop a

world-class in-situ copper recovery (ISCR) project in central Arizona

• Proven technology for copper production without the large-scale land

disturbances usually associated with mining

• Significant employment and economic benefits for Florence, Pinal County

and State of Arizona

• Next-generation copper producer
• incorporating best-of-class environmental management and green technologies
• addressing local priorities & concerns
• NO EFFECTS on local groundwater quality or availability
• Curis Resources a contributing member of a flourishing Florence community
• www.florencecopperproject.com

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Project Site

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Project History

1960’s American Smelting & Refining Co (ASARCO) undertakes early exploration 1970 Continental Oil Company (Conoco) records first copper intercepts 1972 Conoco constructs two 700’ shafts and one mile of cross-cuts Test mines 50,000 tons of ore On-site metallurgical testing via milling, floatation and vat leaching plant 1992-1996 Acquired by Magma Copper Company Prefeasibility studies to determine optimum mining method Metallurgical and materials property testing Focus shifts to in-situ copper recovery (ISCR) production and SX-EW processing 1996-1998 Magma acquired by BHP Copper (Florence Copper, Inc.) Geological, hydrogeological, metallurgical & hydrochemical test work ISCR pilot test completed – test included installation of 67 injection, production and environmental monitoring wells 1999 BHP completes Pre-Feasibility Study Measured & indicated resource (429 million tons) Permitting in place for ISCR production 2000 Project deferred due to low metal prices Property acquired by Merrill Ranch Investments LLC 2009 HDI acquires Florence Project patented land 2010 HDI Acquires State mineral leases. Curis Resources Ltd. formed and senior project team assembled to advance Florence Project towards development 1996-2010 Groundwater quality monitored every three months Results demonstrate no impairment of water quality or quantity from historic ISCR activities

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ISCR Technology

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In-Situ Copper Recovery (ISCR)

• ISCR allows for the recovery of valuable copper minerals without

mining related land disturbances

• NO open pits, waste rock facilities or tailings storage
• A low pH solution is injected into a soluble copper orebody
• Solution strength is comparable to lemon juice or household vinegar
• Copper-rich solution is pumped to surface via recovery wells
• Well orientation and pumping rates designed to ensure ‘hydraulic

control’

• Solution recovery rates are 10 - 20% higher than injection rates
• Excess water stored in water impoundments
• Monitoring wells ensure groundwater quality is maintained

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Hydraulic Control

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Project Geology

• 429 million ton measured and indicated copper oxide resource
• 0.33% of the resource is copper (total 2.84 billion lb)
• Soluble copper in orebody and highly fractured rock
• Aquitard acts as a natural barrier to water movement
• Ideal condition for in-situ copper recovery (ISCR)

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Before, During & After ISCR Operations

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Current Site, Looking South During Operations After Reclamation

SWVP-022798

Project Scope

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Planned Project Timeline

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Phase 1: Production Test

• A small, on-site ISCR production test is scheduled to commence in Nov 2010
• Goals include:
• ptimize and confirm copper recoveries;
• test various pumping and recovery rates;
• update project economics.
• Facilities required:
• 20 injection, recovery, observation and monitoring wells
• Surface area occupied by well-field is 1.8 acres
• Temporary modular building for data collection and solution recovery testing
• During this phase, Curis will invest ~ $45 million and employ ~30 people

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Production Test Location

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Phase 2: Feasibility Study & Permitting

• Following a successful ISCR Production Test, Curis will complete a

bankable Feasibility Study and undertake comprehensive project permitting

• Federal and State permitting for commercial ISCR operations is expected to

take 18 months to complete

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Phase 3: Project Financing & Construction

• Project construction will take ~12 – 18 months
• Commercial ISCR production targeted for late 2013/early 2014
• Capital expenditure: ~$200 million
• Primary activities include:
• infrastructure development;
• construction of SX-EW plant; and
• well field development.

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Phase 4: ISCR Operations

• ISCR operations at the Florence Copper Project will take ~18 months to

reach full capacity

• Anticipated project life:15 – 20 years
• Anticipated direct employment : ~170 head of household jobs
• Tens of millions of dollars in supply and service contracts
• Standard solution extraction and electro-winning (SX/EW) technology
• Pure copper cathode will be produced on-site

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On-Site Copper Production

• Standard solution extraction and electro-winning (SX/EW) technology
• Pure copper cathode will be produced on-site

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Conceptual Project Layout

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Production Facilities

• Full ISCR production at the Florence Copper Project will require:
• installation of an ISCR well-field
• upgrading and expansion of solution storage tanks
• construction of additional water impoundments
• construction of an SX/EW plant
• associated administration, transportation and power infrastructure

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Phase 5: Closure

• Following ISCR operations, the Florence Copper Project site will be

returned to pre-development or better conditions.

• The property will be available for a number of post-closure land uses,

including agriculture and residential development

• Environmental monitoring will continue for 30 years after the completion of

production to guarantee integrity of groundwater resources

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Water

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Water Quality

• The Florence Copper Project will result in NO CHANGE to regional groundwater

quality or availability

• ISCR technology and practices have been conclusively shown to have NO long-term

effects on groundwater quality or availability

• 14 years of water quality monitoring at 31 ‘point of compliance’ wells prior to, during

and following the 1997 BHP ISCR production test have shown NO CHANGE to groundwater conditions

• During ISCR operations, monitoring program will be expanded and enhanced
• All site-specific water quality standards enforced by the Arizona Department of

Environmental Quality (ADEQ)

• Water quality monitoring will continue for 30 years post-closure

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Groundwater Flow Characteristics

• Near-surface aquifers used for potable

water will be unaffected by the Florence Copper Project

• ISCR operations will exclusively use

deeper, groundwater zones not currently used for drinking water

• If water quality monitoring indicates any

impairment outside of the permitted area, pumping of solution would be stopped and fresh water would be pumped into the ground until conditions are shown to meet all required standards.

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Water Use

• The ISCR production area at Florence will comprise 213 acres
• ISCR operations will utilize about 1,300 acre feet of water per year when in full

production

• Agricultural production (2-3 harvests of alfalfa) on 213 acres would require between

1,700 - 2,600 acre feet of water per year

• Currently, 423 acres of the project site are used for agricultural production
• It is expected that agricultural cultivation will continue during ISCR operations

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Economic Benefits

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Local Investment

• Curis will invest ~$45 million in the

Florence Copper Project over the next two years

• Near-term expenditures include:
• engineering and environmental studies
• permitting activities
• a small on-site ISCR production test
• community outreach activities
• site operations and administration
• Capital expenditures to bring the Florence

Copper Project into operation are estimated to be in the range of $200 million

• Life of project (15-20 years) capital

expenditures will be in the range of a further $300 million

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Local Jobs

• In full production, the Florence Copper Project will create

~170 full-time positions for professional, technical, general labor and administrative staff

• ~30 local positions will be created in 2011 and 2012 in the

run-up to full ISCR operations

• For each direct job created, the Florence Copper Project has

the potential to support another 4.75* indirect or induced jobs

• Indirect jobs are those created in businesses that will

provide goods and services to the Florence Copper Project

• Induced jobs are those created by the spending of

employee wages or government revenues

• Based on a multiplier of 4.75*, the Florence Copper Project

has the potential to support nearly 850 jobs for 15-20 years

• These jobs will create significant economic benefits for

businesses within the Town of Florence and Pinal County

* Source: The Economic Impact of the Arizona Copper Industry, 2009 (WEAC)

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Local Economic Activity

• Comprehensive economic impact study to be completed in 2010
• Benefits include:
• Tens of millions of dollars in annual supply and service contracts
• More than $10M annually in direct payroll
• Tens of millions of dollars annually in local, county, state and federal taxes
• Significant spinoff economic activity in the region
• Economic diversification for the Town of Florence
• High wage jobs

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Local Hire & Procurement

• Florence Copper Project ‘Local Hire & Procurement Policy’:
• Curis and its contractors will:
• ensure that local people receive priority consideration for employment, based on

qualifications and merit;

• ensure that local companies receive priority consideration for contract
• pportunities, based on qualifications and merit;
• where possible, provide or facilitate access to training to ensure that local

residents gain the skills and qualifications necessary for employment; and,

• where possible, assist local companies to identify future contract opportunities

and to build the capacity necessary to benefit from these opportunities.

SWVP-022818

Questions?

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