Our view: We expect a positive reaction from Marimaca shares to the announced 2023 mineral resource estimate that converted
significant inferred resources to indicated resources (+44% vs. previous M&I resource from October). The total resource is up 7%
to 237.6Mt from 222.2Mt at a similar grade profile of 0.44% Cu for 1,041Kt of contained copper (Exhibit 1). We see the new MRE
as an incremental positive as it de-risks the Marimaca oxide deposit with ~86% of the total resource now in the M&I category
ahead of the upcoming feasibility study expected in 2024. The next catalysts could be drilling to follow up on the sulphide intercept
announced in December with results expected any time now. Today's resource is for the oxide deposit while Marimaca announced
the first hole in sulphide mineralization in December 2022 highlighted by 92m at 2.11% Cu which was targeting a geophysical
anomaly identified in 2020.
Management have previously noted it expects the feasibility study will contemplate a production scenario in the range of
50-60Ktpa for a mine life >12 years. We currently model a total resource of 222Mt at 0.45% based on the October resource estimate
for a 15 year mine life averaging 50Ktpa of copper production.