Marimaca Copper: Chile's Tier-1 Development Play

• Marimaca Copper has completed its Definitive Feasibility Study for the MOD project in Chile's Antofagasta Region, delivering a post-tax NPV8% of US$1.1 billion with 39% IRR and industry-leading capital intensity of US$11,700 per tonne of copper production capacity.
• The company received key environmental approval (RCA) in November 2025 and now advances sectorial permits while progressing project financing discussions for the US$587 million initial capital requirement.
• Proven and Probable reserves total 178.6 million tonnes grading 0.42% copper for 748,000 tonnes contained metal, supporting 13-year mine life with steady-state production of 50,000 tonnes per annum copper cathode.
• The project targets second-quartile operating costs at US$1.69/lb C1 and US$2.09/lb AISC, positioning MOD favorably on the global cost curve amid copper market tightness driven by electrification and supply constraints.
• Ongoing drilling at Pampa Medina, located 25 kilometers from planned MOD infrastructure, is delineating district-scale oxide and sulphide potential with recent intercepts including 26 meters at 4.1% copper and 198 meters at 0.7% copper.

Marimaca Copper Corp. (TSX: MARI, ASX: MC2) has positioned itself as one of the most compelling copper development stories globally following completion of its Definitive Feasibility Study and receipt of key environmental approvals for the Marimaca Oxide Deposit in Chile's Antofagasta Region. With copper markets entering 2026 amid supply tightness and robust demand from electrification and data center buildout, the company's advanced-stage project offers investors exposure to production within a favorable timeframe.

The MOD project demonstrates exceptional capital efficiency, positioning it among the lowest-cost greenfield developments globally. Simultaneously, ongoing exploration at Pampa Medina is delineating what appears to be a district-scale copper system with both oxide and sulphide potential, creating a dual pathway for value creation through near-term development and long-term resource growth.

Company Overview & Strategic Position

Marimaca Copper operates in Chile's prolific Coastal Copper Belt, approximately 40 kilometers from Antofagasta and 25 kilometers from the Port of Mejillones. The company controls a strategic land position encompassing the advanced MOD project, the emerging Pampa Medina discovery, and multiple satellite exploration targets including Mercedes, Robles, Cindy, Tarso, and Sierra. This district-scale footprint positions Marimaca within an established mining jurisdiction that hosts major operations including Mantos Blancos, Lomas Bayas, and Spence.

The company's technical team brings deep regional expertise, led by Vice President of Exploration Sergio Rivera, credited with the original Marimaca discovery and multiple large copper finds across a 30-year career. Management combines Chilean operational experience with international capital markets knowledge. The shareholder base reflects institutional confidence, with Greenstone Resources (21.6%), Assore (18.9%), Ithaki Limited (13.6%), and Mitsubishi Corporation (3.9%) holding strategic positions as of September 2025.

Marimaca's September 2025 balance sheet showed US$78.7 million in cash with zero debt, providing runway for ongoing activities while positioning the company to advance financing discussions. The current market capitalization of C$1.28 billion reflects investor recognition of the project's technical merits and favorable jurisdiction.

MOD Project Economics & Technical Fundamentals

The August 2025 DFS for the MOD delivered robust economics that place the project among the most attractive undeveloped copper assets globally. At the three-month average COMEX copper price of US$5.05 per pound utilized in the study, the project generates a post-tax NPV8% of US$1.1 billion with a 39% internal rate of return and 2.2-year payback period. Sensitivity analysis demonstrates resilience, with the project maintaining a 31% IRR and US$709 million NPV8% at a more conservative US$4.30 per pound copper price.

Hayden Locke, CEO and President of Marimaca Copper stated:

"The 2025 DFS delivers a compelling investment proposition with industry-leading capital intensity and robust returns across a range of copper price scenarios. Combined with our strong balance sheet and strategic shareholder base, we are well-positioned to advance toward a construction decision."

The project's standout feature is capital efficiency. Initial pre-production capital expenditure totals US$587 million, translating to US$11,700 per tonne of annual copper production capacity. This metric positions MOD favorably against North and South American peers, with only one comparable project demonstrating lower capital intensity among tracked projects. The efficient capital structure derives from proximity to existing infrastructure eliminating costly greenfield development, a low 0.8:1 life-of-mine strip ratio reducing mining capital requirements, and conventional heap leach/SX-EW processing that avoids concentration facility complexity.

Operating cost projections place the MOD in the second quartile of the global cost curve. The DFS estimates C1 cash costs of US$1.69 per pound and all-in sustaining costs of US$2.09 per pound for the steady-state period covering years 2-10. The 13-year mine plan targets production of 50,000 tonnes per annum of copper cathode at steady state, with first-decade average production of 48,000 tonnes including the ramp-up year.

Resource Base & Reserve Conversion

The August 2025 Mineral Resource Estimate established total Measured and Indicated resources of 213.5 million tonnes grading 0.40% total copper for 854,000 tonnes of contained metal, with an additional 21.2 million tonnes grading 0.29% copper in the Inferred category. The resource demonstrates strong geological confidence, with 93% of total tonnage classified in the Measured and Indicated categories, a critical factor for development-stage projects as it reduces technical risk.

Resource-to-reserve conversion achieved an exceptional 88% rate, translating the M&I resource base into Proven and Probable reserves totaling 178.6 million tonnes at 0.42% copper for 748,000 tonnes of contained copper. The reserve estimate comprises 94.3 million tonnes in the Proven category (0.46% copper, 433,000 tonnes contained) and 84.3 million tonnes Probable (0.37% copper, 314,000 tonnes contained). This high conversion rate reflects the deposit's favorable geometry, metallurgical characteristics, and limited geological complexity.

The resource estimate incorporates comprehensive metallurgical understanding developed through seven phases of column leach testing conducted since 2016. Testing addressed all key operating parameters including agglomeration characteristics, crush size optimization, irrigation rates, acid consumption across different mineral domains, and recovery performance with both fresh and seawater. The Phase 7 metallurgical program completed in 2024 utilized 4-meter column heights matching the planned operational heap leach configuration, providing high confidence in projected recoveries that average 72% across the deposit.

Infrastructure Advantages & ESG Positioning

Marimaca's location in the established Antofagasta mining district provides access to critical infrastructure that typically represents major capital expenditure for greenfield projects. The site sits at 1,100 meters elevation, eliminating altitude-related operating challenges. A 32-kilometer pipeline from the Bay of Mejillones will supply recycled seawater, avoiding impacts on freshwater resources while leveraging existing permitted intake infrastructure. Certified renewable electricity is available via a 10-kilometer connection to the regional grid.

The project's proximity to Antofagasta enables a commute-based workforce model rather than requiring remote camp construction and operation. This approach reduces both capital expenditure and ongoing costs while providing access to the region's skilled mining labor force. Equipment and consumables for heap leach SX-EW operations are readily available from established supply chains serving neighboring operations.

From an environmental and social governance perspective, the project targets industry-leading positioning. Heap leach processing generates approximately 38% lower carbon emissions than conventional flotation and smelting routes. The use of recycled seawater and renewable power further reduces environmental footprint. The December 2024 Declaration of Environmental Impact submission received formal approval in November 2025, marking completion of the primary environmental permitting process.

Pampa Medina: District-Scale Growth Potential

While the MOD advances toward a construction decision, drilling at Pampa Medina, located 25 kilometers from the planned MOD processing infrastructure, is delineating what appears to be a sediment-hosted copper system of significant scale. The 30,000-meter drilling program currently underway targets both oxide mineralization that could provide near-term production growth and sulphide resources representing longer-term value.

Recent drilling results demonstrate the system's extent and grade potential. Hole SMRD-13 intersected 26 meters grading 4.1% copper from 580 meters depth, including 6 meters at 12.0% copper in high-grade sulphide mineralization. Hole SMRD-20 returned 198 meters of 0.7% copper from 460 meters depth, including 38 meters at 1.4% copper. Historical hole SMR-01 encountered 102 meters at 1.2% copper from 250 meters, with 18 meters grading 5.1% copper.

The oxide component at Pampa Medina presents potential for hub-and-spoke development utilizing the MOD processing infrastructure. Hole SMRD-22 intersected 102 meters grading 0.92% copper from surface, including 18 meters at 2.05% copper in near-surface oxide material. The combination of near-surface oxide resources and deeper sulphide mineralization creates optionality for phased development approaches that could extend production life and scale while leveraging existing capital investment at MOD.

Market Context: Copper's Structural Tightness

Marimaca's development timeline aligns with copper market fundamentals characterized by supply constraints and accelerating demand from electrification themes. Copper market fundamentals entering 2026 reflect supply constraints and accelerating demand from electrification themes. The directional trend shows strengthening market conditions as supply-side constraints persist while demand from renewable energy infrastructure, electric vehicles, and data center construction continues to grow.

Demand-side drivers remain robust entering 2026. Grid infrastructure buildout to support renewable energy integration continues across developed and emerging economies. Electric vehicle supply chains require significantly more copper than internal combustion vehicles. Data center construction, driven by artificial intelligence and cloud computing expansion, represents an incremental demand vector not fully reflected in historical consumption patterns.

On the supply side, the World Bank's metals outlook flags tightening conditions through 2026-2027 as modest demand growth encounters constrained new supply. Lead times for greenfield copper projects typically span 10-15 years from discovery to production, creating pipeline deficits. This backdrop supports the strategic value of advanced-stage, low-execution-risk projects in established mining jurisdictions.

Development Pathway & Catalysts

Marimaca's near-term workplan centers on advancing the MOD toward a Final Investment Decision while continuing to de-risk and expand the resource base through systematic exploration. The receipt of environmental approval in November 2025 completed the primary permitting milestone, with the company now progressing sectorial permits covering specific construction and operational activities.

Detailed engineering and design work is underway to support procurement of long-lead equipment items and finalize construction schedules. The company has initiated project financing discussions, with the capital structure likely to comprise a combination of debt and equity given the project's strong economics and relatively modest US$587 million initial capital requirement.

On the exploration front, the Pampa Medina drilling program continues through 2026 with objectives including defining the oxide resource footprint, testing sulphide extensions at depth and along strike, and advancing metallurgical understanding. Results from this work will inform resource estimation and potential development pathways for integrating Pampa Medina production with MOD infrastructure.

The Investment Thesis for Marimaca Copper

• Development-stage exposure to copper supply tightness via advanced-stage project in tier-1 jurisdiction with completed DFS and environmental permits.
• Capital efficiency leadership at US$11,700/t provides superior economics and return on invested capital versus peer projects.
• Production timeline aligns with structural demand growth from electrification while addressing current market tightness.
• Resource expansion potential at Pampa Medina creates district-scale optionality beyond initial MOD development.
• Balance sheet strength with US$78.7m cash and zero debt supports development financing from position of financial flexibility.
• Cost positioning in second quartile of global curve provides margin resilience across copper price scenarios.

Marimaca Copper has systematically advanced the MOD project through technical studies, environmental approvals, and resource definition to establish one of the most attractive undeveloped copper assets globally. The combination of industry-leading capital intensity, robust project economics, and location in an established mining jurisdiction addresses many of the execution risks that plague greenfield developments. The 88% resource-to-reserve conversion and comprehensive metallurgical understanding reduce technical uncertainty, while proximity to infrastructure lowers capital requirements and accelerates development timelines.

For investors seeking copper exposure, Marimaca occupies a distinct niche between exploration-stage companies where discovery risk dominates and established producers where growth options may be limited. The development-stage profile offers participation in production growth within a 2-3 year timeframe while maintaining exploration upside through the Pampa Medina program.

The project's competitive positioning becomes particularly relevant if copper markets remain tight through 2026-2027 as supply-side constraints persist. New production from projects like MOD becomes incrementally valuable in undersupplied markets, supporting premium valuations for advanced-stage developers. The exploration value embedded in Pampa Medina and satellite targets provides optionality that extends beyond the initial mine plan, creating a multi-year value creation pathway.

TL;DR

Marimaca Copper advances Chile's MOD project with completed DFS showing 39% IRR, industry-leading US$11,700/t capital intensity, and November 2025 environmental approval. The 178.6Mt reserve base (748kt contained copper) supports 13-year, 50ktpa production with US$1.69/lb C1 costs. Pampa Medina drilling 25km away is delineating district-scale oxide and sulphide potential. Strong balance sheet (US$78.7m cash, zero debt) supports development financing. Project combines near-term production timeline with exploration upside in tier-1 jurisdiction amid copper market tightness.

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