Parks Salyer, Arizona

Location
Arizona, USA

Operator
Arizona Sonoran Copper Company

Commodity
Copper-Molybdenum

Royalty
1.5% NSR & other payments

Parks Salyer is located ~5km northwest of Casa Grande, Arizona. Parks Salyer is a porphyry copper and enriched oxide copper system 1.5km SW of the historical Sacaton open pit copper Mine. EMX geologists recognized the potential for the expansion of the historic copper occurrence at Parks Salyer and inexpensively acquired available mineral rights over the eastern portion of the ore body. Parks Salyer is controlled and operated by Arizona Sonoran Copper Company, Inc. as part of their Cactus project.

Key Drill intercepts on EMX royalty ground^1,2 shown below:

• ECP-084: 162m @ 1.10% TCu, 0.98% Cu, Tsol, 0.012% Mo
• ECP-086: 68.3m @ 2.24% TCu, 2.19% Cu TSol, 0.010% Mo
• ECP-090: 144.5m @ 0.82% TCu, 0.73% Cu TSol, 0.007% Mo
• ECP-092: 66.1m @ 1.41% TCu, 1.35% Cu TSol, 0.005% Mo
• ECP-108: 189.3m @ 2.00% TCu, 1.58% Cu Tsol, 0.013% Mo
• ECP-110:  127.7m @ 1.15% TCu, 1.01% Cu Tsol

In Q1 2024, ASCU announced results from a Pre-Feasibility Study for the Cactus Project³, which includes Parks Salyer. The Parks-Salyer underground mineral reserves were based upon mineral resources, which are partially covered by EMX‘s royalty, originally announced in Q4 2023⁴ as:

* Denotes Cu Tsol generated using sequential assaying to calculate the grade soluble Cu

Notes:

1. Leachable copper grades are reported using sequential assaying to calculate the soluble copper grade. Primary copper grades are reported as total copper, total category grades reported as weighted average copper grades of soluble copper grades for leachable material and total copper grades for primary material. Tons are reported as short tons.
2. Resources use a copper price of US$3.75/lb.
3. Technical and economic parameters defining underground resources: mining cost US$27.62/t, G&A US$0.55/t, and 5% dilution.
4. Technical and economic parameters defining processing: Oxide heap leach (HL) processing cost of US$2.24/t assuming 86.3% recoveries, enriched HL processing cost of US$2.13/t assuming 90.5% recoveries, primary mill processing cost of US$8.50/t assuming 92% recoveries. HL selling cost of US$0.27/lb; Mill selling cost of US$0.62/lb.
5. For Parks-Salyer variable cut-off grades were reported depending on material type, associated potential processing method, and applicable royalties.
6. Resources are inclusive of reserves.
7. Totals may not add up due to rounding.

The Parks-Salyer underground mineral reserves announced in Q1 2024³ are:

Notes:

1. The Qualified Person for the underground estimate for Parks-Salyer is Nat Burgio of AGP Consultants Inc.
2. Metal price of Cu $3.70/lb.
3. Processing costs are variable and based upon material type, processing destination, copper grade, and copper recovery.
4. General and administration costs of $0.47/ton processed.
5. Process recoveries are variable depending upon mineralization type, sequential copper grades, and comminution size.
6. Underground mining cost of $27.62.
7. The footprint delineation for the Parks/Salyer mine was based on a resource model block cash flow dollar value (CFTC1) of $27.62 (net of process, G/A and royalties).
8. Inferred resources included in the ‘cave flow’ mixing process have been assigned zero grade.

*EMX, as a royalty holder, does not have access to the data necessary to report the portion of the mineral resources and mineral reserves covered by its Parks-Salyer royalty property. However, in Q4 2022 EMX received a $3,000,000 milestone payment from ASCU based upon declared mineral resources totaling more than 200 million pounds of contained copper covered by the Parks-Salyer royalty. Specifically, ASCU reported to EMX that a total of 725.5 million pounds of contained copper (approximately 25% of the total contained copper from the 2022 total inferred mineral resource of 2,915 Mlbs contained copper) were covered by the EMX royalty. The Company notes that the footprint of the Parks-Salyer deposit within EMX’s royalty property boundary has not changed materially from the 2022 to the 2023 resource models.

**Nearby mines and deposits provide context for the project, but do not necessarily indicate similar size, styles or grade of mineralization within the project.

¹ https://arizonasonoran.com/news-releases/arizona-sonoran-parks-salyer-exploration-drilling-intercepts-531-ft-of-1.10-tcu/. True widths are not known

² https://arizonasonoran.com/news-releases/arizona-sonoran-intersects-621-ft-of-2.0-total-copper-at-parks-salyer-infill-drilling-within-872.5-ft-of-1.64-cut-of-continuous/

³ https://arizonasonoran.com/news-releases/arizona-sonoran-announces-a-positive-pre-feasibility-study-for-the-cactus-mine-project-with-a-us-509m-post-tax-npv-and-55-kstpa/

⁴ https://arizonasonoran.com/news-releases/arizona-sonoran-announces-updated-mineral-resource-estimate-for-the-cactus-project/

Maps

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