Marimaca Copper Advances Towards Construction Decision & Regional Exploration

• The Marimaca Oxide Deposit (MOD) permitting is on track for Q3 2024 submission
• Marimaca Copper's Definitive Feasibility Study (DFS) optimization is nearing completion, due Q4 2024
• The company is considering immediate progression to detailed engineering post-DFS
• Extensive metallurgical testing is underway to optimize processing parameters
• Regional exploration is initiated at Sierra de Medina and Mercedes satellite targets

Marimaca Copper Corp. is a Canadian-based mining company focused on developing its flagship Marimaca Oxide Deposit (MOD) in northern Chile. The company is rapidly advancing the MOD towards a construction decision, leveraging its strategic location, favorable metallurgy, and potential for low-cost operations. With a strong development pipeline and ongoing regional exploration, Marimaca Copper is positioning itself as a key player in the global copper market at a time of growing demand and constrained supply.

MOD Permitting & DFS Optimization

Permitting Progress

Marimaca Copper has made significant strides in advancing the permitting process for the MOD. The company reports that permit engineering, led by Ausenco Chile, is progressing according to plan. This crucial workstream is being informed by final baseline studies and an updated project layout, which has now been frozen following successful condemnation drilling completed in January 2024.

The company remains on track to submit its project permitting application in early Q3 2024, a critical milestone in the development timeline. This progress demonstrates Marimaca's commitment to adhering to regulatory requirements and maintaining a transparent relationship with local authorities and stakeholders.

DFS Optimization Nearing Completion

In parallel with the permitting process, Marimaca Copper is in the final stages of optimizing its development strategy for the Definitive Feasibility Study (DFS). This workstream, also led by Ausenco, is focused on refining the project's capital intensity and mine planning. Notably, the company is targeting a scale-up from the 2020 Preliminary Economic Assessment (PEA), potentially enhancing the project's economic profile.

The DFS remains on schedule for completion in late Q4 2024, providing investors with a comprehensive technical and economic evaluation of the MOD. This study will serve as a foundation for future investment decisions and project financing discussions.

Strategic Considerations for Accelerated Development

In a move that underscores the company's confidence in the MOD's potential, Marimaca Copper is actively considering strategic options to progress immediately into detailed engineering following the completion of the DFS in 2025. This approach could significantly compress the project timeline, potentially accelerating the path to production.

Investors should note that the company's 2024 work plan, encompassing both permitting and DFS engineering activities, is fully funded. This financial stability provides a solid foundation for Marimaca to execute its development strategy without immediate capital constraints.

Metallurgical Advancements

Geo-Metallurgical Model Refinement

A critical component of the DFS is the ongoing development of a comprehensive geo-metallurgical model. This model, now in its final phases, builds upon the acid consumption and operability optimizations identified in the Geomet 6 program announced in November 2023.

Extensive Column Testing Program

Marimaca Copper has undertaken an extensive column testing program to refine and optimize processing parameters for different ore types within the MOD. To date, the company has completed four large-scale column tests, each utilizing 1,400 kg of green oxide material. These tests have generated raffinate for use in the final column test program, which includes:

1. Four 4m height columns to determine the optimal crush size for green oxide mineral zones
2. Four 4m height columns to establish the optimal irrigation rate for green oxide mineral zones
3. Four 4m height columns to confirm optimal parameters for green oxide mineral zones
4. Fourteen 1m height columns to confirm optimal leaching parameters for mixed and enriched mineral zones

This comprehensive testing program demonstrates Marimaca's commitment to optimizing the MOD's processing flowsheet, potentially leading to improved recoveries, reduced acid consumption, and enhanced overall project economics.

Regional Exploration: Expanding the Resource Base

Sierra de Medina Property Block

In addition to advancing the MOD, Marimaca Copper has initiated regional exploration activities at the Sierra de Medina property block, located approximately 25km from the main deposit. This exploration program includes:

1. UAV topography surveys
2. Resistivity CS-NSAMT surveys
3. High-resolution mag-drone surveys at key conceptual targets

The geophysical data collected from these surveys will be integrated into the company's geological models and used to inform potential future discovery drilling campaigns. This systematic approach to regional exploration highlights Marimaca's strategy of building a pipeline of prospective targets beyond the MOD.

Mercedes Satellite Target Exploration

Closer to the MOD, Marimaca has commenced initial exploration trenching and surface sampling at the Mercedes East satellite target, situated approximately 1km north of the main deposit. This work aims to better define the mineralization potential of the area and could lead to resource expansion opportunities in close proximity to the planned mining operations.

Hayden Locke, President and CEO of Marimaca Copper, expressed enthusiasm about the company's progress, stating:

"The Marimaca Team, in collaboration with Ausenco and Mitsubishi, is moving rapidly toward our 2024 development milestones at the MOD. We continued to progress the MOD toward construction amidst a very constructive macro back-drop for copper. It is an exciting time to be de-risking what is shaping up to be a very high-quality copper development project in the MOD."

Locke's comments highlight the company's strategic positioning in the copper market, which is experiencing strong fundamentals driven by increasing demand from electrification and renewable energy technologies, coupled with supply constraints.

The CEO also emphasized the company's forward-thinking approach, noting:

"The Company is currently strategizing to ensure progression of the MOD directly into FEED (front end engineering design) in 2025, immediately following the completion of the DFS, which would keep us on track for a targeted construction decision in late 2025."

This strategic vision demonstrates Marimaca's commitment to maintaining project momentum and potentially accelerating the timeline to production, a factor that could be particularly attractive to investors seeking near-term copper exposure.

Exploration Upside & Long-term Growth Potential

While the MOD remains the primary focus, Marimaca Copper's exploration activities at Sierra de Medina and Mercedes underscore the company's commitment to long-term growth. Sergio Rivera, the company's exploration lead, has initiated geophysical work to vector in on key targets at Sierra de Medina, potentially opening up new avenues for resource expansion.

Locke commented on the exploration potential, stating:

"We are excited about the potential at Sierra de Medina and the implications for Marimaca's exploration pipeline beyond the MOD and its core satellite targets like Mercedes."

This dual-track approach of advancing the MOD while simultaneously exploring regional targets positions Marimaca Copper for sustainable growth and potentially extends the company's production profile well into the future.

Project Infrastructure & Site Layout

The press release includes a site layout map (Figure 1) that illustrates the planned infrastructure for the MOD. Key features of the layout include:

1. Open pit location
2. Waste rock facilities
3. Leach pad areas
4. Process plant location
5. Access roads and other supporting infrastructure

The finalization of this layout, confirmed by condemnation drilling, represents a significant milestone in the project's development. It provides a clear picture of the MOD's footprint and operational configuration, which will be crucial for both permitting and detailed engineering phases.

Conclusion

Investor Considerations & Outlook

For investors considering Marimaca Copper, several key factors emerge from this project update:

1. Development Progress: The company is making steady progress towards permitting and completing the DFS for the MOD, with clear milestones set for 2024 and 2025.
2. Optimization Potential: Ongoing metallurgical testing and DFS optimization work may lead to improved project economics, potentially enhancing the MOD's attractiveness as an investment opportunity.
3. Accelerated Timeline: Marimaca's strategic consideration to move directly into detailed engineering post-DFS signals confidence in the project and could lead to a faster path to production.
4. Exploration Upside: Regional exploration activities at Sierra de Medina and Mercedes provide potential for resource growth and long-term value creation beyond the initial MOD development.
5. Strong Copper Market: The company is advancing its project in a favorable macroeconomic environment for copper, with growing demand driven by green energy transitions and electrification trends.
6. Financial Position: With the 2024 work plan fully funded, Marimaca is well-positioned to execute its near-term objectives without immediate financing concerns.
7. Experienced Management: The company's leadership team demonstrates a clear vision for project development and a commitment to creating shareholder value through strategic planning and execution.

Key Takeaways

Marimaca Copper Corp. presents an compelling investment opportunity in the copper sector, offering exposure to a advanced-stage development project with significant optimization potential and regional exploration upside. The company's systematic approach to advancing the MOD, coupled with its strategic vision for accelerated development, positions it favorably in a strong copper market.

As the company progresses towards key milestones in 2024 and 2025, including permitting submission, DFS completion, and a potential construction decision, investors should closely monitor Marimaca's execution against its stated objectives. The successful delivery of these milestones could serve as significant catalysts for value creation and may attract increased attention from both institutional investors and potential strategic partners in the mining industry.

While development-stage mining investments carry inherent risks, Marimaca Copper's strong management team, clear development strategy, and promising project fundamentals make it a noteworthy candidate for investors seeking exposure to the copper market with a near-term production horizon. As always, potential investors should conduct their own due diligence and consider their risk tolerance when evaluating Marimaca Copper as a potential addition to their portfolios.