Curis Resources Ltd. Changing the Way Copper is Made October 2013 - - PowerPoint PPT Presentation

Curis Resources Ltd.

Changing the Way Copper is Made

October 2013

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Why Choose Curis as an Investment Opportunity?

• Copper is essentially the nervous system of modern society and can

be found in everything we touch and use

• Our goal as a company is to be the lowest cost and most progressive,

sustainable and innovative copper mining company in the world

• We believe in creating value – for our investors, for our employees

and for the communities in which we operate

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Florence Copper is a Near Term Copper Producer

• Advanced stage in-situ copper recovery

(ISCR) development project in centre of Historic Arizona “Copper Corridor”

• Lowest quartile projected capital and operating

costs

• All major power, transportation, road and rail

infrastructure in place

• Curis is 100% owner of 1,342-acre private

patented and lease (160 acres) land package

• Majority of Phase I operating permits in place

and amending existing commercial operating permits for near term production

• Over $100 million spent on project by former
• wners Conoco, Magma and BHP Copper Inc.
• Prefeasibility and successful pilot test

confirming project safety and economics by BHP Copper in 1998

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Florence Deposit Mineral Reserves and Resources

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All Oxide in Bedrock Class Millions tons %TCu Grade Million lb Copper Reserves Probable 340 0.36 2,420 Resources Measured 296 0.35 2,100 Indicated 133 0.28 741 M + I 429 0.33 2,841 Inferred 63 0.27 496

• Based on 577,317 feet of drilling in 502 holes
• Mineral Reserves and Mineral Resources at a 0.05% TCu cutoff
• QP for the 2011 resource estimate is Russell White, RM-SME, RG
• QP for the 2013 reserve estimate is Michael Young, RM-SME, Haley & Aldrich
• Mineral reserves are contained within the measured and indicated mineral resources. Mineral resources that are not mineral

reserves do not have demonstrated economic viability

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Florence Copper Projected Commercial Production Profile

Base Case Capital and Operating Costs and Expected Annual Production of Copper Cathode

• Initial capital cost of US $208 million
• Payback of capital 2.6 years (pre-tax)
• Cash operating cost of US $0.80/pound
• Total estimated operating cost of US $1.11/pound
• 27,500 tons/55 million pounds average annual production (years 1–6)
• 42,000 tons/85 million pounds average annual production (years 7–21)

Long mine life of 25 years

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• Base case uses 70% copper recovery
• Source: March 2013 Prefeasibility Study independent qualified persons include Richard Zimmerman, RM-SME, M3 Engineering & Technology Corp.

(U.S.), Terrence McNulty, PhD, PE, TP McNulty and Associates, Michael Young, RM-SME, Haley & Aldrich, Corolla Hoag, CPG, RM-SME, of SRK Consulting, Dennis Tucker, PE, ARCADIS and Richard Frechette, PE, Knight Piésold

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Florence Copper has Robust Economics

US $727 million pre-tax NPV and 36% Internal Rate of Return (IRR) @ a 7.5% discount rate and US $2.75/lb Cu

Net Present Value (NPV) Analysis Copper price US$/lb Pre-tax NPV / IRR Post-tax NPV / IRR $3.00 US $849 Million / 38% US $585 Million / 31% $2.75 US $727 Million / 36% US $503 Million / 29%

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Source: NI 43-101 Prefeasibility Study for the Florence Project, March 2013

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Curis Peer Benchmarking – Initial Capital Costs / Project Pre-Tax NPV

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At an initial capital cost to pre-tax NPV ratio of 26%, Curis has the lowest ratio versus its base metal developers peer group

26% 0% 50% 100% 150% 200% 250% 300% Curis Augusta Hana Quaterra WRN Nevada Copper Yellowhead Entree Abacus Chieftain Copper Fox Initial Capital Costs / Pre-Tax NPV8%

Average: 169%

635%

(3) (1) (2) (1) (2) (4) (2) (1) (1) (2) (4) (1) (2)

(OP & UG Scenario)

Note: Based on each company’s most recent NI43-101 Technical Reports & disclosure within most recent corporate presentations Note: Average excludes Curis (1) Base case Cu price range of $2.50 - $2.99/lb (2) Base case Cu price range of $3.00 - $3.49/lb (3) Base case Cu price range of $3.50 - $4.00/lb (4) Quaterra & Entree based on the MacArthur Project & the Ann Mason Project, respectively Source: National Bank Financial Markets

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Curis Peer Benchmarking – Initial Capital Costs

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At US $208 million, Curis has the lowest estimated initial capital cost requirement versus its base metal developers peer group

Average: $1,181MM

Note: Based on each company’s most recent NI43-101 Technical Reports & disclosure within most recent corporate presentations Note: Average excludes Curis (1) Quaterra & Entree based on the MacArthur Project & the Ann Mason Project, respectively

(OP & UG Scenario)

Source: National Bank Financial Markets $208.0 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Curis Quaterra Hana Chieftain Abacus Yellowhead Nevada Copper Augusta Entree WRN Copper Fox Initial Capital Costs (US$M)

(1) (1)

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Jobs, Taxes and Economic Activity from Florence Copper

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Development of Florence Copper

Phase 1 Development Program

• 24 well injection and recovery system
• State of the art Solvent Extraction /

Electrowinning (SX/EW) facility

• Will operate for 18 months
• Construction scheduled to begin in

early 2014

• Capital cost estimated at $35 million

Phase 2 Commercial Operations

• Commercial scale injection and recovery

well field

• Expanded SX/EW facility capable
• Permitting to be completed in 2015
• Start of full commercial operations in 2017
• Life of project is 25 years
• Estimated Initial Capital Cost is US $208 million

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• ISR is a low cost environmentally sound process of extracting minerals
• Very low comparable capital and operating costs
• Used extensively for decades around the world for recovering metals and salts
• 30% of world wide and 90% of current U.S. U3O8 production utilizes ISR

technology

• Currently 26 known U3O8 and Copper ISR projects in operation or under

development globally

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In-Situ Recovery – Well Understood, Proven Technology

Example of an operating ISR Project in Wyoming, USA

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Florence Project In-Situ Recovery Process

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Injection and recovery wells are drilled deep into the bedrock where the oxide copper mineralization is Wells are concrete encased and sealed to protect water quality Low pH solution, similar in strength to household vinegar or lemon juice, is pumped under low pressure through the injection wells to gently dissolve the copper Copper rich solution is pumped to surface through recovery wells for processing into pure copper cathode sheets Perimeter and observation wells are monitored continuously to ensure hydraulic control

• f

fluids is maintained at all times and water quality is protected

In-situ recovery well field arrangement

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Recent Drill Core Intersections – Florence Deposit

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• The high frequency of prolific fracture

patterns and densities observed during the most recent drilling program further confirm that the Florence copper oxide deposit represents the ideal conditions for in-situ recovery of copper

• The porous nature of the deposit creates

significant hydraulic communication across geologic structures and rock types throughout the oxide deposit

• Average copper grade in recent three drill

holes was 0.47% CuT; this compares favorably with calculated model grades of 0.43% CuT (see August 16, 2011 Curis Press Release)

Photos of recent PQ and HQ size core obtained from Florence Deposit

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Protecting Groundwater Quality

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Conceptual Florence Project Plant Design

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• SX/EW technology has

been in use for 40 + years worldwide

• Virtually zero air

emissions and fully enclosed process

• Production of pure copper

cathode significantly lowers treatment and transportation costs

Florence Project Solvent Extraction / Electrowinning Plant Layout

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Infrastructure, Water and Land

Florence Copper is well served by on-site infrastructure and water rights POWER

• New 500 kV powerline that traverses

western boundary of Curis property

• 125 kV powerline on site
• Low power costs

INFRASTRUCTURE

• Copper Basin Railway that connects

directly to Asarco Hayden Smelter, traverses northern boundary of property

• Hunt highway (County) adjacent to

property

• Natural gas line traverses property

WATER

• All water rights in place for commercial
• perations

LAND

• 100% owned 1,182-acre private patented
• land. 160 acre State Mineral Lease held

by Curis

• 100% owned mineral rights to Florence

Copper Deposit

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BHP Production Test Results (1998)

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BHP Copper undertook an ISCR production test at Florence in 1998. Results from the test included the following:

• Extensively fractured bedrock, confirmed that

chrysocolla mineralization and saturated nature

• f deposit make it ideal for ISCR extraction
• Confirmed ability to maintain full “hydraulic

control” of solutions in ground

• Confirmed environmental safety of full life cycle
• f operations including closure
• Demonstrated ability to protect water quality

during and after operations (14 years of subsequent water quality monitoring confirm process is safe)

Photo of existing ISCR well field at Florence Site ISCR well field arrangement at Florence Site

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Things are beginning to happen…..

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SX/EW Plant Crane Installation

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SX/EW Plant Leach Solution Tanks

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Well Casing for the Phase 1 ISR Well Field

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Site Improvements

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Curis Permitting Completed Milestones

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Government Agency Permit/Authorization

Arizona Department of State Land Mineral Lease Agreement

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Arizona Department of Water Resources Permit to Withdraw Groundwater for Mineral Extraction & Metallurgical Processing for Commercial Operations

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Pinal County Air Quality Control District Air Quality Permit for Commercial Operations

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Pinal County Change of Use Permit

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Pinal County Sewage Permit

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Pinal County C.A.P Canal Turn Out Agreement

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Arizona Department of Environmental Quality (ADEQ) Aquifer Protection Permit for Phase I

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Curis Permitting Expected Milestones

24 Government Agency Permit/ Authorization Status Expected Date

• f Completion

United States Environmental Protection Agency (EPA) Underground Injection Control Permit (UIC)

• Commercial operating permit and aquifer exemption was

granted to BHP Copper in June 1997

• Area wide aquifer exemption permit remains in effect
• All required documentation for permit amendment was

submitted by Curis in March 2011

• All technical issues have been addressed and currently in

final stage of discussions prior to issuance Final Draft for Public Comment Q4 2013 Final UIC Issued Following 45 Days Public Comment Period Government Agency Permit/ Authorization Status Expected Date

• f Completion

Arizona Department of Environmental Quality (ADEQ) Aquifer Protection Permit (APP)

• Commercial operating permit was granted to BHP Copper in

January 1997

• Significant amendment of existing APP is required prior to

start of commercial operations (Phase II)

• Majority of required documentation has been submitted to

ADEQ and is currently under review 2015 United States Environmental Protection Agency (EPA) Underground Injection Control Permit (UIC)

• Commercial operating permit and aquifer exemption was

granted to BHP Copper in June 1997

• Area wide aquifer exemption determination remains in effect
• Permit amendment, update and transfer to Curis request is

now under review 2015

Phase I Operations Phase II Operations

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Share Capitalization, Financial Position, and Analyst Coverage

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Share Structure Basic Shares Outstanding 63.1 million Fully Diluted 68.1 million HDI, Insider & Management Ownership 21% Stock Performance $CAD Symbol TSX - CUV 52 Week Low | High $0.58 | $1.29 Recent Price $0.65 Market Capitalization $41 million Cash on Hand & Committed Funds $22 million

(As at Sept 26th, 2013)

Analyst Coverage Raymond Goldie Salman Partners Inc. Steve Parsons National Bank Financial Matt O’ Keefe Mackie Research Capital Corporation

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Near Term Catalyst Opportunities

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 Receive Phase I EPA Underground Injection Control (UIC) Permit  Start of Phase I construction  Phase I plant commissioning and first copper cathode production

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Curis Management and Directors

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Russell Hallbauer (Co-Chairman)

Russell Hallbauer has more than 30 years of senior experience in the mining industry, is a Registered Professional Engineer and CEO of Taseko Mines Limited. He is also a director and former Chairman of the Mining Association of B.C.

David Copeland (Co-Chairman)

Dave Copeland is a geological engineer with thirty years’ experience in advancing mineral projects through feasibility, permitting, engineering design and initial development phases.

Michael McPhie (President and CEO)

Michael McPhie is a senior mining executive with more than 20 years

• f financial, operational and project development experience. He has

worked internationally with a number of major and junior mining companies, was formerly the CEO of the Mining Association of BC and a senior director with the Government of Canada. He holds Bachelor and Master of Science degrees and is a Qualified Environmental Professional (QEP). Michael serves on several private and public company boards and is currently Chair of the Board of the Association for Mineral Exploration of British Columbia (AMEBC).

Brian Causey (Chief Financial Officer)

Brian Causey has more than 20 years experience in financial and

• perations management, with particular emphasis on equipment and

project finance, taxation, and operational management in private and public companies. Prior to joining HDI, Mr. Causey was a partner of KPMG LLP.

Trevor Thomas (Secretary)

Trevor Thomas has practiced in the areas of corporate commercial, corporate finance, securities and mining law since 1995, both in private practice and in-house positions. Previously, Mr. Thomas served as in- house legal counsel to Placer Dome Inc.

Robert Schafer (Director)

Robert Schafer is a Certified Professional Geologist with advanced degrees in geology and mineral economics who has worked internationally with major and junior mining companies including Kinross Gold Corporation, BHP Billiton.

James Kerr (Director)

James Kerr is a CA with extensive experience in public practice, and actively involved with audit committees of mining and energy companies, providing advice on accounting and compliance issues based on a risk assessment approach.

Rene Carrier (Director)

Rene Carrier is a past Vice-President of Pacific International Securities

• Inc. and a director of a number of public companies.

Gordon Fretwell (Director)

Gordon Fretwell holds Bachelor of Commerce and Bachelor of Law

• degrees. Formerly a partner in a large law firm, he has been a self-

employed solicitor since 1991 practicing primarily in the areas of corporate and securities law.

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Florence Project Management and Senior Advisors

28 Dan Johnson BSc, MSc, PE

Vice President, Environmental & Technical Services and General Manager

Dan Johnson is a native Arizonan with a career spanning over 23 years of environmental management, hydrological engineering and project management experience in the state’s mining industry. He is a graduate of the University of Arizona, and is a registered Geologist, Hydrologist, and Professional Engineer.

Rita P. Maguire MBA, JD Executive Vice President and General Counsel

Rita Maguire is a recognized expert on western water policy. She holds three degrees from Arizona State University: a Bachelor of Science, a Masters in Business Administration, and a Juris Doctorate. Her career highlights include founding Maguire & Pearce PLLC, founding President of the Arizona Center for Public Policy, Director

• f the Arizona Department of Water Resources and Deputy Chief of Staff for

Governor Fife Symington.

Doug Nicholson BSc, PE Executive Vice President, Project Development, HDI

Doug has a career that spans more than 25 years as an executive, senior engineer and project manager. He was most recently CEO of Oracle Mining Corporation, and before that President of the Donlin Creek JV with Nova Gold Resources and Barrick.

Loren H. Locher Director, Communications and Community Affairs

• Mr. Locher brings more than 15 years of experience in public and government affairs,

project management and stakeholder outreach to Florence Copper. He oversees community and public affairs outreach and plays a key role in coordinating Florence Copper’s stakeholder relations program. Locher also leads the development and implementation of Florence Copper’s communication strategies and supplements Curis’ ongoing engagement with local and regional regulatory authorities. Before joining Florence Copper, Locher served as regional director for government affairs and stakeholder outreach at the El Paso Corporation in Houston. During this time, Locher directed government and stakeholder outreach, and focused on legislative activities, political monitoring and relationship building.

Glenn Hoffmeyer BS Met Eng Manager, Metallurgy & Mineral Processing

Glenn Hoffmeyer is a native Arizonan and graduate of Michigan Technology

• University. His careers spans over 20 years of senior level metallurgical and

mineral processing engineering in the US copper industry. He has extensive experience in hydrometallurgical operations, process development and project management focused primarily in the south-western United States.

Greg Phillips Process Superintendent

• Mr. Greg Phillips is a graduate of Eastern Arizona College and has over 14 years
• f experience in the fields of mineral processing and solvent extraction and

electrowinning (SX/EW) plant operations, and comes to Curis from the nearby Carlota Copper operation. In the new role of Process Superintendent, Greg will be responsible for the planning, implementation and supervision of Plant Process and Maintenance and reclamation activities at Florence Copper.

Ian Ream BSc Senior Hydrogeologist

Ian is a Senior Hydrogeologist with over 12 years experience in a wide variety of

• projects. Ian started his career in municipal water development and has spent the

last 5 years working as a consultant to mining projects with Schlumberger Water

• Services. At the Florence Copper project Ian is currently responsible for design,

procurement, and construction oversight for the PTF wellfield, abandonment of existing core holes, compliance well installation, potable water system development, and other projects relating to irrigation wells on the site.

John Kline BSc, MS Senior Advisor, ISCR Operations

John Kline has 25+ years of experience in in-situ recovery operations. He was formally a Chief Metallurgist and Project Manager for Magma Copper and then BHP Copper at both the San Manuel and Florence Copper in-situ recovery projects.

Rebecca Rios BA, MA Senior Advisor, Community & Government Affairs

Rebecca Rios is a lifelong Arizonan and former elected official for the Arizona Legislature and Senate. Serving in the Arizona House of Representatives (1995- 2000) and the Arizona State Senate (2004-2010), Ms. Rios is a highly regarded and influential spokesperson on environmental and economic development issues in Central Arizona.

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Hunter Dickinson and Curis

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Global Experience and Reach – More than 25 years of experience successfully discovering, building and operating mining projects

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Cautionary and Forward Looking Statements

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CAUTION REGARDING FORWARD-LOOKING INFORMATION This presentation includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, test results, exploitation activities and events or developments that the Company expects to occur, are forward-looking

• statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such

statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward- looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance

• r achievements to be materially different from those expressed or implied by such forward-looking statements. These include but are not limited to uncertainties and

costs related to the Company’s exploration and development activities, such as those associated with continuity of mineralization, or determining whether mineral resources or reserves exist on a property; uncertainties related to the accuracy of our estimates of mineral reserves, mineral resources; expected production rates, the timing of expected production, the geotechnical or hydrological nature of mineral deposits, and diminishing quantities or grades of mineral resources; uncertainties related to the ability to obtain necessary environmental, land use, and other licenses, permits, approvals, surface rights and title for development projects; uncertainties and delays related to judicial or regulatory proceedings; changes in, and the effects of, laws, regulations and government policies affecting our exploration, development and mining operations, particularly laws, regulations and policies in jurisdictions in which our projects are located, relating to environmental protection and associated compliance costs, land use, effective future tax rates, the protection of the health and safety of mine workers, and mineral rights ownership; changes in general economic, market or business conditions, the financial markets and in the demand and market price for copper, gold, and other minerals and commodities, such as diesel fuel, steel, concrete, electricity and other forms of energy, mining equipment, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar and Canadian dollar, and the continued availability of capital and financing on terms acceptable to the Company; the ability of the Company to achieve fulfillment of all conditions for drawdown under its loan agreement with RK Mine Finance Trust I; the risk of inadequate insurance or inability to obtain insurance to cover all risks associated with the exploration, development or mining of the Company’s projects; the risk of loss of key employees; changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates; environmental issues and liabilities associated with mining including processing ore; and labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mineral projects or mines, or environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in our mines. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, a more detailed description of the assumptions used to develop the forward-looking statements and the risk factors that may cause actual results to differ materially from forward-looking statements, investors should review the Company's continuous disclosure filings, copies of which are available at www.sedar.com. CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING RESERVE ESTIMATES The mineral reserves disclosed in this presentation have been estimated in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securities regulatory authorities. The Company is not subject to the reporting requirements of section 13(a) of section 15(d) of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”). However, the Company’s U.S. investors are cautioned that SEC Industry Guide 7 under the Exchange Act, as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and probable reserves used in NI 43-101 differ from the definitions in the SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, mineral reserve estimates contained in this news release may not qualify as “reserves” under SEC standards. In addition, disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC only permits Exchange Act reporting companies to report reserves in ounces, and requires reporting of mineralization that does not qualify as reserves as in place tonnage and grade without reference to unit measures.

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Contact Information Florence Copper Curis Resources

Head Office

15th Floor 1040 W. Georgia St. Vancouver, BC Canada V6E 4H1

Investor Services

Susie Bell susiebell@hdimining.com TF: 800.667.2114 Ph: 604.684.6365

Florence Office

1575 W. Hunt Hwy. Florence, AZ 85132 Ph: 520.374.3984 Fx: 520.374.3999

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