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Arizona Sonoran Copper (TSX: ASCU) has received the mined land reclamation permit from the Arizona State Mine Inspector’s Office for the Cactus mine project less than four months after it applied.
The company is working on a prefeasibility study for Cactus, a porphyry copper deposit located on private land near the city of Casa Grande, and expects to release it in the fourth quarter.
“We are thrilled to have received the [permit] within three and a half months,” said Travis Snider, VP sustainability and external relations, in a news release. “Along with the other state and county agencies, these timely approvals continue to give us the confidence about our efforts to redevelop the Sacaton mine into the Cactus project.”
In a note to clients, Haywood Securities mining analyst Pierre Vaillancourt said the quick permitting time demonstrates the state regulators’ faith in the project. “The latest permit bolsters our confidence in ASCU’s ability to work with the Arizona government and move Cactus forward,” he wrote.
The Cactus project was previously known as the Sacaton mine, owned and operated by ASARCO between 1972-1984.
The property has since undergone a $20 million reclamation program under the guidance of the ASARCO Trust and the Arizona Department of Environmental Quality. The program reclaimed the majority of the property, including the tailings storage facility and the former milling facilities. An environmental baseline study was completed, and work is steadily progressing through project permitting.
After acquiring the project in 2020, Arizona Sonoran released an integrated preliminary economic assessment (PEA) in 2021, which outlined an 18-year mine operation producing an aggregate of 1 billion lb. of copper. The project has a net present value, post-tax at an 8% discount rate, of $312 million and internal rate of return of 33%.
The project contains indicated resources of 151.8 million tonnes grading 0.531% total copper (1.6 billion lb. contained copper), plus 228.9 million inferred tonnes at 0.384% total copper (1.8 billion lb. contained copper).
The mined land reclamation permit is issued at the state level through a process that governs mine sites and ensures measures will be taken to achieve stability and safety, consistent with post-mining land use objectives specified in the reclamation plan.
Arizona Sonoran has already received the aquifer protection permit and stormwater pollutant prevention permit, entitled water rights, dust control permitting, as well as general planning and zoning amendment approvals from various state and county agencies.
Only the industrial air permit remains for the company to apply for development permits needed to build the Cactus project.
