Could you provide an overview of World Copper and its establishment?

World Copper is a junior Canadian company based in Vancouver that began trading on the TSXV in January 2021. The company owns three projects, namely Escalones and Cristal in Chile and Zonia in Arizona. Before going public, World Copper was a subsidiary of Wealth Minerals where its CEO and Chairman, Henk van Alphen, is the CEO and Chairman of Wealth Minerals as well. Mr. Alphen connected with Marcelo Awad, former CEO of Antofagasta, and founded World Copper to further advance the Escalones property. Currently, the company has moved from exploration to early-stage development and has an exciting runway ahead of it.

Can you explain the PEA for the Escalones project and what type of operation it showcases?

The Escalones project is an SX-EW oxide heap leach operation, which is the largest oxide copper deposit under exploration and development in Chile at present. The initial capital required for the project is very low at US$438.4 million from construction decision, which has led to impressive economics, including a post-tax NPV of approximately US$1.5 billion and a 46.2% IRR at a US$3.60/lb copper price. Additionally, the payback is estimated to be 2.18 years.

What makes the LOM head grade of 0.38% Cu economic?

Looking at the grades of four oxide heap leach mines in Chile held by major companies such as Los Bronces, Gabriela Mistral, Lomas Bayas, and Zaldivar, their grades are lower than the 0.38% at Escalones in many cases. As an oxide heap leach operation, Escalones is considerably more viable for production due to more attractive economics.

Given the issue of water scarcity in Chile, how is World Copper preparing for the Escalones project, assuming water availability from the Rio Pangal Valley near El Teniente?

El Teniente is the world’s largest underground mine, and they draw water from the Rio Pangal Valley. World Copper is considering building a pipeline into the Rio Pangal Valley under the assumption that its SX-EW operation would use approximately four times less water per pound of copper produced than the El Teniente operation. Furthermore, El Teniente is planning to construct a pipeline from the coast to its project, and World Copper is in discussions with them to reach an agreement where they can tie into that pipeline, giving them further access to water.

What access to infrastructure does the Escalones project have?

Escalones is situated 97 km southeast of Santiago and 35 km east of El Teniente. The nearest community is accessible via a 60 km gravel road. The site is owned by a local gas company and is well-maintained. World Copper already has all the agreements and concessions necessary to develop the mine. The company has power access as there are many hydroelectric dams in the region that they can connect to the grid. Moreover, Escalones is at a relatively low elevation compared to other copper projects in the region.

What are the next steps for World Copper to advance the project through exploration and development?

Despite the impressive economics, Escalones has significant exploration potential. The resource outlined in the PEA is only half of the overall resource. The other half has seen no historical drilling, but geologically it is clear that it is an extension of the main resource. Additionally, there is deep sulphide potential and three other copper porphyry skarn targets to the northeast that have never been drilled.

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