Marimaca Copper: Chile's Advanced Development-Stage Copper Investment

• Marimaca's Oxide Deposit (MOD) delivers US$1.1bn NPV with 39% IRR and industry-leading US$11,700/tonne capital intensity
• Key RCA permit secured in November 2025, fast-tracking development timeline
• Premium Antofagasta region position with 25km proximity to Port of Mejillones and established infrastructure
• 30,000m drilling program at Pampa Medina reveals significant sulphide mineralization extending deposit life
• Recycled seawater supply and renewable power access supporting ESG-compliant operations

As copper demand surges driven by electrification and renewable energy infrastructure, investors are scrutinizing development-stage projects for the next generation of producers. Marimaca Copper Corp (TSX: MARI, ASX: MC2) emerges as a compelling proposition, combining a near-production oxide deposit with substantial exploration upside in Chile's premier copper district.

The company's recent environmental approval milestone and completed definitive feasibility study position it among the most advanced development projects globally, while significant capital intensity advantages and strategic location reduce traditional mining execution risks. With global copper supply constraints expected to intensify through 2030, development projects offering both near-term production and long-term growth potential command increasing investor attention.

Marimaca's positioning in the Antofagasta region places it within Chile's established copper corridor, benefiting from decades of mining infrastructure development and operational expertise. This strategic advantage, combined with the company's systematic approach to project de-risking, creates an investment profile that balances near-term execution visibility with substantial upside potential.

Marimaca§§§§§ Overview

Marimaca Copper operates from Chile's Antofagasta Region, home to some of the world's largest copper operations including Chuquicamata and Spence. The company's flagship Marimaca Oxide Deposit sits within this established mining corridor, benefiting from proximity to critical infrastructure including power, water, and transportation networks that typically require years and significant capital to establish in greenfield locations.

Led by CEO Hayden Locke, who brings extensive mining finance experience from Papillon Resources and Emmerson Plc, the management team combines international capital markets expertise with deep Chilean operational knowledge. Board member Giancarlo Bruno's background as former CEO of Mantos Copper and VP Chile for Capstone Copper provides crucial local mining experience, while Non-Executive Chairman Michael Haworth contributes nearly 30 years of resources advisory and investment experience as co-founder of Greenstone Resources.

The company's asset portfolio extends beyond the MOD to include the promising Pampa Medina and Madrugador properties, located approximately 25km from planned processing infrastructure. This strategic positioning enables a potential "hub and spoke" development model that could significantly expand production capacity and mine life while leveraging existing capital investments. The total land package spans over 20,000 hectares in the Sierra de Medina region, providing substantial exploration potential across multiple deposit types.

Key Development: MOD Feasibility Study Results

Marimaca's August 2025 definitive feasibility study demonstrates exceptional project economics that rank among the industry's most attractive development opportunities. The study confirms a 13-year mine life producing 50,000 tonnes per annum of copper cathode with a remarkably low 0.8:1 strip ratio, significantly below industry averages that typically range from 2:1 to 4:1 for comparable oxide deposits.

Financial metrics underscore the project's robustness, with a post-tax NPV of US$1.1 billion at current copper prices and a 39% internal rate of return. Perhaps most compelling is the initial capital requirement of just US$587 million, translating to industry-leading capital intensity of US$11,700 per tonne of annual copper production capacity. This positions MOD among the lowest capital cost copper development projects globally, comparing favorably to peer projects requiring US$15,000 to US$20,000+ per tonne of capacity.

The study's conservative assumptions provide additional confidence, utilizing a long-term copper price of US$4.30/lb while maintaining attractive economics across various price scenarios. Sensitivity analysis demonstrates project viability even with 20% cost increases or 10% price decreases, with the base case generating exceptional EBITDA margins of 58% during steady-state operations years two through eight.

Strategic Significance: Environmental & Permitting Progress

The November 2025 receipt of Chile's Resolución de Calificación Ambiental (RCA) represents a critical de-risking milestone that distinguishes Marimaca from peer development projects still navigating complex environmental approval processes. This comprehensive environmental approval followed rigorous preparation including multi-year baseline studies, voluntary stakeholder engagement sessions, and extensive technical documentation submitted through Chile's established DIA (Declaración de Impacto Ambiental) framework.

‍CEO Hayden Locke, emphasizing the milestone's importance for project advancement stated:

"This RCA approval marks another strategic step closer to being construction-ready at the MOD, significantly de-risking our development timeline while demonstrating our commitment to environmental stewardship."

The company's proactive environmental approach addresses key sustainability concerns through innovative solutions including recycled seawater supply from the Bay of Mejillones, certified renewable electricity access, and minimal community land overlap in Chile's coastal Atacama Desert region. These commitments align with increasingly stringent ESG requirements from institutional investors while supporting the company's target of achieving first-quartile emissions intensity among global copper operations.

Exploration & Engineering Advancement

Marimaca's 2026 operational focus encompasses two critical workstreams: advancing MOD toward construction readiness while expanding resource potential through aggressive exploration campaigns. The company has initiated detailed engineering and procurement activities with execution partner Ausenco, while progressing sectorial permit applications according to the established master schedule that targets final investment decision within 12 to 18 months.

Simultaneously, the 30,000-meter Phase II drilling program at Pampa Medina continues delivering encouraging results that could transform the company's long-term production profile. Recent intercepts include SMRD-13's 26 meters grading 4.1% copper from 580 meters depth, with 6 meters averaging an exceptional 12.0% copper, demonstrating sulphide mineralization quality that rivals world-class porphyry deposits. Additional results from SMRD-20 revealed 198 meters of 0.7% copper from 460 meters depth, confirming mineralization continuity across the target area.

Jose Antonio Merino, Managing Director Chile and CFO, brings 15 years of natural resources M&A experience from SQM to oversee project financing activities that have commenced amid favorable market conditions. The company benefits from strong institutional interest in Chilean mining assets, supported by the country's stable regulatory environment, established mining infrastructure, and proven track record of successful project development and operations.

District Scale Vision: Pampa Medina Breakthrough

The emerging significance of Pampa Medina extends beyond traditional satellite deposit potential, with drilling results suggesting a substantial sulphide system that could rival the MOD in scale and grade. Cross-section analysis reveals extensive mineralization across multiple geological horizons, with both oxide and sulphide zones providing optionality for different processing approaches and production scheduling scenarios.

Recent geological interpretations indicate sediment-hosted copper mineralization potentially unique to Chile at this scale, with structural controls and alteration patterns suggesting significant expansion potential beyond current drill-defined boundaries. The 300-meter step-out holes continue confirming sulphide mineralization remains open in multiple directions, supporting resource estimates that could exceed initial exploration targets by substantial margins.

Strategic positioning 25km from planned MOD infrastructure creates compelling synergy potential through shared processing facilities, water supply systems, and transportation corridors. This hub-and-spoke development model could enable capital-efficient expansion that leverages initial investments while providing operational flexibility to optimize production from multiple deposit types across varying market conditions.

Financial Profile

Marimaca's financial structure supports development execution while providing exposure to copper price upside through leveraged project economics. With US$78.7 million cash as of September 2025 and zero debt, the company maintains financial flexibility to advance engineering activities and early construction preparations while progressing comprehensive project financing arrangements.

The company's market capitalization of C$1.4 billion reflects investor recognition of the MOD's exceptional economics while providing upside potential from Pampa Medina resource expansion and district-scale development opportunities. Significant institutional shareholding through Greenstone Resources (21.6%), Assore (18.9%), and Ithaki Limited (13.6%) demonstrates professional investor confidence in management execution capabilities and project fundamentals.

Comprehensive analyst coverage from leading Canadian investment banks including BMO Capital Markets, RBC Capital Markets, and Canaccord provides ongoing market insight and liquidity support. This institutional framework supports efficient capital market access for project financing while maintaining transparent communication with the investment community throughout development milestones and operational updates.

Risk Considerations

While Marimaca presents compelling investment characteristics, potential risks require careful evaluation including copper price volatility, construction execution challenges, and permitting delays that could impact development timelines. The company addresses these concerns through conservative feasibility study assumptions, experienced management team selection, and proactive regulatory engagement that has already secured critical environmental approvals.

Metallurgical risk mitigation involves extensive column testing across seven phases covering materials from the full deposit extent, addressing all key operating parameters including agglomeration characteristics, irrigation rates, acid consumption levels, and recovery optimization. This comprehensive approach underpins geometallurgical models that support DFS recovery and processing cost assumptions with high confidence levels.

Geopolitical considerations remain favorable given Chile's established mining legal framework, stable democratic institutions, and consistent policy support for responsible mining development. The Antofagasta region's mining-focused economy provides additional political stability through local employment creation and economic contribution that aligns government and community interests with successful project development.

The Investment Thesis for Marimaca Copper

• Environmental approvals and completed DFS enable rapid advancement to construction decision within 12-18 months
• Industry-leading US$11,700/tonne capital intensity provides superior returns compared to peer projects requiring US$15,000+ per tonne
• Established utilities, 25km port proximity, and skilled workforce availability reduce execution uncertainties typical in greenfield developments
• Pampa Medina sulphide discovery could double+ production capacity using existing processing infrastructure
• Recycled seawater supply and renewable power access align with institutional ESG requirements while targeting first-quartile emissions intensity
• Antofagasta region positioning provides political stability, established mining ecosystem, and access to global supply chains

Marimaca Copper represents a rare combination of near-term production visibility with substantial long-term growth potential in the critical copper sector. The company's systematic de-risking through environmental approvals, completed feasibility studies, and advancing engineering positions it advantageously among development-stage copper investments while global supply constraints intensify.

The MOD project's exceptional economics, demonstrated through conservative feasibility assumptions and robust sensitivity analysis, provide compelling risk-adjusted returns that compare favorably to established producers trading at significant premiums to development projects. Capital intensity leadership and infrastructure access significantly reduce execution risks that have challenged other development projects in recent years while supporting accelerated development timelines.

Looking forward, Pampa Medina's emerging sulphide potential offers optionality that could transform Marimaca from a mid-tier producer into a significant copper district over the coming decade. The company's disciplined approach to exploration and development, combined with experienced management, strategic institutional partnerships, and favorable market positioning, supports sustainable value creation for long-term investors seeking copper sector exposure through the energy transition.

TL;DR

Marimaca Copper offers investors exposure to a near-production Chilean copper project with exceptional economics (39% IRR, US$1.1bn NPV) and significant exploration upside. Environmental approvals secured, definitive feasibility complete, and district-scale potential through Pampa Medina sulphide discovery position the company among premier development-stage copper investments.

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