Los Andes Copper

Investor Insight

As demand for copper continues to rise, driven by global electrification trends, Los Andes Copper is well-placed to leverage its significant copper position in Chile, driven at the helm by a group of highly experienced technical and business leaders.

Overview

The electrification transition is already in motion and driving demand for copper, an essential metal for manufacturing emerging technologies. Copper is already found in electronics worldwide, and as clean energy technologies aim to replace fossil fuels, demand will only increase — it's projected that copper demand will likely reach 50 million metric tons by 2035. A separate analysis estimates the world copper deficit may hit more than 8.5 metric tons by 2030.

Growing copper demand has put the spotlight on Chile which hosts some of the world’s largest copper deposits. It is currently the top copper producer in the world, producing more than twice the volume of its closest competitor, Peru. The country is a stable, mining-friendly jurisdiction that has already attracted prolific mining companies.

The company filed a positive pre-feasibility study in 2023 indicating US$2.78 billion after-tax net present value (NPV) using an 8 percent discount rate and an internal rate of return (IRR) of 24.2 percent at US$ 3.68/lb copper, US$12.90/lb molybdenum and US$21.79/oz silver, with an estimated initial capital cost of US$2.44 billion. The PFS also highlighted a construction period of 3.25 years and a payback period of 2.5 years from initial production.

Los Andes works closely with the local community to support the development of local businesses and social organizations. The company has joined the Association of Small Miners of Putaendo and has established several programs to support social organizations, local technical high schools and female entrepreneurs. Los Andes is also environmentally aware and strives to maintain an excellent ESG rating.

The company’s management team is experienced in the natural resources industry, including experts in geology, community affairs, and corporate finance.

Company Highlights

• Los Andes Copper is a Vancouver-based mining company focused on developing its world-class Vizcachitas copper project in Chile.
• To support the project, the company has received a combined US$14 million in investments from Queen’s Road Capital and US$ 20 million from Ecora Resources.
• The Vizcachitas project has tremendous blue-sky potential and is the largest advanced copper project in the Americas owned by a junior miner.
• The company released the results of its pre-feasibility study (PFS) in 2023 with a US$2.8 billion post-tax NPV8 and 24 percent IRR at US$3.68 copper.
• The company strives to maintain an excellent ESG rating and works closely to support the local community and minimize the project’s environmental impact.
• An experienced management team leads Los Andes Copper with a range of experience throughout the mining industry.

Key Project

Vizcachitas Copper Project

The 100-percent-owned Chilean Vizcachitas copper project is one of the largest advanced copper deposits in the Americas and the largest deposit owned by a junior miner. The project is located in the Rio Rocin Valley, roughly 150 kilometers northeast of Santiago.

Project Highlights:

• Strong Existing Infrastructure: The project is accessed by a 124-kilometer paved highway, a nearby railway and shipping ports. Due to the presence of existing copper mines, smelting facilities are accessible by railway. Additionally, there are multiple large power substations near the project.Completed PFS: 2023 Pre-Feasibility Study results indicated:

• US$2.78 billion after-tax NPV using an 8 percent discount rate and an IRR of 24.2 percent at US$ 3.68/lb copper, US$12.90/lb molybdenum, and US$21.79/oz silver, with an estimated initial capital cost of US$2.44 billion.
• A construction period of 3.25 years and a payback period of 2.5 years from initial production.
• A 16-percent increase in measured and indicated resources from the preliminary economic assessment dated June 13, 2019, to 14.8 billion pounds (lbs) copper equivalent grade (CuEq).
  • measured resources of 2.61 billion lbs copper, 84 million lbs molybdenum, and 11 million ounces (Moz) silver;
  • indicated resources of 10.42 billion lbs of copper, 442 million lbs of molybdenum, and 43 Moz of silver;
  • and increase inferred resources by 130 percent to 15.4 billion lbs CuEq (13.75 billion lbs copper, 495 million lbs molybdenum, 55 Moz silver).
• Dedicated to a strong ESG rating: The PFS focused on utilizing the latest sustainable mining methods which resulted in a 50 percent reduction in water consumption, and a 25 percent reduction in energy use and confined the project to one valley, reducing the project footprint. The company has also committed to using desalinated water, ensuring a sustainable water supply. Additionally, the company works closely with local communities to improve the knowledge and understanding of the future Vizcachitas Project and of the multiple opportunities that a sustainable mining project like Vizcachitas will bring to the community.
• Royalty Agreement with Ecora Resources: Los Andes closed a royalty agreement with Ecora Resources, a leading royalty and streaming company focused on investing in future-facing commodities. The agreement includes a $20 million cash consideration paid to Los Andes in return for royalty payments equal to 0.25 percent net smelter return royalty on minerals sold on open pit operations and 0.125 percent NSR on underground operations.
• Permit to Restart Drilling: The Second Environmental Court in Chile ruled that Los Andes has complied with all the conditions imposed on July 20, 2022 and is now authorized to restart drilling.

Management Team

Santiago Montt - CEO

With 11 years of experience in the mining sector, Santiago Montt has a law degree from the University of Chile, a J.S.D. law degree (PhD) from Yale University, and a Master's in Public Policy from Princeton University. He has worked for BHP from 2011 to 2021 in various roles: vice-president of corporate affairs for the Americas, VP of ligation (Global), VP of legal Brazil, and VP of legal copper. He is an experienced professional in the areas of stakeholder management, risk management, crisis management, project management and commercial and legal affairs

Antony Amberg - Chief Geologist

Anthony Amber is a chartered geologist with 32 years of diverse experience working in Asia, Africa, and South America. Amberg is a qualified person under NI 43-101. He has managed various exploration projects ranging from grassroots through to JORC-compliant feasibility studies. In 2001, he returned to Chile where he started a geological consulting firm specializing in project evaluation and NI 43-101 technical reports. He began his career in 1986 working with Anglo American in South Africa before moving on to work for the likes of Severin-Southern Sphere, Bema Gold, Rio Tinto and Kazakhstan Minerals Corporation.

Ignacio Melero - Director of Corporate Affairs and Sustainability

Ignacio Melero is a lawyer with a degree from Pontificia Universidad Católica de Chile with vast experience in corporate and community affairs. Before Los Andes, Ignacio was responsible for community affairs at CMPC, having managed community and stakeholder affairs for a number of its pulp and forestry divisions throughout the country. Ignacio has worked for the Government of Chile, in the Ministry General Secretariat of the Presidency. He was responsible for the inter-ministerial coordination of the ChileAtiende project, a multi-service network linking communities, regional governments and public services.

Gonzalo Saldias - Geologist Consultant

Gonzalo Saldias is a geologist with a degree from the Universidad Católica del Norte, Chile, with more than 35 years of experience working within Chile and internationally. He worked for Antofagasta Minerals from 2007 to 2015, and for Placer Dome Latin America for ten years. He also worked for Codelco as head of exploration geology for the El Salvador Division.

Harry Nijjar - Chief Financial Officer

Harry Nijjar holds a CPA CMA designation from the Chartered Professional Accountants of British Columbia and a Bachelor of Commerce from the University of British Columbia. He is a managing director of Malaspina Consultants. Nijjar has been working with public and private companies for the past 10 years in various roles. He is also currently the CFO of Darien Business Development and Clarmin Explorations.

Manuel Matta - Senior Mining and Project Consultant

Manuel Matta is a mining engineer from the University of Chile, with more than 30 years of experience in operations, planning and projects. He worked for Falconbridge and Xstrata as vice-president of projects and development where he led the expansion of the Collahuasi mine. He was also the general manager of Altonorte Smelter in Chile. Matta also worked for Barrick Gold in Chile and the Dominican Republic and was the general manager of Las Cenizas copper mines in Chile.