Arizona Sonoran's Cactus Project: A Strategic Leachable Copper Play with 11 Billion Pounds of Upside

Arizona Sonoran Copper Company Inc. (ASCU) has emerged as a standout player in the U.S. copper sector, driven by the Cactus Project's recent 51% conversion of inferred resources to Measured and Indicated (M&I) resources. This update, announced on September 16, 2025, positions the project as a near-term leachable copper producer with 11 billion pounds of contained copper in the M&I category, 75% of which is leachable materialArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. The implications for near-term Pre-Feasibility Study (PFS) timelines, financing readiness, and operational scalability are profound, making ASCU a compelling case study in resource conversion and strategic de-risking.

Geology and Leachability: The Foundation of Economic Viability

The Cactus Project's geology is characterized by a mix of oxide and primary sulfide mineralization, with the M&I category now comprising 1,143 million short tons at 0.48% total copper (CuT). Crucially, 75% of this material is leachable, primarily in the form of oxide and secondary enriched copper, which is amenable to heap leaching and solvent extraction/electrowinning (SX/EW) processingArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. This is a critical advantage in an industry where processing costs and recovery rates dictate margins.

The Parks/Salyer deposit, contributing 57% of the total MRE, has seen a 51% conversion of near-surface material to the Indicated category. This deposit alone holds 514 million short tons at 0.49% Cu TSol, with 90% of the leachable material concentrated hereArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. Meanwhile, Cactus West and Cactus East deposits have expanded by 151% in the M&I category, albeit with a 19% grade reduction due to the inclusion of lower-grade primary sulfide material. This underscores the project's ability to balance scale with economic feasibility, as lower-grade material is offset by the high leachability of oxidesArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1].

Low cut-off grades further enhance the project's economics. For oxide material, the cut-off is 0.099% TSol, while primary material requires 0.226% CuTArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. These thresholds, calculated using a copper price of $4.20/lb, ensure that even marginal material is included in the resource base, maximizing the recoverable inventory.

Permitting Progress and Land Acquisition: De-Risking for Production

Permitting for the Cactus Project is at an advanced stage, with amendments to key permits—including the Aquifer Protection Permit and Industrial Air Permit—expected in H2 2025Arizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. The recent acquisition of 2,123 acres of contiguous land adjacent to the project in 2025 has further de-risked infrastructure requirements, providing space for SX/EW plants, leach pads, and waste rock stockpilesArizona Sonoran Acquires Additional Land Necessary to Support the Anticipated Cactus Project Plan^[2]. This strategic land purchase eliminates a major operational constraint and aligns with the project's anticipated 20-year mine life, as outlined in the 2024 PFSArizona Sonoran Acquires Additional Land Necessary to Support the Anticipated Cactus Project Plan^[2].

The PFS, released in Q4 2024, projected annual production of 116,000 short tons of copper cathodes via SX/EW processing, with capital expenditures (capex) and operating costs (opex) optimized for leachable materialArizona Sonoran Acquires Additional Land Necessary to Support the Anticipated Cactus Project Plan^[2]. With the updated MRE now fully integrated into the PFS workstreams, the project is on track to finalize its Definitive Feasibility Study (DFS) by Q4 2026, setting the stage for a final investment decisionArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1].

Financing and Market Position: A Near-Miss to Production

ASCU's financing strategy has been robust, with $59.2 million CAD raised in late 2024 and early 2025 to fund the PFS and drilling programsArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. The company plans to initiate project financing discussions in Q4 2026, coinciding with the DFS completion. This timeline aligns with the U.S. copper sector's growing demand, driven by decarbonization and electrification trends, where leachable copper plays a pivotal role due to its lower carbon footprint and cost efficiencyArizona Sonoran Updates on PFS Workstreams at the Cactus Project^[4].

The 51% conversion of inferred to M&I resources has directly enhanced the project's bankability. By increasing the M&I category to 1,143 million tons and reducing inferred resources by 56%, ASCU has demonstrated operational discipline and technical rigorArizona Sonoran Reports 11 Billion Pounds of Contained Copper in Updated Cactus Mineral Resource Estimate in the Measured and Indicated Category, 75% of which is Leachable Material^[1]. This conversion, coupled with the 75% leachability rate, positions the Cactus Project as a near-miss to production, with a clear path to commercialization within 18–24 months of securing project financing.

Conclusion: A Strategic Play in a High-Demand Sector

Arizona Sonoran's Cactus Project exemplifies the intersection of geological robustness, operational efficiency, and strategic de-risking. The 51% conversion of inferred to M&I resources, combined with 75% leachability and advanced permitting, creates a compelling case for near-term production. As the U.S. copper sector grapples with supply constraints and decarbonization mandates, ASCU's focus on low-cost, high-margin leachable copper positions it as a key player. With financing timelines aligned to the DFS and land acquisition hurdles cleared, the Cactus Project is not just a resource—it's a blueprint for scalable, sustainable copper production in North America.