Santa Cruz, Arizona

Ivanhoe Electric has a compelling opportunity to build a modern, low carbon footprint, sustainable, copper producing industrial complex in the United States.
Santa Cruz, Arizona
Location
Arizona, USA
Investment vehicle
Ivanhoe Electric
Ownership
Option to 100%1
Metal
Copper
Opportunity
Ivanhoe Electric believes that Santa Cruz is currently the second largest undeveloped copper deposit, by tonnes contained, in the lower 48 states, with considerable potential to significantly expand the resources

1. Ivanhoe Electric holds an option on the purchase of the mineral title while holding an exclusive agreement on surface access.

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Santa Cruz is located in Arizona, a prolific mining State, where over 35 million tonnes of copper have been produced since 1980 (~65% of total US production).

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The Santa Cruz Project has Indicated Resources of 2.5 Mt of contained copper with an average grade of 0.93%, plus Inferred Resources of 2.3 Mt of contained copper with an average grade of 0.91%.

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Near-term focus on discovery of shallow high-grade mineralization based on revised geological model.

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Deployment of Typhoon™ exploration search technology to help identify new mineralized targets, allowing Ivanhoe Electric to more efficiently explore with targeted diamond drilling.

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Option to utilize VRB technology and integrate with renewable energy power sources, like solar, to develop a modern, low footprint, sustainable copper producing industrial complex.

December 2021 Resource Estimate1

Domain Resource
Category
Kilotonnes
kt
Total
Cu %
Total
Soluble
Cu %
Acid
Soluble
Cu % 2
Cyanide
Soluble
Cu %
Total
Cu kt
Total
Soluble
Cu kt
Acid
Soluble
Cu kt
Cyanide
Soluble
Cu kt
Exotic Indicated 6,989 1.05 0.80 0.73 0.07 73 56 51 5
Inferred 11,680 1.28 1.00 0.98 0.02 149 118 115 3
Oxide Indicated 52,990 1.34 1.27 0.98 0.29 708 669 518 151
Inferred 126,138 1.06 1.00 0.71 0.29 1,336 1,253 892 361
Chalcocite
Enriched
Indicated 29,145 1.25 1.13 0.40 0.73 364 328 115 213
Inferred 14,838 1.36 1.28 0.52 0.76 202 191 78 113
Primary Indicated 184,877 0.75 n/a n/a n/a 1,394 n/a n/a n/a
Inferred 96,098 0.59 n/a n/a n/a 568 n/a n/a n/a
Total
  Indicated 274,000 0.93 0.38 0.25 0.13 2,539 1,053 684 369
Inferred 248,754 0.91 0.63 0.44 0.19 2,255 1,563 1,085 478
  1. The Mineral Resources in this estimate were independently prepared by Nordmin, and were prepared and classified in accordance with the definitions for Mineral Resources in S-K 1300. The Mineral Resources have an effective date of December 8, 2021. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. No environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues are known that may affect this estimate of Mineral Resources. Verification included multiple site visits to inspect drilling, logging, density measurement procedures and sampling procedures, and a review of the control sample results used to assess laboratory assay quality. In addition, a random selection of the drill hole database results was compared with original records. The Mineral Resources in this estimate for the Santa Cruz deposit used Datamine Studio RMTM software to create the block models. Underground Mineral Resources are reported at a CoG of 0.39% Total Cu, which is based upon a Cu price of US$3.70/lb and a Cu recovery factor of 80%. SG was applied using weighted averages by lithology. All figures are rounded to reflect the relative accuracy of the estimates, and totals may not add correctly. Excludes unclassified mineralization located along edges of the Santa Cruz deposit where drill density is poor. Report from within a mineralization envelope accounting for mineral continuity.
     
  2. Acid soluble Cu and cyanide soluble Cu are not reported for the Primary Domain.

The Largest Known Deposit in the Cluster

Chargeability Anomalies Identified by Initial Typhoon™ Line

Initial Typhoon™ Line Imaged the Regional Aquifer

2021-2022 Drill Program

Drilling during 2021-2022 is ongoing and included 28,703.5 metres in 44 completed reverse circulation and diamond drill holes as of June 7, 2022. This drilling was focused on multiple areas in the Santa Cruz deposit, as well as neighbouring exploration areas. Holes from SCC-001 through SCC-004 were included in the mineral resource estimate, while all other holes were not included (as they were after the drilling cut-off and effective date of December 8, 2021). Within the Santa Cruz deposit, these subsequently drilled holes are expected to further refine the geometry and location of the modelled mineral resources. The exploration holes drilled outside of the Santa Cruz deposit area are expected to help define mineralized areas and guide future work. A full table of intercepts as of June 7, 2022, is contained in the Santa Cruz Technical Report

Notable 2021-2022 Diamond Drill Hole Intercepts

Drill Hole Location Bedrock
Depth of
Hole (m)
Total
Depth of
Hole (m)
From (m) To (m) Interval
Length (m)
Total
Copper (%)
Acid- Soluble
Copper (%)
Cyanide- Soluble
Copper (%)
Total
Soluble
Copper (%)
SCC-001 Santa Cruz 514.74 1,275.0 583.70 1027.00 443.30 1.37 0.71 0.16 0.87
Including            
623.10 673.23 50.13 2.55 2.19 0.02 2.21
681.23 711.32 30.09 2.75 2.22 0.31 2.53
732.52 758.52 26.00 2.10 1.21 0.66 1.87
             
776.52 1009.00 232.48 0.88 0.04 0.12 0.16
SCC-002 Santa Cruz 441.96 965.3 587.00 633.00 46.00 1.15 0.99 0.07 ​1.07
             
639.00 702.00 63.00 1.65 1.48 0.29 1.76
             
721.00 919.00 198.00 1.05 0.04 0.41 0.45
Including            
723.00 748.00 25.00 3.36 0.23 2.61 2.84
831.00 901.00 70.00 0.67 0.01 0.07 0.08​​​
SCC-003 Santa Cruz 279.45 778.5 508.00 529.00 21.00 ​2.15 1.96 0.09 ​2.05
Including            
513.00 523.00 10.00 3.42 3.15 0.17 3.32
             
538.00 566.00 28.00 0.76 0.65 0.03 0.68
             
593.00 629.00 36.00 0.63 0.04 0.48 0.52​​​
SCC-004 Santa Cruz 316.38 926.9 597.00 633.00 36.00 1.46 1.28 0.14 1.42
Including            
597.00 609.00 12.00 2.78 2.48 0.24 2.72
             
666.00 849.00 183.00 0.67 0.18 0.38 0.56
Including            
666.00 680.00 14.00 1.33 0.09 1.20 1.29
824.00 831.62 7.62 0.95 0.03 0.12 0.15
             
902.00 908.00 6.00 0.58 0.07 0.45 0.52
SCC-005 Santa Cruz 550.01 793.7 613.17 623.00 9.83 1.88 1.42 0.03 ​1.46
             
636.00 693.00 57.00 3.52 1.88 0.89 2.77
Including            
659.00 683.14 24.14 7.02 3.33 2.07 5.40​​​
SCC-007 Santa Cruz 773.33 1,344.2 813.59 871.00 57.41 0.92 0.84 0.01 0.85
Including            
814.37 830.00 15.63 1.84 1.73 0.01 1.74
             
880.00 905.00 25.00 2.44 1.64 0.64 2.28
Including            
886.00 896.00 10.00 4.08 2.20 1.59 3.79
             
968.00 1304.00 336.00 1.27 0.12 0.84 0.96
Including            
982.00 1132.00 150.00 2.08 0.17 1.83 2.00
996.00 1040.00 44.00 2.38 0.21 2.12 2.34
1088.00 1123.00 35.00 2.28 0.13 2.04 2.18
             
1151.00 1164.00 13.00 1.04 0.01 0.05 0.06
             
1214.00 1222.00 8.00 0.99 0.01 0.06 0.07
SCC-008 Santa Cruz 927.01 1,220.3 754.00 763.00 9.00 1.95 1.82 0.02 1.83
             
804.00 816.00 12.00 1.19 1.01 0.02 1.03
             
901.00 1057.00 156.00 0.74 0.08 0.13 0.21
Including            
922.00 957.00 35.00 1.12 0.03 0.32 0.35
1006.00 1027.00 21.00 0.58 0.01 0.09 0.09
1036.00 1044.00 8.00 0.83 0.01 0.10 0.11​​​
SCC-011 Santa Cruz 719.94 1,099.4 749.15 811.06 61.91 1.08 1.04 0.01 1.05
Including            
749.15 760.00 10.85 1.83 1.77 0.01 1.78
766.00 809.70 43.70 1.02 0.99 0.01 0.99
767.00 777.00 10.00 1.52 1.49 0.01 1.50
             
859.00 949.00 90.00 0.83 0.44 0.30 0.74
Including            
860.00 890.00 30.00 1.62 0.82 0.64 1.45
SCC-017 Exploration 633.57 1,139.3 756.50 1075.00 318.50 0.88 0.02 0.21 0.22
Including            
756.50 1040.00 283.50 0.92 0.02 0.23 0.25
Including            
862.00 905.00 43.00 1.26 0.01 0.26 0.28
963.00 977.99 14.99 1.19 0.01 0.06 0.07
1001.83 1014.00 12.17 1.01 0.02 0.08 0.09
SCC-019 Exploration 637.34 1,123.3 772.97 873.00 100.03 1.74 0.09 0.82 ​0.91
Including            
772.97 846.00 73.03 2.21 0.13 1.09 1.22
             
931.00 942.00 11.00 0.97 0.01 0.12 0.13
             
1018.00 1059.90 41.90 0.82 0.01 0.05 0.06
Including            
1021.00 1028.00 7.00 1.44 0.01 0.09 0.10

Cross Section Showing Hole SCC-007

Cross Section Showing Hole SCC-007

Cross Section Showing Holes SCC-014, SCC-017 and SCC-019

Cross Section Showing Holes SCC-014, SCC-017 and SCC-019

Gallery