Community Presentation July 2010 1 SWVP-022790 Project Overview - PowerPoint PPT Presentation

SWVP-0599 Community Presentation July 2010 1 SWVP-022790

Project Overview  Florence Copper Project is an initiative of Curis Resources Ltd. to develop a world-class in-situ copper recovery (ISCR) project in central Arizona  Proven technology for copper production without the large-scale land disturbances usually associated with mining  Significant employment and economic benefits for Florence, Pinal County and State of Arizona  Next-generation copper producer  incorporating best-of-class environmental management and green technologies  addressing local priorities & concerns  NO EFFECTS on local groundwater quality or availability  Curis Resources a contributing member of a flourishing Florence community  www.florencecopperproject.com Page 2 SWVP-022791

SWVP-022792 3 Project Site

Project History American Smelting & Refining Co (ASARCO) undertakes early exploration 1960’s 1970 Continental Oil Company (Conoco) records first copper intercepts Conoco constructs two 700’ shafts and one mile of cross-cuts 1972 Test mines 50,000 tons of ore On-site metallurgical testing via milling, floatation and vat leaching plant Acquired by Magma Copper Company Prefeasibility studies to determine optimum mining method 1992-1996 Metallurgical and materials property testing Focus shifts to in-situ copper recovery (ISCR) production and SX-EW processing Magma acquired by BHP Copper (Florence Copper, Inc.) Geological, hydrogeological, metallurgical & hydrochemical test work 1996-1998 ISCR pilot test completed – test included installation of 67 injection, production and environmental monitoring wells BHP completes Pre-Feasibility Study 1999 Measured & indicated resource (429 million tons) Permitting in place for ISCR production Project deferred due to low metal prices 2000 Property acquired by Merrill Ranch Investments LLC 2009 HDI acquires Florence Project patented land 2010 HDI Acquires State mineral leases. Curis Resources Ltd. formed and senior project team assembled to advance Florence Project towards development Groundwater quality monitored every three months 1996-2010 Results demonstrate no impairment of water quality or quantity from historic ISCR activities 4 SWVP-022793

SWVP-022794 5 ISCR Technology

In-Situ Copper Recovery (ISCR)  ISCR allows for the recovery of valuable copper minerals without mining related land disturbances  NO open pits, waste rock facilities or tailings storage  A low pH solution is injected into a soluble copper orebody  Solution strength is comparable to lemon juice or household vinegar  Copper-rich solution is pumped to surface via recovery wells  Well orientation and pumping rates designed to ensure ‘hydraulic control’  Solution recovery rates are 10 - 20% higher than injection rates  Excess water stored in water impoundments  Monitoring wells ensure groundwater quality is maintained 6 SWVP-022795

SWVP-022796 7 Hydraulic Control

Project Geology  429 million ton measured and indicated copper oxide resource  0.33% of the resource is copper (total 2.84 billion lb)  Soluble copper in orebody and highly fractured rock  Aquitard acts as a natural barrier to water movement  Ideal condition for in-situ copper recovery (ISCR) 8 SWVP-022797

Before, During & After ISCR Operations Current Site, Looking South During Operations After Reclamation 9 SWVP-022798

SWVP-022799 10 Project Scope

SWVP-022800 11 Planned Project Timeline

Phase 1: Production Test  A small, on-site ISCR production test is scheduled to commence in Nov 2010  Goals include:  optimize and confirm copper recoveries;  test various pumping and recovery rates;  update project economics.  Facilities required:  20 injection, recovery, observation and monitoring wells  Surface area occupied by well-field is 1.8 acres  Temporary modular building for data collection and solution recovery testing  During this phase, Curis will invest ~ $45 million and employ ~30 people 12 SWVP-022801

SWVP-022802 13 Production Test Location

Phase 2: Feasibility Study & Permitting  Following a successful ISCR Production Test, Curis will complete a bankable Feasibility Study and undertake comprehensive project permitting  Federal and State permitting for commercial ISCR operations is expected to take 18 months to complete Page 14 SWVP-022803

Phase 3: Project Financing & Construction  Project construction will take ~12 – 18 months  Commercial ISCR production targeted for late 2013/early 2014  Capital expenditure: ~$200 million  Primary activities include:  infrastructure development;  construction of SX-EW plant; and  well field development. Page 15 SWVP-022804

Phase 4: ISCR Operations  ISCR operations at the Florence Copper Project will take ~18 months to reach full capacity  Anticipated project life:15 – 20 years  Anticipated direct employment : ~170 head of household jobs  Tens of millions of dollars in supply and service contracts  Standard solution extraction and electro-winning (SX/EW) technology  Pure copper cathode will be produced on-site 16 SWVP-022805

On-Site Copper Production  Standard solution extraction and electro-winning (SX/EW) technology  Pure copper cathode will be produced on-site 17 SWVP-022806

SWVP-022807 Page 18 Conceptual Project Layout

Production Facilities  Full ISCR production at the Florence Copper Project will require:  installation of an ISCR well-field  upgrading and expansion of solution storage tanks  construction of additional water impoundments  construction of an SX/EW plant  associated administration, transportation and power infrastructure 19 SWVP-022808

Phase 5: Closure  Following ISCR operations, the Florence Copper Project site will be returned to pre-development or better conditions.  The property will be available for a number of post-closure land uses, including agriculture and residential development  Environmental monitoring will continue for 30 years after the completion of production to guarantee integrity of groundwater resources Page 20 SWVP-022809

SWVP-022810 21 Water

Water Quality  The Florence Copper Project will result in NO CHANGE to regional groundwater quality or availability  ISCR technology and practices have been conclusively shown to have NO long-term effects on groundwater quality or availability  14 years of water quality monitoring at 31 ‘point of compliance’ wells prior to, during and following the 1997 BHP ISCR production test have shown NO CHANGE to groundwater conditions  During ISCR operations, monitoring program will be expanded and enhanced  All site-specific water quality standards enforced by the Arizona Department of Environmental Quality (ADEQ)  Water quality monitoring will continue for 30 years post-closure 22 SWVP-022811

Groundwater Flow Characteristics  Near-surface aquifers used for potable water will be unaffected by the Florence Copper Project  ISCR operations will exclusively use deeper, groundwater zones not currently used for drinking water  If water quality monitoring indicates any impairment outside of the permitted area, pumping of solution would be stopped and fresh water would be pumped into the ground until conditions are shown to meet all required standards. 23 SWVP-022812

Water Use  The ISCR production area at Florence will comprise 213 acres  ISCR operations will utilize about 1,300 acre feet of water per year when in full production  Agricultural production (2-3 harvests of alfalfa) on 213 acres would require between 1,700 - 2,600 acre feet of water per year  Currently, 423 acres of the project site are used for agricultural production  It is expected that agricultural cultivation will continue during ISCR operations 24 SWVP-022813

SWVP-022814 25 Economic Benefits

Local Investment  Curis will invest ~$45 million in the Florence Copper Project over the next two years  Near-term expenditures include:  engineering and environmental studies  permitting activities  a small on-site ISCR production test  community outreach activities  site operations and administration  Capital expenditures to bring the Florence Copper Project into operation are estimated to be in the range of $200 million  Life of project (15-20 years) capital expenditures will be in the range of a further $300 million 26 SWVP-022815