Form 8-K
8-K — Ivanhoe Electric Inc.
Accession: 0001104659-26-109810
Filed: 2026-09-23
Period: 2026-09-23
CIK: 0001879016
SIC: 1000 (METAL MINING)
Item: Regulation FD Disclosure
Item: Other Events
Item: Financial Statements and Exhibits
Documents
8-K — tm2625798d1_8k.htm (Primary)
EX-23.1 — EXHIBIT 23.1 (tm2625798d1_ex23-1.htm)
EX-23.2 — EXHIBIT 23.2 (tm2625798d1_ex23-2.htm)
EX-23.3 — EXHIBIT 23.3 (tm2625798d1_ex23-3.htm)
EX-23.4 — EXHIBIT 23.4 (tm2625798d1_ex23-4.htm)
EX-23.5 — EXHIBIT 23.5 (tm2625798d1_ex23-5.htm)
EX-23.6 — EXHIBIT 23.6 (tm2625798d1_ex23-6.htm)
EX-23.7 — EXHIBIT 23.7 (tm2625798d1_ex23-7.htm)
EX-23.8 — EXHIBIT 23.8 (tm2625798d1_ex23-8.htm)
EX-23.9 — EXHIBIT 23.9 (tm2625798d1_ex23-9.htm)
EX-23.10 — EXHIBIT 23.10 (tm2625798d1_ex23-10.htm)
EX-23.11 — EXHIBIT 23.11 (tm2625798d1_ex23-11.htm)
EX-99.1 — EXHIBIT 99.1 (tm2625798d1_ex99-1.htm)
EX-99.2 — EXHIBIT 99.2 (tm2625798d1_ex99-2.htm)
EX-99.3 — EXHIBIT 99.3 (tm2625798d1_ex99-3.htm)
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XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — FORM 8-K
8-K (Primary)
Filename: tm2625798d1_8k.htm · Sequence: 1
false
0001879016
NYSE American
0001879016
2026-09-23
2026-09-23
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 23, 2026
IVANHOE
ELECTRIC INC.
(Exact
name of registrant as specified in its charter)
Delaware
001-41436
32-0633823
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
450
E. Rio Salado Parkway, Suite 130, Tempe,
AZ
85281
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including
area code: (480) 656-5821
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the
Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which registered
Common
Stock, par value $0.0001 per share
IE
NYSE American
Indicate by check mark whether the registrant is
an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 7.01 Regulation FD Disclosure.
On September 23, 2026, Ivanhoe Electric
Inc. (the “Company” or “Ivanhoe Electric”) issued a press release announcing the release of a report entitled
“S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz Copper Project, Arizona”, dated September 23,
2026, (the “2026 PFS”) for the Company’s Santa Cruz Copper Project located west of Casa Grande, Arizona (the “Santa
Cruz Copper Project” or the “Project”). A copy of the Company’s press release dated September 23, 2026,
relating to the 2026 PFS is furnished as Exhibit 99.2 to this Form 8-K.
The Company intends to hold an investor call
to discuss the release of the 2026 PFS on September 23, 2026, where a slideshow presentation discussing the results of the 2026
PFS will be presented. A copy of the slideshow presentation is furnished as Exhibit 99.3 to this Form 8-K.
The information contained in Exhibit 99.2
and 99.3 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference
into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference
in such a filing.
Item 8.01 Other Events.
Updated Preliminary Feasibility Study for
the Santa Cruz Copper Project
On September 23, 2026, the Company provided
an updated Preliminary Feasibility Study & Technical Report Summary for its Santa Cruz Copper Project, dated September 23,
2026, prepared in accordance with the Securities and Exchange Commission S-K regulations (Title 17, Part 229, Items 601 and
1300 through 1305) for the Company by the following third-party qualified persons: BBA Consultants USA LP (“BBA”), Worley
Group Inc. (“Worley”), Burns & McDonnell Engineering Company, Inc. (“Burns & McDonnell”),
Haley & Aldrich, Inc. (“H&A”), INTERA Incorporated (“INTERA”), KCB Consultants Ltd. (“KCB”),
Life Cycle Geo, LLC (“LCG”), Met Engineering, LLC (“Met Engineering”), Paterson & Cooke USA, Ltd.
(“P&C”), Stantec Consulting Services Inc. (“Stantec”), and Tetra Tech, Inc. (“Tetra Tech”).
None of the qualified persons is affiliated with the Company or any other entity that has an ownership, royalty, or other interest in
the property.
Mineral resources and mineral reserves are reported
using the definitions in Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations in Regulation S-K 1300 (“S-K
1300”). All capital and operating cost estimates meet the requirements of S-K 1300, with an expected accuracy of -20% to +25%.
A contingency of <15% has been applied to capital cost estimates. Unless otherwise indicated, all financial values are reported in
United States dollars (currency abbreviation: USD; currency symbol: US$) including all operating costs, capital costs, cash flows, taxes,
revenues, expenses, and overhead distributions. All pricing is considered in second quarter 2026 dollars. Unless otherwise indicated,
capital and operating costs do not include tariffs or escalations. Totals may not sum correctly due to rounding.
The information below is based on, or extracted
from, the 2026 PFS. The 2026 PFS replaces and supersedes the prior S-K 1300 technical report summary for the Santa Cruz Copper Project,
dated June 23, 2025.
Property Setting
The Project is a 92 km drive south of the greater
Phoenix metropolitan area and is accessed via the West Gila Bend Highway (“Highway 84”) 11 km west of the city of Casa Grande,
which has a population of approximately 57,700.
The greater Phoenix area is a major population
center, with approximately 4.8 million people, and features an international airport, Phoenix Sky Harbor International Airport, and well-developed
infrastructure and services that support the mining industry.
The climate in the Project area is typical of
the Sonoran Desert, with temperatures ranging from -7°C to 47°C (19°F to 117°F) and an annual precipitation average ranging
from 76 to 500 mm (3 to 30 inches) per year. Mining and exploration activities can be performed year-round, as there are no limiting
weather or accessibility factors.
Santa Cruz Copper Project Location
Source: Ivanhoe Electric, 2026
Mineral Tenure, Ownership, Surface Rights
and Royalties
The Santa Cruz Copper Project is 100% owned by
Ivanhoe Electric through its wholly-owned subsidiary, Mesa Cobre Holding Corporation (“Mesa Cobre”).
Mineral Tenure
In 2021, Ivanhoe Electric acquired 238 unpatented
mining lode claims from Central Arizona Resources, Ltd. (“CAR”). In addition, Ivanhoe Electric acquired fee simple
mineral title for two further land parcels: “CG100” and “Skull Valley”. In 2022, Ivanhoe Electric acquired
the 0.08 km2 (20-acre) “Skull Valley” property from Skull Valley Capital, LLC in the southeastern area of the
Project and the 0.41 km2 (100.33-acre) “CG100” from CG 100 Land Partners LLC in the northeastern area of the Project.
In 2023, Ivanhoe Electric acquired 16 Arizona
State Land Department mineral exploration permits covering 27.95 km2 (~6,900 acres) of state mineral land. In 2024, Ivanhoe
Electric exercised the agreement with D.R. Horton Phoenix East Construction, Inc. (“DRH”), granting Ivanhoe Electric,
through Mesa Cobre, 100% of the mineral title for 26.0 km2 (~6,425 acres) of fee simple mineral estate, 39 federal unpatented
mining lode claims (bringing the total claims controlled by Ivanhoe Electric to 277), and 26.6 km2 (~642.5 acres) of Stock-Raising
Homestead Act lands.
The total Project area comprises fee simple land
along with unpatented mining lode claims and Arizona State Land Department Mineral Exploration Permits. Annual renewal fees for the unpatented
mining lode claims and mineral exploration permits have been made as required. The area of proposed mine activity lies on fee simple
land. Mineral control is summarized in the below table and figure.
Summary of Ivanhoe Electric’s Mineral
Control
Land
Designation
Area
(km2)
Fee
Simple Mineral Ownership
25.98
Unpatented
Mining Lode Claims (277 claims)
19.30
Arizona
State Land Department Mineral Exploration Permits (16 permits)
30.47
Santa Cruz Copper Project Mineral Control
Map
Source: Ivanhoe Electric, 2026
Surface & Water Rights
In 2022, Ivanhoe Electric acquired the surface
rights to two land parcels: the 0.08 km2 (20-acre) Skull Valley property from Skull Valley Capital, LLC in the southeastern
area of the Project and a 0.41 km2 (100.33-acre) land parcel “CG100” from CG 100 Land Partners LLC in the northeastern
area of Project. In August 2024, Ivanhoe Electric acquired the surface title to three 0.04 km2 (10-acre) parcels
located in various areas of the Project along with the mineral rights from DRH. The majority of the surface rights for the Santa Cruz
Copper Project were acquired in 2023. Surface rights are shown in the below figure. Ivanhoe Electric acquired both Grandfathered Irrigation
Rights (“GFR”) and Grandfathered Type 1 Non-irrigation Water Rights as part of its 2023 private land purchase. These rights
provide approximately 3,600 acre-feet (“acre-ft”) per year of water for Project use.
Ivanhoe Electric Surface Control Map
Source: Ivanhoe Electric, 2026
Royalties
Noted royalties on future mineral development
of the Project are summarized in the below table and figure.
Royalties Applying to the Santa Cruz Copper
Project
Royalty
Owner
Royalty
Description
Royalty
Owner A
10%
of 1/800th of the fair market value for refined copper, which amount is set by the value listed in the successor index to Metals
Week as of the date the solution extraction / electrowinning (“SX/EW”) process is completed
Royalty
Owner B
60%
of 1/800th of the fair market value for refined copper, which amount is set by the value listed in the successor index to Metals
Week as of the date the SX/EW process is completed
Royalty
Owner C
2%
NSR
Royalty
Owner D
0.15%
net smelter return
Royalty
Owner E
½
of 1% net smelter return or ½ of 1% of 60% net smelter return if product is disposed of other than to a commercial smelter
Royalty
Owner F
10%
net smelter return (capped at $7 million)
Royalty
Owner G
5%
net smelter return
Royalty
Owner H
1%
net smelter return
Royalty
Owner I
$0.015/lbs
of copper of additional mineable reserve copper over 2 billion pounds (“Blbs”) as determined by the “Definitive
Feasibility Study” or by production beyond the amount estimated in the “Definitive Feasibility Study”; the royalty
owner has the option to require payment in Ivanhoe Electric common stock at a 10% discount to the five-day volume weighted average
price
Extent of Royalties
Source: Ivanhoe Electric, 2026
History
Copper mineralization, first discovered in the
region in the 1960s, led to extensive drill programs across the Project area. Exploration programs by several companies and joint ventures
included diamond drilling and several geophysical surveys from the 1960s through the 1990s.
Ivanhoe Electric gained access to the land in
August 2021 to start drill programs, completed a Mineral Resource estimate in 2022, an updated Mineral Resource estimate in early
2023, an initial assessment in September 2023, and a preliminary feasibility study in June 2025.
Geology & Mineralization
The Santa Cruz Copper Project is situated within
the Southwestern Porphyry Copper Belt, which is home to numerous productive copper deposits. Notable examples in Arizona include Mineral
Park, Bagdad, Resolution, Miami-Globe, San Manuel-Kalamazoo, Ray, Morenci, Sierrita, Twin Buttes, and the historically significant Sacaton
Mine. These deposits are part of the larger physiographical area known as the Basin and Range Province, which covers much of the southwestern
United States.
The porphyry copper deposits in the Southwestern
Porphyry Copper Belt are the result of igneous activity during the Laramide Orogeny, which occurred between 50 and 80 million years ago.
This geological event was driven by the subduction of the Farallon Tectonic Plate beneath the North American Tectonic Plate, resulting
in the formation of a magmatic arc and the development of associated porphyry copper systems.
The Project comprises four separate areas along
a southwest-northeast corridor. These areas from southwest to northeast are known as the Southwest exploration area, the Santa Cruz deposit,
the East Ridge deposit, and the Texaco deposit, all of which represent portions of one or more large porphyry copper systems separated
by extensional Basin and Range normal faults. Each area has experienced variable periods of erosion, supergene enrichment, fault displacement,
and tilting into their present positions.
Mineralization in the Project area is divided
into the following:
· Supergene
copper oxide mineralization mainly consists of atacamite and chrysocolla, with smaller amounts
of cuprous goethite, copper-bearing smectite clays, tenorite, cuprite, copper wad, and native
copper;
· Secondary
supergene sulfide mineralization is dominantly chalcocite, which replaces hypogene sulfide;
· Primary
hypogene sulfide mineralization consists of chalcopyrite and molybdenite hosted within quartz-sulfide
stringers, veins, and breccias.
Exploration, Drilling & Sampling
Ivanhoe Electric has completed geophysical surveys
including two-dimensional, three-dimensional, multichannel seismic, reprocessing of proprietary Typhoon™ three-dimensional perpendicular
pole dipole induced polarization data, and ambient noise tomography. The geophysical datasets from these surveys were used to assist
with geological interpretation and improved drill targeting.
A comprehensive surface ionic leach sampling
program has also been completed across the Project to assess in detecting copper mineralization at depth.
Drilling within the Santa Cruz Copper Project
property totals 484 drillholes for 354,655 m of drilling. Of this total, 329 drillholes for 279,164 m were used in support of the Mineral
Resource. The 155 drillholes excluded from the estimation do not intersect the deposit or did not have relevant information for estimation,
such as shallow sonic holes with no assay samples taken.
Detailed core logging is performed by Ivanhoe
Electric geologists through digital data input into MX Deposit. Data that are logged include lithology, alteration, mineralization, veining,
petrophysical data, and geotechnical parameters, such as faults, joints, fractures, hardness, and rock quality (Q-system) parameters.
Additional characterization fields such as rock colors, grain sizes, textures, and supergene weathering features were also captured.
Approximately 6,295 density measurements from
210 drillholes were measured for the Santa Cruz, East Ridge, and Texaco deposits.
Quality assurance and quality control (“QA/QC”)
for the Ivanhoe Electric drill programs consisted of inserting duplicates, blanks, and certified reference materials (standards) into
the sample stream at set sampling intervals. BBA’s review of the data indicated no material issues.
Ivanhoe Electric used 222 drillholes totaling
over 70 km of geotechnical drilling to analyze geotechnical characterization of the Santa Cruz and East Ridge deposits. Historical drillholes
were selected based on availability of rock quality designation data.
The groundwater flow model was calibrated and
used to predict the residual passive inflows for the prefeasibility study mine plan. The predicted residual passive inflows resulting
from the updated model, with grouting applied, indicate that the residual passive inflows for the first 10 years of the mine are at or
below 7,200 gallons per minute (“gal/min”), compared to the 12,000 gal/min estimated in the initial assessment (“IA”)
model, in addition to 2 years of 3,000 gal/min of active pumping. From Years 11 through 25, the residual passive inflows in the updated
model range from approximately 3,500 to 7,200 gal/min, compared to 15,000 to 18,000 gal/min predicted in the IA model.
Data Verification
BBA personnel in the disciplines of geology,
Mineral Resource estimation, Mineral Reserve estimation, and mining visited the Project site in 2024. During the visit, BBA personnel
reviewed and verified data acquisition procedures with Ivanhoe Electric personnel, visited active drill sites, and performed several
other verification checks to ensure data integrity.
Based on the data made available, BBA considers
that a reasonable level of verification has been completed and that no material issues were identified from the programs. It is BBA’s
opinion that the geological data collection and QA/QC procedures used by Ivanhoe Electric are consistent with current industry practices
and that the geological database is of suitable quality to support a Mineral Resource estimate.
Metallurgical Testwork
Metallurgy and processing test work were directed
by Met Engineering, LLC and conducted at McClelland Labs (“MLI”) in Sparks, Nevada, USA, at Blue Coast Research (“BCR”)
in Parksville, British Columbia, Canada and at Kappes, Cassidy and Associates (“KCA”) in Reno, Nevada, USA.
Metallurgical testwork included the following:
· Establishing
copper recoveries, based on sequential coppers for chloride-assisted, weak-sulfuric acid,
heap leaching of mineralized material at the Santa Cruz Copper Project.
· Determining
commercial operating parameters for heap leaching mineralized material at the Santa Cruz
Copper Project, including salt usage, sulfuric acid usage, ore cure/agglomeration practices,
leach cell cycle times for an on/off leach pad design, annual pregnant leach solution grades,
and pregnant leach solution flow rate to solvent extraction.
· Additional
testing at KCA in 2025-2026 answered a number of questions related to the process design
criteria for value engineering: Extraction (PLS)/recovery (to cathode) at 8-m lift, optimal
chloride level, use ILS or not, use rest-rinse or continuous irrigation, copper level in
the irrigation solution, particle size, etc.
A grade-recovery equation was developed based
on sequential copper assays. For the life-of-mine processing, this equation produces a weighted average of 92.3% total copper recovery
to cathode for leaching an 8 m lift of ore crushed to 100% passing 9.5 mm for 220 days of irrigation utilizing an on/off leach pad.
There are no deleterious elements or factors
that could have a significant effect on economic extraction of the copper in the mineralized material.
Mineral Resource Estimate
Estimation Methodology
The Santa Cruz deposit has approximately 194,000
m of drilling in 226 drillholes; East Ridge has approximately 49,000 m of drilling in 62 holes; and Texaco has approximately 36,000 m
of drilling in 41 holes.
Geological domains were developed for the Project
based on alteration, lithological, and mineralogical characteristics, incorporating regional and local structural information. Normal
faults separate the mineralization at the Santa Cruz, East Ridge, and Texaco deposits.
The Santa Cruz deposit was divided into several
mineral domains: exotic domain, verde domain, leach cap, oxide domain, chalcocite enriched domain, and primary mineralization domain.
The East Ridge deposit consists of a mix of oxide and chalcocite enriched domains. The Texaco deposit consists of all domains except
for leach cap and exotic. The domains were further divided into subdomains based on individual grade profiles, which align with controls
on mineralization. The following terms are assigned to the subdomains; these represent a local definition of the grade profile: high-grade,
medium-grade, and low-grade.
Exploratory data analysis was conducted to determine
the nature of element distribution and correlation of grades within individual lithological units, and to identify high-grade outlier
samples. Capping was not applied to copper values as significant outliers were not identified. Samples were composited to 2 m intervals.
Variograms were completed by subdomain for each deposit.
The resource estimation methodology constrains
the mineralization by using hard wireframe boundaries. Ordinary kriging (“OK”) was employed for the Santa Cruz deposit, and
inverse distance squared (“ID2”) was selected for the East Ridge and Texaco deposits. Multiple search passes were
used for each deposit. Search parameters were based on variography and continuity of mineralization.
Validation checks were completed on the Mineral
Resource estimates. These included visual comparison of estimated grade to composite grade, domain conformity, swath plots, and comparisons
to alternate estimation methods.
Indicated and Inferred classification was applied
to the Santa Cruz, East Ridge, and Texaco deposits based on BBA’s review that included the examination of drill spacing, visual
comparison, kriging variance, distance to the nearest composite, and search pass, along with the search ellipsoid ranges. Collectively,
this information was used to produce an initial classification script followed by manual wireframe application to further limit the Mineral
Resource classification.
Mineral Resources used commodity prices based
on long-term analyst and bank forecasts. In the opinion of BBA, this price is generally aligned with pricing over the last 1, 3, and
5 years; forward-looking pricing from internationally recognized banks is appropriate for use in a Mineral Resource estimate. Section 16
provides an explanation of the commodity price forecasts. The commodity price considered 3-year trailing averages.
Mineral Resource Statement
The Mineral Resources in this estimate were independently
prepared, including estimation and classification, by BBA in accordance with the definition for Mineral Resources in S-K 1300 regulations.
The in-situ Mineral Resource estimates for the Santa Cruz, East Ridge, and Texaco deposits, inclusive and exclusive of reserves, are
presented in the below tables, respectively.
In-situ Mineral Resource Estimate Inclusive
of Reserves for Santa Cruz, East Ridge & Texaco
Deposit
Classification
Tonnes
(kt)
Total
Copper
(%)
Acid
Soluble
Copper (%)
Cyanide
Leach
Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid Soluble Copper (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper
(Mlbs)
Santa
Cruz
Indicated
317,709
0.95
0.48
0.30
0.17
0.027
1.62
3,017
1,517
956
543
279
16,513
6,650
Inferred
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
East
Ridge
Indicated
8,742
1.00
0.45
0.39
0.16
0.014
0.68
88
40
34
14
4
191
193
Inferred
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Texaco
Inferred
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
All
Deposits
Indicated
326,450
0.95
0.48
0.30
0.17
0.027
1.59
3,104
1,557
989
558
283
16,704
6,844
All Deposits
Inferred
422,020
0.79
0.12
0.24
0.43
0.025
0.83
3,332
503
1,030
1,809
333
11,304
7,346
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were independently prepared, including estimation and classification, by BBA Consultants
USA LP, and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral Resources are reported in situ, inclusive of Mineral Reserves.
4. The Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine Studio RM software.
5. The Mineral Resources are current at September 23, 2026.
6. Mineral Resources constrained assuming underground mining methods for the Santa Cruz deposit are reported at an NSR cutoff
of US$32.00 for heap leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00 for heap leach and
US$34.00 for concentrator; and East Ridge deposit is reported at an NSR cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill.
The cutoff reflects the total operating costs to define reasonable prospects for economic extraction by conventional underground mining
methods. Material from within mineable shape-optimized wireframes has been included in the Mineral Resource. Underground mineable shapes
optimization parameters include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price of US$24.00/oz. Process
costs of US$7.00 to US$9.00 per processed tonne; direct mining costs between US$22.00 to US$40.00 per processed tonne reflecting various
mining method costs (leach, longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed tonne, on-site
processing costs between US$31.63 to US$49.63 per processed tonne, along with variable royalties between 5.01% to 6.96% NSR, and a mining
recovery of 100%.
7. Mineral Resources are estimated using metallurgical recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble
copper, 22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0% for acid-soluble copper, 90% for cyanide-soluble
copper, 90% for residual copper, 59% for gold, and 69% for silver.
8. Density was applied using weighted averages by deposit subdomain.
9. Rounding, as required by reporting guidelines, may result in apparent summation differences between tonnes, grade, and contained
metal content.
In-situ Mineral Resource Estimate Exclusive
of Reserves for Santa Cruz, East Ridge & Texaco
Deposit
Classification
Tonnes
(kt)
Total
Copper
(%)
Acid
Soluble
Copper (%)
Cyanide
Leach Copper
(%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid
Soluble Cu
(kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper
(Mlbs)
Santa
Cruz
Indicated
177,547
0.79
0.32
0.20
0.27
0.025
1.45
1,403
570
362
471
140
8,279
3,092
Inferred
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
East
Ridge
Indicated
4,412
0.94
0.43
0.31
0.20
0.015
0.71
41
19
14
9
2
101
91
Inferred
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Texaco
Inferred
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
All
Deposits
Indicated
182,959
0.79
0.32
0.21
0.26
0.024
1.43
1,444
589
376
480
143
8,380
3,184
All Deposits
Inferred
422,020
0.79
0.12
0.24
0.43
0.025
0.83
3,332
503
1,030
1,809
333
11,304
7,346
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were independently prepared, including estimation and classification, by BBA Consultants
USA LP, and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral Resources are reported in situ, exclusive of Mineral Reserves.
4. The Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine Studio RM software.
5. The Mineral Resources are current at September 23, 2026.
6. Mineral Resources constrained assuming underground mining methods for the Santa Cruz deposit are reported at an NSR cutoff
of US$32.00 for heap leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00 for heap leach and
US$34.00 for concentrator; and East Ridge deposit is reported at an NSR cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill.
The cutoff reflects the total operating costs to define reasonable prospects for economic extraction by conventional underground mining
methods. Material from within mineable shape-optimized wireframes has been included in the Mineral Resource. Underground mineable shapes
optimization parameters include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price of US$24.00/oz. Process
costs of US$7.00 to US$9.00 per processed tonne; direct mining costs between US$22.00 to US$40.00 per processed tonne reflecting various
mining method costs (leach, longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed tonne, on-site
processing costs between US$31.63 to US$49.63 per processed tonne, along with variable royalties between 5.01% to 6.96% NSR, and a mining
recovery of 100%.
7. Mineral Resources are estimated using metallurgical recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble
copper, 22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0% for acid-soluble copper, 90% for cyanide-soluble
copper, 90% for residual copper, 59% for gold, and 69% for silver.
8. Density was applied using weighted averages by deposit subdomain.
9. Rounding, as required by reporting
guidelines, may result in apparent summation differences between tonnes, grade, and contained metal content.
The current resource model iterations have not
changed when compared to the iterations released in the 2025 PFS. Differences presented in Mineral Resources Exclusive of Mineral Reserves
are due to the addition of stopes at the top of the mine.
Factors That May Affect the Mineral
Resource Estimate
· Areas
of uncertainty that may materially impact the Mineral Resource estimates are as follows:
· Changes
to long-term metal price assumptions;
· Changes
to the input values for mining, processing, and general and administrative (“G&A”)
costs to constrain the estimate;
· Changes
to local interpretations of mineralization geometry and continuity of mineralized subdomains;
· Changes
to the density values applied to the mineralized zones;
· Changes
to metallurgical recovery assumptions;
· Changes
in assumptions of marketability of the final product;
· Variations
in geotechnical, hydrogeological, and mining assumptions;
· Changes
to assumptions with an existing agreement or new agreements;
· Changes
to environmental, permitting, and social license assumptions;
· Logistics
of securing and moving adequate services, labor, and supplies could be affected by epidemics,
pandemics, and other public health crises, or geopolitical influence.
Mineral Reserve Estimate
Estimation Methodology
Underground Mineral Reserves were estimated by
BBA. Estimates were prepared for the Santa Cruz deposit, a portion of the East Ridge deposit, and the Verde domain located within the
Santa Cruz deposit. The primary mining method for both deposits employs longhole stoping without pillars, utilizing a primary and secondary
stoping sequence. Additionally, a few small lenses within the East Ridge deposit use a drift-and-fill mining method. Stopes will be backfilled
after mining with paste backfill for the duration of the mine life. Indicated Mineral Resources were converted to Probable Mineral Reserves.
Inferred Mineral Resources were not converted to Mineral Reserves; however, if Inferred Mineral Resources fell within the Mineral Reserve
designs, they were assumed to have zero grade.
The underground mine approach was designed using
zones that were amenable to different mining methods based on geotechnical considerations, access requirements, deposit shape, orientation
and grade, and mining depths. Waste or low-grade blocks in the stope shapes were treated as internal dilution. Mine designs were modified
by including the capital and operating development needed to access the stopes, and the applicable infrastructure requirements.
Net smelter return (“NSR”) represents
the gross revenue generated from the sale of a refined metal product (in this case, copper cathodes) after deducting all associated off-site
costs. For a mine producing copper cathodes via heap leaching and SX/EW, the traditional "smelter" and "refining"
charges inherent in concentrate sales are not applicable. Instead, the off-site deductions are specific to the direct sale of cathodes.
The primary metal produced at the Santa Cruz
Copper Project is copper. While byproducts of gold and silver are present, the current heap leach SX/EW process does not recover these
precious metals. As is common with polymetallic deposits, the cutoff value for Mineral Reserves is determined and expressed in terms
of net smelter return value per tonne.
The NSR is calculated based on unit metal values,
utilizing representative smelter contract terms, freight costs, and forecasted metal prices. The metal prices and metallurgical recovery
rates used for NSR calculations are summarized in the first table below. Operating cost for cutoff value calculations are summarized
in the second table below. Royalties are factored into each block of the Mineral Resource model.
Mineral Reserves are assessed using commodity
prices derived from long-term forecasts from analysts and banks. According to BBA, this pricing generally reflects the trends observed
over the past 1, 3, and 5 years, and the forward-looking prices from internationally recognized banks are deemed appropriate for Mineral
Reserve estimates.
NSR Parameters
Product
Unit
Value
Acid
Soluble Copper Recovery
%
98.8
Cyanide
Soluble Copper Recovery
%
85.4
Residual
Copper Recovery
%
35.1
Recoverable
Copper
%
90.9
Net
Recoverable Copper
%
90.0
Copper
Price
$/lb
4.00
Operating Costs for Cutoff Value Calculations
Criteria
Unit
Santa
Cruz
East
Ridge
East
Ridge
30
m Longhole
Drift-and-fill
15
m Longhole
Leach
Leach
Leach
Cathode
Split
%
100.0
100.0
100.0
On-site
Costs
Mining
Costs – Direct
$/t
processed
31.00
47.05
47.05
Processing
Costs
$/t
processed
10.32
10.32
10.32
G&A
$/t
processed
2.63
2.63
2.63
On-site
Total
$/t
processed
43.95
60.00
60.00
On-site
Rounded NSR Breakeven Cutoff
$/t
44.00
60.00
60.00
Mineral Reserve Statement
Indicated Mineral Resources were converted to
Probable Mineral Reserves. Inferred Mineral Resources were excluded from the Mineral Reserve estimate. Mineral Reserves for the Santa
Cruz Copper Project are estimated for the Santa Cruz deposit and a portion of the East Ridge deposit, as well as the Verde domain within
the Santa Cruz deposit.
Mineral Reserves are supported by a mine plan,
engineering analysis, and modifying factors.
The point of reference for the Mineral Reserves
is the point where the ore is delivered to the processing plant. Mineral Reserves are reported on a 100% basis.
The Mineral Reserve estimate for the Santa Cruz
Copper Project is shown in the below table. A small increase between the 2025 mineral reserve and the 2026 mineral reserve is attributed
to the initial mine ramp-up and sequencing. This adjustment, which represents an increase of approximately 2% of the contained copper,
facilitated access to several stopes within the 2026 mine plan that were not available in the 2025 mine plan.
Santa Cruz Copper Project Mineral Reserve
Estimate
Deposit
Classification
Tonnes
(kt)
Total
Copper
(%)
Acid
Soluble Copper (%)
Cyanide
Leach Copper
(%)
Residual
Copper
(%)
Contained
Copper
(kt)
Total
Acid Soluble
Cu
(kt)
Total
Cyanide
Cu
(kt)
Total
Residual Cu
(kt)
Santa
Cruz
Probable
136,022
1.09
0.63
0.40
0.05
1,477
863
547
66
East
Ridge
Probable
4,107
1.03
0.46
0.44
0.13
42
19
18
5
Total
Probable
140,129
1.08
0.63
0.40
0.05
1,519
882
566
71
Notes on Mineral Reserves:
1. The Mineral Reserves in this estimate are current to September 23, 2026, and were independently prepared, including estimation
and classification, by BBA Consultants USA LP. They are reported in accordance with the definitions for Mineral Reserves in S-K 1300.
2. The point of reference for the estimate is the point of delivery to the process facilities.
3. The Mineral Reserves for the Santa Cruz and East Ridge deposits were completed using Deswik mining software. Mineral Reserves
are defined within stope designs that are prescribed by rock mechanics, considering the specific characteristics of deposits, mineral
domains, mining methods, and the mining sequence. Transverse longhole stoping is the optimal mining method with uppers and cut &
fill methods used where appropriate. Mining will occur in blocks, extracting ore from the bottom upwards, with paste backfill providing
ground support to sustain a production rate of 20,000 tonnes per day for the first 15 years of operation.
4. Mineral Reserves are estimated at an NSR cutoff value of US$43.95/t for longhole stoping and US$60.00/t for longitudinal retreat
stopes and drift-and-fill. The NSR values reflect the discrete metallurgical responses for each Mineral Reserve block using metallurgical
recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper, 22% for residual copper. Underground mineable
shapes optimization parameters include a long-term copper price of US$4.00/lb.
5. Mineral Reserves account for mining loss and dilution.
6. Mineral Reserves are a subset of the Indicated Mineral Resource and do not include the inferred Mineral Resource.
7. Rounding, as required by the guidelines, may result in apparent summation differences between tonnes, grade, and contained
metal content.
Factors That May Affect the Mineral
Reserve Estimate
Factors that may affect the Mineral Reserve estimate
include the following:
· Changes
to long-term metal price assumptions;
· Changes
to metallurgical recovery assumptions;
· Changes
to the input assumptions used to derive the mineable shapes applicable to the assumed underground
and open pit mining methods used to constrain the estimates;
· Changes
to the forecast dilution and mining recovery assumptions;
· Changes
to the cutoff grades used to constrain the estimates;
· Variations
in geotechnical (including seismicity), hydrogeological, mining, and processing recovery
assumptions;
· Changes
to environmental, permitting, and social license assumptions.
Mining Methods
The Santa Cruz Copper Project is an undeveloped
greenfield project where Mineral Reserves have been identified for two deposits: Santa Cruz and East Ridge.
The Santa Cruz deposit is located approximately
480 to 940 m below the surface. Based on the mineralization's geometry and supporting geotechnical data, transverse underground longhole
stoping has been selected as the most suitable mining method. Mining will be conducted in blocks, with ore being extracted from the bottom
upward within each block while utilizing paste backfill to provide ground support. A sill pillar will be maintained between the blocks.
The paste backfill is designed to be strong enough to allow adjacent filled stopes to be mined without requiring additional pillars.
The stopes for the Santa Cruz deposit will have
varying widths of 12 to 18 m and lengths ranging from 10 to 17 m, depending on the geotechnical domain, zone, and mining sequence (primary
or secondary). The levels in the mine are spaced 30 m apart. The Verde zone is a subdomain within the Santa Cruz deposit, and the production
stopes in this area will be accessed from the Santa Cruz mine levels, featuring standard dimensions of 20 m (height) x 15 m (width) x
20 m (length).
The East Ridge deposit is situated to the north
of the main Santa Cruz deposit, approximately 310 to 790 m below the surface. It consists of multiple tabular lenses and will be mined
using a hybrid approach that combines longhole stoping and the drift-and-fill method, depending on the geometry of the orebody in each
zone. At East Ridge, longhole stopes will measure 15 m (height) x 10 m (width) x 8 m (length), accessed via longitudinal entries. For
zones using the drift-and-fill method, the drifts will have dimensions of 5 m (height) x 5 m (width), with variable lengths determined
by the local rock mass condition. Mining will begin with a drift sized at 5 m (height) x 5 m (width), followed by paste backfill and
curing before the development of the next adjacent drift in the orebody.
Mine access will be provided through a single
tunnel boring machine (“TBM”) decline from the surface. Ore will be transported from the stopes by load-haul-dump (“LHD”)
equipment to an orepass system, which will transfer the ore from a chute to a conveyor system. The conveyor system will transfer the
material to surface. Main intake and exhaust raises will be developed to ensure the mine workings are adequately ventilated. The combined
production target for the Santa Cruz and East Ridge deposits is approximately 20,000 t/d at peak production and approximately 14,000
t/d life of mine (“LOM”).
The Santa Cruz Copper Project encompasses three
mining zones: Santa Cruz, Verde, and East Ridge. The Santa Cruz zone is the primary production area and is structurally divided into
northern and southern regions.
Mining Zones of Santa Cruz and East Ridge Deposits, View Looking
North
Source: Ivanhoe Electric, 2026
Primary (first-pass) support will be installed
in conjunction with the advance of excavation and will provide support and reinforcement. Any support applied at a later stage will be
considered secondary (or second-pass) support. Excavation in rock will be performed via conventional (drill and blast) methods or with
a roadheader machine.
The Santa Cruz Copper Project mine life is expected
to be 24 years with construction from 2027 to mid 2029 followed by schedule production to 2052. The below table summarizes the production
in the mine plan. The “Ore” column represents the total development and production ore for Santa Cruz, Verde, and East Ridge
mining zones.
Santa Cruz Scheduled Production Summary
Year
Ore
(kt)
Total
Copper
(%)
AsCu
(%)
CNCu
(%)
Cu_Res
(%)
Ratio
ASCU:TCU
2027
0
0.00
0.00
0.00
0.00
-
2028
101
0.54
0.13
0.44
0.00
0.82
2029
1,403
0.82
0.13
0.56
0.12
0.69
2030
4,684
1.37
0.22
1.09
0.05
0.80
2031
6,819
1.23
0.34
0.86
0.04
0.70
2032
7,286
1.10
0.47
0.58
0.05
0.53
2033
7,155
1.17
0.55
0.59
0.03
0.50
2034
7,245
1.16
0.49
0.62
0.04
0.54
2035
7,775
1.07
0.43
0.60
0.04
0.56
2036
7,679
1.09
0.31
0.75
0.03
0.69
2037
7,850
0.98
0.28
0.67
0.03
0.68
2038
8,003
1.02
0.31
0.66
0.05
0.65
2039
7,804
1.08
0.48
0.55
0.05
0.51
2040
7,105
1.18
0.64
0.45
0.09
0.38
2041
7,210
1.16
0.59
0.49
0.08
0.42
2042
7,672
1.09
0.48
0.57
0.05
0.52
2043
8,011
1.01
0.41
0.57
0.03
0.56
2044
7,447
1.01
0.32
0.62
0.08
0.00
2045
3,315
0.93
0.24
0.64
0.05
0.00
2046
3,625
0.98
0.49
0.46
0.03
0.47
2047
3,706
1.10
0.40
0.67
0.03
0.61
2048
3,647
1.02
0.27
0.68
0.07
0.66
2049
3,742
1.02
0.28
0.70
0.04
0.68
2050
3,659
1.05
0.39
0.58
0.07
0.55
2051
3,648
0.97
0.42
0.50
0.05
0.52
2052
3,537
1.03
0.21
0.74
0.08
0.72
Total
140,129
1.08
0.40
0.63
0.05
-
The figure below shows tonnes of material mined
over the LOM from the orebodies and development.
Santa Cruz Tonnes of Mined Material
Source: BBA, 2026
Cemented paste backfill is used as the primary
means of backfill to support the mining cycle and allow excavation of the adjacent voids. Spent ore from the on/off leach pad is the
primary material source to produce paste. Due to the lag between the initial availability of spent ore from the on/off pad and the demand
for paste, Oracle granite from the decline construction or an off-site source is used during the initial months of mine production. Milled
spent ore will then be used for the remainder of the mine life. The spent ore requires conditioning and milling prior to use in the backfill
system to establish suitable properties for use as paste backfill.
Grade control at the Santa Cruz mine will be
enhanced through technology integrated into the materials handling system, such as cross-belt analyzers. Additionally, production hole
sampling and on-site testing at the surface assay laboratory will be employed to reconcile results with the mine plan.
The underground ventilation system is designed
to ensure efficient airflow and maintain appropriate working temperatures underground throughout the LOM. Using a “push-pull”
system with main intake and exhaust fans, the system has a capacity of 880 m3/s, supported by one decline and three primary
ventilation shafts. All main fans are planned to be installed on the surface at the shaft collars, while booster fans will be needed
to regulate ventilation flow underground. Due to high ambient temperatures, mechanical cooling is provided by a central refrigeration
plant with a peak capacity of 20 MW of refrigeration. The system features variable frequency drives and regulators to allow ventilation
control underground, ensuring adequate air quality and efficient clearance of mine blast gases.
Recovery Methods
Process for the Santa Cruz Copper Project has
been designed to cycle oxide and secondary sulfide ores through an on/off heap leach pad to produce a copper-rich pregnant leach solution
(“PLS”) that will be processed in the on-site solvent extraction and electrowinning circuit for recovery.
The process plant and refinery designs were based
on proven technologies and established operating practices, and commercially available equipment. The process and refinery plant designs
are based on the results of metallurgical testwork on the mineralized material at the Santa Cruz Copper Project. The designs are conventional.
The simplified overall process flow diagram is
presented in the figure below.
Simplified Process Flowsheet
Source: Worley, 2026
Ore produced from the underground mine will be
processed using a heap leach and solvent extraction and electrowinning flowsheet to produce London Metal Exchange (“LME”)
grade copper cathode. The heap leaching process will take place on an on/off pad. Spent ore will be removed from the leach pad and processed
for paste backfill or stacked on a spent ore pile. Approximately 50% of the spent ore will be processed for use in paste backfill. Operations
will be conducted 24 hours per day, 365 days per year for approximately 26 years at a design stacking rate of up to 22,000 t/d.
Run of mine (“ROM”) ore will be delivered
to surface at a diameter of less than 254 mm via the conveyor. Ore from underground will be conveyed to the coarse ore stockpile for
further 2-stage crushing. Fine ore (undersize from the crushing circuit) will be trucked to the agglomeration drums where sulfuric acid
and sodium chloride can be added to facilitate agglomeration and leaching.
Crushed and agglomerated ore will be delivered
to the leach pad via a combination of overland conveying and stacking equipment. The final mobile conveyor will feed two self-propelled
indexing conveyors in series, which in turn will feed the self-propelled mobile radial stacker. The cells will be ‘retreat’
stacked by the radial stacker in a 65.5 meter-wide (half-cell) half moon shape.
The on/off heap leach pad will be divided into
seven cells, each approximately 130 x 730 meters. The cells will be separated by divider berms located near their base so that solution
flow from each cell can be segregated for collection. The liner for the leach pad is comprised of a high-density polyethylene geomembrane
overlaying a geosynthetic clay liner overlaying prepared native foundation materials or grading fill.
Ore will be stacked at up to 22,000 t/d, while
unloading will consider a constant rate of 22,000 t/d; based on a typical interior half-cell strip (i.e., not the end cell strips on
the north or south sides of the pad), it will take approximately 25 days to stack each half-cell strip at the design production rate.
Each of the cells (and more specifically, each of the half-cell strips) will cycle through the following processes in sequence with an
entire cell cycle, under the design production rates and idealized cell sizing, taking approximately 320 days.
The cycles are as follows:
· Stacking
(25 days);
· Piping
connections and stacker relocation (3 days);
· Irrigation
(220 days);
· Solution
drain, water rinse, drain down, and piping removal (23 days);
· Spent
ore removal (25 days);
· Inspection
and maintenance (empty cell time) (26 days).
The cells will be irrigated with raffinate (depleted
pregnant leach solution from the solution extraction process) or secondary leach solution (“SLS”) produced from leaching.
Leach solution will report to the solution collection ponds. At the end of the leach cycle, spent ore will be removed to the spent ore
stockpile or the paste plant using dozers, loaders, grasshopper / link conveyors and trucks (see figure below).
Seven-Cell Heap Leach and Solution Management
Source: KCB, 2026
Solution will be managed in a series of lined
ponds, including the raffinate pond, PLS and SLS collection ponds, solution overflow ponds, and spent ore stockpile collection pond.
The pond system has been sized to contain normal operating solutions and stormwater and to maintain separation between contact and non-contact
water. The proposed locations of the solution management ponds are depicted in the figure below.
Solution Management Ponds, Leach Pad, and
Spent Ore Piles
Source: Ivanhoe Electric, 2026
The solvent extraction circuit design comprises
two parallel trains. Each train will consist of two extraction stages, two wash stages, and one strip stage.
The copper electrowinning tankhouse will comprise
electrowinning cells with lead anodes and stainless-steel cathode blanks. Cathodes (copper electroplated onto stainless steel blanks)
will be harvested manually using an overhead crane and bail. Cathodes will be stripped in an industry standard automated stripping machine
and the washed blanks will be returned to the cells. Product cathode copper will be bundled, sampled, weighed, labeled, and shipped.
Infrastructure
The Santa Cruz Copper Project site surface infrastructure
comprises the following:
· An
open excavation 30-meter-deep “boxcut” ramp for accessing a decline portal to
the underground mine workings;
· Three
ventilation shafts for airflow and cooling to the underground mine workings;
· Primary
mine ventilation fans, hardware, and ducting to control ventilation to the underground mine
workings;
· Refrigeration
plant to control temperatures in the underground mine workings;
· Rock
crushing, stockpiles and process plant;
· Spent
ore stockpile;
· On/off
leach pad with associated collection ponds and mobile stacking;
· Solution
extraction and electrowinning process facilities;
· Mobile
cement batch plant facility;
· Paste
backfill batch facility;
· Maintenance,
and warehouse facilities;
· First
aid/rescue building;
· Multiple
various ancillary outbuildings;
· Entry
security shack and various visitor and project parking spaces;
· Equipment
delivery and open laydown/storage area;
· Multiple
improved and unimproved access roads;
· Piping
and pumping systems for process and water services;
· Explosives
storage facility;
· High-voltage
transmission line, substations and medium-voltage distribution;
· Environmental
monitoring facilities;
· Emergency
power generation facility.
Key infrastructure locations are shown on the
figure below.
Santa Cruz Site Plan
Source: Ivanhoe Electric, 2026
Power for the Project will be provided from the
utility grid supply. The goal of the mine development is to achieve a minimum of 70% of the energy supply from clean sources via a “Green
Select Energy Rider” provided through the local power utility, Electrical District No. 3 (“ED3”).
The Santa Cruz Copper Project will have an estimated
operating load of 74 MW during peak production years (2031-2044) and a forecast annual consumption of 647,000 MWh/y during peak production
years and 690,000 MWh in 2039.
Water supply for process operations will be sourced
from existing grandfathered Type I non-irrigation rights and mine dewatering. Potable water will be trucked in from the city. Trucked
water will be stored in a tank to service the surface facilities.
Water management operations include systems of
underground dewatering, water collection and conveyance facilities, water storage, water use, and various management options for discharge
of excess water. Water not used for underground mining, the paste backfill plant, the process plant, and the on/off heap leach pad can
be pumped to storage reservoirs. Rapid infiltration basins are used to capture non-contact stormwater runoff to prevent stormwater from
coming into contact with mining operations.
Testwork confirmed the extracted groundwater
quality will be acceptable for irrigation use when applied to suitable crops (e.g., cotton, alfalfa, pasture grasses) commonly grown
in the vicinity of the Project. The water distribution system is designed to distribute water to agricultural end-users, without treatment,
and includes a side-stream water treatment process that may be used if the extracted groundwater does not meet the standards defined
by end-users.
On-site accommodations facilities are neither
required nor planned. Personnel will reside in nearby settlements including Casa Grande, Maricopa, the Phoenix metropolitan area, and
Tucson, and will commute to site by vehicle. Parking, security, fencing, and a gatehouse are included in the design.
The infrastructure buildings to be built on site
include explosive magazine storage; cap magazine storage; core shack; process laboratory; security and main gate; fueling station; mine,
plant operations building, changehouse, and mine dry; first aid and emergency rescue facilities; mining facility warehouse.
Market Studies & Contracts
Copper is a globally traded commodity that has
established benchmark pricing in the form of exchanges such as the London Metals Exchange or Commodity Exchange Inc. The Santa Cruz Copper
Project aims to produce copper cathode. Ivanhoe Electric plans to sell the copper in the United States.
Refined copper cathodes will be sold with reference
to the prices on the Commodity Exchange or London Metals Exchange at an agreed-upon quotational period. An additional premium to the
price will be negotiated with potential buyers. Factors affecting the premium will include the shape and chemical specification of the
cathode, together with the geographical location of the delivery point in relation to where the cathode is going to be consumed.
The Economic Model uses a base copper price of
$4.75 per pound, which is based on a review of the 1-, 3-, and 5-year trailing averages, as well as consensus forecasts from major banks
and a market study completed by Ocean Partners for Ivanhoe Electric.
Due to the shape, chemical composition, and origin
point of the cathode, it is expected that a premium to the price will be negotiated with potential buyers that is marginally above the
historical average. For financial modeling purposes, this premium is estimated at $0.14 per pound ($300 per tonne) (Ocean Partners, 2025).
The table below summarizes the 1-, 3-, and 5-year
trailing price for copper using the LME Grade A monthly average as well as consensus forecasts from the major banks (CIBC, 2025).
Commodity Price Summary
LME
Trailing
Average
($/lb)
Forecast
($/lb)
1-Year
3-Year
5-Year
2026
2027
2028
2029
Long-term
BBA1
5.66
4.64
4.39
Banks
Forecast2
5.97
5.94
5.78
5.69
5.03
Notes:
1BBA, Metal Pricing_R00, September 2026.
2CIBC Consensus Commodity Prices – September 2026.
LME = London Metals Exchange.
A limited number of contracts with vendors, contractors,
or manufacturers including for the TBM with The Robbins Company, along with long lead items to support on-site power and the SX/EW plant,
have been executed. Additional major contracts will be required. Copper cathode will be sold at mine gate.
Environmental, Closure & Permitting
Environmental studies have included examination
of flora and fauna, threatened and endangered species, migratory birds, surface water mapping, cultural heritage, air quality, carbon
intensity, surface water monitoring, groundwater monitoring, water quality, climate risk, soils, material characterization, and mine
material environmental behavior.
Much of the Property has been previously disturbed
from its natural state. These disturbances include flood control features, such as the canal identified as the Santa Cruz Wash Canal,
paved and unpaved roads, and agricultural practices. These disturbances have removed all potential natural surface water features that
may have existed in this area. The only features within the Property that possess characteristics of an ordinary high-water mark and
may be potential Waters of the United States are the north branch of the Santa Cruz Wash and the constructed Santa Cruz Wash Canal.
The Project is committed to responsible environmental
management, with a particular focus on minimizing air quality impacts. The Project is located within the West Pinal County PM10 (particulate
matter emissions with a diameter less than 10 microns) nonattainment area. Accordingly, the Project will take specific measures to control
and effectively mitigate dust. These measures will be in alignment with both local and state requirements.
A groundwater monitoring program to continue
collecting baseline water quality data was developed and implemented in October 2023. The objective of the monitoring plan is to
establish a current baseline water quality profile for the site and help inform Ivanhoe Electric on best management practices for groundwater
monitoring during and after mining operations.
The major permits for the Project will require
state, county, and local authorizations. Several of these permits have been issued for early construction. Other permits for full construction
and operations activities are in preparation or have been submitted.
The eventual closure and reclamation of the Santa
Cruz Copper Project will be directed and regulated under two separate but interconnected regulatory programs in Arizona: the Arizona
State Mine Inspector (“ASMI”) and the Arizona Department of Environmental Quality (“ADEQ”). Both programs are
well-established and statutes and rules are subject to licensing timeframes.
Three General Aquifer Protection Permits (“APP”)
to support construction activities have been approved by ADEQ. The Areawide Aquifer Protection Program permit application was submitted
to ADEQ and has been deemed administratively complete. Substantive review is in progress. A construction level Mined Land Reclamation
Plan (“MLRP”) has been approved by the ASMI.
Although an operational MLRP has not yet been
developed for the Project, a preliminary closure cost estimate has been developed. Based on the conceptual design plan in this report,
the closure costs for the Santa Cruz Copper Project are estimated at $27 million.
In alignment with Ivanhoe Electric’s community
engagement and partnership standards, the Project is being developed with a well-defined strategy to establish and uphold the support
of the surrounding communities. At present, the Project is continuing outreach with Native American communities that have ancestral ties
to the land. In addition, community outreach with local stakeholders, and community involvement continues, and potential partnerships
are actively being pursued and/or assessed.
Capital & Operating Cost Estimates
Capital Cost Estimate
For the Santa Cruz Copper Project, capital and
operating costs were determined based on the mine plan and SX/EW plant design. The estimation process incorporated assessments of material
and labor requirements derived from the design, analysis of the process flowsheet, and anticipated consumption of power and supplies.
Cost estimation is based on a combination of
vendor and consumable quotes and an internal database. Approximately 80% of the capital estimate is based on detailed quotes with estimated
labor installation. For the purposes of this study, initial capital expenditure is assumed to be costs incurred in 2027, 2028 and mid-2029.
By mid-2029, ore production from stopes has been established and the SX/EW plant has been installed to begin copper production. Additional
mine and plant capital costs are incurred from 2029 and 2052 to continue meeting mine ramp up and production demands and are included
in sustaining capital costs.
Total LOM capital costs are $2.85 billion: $1.43
billion in initial capital and $1.42 billion in sustaining capital. Capital costs are summarized in the below table.
Estimated Total Capital Cost
Capital
Costs Summary
Initial
Cost
($M)
Sustaining
Cost
($M)
Total
LOM Capital Cost ($M)
Pre-production
Mining Costs
50
-
50
Mining
790
1,465
2,255
Process
384
60
444
Owners
Cost
17
-
17
Indirects
55
15
70
EPCM
49
5
54
Contingency
79
0
79
Total
Initial Capital
1,423
-
-
Total
Sustaining Capital
-
1,545
-
Reclamation
and Closure Costs*
3
-121
-119
Total
Life of Mine Capital Costs
1,426
1,424
2,850
Note: Closure costs include land sales at the
end of life of mine. Totals may not sum due to rounding.
Operating Cost Estimate
Total LOM operating costs are $4.53 billion,
as summarized in the below table.
Estimated Operating Costs
Category
$M
Total
$/t
Ore Processed
$/lb
Copper Produced
Mining
Consumables
1,452
10.40
0.47
Mobile
Equipment
465
3.33
0.15
Labor
741
5.31
0.24
Power
251
1.80
0.08
Mine
Services and Indirect
157
1.12
0.05
Subtotal
3,066
21.95
0.99
SX/EW
Plant and Infrastructure
Consumables
285
2.04
0.09
Hauling
and Mobile Equipment
171
1.22
0.06
Labor
158
1.13
0.05
Power
365
2.61
0.12
Maintenance
68
0.49
0.02
Subtotal
1,047
7.50
0.34
G&A
418
2.99
0.14
Total
4,532
32.45
1.47
Note: Totals may not sum due to rounding. Direct
operating costs are exclusive of royalty payments.
Economic Analysis
Based on the cash flow model, the after-tax financial
model resulted in an internal rate of return (“IRR”) of 18.7% and a net present value (“NPV”) of $1.52 billion
using an 8% discount rate. The after-tax payback period, after start of operations, is 4.8 years. The pre-tax base case financial model
resulted in an IRR of 20.2% and an NPV of $1.90 billion using an 8% discount rate.
The Santa Cruz Copper Project contemplates average
annual copper cathode production of approximately 75,000 tonnes for the first 15 years of copper production and the average annual production
is approximately 58,000 tonnes for the life of mine.
The total life of mine is 24 years at an average
C1 cash cost of $1.47 per pound of copper and sustaining cash costs of $2.28 per pound of copper.
The financial analysis summary is shown in the
below table.
Financial Analysis Summary
Description
Units
Life
of Mine
First
15 Years
Production
Data
Mine
Life
years
24
15
Reserve
Tonnes
Mt
140
110
Copper
Grade
%
1.08
1.11
Daily
Throughput
t/d
15,346
20,030
Annual
Copper Production
t/y
58,385
74,722
Total
Copper Cathode Produced
kt
1,401
1,121
Recovery
%
92.3
92.3
Capital
Costs
Initial
Capital
$M
1,426
1,426
Sustaining
Capital
$M
1,546
1,463
Unit
Costs
Mining
Cost
$/t
processed
21.95
21.52
Processing
Cost
$/t
processed
7.50
7.45
General
and Administrative Cost
$/t
processed
2.99
3.11
Royalties
$/t
processed
6.90
6.93
Total
Operating Cost
$/t
processed
39.35
39.00
Operating
+ Sustaining Cost
$/t
processed
50.41
52.50
C1
Cash Cost
$/lb
of copper
1.47
1.42
All-in-Sustaining
Cost
$/lb
of copper
2.28
2.27
Financial
Analysis
Copper
Price
$/lb
4.75
4.75
Domestic
Cathode Premium1
$/lb
0.14
0.14
Pre-Tax
Cashflow
$M
6,761
4,971
Pre-Tax
Net Present Value (8%)
$M
1,898
-
Pre-Tax
Internal Rate of Return
%
20.2
-
After-Tax
Cashflow
$M
5,575
4,133
After-Tax
Net Present Value (8%)
$M
1,519
-
After-Tax
Internal Rate of Return
%
18.7
-
After-Tax
Payback Period
year
4.8
-
1 See Section 16 for a discussion
on copper premium.
Risks & Opportunities
Common to mining projects are internal and external
risks that could affect the Project's reliability, confidence, and/or economic viability. External risks are generally applicable to
all mining projects, such as the political situation in the Project’s region, metal prices, exchange rates, and government legislation.
Ivanhoe Electric retained BBA to facilitate a
scored likelihood × consequence matrix workshop to identify development risks. Table 22-1 of the full 2026 PFS identifies what
are currently deemed to be the most significant Project risks, potential impacts, and possible mitigation approaches that could reasonably
affect the reliability or confidence of the Project.
Opportunities that could enhance the Project's
economics and timing are summarized in Table 22-2 of the full 2026 PFS, excluding those typical to all mining projects, such as changes
in metal prices, exchange rates, etc. Further information and assessments are needed before including these opportunities in the
Project economics.
Conclusions
Under the assumptions presented in the 2026 PFS,
the Santa Cruz Copper Project consists of Mineral Resource and Mineral Reserve estimates that support a positive cash flow.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
23.1
Consent
of BBA Consultants USA LP
23.2
Consent
of Worley Group Inc.
23.3
Consent
of Burns & McDonnell Engineering Company, Inc.
23.4
Consent
of Haley & Aldrich, Inc.
23.5
Consent
of INTERA Incorporated
23.6
Consent
of KCB Consultants Ltd.
23.7
Consent
of Life Cycle Geo, LLC
23.8
Consent
of Met Engineering, LLC
23.9
Consent
of Paterson & Cooke USA, Ltd.
23.10
Consent
of Stantec Consulting Services Inc.
23.11
Consent
of Tetra Tech, Inc.
99.1
S-K
1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz Copper Project, Arizona, prepared by BBA Consultants
USA LP, Worley Group Inc., Burns & McDonnell Engineering Company, Inc., Haley & Aldrich, Inc., INTERA
Incorporated, KCB Consultants Ltd., Life Cycle Geo, LLC, Met Engineering, LLC, Paterson & Cooke USA, Inc., Stantec
Consulting Services Inc., and Tetra Tech, Inc., dated September 23, 2026
99.2
Press
Release dated September 23, 2026
99.3
Slideshow
from Conference Call
104
Cover
Page Interactive Data File (embedded with the inline XBRL document)
Forward Looking Statements
The Company cautions you that statements included
in this Current Report on Form 8-K that are not a description of historical facts are “forward-looking statements” or
“forward-looking information” within the meaning of applicable US and Canadian securities laws. Such statements and information
involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the
Company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed
or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may,”
“would,” “could”, “will,” “intend,” “expect,” “believe,” “plan,”
“anticipate,” “estimate,” “scheduled,” “forecast,” “predict” and other similar
terminology, or state that certain actions, events or results “may,” “could,” “would,” “might”
or “will” be taken, occur or be achieved. These statements reflect Ivanhoe Electric’s current expectations regarding
future events, performance and results and speak only as of the date of this Current Report on Form 8-K.
Such statements may include, without limitation:
the projections, assumptions and estimates contained in the Preliminary Feasibility Study related to the Santa Cruz Copper Project, including
but not limited to those related to capital and operating costs, metal prices, cash flow, cash costs, revenue, net present value, internal
rate of return, mine design and mining techniques and processes, copper production, grade and recoveries, development, throughput, life
of mine, illustrative timelines related to mine construction, permitting and copper production, potential financing, jobs during construction
and operations, mine sequencing, mining technology, equipment, staffing and infrastructure, emissions, use of land, water management
and estimates regarding groundwater flow, power and other resources, estimates of mineral resources and reserves, potential for expansion
of mineral resources, copper grade and cash costs relative to other mines, use of renewable energy, use of energy storage technologies,
the ability to produce pure copper cathode, the ability to secure state and local permits, and planned or potential developments in the
businesses of the Company.
Forward-looking statements are based on the author’s
beliefs and assumptions and on information currently available. Such statements are subject to significant risks and uncertainties, and
actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including
fluctuations in metal prices; risks related to inflation and changes in interest rates, discount rates, exchange rates, and taxes; risks
due to the inherently hazardous nature of mining-related activities; uncertainties due to health and safety considerations; uncertainties
related to environmental considerations, including, without limitation, climate change; uncertainties relating to obtaining approvals
and permits, including renewals, from governmental regulatory authorities; uncertainties related to changes in law; uncertainty related
to the availability and terms of capital; and those risk factors described in the Company’s Annual Report on Form 10-K and
other disclosures made by the Company with the U.S. Securities and Exchange Commission and Canadian securities regulators.
Although the authors believe that the assumptions
and factors used in preparing the forward-looking statements in this Current Report on Form 8-K are reasonable, undue reliance should
not be placed on such forward-looking statements, which only apply as of the date of this Current Report on Form 8-K, and no assurance
can be given that such events will occur in the disclosed time frames or at all. The authors disclaim any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, other than as required
by applicable law.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
IVANHOE ELECTRIC INC.
Date: September 23,
2026
By:
/s/ Taylor
Melvin
Taylor Melvin
President and Chief Executive Officer
EX-23.1 — EXHIBIT 23.1
EX-23.1
Filename: tm2625798d1_ex23-1.htm · Sequence: 2
Exhibit 23.1
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
BBA Consultants USA LP is
the authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz
Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the “Project”)
which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations (Title 17, Part 229, Items
601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
BBA Consultants USA LP understands
that the Company wishes to make reference to BBA Consultants USA LP’s name and the Expert Report in its Current Report on Form 8-K
dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration Statements.
BBA Consultants USA LP further understands that the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K
related to the Project. BBA Consultants USA LP has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure
identified above.
Accordingly, BBA Consultants USA LP does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
BBA Consultants USA LP
BBA Consultants USA LP
EX-23.2 — EXHIBIT 23.2
EX-23.2
Filename: tm2625798d1_ex23-2.htm · Sequence: 3
Exhibit 23.2
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Worley Group Inc. is the authoring
firm only for the portions of the technical report summary titled “S-K 1300 Preliminary Feasibility Study & Technical Report
Summary, Santa Cruz Copper Project, Arizona,” dated September 23, 2026, relating to the Santa Cruz Project, that were prepared by,
supervised by, or reviewed and approved by Worley Group Inc. in accordance with Subpart 1300 of Regulation S-K and Item 601(b)(96) of
Regulation S-K (the “Technical Report Summary”).
Worley Group Inc. understands
that the Company wishes to refer to Worley Group Inc. and the Technical Report Summary in the Company’s Current Report on Form 8-K
dated the date hereof (the “Form 8-K”) and to incorporate those references into the Registration Statements identified above.
Worley Group Inc. has reviewed only the disclosure in the Form 8-K that refers to Worley Group Inc. or to the portions of the Technical
Report Summary for which Worley Group Inc. is responsible.
Accordingly, Worley Group Inc. consents to:
· references to Worley Group Inc. in the Form 8-K solely in connection
with the portions of the Technical Report Summary for which Worley Group Inc. is responsible;
· filing and use of the Technical Report Summary as an exhibit
to the Form 8-K;
· inclusion in the Form 8-K of extracts or summaries from those
portions; and
· incorporation by reference of the foregoing into the Registration
Statements identified above.
Nothing in this consent expands
Worley Group Inc.’s responsibility beyond the portions of the Technical Report Summary prepared by, supervised by, or reviewed and
approved by Worley Group Inc.
Worley Group Inc. assumes
no responsibility for any other disclosure in the Form 8-K or Registration Statements and has no obligation to update, revise, or supplement
this consent or the Technical Report Summary after the date hereof.
Dated: September 23, 2026
By:
/s/
Worley Group Inc.
Worley Group Inc.
EX-23.3 — EXHIBIT 23.3
EX-23.3
Filename: tm2625798d1_ex23-3.htm · Sequence: 4
Exhibit 23.3
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Burns & McDonnell Engineering
Company, Inc. is the authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report
Summary, Santa Cruz Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz
Project (the “Project”) which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”)
S-K regulations (Title 17, Part 229, Items 601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Burns & McDonnell Engineering
Company, Inc. understands that the Company wishes to make reference to Burns & McDonnell Engineering Company, Inc.’s name and
the Expert Report in its Current Report on Form 8-K dated the date hereof (the “Form 8-K”), and to incorporate by
reference certain information in the Registration Statements. Burns & McDonnell Engineering Company, Inc. further understands that
the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K related to the Project. Burns &
McDonnell Engineering Company, Inc. has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure identified
above.
Accordingly, Burns & McDonnell Engineering Company, Inc.
does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Burns & McDonnell Engineering Company, Inc.
Burns & McDonnell Engineering Company, Inc.
EX-23.4 — EXHIBIT 23.4
EX-23.4
Filename: tm2625798d1_ex23-4.htm · Sequence: 5
Exhibit 23.4
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Haley & Aldrich, Inc.
is the authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa
Cruz Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the
“Project”) which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations
(Title 17, Part 229, Items 601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Haley & Aldrich, Inc.
understands that the Company wishes to make reference to Haley & Aldrich, Inc.’s name and the Expert Report in its Current Report
on Form 8-K dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration
Statements. Haley & Aldrich, Inc. further understands that the Company wishes to use extracts and/or information from the Expert Report
in the Form 8-K related to the Project. Haley & Aldrich, Inc. has been provided with a copy of the Form 8-K, and has reviewed
the proposed disclosure identified above.
Accordingly, Haley & Aldrich, Inc. does hereby consent
to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Haley & Aldrich, Inc.
Haley & Aldrich, Inc.
EX-23.5 — EXHIBIT 23.5
EX-23.5
Filename: tm2625798d1_ex23-5.htm · Sequence: 6
Exhibit 23.5
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
INTERA Incorporated is the
authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz
Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the “Project”)
which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations (Title 17, Part 229, Items
601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
INTERA Incorporated understands
that the Company wishes to make reference to INTERA Incorporated’s name and the Expert Report in its Current Report on Form 8-K
dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration Statements.
INTERA Incorporated further understands that the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K
related to the Project. INTERA Incorporated has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure
identified above.
Accordingly, INTERA Incorporated does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
INTERA Incorporated
INTERA Incorporated
EX-23.6 — EXHIBIT 23.6
EX-23.6
Filename: tm2625798d1_ex23-6.htm · Sequence: 7
Exhibit 23.6
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
KCB Consultants Ltd. is the
authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz
Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the “Project”)
which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations (Title 17, Part 229, Items
601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
KCB Consultants Ltd. understands
that the Company wishes to make reference to KCB Consultants Ltd.’s name and the Expert Report in its Current Report on Form 8-K
dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration Statements.
KCB Consultants Ltd. further understands that the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K
related to the Project. KCB Consultants Ltd. has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure
identified above.
Accordingly, KCB Consultants Ltd. does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
KCB Consultants Ltd.
KCB Consultants Ltd.
EX-23.7 — EXHIBIT 23.7
EX-23.7
Filename: tm2625798d1_ex23-7.htm · Sequence: 8
Exhibit 23.7
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Life Cycle Geo, LLC is the
authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz
Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the “Project”)
which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations (Title 17, Part 229, Items
601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Life Cycle Geo, LLC understands
that the Company wishes to make reference to Life Cycle Geo, LLC’s name and the Expert Report in its Current Report on Form 8-K
dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration Statements.
Life Cycle Geo, LLC further understands that the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K
related to the Project. Life Cycle Geo, LLC has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure
identified above.
Accordingly, Life Cycle Geo, LLC does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Life Cycle Geo, LLC
Life Cycle Geo, LLC
EX-23.8 — EXHIBIT 23.8
EX-23.8
Filename: tm2625798d1_ex23-8.htm · Sequence: 9
Exhibit 23.8
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Met Engineering, LLC is the
authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz
Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the “Project”)
which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations (Title 17, Part 229, Items
601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Met Engineering, LLC understands
that the Company wishes to make reference to Met Engineering, LLC’s name and the Expert Report in its Current Report on Form 8-K
dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration Statements.
Met Engineering, LLC further understands that the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K
related to the Project. Met Engineering, LLC has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure
identified above.
Accordingly, Met Engineering, LLC does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Met Engineering, LLC
Met Engineering, LLC
EX-23.9 — EXHIBIT 23.9
EX-23.9
Filename: tm2625798d1_ex23-9.htm · Sequence: 10
Exhibit 23.9
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Paterson & Cooke USA,
Ltd. is the authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary,
Santa Cruz Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project
(the “Project”) which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K
regulations (Title 17, Part 229, Items 601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Paterson & Cooke USA,
Ltd. understands that the Company wishes to make reference to Paterson & Cooke USA, Ltd.’s name and the Expert Report in its
Current Report on Form 8-K dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information
in the Registration Statements. Paterson & Cooke USA, Ltd. further understands that the Company wishes to use extracts and/or information
from the Expert Report in the Form 8-K related to the Project. Paterson & Cooke USA, Ltd. has been provided with a copy of the
Form 8-K, and has reviewed the proposed disclosure identified above.
Accordingly, Paterson & Cooke USA, Ltd. does hereby consent
to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Paterson & Cooke USA, Ltd.
Paterson & Cooke USA, Ltd.
EX-23.10 — EXHIBIT 23.10
EX-23.10
Filename: tm2625798d1_ex23-10.htm · Sequence: 11
Exhibit 23.10
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Stantec Consulting Services
Inc. is the authoring firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary,
Santa Cruz Copper Project, Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project
(the “Project”) which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K
regulations (Title 17, Part 229, Items 601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Stantec Consulting Services
Inc. understands that the Company wishes to make reference to Stantec Consulting Services Inc.’s name and the Expert Report in its
Current Report on Form 8-K dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information
in the Registration Statements. Stantec Consulting Services Inc. further understands that the Company wishes to use extracts and/or information
from its portion of the Expert Report in the Form 8-K related to the Project. Stantec Consulting Services Inc. has been provided
with a copy of the Form 8-K, and has reviewed the proposed disclosure identified above.
Accordingly, Stantec Consulting Services Inc. does hereby
consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, its portion of the Expert Report
in the Form 8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information related
to the work performed by it from the Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Stantec Consulting Services Inc.
Stantec Consulting Services Inc.
EX-23.11 — EXHIBIT 23.11
EX-23.11
Filename: tm2625798d1_ex23-11.htm · Sequence: 12
Exhibit 23.11
Consent
To: Ivanhoe Electric Inc. (the “Company”)
Re: Current Report on Form 8-K and the Registration Statements
on Form S-3 (File No. 333-295464, 333-269029 and 333-280018) and Form S-8 (File Nos. 333-274241, 333-269490, 333-266227,
333-277101 and 333-284755) (collectively, the “Registration Statements”) of the Company.
Tetra Tech, Inc. is the authoring
firm of parts of the report titled “S-K 1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz Copper Project,
Arizona” dated September 23, 2026, regarding the mining property known as the Santa Cruz Project (the “Project”)
which was prepared in accordance with the U.S. Securities and Exchange Commission (“SEC”) S-K regulations (Title 17, Part 229, Items
601 and 1300 through 1305) for Ivanhoe Electric Inc. (the “Expert Report”).
Tetra Tech, Inc. understands
that the Company wishes to make reference to Tetra Tech, Inc.’s name and the Expert Report in its Current Report on Form 8-K
dated the date hereof (the “Form 8-K”), and to incorporate by reference certain information in the Registration Statements.
Tetra Tech, Inc. further understands that the Company wishes to use extracts and/or information from the Expert Report in the Form 8-K
related to the Project. Tetra Tech, Inc. has been provided with a copy of the Form 8-K, and has reviewed the proposed disclosure
identified above.
Accordingly, Tetra Tech, Inc. does hereby consent to:
· the use of, and references to, its name in the Form 8-K;
· the use of, and references to, the Expert Report in the Form
8-K, including the filing of the Expert Report as an exhibit to the Form 8-K;
· the use of, in the Form 8-K, extracts and information from the
Expert Report, or portions thereof; and
· the incorporation by reference of the foregoing items in the
Registration Statements.
Dated: September 23, 2026
By:
/s/
Tetra Tech, Inc.
Tetra Tech, Inc.
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: tm2625798d1_ex99-1.htm · Sequence: 13
Exhibit 99.1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Forward-Looking
Statements
Certain statements
in this Technical Report Summary constitute “forward-looking statements” or “forward-looking information” within
the meaning of applicable US and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results,
to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements
or information. Such statements can be identified by the use of words such as “may,” “would,” “could”,
“will,” “intend,” “expect,” “believe,” “plan,” “anticipate,”
“estimate,” “scheduled,” “forecast,” “predict” and other similar terminology, or state
that certain actions, events or results “may,” “could,” “would,” “might” or “will”
be taken, occur or be achieved. These statements reflect Ivanhoe Electric’s current expectations regarding future events, performance
and results and speak only as of the date of this Technical Report Summary.
Such statements
in this Technical Report Summary include, without limitation: the projections, assumptions and estimates related to the Santa Cruz Copper
Project, including, without limitation, those relating to development, capital and operating costs, production, grade, recoveries, metal
prices, life of mine, mine sequencing, economic assumptions such as capital expenditures, cash flow and revenue, mine design, mining
techniques and processes, timing of estimated production, equipment, staffing, emissions, use of land, estimates of mineral resources,
use of energy storage technologies; the ability to produce 99.99% pure copper cathode; and the ability to secure state and local permits
for the Santa Cruz Copper Project.
Forward-looking
statements are based on the author’s beliefs and assumptions and on information currently available. Such statements are subject
to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking
statements due to various factors, including fluctuations in metal prices; risks related to inflation and changes in interest rates,
discount rates, exchange rates, and taxes; risks due to the inherently hazardous nature of mining- related activities; uncertainties
due to health and safety considerations; uncertainties related to environmental considerations, including, without limitation, climate
change; uncertainties relating to obtaining approvals and permits, including renewals, from governmental regulatory authorities; uncertainties
related to changes in law; uncertainty related to the availability and terms of capital; and those risk factors described in Ivanhoe
Electric’s Annual Report on Form 10-K and other disclosures made by Ivanhoe Electric with the U.S. Securities and Exchange
Commission and Canadian securities regulators.
Although the authors
believes that the assumptions and factors used in preparing the forward-looking statements in this Technical Report are reasonable, undue
reliance should not be placed on such forward-looking statements, which only apply as of the date of this Technical Report, and no assurance
can be given that such events will occur in the disclosed time frames or at all. The authors disclaim any intention or obligation to
update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, other than as required
by applicable law.
SEPTEMBER 2026
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Date and Signature
Page
Report Date: September 23,
2026
Prepared by Qualified
Persons from the following Third-Party Companies:
/s/
BBA Consultants USA LP
BBA Consultants USA LP
September 23, 2026
/s/
Worley Group Inc.
Worley Group Inc.
September 23, 2026
/s/
Burns & McDonnell Engineering Company, Inc.
Burns & McDonnell
Engineering Company, Inc.
September 23, 2026
/s/
Haley & Aldrich, Inc.
Haley & Aldrich, Inc.
September 23, 2026
/s/
INTERA Incorporated
INTERA Incorporated
September 23, 2026
SEPTEMBER 2026 SCP-SR-REP-0010
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
/s/
KCB Consultants Ltd.
KCB Consultants Ltd.
September 23, 2026
/s/
Life Cycle Geo, LLC
Life Cycle Geo, LLC
September 23, 2026
/s/
Met Engineering, LLC
Met Engineering, LLC
September 23, 2026
/s/
Paterson & Cooke USA, Ltd.
Paterson & Cooke USA, Ltd.
September 23, 2026
/s/
Stantec Consulting Services Inc.
Stantec Consulting Services
Inc.
September 23, 2026
/s/
Tetra Tech, Inc.
Tetra Tech, Inc.
September 23, 2026
SEPTEMBER 2026 SCP-SR-REP-0010
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
TABLE OF CONTENTS
1.
Executive
Summary
1-1
1.1
Introduction
1-1
1.2
Terms
of Reference
1-1
1.3
Property
Setting
1-2
1.4
Mineral
Tenure, Ownership, Surface Rights, and Royalties
1-4
1.4.1
Agreements &
Permits
1-4
1.4.2
Mineral
Tenure
1-4
1.4.3
Surface &
Water Rights
1-6
1.4.4
Royalties
1-7
1.5
History
1-8
1.6
Geology &
Mineralization
1-8
1.7
Exploration,
Drilling & Sampling
1-9
1.8
Data
Verification
1-10
1.9
Metallurgical
Testwork
1-11
1.10
Mineral
Resource Estimate
1-11
1.10.1
Estimation
Methodology
1-11
1.10.2
Mineral
Resource Statement
1-12
1.10.3
Factors
That May Affect the Mineral Resource Estimate
1-15
1.11
Mineral
Reserve Estimate
1-15
1.11.1
Estimation
Methodology
1-15
1.11.2
Mineral
Reserve Statement
1-17
1.11.3
Factors
That May Affect the Mineral Reserve Estimate
1-19
1.12
Mining
Methods
1-19
1.13
Recovery
Methods
1-23
1.14
Infrastructure
1-27
1.15
Market
Studies & Contracts
1-29
1.16
Environmental,
Closure & Permitting
1-30
1.17
Capital &
Operating Cost Estimates
1-32
1.17.1
Capital
Cost Estimate
1-32
SEPTEMBER 2026 i
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.17.2
Operating
Cost Estimate
1-33
1.18
Economic
Analysis
1-33
1.19
Risks &
Opportunities
1-35
1.20
Conclusions
1-35
1.21
Recommendations
1-35
2.
Introduction
2-1
2.1
Registrant
for Whom the Report was Prepared
2-1
2.2
Purpose
of the Report
2-1
2.3
Terms
of Reference
2-1
2.4
Report
Date
2-2
2.5
Previous
Technical Report Summaries
2-2
2.6
Qualified
Persons
2-2
2.7
Site
Visits & Scope of Personal Inspection
2-2
2.8
Information
Sources
2-2
3.
Property
Description
3-1
3.1
Location
3-1
3.2
Property &
Mineral Title
3-1
3.2.1
Fee Simple
3-1
3.2.2
Lode Mining
Claims
3-1
3.2.3
Arizona
State Land Department Mineral Exploration Permits
3-2
3.2.4
Stock-Raising
Homestead Act
3-2
3.3
Ownership
3-3
3.3.1
Mineral
Title Ownership
3-3
3.3.2
Surface
Title Ownership
3-13
3.3.3
Water
Rights
3-14
3.4
Royalties
3-14
3.5
Encumbrances
3-15
3.5.1
Environmental
Assessments
3-15
3.6
Violations &
Fines
3-16
3.7
Significant
Factors & Risks that May Affect Access, Title, or Work Programs
3-16
SEPTEMBER 2026 ii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
4.
Accessibility,
Climate, Local Resources, Infrastructure and Physiography
4-1
4.1
Climate
4-1
4.2
Local
Resources
4-1
4.3
Physiography
4-2
5.
History
5-1
5.1
Historical
Exploration
5-1
6.
Geological
Setting, Mineralization & Deposit
6-1
6.1
Regional
Geology
6-1
6.2
Metallogenic
Setting
6-2
6.3
Santa
Cruz Copper Project Geology
6-4
6.3.1
Santa
Cruz Bedrock Lithologies
6-5
6.3.2
Basin
Fill Lithologies
6-6
6.3.3
Alteration
6-9
6.3.4
Structural
Geology
6-10
6.3.5
Property
Mineralization
6-10
6.4
Deposit
Types
6-16
7.
Exploration
and Drilling
7-1
7.1
Geophysics
and Geochemistry
7-1
7.1.1
Geophysical
Exploration
7-1
7.1.2
Geochemical
Exploration
7-7
7.1.3
Qualified
Person’s Interpretation of the Exploration Information
7-8
7.2
Drilling
7-8
7.2.1
Historical
Drilling
7-8
7.2.2
Ivanhoe
Electric Drilling Programs
7-10
7.3
Geotechnical
7-18
7.3.1
Sampling
Methods & Laboratory Determinations
7-18
7.3.2
Comment
on Results
7-19
7.4
Hydrogeological
Investigations
7-19
7.4.1
Hydrogeological
Data Collection
7-19
7.4.2
Hydrogeological
Conceptual Site Model
7-22
SEPTEMBER 2026 iii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
7.4.3
Groundwater
Flow Model & Results
7-23
7.4.4
Comment
on Results
7-25
8.
Sample
Preparation, Analysis & Security
8-1
8.1
Assay
Laboratory Selection
8-1
8.1.1
2021 to
2022
8-2
8.1.2
2023 to
2026
8-2
8.1.3
Ionic
Leach
8-2
8.2
Sample
Preparation & Analysis
8-3
8.2.1
Skyline
Assayers & Laboratories
8-3
8.2.2
SGS Laboratories
8-3
8.2.3
ALS Laboratories
8-4
8.2.4
American
Assay Laboratories
8-5
8.2.5
Historical
Core Assay Sample & Analysis
8-5
8.3
Quality
Assurance/Quality Control Procedures
8-5
8.3.1
2021 to
2022
8-5
8.3.2
2023 to
2026
8-5
8.3.3
Santa
Cruz Sampling
8-6
8.3.4
East Ridge &
Texaco Sampling
8-8
8.4
Density
8-8
8.5
Security &
Storage
8-9
8.6
BBA
Opinion
8-9
9.
Data
Verification
9-1
9.1
Data
Verification Procedures
9-1
9.2
BBA
Site Visit
9-1
9.3
Field
Collar Validation
9-2
9.4
Core
Logging, Sampling & Storage Facilities
9-2
9.5
Independent
Sampling
9-4
9.6
Twin
Hole Analysis
9-5
9.7
Database
Validation
9-5
9.8
Review
of Company’s QA/QC
9-6
SEPTEMBER 2026 iv
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
9.9
BBA
Opinion
9-6
10.
Mineral
Processing & Metallurgical Testing
10-1
10.1
Test
Laboratories
10-1
10.2
Metallurgical
Testwork
10-1
10.2.1
Column
Leach Testing
10-1
10.3
Metallurgical
Variability
10-14
10.4
Deleterious
Elements
10-14
10.5
Met
Engineering Opinion
10-15
11.
Mineral
Resource Estimates
11-1
11.1
Deposits
11-1
11.2
Drillhole
Database
11-1
11.3
Geological
Domaining
11-2
11.4
Data
Preparation
11-7
11.4.1
Exploratory
Data Analysis
11-7
11.4.2
Assay
Intervals at Minimum Detection Limits
11-8
11.4.3
Compositing
11-8
11.4.4
Outlier
Analysis & Capping
11-8
11.4.5
Density
11-8
11.4.6
Block
Model Strategy & Analysis
11-10
11.4.7
Assessment
of Spatial Grade Continuity
11-10
11.4.8
Block
Model Definition
11-15
11.4.9
Search
Strategy
11-15
11.5
Block
Model Validation
11-19
11.5.1
Statistical
Comparison
11-19
11.5.2
Visual
Comparison
11-19
11.5.3
Swath
Plots
11-23
11.6
Mineral
Resource Classification
11-24
11.7
Commodity
Pricing
11-25
11.8
Reasonable
Prospects of Economic Extraction
11-25
11.9
Net
Smelter Return Cutoff
11-28
SEPTEMBER 2026 v
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.10
Mineral
Resource Estimate
11-29
11.11
Mineral
Resource Sensitivity to Reporting Cutoff
11-36
11.12
Differences
in Resource Model Iterations
11-37
11.13
Factors
That May Affect Mineral Resources
11-37
11.14
BBA
Opinion
11-38
12.
Mineral
Reserve Estimate
12-1
12.1
Basis
of Estimate
12-1
12.2
Underground
Mine Estimates
12-1
12.2.1
Santa
Cruz
12-2
12.2.2
Verde
12-4
12.2.3
East Ridge
12-5
12.3
Net
Smelter Return & Cutoff Value
12-6
12.4
Mineral
Reserve Estimate
12-7
12.5
Factors
That May Affect Mineral Reserves
12-10
13.
Mining
Methods
13-1
13.1
Introduction
13-1
13.2
Geotechnical
Considerations
13-1
13.3
Mining
Zones
13-3
13.4
Ground
Support
13-4
13.5
Secondary
Support
13-8
13.6
Boxcut &
Decline Access
13-8
13.7
Groundwater
13-8
13.7.1
Faults &
Grouting Program
13-8
13.7.2
Ramp Dewatering
13-8
13.7.3
Mining
Area Dewatering
13-9
13.8
Mining
Areas
13-10
13.8.1
Dilution
13-10
13.8.2
Longhole
Stoping Dilution
13-11
13.8.3
Drift-and-Fill
Dilution
13-11
13.8.4
Mining
Recovery Factor
13-11
SEPTEMBER 2026 vi
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
13.8.5
Development
Allowance
13-12
13.9
Mine
Design
13-12
13.9.1
Santa
Cruz Orebody – Transverse Longhole Stoping
13-12
13.9.2
Verde
Orebody – Longhole Stoping
13-14
13.9.3
East Ridge
Orebody– Longitudinal Longhole Stoping
13-14
13.9.4
East Ridge
– Drift-and-Fill
13-15
13.9.5
Development
13-16
13.10
Production
Schedule
13-19
13.11
Mining
Operations
13-22
13.11.1
Capital
vs. Operating Development
13-22
13.11.2
Underground
Material Handling System
13-23
13.11.3
Backfill
13-26
13.11.4
Grade
Control
13-29
13.11.5
Mine Ventilation &
Refrigeration
13-29
13.11.6
Underground
Infrastructure
13-33
13.11.7
Personnel
13-33
13.11.8
Mining
Equipment Fleet
13-34
14.
Process &
Recovery Methods
14-1
14.1
Process
Method Selection
14-1
14.1.1
Processing
Overview & Flowsheets
14-1
14.2
Metallurgical
Design Basis
14-2
14.3
Process
Description
14-3
14.3.1
Major
Process Equipment Design Criteria and Selection
14-3
14.4
Crushing,
Agglomeration & Stacking
14-4
14.4.1
Crushing
14-4
14.4.2
Agglomeration
14-5
14.4.3
Stacking
14-5
14.5
On/Off
Heap Leach
14-5
14.5.1
On/Off
Heap Leach Pad
14-5
14.5.2
Solution
Management
14-6
14.5.3
Heap Leach
Process
14-9
SEPTEMBER 2026 vii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
14.5.4
Spent
Ore Management
14-11
14.5.5
Copper
Separation (Solvent Extraction)
14-11
14.6
Electrowinning
14-12
14.6.1
Reagent
Preparation & Distribution
14-13
14.7
Raw
Water
14-13
14.8
Air
Supply
14-14
14.9
Power
14-14
14.10
Personnel
14-14
15.
Infrastructure
15-1
15.1
Surface
Infrastructure
15-1
15.1.1
Roads &
Logistics
15-2
15.1.2
On/Off
Leach Pads
15-2
15.1.3
Spent
Ore Storage Facilities
15-3
15.1.4
Power &
Electrical
15-3
15.1.5
Gas Pipelines
15-5
15.1.6
Water
Supply
15-5
15.1.7
Water
Management
15-6
15.1.8
Built
Infrastructure
15-8
15.2
QP
Opinion
15-9
16.
Market
Study
16-1
16.1
Market
Information
16-1
16.2
Study
Price & Sales Terms
16-1
16.3
Contracts
16-2
17.
Environmental
Studies, Permitting & Plans, Negotiations or Agreements with Local Individuals or Groups
17-1
17.1
Baseline &
Supporting Studies
17-1
17.1.1
Flora &
Fauna
17-1
17.1.2
Special
Status Species
17-2
17.1.3
Migratory
Bird Treaty Act
17-3
17.1.4
Surface
Water Mapping
17-3
17.1.5
Cultural
Heritage
17-5
SEPTEMBER 2026 viii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
17.1.6
Air
Quality
17-5
17.1.7
Carbon
Intensity
17-6
17.1.8
Surface
Water Monitoring
17-8
17.1.9
Groundwater
Monitoring & Water Quality
17-9
17.1.10
Material
Characterization & Water Quality Predictions
17-10
17.1.11
Mine Material
Environmental Behavior
17-12
17.1.12
Soil Handling
17-14
17.2
Permitting &
Authorizations
17-15
17.3
Waste &
Spent Ore Disposal, Site Monitoring, & Water Management
17-18
17.4
Post-Performance
or Reclamations Bonds
17-20
17.5
Status
of Permit Applications
17-20
17.5.1
Arizona
State Mine Inspector – Reclamation Plan
17-20
17.5.2
Arizona
Department of Environmental Quality – Aquifer Protection Permit
17-21
17.5.3
Known
Requirements for Post-Performance or Reclamation Bonds
17-21
17.6
Mine
Closure
17-21
17.6.1
Waste,
Development Rock, Heap Leach & Spent Ore Closure & Reclamation Approach
17-22
17.6.2
General
Grading & Revegetation Approach
17-22
17.6.3
Process
Area & Pond Closure Reclamation Approach
17-22
17.6.4
Structural
Decommissioning Approach
17-23
17.6.5
Underground
Operations Closure Approach
17-23
17.6.6
Aquifer
Restoration & Post-Closure Monitoring Approach
17-24
17.7
Local
Individuals & Groups
17-25
17.8
QP
Opinion
17-26
18.
Capital &
Operating Costs
18-1
18.1
Basis
for Cost Estimates
18-1
18.1.1
Mining
Costs
18-1
18.1.2
Process
and Infrastructure Costs
18-2
18.2
Capital
Cost Estimate
18-3
18.2.1
Mining
Capital Costs
18-4
18.2.2
Process
Facilities & Infrastructure Capital Costs
18-5
18.2.3
Owner’s
Costs and Indirects
18-5
SEPTEMBER 2026 ix
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
18.2.4
Engineering
Procurement and Construction Management
18-6
18.3
Operating
Cost Estimate
18-6
18.3.1
Mine Operating
Costs
18-7
18.3.2
Process
and Infrastructure Operating Costs
18-10
18.3.3
General &
Administrative Operating Costs
18-12
19.
Economic
Analysis
19-1
19.1
Methodology
Used
19-1
19.2
Financial
Model Parameters
19-1
19.2.1
Pricing
19-2
19.2.2
Royalties
19-2
19.2.3
Taxes
19-2
19.2.4
Working
Capital
19-2
19.3
Economic
Analysis
19-3
19.4
Sensitivity
Analysis
19-8
20.
Adjacent
Properties
20-1
21.
Other
Relevant Data & Information
21-1
22.
Interpretations &
Conclusions
22-1
22.1
Introduction
22-1
22.2
Property
Setting
22-1
22.3
Mineral
Tenure, Surface Rights, Water Rights, Royalties & Agreements
22-1
22.4
Geology &
Mineralization
22-2
22.5
History
22-2
22.6
Exploration,
Drilling & Sampling
22-2
22.7
Data
Verification
22-3
22.8
Metallurgical
Testwork
22-3
22.9
Mineral
Resource Estimates
22-4
22.10
Mineral
Reserve Estimates
22-4
22.11
Mining
Methods
22-5
22.12
Recovery
Methods
22-5
22.13
Infrastructure
22-5
SEPTEMBER 2026 x
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
22.14
Market
Studies
22-6
22.15
Environmental,
Permitting & Social Considerations
22-6
22.16
Capital
Cost Estimates
22-7
22.17
Operating
Cost Estimates
22-7
22.18
Economic
Analysis
22-7
22.19
Risks &
Opportunities
22-8
22.19.1
Risks
22-8
22.19.2
Opportunities
22-13
22.20
Conclusions
22-14
23.
Recommendations
23-1
23.1
Recommended
Work Program Budget
23-1
23.2
Permitting &
Environmental
23-1
23.3
Detailed
Engineering
23-2
23.3.1
Surface
23-2
23.3.2
Underground
23-2
23.4
Long-Lead
Items
23-3
23.5
Project
Support
23-3
24.
References
24-1
24.1
List
of References
24-1
24.2
Units
of Measurement & Abbreviations
24-5
25.
Reliance
on Information Provided by the Registrant
25-1
25.1
Introduction
25-1
25.2
Macroeconomic
Trends
25-1
25.3
Markets
25-1
25.4
Legal
Matters
25-1
25.5
Environmental
Matters
25-2
25.6
Stakeholder
Accommodations
25-2
25.7
Governmental
Factors
25-2
SEPTEMBER 2026 xi
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
LIST
OF TABLES
Table 1-1: Summary of Ivanhoe Electric’s
Mineral Control
1-4
Table 1-2: Royalties Applying to the Santa Cruz
Copper Project
1-7
Table 1-3: In-situ Mineral Resource Estimate
Inclusive of Reserves
1-13
Table 1-4: In-situ Mineral Resource Estimate
Exclusive of Reserves
1-14
Table 1-5: NSR Parameters
1-16
Table 1-6: Operating Costs for Cutoff Value Calculations
1-17
Table 1-7: Santa Cruz Copper Project Mineral
Reserve Estimate
1-18
Table 1-8: Santa Cruz Scheduled Production Summary
1-21
Table 1-9: Commodity Price Summary
1-30
Table 1-10: Estimated Total Capital Cost
1-32
Table 1-11: Estimated Operating Costs
1-33
Table 1-12: Financial Analysis Summary
1-34
Table 1-13: Recommended Work Program Budget
1-35
Table 2-1: Qualified Person Contributions
2-3
Table 2-2: Site Visit
2-4
Table 3-1: Summary of Ivanhoe Electric’s
Mineral Title
3-4
Table 3-2: Unpatented Mining Lode Claims
3-5
Table 3-3: Royalties Applying to the Santa Cruz
Copper Project
3-14
Table 5-1: Project History
5-2
Table 6-1: Deposit & Mineralization
Summary of the Santa Cruz Copper Project
6-11
Table 7-1: Geophysical Assessments Conducted
on the Santa Cruz and Texaco Deposits
7-2
Table 7-2: Summary of Available Data by Region
7-9
Table 7-3: Drillhole Summary by Year
7-13
Table 7-4: Drillhole Summary by Deposit
7-13
Table 7-5: Number of Assays by Assay Type &
Deposit
7-13
Table 7-6: Drilling Equipment & Contractors
7-16
Table 7-7: HGU Hydraulic Conductivity Estimates
from Current & Historical Tests
7-22
Table 8-1: Labs Used for Analysis &
Time Periods
8-1
SEPTEMBER 2026 xii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 8-2: Santa Cruz Copper Project
Density Measurements
8-9
Table 9-1: Original Assay Values vs. BBA Check
Sample Assay Values
9-4
Table 10-1: Sample Selection for Master Composites
for Column Leach Testing
10-3
Table 10-2: Master Composite Samples
10-7
Table 10-3: Selected Leach Residue Samples
10-7
Table 10-4: Estimated Sequential Copper Recoveries
to Cathode
10-13
Table 11-1: Santa Cruz, East Ridge &
Texaco Geological Domains
11-2
Table 11-2: Volume of Santa Cruz Wireframe Domains
11-6
Table 11-3: Density Values Measured for the Project
by Geological and Resource Domain
11-9
Table 11-4: Santa Cruz Variography Parameters
11-12
Table 11-5: East Ridge Variography Parameters
11-14
Table 11-6: Texaco Variography Parameters
11-14
Table 11-7: Block Model Definition Parameters
11-15
Table 11-8: Santa Cruz Block Model Search Parameters
11-16
Table 11-9: East Ridge Block Model Search Parameters
11-17
Table 11-10: Texaco Block Model Search Parameters
11-18
Table 11-11: Input Parameter Assumptions
11-27
Table 11-12: Smelting Terms – Copper Concentrate
Input Assumptions
11-28
Table 11-13: In-situ Mineral Resource Estimate
Inclusive of Mineral Reserves
11-30
Table 11-14: In-situ Mineral Resource Estimate
Exclusive of Mineral Reserves
11-31
Table 11-15: In-situ Santa Cruz Deposit Mineral
Resource Estimate Exclusive of Reserves
11-32
Table 11-16: In-situ East Ridge Deposit Mineral
Resource Estimate Exclusive of Reserves
11-33
Table 11-17: In-situ Texaco Deposit Mineral Resource
Estimate
11-34
Table 12-1: Summary of Stope Sizes by Domain &
Sequence
12-2
Table 12-2: NSR Parameters
12-6
Table 12-3: Operating Costs for Cutoff Value
Calculations
12-7
Table 12-4: Santa Cruz Copper Project Mineral
Reserve Estimate
12-9
Table 13-1: Geotechnical Domains
13-2
Table 13-2: Ground Support Categories for Conventional
(Drill & Blast) Development
13-6
Table 13-3: Ground Support Categories for Roadheader
Development
13-7
SEPTEMBER 2026 xiii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 13-4: Summary of Mining Recoveries
by Stope Type
13-11
Table 13-5: Santa Cruz Orebody Stope Sizes
13-12
Table 13-6: Santa Cruz Mine Lateral &
Vertical Development Dimensions
13-18
Table 13-7: Santa Cruz Production Summary
13-21
Table 13-8: Paste Strength Requirements
13-28
Table 13-9: Peak Equipment Quantities Per Year
– Owner's Fleet
13-34
Table 13-10: Total Equipment Quantities Per Year – Contractor’s Fleet – Other Capital Development
13-35
Table 14-1: Key Metallurgical Testwork Parameters
14-2
Table 14-2: Major Process Design Criteria
14-3
Table 14-3: Major Process Equipment
14-4
Table 14-4: Proposed Reagent & Process
Consumables
14-13
Table 16-1: Copper Price Summary
16-1
Table 16-2: Commodity Price Summary
16-2
Table 17-1: Permits Table
17-16
Table 18-1: Estimated Total Capital Cost
18-3
Table 18-2: Estimated Mining Capital Cost
18-4
Table 18-3: Estimated Process Facilities and
Infrastructure Capital Cost Summary
18-5
Table 18-4: Estimated Operating Costs
18-6
Table 18-5: Paste Preparation Operating Cost
Primary Inputs
18-9
Table 18-6: SX/EW and Infrastructure Operating
Cost Summary for the Life of Mine
18-10
Table 19-1: Summary of Working Capital
19-3
Table 19-2: Economic Analysis Results
19-4
Table 19-3: Cash Flow Model
19-7
Table 22-1: Project Risks
22-9
Table 22-2: Project Opportunities
22-13
Table 23-1: Recommended Work Program Budget
23-1
SEPTEMBER 2026 xiv
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
LIST
OF FIGURES
Figure 1-1: Santa Cruz Copper Project
Location
1-3
Figure 1-2: Santa Cruz Copper Project Mineral
Control Map
1-5
Figure 1-3: Ivanhoe Electric Surface Control
Map
1-6
Figure 1-4: Extent of Royalties
1-8
Figure 1-5: Mining Zones of Santa Cruz and East
Ridge Deposits, View looking North
1-20
Figure 1-6: Santa Cruz Tonnes of Mined Material
1-22
Figure 1-7: Simplified Process Flowsheet
1-23
Figure 1-8: Seven-Cell Heap Leach and Solution
Management
1-25
Figure 1-9: Solution Management Ponds, Leach
Pad, and Spent Ore Piles
1-26
Figure 1-10: Santa Cruz Site Plan
1-28
Figure 3-1: Santa Cruz Copper Project Mineral
Control Map
3-4
Figure 3-2: Ivanhoe Electric Surface Control
Map
3-13
Figure 3-3: Extent of Royalties
3-15
Figure 5-1: Historical Drill Collars, Deposit, &
Exploration Area Names
5-1
Figure 6-1: Regional Geology of the Southwestern
Porphyry Belt & the Copper Porphyry
6-3
Figure 6-2: Generalized Cross-Section of
the Santa Cruz – Sacaton System
6-4
Figure 6-3: Simplified Stratigraphic Section of
Santa Cruz Copper Project
6-7
Figure 6-4: Geological Cross-Section of
Santa Cruz Deposit looking Northwest
6-13
Figure 6-5: Geological Cross-Section of
the East Ridge Deposit, looking Northwest
6-14
Figure 6-6: Geological Cross-Section of
the Texaco Deposit, looking North
6-15
Figure 6-7: Simplified Alteration and Mineralization
Zonation Model
6-16
Figure 6-8: Schematic Representation of an Exotic
Copper Deposit
6-17
Figure 6-9: Typical Copper Porphyry Cross-Section and
Associated Minerals
6-18
Figure 7-1: 2022 Gravity Survey Station Plan
(Left) & Gravity Survey Results (Right)
7-4
Figure 7-2: Ground Magnetics Survey Results
7-5
Figure 7-3: Quantum Audio Magnetotellurics Survey
Lines
7-6
Figure 7-4: Geochemical Exploration Map –
Copper
7-7
Figure 7-5: Geochemical Exploration Map –
Molybdenum
7-8
SEPTEMBER 2026 xv
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Figure 7-6: Plan Map of Historical
Drillhole Collars
7-9
Figure 7-7: Plan Map of the Twinned Drillholes &
Historical Drillhole Collars
7-12
Figure 7-8: Plan Map of Historical &
Ivanhoe Electric Drillhole Collar Locations
7-14
Figure 7-9: Plan Map of Historical &
Ivanhoe Electric Drill Collar Locations by Program
7-15
Figure 7-10: Historical (Pre-Ivanhoe Electric) &
Current Groundwater
7-21
Figure 7-11: Residual Passive Inflows to Mine
Workings
7-24
Figure 7-12: Model Estimates of Maximum Residual
Passive Inflows to Mine Workings
7-25
Figure 8-1: Certified Reference Material Performance
Charts for Santa Cruz Deposit
8-7
Figure 9-1: Core Logging Facility, Casa Grande,
Arizona
9-3
Figure 10-1: Spatial Distribution of the Variability &
Master Composite Samples
10-5
Figure 10-2: Copper Leach Rate Profiles for all
the MC’s
10-11
Figure 11-1: Plan View of Santa Cruz Copper Project
Diamond Drilling by Deposit
11-1
Figure 11-2: Santa Cruz Primary Mineralization
Domains, Domains & Subdomains
11-4
Figure 11-3: Santa Cruz Deposit Domain Idealized
Cross-section
11-5
Figure 11-4: Santa Cruz Block Model Validation
with Drillholes & Total Copper Percent
11-20
Figure 11-5: East Ridge Block Model Validation
with Drillholes & Total Copper Percent
11-21
Figure 11-6: Texaco Block Model Validation of
Total Copper Percent
11-22
Figure 11-7: Santa Cruz High-Grade Oxide Domain
Swath Plot, Total Copper % in Y-Direction
11-23
Figure 11-8: Plan View of Resource Classification
for Santa Cruz
11-24
Figure 11-9: Oblique View of Santa Cruz, East
Ridge & Texaco Resources
11-35
Figure 11-10: Copper Cutoff Sensitivity for Santa
Cruz & East Ridge
11-36
Figure 11-11: Copper Cutoff Sensitivity for Santa
Cruz, East Ridge & Texaco
11-37
Figure 12-1: Santa Cruz North-South Divide
12-2
Figure 12-2: Santa Cruz Mining Areas (looking
Northeast)
12-3
Figure 12-3: Verde Mining Region
12-4
Figure 12-4: East Ridge Mining Areas (looking
West)
12-5
Figure 13-1: Santa Cruz Geotechnical Domain Profile,
North-South Section, looking East
13-2
Figure 13-2: Mining Infrastructure and Stopes
of Santa Cruz Copper Project
13-3
Figure 13-3: Bolting Pattern Associated with
Conventional (Drill & Blast)
13-4
Figure 13-4: Transverse Longhole Stoping in the
Santa Cruz Orebody
13-13
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Figure 13-5: Longitudinal Longhole
Stoping in East Ridge Zone
13-15
Figure 13-6: Drift-and-Fill Mining in the East
Ridge Zone
13-16
Figure 13-7: Section View of TBM Decline
Excavation
13-17
Figure 13-8: Santa Cruz Tonne – Grade Graph
13-20
Figure 13-9: Santa Cruz Tonnes of Mined Material
13-22
Figure 13-10: Santa Cruz Mine Capital vs. Operating
Development & Production
13-23
Figure 13-11: Santa Cruz Material Handling System
13-25
Figure 13-12: Ventilation Cooling/Heat Load Throughout
Life of Mine
13-30
Figure 13-13: Life of Mine Ventilation Schematic
13-32
Figure 14-1: Simplified Process Flowsheet
14-2
Figure 14-2: 7-Cell Heap Solution Management
14-8
Figure 14-3: Solution Management Ponds, Leach
Pad & Spent Ore Stockpile
14-10
Figure 15-1: Santa Cruz Site Plan
15-2
Figure 15-2: Transmission Lines Near the Santa
Cruz Copper Project
15-4
Figure 15-3: Water Supply and Demand Over Time
for the Project
15-8
Figure 17-1: Scope 1 & 2 CO2e
Emissions & Avoided Emissions
17-7
Figure 17-2: Annual CO2e Emissions &
Intensities
17-8
Figure 19-1: Annual and Cumulative Cash Flow
19-6
Figure 19-2: Sensitivity Analysis Results
19-8
SEPTEMBER 2026 xvii
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1. Executive
Summary
1.1 Introduction
This report was
prepared as a technical report summary on the Santa Cruz Copper Project (“the Project”) in accordance with the Securities
and Exchange Commission S-K regulations (Title 17, Part 229, Items 601 and 1300 through 1305) for Ivanhoe Electric by the following
third-party qualified persons: BBA Consultants USA LP (“BBA”), Worley Group Inc. (“Worley”), Burns &
McDonnell Engineering Company, Inc. (“Burns & McDonnell”), Haley & Aldrich, Inc. (“H&A”), INTERA
Incorporated (“INTERA”), KCB Consultants Ltd. (“KCB”), Life Cycle Geo, LLC (“LCG”), Met Engineering,
LLC (“Met Engineering”), Paterson & Cooke USA, Ltd. (“P&C”), Stantec Consulting Services Inc.
(“Stantec”), and Tetra Tech, Inc. (“Tetra Tech”). None of the qualified persons is affiliated with the Company
or any other entity that has an ownership, royalty, or other interest in the Property.
1.2 Terms
of Reference
Unless otherwise
indicated, all financial values are reported in United States dollars (currency abbreviation: USD; currency symbol: US$) including all
operating costs, capital costs, cash flows, taxes, revenues, expenses, and overhead distributions.
All capital and
operating cost estimates meet the requirements of S-K 1300 with an expected accuracy of -20% to +25%. A contingency of <15% has been
applied to capital cost estimates.
All pricing is
considered in second quarter (“Q2”) 2026 dollars.
Unless otherwise
indicated, capital and operating costs do not include tariffs or escalations.
Totals may not
sum correctly due to rounding.
This report uses
U.S. English. Units may be in either metric or US customary units as identified in the text. A list of abbreviations and units of measure
is provided in Section 24.
Mineral Resources
and Mineral Reserves are reported using the definitions in Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations
in Regulation S-K 1300 (“S-K 1300”).
This report contains
forward-looking information; refer to the note regarding forward-looking information at the front of the report.
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.3 Property
Setting
The Project is
a 92 km drive south of the greater Phoenix metropolitan area and is accessed via the West Gila Bend Highway (“Highway 84”)
11 km west of the city of Casa Grande, which has a population of approximately 57,700.
The greater Phoenix
area is a major population center, with approximately 4.8 million people, and features an international airport, Phoenix Sky Harbor International
Airport, and well-developed infrastructure and services that support the mining industry (Figure 1-1).
The climate in
the Project area is typical of the Sonoran Desert, with temperatures ranging from -7 °C to 47 °C (19 °F to 117 °F)
and an annual precipitation average ranging from 76 to 500 mm (3 to 30 inches) per year. Mining and exploration activities can be
performed year-round, as there are no limiting weather or accessibility factors.
SEPTEMBER 2026 1-2
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Ivanhoe Electric, 2026
Figure 1-1:
Santa Cruz Copper Project Location
SEPTEMBER 2026 1-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.4 Mineral
Tenure, Ownership, Surface Rights, and Royalties
1.4.1 Agreements &
Permits
The Santa Cruz
Copper Project is 100% owned by Ivanhoe Electric through its wholly-owned subsidiary, Mesa Cobre Holding Corporation (“Mesa Cobre”).
1.4.2 Mineral
Tenure
In 2021, Ivanhoe
Electric acquired 238 unpatented mining lode claims from Central Arizona Resources, Ltd. (“CAR”). In addition, Ivanhoe
Electric acquired fee simple mineral title for two further land parcels: “CG100” and “Skull Valley”. In 2022, Ivanhoe
Electric acquired the 0.08 km2 (20-acre) “Skull Valley” property from Skull Valley Capital, LLC in the southeastern
area of the Project and the 0.41 km2 (100.33-acre) “CG100” from CG 100 Land Partners LLC in the northeastern area
of the Project.
In 2023, Ivanhoe
Electric acquired 16 Arizona State Land Department mineral exploration permits covering 27.95 km2 (~6,900 acres) of state
mineral land. In 2024, Ivanhoe Electric exercised the agreement with D.R. Horton Phoenix East Construction, Inc. (“DRH”),
granting Ivanhoe Electric, through Mesa Cobre, 100% of the mineral title for 26.0 km2 (~6,425 acres) of fee simple mineral
estate, 39 federal unpatented mining lode claims (bringing the total claims controlled by Ivanhoe Electric to 277), and 26.6 km2
(~642.5 acres) of Stock-Raising Homestead Act lands.
The total Project
area comprises fee simple land along with unpatented mining lode claims and Arizona State Land Department Mineral Exploration Permits.
Annual renewal fees for the unpatented mining lode claims and mineral exploration permits have been made as required. The area of proposed
mine activity lies on fee simple land. Mineral control is summarized in Table 1-1 and shown on Figure 1-2.
Table 1-1:
Summary of Ivanhoe Electric’s Mineral Control
Land
Designation
Area
(km2)
Fee
Simple Mineral Ownership
25.98
Unpatented
Mining Lode Claims (277 claims)
19.30
Arizona
State Land Department Mineral Exploration Permits (16 permits)
30.47
SEPTEMBER 2026 1-4
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Ivanhoe Electric, 2026
Figure 1-2:
Santa Cruz Copper Project Mineral Control Map
SEPTEMBER 2026 1-5
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.4.3 Surface &
Water Rights
In 2022, Ivanhoe
Electric acquired the surface rights to two land parcels: the 0.08 km2 (20-acre) Skull Valley property from Skull Valley Capital,
LLC in the southeastern area of the Project and a 0.41 km2 (100.33-acre) land parcel “CG100” from CG 100 Land
Partners LLC in the northeastern area of Project. In August 2024, Ivanhoe Electric acquired the surface title to three 0.04
km2 (10-acre) parcels located in various areas of the Project along with the mineral rights from DRH. The majority of the
surface rights for the Santa Cruz Copper Project were acquired in 2023. Surface rights are shown in Figure 1-3. Ivanhoe Electric
acquired both Grandfathered Irrigation Rights (“GFR”) and Grandfathered Type 1 Non-irrigation Water Rights as part of its
2023 private land purchase. These rights provide approximately 3,600 acre-feet (“acre-ft”) per year of water for Project
use.
Source: Ivanhoe Electric,
2026
Figure 1-3:
Ivanhoe Electric Surface Control Map
SEPTEMBER 2026 1-6
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.4.4 Royalties
Noted royalties
on future mineral development of the Project are summarized in Table 1-2 and Figure 1-4.
Table 1-2:
Royalties Applying to the Santa Cruz Copper Project
Royalty
Owner
Royalty
Description
Royalty
Owner A
10%
of 1/800th of the fair market value for refined copper, which amount is set by the value listed in the successor index to Metals
Week as of the date the solution extraction / electrowinning (“SX/EW”) process is completed
Royalty
Owner B
60%
of 1/800th of the fair market value for refined copper, which amount is set by the value listed in the successor index to Metals
Week as of the date the SX/EW process is completed
Royalty
Owner C
2%
NSR
Royalty
Owner D
0.15%
net smelter return
Royalty
Owner E
½
of 1% net smelter return or ½ of 1% of 60% net smelter return if product is disposed of other than to a commercial smelter
Royalty
Owner F
10%
net smelter return (capped at $7 million)
Royalty
Owner G
5%
net smelter return
Royalty
Owner H
1%
net smelter return
Royalty
Owner I
$0.015/lbs
of copper of additional mineable reserve copper over 2 billion pounds (“Blbs”) as determined by the “Definitive
Feasibility Study” or by production beyond the amount estimated in the “Definitive Feasibility Study”; the royalty
owner has the option to require payment in Ivanhoe Electric common stock at a 10% discount to the five-day volume weighted average
price
SEPTEMBER 2026 1-7
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Ivanhoe Electric,
2026
Figure 1-4:
Extent of Royalties
1.5 History
Copper mineralization,
first discovered in the region in the 1960s, led to extensive drill programs across the Project area. Exploration programs by several
companies and joint ventures included diamond drilling and several geophysical surveys from the 1960s through the 1990s.
Ivanhoe Electric
gained access to the land in August 2021 to start drill programs, completed a Mineral Resource estimate in 2022, an updated Mineral
Resource estimate in early 2023, an initial assessment in September 2023, and a preliminary feasibility study in June 2025.
1.6 Geology &
Mineralization
The Santa Cruz
Copper Project is situated within the Southwestern Porphyry Copper Belt, which is home to numerous productive copper deposits. Notable
examples in Arizona include Mineral Park, Bagdad, Resolution, Miami-Globe, San Manuel-Kalamazoo, Ray, Morenci, Sierrita, Twin Buttes,
and the historically significant Sacaton Mine. These deposits are part of the larger physiographical area known as the Basin and Range
Province, which covers much of the southwestern United States.
SEPTEMBER 2026 1-8
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The porphyry copper
deposits in the Southwestern Porphyry Copper Belt are the result of igneous activity during the Laramide Orogeny, which occurred between
50 and 80 million years ago. This geological event was driven by the subduction of the Farallon Tectonic Plate beneath the North American
Tectonic Plate, resulting in the formation of a magmatic arc and the development of associated porphyry copper systems.
The Project comprises
four separate areas along a southwest-northeast corridor. These areas from southwest to northeast are known as the Southwest exploration
area, the Santa Cruz deposit, the East Ridge deposit, and the Texaco deposit, all of which represent portions of one or more large porphyry
copper systems separated by extensional Basin and Range normal faults. Each area has experienced variable periods of erosion, supergene
enrichment, fault displacement, and tilting into their present positions.
Mineralization
in the Project area is divided into the following:
■ Supergene
copper oxide mineralization mainly consists of atacamite and chrysocolla, with smaller amounts
of cuprous goethite, copper-bearing smectite clays, tenorite, cuprite, copper wad, and native
copper;
■ Secondary
supergene sulfide mineralization is dominantly chalcocite, which replaces hypogene sulfide;
■ Primary
hypogene sulfide mineralization consists of chalcopyrite and molybdenite hosted within quartz-sulfide
stringers, veins, and breccias.
1.7 Exploration,
Drilling & Sampling
Ivanhoe Electric
has completed geophysical surveys including two-dimensional, three-dimensional, multichannel seismic, reprocessing of proprietary Typhoon™
three-dimensional perpendicular pole dipole induced polarization data, and ambient noise tomography. The geophysical datasets from these
surveys were used to assist with geological interpretation and improved drill targeting.
A comprehensive
surface ionic leach sampling program has also been completed across the Project to assess in detecting copper mineralization at depth.
Drilling within
the Santa Cruz Copper Project property totals 484 drillholes for 354,655 m of drilling. Of this total, 329 drillholes for 279,164 m were
used in support of the Mineral Resource. The 155 drillholes excluded from the estimation do not intersect the deposit or did not have
relevant information for estimation, such as shallow sonic holes with no assay samples taken.
Detailed core logging
is performed by Ivanhoe Electric geologists through digital data input into MX Deposit. Data that are logged include lithology, alteration,
mineralization, veining,
SEPTEMBER 2026 1-9
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
petrophysical data, and geotechnical parameters, such as faults, joints, fractures, hardness, and rock quality
(Q-system) parameters. Additional characterization fields such as rock colors, grain sizes, textures, and supergene weathering features
were also captured. Approximately 6,295
density measurements from 210 drillholes were measured for the Santa Cruz, East Ridge, and Texaco deposits.
Quality assurance
and quality control (“QA/QC”) for the Ivanhoe Electric drill programs consisted of inserting duplicates, blanks, and certified
reference materials (standards) into the sample stream at set sampling intervals. BBA’s review of the data indicated no material
issues.
Ivanhoe Electric
used 222 drillholes totaling over 70 km of geotechnical drilling to analyze geotechnical characterization of the Santa Cruz and East
Ridge deposits. Historical drillholes were selected based on availability of rock quality designation data.
The groundwater
flow model was calibrated and used to predict the residual passive inflows for the prefeasibility study mine plan. The predicted residual
passive inflows resulting from the updated model, with grouting applied, indicate that the residual passive inflows for the first 10 years
of the mine are at or below 7,200 gallons per minute (“gal/min”), compared to the 12,000 gal/min estimated in the initial
assessment (“IA”) model, in addition to 2 years of 3,000 gal/min of active pumping. From Years 11 through 25, the residual
passive inflows in the updated model range from approximately 3,500 to 7,200 gal/min, compared to 15,000 to 18,000 gal/min predicted
in the IA model.
1.8 Data
Verification
BBA personnel in
the disciplines of geology, Mineral Resource estimation, Mineral Reserve estimation, and mining visited the Project site in 2024. During
the visit, BBA personnel reviewed and verified data acquisition procedures with Ivanhoe Electric personnel, visited active drill sites,
and performed several other verification checks to ensure data integrity.
Based on the data
made available, BBA considers that a reasonable level of verification has been completed and that no material issues were identified
from the programs. It is BBA’s opinion that the geological data collection and QA/QC procedures used by Ivanhoe Electric are consistent
with current industry practices and that the geological database is of suitable quality to support a Mineral Resource estimate.
SEPTEMBER 2026 1-10
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.9 Metallurgical
Testwork
Metallurgy and
processing test work were directed by Met Engineering, LLC and conducted at McClelland Labs (“MLI”) in Sparks, Nevada, USA,
at Blue Coast Research (“BCR”) in Parksville, British Columbia, Canada and at Kappes, Cassidy and Associates (“KCA”)
in Reno, Nevada, USA.
Metallurgical testwork
included the following:
■ Establishing
copper recoveries, based on sequential coppers for chloride-assisted, weak-sulfuric acid,
heap leaching of mineralized material at the Santa Cruz Copper Project.
■ Determining
commercial operating parameters for heap leaching mineralized material at the Santa Cruz
Copper Project, including salt usage, sulfuric acid usage, ore cure/agglomeration practices,
leach cell cycle times for an on/off leach pad design, annual pregnant leach solution grades,
and pregnant leach solution flow rate to solvent extraction.
■ Additional
testing at KCA in 2025-2026 answered a number of questions related to the process design
criteria for value engineering: Extraction (PLS)/recovery (to cathode) at 8-m lift, optimal
chloride level, use ILS or not, use rest-rinse or continuous irrigation, copper level in
the irrigation solution, particle size, etc.
A grade-recovery
equation was developed based on sequential copper assays. For the life-of-mine processing, this equation produces a weighted average
of 92.3% total copper recovery to cathode for leaching an 8 m lift of ore crushed to 100% passing 9.5 mm for 220 days of irrigation utilizing
an on/off leach pad.
There are no deleterious
elements or factors that could have a significant effect on economic extraction of the copper in the mineralized material.
1.10 Mineral
Resource Estimate
1.10.1 Estimation
Methodology
The Santa Cruz
deposit has approximately 194,000 m of drilling in 226 drillholes; East Ridge has approximately 49,000 m of drilling in 62 holes; and
Texaco has approximately 36,000 m of drilling in 41 holes.
Geological domains
were developed for the Project based on alteration, lithological, and mineralogical characteristics, incorporating regional and local
structural information. Normal faults separate the mineralization at the Santa Cruz, East Ridge, and Texaco deposits.
The Santa Cruz
deposit was divided into several mineral domains: exotic domain, verde domain, leach cap, oxide domain, chalcocite enriched domain, and
primary mineralization domain. The
SEPTEMBER 2026 1-11
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
East Ridge deposit consists of a mix of oxide and chalcocite enriched domains. The Texaco deposit
consists of all domains except for leach cap and exotic. The domains were further divided into subdomains based on individual grade profiles,
which align with controls on mineralization. The following terms are assigned to the subdomains; these represent a local definition of
the grade profile: high-grade, medium-grade, and low-grade.
Exploratory data
analysis was conducted to determine the nature of element distribution and correlation of grades within individual lithological units,
and to identify high-grade outlier samples. Capping was not applied to copper values as significant outliers were not identified. Samples
were composited to 2 m intervals. Variograms were completed by subdomain for each deposit.
The resource estimation
methodology constrains the mineralization by using hard wireframe boundaries. Ordinary kriging (“OK”) was employed for the
Santa Cruz deposit, and inverse distance squared (“ID2”) was selected for the East Ridge and Texaco deposits.
Multiple search passes were used for each deposit. Search parameters were based on variography and continuity of mineralization.
Validation checks
were completed on the Mineral Resource estimates. These included visual comparison of estimated grade to composite grade, domain conformity,
swath plots, and comparisons to alternate estimation methods.
Indicated and Inferred
classification was applied to the Santa Cruz, East Ridge, and Texaco deposits based on BBA’s review that included the examination
of drill spacing, visual comparison, kriging variance, distance to the nearest composite, and search pass, along with the search ellipsoid
ranges. Collectively, this information was used to produce an initial classification script followed by manual wireframe application
to further limit the Mineral Resource classification.
Mineral Resources
used commodity prices based on long-term analyst and bank forecasts. In the opinion of BBA, this price is generally aligned with pricing
over the last 1, 3, and 5 years; forward-looking pricing from internationally recognized banks is appropriate for use in a Mineral Resource
estimate. Section 16 provides an explanation of the commodity price forecasts. The commodity price considered 3-year trailing averages.
1.10.2 Mineral
Resource Statement
The Mineral Resources
in this estimate were independently prepared, including estimation and classification, by BBA in accordance with the definition for Mineral
Resources in S-K 1300 regulations. The in-situ Mineral Resource estimates for the Santa Cruz, East Ridge, and Texaco deposits, inclusive
and exclusive of reserves, are presented in Table 1-3 and Table 1-4, respectively.
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 1-3:
In-situ Mineral Resource Estimate Inclusive of Reserves for Santa Cruz, East Ridge & Texaco
Deposit
Classification
Tonnes
(kt)
Total
Copper
(%)
Acid
Soluble
Copper (%)
Cyanide
Leach
Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid
Soluble
Copper (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper
(Mlbs)
Santa
Cruz
Indicated
317,709
0.95
0.48
0.30
0.17
0.027
1.62
3,017
1,517
956
543
279
16,513
6,650
Inferred
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
East
Ridge
Indicated
8,742
1.00
0.45
0.39
0.16
0.014
0.68
88
40
34
14
4
191
193
Inferred
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Texaco
Inferred
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
All
Deposits
Indicated
326,450
0.95
0.48
0.30
0.17
0.027
1.59
3,104
1,557
989
558
283
16,704
6,844
All
Deposits
Inferred
422,020
0.79
0.12
0.24
0.43
0.025
0.83
3,332
503
1,030
1,809
333
11,304
7,346
Notes on Mineral Resources:
1. The
Mineral Resources in this estimate were independently prepared, including estimation and
classification, by BBA Consultants USA LP, and are reported in accordance with the definition
for Mineral Resources in S-K 1300.
2. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral
Resources are reported in situ, inclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM software.
5. The
Mineral Resources are current at September 23, 2026.
6. Mineral
Resources constrained assuming underground mining methods for the Santa Cruz deposit are
reported at an NSR cutoff of US$32.00 for heap leach and US$34.00 for concentrator; Texaco
deposit is reported at an NSR cutoff of US$32.00 for heap leach and US$34.00 for concentrator;
and East Ridge deposit is reported at an NSR cutoff of US$40.00 for longhole stoping and
US$50.00 for drift-and-fill. The cutoff reflects the total operating costs to define reasonable
prospects for economic extraction by conventional underground mining methods. Material from
within mineable shape-optimized wireframes has been included in the Mineral Resource. Underground
mineable shapes optimization parameters include a long-term copper price of US$4.00/lb, gold
price of US$1,900/oz, and silver price of US$24.00/oz. Process costs of US$7.00 to US$9.00
per processed tonne; direct mining costs between US$22.00 to US$40.00 per processed tonne
reflecting various mining method costs (leach, longhole or drift-and-fill), mining general
and administration costs of US$2.63 per processed tonne, on-site processing costs between
US$31.63 to US$49.63 per processed tonne, along with variable royalties between 5.01% to
6.96% NSR, and a mining recovery of 100%.
7. Mineral
Resources are estimated using metallurgical recoveries for heap leach of 96% for acid-soluble
copper, 83% for cyanide-soluble copper, 22% for residual copper, 0% for gold and 0% for silver.
Recoveries for concentrator are 0% for acid-soluble copper, 90% for cyanide-soluble copper,
90% for residual copper, 59% for gold, and 69% for silver.
8. Density
was applied using weighted averages by deposit subdomain.
9. Rounding,
as required by reporting guidelines, may result in apparent summation differences between
tonnes, grade, and contained metal content.
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 1-4:
In-situ Mineral Resource Estimate Exclusive of Reserves for Santa Cruz, East Ridge & Texaco
Deposit
Classification
Tonnes
(kt)
Total
Copper
(%)
Acid
Soluble
Copper (%)
Cyanide
Leach
Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid
Soluble Cu
(kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper
(Mlbs)
Santa
Cruz
Indicated
177,547
0.79
0.32
0.20
0.27
0.025
1.45
1,403
570
362
471
140
8,279
3,092
Inferred
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
East
Ridge
Indicated
4,412
0.94
0.43
0.31
0.20
0.015
0.71
41
19
14
9
2
101
91
Inferred
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Texaco
Inferred
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
All
Deposits
Indicated
182,959
0.79
0.32
0.21
0.26
0.024
1.43
1,444
589
376
480
143
8,380
3,184
All
Deposits
Inferred
422,020
0.79
0.12
0.24
0.43
0.025
0.83
3,332
503
1,030
1,809
333
11,304
7,346
Notes on Mineral Resources:
1. The
Mineral Resources in this estimate were independently prepared, including estimation and
classification, by BBA Consultants USA LP, and are reported in accordance with the definition
for Mineral Resources in S-K 1300.
2. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic viability.
3. Mineral
Resources are reported in situ, exclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM software.
5. The
Mineral Resources are current at September 23, 2026.
6. Mineral
Resources constrained assuming underground mining methods for the Santa Cruz deposit are
reported at an NSR cutoff of US$32.00 for heap leach and US$34.00 for concentrator; Texaco
deposit is reported at an NSR cutoff of US$32.00 for heap leach and US$34.00 for concentrator;
and East Ridge deposit is reported at an NSR cutoff of US$40.00 for longhole stoping and
US$50.00 for drift-and-fill. The cutoff reflects the total operating costs to define reasonable
prospects for economic extraction by conventional underground mining methods. Material from
within mineable shape-optimized wireframes has been included in the Mineral Resource. Underground
mineable shapes optimization parameters include a long-term copper price of US$4.00/lb, gold
price of US$1,900/oz, and silver price of US$24.00/oz. Process costs of US$7.00 to US$9.00
per processed tonne; direct mining costs between US$22.00 to US$40.00 per processed tonne
reflecting various mining method costs (leach, longhole or drift-and-fill), mining general
and administration costs of US$2.63 per processed tonne, on-site processing costs between
US$31.63 to US$49.63 per processed tonne, along with variable royalties between 5.01% to
6.96% NSR, and a mining recovery of 100%.
7. Mineral
Resources are estimated using metallurgical recoveries for heap leach of 96% for acid-soluble
copper, 83% for cyanide-soluble copper, 22% for residual copper, 0% for gold and 0% for silver.
Recoveries for concentrator are 0% for acid-soluble copper, 90% for cyanide-soluble copper,
90% for residual copper, 59% for gold, and 69% for silver.
8. Density
was applied using weighted averages by deposit subdomain.
9. Rounding,
as required by reporting guidelines, may result in apparent summation differences between
tonnes, grade, and contained metal content.
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S-K 1300 Preliminary Feasibility Study &
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The current resource
model iterations have not changed when compared to the iterations released in the 2025 PFS. Differences presented in Mineral Resources
Exclusive of Mineral Reserves are due to the addition of stopes at the top of the mine.
1.10.3 Factors
That May Affect the Mineral Resource Estimate
Areas of uncertainty
that may materially impact the Mineral Resource estimates are as follows:
■ Changes
to long-term metal price assumptions;
■ Changes
to the input values for mining, processing, and general and administrative (“G&A”)
costs to constrain the estimate;
■ Changes
to local interpretations of mineralization geometry and continuity of mineralized subdomains;
■ Changes
to the density values applied to the mineralized zones;
■ Changes
to metallurgical recovery assumptions;
■ Changes
in assumptions of marketability of the final product;
■ Variations
in geotechnical, hydrogeological, and mining assumptions;
■ Changes
to assumptions with an existing agreement or new agreements;
■ Changes
to environmental, permitting, and social license assumptions;
■ Logistics
of securing and moving adequate services, labor, and supplies could be affected by epidemics,
pandemics, and other public health crises, or geopolitical influence.
1.11 Mineral
Reserve Estimate
1.11.1 Estimation
Methodology
Underground Mineral
Reserves were estimated by BBA. Estimates were prepared for the Santa Cruz deposit, a portion of the East Ridge deposit, and the Verde
domain located within the Santa Cruz deposit. The primary mining method for both deposits employs longhole stoping without pillars, utilizing
a primary and secondary stoping sequence. Additionally, a few small lenses within the East Ridge deposit use a drift-and-fill mining
method. Stopes will be backfilled after mining with paste backfill for the duration of the mine life. Indicated Mineral Resources were
converted to Probable Mineral Reserves. Inferred Mineral Resources were not converted to Mineral Reserves; however, if Inferred Mineral
Resources fell within the Mineral Reserve designs, they were assumed to have zero grade.
The underground
mine approach was designed using zones that were amenable to different mining methods based on geotechnical considerations, access requirements,
deposit shape,
SEPTEMBER 2026 1-15
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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orientation and grade, and mining depths. Waste or low-grade blocks in the stope shapes were treated as internal dilution.
Mine designs were modified by including the capital and operating development needed to access the stopes, and the applicable infrastructure
requirements.
Net smelter return
(“NSR”) represents the gross revenue generated from the sale of a refined metal product (in this case, copper cathodes) after
deducting all associated off-site costs. For a mine producing copper cathodes via heap leaching and SX/EW, the traditional "smelter"
and "refining" charges inherent in concentrate sales are not applicable. Instead, the off-site deductions are specific to the
direct sale of cathodes.
The primary metal
produced at the Santa Cruz Copper Project is copper. While byproducts of gold and silver are present, the current heap leach SX/EW process
does not recover these precious metals. As is common with polymetallic deposits, the cutoff value for Mineral Reserves is determined
and expressed in terms of net smelter return value per tonne.
The NSR is calculated
based on unit metal values, utilizing representative smelter contract terms, freight costs, and forecasted metal prices. The metal prices
and metallurgical recovery rates used for NSR calculations are summarized in Table 1-5. Operating cost for cutoff value calculations
are summarized in Table 1-6. Royalties are factored into each block of the Mineral Resource model.
Mineral Reserves
are assessed using commodity prices derived from long-term forecasts from analysts and banks. According to BBA, this pricing generally
reflects the trends observed over the past 1, 3, and 5 years, and the forward-looking prices from internationally recognized banks are
deemed appropriate for Mineral Reserve estimates.
Table 1-5:
NSR Parameters
Product
Unit
Value
Acid
Soluble Copper Recovery
%
98.8
Cyanide
Soluble Copper Recovery
%
85.4
Residual
Copper Recovery
%
35.1
Recoverable
Copper
%
90.9
Net
Recoverable Copper
%
90.0
Copper
Price
$/lb
4.00
SEPTEMBER 2026 1-16
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Table 1-6:
Operating Costs for Cutoff Value Calculations
Criteria
Unit
Santa
Cruz
East
Ridge
East
Ridge
30
m Longhole
Drift-and-fill
15
m Longhole
Leach
Leach
Leach
Cathode
Split
%
100.0
100.0
100.0
On-site
Costs
Mining
Costs – Direct
$/t
processed
31.00
47.05
47.05
Processing
Costs
$/t
processed
10.32
10.32
10.32
G&A
$/t
processed
2.63
2.63
2.63
On-site
Total
$/t
processed
43.95
60.00
60.00
On-site
Rounded NSR Breakeven Cutoff
$/t
44.00
60.00
60.00
1.11.2 Mineral
Reserve Statement
Indicated Mineral
Resources were converted to Probable Mineral Reserves. Inferred Mineral Resources were excluded from the Mineral Reserve estimate. Mineral
Reserves for the Santa Cruz Copper Project are estimated for the Santa Cruz deposit and a portion of the East Ridge deposit, as well
as the Verde domain within the Santa Cruz deposit.
Mineral Reserves
are supported by a mine plan, engineering analysis, and modifying factors.
The point of reference
for the Mineral Reserves is the point where the ore is delivered to the processing plant. Mineral Reserves are reported on a 100% basis.
The Mineral Reserve
estimate for the Santa Cruz Copper Project is shown in Table 1-7. A small increase between the 2025 Mineral Reserve and the 2026
Mineral Reserve is attributed to the initial mine ramp-up and sequencing. This adjustment, which represents an increase of approximately
2% of the contained copper, facilitated access to several stopes within the 2026 mine plan that were not available in the 2025 mine plan.
SEPTEMBER 2026 1-17
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S-K 1300 Preliminary Feasibility Study &
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Table 1-7:
Santa Cruz Copper Project Mineral Reserve Estimate
Deposit
Classification
Tonnes
(kt)
Total
Copper
(%)
Acid
Soluble Copper
(%)
Cyanide
Leach Copper
(%)
Residual
Copper
(%)
Contained
Copper
(kt)
Total
Acid
Soluble Cu
(kt)
Total
Cyanide Cu
(kt)
Total
Residual Cu
(kt)
Santa
Cruz
Probable
136,022
1.09
0.63
0.40
0.05
1,477
863
547
66
East
Ridge
Probable
4,107
1.03
0.46
0.44
0.13
42
19
18
5
Total
Probable
140,129
1.08
0.63
0.40
0.05
1,519
882
566
71
Notes on Mineral Reserves:
1. The
Mineral Reserves in this estimate are current to September 23, 2026, and were independently
prepared, including estimation and classification, by BBA Consultants USA LP. They are reported
in accordance with the definitions for Mineral Reserves in S-K 1300.
2. The
point of reference for the estimate is the point of delivery to the process facilities.
3. The
Mineral Reserves for the Santa Cruz and East Ridge deposits were completed using Deswik mining
software. Mineral Reserves are defined within stope designs that are prescribed by rock mechanics,
considering the specific characteristics of deposits, mineral domains, mining methods, and
the mining sequence. Transverse longhole stoping is the optimal mining method with uppers
and cut & fill methods used where appropriate. Mining will occur in blocks, extracting
ore from the bottom upwards, with paste backfill providing ground support to sustain a production
rate of 20,000 tonnes per day for the first 15 years of operation.
4. Mineral
Reserves are estimated at an NSR cutoff value of US$43.95/t for longhole stoping and US$60.00/t
for longitudinal retreat stopes and drift-and-fill. The NSR values reflect the discrete metallurgical
responses for each Mineral Reserve block using metallurgical recoveries for heap leach of
96% for acid-soluble copper, 83% for cyanide-soluble copper, 22% for residual copper. Underground
mineable shapes optimization parameters include a long-term copper price of US$4.00/lb.
5. Mineral
Reserves account for mining loss and dilution.
6. Mineral
Reserves are a subset of the Indicated Mineral Resource and do not include the inferred Mineral
Resource.
7. Rounding,
as required by the guidelines, may result in apparent summation differences between tonnes,
grade, and contained metal content.
SEPTEMBER 2026 1-18
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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1.11.3 Factors
That May Affect the Mineral Reserve Estimate
Factors that may
affect the Mineral Reserve estimate include the following:
■ Changes
to long-term metal price assumptions;
■ Changes
to metallurgical recovery assumptions;
■ Changes
to the input assumptions used to derive the mineable shapes applicable to the assumed underground
and open pit mining methods used to constrain the estimates;
■ Changes
to the forecast dilution and mining recovery assumptions;
■ Changes
to the cutoff grades used to constrain the estimates;
■ Variations
in geotechnical (including seismicity), hydrogeological, mining, and processing recovery
assumptions;
■ Changes
to environmental, permitting, and social license assumptions.
1.12 Mining
Methods
The Santa Cruz
Copper Project is an undeveloped greenfield project where Mineral Reserves have been identified for two deposits: Santa Cruz and East
Ridge.
The Santa Cruz
deposit is located approximately 480 to 940 m below the surface. Based on the mineralization's geometry and supporting geotechnical data,
transverse underground longhole stoping has been selected as the most suitable mining method. Mining will be conducted in blocks, with
ore being extracted from the bottom upward within each block while utilizing paste backfill to provide ground support. A sill pillar
will be maintained between the blocks. The paste backfill is designed to be strong enough to allow adjacent filled stopes to be mined
without requiring additional pillars.
The stopes for
the Santa Cruz deposit will have varying widths of 12 to 18 m and lengths ranging from 10 to 17 m, depending on the geotechnical domain,
zone, and mining sequence (primary or secondary). The levels in the mine are spaced 30 m apart. The Verde zone is a subdomain within
the Santa Cruz deposit, and the production stopes in this area will be accessed from the Santa Cruz mine levels, featuring standard dimensions
of 20 m (height) x 15 m (width) x 20 m (length).
The East Ridge
deposit is situated to the north of the main Santa Cruz deposit, approximately 310 to 790 m below the surface. It consists of multiple
tabular lenses and will be mined using a hybrid approach that combines longhole stoping and the drift-and-fill method, depending on the
geometry of the orebody in each zone. At East Ridge, longhole stopes will measure 15 m (height) x 10 m (width) x 8 m (length), accessed
via longitudinal entries. For zones using the drift-and-fill method, the drifts will have dimensions of 5 m (height) x 5 m (width), with
variable lengths
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Ivanhoe Electric Inc.
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determined by the local rock mass condition. Mining will begin with a drift sized at 5 m (height) x 5 m (width), followed
by paste backfill and curing before the development of the next adjacent drift in the orebody.
Mine access will
be provided through a single tunnel boring machine (“TBM”) decline from the surface. Ore will be transported from the stopes
by load-haul-dump (“LHD”) equipment to an orepass system, which will transfer the ore from a chute to a conveyor system.
The conveyor system will transfer the material to surface. Main intake and exhaust raises will be developed to ensure the mine workings
are adequately ventilated. The combined production target for the Santa Cruz and East Ridge deposits is approximately 20,000 t/d at peak
production and approximately 14,000 t/d life of mine (“LOM”).
The Santa Cruz
Copper Project encompasses three mining zones: Santa Cruz, Verde, and East Ridge (Figure 1-5). The Santa Cruz zone is the primary
production area and is structurally divided into northern and southern regions.
Source: Ivanhoe Electric,
2026
Figure 1-5:
Mining Zones of Santa Cruz and East Ridge Deposits, View looking North
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Primary (first-pass)
support will be installed in conjunction with the advance of excavation and will provide support and reinforcement. Any support applied
at a later stage will be considered secondary (or second-pass) support. Excavation in rock will be performed via conventional (drill
and blast) methods or with a roadheader machine.
The Santa Cruz
Copper Project mine life is expected to be 24 years with construction from 2027 to mid-2029 followed by schedule production to 2052.
Table 1-8 summarizes the production in the mine plan. The “Ore” column represents the total development and production
ore for Santa Cruz, Verde, and East Ridge mining zones.
Table 1-8:
Santa Cruz Scheduled Production Summary
Year
Ore
(kt)
Total
Copper
(%)
AsCu
(%)
CNCu
(%)
Cu_Res
(%)
Ratio
ASCU:TCU
2027
0
0.00
0.00
0.00
0.00
2028
101
0.54
0.13
0.44
0.00
0.82
2029
1,403
0.82
0.13
0.56
0.12
0.69
2030
4,684
1.37
0.22
1.09
0.05
0.80
2031
6,819
1.23
0.34
0.86
0.04
0.70
2032
7,286
1.10
0.47
0.58
0.05
0.53
2033
7,155
1.17
0.55
0.59
0.03
0.50
2034
7,245
1.16
0.49
0.62
0.04
0.54
2035
7,775
1.07
0.43
0.60
0.04
0.56
2036
7,679
1.09
0.31
0.75
0.03
0.69
2037
7,850
0.98
0.28
0.67
0.03
0.68
2038
8,003
1.02
0.31
0.66
0.05
0.65
2039
7,804
1.08
0.48
0.55
0.05
0.51
2040
7,105
1.18
0.64
0.45
0.09
0.38
2041
7,210
1.16
0.59
0.49
0.08
0.42
2042
7,672
1.09
0.48
0.57
0.05
0.52
2043
8,011
1.01
0.41
0.57
0.03
0.56
2044
7,447
1.01
0.32
0.62
0.08
0.00
2045
3,315
0.93
0.24
0.64
0.05
0.00
2046
3,625
0.98
0.49
0.46
0.03
0.47
2047
3,706
1.10
0.40
0.67
0.03
0.61
2048
3,647
1.02
0.27
0.68
0.07
0.66
2049
3,742
1.02
0.28
0.70
0.04
0.68
2050
3,659
1.05
0.39
0.58
0.07
0.55
2051
3,648
0.97
0.42
0.50
0.05
0.52
2052
3,537
1.03
0.21
0.74
0.08
0.72
Total
140,129
1.08
0.40
0.63
0.05
-
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Figure 1-6
shows tonnes of material mined over the LOM from the orebodies and development.
Source: BBA, 2026
Figure 1-6:
Santa Cruz Tonnes of Mined Material
Cemented paste
backfill is used as the primary means of backfill to support the mining cycle and allow excavation of the adjacent voids. Spent ore from
the on/off leach pad is the primary material source to produce paste. Due to the lag between the initial availability of spent ore from
the on/off pad and the demand for paste, Oracle granite from the decline construction or an off-site source is used during the initial
months of mine production. Milled spent ore will then be used for the remainder of the mine life. The spent ore requires conditioning
and milling prior to use in the backfill system to establish suitable properties for use as paste backfill.
Grade control at
the Santa Cruz mine will be enhanced through technology integrated into the materials handling system, such as cross-belt analyzers.
Additionally, production hole sampling and on-site testing at the surface assay laboratory will be employed to reconcile results with
the mine plan.
The underground
ventilation system is designed to ensure efficient airflow and maintain appropriate working temperatures underground throughout the LOM.
Using a “push-pull” system with main intake and exhaust fans, the system has a capacity of 880 m3/s, supported
by one decline and three primary ventilation shafts. All main fans are planned to be installed on the surface at the shaft collars, while
booster fans will be needed to regulate ventilation flow underground. Due to high ambient temperatures, mechanical cooling is provided
by a central
SEPTEMBER 2026 1-22
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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refrigeration plant with a peak capacity of 20 MW of refrigeration. The system features variable frequency drives and regulators
to allow ventilation control underground, ensuring adequate air quality and efficient clearance of mine blast gases.
1.13 Recovery
Methods
Process for the
Santa Cruz Copper Project has been designed to cycle oxide and secondary sulfide ores through an on/off heap leach pad to produce a copper-rich
pregnant leach solution (“PLS”) that will be processed in the on-site solvent extraction and electrowinning circuit for recovery.
The process plant
and refinery designs were based on proven technologies and established operating practices, and commercially available equipment. The
process and refinery plant designs are based on the results of metallurgical testwork on the mineralized material at the Santa Cruz Copper
Project. The designs are conventional.
The simplified
overall process flow diagram is presented in .
Source: Worley, 2026
Figure 1-7:
Simplified Process Flowsheet
Ore produced from
the underground mine will be processed using a heap leach and solvent extraction and electrowinning flowsheet to produce London Metal
Exchange (“LME”) grade copper cathode. The heap leaching process will take place on an on/off pad. Spent ore will be removed
from the leach pad and processed for paste backfill or stacked on a spent ore pile. Approximately 50% of the spent ore will be processed
for use in paste backfill. Operations will be conducted 24 hours per day, 365 days per year for approximately 26 years at a design stacking
rate of up to 22,000 t/d.
Run of mine (“ROM”)
ore will be delivered to surface at a diameter of less than 254 mm via the conveyor. Ore from underground will be conveyed to the coarse
ore stockpile for further 2-stage
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crushing. Fine ore (undersize from the crushing circuit) will be trucked to the agglomeration drums
where sulfuric acid and sodium chloride can be added to facilitate agglomeration and leaching.
Crushed and agglomerated
ore will be delivered to the leach pad via a combination of overland conveying and stacking equipment. The final mobile conveyor will
feed two self-propelled indexing conveyors in series, which in turn will feed the self-propelled mobile radial stacker. The cells will
be ‘retreat’ stacked by the radial stacker in a 65.5-meter-wide (half-cell) half-moon shape.
The on/off heap
leach pad will be divided into seven cells, each approximately 130 x 730 meters (Figure 1-8). The cells will be separated by divider
berms located near their base so that solution flow from each cell can be segregated for collection. The liner for the leach pad is comprised
of a high-density polyethylene geomembrane overlaying a geosynthetic clay liner overlaying prepared native foundation materials or grading
fill.
Ore will be stacked
at up to 22,000 t/d, while unloading will consider a constant rate of 22,000 t/d; based on a typical interior half-cell strip (i.e.,
not the end cell strips on the north or south sides of the pad), it will take approximately 25 days to stack each half-cell strip at
the design production rate. Each of the cells (and more specifically, each of the half-cell strips) will cycle through the following
processes in sequence with an entire cell cycle, under the design production rates and idealized cell sizing, taking approximately 320
days.
The cycles are
as follows:
■ Stacking
(25 days);
■ Piping
connections and stacker relocation (3 days);
■ Irrigation
(220 days);
■ Solution
drain, water rinse, drain down, and piping removal (23 days);
■ Spent
ore removal (25 days);
■ Inspection
and maintenance (empty cell time) (26 days).
The cells will
be irrigated with raffinate (depleted pregnant leach solution from the solution extraction process) or secondary leach solution (“SLS”)
produced from leaching. Leach solution will report to the solution collection ponds. At the end of the leach cycle, spent ore will be
removed to the spent ore stockpile or the paste plant using dozers, loaders, grasshopper / link conveyors and trucks (Figure 1-8).
SEPTEMBER 2026 1-24
Ivanhoe Electric Inc.
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Source: KCB, 2026
Figure 1-8:
Seven-Cell Heap Leach and Solution Management
Solution will be
managed in a series of lined ponds, including the raffinate pond, PLS and SLS collection ponds, solution overflow ponds, and spent ore
stockpile collection pond. The pond system has been sized to contain normal operating solutions and stormwater and to maintain separation
between contact and non-contact water. The proposed locations of the solution management ponds are depicted in Figure 1-9.
SEPTEMBER 2026 1-25
Ivanhoe Electric Inc.
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Source: Ivanhoe
Electric, 2026
Figure 1-9:
Solution Management Ponds, Leach Pad, and Spent Ore Piles
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S-K 1300 Preliminary Feasibility Study &
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The solvent extraction
circuit design comprises two parallel trains. Each train will consist of two extraction stages, two wash stages, and one strip stage.
The copper electrowinning
tankhouse will comprise electrowinning cells with lead anodes and stainless-steel cathode blanks. Cathodes (copper electroplated onto
stainless steel blanks) will be harvested manually using an overhead crane and bail. Cathodes will be stripped in an industry standard
automated stripping machine and the washed blanks will be returned to the cells. Product cathode copper will be bundled, sampled, weighed,
labeled, and shipped.
1.14 Infrastructure
The Santa Cruz
Copper Project site surface infrastructure comprises the following:
■ An
open excavation 30-meter-deep “boxcut” ramp for accessing a decline portal to
the underground mine workings;
■ Three
ventilation shafts for airflow and cooling to the underground mine workings;
■ Primary
mine ventilation fans, hardware, and ducting to control ventilation to the underground mine
workings;
■ Refrigeration
plant to control temperatures in the underground mine workings;
■ Rock
crushing, stockpiles and process plant;
■ Spent
ore stockpile;
■ On/off
leach pad with associated collection ponds and mobile stacking;
■ Solution
extraction and electrowinning process facilities;
■ Mobile
cement batch plant facility;
■ Paste
backfill batch facility;
■ Maintenance,
and warehouse facilities;
■ First
aid/rescue building;
■ Multiple
various ancillary outbuildings;
■ Entry
security shack and various visitor and project parking spaces;
■ Equipment
delivery and open laydown/storage area;
■ Multiple
improved and unimproved access roads;
■ Piping
and pumping systems for process and water services;
■ Explosives
storage facility;
■ High-voltage
transmission line, substations and medium-voltage distribution;
■ Environmental
monitoring facilities;
■ Emergency
power generation facility.
SEPTEMBER 2026 1-27
Ivanhoe Electric Inc.
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Key infrastructure
locations are shown on Figure 1-10.
Source: Ivanhoe Electric, 2026
Figure 1-10:
Santa Cruz Site Plan
Power for the Project
will be provided from the utility grid supply. The goal of the mine development is to achieve a minimum of 70% of the energy supply from
clean sources via a “Green Select Energy Rider” provided through the local power utility, Electrical District No. 3
(“ED3”).
The Santa Cruz
Copper Project will have an estimated operating load of 74 MW during peak production years (2031-2044) and a forecast annual consumption
of 647,000 MWh/y during peak production years and 690,000 MWh in 2039.
SEPTEMBER 2026 1-28
Ivanhoe Electric Inc.
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Water supply for
process operations will be sourced from existing grandfathered Type I non-irrigation rights and mine dewatering. Potable water will be
trucked in from the city. Trucked water will be stored in a tank to service the surface facilities.
Water management
operations include systems of underground dewatering, water collection and conveyance facilities, water storage, water use, and various
management options for discharge of excess water. Water not used for underground mining, the paste backfill plant, the process plant,
and the on/off heap leach pad can be pumped to storage reservoirs. Rapid infiltration basins are used to capture non-contact stormwater
runoff to prevent stormwater from coming into contact with mining operations.
Testwork confirmed
the extracted groundwater quality will be acceptable for irrigation use when applied to suitable crops (e.g., cotton, alfalfa, pasture
grasses) commonly grown in the vicinity of the Project. The water distribution system is designed to distribute water to agricultural
end-users, without treatment, and includes a side-stream water treatment process that may be used if the extracted groundwater does not
meet the standards defined by end-users.
On-site accommodations
facilities are neither required nor planned. Personnel will reside in nearby settlements including Casa Grande, Maricopa, the Phoenix
metropolitan area, and Tucson, and will commute to site by vehicle. Parking, security, fencing, and a gatehouse are included in the design.
The infrastructure
buildings to be built on site include explosive magazine storage; cap magazine storage; core shack; process laboratory; security and
main gate; fueling station; mine, plant operations building, changehouse, and mine dry; first aid and emergency rescue facilities; mining
facility warehouse.
1.15 Market Studies & Contracts
Copper is a globally
traded commodity that has established benchmark pricing in the form of exchanges such as the London Metals Exchange or Commodity Exchange
Inc. The Santa Cruz Copper Project aims to produce copper cathode. Ivanhoe Electric plans to sell the copper in the United States.
Refined copper
cathodes will be sold with reference to the prices on the Commodity Exchange or London Metals Exchange at an agreed-upon quotational
period. An additional premium to the price will be negotiated with potential buyers. Factors affecting the premium will include the shape
and chemical specification of the cathode, together with the geographical location of the delivery point in relation to where the cathode
is going to be consumed.
SEPTEMBER 2026 1-29
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The Economic Model
uses a base copper price of $4.75 per pound, which is based on a review of the 1-, 3-, and 5-year trailing averages, as well as consensus
forecasts from major banks and a market study completed by Ocean Partners for Ivanhoe Electric.
Due to the shape,
chemical composition, and origin point of the cathode, it is expected that a premium to the price will be negotiated with potential buyers
that is marginally above the historical average. For financial modeling purposes, this premium is estimated at $0.14 per pound ($300
per tonne) (Ocean Partners, 2025).
Table 1-9
summarizes the 1-, 3-, and 5-year trailing price for copper using the LME Grade A monthly average as well as consensus forecasts from
the major banks (CIBC, 2025).
Table 1-9:
Commodity Price Summary
LME
Trailing Average ($/lb)
Forecast
($/lb)
1-Year
3-Year
5-Year
2026
2027
2028
2029
Long-term
BBA1
5.66
4.64
4.39
Banks
Forecast2
5.97
5.94
5.78
5.69
5.03
Notes:
1BBA, Metal Pricing_R00,
September 2026.
2CIBC Consensus Commodity Prices – September 2026.
LME = London Metals Exchange.
A limited number
of contracts with vendors, contractors, or manufacturers including for the TBM with The Robbins Company, along with long lead items to
support on-site power and the SX/EW plant, have been executed. Additional major contracts will be required. Copper cathode will be sold
at mine gate.
1.16 Environmental, Closure &
Permitting
Environmental studies
have included examination of flora and fauna, threatened and endangered species, migratory birds, surface water mapping, cultural heritage,
air quality, carbon intensity, surface water monitoring, groundwater monitoring, water quality, climate risk, soils, material characterization,
and mine material environmental behavior.
Much of the Property
has been previously disturbed from its natural state. These disturbances include flood control features, such as the canal identified
as the Santa Cruz Wash Canal, paved and unpaved roads, and agricultural practices. These disturbances have removed all potential natural
surface water features that may have existed in this area. The only features within the Property that possess characteristics of an ordinary
high-water mark and may be potential Waters of the United States are the north branch of the Santa Cruz Wash and the constructed Santa
Cruz Wash Canal.
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The Project is
committed to responsible environmental management, with a particular focus on minimizing air quality impacts. The Project is located
within the West Pinal County PM10 (particulate matter emissions with a diameter less than 10 microns) nonattainment area. Accordingly,
the Project will take specific measures to control and effectively mitigate dust. These measures will be in alignment with both local
and state requirements.
A groundwater monitoring
program to continue collecting baseline water quality data was developed and implemented in October 2023. The objective of the monitoring
plan is to establish a current baseline water quality profile for the site and help inform Ivanhoe Electric on best management practices
for groundwater monitoring during and after mining operations.
The major permits
for the Project will require state, county, and local authorizations. Several of these permits have been issued for early construction.
Other permits for full construction and operations activities are in preparation or have been submitted.
The eventual closure
and reclamation of the Santa Cruz Copper Project will be directed and regulated under two separate but interconnected regulatory programs
in Arizona: the Arizona State Mine Inspector (“ASMI”) and the Arizona Department of Environmental Quality (“ADEQ”).
Both programs are well-established and statutes and rules are subject to licensing timeframes.
Three General Aquifer
Protection Permits (“APP”) to support construction activities have been approved by ADEQ. The Areawide Aquifer Protection
Program permit application was submitted to ADEQ and has been deemed administratively complete. Substantive review is in progress. A
construction level Mined Land Reclamation Plan (“MLRP”) has been approved by the ASMI.
Although an operational
MLRP has not yet been developed for the Project, a preliminary closure cost estimate has been developed. Based on the conceptual design
plan in this report, the closure costs for the Santa Cruz Copper Project are estimated at $27 million.
In alignment with
Ivanhoe Electric’s community engagement and partnership standards, the Project is being developed with a well-defined strategy
to establish and uphold the support of the surrounding communities. At present, the Project is continuing outreach with Native American
communities that have ancestral ties to the land. In addition, community outreach with local stakeholders, and community involvement
continues, and potential partnerships are actively being pursued and/or assessed.
SEPTEMBER 2026 1-31
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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1.17 Capital & Operating
Cost Estimates
1.17.1 Capital Cost Estimate
For the Santa Cruz
Copper Project, capital and operating costs were determined based on the mine plan and SX/EW plant design. The estimation process incorporated
assessments of material and labor requirements derived from the design, analysis of the process flowsheet, and anticipated consumption
of power and supplies.
Cost estimation
is based on a combination of vendor and consumable quotes and an internal database. Approximately 80% of the capital estimate is based
on detailed quotes with estimated labor installation. For the purposes of this study, initial capital expenditure is assumed to be costs
incurred in 2027, 2028 and mid-2029. By mid-2029, ore production from stopes has been established and the SX/EW plant has been installed
to begin copper production. Additional mine and plant capital costs are incurred from 2029 and 2052 to continue meeting mine ramp up
and production demands and are included in sustaining capital costs.
Total LOM capital
costs are $2.85 billion: $1.43 billion in initial capital and $1.42 billion in sustaining capital. Capital costs are summarized in Table 1-10.
Table 1-10:
Estimated Total Capital Cost
Capital
Costs Summary
Initial
Cost
($M)
Sustaining
Cost
($M)
Total
LOM Capital
Cost ($M)
Pre-production
Mining Costs
50
-
50
Mining
790
1,465
2,255
Process
384
60
444
Owners
Cost
17
-
17
Indirects
55
15
70
EPCM
49
5
54
Contingency
79
0
79
Total
Initial Capital
1,423
-
-
Total
Sustaining Capital
-
1,545
-
Reclamation
and Closure Costs*
3
-121
-119
Total
Life of Mine Capital Costs
1,426
1,424
2,850
Note: Closure costs include land sales
at the end of life of mine. Totals may not sum due to rounding.
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Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.17.2 Operating Cost Estimate
Total LOM operating
costs are $4.53 billion, as summarized in Table 1-11.
Table 1-11:
Estimated Operating Costs
Category
$M
Total
$/t
Ore Processed
$/lb
Copper Produced
Mining
Consumables
1,452
10.40
0.47
Mobile
Equipment
465
3.33
0.15
Labor
741
5.31
0.24
Power
251
1.80
0.08
Mine
Services and Indirect
157
1.12
0.05
Subtotal
3,066
21.95
0.99
SX/EW
Plant and Infrastructure
Consumables
285
2.04
0.09
Hauling
and Mobile Equipment
171
1.22
0.06
Labor
158
1.13
0.05
Power
365
2.61
0.12
Maintenance
68
0.49
0.02
Subtotal
1,047
7.50
0.34
G&A
418
2.99
0.14
Total
4,532
32.45
1.47
Note: Totals may not sum due to rounding.
Direct operating costs are exclusive of royalty payments.
1.18 Economic Analysis
Based on the cash
flow model, the after-tax financial model resulted in an internal rate of return (“IRR”) of 18.7% and a net present value
(“NPV”) of $1.52 billion using an 8% discount rate. The after-tax payback period, after start of operations, is 4.8
years. The pre-tax base case financial model resulted in an IRR of 20.2% and an NPV of $1.90 billion using an 8% discount rate.
The Santa Cruz
Copper Project contemplates average annual copper cathode production of approximately 75,000 tonnes for the first 15 years of copper
production and the average annual production is approximately 58,000 tonnes for the life of mine.
The total life
of mine is 24 years at an average C1 cash cost of $1.47 per pound of copper and sustaining cash costs of $2.28 per pound of copper.
SEPTEMBER 2026 1-33
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The financial analysis
summary is shown in Table 1-12.
Table 1-12:
Financial Analysis Summary
Description
Units
Life
of Mine
First
15 Years
Production
Data
Mine
Life
years
24
15
Reserve
Tonnes
Mt
140
110
Copper
Grade
%
1.08
1.11
Daily
Throughput
t/d
15,346
20,030
Annual
Copper Production
t/y
58,385
74,722
Total
Copper Cathode Produced
kt
1,401
1,121
Recovery
%
92.3
92.3
Capital
Costs
Initial
Capital
$M
1,426
1,426
Sustaining
Capital
$M
1,546
1,463
Unit
Costs
Mining
Cost
$/t
processed
21.95
21.52
Processing
Cost
$/t
processed
7.50
7.45
General
and Administrative Cost
$/t
processed
2.99
3.11
Royalties
$/t
processed
6.90
6.93
Total
Operating Cost
$/t
processed
39.35
39.00
Operating
+ Sustaining Cost
$/t
processed
50.41
52.50
C1
Cash Cost
$/lb
of copper
1.47
1.42
All-in-Sustaining
Cost
$/lb
of copper
2.28
2.27
Financial
Analysis
Copper
Price
$/lb
4.75
4.75
Domestic
Cathode Premium1
$/lb
0.14
0.14
Pre-Tax
Cashflow
$M
6,761
4,971
Pre-Tax
Net Present Value (8%)
$M
1,898
-
Pre-Tax
Internal Rate of Return
%
20.2
-
After-Tax
Cashflow
$M
5,575
4,133
After-Tax
Net Present Value (8%)
$M
1,519
-
After-Tax
Internal Rate of Return
%
18.7
-
After-Tax
Payback Period
year
4.8
-
1
See Section 16 for a discussion on copper premium.
SEPTEMBER 2026 1-34
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
1.19 Risks & Opportunities
Common to mining
projects are internal and external risks that could affect the Project's reliability, confidence, and/or economic viability. External
risks are generally applicable to all mining projects, such as the political situation in the Project’s region, metal prices, exchange
rates, and government legislation.
Ivanhoe Electric
retained BBA to facilitate a scored likelihood × consequence matrix workshop to identify development risks. Table 22-1 identifies
what are currently deemed to be the most significant Project risks, potential impacts, and possible mitigation approaches that could
reasonably affect the reliability or confidence of the Project.
Opportunities that
could enhance the Project's economics and timing are summarized in Table 22-2, excluding those typical to all mining projects, such
as changes in metal prices, exchange rates, etc. Further information and assessments are needed before including these opportunities
in the Project economics.
1.20 Conclusions
Under the assumptions
presented in this report, the Santa Cruz Copper Project consists of Mineral Resource and Mineral Reserve estimates that support a positive
cash flow.
1.21 Recommendations
The recommended
work programs to advance detailed engineering, operational readiness, permitting, and critical long-lead items total $60 million.
The budget for recommended work is summarized in Table 1-13.
Table 1-13:
Recommended Work Program Budget
Discipline
Cost
($M)
Permitting &
Environmental
2.0
Detailed
Engineering – Surface & Underground
5.0
Long-Lead
Items
49.0
Project
Support
4.0
Total
60.0
SEPTEMBER 2026 1-35
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
2. Introduction
2.1 Registrant for Whom the Report
was Prepared
This technical
report summary was prepared for Ivanhoe Electric, Inc. (“Ivanhoe Electric”) on the Santa Cruz Copper Project located
in Arizona, United States (Figure 3-1).
The Report was
prepared by BBA Consultants USA LP (“BBA”), Worley Group Inc. (“Worley”), Burns & McDonnell Engineering
Company, Inc. (“Burns & McDonnell”), Haley & Aldrich, Inc. (“H&A”), INTERA
Incorporated (“INTERA”), KCB Consultants Ltd. (“KCB”), Life Cycle Geo, LLC (“LCG”), Met Engineering,
LLC (“Met Engineering”), Paterson & Cooke USA, Ltd. (“P&C”), Stantec Consulting Services Inc.
(“Stantec”), and Tetra Tech, Inc. (“Tetra Tech”). None of the qualified persons is affiliated with the Company
or any other entity that has an ownership, royalty, or other interest in the property.
2.2 Purpose of the Report
This Report was
prepared to be attached as an exhibit to support mineral property disclosure, including Mineral Resource estimates and Mineral Reserve
estimates, for the Santa Cruz Copper Project in certain of Ivanhoe Electric’s filings with the Securities and Exchange Commission.
Mineral Resources
are reported for the Santa Cruz, East Ridge, and Texaco deposits. Mineral Reserves are reported for the Santa Cruz and East Ridge deposits.
2.3 Terms of Reference
Unless otherwise
indicated, all financial values are reported in United States dollars (currency abbreviation: USD; currency symbol: US$) including all
operating costs, capital costs, cash flows, taxes, revenues, expenses, and overhead distributions.
All capital and
operating cost estimates meet the requirements of S-K 1300 with an expected accuracy of -20% to +25%. A contingency of <15% has been
applied to capital cost estimates.
All pricing is
considered in Q2 2026 dollars.
Unless otherwise
indicated, capital and operating costs do not include tariffs or escalations.
Totals may not
sum due to rounding.
This Report uses
U.S. English. Units may be in either metric or US customary units as identified in the text. A list of abbreviations and units of measure
is provided in Section 24.
SEPTEMBER 2026 2-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Mineral Resources
and Mineral Reserves are reported using the definitions in Subpart 229.1300 – Disclosure by Registrants Engaged in Mining Operations
in Regulation S-K 1300 (“S-K1300”).
This Report contains
forward-looking statements; refer to the note regarding forward-looking statements at the front of the Report.
2.4 Report Date
Information in
the Report is current as of September 23, 2026.
2.5 Previous Technical Report Summaries
This technical
report summary supersedes the previous technical report summary, “S-K 1300 Preliminary Feasibility Study & Technical Report
Summary, Santa Cruz Copper Project, Arizona” (“2025 PFS”).
2.6 Qualified Persons
This Report was
authored and compiled by third-party firms who are mining experts who meet the criteria for such according to 17 CFR § 229.1302(b)(1).
Table 2-1 lists the contributions of each third-party firm.
In addition to
their individual sections, the third-party firms also contributed to Section 1, Executive Summary; Section 2.6, Qualified Persons,
Section 2.7, Site Visits & Scope of Personal Inspection, Section 22, Interpretation and Conclusions; Section 23,
Recommendations; and Section 24, References, according to their area of expertise.
A portion of the
information was provided by the registrant, Ivanhoe Electric, as set forth in Section 25. The third-party firms have relied
on the registrant for the information specified in Section 25.
2.7 Site Visits & Scope of
Personal Inspection
Consulting QPs
and support staff visited the Project site. The scope of inspection by each discipline area is summarized in Table 2-2.
2.8 Information Sources
The reports and
documents listed in Sections 24 and 25 were used to support the preparation of the Report.
SEPTEMBER 2026 2-2
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 2-1:
Qualified Person Contributions
Legal
Company Name
Abbreviation
Report
Sections and Subsection Responsibility
BBA
Consultants USA LP
BBA
1.1
to 1.8, 1.10 to 1.12, 1.15, 1.17 to 1.21, 2.1 to 2.8, 3.1 to 3.7, 4.1 to 4.3, 5.1, 6.1 to 6.4, 7.1 to 7.3, 8.1 to 8.6, 9.1 to 9.9,
11.1 to 11.14, 12.1 to 12.5, 13.1 to 13.11 (except 13.11.3 and 13.11.5), 14.7, 16.1 to 16.3, 18.1, 18.1.1, 18.2, 18.2.1, 18.2.3,
18.2.4, 18.3, 18.3.1, 18.3.3, 19.1 to 19.4, 20, 21, 22.1 to 22.7, 22.9 to 22.11, 22.14, 22.16 to 22.20, 23.1, 23.3, 23.3.2, 23.4,
23.5, 24, 25
Worley
Group Inc.
Worley
1.1,
1.2, 1.13, 1.14, 1.17, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 14.1 to 14.6 (except 14.5.1, 14.5.2, 14.5.4), 14.8 to14.10, 15.1 (except
15.1.4 and 15.1.7), 15.2, 18.1, 18.1.2, 18.2, 18.2.2, 18.2.3, 18.2.4, 18.3, 18.3.2, 18.3.3, 21, 22.1, 22.12, 22.13, 22.16, 22.17,
22.19, 23.1, 23.3, 23.3.1, 23.4, 24, 25
Burns &
McDonnell Engineering Company, Inc.
Burns &
McDonnell
1.1,
1.2, 1.14, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 15.1.4, 15.2, 21, 22.1, 22.13, 22.19, 23.1, 23.4, 24, 25
Haley &
Aldrich, Inc.
H&A
1.1,
1.2, 1.16, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 17.4 to 17.6, 17.8, 21, 22.1, 22.15, 22.19, 23.1, 24, 25
INTERA
Incorporated
INTERA
1.1,
1.2, 1.7, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 7.4, 21, 22.1, 22.6, 22.19, 23.1, 24, 25
KCB
Consultants Ltd.
KCB
1.1,
1.2, 1.13, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 14.5.1, 14.5.2, 14.5.4, 21, 22.1, 22.19, 23.1, 24, 25
Life
Cycle Geo, LLC
LCG
1.1,
1.2, 1.14, 1.16, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 15.1.7, 15.2, 17.1.8, 17.1.9, 17.3, 17.8, 21, 22.1, 22.15, 22.19, 23.1, 24,
25
Met
Engineering, LLC
Met
Engineering
1.1,
1.2, 1.9, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 10.1 to 10.5, 21, 22.1, 22.8, 22.19, 23.1, 24, 25
Paterson &
Cooke USA, Ltd.
P&C
1.1,
1.2, 1.12, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 13.11.3, 18.3.1.1, 21, 22.1, 22.11, 22.19, 23.1, 23.3.1, 24, 25
Stantec
Consulting Services Inc.
Stantec
1.1,
1.2, 1.12, 1.19, 1.21, 2.1 to 2.4, 2.6 to 2.8, 13.11.5, 21, 22.1, 22.19, 23.1, 23.3.2, 23.4, 24, 25
Tetra
Tech, Inc.
Tetra
Tech
1.1,
1.2, 1.16, 1.19, 1.21, 2.1 to 2.4, 2.6to 2.8, 17.1 (except for 17.1.8 and 17.1.9), 17.2, 17.7, 17.8, 21, 22.1, 22.15, 22.19, 23.1,
23.2, 23.3, 24, 25
SEPTEMBER 2026 2-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 2-2:
Site Visit
Area
of Investigation
Company
Site
Visit Date
Scope
of Personal Inspection
Mineral
Resource Estimates; Mineral Reserve Estimates; Geology; Geotechnical; Mine Planning; Underground Infrastructure
BBA
February 27,
2024
April 22 to 23, 2024
July 16 to 17, 2024
August 22 to 23, 2024
Reviewed
past work, active work, active drill sites, geology controls, data capture processes, sample chain of custody, and drill logs and core.
Verified data entry process and
collar locations.
Process;
Infrastructure
Worley
August 14,
2026
Site
tour and inspected proposed sites for processing facilities and surface infrastructure. Inspected geology samples.
Metallurgical
Testwork; Mineral Recovery; Infrastructure
Met
Engineering
February 23,
2023, August 14, 2026
Reviewed
core and inspected proposed sites for processing facilities.
Spent
Ore Facility and Heap Leach Pad; Foundation Conditions – Geotechnical
KCB
July 13,
2023
January 14, 2024
Visited
locations within the footprints of these structures for visual observation.
Observed drilling and recovered
drill core.
Hydrogeology
INTERA
August 10,
2023
November 5, 2023
May 27 to 29, 2024
Site
tour, reviewed core and geology, hydrogeology drilling and testing kick-off, reviewed and developed the site hydrogeology model and
discussed the groundwater model development.
Environmental
Tetra
Tech
August 24,
2023
Site
examination, visited core facility, and reviewed environmental components of the proposed Project.
Geochemistry
and Water Quality
LCG
July 13,
2022
Site
examination, visited core facility, reviewed core and associated environmental and geochemical properties, discussed historical water
quality and received Project overview.
Closure
H&A
August 23,
2023
Site
examination, visited core facility, overview of the Project and discussed reclamation and closure components.
Power
Sources
Burns &
McDonnell
April 28,
2025
August 12, 2026
Viewed
proposed location for renewables campus.
Ventilation
Stantec
February 28,
2025
Reviewed
general site layout and topography.
Backfill
P&C
February 20,
2025
Site
tour to proposed boxcut and paste plant locations. Visited nearby sources of potential paste feed.
SEPTEMBER 2026 2-4
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
3. Property
Description
3.1 Location
The
Santa Cruz Copper Project is located 11 km west of Casa Grande, Arizona, approximately 92 km south of Phoenix (Figure 1-1). It is
approximately 9 km southwest of the Sacaton deposit, which was previously mined by ASARCO. The Project includes a cluster of deposits
and exploration areas that measure approximately 11 km long by 1.6 km wide.
Project
centroid coordinates are at approximately -111.88212, 32.89319 (WGS84) in Township 6 S, Range
4 E, Section 24, NE Quarter. The Santa Cruz exploration area, including the Santa Cruz Copper Project, covers 82.37 km2.
3.2 Property & Mineral Title
BBA has not independently
verified the following information which is in the public domain and have sourced the data from Ivanhoe Electric including Hall (2025)
and LaLonde (2025).
3.2.1 Fee Simple
“Fee simple”
is the most common and absolute type of property ownership in the United States. By owning a fee simple estate, the property owner has
control over the surface, subsurface, and mineral rights, as well as the rights to the air above the property. These rights can be split
to different owners. Each of these rights (or all of them together) can then be sold, gifted, or bequeathed to another individual or
entity by the property owner. No fees or renewals are due on owned fee simple land, only property taxes.
3.2.2 Lode Mining Claims
Unpatented Mining
Lode Claims Federal (30 USC and 43 CFR) laws concerning mining claims on Federal land are based on an 1872 Federal law titled “An
Act to Promote the Development of Mineral Resources of the United States.” Mining claim procedures are still based on this law,
but the original scope of the law has been reduced by several legislative changes.
Most details regarding
procedures for locating claims on Federal lands have been left to individual states, providing that state laws do not conflict with Federal
laws (30 USC 28; 43 CFR 3831.1).
Mineral deposits
are located either by lode or placer claims (43 CFR 3840). The 1872 Federal law requires a lode claim for “veins or lodes of quartz
or other rock in place” (30 USC 26; 43 CFR 3841.1), and a placer claim for all “forms of deposit, excepting veins of quartz
or other rock in place” (30
SEPTEMBER 2026 3-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
USC 35). The maximum size of a lode claim is 1,500 ft (457 m) in length and 600 ft (183 m) in width,
whereas an individual or company can locate a placer claim as much as 20 acres (8 ha) in area.
Ivanhoe
Electric controls 277 Unpatented Mining Lode Claims as part of the Santa Cruz property package. Unpatented Mining Lode Claims have annual
maintenance fee requirements due on or before September 1st of every calendar year. Unpatented Mining Lode Claims give the claimant
exclusive rights to the federal mineral estate on which they are located. All claims are currently in good standing and a table of claims
is provided in Table 3-2 in Section 3.3.1.
3.2.3 Arizona State Land Department
Mineral Exploration Permits
Mineral exploration
permits are for lands held by Arizona State Trust and managed by Arizona State Land Department. Revenue generated goes to several public
entities including kindergarten to grade 12 public education and state universities.
Mineral exploration
permits are granted for a five-year maximum term, provided annual renewals applications and fees are submitted. The permit holder can
submit for a new mineral exploration permit at the end of the five-year term and will be “first in line” for another five-year
mineral exploration permit term. A permit grants the holder the exclusive right to explore for minerals during the permit term. A permit
does NOT grant exclusive access to surface, nor the right to mine (this would occur via a land auction or a mineral lease).
Arizona State Land
Department (“ASLD”) mining exploration permits are held for five years and subject to annual renewal fees, which include
$500 per permit plus $1 per acre rent plus work expenditures or an in-lieu fee of $10 per acre for Years 1 and 2 and $20 per acre for
Years 3 through 5. If additional time beyond five years is required to continue characterization of an ore deposit, a new application
for a mineral exploration permit must be submitted prior to the expiry of the permit.
3.2.4 Stock-Raising Homestead Act
The Stock-Raising
Homestead Act of 1916 provided settlers patented surface ownership of federal lands for ranching purposes. Unlike previous homestead
acts, the 1916 Act separated surface rights from subsurface rights, resulting in split estates.
Some of Ivanhoe
Electric’s 277 Unpatented Mining Lode Claims are located on the federal mineral rights associated with certain Stock-Raising Homestead
Act Lands.
SEPTEMBER 2026 3-2
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
3.3 Ownership
The Santa Cruz
Copper Project lies primarily on fee simple land. Surface and mineral titles, and associated rights, were acquired by Ivanhoe Electric
as purchases and options on private parcels.
In 2019, Ivanhoe
Electric’s predecessor, High Power Exploration Inc. (“HPX”), entered into an agreement with Central Arizona Resources, Ltd.
(“CAR”) to access historical data, and stake 238 unpatented mining lode claims on the area around, and including, the Santa
Cruz Copper Project. In 2021, Ivanhoe Electric was formed from a split from HPX, and then, through CAR, signed an Option Agreement
with D.R. Horton Phoenix East Construction, Inc. (“DRH”) for the option to purchase the mineral, certain surface parcels,
39 unpatented claims on split estate land, and associated rights for the Santa Cruz Copper Project. Also in 2021, Ivanhoe Electric,
through CAR, signed a Surface Use Agreement with Legends Property, LLC (“Legends”) to enable access and exploration on the
lands encompassed by the DRH Option. In 2022, Ivanhoe Electric consolidated 100% ownership of the Project from CAR by assigning
the agreements to its wholly-owned subsidiary, Mesa Cobre Holding Corporation (“Mesa Cobre”). In 2023, Legends formed Wolff-Harvard
Ventures, LP (“Wolff-Harvard”) as the party of title to the land.
3.3.1 Mineral Title Ownership
In 2021, Ivanhoe
Electric acquired 238 unpatented mining lode claims from CAR. In addition, Ivanhoe Electric acquired fee simple mineral title for
two further land parcels: “CG100” and “Skull Valley”. In 2022, Ivanhoe Electric acquired the 20-acre “Skull
Valley” property from Skull Valley Capital, LLC in the southeastern area of the Project and a 100.33-acre “CG100” from
CG 100 Land Partners LLC in the northeastern area of the Project.
In 2023, Ivanhoe
Electric acquired 16 Arizona State Land Department mineral exploration permits covering 27.95 km2 (~6,900 acres) of state
mineral land with exploration potential. The permits expire at various dates ranging from September 2030 to May 2031.
In 2024, Ivanhoe
Electric exercised the agreement with DRH, granting Ivanhoe Electric, through Mesa Cobre, 100% of the mineral title for 26.0 km2
(~6,425 acres) of fee simple mineral estate, 39 federal unpatented mining lode claims, and 2.6 km2 (~642.5 acres) of Stock-Raising
Homestead Act lands.
Unpatented
mineral lode claims renew annually on September 1, with a fee of $200 per claim. Mineral title is summarized in Table 3-1
and shown in Figure 3-1. Claims are listed in Table 3-2.
SEPTEMBER 2026 3-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 3-1:
Summary of Ivanhoe Electric’s Mineral Title
Land
Designation
Area
(km2)
Fee
Simple Mineral Ownership
25.98
Unpatented
Mining Lode Claims (277 claims)
19.30
Arizona
State Land Department Mineral Exploration Permits (16 permits)
30.47
Source: Ivanhoe Electric,
2026
Figure 3-1:
Santa Cruz Copper Project Mineral Control Map
SEPTEMBER 2026 3-4
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 3-2:
Unpatented Mining Lode Claims
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101424918
AZ101424918
AMC47328
AMC47300
CHAVO
NO 55
ACTIVE
LODE
CLAIM
2027-09-01
AZ101339292
AZ101339292
AMC47333
AMC47300
NIK
NO 5
ACTIVE
LODE
CLAIM
2027-09-01
AZ101421434
AZ101421434
AMC47334
AMC47300
NIK
NO 6
ACTIVE
LODE
CLAIM
2027-09-01
AZ101315626
AZ101315626
AMC47335
AMC47300
NIK
NO 7
ACTIVE
LODE
CLAIM
2027-09-01
AZ101423475
AZ101423475
AMC47336
AMC47300
NIK
NO 8
ACTIVE
LODE
CLAIM
2027-09-01
AZ101314482
AZ101314482
AMC47337
AMC47300
NIK
NO 9
ACTIVE
LODE
CLAIM
2027-09-01
AZ101513061
AZ101513061
AMC47338
AMC47300
NIK
NO 10
ACTIVE
LODE
CLAIM
2027-09-01
AZ101404184
AZ101404184
AMC47339
AMC47300
NIK
NO 11
ACTIVE
LODE
CLAIM
2027-09-01
AZ101422640
AZ101422640
AMC47340
AMC47300
NIK
NO 12
ACTIVE
LODE
CLAIM
2027-09-01
AZ102524120
AZ102524120
AMC47341
AMC47300
NIK
NO 13
ACTIVE
LODE
CLAIM
2027-09-01
AZ101315734
AZ101315734
AMC47342
AMC47300
NIK
NO 14
ACTIVE
LODE
CLAIM
2027-09-01
AZ101403486
AZ101403486
AMC47347
AMC47300
NIK
NO 19
ACTIVE
LODE
CLAIM
2027-09-01
AZ101401035
AZ101401035
AMC47348
AMC47300
NIK
NO 20
ACTIVE
LODE
CLAIM
2027-09-01
AZ101422533
AZ101422533
AMC47349
AMC47300
NIK
NO 21
ACTIVE
LODE
CLAIM
2027-09-01
AZ101310451
AZ101310451
AMC47350
AMC47300
NIK
NO 22
ACTIVE
LODE
CLAIM
2027-09-01
AZ101404654
AZ101404654
AMC47351
AMC47300
NIK
NO 23
ACTIVE
LODE
CLAIM
2027-09-01
AZ101403046
AZ101403046
AMC47352
AMC47300
NIK
NO 24
ACTIVE
LODE
CLAIM
2027-09-01
AZ101400680
AZ101400680
AMC47353
AMC47300
NIK
NO 25
ACTIVE
LODE
CLAIM
2027-09-01
AZ101426616
AZ101426616
AMC47354
AMC47300
NIK
NO 26
ACTIVE
LODE
CLAIM
2027-09-01
AZ101420451
AZ101420451
AMC47355
AMC47300
NIK
NO 27
ACTIVE
LODE
CLAIM
2027-09-01
AZ101340104
AZ101340104
AMC47356
AMC47300
NIK
NO 28
ACTIVE
LODE
CLAIM
2027-09-01
AZ101339901
AZ101339901
AMC47357
AMC47300
NIK
NO 29
ACTIVE
LODE
CLAIM
2027-09-01
AZ101319426
AZ101319426
AMC47358
AMC47300
NIK
NO 30
ACTIVE
LODE
CLAIM
2027-09-01
AZ101515736
AZ101515736
AMC47359
AMC47300
NIK
NO 31
ACTIVE
LODE
CLAIM
2027-09-01
AZ101422970
AZ101422970
AMC47360
AMC47300
NIK
NO 32
ACTIVE
LODE
CLAIM
2027-09-01
AZ101424011
AZ101424011
AMC47361
AMC47300
NIK
NO 33
ACTIVE
LODE
CLAIM
2027-09-01
AZ101425394
AZ101425394
AMC47362
AMC47300
NIK
NO 34
ACTIVE
LODE
CLAIM
2027-09-01
AZ101425654
AZ101425654
AMC47363
AMC47300
NIK
NO 35
ACTIVE
LODE
CLAIM
2027-09-01
AZ102521618
AZ102521618
AMC47364
AMC47300
NIK
NO 36
ACTIVE
LODE
CLAIM
2027-09-01
AZ101513001
AZ101513001
AMC47365
AMC47300
NIK
NO 37
ACTIVE
LODE
CLAIM
2027-09-01
AZ101313279
AZ101313279
AMC47366
AMC47300
NIK
NO 38
ACTIVE
LODE
CLAIM
2027-09-01
AZ101510534
AZ101510534
AMC47367
AMC47300
NIK
NO 39
ACTIVE
LODE
CLAIM
2027-09-01
AZ101376637
AZ101376637
AMC47368
AMC47300
NIK
NO 40
ACTIVE
LODE
CLAIM
2027-09-01
AZ101406903
AZ101406903
AMC47369
AMC47300
NIK
NO 41
ACTIVE
LODE
CLAIM
2027-09-01
AZ101316806
AZ101316806
AMC47370
AMC47300
NIK
NO 50
ACTIVE
LODE
CLAIM
2027-09-01
AZ101515425
AZ101515425
AMC47371
AMC47300
NIK
NO 51
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-5
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101511715
AZ101511715
AMC47372
AMC47300
NIK
NO 52
ACTIVE
LODE
CLAIM
2027-09-01
AZ101515428
AZ101515428
AMC47373
AMC47300
NIK
NO 53
ACTIVE
LODE
CLAIM
2027-09-01
AZ101400730
AZ101400730
AMC47374
AMC47300
NIK
NO 54
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871129
AZ101871129
AMC460163
AMC460163
SCX
1
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871130
AZ101871130
AMC460164
AMC460163
SCX
2
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871131
AZ101871131
AMC460165
AMC460163
SCX
3
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871132
AZ101871132
AMC460166
AMC460163
SCX
4
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871133
AZ101871133
AMC460167
AMC460163
SCX
5
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871134
AZ101871134
AMC460168
AMC460163
SCX
6
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871135
AZ101871135
AMC460169
AMC460163
SCX
7
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871136
AZ101871136
AMC460170
AMC460163
SCX
8
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871137
AZ101871137
AMC460171
AMC460163
SCX
9
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871138
AZ101871138
AMC460172
AMC460163
SCX
10
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871139
AZ101871139
AMC460173
AMC460163
SCX
11
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871140
AZ101871140
AMC460174
AMC460163
SCX
12
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871141
AZ101871141
AMC460175
AMC460163
SCX
13
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871142
AZ101871142
AMC460176
AMC460163
SCX
14
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871143
AZ101871143
AMC460177
AMC460163
SCX
15
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871144
AZ101871144
AMC460178
AMC460163
SCX
16
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871947
AZ101871947
AMC460179
AMC460163
SCX
17
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871948
AZ101871948
AMC460180
AMC460163
SCX
18
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871949
AZ101871949
AMC460181
AMC460163
SCX
19
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871950
AZ101871950
AMC460182
AMC460163
SCX
20
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871951
AZ101871951
AMC460183
AMC460163
SCX
21
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871952
AZ101871952
AMC460184
AMC460163
SCX
22
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871953
AZ101871953
AMC460185
AMC460163
SCX
23
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871954
AZ101871954
AMC460186
AMC460163
SCX
24
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871955
AZ101871955
AMC460187
AMC460163
SCX
25
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871956
AZ101871956
AMC460188
AMC460163
SCX
26
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871957
AZ101871957
AMC460189
AMC460163
SCX
27
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871958
AZ101871958
AMC460190
AMC460163
SCX
28
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871959
AZ101871959
AMC460191
AMC460163
SCX
29
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871960
AZ101871960
AMC460192
AMC460163
SCX
30
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871961
AZ101871961
AMC460193
AMC460163
SCX
31
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871962
AZ101871962
AMC460194
AMC460163
SCX
32
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871963
AZ101871963
AMC460195
AMC460163
SCX
33
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871964
AZ101871964
AMC460196
AMC460163
SCX
34
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-6
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101871965
AZ101871965
AMC460197
AMC460163
SCX
35
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871966
AZ101871966
AMC460198
AMC460163
SCX
36
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871967
AZ101871967
AMC460199
AMC460163
SCX
37
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872776
AZ101872776
AMC460200
AMC460163
SCX
38
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872777
AZ101872777
AMC460201
AMC460163
SCX
39
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872778
AZ101872778
AMC460202
AMC460163
SCX
40
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872779
AZ101872779
AMC460203
AMC460163
SCX
41
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872780
AZ101872780
AMC460204
AMC460163
SCX
42
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872781
AZ101872781
AMC460205
AMC460163
SCX
43
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872782
AZ101872782
AMC460206
AMC460163
SCX
44
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872783
AZ101872783
AMC460207
AMC460163
SCX
45
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872784
AZ101872784
AMC460208
AMC460163
SCX
46
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872785
AZ101872785
AMC460209
AMC460163
SCX
47
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872786
AZ101872786
AMC460210
AMC460163
SCX
48
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872787
AZ101872787
AMC460211
AMC460163
SCX
49
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872788
AZ101872788
AMC460212
AMC460163
SCX
50
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872789
AZ101872789
AMC460213
AMC460163
SCX
51
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872790
AZ101872790
AMC460214
AMC460163
SCX
52
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872791
AZ101872791
AMC460215
AMC460163
SCX
53
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872792
AZ101872792
AMC460216
AMC460163
SCX
54
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872793
AZ101872793
AMC460217
AMC460163
SCX
55
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872794
AZ101872794
AMC460218
AMC460163
SCX
56
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872795
AZ101872795
AMC460219
AMC460163
SCX
57
ACTIVE
LODE
CLAIM
2027-09-01
AZ101872796
AZ101872796
AMC460220
AMC460163
SCX
58
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873617
AZ101873617
AMC460221
AMC460163
SCX
59
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873618
AZ101873618
AMC460222
AMC460163
SCX
60
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873619
AZ101873619
AMC460223
AMC460163
SCX
61
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873620
AZ101873620
AMC460224
AMC460163
SCX
62
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873621
AZ101873621
AMC460225
AMC460163
SCX
63
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873622
AZ101873622
AMC460226
AMC460163
SCX
64
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873623
AZ101873623
AMC460227
AMC460163
SCX
65
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873624
AZ101873624
AMC460228
AMC460163
SCX
66
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873625
AZ101873625
AMC460229
AMC460163
SCX
67
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873626
AZ101873626
AMC460230
AMC460163
SCX
68
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873627
AZ101873627
AMC460231
AMC460163
SCX
69
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873628
AZ101873628
AMC460232
AMC460163
SCX
70
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873629
AZ101873629
AMC460233
AMC460163
SCX
71
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-7
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101873630
AZ101873630
AMC460234
AMC460163
SCX
72
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873631
AZ101873631
AMC460235
AMC460163
SCX
73
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873632
AZ101873632
AMC460236
AMC460163
SCX
74
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873633
AZ101873633
AMC460237
AMC460163
SCX
75
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873634
AZ101873634
AMC460238
AMC460163
SCX
76
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873635
AZ101873635
AMC460239
AMC460163
SCX
77
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873636
AZ101873636
AMC460240
AMC460163
SCX
78
ACTIVE
LODE
CLAIM
2027-09-01
AZ101873637
AZ101873637
AMC460241
AMC460163
SCX
79
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874470
AZ101874470
AMC460242
AMC460163
SCX
80
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874471
AZ101874471
AMC460243
AMC460163
SCX
81
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874472
AZ101874472
AMC460244
AMC460163
SCX
82
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874473
AZ101874473
AMC460245
AMC460163
SCX
83
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874474
AZ101874474
AMC460246
AMC460163
SCX
84
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874475
AZ101874475
AMC460247
AMC460163
SCX
85
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874476
AZ101874476
AMC460248
AMC460163
SCX
86
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874477
AZ101874477
AMC460249
AMC460163
SCX
87
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874478
AZ101874478
AMC460250
AMC460163
SCX
88
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874479
AZ101874479
AMC460251
AMC460163
SCX
89
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874480
AZ101874480
AMC460252
AMC460163
SCX
90
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874481
AZ101874481
AMC460253
AMC460163
SCX
91
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874482
AZ101874482
AMC460254
AMC460163
SCX
92
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874483
AZ101874483
AMC460255
AMC460163
SCX
93
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874484
AZ101874484
AMC460256
AMC460163
SCX
94
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874485
AZ101874485
AMC460257
AMC460163
SCX
95
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874486
AZ101874486
AMC460258
AMC460163
SCX
96
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874487
AZ101874487
AMC460259
AMC460163
SCX
97
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874488
AZ101874488
AMC460260
AMC460163
SCX
98
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874489
AZ101874489
AMC460261
AMC460163
SCX
99
ACTIVE
LODE
CLAIM
2027-09-01
AZ101874490
AZ101874490
AMC460262
AMC460163
SCX
100
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875304
AZ101875304
AMC460263
AMC460163
SCX
101
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875305
AZ101875305
AMC460264
AMC460163
SCX
102
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875306
AZ101875306
AMC460265
AMC460163
SCX
103
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875307
AZ101875307
AMC460266
AMC460163
SCX
104
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875308
AZ101875308
AMC460267
AMC460163
SCX
105
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875309
AZ101875309
AMC460268
AMC460163
SCX
106
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875310
AZ101875310
AMC460269
AMC460163
SCX
107
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875311
AZ101875311
AMC460270
AMC460163
SCX
108
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-8
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101875312
AZ101875312
AMC460271
AMC460163
SCX
109
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875313
AZ101875313
AMC460272
AMC460163
SCX
110
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875314
AZ101875314
AMC460273
AMC460163
SCX
111
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875315
AZ101875315
AMC460274
AMC460163
SCX
112
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875316
AZ101875316
AMC460275
AMC460163
SCX
113
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875317
AZ101875317
AMC460276
AMC460163
SCX
114
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875318
AZ101875318
AMC460277
AMC460163
SCX
118
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875319
AZ101875319
AMC460278
AMC460163
SCX
119
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875320
AZ101875320
AMC460279
AMC460163
SCX
120
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875321
AZ101875321
AMC460280
AMC460163
SCX
121
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875322
AZ101875322
AMC460281
AMC460163
SCX
122
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875323
AZ101875323
AMC460282
AMC460163
SCX
123
ACTIVE
LODE
CLAIM
2027-09-01
AZ101875324
AZ101875324
AMC460283
AMC460163
SCX
124
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876144
AZ101876144
AMC460284
AMC460163
SCX
125
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876145
AZ101876145
AMC460285
AMC460163
SCX
126
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876146
AZ101876146
AMC460286
AMC460163
SCX
127
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876147
AZ101876147
AMC460287
AMC460163
SCX
128
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876148
AZ101876148
AMC460288
AMC460163
SCX
129
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876149
AZ101876149
AMC460289
AMC460163
SCX
130
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876150
AZ101876150
AMC460290
AMC460163
SCX
131
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876151
AZ101876151
AMC460291
AMC460163
SCX
132
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876152
AZ101876152
AMC460292
AMC460163
SCX
133
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876153
AZ101876153
AMC460293
AMC460163
SCX
134
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876154
AZ101876154
AMC460294
AMC460163
SCX
135
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876155
AZ101876155
AMC460295
AMC460163
SCX
136
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876156
AZ101876156
AMC460296
AMC460163
SCX
137
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876157
AZ101876157
AMC460297
AMC460163
SCX
138
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876158
AZ101876158
AMC460298
AMC460163
SCX
139
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876159
AZ101876159
AMC460299
AMC460163
SCX
140
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876160
AZ101876160
AMC460300
AMC460163
SCX
141
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876161
AZ101876161
AMC460301
AMC460163
SCX
142
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876162
AZ101876162
AMC460302
AMC460163
SCX
143
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876163
AZ101876163
AMC460303
AMC460163
SCX
144
ACTIVE
LODE
CLAIM
2027-09-01
AZ101876164
AZ101876164
AMC460304
AMC460163
SCX
145
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717758
AZ101717758
AMC460305
AMC460163
SCX
146
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717759
AZ101717759
AMC460306
AMC460163
SCX
147
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717760
AZ101717760
AMC460307
AMC460163
SCX
148
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-9
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101717761
AZ101717761
AMC460308
AMC460163
SCX
149
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717762
AZ101717762
AMC460309
AMC460163
SCX
150
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717763
AZ101717763
AMC460310
AMC460163
SCX
151
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717764
AZ101717764
AMC460311
AMC460163
SCX
152
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717765
AZ101717765
AMC460312
AMC460163
SCX
153
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717766
AZ101717766
AMC460313
AMC460163
SCX
154
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717767
AZ101717767
AMC460314
AMC460163
SCX
155
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717768
AZ101717768
AMC460315
AMC460163
SCX
156
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717769
AZ101717769
AMC460316
AMC460163
SCX
157
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717770
AZ101717770
AMC460317
AMC460163
SCX
158
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717771
AZ101717771
AMC460318
AMC460163
SCX
159
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717772
AZ101717772
AMC460319
AMC460163
SCX
160
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717773
AZ101717773
AMC460320
AMC460163
SCX
161
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717774
AZ101717774
AMC460321
AMC460163
SCX
162
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717775
AZ101717775
AMC460322
AMC460163
SCX
163
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717776
AZ101717776
AMC460323
AMC460163
SCX
164
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717777
AZ101717777
AMC460324
AMC460163
SCX
165
ACTIVE
LODE
CLAIM
2027-09-01
AZ101717778
AZ101717778
AMC460325
AMC460163
SCX
166
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718617
AZ101718617
AMC460326
AMC460163
SCX
167
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718618
AZ101718618
AMC460327
AMC460163
SCX
168
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718619
AZ101718619
AMC460328
AMC460163
SCX
169
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718620
AZ101718620
AMC460329
AMC460163
SCX
170
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718621
AZ101718621
AMC460330
AMC460163
SCX
171
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718622
AZ101718622
AMC460331
AMC460163
SCX
172
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718623
AZ101718623
AMC460332
AMC460163
SCX
173
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718624
AZ101718624
AMC460333
AMC460163
SCX
174
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718625
AZ101718625
AMC460334
AMC460163
SCX
175
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718626
AZ101718626
AMC460335
AMC460163
SCX
176
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718627
AZ101718627
AMC460336
AMC460163
SCX
177
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718628
AZ101718628
AMC460337
AMC460163
SCX
178
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718629
AZ101718629
AMC460338
AMC460163
SCX
179
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718630
AZ101718630
AMC460339
AMC460163
SCX
180
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718631
AZ101718631
AMC460340
AMC460163
SCX
181
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718632
AZ101718632
AMC460341
AMC460163
SCX
182
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718633
AZ101718633
AMC460342
AMC460163
SCX
183
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718634
AZ101718634
AMC460343
AMC460163
SCX
184
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718635
AZ101718635
AMC460344
AMC460163
SCX
185
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-10
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101718636
AZ101718636
AMC460345
AMC460163
SCX
186
ACTIVE
LODE
CLAIM
2027-09-01
AZ101718637
AZ101718637
AMC460346
AMC460163
SCX
187
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719456
AZ101719456
AMC460347
AMC460163
SCX
188
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719457
AZ101719457
AMC460348
AMC460163
SCX
189
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719458
AZ101719458
AMC460349
AMC460163
SCX
190
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719459
AZ101719459
AMC460350
AMC460163
SCX
191
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719460
AZ101719460
AMC460351
AMC460163
SCX
192
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719461
AZ101719461
AMC460352
AMC460163
SCX
193
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719462
AZ101719462
AMC460353
AMC460163
SCX
194
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719463
AZ101719463
AMC460354
AMC460163
SCX
195
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719464
AZ101719464
AMC460355
AMC460163
SCX
196
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719465
AZ101719465
AMC460356
AMC460163
SCX
197
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719466
AZ101719466
AMC460357
AMC460163
SCX
198
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719467
AZ101719467
AMC460358
AMC460163
SCX
199
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719468
AZ101719468
AMC460359
AMC460163
SCX
200
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719469
AZ101719469
AMC460360
AMC460163
SCX
201
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719470
AZ101719470
AMC460361
AMC460163
SCX
202
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719471
AZ101719471
AMC460362
AMC460163
SCX
203
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719472
AZ101719472
AMC460363
AMC460163
SCX
204
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719473
AZ101719473
AMC460364
AMC460163
SCX
205
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719474
AZ101719474
AMC460365
AMC460163
SCX
206
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719475
AZ101719475
AMC460366
AMC460163
SCX
207
ACTIVE
LODE
CLAIM
2027-09-01
AZ101719476
AZ101719476
AMC460367
AMC460163
SCX
208
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720299
AZ101720299
AMC460368
AMC460163
SCX
209
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720300
AZ101720300
AMC460369
AMC460163
SCX
210
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720301
AZ101720301
AMC460370
AMC460163
SCX
211
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720302
AZ101720302
AMC460371
AMC460163
SCX
212
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720303
AZ101720303
AMC460372
AMC460163
SCX
213
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720304
AZ101720304
AMC460373
AMC460163
SCX
214
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720305
AZ101720305
AMC460374
AMC460163
SCX
215
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720306
AZ101720306
AMC460375
AMC460163
SCX
216
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720307
AZ101720307
AMC460376
AMC460163
SCX
217
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720308
AZ101720308
AMC460377
AMC460163
SCX
218
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720309
AZ101720309
AMC460378
AMC460163
SCX
219
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720310
AZ101720310
AMC460379
AMC460163
SCX
220
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720311
AZ101720311
AMC460380
AMC460163
SCX
221
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720312
AZ101720312
AMC460381
AMC460163
SCX
222
ACTIVE
LODE
CLAIM
2027-09-01
SEPTEMBER 2026 3-11
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Serial
Number
Lead
File Number
Legacy
Serial Number
Legacy
Lead File Number
Claim
Name
Case
Disposition
Claim
Type
Next
Payment Due Date
AZ101720313
AZ101720313
AMC460382
AMC460163
SCX
223
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720314
AZ101720314
AMC460383
AMC460163
SCX
224
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720315
AZ101720315
AMC460384
AMC460163
SCX
225
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720316
AZ101720316
AMC460385
AMC460163
SCX
226
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720317
AZ101720317
AMC460386
AMC460163
SCX
227
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720318
AZ101720318
AMC460387
AMC460163
SCX
228
ACTIVE
LODE
CLAIM
2027-09-01
AZ101720319
AZ101720319
AMC460388
AMC460163
SCX
229
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871145
AZ101871145
AMC460389
AMC460163
SCX
230
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871146
AZ101871146
AMC460390
AMC460163
SCX
231
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871147
AZ101871147
AMC460391
AMC460163
SCX
232
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871148
AZ101871148
AMC460392
AMC460163
SCX
233
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871149
AZ101871149
AMC460393
AMC460163
SCX
244
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871150
AZ101871150
AMC460394
AMC460163
SCX
245
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871151
AZ101871151
AMC460395
AMC460163
SCX
246
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871152
AZ101871152
AMC460396
AMC460163
SCX
247
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871153
AZ101871153
AMC460397
AMC460163
SCX
248
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871154
AZ101871154
AMC460398
AMC460163
SCX
249
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871155
AZ101871155
AMC460399
AMC460163
SCX
250
ACTIVE
LODE
CLAIM
2027-09-01
AZ101871156
AZ101871156
AMC460400
AMC460163
SCX
251
ACTIVE
LODE
CLAIM
2027-09-01
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S-K 1300 Preliminary Feasibility Study &
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3.3.2 Surface Title Ownership
In 2022, Ivanhoe
Electric acquired the surface rights to two land parcels: the 0.08 km2 (20 acre) “Skull Valley” property from
Skull Valley Capital, LLC in the southeastern area of the Project and a 0.41 km2 ( 100.33 acre) land parcel “CG100”
from CG 100 Land Partners LLC in the northeastern area of Project. In August 2024, Ivanhoe Electric acquired the surface title
to 3 0.04 km2 (10-acre) parcels located in various areas of the Project as part of the subject property in the DRH purchase.
A surface title map is shown in Figure 3-2.
Source: Ivanhoe Electric,
2026
Figure 3-2:
Ivanhoe Electric Surface Control Map
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In May 2023, Ivanhoe
Electric exercised the option to acquire the surface title to ~24.2 km2 (5,975 acres) encompassing the Santa Cruz Copper Project
from Wolff-Harvard. To close the purchase, Ivanhoe Electric paid $34.3 million, including $5.1 million of previously paid deposits.
Ivanhoe Electric also issued a secured promissory note to the seller in the principal amount of approximately $82.6 million over a period
of 4.5 years. The promissory note includes an annual interest rate of prime plus 1.0%. As of November 2025, all remaining payments
have been made to Wolff-Harvard; there is no balance remaining.
3.3.3 Water Rights
Ivanhoe Electric
acquired both Grandfathered Irrigation Rights (“GFR”) and Grandfathered Type 1 Non-irrigation Water Rights as part of
its 2023 private land purchase. These rights provide approximately 3,600 acre-ft per year of water for Project use. Water is further
discussed in Sections 7, 13, 15, and 17.
3.4 Royalties
Noted royalties
on future mineral development of the Project are summarized in Table 3-3 and Figure 3-3.
Table 3-3:
Royalties Applying to the Santa Cruz Copper Project
Royalty
Owner
Royalty
Description
Royalty
Owner A
10%
of 1/800th of the fair market value for refined copper, which amount is set by the value listed in the successor index to Metals
Week as of the date the SX/EW process is completed
Royalty
Owner B
60%
of 1/800th of the fair market value for refined copper, which amount is set by the value listed in the successor index to Metals
Week as of the date the SX/EW process is completed
Royalty
Owner C
2%
NSR
Royalty
Owner D
0.15%
NSR
Royalty
Owner E
½
of 1% NSR or ½ of 1% of 60% NSR if product is disposed of other than to a commercial smelter
Royalty
Owner F
10%
NSR (capped at $7 million)
Royalty
Owner G
5%
NSR
Royalty
Owner H
1%
NSR
Royalty
Owner I
$0.015/pound
of copper of Additional Mineable Reserve Copper over 2 billion pounds as determined by the “Definitive Feasibility Study”
or by production beyond the amount estimated in the “Definitive Feasibility Study”; the royalty owner has the option
to require payment in Ivanhoe Electric common stock at a 10% discount to the five-day volume weighted average price
SEPTEMBER 2026 3-14
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Source: Ivanhoe Electric, 2026
Figure 3-3:
Extent of Royalties
3.5 Encumbrances
The Santa Cruz
Copper Project is located on a large private land package which may reduce lengthy permitting timelines that result from federal land
management permitting processes.
Permitting and
permitting conditions are discussed in Section 17.2 of this report.
3.5.1 Environmental Assessments
A 2023 Phase I
Environmental Site Assessment, completed by Environmental Site Assessments, Inc., identified an aquifer exemption on a small portion
of the Property and agrochemical contamination of soils in former crop fields. While the aquifer exemption is representative of a controlled
recognized environmental condition, Ivanhoe Electric is completing site-specific
SEPTEMBER 2026 3-15
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assessments of soil contamination prior to earthwork
to characterize agrochemical conditions and confirm management of soil disturbance relative to Arizona Department of Environmental Quality
Soil Remediation Limits. Sampling and analysis have been completed in the box-cut and road improvements areas in the southeast portion
of Section 24. Soil pesticide detections indicate that contamination is not widespread at the site, as exceedances have been limited
and generally near the residential soil remediation threshold. A companion industrial hygiene evaluation of soil-disturbing work concluded
that worker inhalation exposures during soil-disturbing activities are not expected to exceed occupational exposure limits and recommended
standard dust and hygiene controls. The agrochemical contamination issue remains a localized soil management consideration, not a Project
environmental constraint. Further assessment or management of agrochemical contamination may be warranted prior to earthwork or for post-mining
redevelopment of specific affected areas, as needed.
3.6 Violations & Fines
Ivanhoe Electric
advised BBA that as of August 31, 2026, no material violations or fines were imposed during 2025 by any regulatory authority that
would affect the planned work for the Santa Cruz Copper Project as presented in this report.
3.7 Significant Factors &
Risks that May Affect Access, Title, or Work Programs
To the extent known
to BBA, there are no other known significant factors and risks that may affect access, title, or the right or ability to perform work
on the properties that comprise the Santa Cruz Copper Project that are not discussed in this report.
SEPTEMBER 2026 3-16
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4. Accessibility,
Climate, Local Resources, Infrastructure and Physiography
4.1 Accessibility
The Project is
approximately 92 km south of the greater Phoenix metropolitan area and is accessed via the West Gila Bend Highway (Highway 84) 11 km
west of the city of Casa Grande, which has a population of approximately 57,700. The greater Phoenix area is a major population center,
with approximately 4.8 million people, and features an airport, Phoenix Sky Harbor International Airport, and well-developed infrastructure
and services that support the mining industry.
4.1 Climate
The climate in
the Project area is typical of the Sonoran Desert, with temperatures ranging from -7 °C to 47 °C (19 °F to 117 °F)
and an annual precipitation average ranging from 76 to 500 millimeters (3 to 30 inches) per year. Precipitation occurs as frequent
low-intensity winter rains during December and January and violent summer “monsoon” thunderstorms during
July and August.
The Santa Cruz
Copper Project site contains no surface water resources. Storm runoff water from the site is drained toward the Santa Cruz River by minor
tributaries to the Santa Rosa and North Santa Cruz washes.
Any future mining
operation will be conducted year-round. Exploration activities can be performed year-round as there are no limiting weather or accessibility
factors.
4.2 Local Resources
Electrical power
is available along Midway Road with a high-voltage line running beside the Maricopa-Casa Grande Highway, along the northern edges of
the Santa Cruz Copper Project area. An east-west rail line parallels the highway and passes through Casa Grande. A natural gas line is
available along Clayton Road on the southern side of the Project area.
The cities of Casa
Grande, Maricopa, and Phoenix can supply sufficient electricity, skilled labor, and supplies for the Project.
Infrastructure
that will be required to support any future operations is discussed in Sections 13, 14, and 15 of this report. These report sections
also discuss potential water sources, electricity, personnel, and supplies for the life-of-mine plan in the prefeasibility study.
SEPTEMBER 2026 4-1
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4.3 Physiography
The Santa Cruz
Copper Project is in the Middle Gila Basin, entirely within the Sonoran Desert Ecoregion of the Basin and Range Physiographic Province.
The area is characterized by low, jagged, mountain ranges separated by broad, alluvial-filled basins. This portion of the Sonoran Desert
is sparsely vegetated with greater variability near washes and in areas that have long lain fallow. Catclaw acacia, mesquite, creosote
bush, bursage, and salt cedar are common near washes and abandoned areas.
The Project area
is flat and featureless. It has an elevation of 403 ±5 meters above sea level (“masl”) and slopes gently to the northwest.
Much of the Project area has been used for irrigated agriculture; the decaying remnants of an extensive system of wells and concrete-lined
ditches are still present, as are the alignments of furrows despite decades of lying fallow. Efforts at real estate development in the
1990s and 2000s have also left visible remnants with preliminary roadworks and some planting (palm trees) overlying the previous agricultural
remains. Soils proximal to washes tend to be more sand- and gravel-rich, while soils in old agricultural areas are more silt- and clay-rich.
SEPTEMBER 2026 4-2
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5. History
5.1 Historical Exploration
Three main deposits,
shown on Figure 5-1, form part of the Project area: Texaco (in the northeast), Santa Cruz North (southwest of Texaco), and Casa
Grande West / Santa Cruz South (the southernmost deposit).
Source: Ivanhoe Electric, 2024
Figure 5-1:
Historical Drill Collars, Deposit, & Exploration Area Names
Work completed
on the Project area is summarized in Table 5-1.
SEPTEMBER 2026 5-1
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S-K 1300 Preliminary Feasibility Study &
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Table 5-1: Project History
Year
Operator
Comment
1961–1962
ASARCO
Discovered
copper mineralization; completed geophysical surveys (induced polarization (“IP”), resistivity, seismic reflection, and
magnetics). Completed six drillholes and identified the Sacaton deposit.
1964
–1965
ASARCO
Expanded
exploration efforts across the Casa Grande Valley. Completed 16 drillholes but no additional mineralization was discovered.
1970
–1971
ASARCO
Reviewed
available data and concluded additional exploration was warranted.
1973
Newmont
Mining, Hanna Mining, Getty Oil Corp. (“Getty Oil”) and Quintana Corp.
Initiated
the Covered Area Project (“CAP”) managed by David Lowell.
1974
–1980
ASARCO
Santa Cruz Inc. and Freeport McMoRan Copper & Gold Inc. (“ASARCO-Freeport”)
Initiated
Santa Cruz Joint Venture (“SCJV”). Acquired additional ground around the Santa
Cruz North deposit area.
1974: Three drillholes, encountered porphyry-style mineralization
over what became the Santa Cruz North deposit.
1975: Four drillholes at Santa Cruz North, one at Texaco.
1976: One drillhole at Casa Grande, six at Texaco.
1977: Drilled six holes at Texaco and 12 at Casa Grande.
1979: Four drillholes at Santa Cruz North.
1980: Six drillholes at Santa Cruz North.
1974
–1984
ASARCO
Mined
the Sacaton deposit using open pit methods. Initiated underground mining, but this was discontinued due to low copper prices.
1974
–1992
Hanna
Mining, Getty Oil
CAP
project team focused their attention on the Santa Cruz system (referred to as the Casa Grande
Project).
Evidence for porphyry-style mineralization, in the form of a leached
cap, was found around what became the Casa Grande West deposit.
Hanna Mining took over as project operator in 1977, with Getty
Oil providing funding. Tightly spaced drilling continued until 1982, when a combination of factors, including low copper prices,
led to the project being mothballed.
SEPTEMBER 2026 5-2
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Year
Operator
Comment
1975:
Drilled two holes at Casa Grande, 2 holes at Santa Cruz North and 1 hole at Texaco.
1976: Drilled
two holes at Casa Grande North, 14 holes at Casa Grande.
1977: One
hole drilled at Texaco, 45 at Casa Grande.
1978: One
hole drilled at Santa Cruz, 31 holes at Casa Grande.
1979: Drilled
six holes at Casa Grande and Santa Cruz North.
1981: Two
drillholes at Santa Cruz North.
1982: Two
drillholes at Santa Cruz North.
1990
ASARCO-Freeport,
Texaco
Entered
into a joint venture on the Texaco land position.
1988
– 1998
US
Bureau of Reclamation, ASARCO-Freeport
Joint
venture in-situ copper mining leach project between ASARCO-Freeport, and the US Bureau of Reclamation. Field testing began in 1988,
and the test wells were constructed in 1989 in a five-point pattern with one injection well centered between four extraction wells.
Salt tracer tests were conducted in 1991; permits for the use of sulfuric acid were received in 1994; and the solvent extraction-electrowinning
(“SX/EW”) pilot plant was completed in 1995. Leach testing commenced in 1996, continued until December 1997 when
congressional funding through the US Bureau of Reclamation ceased. Pumping continued until the end of February 1998. Plant placed
on care and maintenance. The final research report was never made public; however, a newsletter from the project was circulated in
March 1998, which noted that 35,000 pounds of copper were extracted.
1996
ASARCO-Freeport
11
drillholes at Texaco.
2003
D.R.
Horton (“DRH”)
Purchased
from ASARCO-Freeport.
2007
DRH
and Legends
Legends
acquires surface rights from DRH.
2019
High
Power Exploration, Ltd. (“HPX”)
Ivanhoe
Electric predecessor, HPX, signs an agreement with Central Arizona Resources (“CAR”) for access to historical data throughout
the area as well as 238 unpatented mining lode claims.
2021
Ivanhoe
Electric
Ivanhoe
Electric is formed via a split from HPX. All Santa Cruz agreements are transferred to Ivanhoe Electric.
2021
Ivanhoe
Electric-CAR
Agreements
signed with DRH and Legends for subsurface and surface rights. Work programs including drilling, geochemical, geophysical, and geological
exploration commence.
2021
Ivanhoe
Electric
Issues
first Mineral Resource estimate.
2022
Ivanhoe
Electric
Ivanhoe
Electric consolidates 100% ownership of the project from CAR.
SEPTEMBER 2026 5-3
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S-K 1300 Preliminary Feasibility Study &
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Year
Operator
Comment
2022
Ivanhoe
Electric
Issues
updated Mineral Resource estimate.
2023
Legends
Legends
is acquired by Wolff-Harvard Ventures, LP (“Wolff-Harvard”).
2023
Ivanhoe
Electric
Issues
initial assessment.
2024
Ivanhoe
Electric
Exercises
options with DRH and Wolff-Harvard to complete acquisition of subsurface and surface ownership.
2025
Ivanhoe
Electric
Issues
Preliminary Feasibility Study with updated Mineral Resource estimate.
SEPTEMBER 2026 5-4
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6. Geological
Setting, Mineralization & Deposit
6.1 Regional
Geology
The Santa Cruz Copper Project is located within
an approximately 600 km long northwest-to-southeast-trending metallogenic belt known as the Southwestern Porphyry Belt, which extends
from northern Mexico into the southwestern United States. The belt includes many productive porphyry copper deposits in Arizona, such
as Mineral Park, Bagdad, Resolution, Miami-Globe, San Manuel-Kalamazoo, Ray, Morenci, and the neighboring Sacaton Mine (Figure 6-1).
These porphyry copper deposits are located within
a broader physiographic region known as the Basin and Range Province which occupies the majority of the southwestern United States and
northwestern Mexico. This region is predominantly characterized by alternating linear sub-parallel mountain chains separated by broad,
flat valleys formed by regional tectonic extension during the mid- to late-Cenozoic period.
The basement geological units of Arizona consist
of formations developed during the Paleoproterozoic collisional orogeny that were subsequently stitched together by anorogenic granitic
plutonic suites within the Mesoproterozoic. Basement Proterozoic lithologies at the Santa Cruz site are represented by three primary
units: Pinal schist, Oracle granite, and diabase intrusions.
The Pinal schist is a metasedimentary to metavolcanic
schist that represents the oldest and most expansive basement rock within southern Arizona. Proterozoic anorogenic granitic complexes
were emplaced into the Pinal schist between 1450 to 1350 Ma. Continental rifting during the Mesoproterozoic introduced both Paleo- and
early-Mesoproterozoic granitic complexes to the surface, where they were subsequently buried beneath younger Neoproterozoic rocks of
the Apache Group, which represent a very shallow intracontinental basin. These rocks were intruded and dilated by successive diabase
intrusions, around 1100 Ma, related to the separation of the Rodinia supercontinent. Throughout the Paleozoic era, Arizona was situated
within a craton characterized by significant disconformities in the stratigraphy, interpreted to represent relative transgressive and
regressive changes in sea level. Continental shortening throughout the Cretaceous is contemporaneous with diachronous magmatism within
the same location (Tosdal and Wooden, 2015). Cessation of magmatic activity during the Paleocene period marked the onset of erosion of
the uplifted arc, which is presently located southwest of the Colorado Plateau.
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6.2 Metallogenic
Setting
The porphyry copper deposits of the Southwestern
Porphyry Belt are the genetic product of igneous activity during the Laramide Orogeny (80 to 50 Ma). Laramide porphyry systems near the
Santa Cruz Copper Project define a prominent southwest-to-northeast linear trend orthogonal to the trend of the Laramide magmatic arc
environment.
During the tectonic extension of the mid-Cenozoic
period, the Laramide volcanic arc and associated porphyry copper systems were variably dismembered, tilted, and buried beneath a complex
mixture of basin sediments such as the Casa Grande Valley. However, before burial and concealment by sedimentary cover, many of Arizona's
Laramide porphyry copper systems underwent supergene enrichment processes, which significantly enhanced their economic value as mineral
deposits.
SEPTEMBER 2026 6-2
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Source: Ivanhoe Electric, 2023
Figure 6-1: Regional Geology of the Southwestern
Porphyry Belt & the Copper Porphyry Deposits Adjacent to the Project
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Supergene enrichment in the Project area demonstrates
evidence of multiple enrichment cycles, indicated by the presence of several obliquely oriented chalcocite and oxide-copper blankets
formed from successive syn-tilting enrichment events. These obliquely oriented blankets are interpreted to have formed due to syn-rotation
enrichment and subsequent overprinting of newer supergene blankets over the previous ones. Cycled supergene enrichment processes such
as these are observed throughout the Tertiary period and subsequently ceased with the deposition of basin sediments and concealment of
the bedrock below which altered the hydrology. The earliest supergene enrichment at the Santa Cruz deposit is believed to have occurred
during the Eocene epoch (Tosdal and Wooden, 2015). Supergene alunite from the nearby Sacaton porphyry copper deposit, approximately 8.5
km from the Santa Cruz deposit, was potassium-argon (“K-Ar”) dated to 41 Ma (Cook, 1994).
6.3 Santa
Cruz Copper Project Geology
The Santa Cruz Copper Project consists of four
separate areas of interest along a southwest-northeast trend which continues in line with the neighboring historical Sacaton mine. These
areas, from southwest to northeast, are referred to as (1) the Southwest exploration area, (2) the Santa Cruz deposit, (3) the
East Ridge deposit, and (4) the Texaco deposit. Each of these deposits or areas represents portions of one or more porphyry copper
systems that have been dissected and separated as a result of extensional Basin and Range normal faulting. Likewise, each area has experienced
variable periods of erosion, supergene enrichment, fault displacement, and tilting into their present positions due to Basin and Range
extensional faulting (Figure 6-2).
Source: Ivanhoe Electric, 2024
Figure 6-2: Generalized Cross-Section of
the Santa Cruz – Sacaton System
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Ivanhoe Electric Inc.
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6.3.1 Santa Cruz Bedrock Lithologies
Bedrock geology at the Santa Cruz Copper Project
is largely dominated by Oracle granite (1450 to 1350 Ma) with lesser proportions of Proterozoic diabase intrusions (1100 Ma), variably
dipping 15° to the south-southeast, and Laramide porphyry intrusions (75 Ma), dipping at ~30° to 40° to the north-northwest.
6.3.1.1 Oracle
Granite
The Oracle granite is predominantly characterized
as a coarse-grained biotite granite with large pink- or salmon-colored orthoclase feldspars approximately 32 to 38 mm across, which gives
the rock a pink- to pink-gray mottled appearance on fresh surfaces.
The groundmass comprises uniformly sized 5 mm
grains of clear white feldspar and glassy quartz with greenish-black masses of biotite and magnetite. Composition suggests it should
be classed as quartz monzonite rather than granite. Surface exposures are typically of light-buff color. Alteration minerals include
sericite, secondary biotite, and secondary orthoclase.
6.3.1.2 Diabase
The Proterozoic diabase is a coarse-grained rock
characterized by a composition predominantly of plagioclase feldspar, pyroxene, and olivine. Plagioclase feldspar and pyroxene, ranging
from labradorite to bytownite, often exhibit crystal twinning and characteristic lathy ophitic to subophitic textures. Accessory minerals
include minor amounts of iron-titanium oxides, magnetite and ilmentite, which contribute to the magnetic properties of the rock, apatite,
and occasionally biotite or hornblende.
The diabase intrusions are interpreted to have
been emplaced as horizontal to sub-horizontal sills, rather than vertical to subvertical dykes, though infrequent subvertical dykes are
recognized in nearby locales. Due to its iron and magnesium-rich composition, occurrences of diabase are often congruent with increased
hypogene and supergene copper mineralization, relative to other lesser reactive rocks.
Petrographic thin section analysis indicates
that the diabase is predominantly associated with secondary biotite and epidote as hydrothermal alteration products.
6.3.1.3 Laramide
Porphyry
The Laramide porphyry intrusions are variable
in composition but are collectively regarded as the causative intrusive for primary hypogene mineralization within the Santa Cruz Copper
Project. The porphyry intrusions are typically characterized as a quartz monzonite composition (35% quartz, 6%
SEPTEMBER 2026 6-5
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biotite, 29% feldspar,
30% K-feldspar, and plagioclase) with 40% phenocrysts averaging 1.5 mm and 60% aplitic to aphanitic groundmass. Quartz phenocrysts are
less than 10 mm, sub-spherical, and comprise approximately 25% of the phenocrysts. Biotite makes up 15% of the phenocrysts and are less
than 5 mm. Subhedral plagioclase phenocrysts, 60%, are generally less than 7 mm.
There are two distinct groups of Laramide-aged
porphyry intrusions. One contains quartz phenocrysts of less than 5% by volume and is generally associated with increased biotite phenocrysts,
as well as increased biotite content in the groundmass, typically resulting in a darker color for this unit. The other variant contains
a greater abundance of quartz phenocrysts (>5%) and is often described as being more siliceous and lighter in color. These two distinct
groups of Laramide-aged porphyry are formally referred to as the “granodiorite porphyry” and “latite porphyry,”
respectively.
A third Laramide porphyry consists of a biotite-quartz
feldspar monzonite porphyry comprising 15% biotite, 25% K-feldspar, 40% plagioclase and 20% quartz, with 15% phenocrysts consisting of
20% biotite, 70% plagioclase and 10% quartz in an aphanitic 15% biotite, 30% K-feldspar, 35% plagioclase, 20% and quartz groundmass with
an 0.06 mm average crystal size.
Alteration minerals within mineralized Laramide
intrusions are variable depending on the porphyry endmember but are dominated by hydrothermal biotite, sericite, and lesser orthoclase
feldspar.
6.3.1.4 Pinal
Schist
The Pinal schist has not been intersected within
the Project area but is interpreted to occur at depth based on the regional geology. The unit typically consists of medium- to high-grade
metamorphic rocks derived from sedimentary to volcanic protoliths. As part of the broader suite of Proterozoic metamorphic rocks in southern
Arizona, the Pinal schist is exposed in mountain ranges such as the Santa Catalina and Rincon Mountains. Structurally, the unit is often
intensely deformed, exhibiting multiple generations of folding and faulting, and is intruded by younger granitic bodies such as the Oracle
granite.
6.3.2 Basin Fill Lithologies
Directly overlying the erosional surface of the
bedrock units is a series of sedimentary and volcaniclastic rocks. These rocks consist of predominantly syn-extensional erosional sediments
and cobble conglomerates, airfall volcanic tuffs, and andesitic basalts associated with flows or volcaniclastic deposits. The sediments
and cobble conglomerate units include alluvium, Gila conglomerate, Whitetail conglomerate, and basal conglomerate. The Gila and Whitetail
conglomerates are separated stratigraphically and conformably by a narrow marker bed of rhyolitic Apache Leap tuff (20 Ma), usually of
no greater thickness than 1 m. Basaltic flows and
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volcaniclastic deposits are represented by the mafic conglomerate which exists variably
above, below, or intercalated within the basal conglomerate and/or lower Whitetail conglomerate.
The
syn-extensional sedimentary units and morphology are well-understood across the Project area through numerous core-from-surface drilling
intersections. A simplified stratigraphic column is shown in Figure 6-3.
Source: Ivanhoe Electric, 2025
Figure 6-3: Simplified Stratigraphic Section of
Santa Cruz Copper Project
6.3.2.1 Alluvium
The Project area is characterized by an extensive
layer of Quaternary alluvium, ranging from 80 to 100 m in thickness. This geological formation primarily comprises alternating layers
of fine-grained sand, silt, and clay, interspersed with occasional fragments of caliche and iron oxides. Minimal variation is observed
within the vertical profile, which indicates consistent depositional conditions across the Project area. The presence of caliche fragments
and subtle iron oxide staining within the alluvium points towards periodic episodes of soil formation and diagenetic alterations under
semi-arid climatic conditions typical of Arizona.
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6.3.2.2 Gila
Conglomerate
The Tertiary Gila conglomerate consists of alternating
beds of rounded to sub-rounded to sub-angular cobble to lesser boulder conglomerates, composed of mixed lithologies specific to the regional
area, and beds of moderately sorted sand and gravel pebble conglomerates. These beds collectively average 150 to 300 m in thickness across
the Project area, reach their thickest intersections over paleo-valleys controlled by buried extensional structural block configurations,
and exhibit a conformable relationship with the underlying Apache Leap tuff.
The regional aquifer starts about 150 m below
the surface in the Gila conglomerate, extending through different layers until it reaches bedrock. This water table is consistent across
the Project area.
6.3.2.3 Apache
Leap Tuff
The Tertiary Apache Leap tuff, characterized
as a rhyolitic airfall tuff, primarily consists of a devitrified quartzofeldspathic cryptocrystalline groundmass with infrequent compressed
pumice fragments observable within thicker and less weathered intersections. This unit, interpreted to be horizontal to sub-horizontal
across the Casa Grande Valley, can occur as multiple layers within a single section. The tuff displays a conformable relationship with
the underlying Whitetail conglomerate.
6.3.2.4 Whitetail
Conglomerate
The Tertiary Whitetail conglomerate, temporally
and characteristically regarded as the stratigraphically lower and earlier equivalent of the Gila conglomerate, consists of alternating
beds of mostly angular to sub-angular cobble to boulder conglomerates, composed of mixed lithologies specific to the regional area, with
periodically interbedded layers of moderately to poorly sorted sand and gravel pebble conglomerates. Interpreted to represent a period
of higher intensity erosion, the unit collectively averages 100 to 400 m in thickness across the Project area. The thickest intersections
are found over paleo-valleys controlled by extensional structural block configurations. It displays a conformable relationship with the
underlying basal conglomerate or mafic conglomerate and an unconformable relationship with the underlying Oracle granite or Laramide
porphyry.
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6.3.2.5 Mafic
Conglomerate
The Tertiary mafic conglomerate is characterized
as a monomictic volcaniclastic unit composed of tightly compacted angular to sub-angular pebble- to cobble-sized clasts of basaltic material.
The unit is markedly distinguished from other sedimentary units by the sharp difference in clast composition and clast abundance, with
little matrix support. Within the lower sedimentary sequence of the Santa Cruz deposit, the unit typically forms thin and relatively
flat layers ranging from 1 to 3 m thick, which can be found above, below, or intercalated with the basal conglomerate and/or Whitetail
conglomerate. These thin layers generally dip to the southeast at ~5° to 15°. The unit shows a conformable relationship with
the underlying basal conglomerate or Whitetail conglomerate and an unconformable relationship with the underlying Oracle granite or Laramide
porphyry.
6.3.2.6 Basal
Conglomerate
The Tertiary basal conglomerate is characterized
as a tightly compacted, monomictic conglomerate consisting of angular cobble- to boulder-sized clasts of Oracle granite. The unit is
also markedly distinguished from other units by a sharp and significant introduction or increase in total hematitic iron oxidation throughout
the rock mass. The unit averages 25 to 100 m thickness across the Project area, reaching the thickest intersections at the base of paleo-valleys
due to surface erosion, slope degradation, or mass wasting. The unit displays a conformable relationship with the underlying mafic conglomerate
or an unconformable relationship with the underlying Oracle granite.
6.3.3 Alteration
Hydrothermal alteration at the Santa Cruz Copper
Project is variable across the Project area and largely dependent on the proximity and position relative to causative Laramide porphyry
intrusions. Hypogene hydrothermal alteration assemblages consist predominantly of quartz, secondary biotite, secondary orthoclase, magnetite,
sericite, and phengite. Low-temperature broad overprints are present consisting of illite and smectite, lesser kaolinite (which occurs
primarily in the Oracle granite), and late chlorite and calcite. Rare subordinate phases such as epidote, albite, and tremolite may also
occur locally.
Supergene alteration is the latest overprint,
which is the product of surface weathering, oxidation, and heated meteoric groundwater. The breakdown of sulfides results in sulfuric
acid that can lead to the formation of limonite, alunite, jarosite, and kaolinite-bearing assemblages. Supergene alteration, as a result
of heated meteoric groundwater, occurs as smectite clay alteration of mafic- to intermediate-composition igneous rocks, smectite alteration
along Miocene Basin and Range faults, and broad pervasive illite-smectite alteration overprints.
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6.3.4 Structural Geology
The Project area lies within the Basin and Range
geological province, within a domain that has experienced a high degree of extensional tectonism. Faulting is intimately associated with
mineralization and the current deposit configuration in several ways. The extensional fault systems that are recognized in the Project
area have a transport direction towards the southwest.
Major, deep-seated, northeast-to-southwest-striking
basement structures controlled Laramide-age intrusive emplacement and metal endowment during transpressional arc magmatism. These structures
are interpreted as detachment faults that have been reactivated multiple times, potentially serving as transfer faults for dextral offset
during Basin and Range extension. Post-mineral faulting in the Project area shows evidence of two generations of normal faulting in a
northwest-southeast direction. This caused significant rotation and offset of fault blocks, with the earliest generation exhibiting a
sub-horizontal configuration and the latest showing a sub-vertical configuration. The detachment fault has not been intersected within
the Project area but is believed to be at depth based on regional geology and fault block orientation.
Post-emplacement faulting has controlled and
affected groundwater dynamics and the mobilization and deposition of copper through supergene enrichment processes. These faults also
played a role in shaping the paleotopographical landscape and had a controlling influence on the development and distribution of exotic
copper mineralization within paleodrainages. Internal faults in the Santa Cruz deposit have been modeled using active seismic geophysics,
geotechnical analysis, and geological diamond drillhole logs.
6.3.5 Property Mineralization
Mineralization
at the Santa Cruz Copper Project is summarized in Table 6-1. Figure 6-4 to Figure 6-6 show cross-sections of the
Santa Cruz, East Ridge, and Texaco deposits, respectively.
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Table 6-1: Deposit & Mineralization
Summary of the Santa Cruz Copper Project
Deposit
Dimensions
Lithology
Structure
Alteration
Mineralization
Santa
Cruz Deposit
The
Santa Cruz deposit is approximately 2,000 m long and 700 m wide.
Mineralization occurs from about 400 m below the surface at 0
m above sea level to a depth of approximately -600 m below sea level.
Precambrian
Oracle granite, Laramide porphyry, Precambrian diabase
Basin
and Range
extensional faulting
Pervasive
sericite overprint associated with moderate density stockwork quartz veinlets. Higher temperature
alteration is displayed as secondary biotite, chlorite, and minor secondary orthoclase.
Low-temperature supergene weathering overprints hydrothermal alteration
as illite, smectite, and lesser kaolinite.
Supergene:
The uppermost exotic copper mineralization is primarily hosted in overlying clastic and volcanic
rocks. The supergene stratigraphy comprises zoned mineralization, with chrysocolla at the
top, followed by atacamite, and then chalcocite. There is evidence of post-rotational supergene
enrichment horizons, indicating two or more supergene sulfide events.
Hypogene:
Primary sulfide mineralization includes chalcopyrite, pyrite, and minor molybdenite, which are hosted in quartz-sulfide stringers,
veinlets, veins, and breccias. Additionally, finely to coarsely disseminated copper sulfides are found within vein envelopes associated
with hydrothermal porphyry mineralization.
East
Ridge Deposit
The
East Ridge deposit consists of discrete subparallel zones. East Ridge North occurs as four dipping, subparallel zones from 4 to 8
m thick, 500 to 700 m long along strike, and 300 to 600 m extent along dip with an average dip of 35° to 45°. East Ridge
South consists of two shallowly dipping, subparallel zones from 5 to 15 m thick, approximately 300 m long along strike and 600 m
in extent down dip with an average dip of 15°.
Precambrian
Oracle granite, Laramide porphyry, Precambrian diabase
Basin
and Range
extensional faulting
Pervasive
sericite overprint associated with low to moderate density stockwork quartz veinlets. Higher
temperature alteration is displayed as secondary biotite, magnetite, and minor secondary
orthoclase.
Low-temperature supergene weathering overprints hydrothermal alteration
as illite, smectite, and lesser kaolinite.
Supergene:
Correlative and partially displaced from the Santa Cruz deposit. Supergene sulfide mineralization
consists of thin, stacked intervals displaced from those in the Santa Cruz deposit by Basin
and Range faulting. Chrysocolla and atacamite is broadly distributed near the fault-controlled
paleo valley between the Santa Cruz and East Ridge deposits.
Hypogene:
Primary sulfide mineralization is correlative and displaced from the Santa Cruz deposit and includes broad zones of low
to moderate density quartz-sulfide veins consisting of chalcopyrite, pyrite, and molybdenite. Small zones of mineralized hydrothermal
breccia are in the north portion of East Ridge.
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Deposit
Dimensions
Lithology
Structure
Alteration
Mineralization
Texaco
Deposit
The
Texaco deposit is approximately 1,500 m long and 650 m wide. The highest intercept of mineralization occurs at about 450 m below
surface at -50 m below sea level, while the deepest intercept is at approximately -720 m below sea level. The deposit is tabular
and dipping, and these dimensions represent the highest and lowest intersections of mineralization with an average thickness of 150 m.
Precambrian
Oracle granite, Laramide porphyry, Precambrian
diabase
Basin
and Range
extensional faulting
Pervasive
sericite in groundmass and stockwork quartz-sericite-pyrite veins. Higher temperature alteration
is associated with quartz-molybdenite veins, secondary, biotite and magnetite within thin
veinlets.
Low-temperature supergene weathering overprints hydrothermal alteration
as illite, smectite, and lesser kaolinite.
Supergene:
Supergene mineralization at Texaco contains significantly less copper oxide and copper chloride
mineralization compared to the Santa Cruz deposit, although a well-developed leached cap
exists. Veined and disseminated chalcocite exists in sub-horizontal blankets that have been
tilted due to faulting and extension.
Hypogene:
Primary sulfide mineral assemblages consist of chalcopyrite, pyrite, molybdenite hosted in quartz-sulfide veins, veinlets, vein breccia
and breccias, as well as fine to coarsely disseminated sulfides within vein envelopes. Chalcopyrite and pyrite occur as sulfide cement
within breccias. Hypogene mineralization at Texaco forms a distinct zoning pattern of chalcopyrite-molybdenite to chalcopyrite to
pyrite from core to shell.
Southwest
Exploration Area
The
dimensions of the Southwest exploration area are yet to be determined as the deposit boundaries remain undefined.
Precambrian
Oracle granite, Laramide porphyry
Basin
and Range
extensional faulting
Higher
temperature alteration assemblage consisting of sericite, secondary biotite,
magnetite, and secondary orthoclase.
Significant supergene weathering is not observed within the Southwest
exploration area.
Supergene:
Supergene mineralization at the Southwest exploration area consists of weakly
disseminated and partially enriched sulfides with chalcocite and/or bornite rims.
Hypogene:
Hypogene mineralization within the Southwest exploration area is characterized by limited drilling that encountered bedrock
at approximately 1,000 m depth. Sulfide mineralization includes pyrite and chalcopyrite that occur as chemical cement within a magmatic-hydrothermal
breccia and sparse quartz-sulfide veining.
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Source: Ivanhoe Electric, 2025
Figure 6-4: Geological Cross-Section of
Santa Cruz Deposit looking Northwest
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Source: Ivanhoe Electric, 2025
Figure 6-5: Geological Cross-Section of
the East Ridge Deposit, looking Northwest
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Source: Ivanhoe Electric, 2025
Figure 6-6: Geological Cross-Section of
the Texaco Deposit, looking North
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6.4 Deposit
Types
Porphyry
copper deposits (Figure 6-7) form in areas of shallow magmatism within subduction-related tectonic environments (Sillitoe,
2010).
Source: Sillitoe, 2010
Figure 6-7: Simplified Alteration and
Mineralization Zonation Model of a Porphyry Copper Deposit
As
shown in Figure 6-7, the deposits in the Project area have the typical characteristics of a porphyry copper deposit defined
by Berger et al. (2008):
■ Copper-bearing
sulfides are localized in a network of fracture-controlled stockwork veinlets and as disseminated
grains in the adjacent altered rock matrix.
■ Alteration
and mineralization at 1 to 4 km depth are genetically related to magma reservoirs emplaced
into the shallow crust (6 to over 8 km), predominantly intermediate to silicic in composition,
in magmatic arcs above subduction zones.
■ Intrusive
rock complexes associated with porphyry copper mineralization and alteration are predominantly
in the form of upright-vertical cylindrical stocks and/or complexes of dykes.
■ Zones
of phyllic-argillic and marginal propylitic alteration overlap or surround a potassic alteration
assemblage.
■ Copper
may also be introduced during overprinting phyllic-argillic alteration events.
Primary hypogene mineralization occurs as disseminations
and in stockworks of veins, in hydrothermally altered, shallow intrusive complexes and their adjacent country rocks (Berger et al., 2008).
Sulfides of the hypogene zone are dominantly chalcopyrite and pyrite. The hydrothermal alteration zones and vein paragenesis of porphyry
copper deposits are well-known and provide an excellent tool for advancing exploration. Schematic cross-sections of typical alteration
zones and associated minerals are presented in Figure 6-8.
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Source: Mote
et al. (2018); modified after Münchmeyer (1998) and Sillitoe (2010)
Figure 6-8: Schematic Representation of
an Exotic Copper Deposit
Supergene
enrichment processes are a common feature of many porphyry copper systems located in certain physiogeographical regions (semi-arid).
It can result in upgrading of low-grade porphyry copper sulfide mineralization into economically significant accumulations of supergene
copper species (copper oxides, halides, carbonates, etc.). This is particularly important in the southwestern United States. Supergene
enrichment occurs when a porphyry system is uplifted to shallow depths and is exposed to surface oxidation processes. This leads to the
copper being leached from the hypogene mineralization during weathering of primarily pyrite, which generates significant sulfuric acid
in oxidizing conditions, and redeposits the copper below the water table as supergene copper sulfides such as chalcocite and covellite.
Figure 6-9 illustrates a schematic section through a secondary enriched porphyry copper deposit, identifying the main mineral
zones formed as an overprint from the weathering of the hypogene system.
The
Project area has a history of oxidation and leaching that resulted in the formation of enriched chalcocite horizons, and later stages
of oxidation and leaching, which modified the supergene copper mineralization by oxidizing portions of it in place and mobilizing some
of the chalcocite to a greater depth (Figure 6-9). This process is associated with descending water tables and or erosion
and uplift of the system, or changes in climate, or hydrogeological systematics.
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Source: modified from Asmus, B. (2013)
Figure 6-9: Typical Copper Porphyry Cross-Section and
Associated Minerals
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7. Exploration
and Drilling
7.1 Geophysics
and Geochemistry
Various exploration programs have been conducted
in the Project area by different operators starting in the 1960s. These are summarized in Section 5 and, where relevant to the Santa
Cruz Copper Project, are also summarized in the following sub-sections.
7.1.1 Geophysical Exploration
7.1.1.1 Historical
Surveys
Ivanhoe Electric compiled historical geophysical
survey information on the Project area completed by previous operators (refer to Table 5-1).
Historical induced polarization (“IP”)
survey reports indicate that extraneous responses in IP surveys at Sacaton and Santa Cruz resulted from groundwater present in the valley
sediments and conglomerates. Controlled source audio-frequency magnetotelluric surveys were considered promising for tracking leachate
detectability with salt doping/tracing.
7.1.1.2 Ivanhoe
Electric
Ivanhoe Electric has completed geophysical surveys
including ground gravity, seismic refraction tomography, proprietary Typhoon™ three-dimensional perpendicular pole dipole induced
polarization (“3D PPD IP”), ground magnetics, multichannel analysis surface wave, and controlled source audio-frequency magnetotellurics.
The geophysical datasets from these surveys were used to assist with geological interpretation and improved drill targeting. The surveys
and results are summarized in Table 7-1. Maps detailing the location of the surveys, survey design, and sample results are shown
in Figure 7-1 through Figure 7-3.
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Table 7-1: Geophysical Assessments Conducted
on the Santa Cruz and Texaco Deposits from 2022 to 2026
Year
Technique
Purpose
Results
2022
Ground
gravity
To
understand the depth to basement, the characteristics of the post-mineral cover, and the pre-mineral basement. When integrated with
seismic data, which provides superior vertical resolution, the combination yields high-resolution insights into key geological relationships
in the subsurface.
Gravity
data, combined with seismic datasets, was used to estimate depths to basement outside of drilled domains. This data helped improve
the modeling of geological contacts, structures, and post-mineral cover geometries, aiding in drillhole planning and mine design
optimization.
2D
surface seismic refraction tomography
To
determine bedrock depth and subsurface topography within a discrete 1.5 by 1.2 km region northwest of the Santa Cruz deposit.
The
seismic tomographic survey helped model the depth to basement within the survey area. It revealed that the cover sequence generally
consists of low-velocity materials, which enabled the delineation of the basement contact in nearby zones. Certain gravels near the
basement interface exhibited high seismic velocities due to varying degrees of induration and lithification. Some domains of crystalline
basement showed anomalously low velocities, attributed to extensive hydrothermal alteration and supergene leaching.
Typhoon™
(3D PPD IP)
The
aim was to address subsurface chargeability anomalies from disseminated sulfides and to analyze resistivity and conductivity data
from the 3D PPD survey. This would help define geological features like lithological, alteration, mineralization domains, and water
table configuration.
Results
revealed strong chargeability anomalies that correspond with areas of known porphyry-style mineralization, previously confirmed through
drilling such as disseminated sulfide mineralization, e.g., pyrite and chalcopyrite.
Ground
magnetics
To
resolve structures and geological relationships in the subsurface.
The
results revealed subsurface features such as faults and magnetic variations. Interpretation in Santa Cruz and Texaco deposits faced
interference from steel drill casings and possibly abandoned rods. Despite this, magnetic anomalies at historical drill sites helped
verify the accuracy of recorded collar locations.
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Year
Technique
Purpose
Results
2023
Quantum-audio
magnetotellurics
To
obtain broad magnetic and resistivity datasets across the Property for regional context and interpretation of subsurface structural
and alteration features.
The
survey sensor, suspended beneath the helicopter, experienced vibrational and rotational noise, leading to low-quality data with a
poor signal-to-noise ratio. Consequently, the dataset was unusable for creating higher-order derivative products like resistivity
models or magnetic inversions and was excluded from operational workflows.
2024
3D
and 2D seismic and multichannel analysis surface wave
High-resolution
seismic imaging was conducted to de-risk capital development and provide interpretive data on stratigraphic contacts and structures.
Additionally, two multichannel surface wave survey lines were completed to inform near-surface shear wave velocity for planned infrastructure.
The
integration of 2D, 3D seismic, and multichannel analysis surface wave survey results reduced geological uncertainty by clarifying
lithological boundaries and fault geometries, improving capital planning.
Typhoon™
data reprocessing
The
2022 Santa Cruz Copper Project Typhoon™ 3D PPD IP survey data was reprocessed using a new suite of QA/QC tools and newly introduced
machine learning techniques to identify and filter erroneous readings within the raw data.
The
refined data served as updated input for creating a new 3D chargeability and resistivity inversions. The resulting 3D inversions
and report featured smoother geometries with less distortion from cultural noise.
Ambient
noise tomography
To
map the thickness of the conglomerates, detect any lateral velocity variation within the bedrock, and detect structural features
for additional geological context.
The
modeled results showed that the passive seismic data delineated stratigraphic and structural features relevant to porphyry copper
exploration, increasing confidence in geologic interpretations.
2026
Multichannel
Analysis of Surface Waves
To
provide more granular data for the uppermost alluvium for detailed engineering of Santa Cruz and East Ridge vent shafts.
Pending.
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Note: Shows complete Bouguer gravity anomaly at reduction
density of 2.3 g/cm3.
Source: Ivanhoe Electric, 2025.
Figure 7-1: 2022 Gravity Survey Station
Plan (Left) & Gravity Survey Results (Right)
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Note: Ground magnetics survey lines are shown on the left
and ground magnetics results are shown on the right.
Source: Ivanhoe Electric, 2025.
Figure 7-2: Ground Magnetics Survey Results
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Source: Ivanhoe Electric, 2025.
Figure 7-3: Quantum Audio Magnetotellurics
Survey Lines
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7.1.2 Geochemical Exploration
The deposits at the Santa Cruz Copper Project
are deep and most sampling has been the result of drilling. Drilling results are discussed in Section 7.2.
Ivanhoe Electric conducted a partial ionic leach
sampling survey through ALS Laboratories in Tucson, Arizona. The geochemical datasets have been used to assist with geological interpretation
and improved drill targeting.
A comprehensive surface ionic leach sampling
program was completed across the entire Project area, in two phases, to assess the utility of this survey method in detecting copper
mineralization at depth. A total of 815 surface samples were collected by Ivanhoe Electric along approximately 30 sampling lines across
both sampling phases. The program aimed to validate the survey methodology and explore its potential to enhance targeting and geological
interpretation efforts.
Survey sample sites were collected from approximately
30 northeast-southwest oriented sampling lines, with each line spaced approximately 223 m apart in the northwest-southeast direction,
with samples collected at roughly 130 to 150 m spacing in the northeast-southwest direction. Line lengths were variable to conform to
the Property boundary. Samples were not collected from a small residential area within the Property. Each sample was analyzed for 61
elements using a static sodium cyanide leach method in conjunction with various common chelating leaching agents. The sampling results
for copper and molybdenum are shown in Figure 7-4 and Figure 7-5, respectively.
Source: Ivanhoe Electric, 2024.
Figure 7-4: Geochemical Exploration Map
– Copper
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Source: Ivanhoe Electric, 2024.
Figure 7-5: Geochemical Exploration Map
– Molybdenum
7.1.3 Qualified Person’s Interpretation of the Exploration
Information
The exploration primarily conducted by Ivanhoe
Electric provided vectors to geophysical and geochemical anomalies that were drill tested. This work further developed the understanding
of copper mineralization within the Project area.
7.2 Drilling
Drilling within the Santa Cruz Copper Project
property totals 484 drillholes for 354,655 m of drilling. Of this total, 329 drillholes for 279,164 m were used in support of the Mineral
Resource. The 155 drillholes excluded from the estimation do not intersect the deposit or did not have relevant information for estimation,
such as shallow sonic holes with no assay samples taken.
7.2.1 Historical Drilling
The
historical drilling within the Project area can be separated into several series: CG (Hanna-Getty), SC (ASARCO), and T and HC drilling
(related to the in-situ program described in Section 5). A summary of drilling production by each series is provided in Table 7-2;
collar locations are shown in Figure 7-6.
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Table 7-2: Summary of Available Data by
Region
Description
Dataset
Region
Total
CG
SC
HC
T
Total
Number of Holes
122
80
5
5
212
Total
Drilled (m)
102,563
62,754
3,622
2,295
165,317
Source: Ivanhoe Electric, 2026
Figure 7-6: Plan Map of Historical Drillhole
Collars
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7.2.1.1 Santa
Cruz & East Ridge Deposits
Historical drilling at the Santa Cruz deposit
consisted of 108,301 m of core from 126, 47.26 mm diameter (“NQ”) drillholes completed between 1965 to 1996. Historically,
these two deposits were undifferentiated, thus drilling totals are cumulative for both deposits. The historical drill core is currently
unavailable for review except for sparse, skeletonized core boxes from a single historical drillhole CG-037.
A program was conducted to check the collar locations
of a selection from the drillhole database using a professionally licensed surveying company, D2 Land Surveying. Based on the transformation
for these spot-checked drillholes, collar locations were adjusted. All historical drilling was conducted vertically. For the Santa Cruz
deposit, the drilling was completed along 100 m spaced section lines with drillholes spaced 90 to 100 m apart on each section line.
7.2.1.2 Texaco
Deposit
Historical Texaco deposit drilling consists of
23,848 m of core from 27 NQ drillholes completed between 1975 and 1997. The drillholes in this deposit area are in the “SC”
drillhole series. The historical core is predominantly unavailable for review with the exception of sparse, skeletonized boxes from historical
drillholes SC-066 and SC-069A. A program was conducted to check the collar locations of a selection of historical drillholes from the
database using a professionally licensed surveying company, D2 Land Surveying. Based on the transformation for these spot-checked drillholes,
collar locations were adjusted. All historical drilling was conducted vertically. For the Texaco deposit, the drilling was completed
along 100 to 200 m spaced section lines with drillholes spaced 200 m apart on each section line. The average drill section and spacing
in the Texaco deposit is approximately 200 m and varies between approximately 90 and 250 m.
7.2.2 Ivanhoe Electric Drilling Programs
7.2.2.1 Overview
Ivanhoe
Electric has completed 306 holes totaling more than 182 km of combined drilling since initiating activity on the Santa Cruz Copper Project
in 2021 (Table 7-3).
7.2.2.1.1 Historical Data Twin Hole Validation Drilling
In
2021, Ivanhoe Electric initially completed five core drillholes totaling 4,739 m within the Santa Cruz deposit to twin historical
drillholes for data validation (Figure 7-7). Drilling was a mixture of rotary pre-collar through the barren tertiary sediments
and core drilling through the target areas and shoulders. All samples from within the interpreted mineralized zone were assayed for total
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copper (%), acid soluble copper (%), cyanide soluble copper (%), and molybdenum (%). The collar locations, downhole surveys, geological
logging, sampling, and assaying between the two sets of drillholes were used to determine if historical data were valid and would not
bias the geological model or Mineral Resource estimate.
All five historical hole assays aligned with
the 2021 Ivanhoe Electric core drilling assays. The 2021 core drilling assays were of higher resolution due to smaller sample sizes and
validated the ASARCO assays.
Further validation drilling was completed in
2023 and 2024, which replicated the historical data to an acceptable degree and expanded the data set.
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Source: Ivanhoe Electric, 2026
Figure 7-7: Plan Map of the Twinned Drillholes &
Historical Drillhole Collars
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7.2.2.1.2 Exploration and Development Drilling
The
total number of drillholes and meters drilled per year are presented in Table 7-3.
Table 7-3: Drillhole Summary by Year
Year
Number
of Holes
Total
Meters Drilled
2021
7
7,225
2022
78
49,795
2023
87
65,381
2024
115
55,966
2025
12
480
2026
7
4,028
Total
306
182,876
Drilling
occurred in multiple areas of the Project, including in the Southwest exploration area, Santa Cruz deposit, East Ridge deposit, and Texaco
deposit (Table 7-4).
Table 7-4: Drillhole Summary by Deposit
Deposit
Number
of Drillholes
Meters
Santa
Cruz
238
134,558
East
Ridge
38
22,564
Texaco
21
18,768
Total
297
175,890
Much of the drilling was focused on definition
and metallurgical drilling within the Santa Cruz and East Ridge deposit areas with secondary exploration drilling in the other Project
areas. The number of assays, by deposit, are shown in Table 7-5.
Table 7-5: Number of Assays by Assay Type &
Deposit
Assay
Type
Santa
Cruz Deposit
East
Ridge Deposit
Texaco
Deposit
Total
Copper (“TCu”)
33,326
5,221
4,282
Acid
Soluble Copper (“ASCu”)
33,294
5,221
4,282
Cyanide
Soluble Copper (“CNCu”)
33,293
5,221
4,282
Gold
(“Au”)
18,395
936
2,208
Silver
(“Ag”)
32,362
5,114
4,270
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Drill
collar locations for Ivanhoe Electric’s and historical drilling are identified on Figure 7-8. Drill collar locations
by program are shown on Figure 7-9.
Source: Ivanhoe Electric, 2024
Figure 7-8: Plan Map of Historical &
Ivanhoe Electric Drillhole Collar Locations
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Source: Ivanhoe Electric, 2026
Figure 7-9: Plan Map of Historical &
Ivanhoe Electric Drill Collar Locations by Program
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7.2.2.2 Drilling
Methods
Drilling was performed using a variety of drilling
equipment and methodologies including coring, reverse circulation, tricone rotary, and shallow sonic boring (Table 7-6). The drilling
equipment and methodology used was dependent on the target objective and target depth. Most drilling performed during 2021 and 2022 used
standard PQ diamond coring from the surface to maximize the amount of core sample recovered for use in multiple sampling and testing
programs. Tricone or rotary with HQ core tails was used when targets did not require large-diameter coring for bulk material, allowing
for a more cost-efficient approach.
Reverse-circulation (“RC”) and sonic
drilling were also used in 2022 for rapid characterization of bedrock interface underneath sedimentary cover, soil, and clay horizons
in the upper alluvial and overburden sediments, and conglomerate units. Table 7-6 also summarizes drilling contractors and equipment
who performed operations for the Project.
Drillhole abandonment procedures were designed
to meet or exceed Arizona’s mandated requirements. Most drilling reached or exceeded depths over 100 m and followed state-approved
borehole abandonment methods.
Table 7-6: Drilling Equipment &
Contractors
Drilling
Contractor
Drilling
Type
Equipment
Models
Major
Drilling Internation Inc.
Core,
rotary with core tails
LF160,
LF230, LF350
National
EWP
Core,
rotary with core tails, well
Schramm
T-130, LF230
T&J
Enterprises, Inc.
Reverse
circulation
HRC
1500 (Custom)
Layne
Christensen Company
Well
Atlas
Copco RD-20, Schramm T-130, Schramm T-200, 60T
Cascade
Environmental
Sonic
LF600
7.2.2.3 Logging
Detailed core logging is performed by Ivanhoe
Electric geologists through digital data input into MX Deposit. Data logged included lithology, alteration, mineralization, veining,
petrophysical data, and geotechnical parameters such as faults, joints and fractures, hardness, and rock quality designation (“RQD”).
Additional characterization fields such as rock colors, stain colors, grain sizes, textures, and supergene weathering features were also
captured.
The core logging and geological database consists
of five major rock types, including 47 major lithologies congruent with historically logged lithologies, 21 lithological textures, 17
alteration types, and 15 lithological structures. There are 28 unique economic and gangue minerals recorded in the current database.
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Photographs of all drill core were taken, both
wet and dry, and are stored digitally in Imago software.
7.2.2.4 Recovery
Recovery was collected by logging geologists
digitally into MX Deposit for all core drilled. Recovery was measured as a percentage of the length of rock measured by core loggers
over the drilled interval. The average recovery is 90% with areas of lower recovery typically seen in sedimentary overburden units and
structures.
7.2.2.5 Collar
Surveying
Collar surveying was performed by Environmental
Field Services, LLC, upon completion and abandonment of the drillholes. Each survey job used the National Geodetic Survey (“NGS”)
benchmark “CZ2366” as the primary benchmark for all subsequent work. Data collection was done by an Arizona-state-licensed
land surveyor and survey technician using a Trimble R8S Integrated GNSS and Trimble TC83 data collector with collected data validated
to fall within acceptable tolerances of Arizona State minimum standards for survey work.
Data were delivered after the completion of a
job and data validation via email in MS Excel spreadsheets as positional coordinates for drillhole collars in NAD 83 United States State
Plane coordinate system in international feet. These were then converted from State Plane to UTM Zone 12N and from international feet
to meters using ESRI ArcPro by Ivanhoe Electric. The converted survey coordinates then entered MX Deposit and superseded any other existing
collar information for use in geographical and modeling software.
7.2.2.6 Downhole
Surveying
Downhole surveying during the 2021 to 2024 drilling
programs was conducted using a REFLEX EZ Gyro and IMDEX OMNIx42 multi-shot gyroscopic surveying tool taken within each drillhole during
drilling at 30 m increments for continuous tracking, and then after hole completion from the bottom in 150 m increments as the tool is
being pulled from the completed drillhole for check analysis.
Depending on technical utility, many drillholes
were also surveyed using borehole geophysical surveying probes through Southwest Exploration Services, LLC. or International Directional
Services Inc. Each borehole was surveyed for 4RX sonic-gamma (sampled every 0.06 m), acoustic televiewer (sampled every 0.003 m), E-logs-gamma
(sampled every 0.06 m), and a gamma caliper test for fluid temperature conduction (sampled every 0.06 m). The downhole surveying has
also allowed for the calibration of post-drilling information to ensure that deviation surveying was
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correct and lithological and mineralogical
contacts were logged properly. The downhole surveying was also used to collect accurate oriented structural measurements.
7.2.2.7 Density
There are no records of density measurements
from historical drill core from the Santa Cruz and Texaco deposits. Further details on density by Ivanhoe Electric are in Section 8.4.
7.2.2.8 Comment
on Material Results & Interpretation
Drill spacing varies from approximately 60 to
100 m in most of the deposit areas to about 200 m spacing in the less drilled areas. Procedures for 2021-2024 drilling, collar surveying,
and geological and geotechnical logging are consistent with industry-standard practices. Procedures for pre-2021 data collection are
not recorded in the information provided to BBA.
Review of recovery data indicated no correlation
between grade and zones of lower recovery. Overall, the QP considers the drill data to be acceptable to support Mineral Resource and
Mineral Reserve estimation.
7.3 Geotechnical
Ivanhoe Electric has used 222 modern drillholes
totaling over 70 km of drilling, with geotechnical data metrics captured serving as the basis for analysis supporting geotechnical characterization
of the Santa Cruz and East Ridge deposits. Drill core and photos are not available for any of the historical drillholes, and Q-system
parameters are not available. In earlier studies, prior to robust internal drilling by Ivanhoe Electric and release of the June 2025
PFS, historical drilling data (n = 83) were combined with available Ivanhoe Electric drilling to create a more complete database. The
historical drilling database is considered disparate and, due to the inability to conduct QA/QC, the historical drilling data has been
excluded from subsequent analysis
7.3.1 Sampling Methods & Laboratory Determinations
Ivanhoe Electric processed diamond drill core
to collect RQD data, Q-prime data (quality of a rock mass), rock hardness, fracture statistics, and samples for laboratory strength testing.
Point load testing, uniaxial compressive strength (“UCS”), triaxial compressive strength, unified soils classification system,
small-scale direct shear, Cerchar abrasivity, and Brazilian disc tension testing were determined by laboratory testing at multiple geotechnical
laboratories including Call & Nicholas, Inc. in Tucson, Arizona, WSP labs in Lakewood, Colorado, San Diego, California,
and Burnaby, Alta E and I lab in Tempe, Arizona, and Terracon Lab in Tempe, Arizona. Laboratory tests were performed in accordance with
the American Society of Testing and Materials (“ASTM”), the
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International Society for Rock Mechanics (“ISRM”),
and the British Standards (“BS”), and testing equipment calibrations were provided as a quality control measure.
Five sonic drillholes assessed and characterized
the alluvium and sediments through sampling, sediment logging, and Atterburg limits for clay behavior under the Unified Soil Classification
System.
Acoustic borehole image logs from televiewer
surveys from 72 core holes helped to orient and identify the dominant joint orientation and fabric in the overburden and bedrock rock
masses.
Results were grouped by lithology and mode of
failure. Laboratory results for point load testing, uniaxial compression strength, and triaxial testing in which the failure took place
through pre-existing weak planes or joints were not used for parameter estimations.
7.3.2 Comment on Results
Logging data and laboratory testing results are
generally consistent with the description of the rock mass. Methods and data collected are consistent with generally accepted industry
standards of practice as described in using the Q-System (Norwegian Geotechnical Institute, 2022). Laboratory testing is in accordance
with standard ASTM guidelines.
7.4 Hydrogeological
Investigations
The area around the Santa Cruz Copper Project
has undergone numerous hydrogeological studies since the 1970s to evaluate the geological and hydrogeological properties and the mining
feasibility of the area. Historical wells, where hydraulic tests were conducted and the hydrogeology data was available for the prefeasibility-level
hydrogeology investigation, are shown in Figure 7-10. The historical data combined with recently collected hydrogeological data,
have informed the hydrogeological conceptual site model for the Project and were incorporated into the groundwater flow model to estimate
the projected groundwater inflows for the mine plan.
7.4.1 Hydrogeological Data Collection
To support the initial assessment, a baseline
hydrogeological model was developed in 2022 and 2023, incorporating Lugeon packer test data from exploration boreholes conducted by Ivanhoe
Electric and Montgomery & Associates (Montgomery & Associates, 2023). The Lugeon packer tests were completed at depths
ranging from 182.1 to 684.6 m below ground surface in exploration boreholes SCC-101, -106, -111, -124, and -128 (Figure 7-10).
The prefeasibility study hydraulic testing program was conducted from
October 2023 through October 2024 by Ivanhoe Electric and INTERA and included 56 additional hydraulic tests
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performed at 14
locations (Figure 7-10). The hydraulic testing was conducted in six new groundwater monitoring wells (SCH-001, -002, -003, -004,
-005, and -006) and TW-1 using several different types of test methods, including packer tests, step tests, and constant rate pumping
tests depending on the location and formation properties (INTERA, 2025). To test areas within the mine plan for the Santa Cruz Copper
Project, slug packer tests were also conducted in six exploration boreholes (SCC-235A, 237, -239, -240, -243, and -247) (Figure 7-10).
Geosyntec Consultants, Inc. (“Geosyntec”) also performed a constant rate test in borehole SCH-007 (Figure 7-10).
Three additional hydraulic tests were conducted in borehole SCC26-009 in June 2026 for purposes of characterizing the bedrock along
the new path of the decline, for a total of 59 hydraulic tests conducted recently at site (Figure 7-10) (INTERA, 2026).
A total of 51 prefeasibility study tests, 23
initial assessment tests, and 30 re-analyzed historical tests were used to determine the hydraulic properties of the hydrogeological
units, along with two tests from the Pinal Active Management Area Model (Pinal model). Seventeen (17) tests were used to define the hydraulic
properties of the overburden units and 87 tests were used to define the hydraulic properties of the bedrock units (Table 7-7). The
three additional tests conducted in June 2026 were all in the leach cap and were included in the data used to update the hydraulic
properties. Since the alluvium is not saturated in the vicinity of the Project area, the hydraulic properties for the alluvium are from
the Pinal model (ADWR, 2019) and not from the hydraulic testing program. The historical and recent hydraulic test analysis results were
used to refine the hydrogeological conceptual site model and groundwater flow characteristics, improving the predictive capability of
the groundwater flow model for the Project.
A total of 109 grouted-in vibrating wire piezometers
(“VWPs”) were installed within 25 core holes (Figure 7-10). These instruments were installed to provide pressure responses
during the prefeasibility study hydraulic tests in 2023 and 2024.
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Source: INTERA, 2026
Figure 7-10: Historical (Pre-Ivanhoe Electric) &
Current Groundwater Monitoring & Testing Locations
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7.4.2 Hydrogeological Conceptual Site Model
For the hydrogeological conceptual site model
and the Project area groundwater flow model, the overburden geology, and mineral domains in both the Santa Cruz mine area and East Ridge
mine area were subdivided into hydrogeological units based on specific hydraulic properties with distinct influence on storage or movement
of groundwater, such as hydraulic conductivity or specific storage. Thirteen hydrogeological units were identified in the Project area
in the 2025 groundwater model (INTERA, 2025) that align with the geological domains and included four overburden units and nine bedrock
units. In the 2026 model update, two of the conglomerate overburden units were combined into a single conglomerate unit (INTERA, 2026).
The hydraulic conductivity values presented in Table 7-7 were determined from the hydraulic tests conducted in the area, including
re-analyzed historical test data as well as recent test data from the initial assessment, prefeasibility study, and the recent characterization
from three hydraulic tests conducted in bedrock near the proposed decline.
Table 7-7: HGU Hydraulic Conductivity
Estimates from Current & Historical Tests Conducted in the Project Area
Hydrogeological
Unit
(“HGU”)
Hydraulic
Conductivity
Minimum
(cm/s)
Hydraulic
Conductivity
Maximum
(cm/s)
Hydraulic
Conductivity
Geometric Mean
(cm/s)
No. of
Hydraulic
Conductivity
Tests
Alluvium*
1.2E-02
2.3E-02
1.7E-02
2
Conglomerate
1.4E-04
5.2E-02
2.0E-02
14
Basal
Conglomerate
3.3E-06
1.3E-04
1.9E-05
3
Leach
Cap
3.5E-08
2.7E-03
1.3E-05
26
Santa
Cruz Oxide
2.2E-09
3.1E-04
1.1E-06
9
Santa
Cruz Chalcocite
1.5E-08
7.1E-06
4.4E-07
5
Santa
Cruz Primary Mineralized
1.2E-06
2.7E-05
6.4E-06
5
Santa
Cruz Primary Unmineralized
9.7E-08
1.0E-04
3.1E-06
8
Santa
Cruz Unmineralized
2.9E-06
1.6E-04
1.6E-05
5
East
Ridge Mineralized
5.2E-06
6.4E-05
1.8E-05
17
East
Ridge Unmineralized
1.6E-07
9.9E-07
4.7E-07
4
Fault
Zone
2.6E-06
3.8E-03
1.4E-04
8
*Hydraulic conductivity estimates for alluvium are from Liu et al.
(2014).
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Groundwater flow characterization of the Project
area was informed by both the regional data from wells surrounding the Project area and data collected within the Project area as part
of the hydrogeological investigations during the initial assessment and prefeasibility study. Groundwater movement within the conglomerate
units generally flows westward toward areas of historically high groundwater withdrawal for agricultural irrigation.
7.4.3 Groundwater Flow Model & Results
To develop a groundwater flow model, the Pinal
model (ADWR, 2019) was modified to enable the simulation of the bedrock head field and to more accurately represent the water supply
pumping stresses after 2015. Then, using the USGS MODFLOW-6 groundwater flow code (MF6) (Langevin et al., 2017), the groundwater flow
model was developed as an inset model to the modified regional Pinal model and calibrated with recent water level observations to reflect
current flow conditions within the Project area. The spatial extent of the inset groundwater flow model was developed to ensure sufficient
distance from the mine to assess potential regional effects from bedrock dewatering. The hydraulic properties within the inset groundwater
flow model were assigned based on the spatial distribution and hydraulic properties of the hydrogeological units (Table 7-7).
The groundwater flow model integrates both the
known hydraulic properties of the hydrogeological units and inferred geology, geology from outside the Project area, along with hydraulic
properties from the surficial alluvium down to the bedrock, using parameters calibrated from the Pinal model as well as recently collected
data and reanalyzed historical data. The groundwater flow model was calibrated using measured water levels and the calibration was assessed
through standard statistical comparisons between simulated and observed groundwater levels. Following model calibration, the model was
used to predict the long-term (mine life) groundwater inflow into mine developments and assess changes in surrounding water levels. Initial
model runs were used to identify zones with higher inflows. Based on the initial model runs, mitigation strategies were selected and
modifications to the mine plan design were applied by the mining engineers to reduce groundwater inflows. To reduce the residual passive
inflows, mitigation measures were developed by Ivanhoe Electric and their mine engineers, and included cementitious grout application
to developments in the Leach Cap hydrogeologic unit, Fault Zone hydrogeologic unit, all East Ridge developments, and developments that
intersect conglomerate.
Although shotcrete will be used in the underground
mine workings it will not be relied upon to effectively limit groundwater inflow and is not used as a mitigation measure in the model.
Concrete will be used in the underground workings as structural control in the vent shafts, haulage chutes, and portions of orepass raises
and was applied in both the mitigation and no-mitigation simulations.
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The results of the groundwater flow modelling
demonstrated a significant reduction in total residual passive inflow with mitigation measures applied (INTERA, 2025). Mitigated inflows
to the mine reach a maximum of approximately 7,200 gal/min (Figure 7-11) (INTERA, 2026). Most of the Santa Cruz mine workings, 96.8%
in the Santa Cruz deposit and 96.2% of the Verde domain, show 0 to 5 gal/min maximum residual passive inflow (Figure 7-12). The
areas of lower residual passive inflow represent stopes, that are only open for short periods during mining and have no inflow, and regions
of low hydraulic conductivity in the Santa Cruz oxide and the Santa Cruz chalcocite hydrogeologic units. Mine developments in East Ridge
have higher percentages of higher maximum residual passive inflows than other parts of the mine. In the East Ridge deposit, 20.3% of
mine workings show 5 to 10 gal/min inflows and 3.8% of the mine workings show 10 to 15 gal/min inflows compared to lower percentages
for other areas with similar inflow rates (Figure 7-12).
Source: INTERA, 2026
Figure 7-11: Residual
Passive Inflows to Mine Workings
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Source: INTERA, 2026
Note: Max RPI = maximum residual passive inflows
Figure 7-12: Model Estimates
of Maximum Residual Passive Inflows to Mine Workings
7.4.4 Comment on Results
The resulting groundwater model uses hydraulic
testing and updated hydrogeological understanding to model groundwater inflows and supports future economic extraction of mineralized
material.
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8. Sample
Preparation, Analysis & Security
8.1 Assay
Laboratory Selection
Table 8-1 details the labs used for analysis
and time periods.
Table 8-1: Labs Used for
Analysis & Time Periods
Dates
Assay
Laboratories
September 2021
– December 2022
Skyline,
Tucson, AZ
SGS, Burnaby, BC, Canada
American Assay Labs, Sparks, NV
December 2022
– May 2023
Skyline,
Tucson, AZ
SGS, Burnaby, BC, Canada
May 2023
– June 2026
SGS, Burnaby, BC, Canada
SGS, Lakefield, ON, Canada
SGS, Tempe, AZ
ALS Global, North Vancouver, BC, Canada
ALS Global, Tucson, AZ
The three laboratories used from September 2021
to December 2022 are certified by the International Standards Organization (“ISO”), demonstrating technical competence
for a defined scope and the operation of a laboratory quality management system (ISO 17025) and were independent of Ivanhoe Electric.
Additionally, Skyline, located in Tucson, AZ, was certified as ISO 9001, indicating that the quality management system conforms to the
requirements of the International Standards. SGS Burnaby, BC, Canada, conformed to the requirements of ISO/IEC 17025 for specific tests
as listed on their scope of accreditation. American Assay Labs, Sparks, NV, carried approval from the State of Nevada Department of Conservation
and Natural Resources Division of Environmental Protection. Issues with analytical quality at American Assay Labs in early 2022 led to
Ivanhoe Electric discontinuing work with this laboratory.
The laboratories used from December 2022
to June 2026 are recognized by the International Standard (ISO 17025) for demonstrating technical competence for a defined scope
and the operation of a laboratory quality management system and were independent of Ivanhoe Electric. Additionally, Skyline, Tucson,
AZ, is recognized by ISO 9001, indicating that the quality management system conforms to the requirements of the international standard.
SGS, Burnaby, BC, Canada, SGS, Lakefield, ON, Canada, and SGS, Tempe, AZ (preparation lab) conform to requirements of ISO/IEC 17025 for
specific tests as listed on their scope of accreditation. ALS Global, North Vancouver, BC, Canada and ALS Global, Tucson, AZ conform
to the requirements of ISO/IEC 17025 for specific analytical procedures as listed on their scope of accreditation. In May
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2023,
due to quality assurance/quality control (“QA/QC”) concerns in the preparation department at Skyline, Ivanhoe Electric
discontinued work with this laboratory.
8.1.1 2021 to 2022
Drill core from the Santa Cruz Copper Project
was sampled under the direct supervision of the project’s managing staff.
Samples collected in 2021-2022 were cut lengthwise,
either in half or in four quarters, using an NTT Coresaw diamond-bladed saw or a Husqvarna® table saw. Each sample, consisting of
one-half or one-quarter of the drill core, was placed in a plastic sample bag labeled with the sample number and sealed with a zip tie.
This bag was then placed in a burlap sample bag, also labeled with the sample number, with a sample tag inserted between the plastic
and burlap bags. The sample tag corresponded with the tag stapled to the core box containing the remaining half or three-quarters of
the drill core for cataloging and storage. The burlap sample bags were then grouped in batches of 25, placed in large, labeled plastic
bags, sealed with zip ties, and transported to the laboratory facility in large fold-out plastic bins. Quarter core was used for a subset
of holes and quarter core duplicates were determined to have roughly equivalent variance to half core duplicates.
8.1.2 2023 to 2026
Drill core from the Santa Cruz Copper Project
was sampled under the direct supervision of the project’s managing staff.
Samples collected in 2023 and 2026 were cut lengthwise
in half, using the NTT Coresaw diamond-bladed saw. Each sample consisted of one-half of the split drill core, which was placed in an
8 mm thick, 18″ x 24″, plastic sample bag labeled with the sample number in black Sharpie® and a sample tag affixed
to the outside of the plastic bag via a chemical seal. The sample tag affixed to the outside of the sample bag corresponded with the
tag stapled to the core box where the remaining half-core was placed for cataloging and storage. The plastic sample bags were then placed
in large, fold-out plastic bins, or super sacks on pallets, for transport to the laboratory facility.
8.1.3 Ionic Leach
Ivanhoe Electric collected samples in the spring
of 2024 for mobile metal ion analysis via ALS’s ionic leach program. Sample preparation was completed by ALS Tucson and prepared
samples were sent to ALS North Vancouver for ionic leach analysis.
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Sample collection consisted of removing the top
10 to 15 cm of soil using a stainless-steel trowel and then removing any contaminated soil from the area with a plastic trowel. The plastic
trowel was cleaned with a wire brush, followed by a plastic brush, before the sample was collected. Approximately 1 kg of material was
collected 30 cm below the layer that was removed and placed into a quart-sized plastic Ziploc® bag. Bags were labeled with a sample
ID and tag, organized into groups of 200, and placed into larger rice bags or cloth bags to be transported to the laboratory.
8.2 Sample Preparation &
Analysis
8.2.1 Skyline Assayers & Laboratories
Half of the total drill core samples taken during
August 2022 to May 2023 and all the drill core samples taken during the September 2021 to August 2022 core drilling
programs were prepared and analyzed at Skyline. The samples were crushed from the split core to prepare a total sample of up to 5 kg
at 75% passing 6 mm. Samples were then riffle split, and a 250 g sample was pulverized with standard steel to plus 95% passing at 150
µm.
After sample pulp preparation, the samples were
analyzed using the following methods:
■ All
samples were analyzed for total copper using multi-acid digestions with an atomic absorption
spectrometry (“AAS”) finish. The lower limit of detection is 0.01% for total
copper, with an upper detection limit of 10%.
■ Sequential
analyses (“SEQ”) for cyanide-soluble copper and acid-soluble copper were conducted
via multi-acid leaching with an AAS finish. The lower limit of detection is 0.005%, with
an upper detection limit of 10%.
■ Molybdenum
was prepared using multi-acid digestion and analyzed using Inductively Coupled Plasma Optical
Emission Spectroscopy (“ICP-OES”). This analysis has a lower detection limit
of 0.001%.
■ Samples
greater than 10% Cu with a 20% threshold were analyzed again using a long iodine method.
8.2.2 SGS Laboratories
All samples taken during the May 2023 to
July 2026 diamond drilling program were prepared and analyzed at SGS Burnaby, Tempe, or Lakefield. The other half of the total drill
core samples taken during the August 2022 to May 2023 diamond drilling program and not sent to Skyline, were prepared and analyzed
at SGS Burnaby or Lakefield. The samples were crushed from the split core to prepare a total sample of up to 9 kg at 6 mm. Samples were
then riffle split, and a 250 g sample was crushed to 75% passing at 2 mm. The sample was then pulverized with standard steel to plus
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85% passing at 75 µm. After sample pulp preparation, the samples were analyzed using the following methods:
■ All
samples were analyzed for total copper using a sodium peroxide fusion with an inductively
coupled plasma atomic emission spectroscopy (“ICP-AES”) finish. The lower limit
of detection is 0.001% for total copper, with an upper detection limit of 5%.
■ Three-stage
SEQ for cyanide-soluble and acid-soluble copper were conducted via multi-acid leaching with
an AAS finish. For SEQ copper analyses, the lower limit of detection is 0.005%, with an upper
detection limit of 100% using a separate subsample than what was used for the total copper
analysis.
■ Molybdenum
was prepared using a sodium peroxide fusion with an ICP-AES finish. The lower limit of detection
is 0.001% for total molybdenum with an upper detection limit of 5%. Multi-element analysis
was prepared using a 33-element, four-acid digestion and analyzed using a combined ICP-OES
and inductively coupled plasma mass spectroscopy (“ICP-MS”) package.
■ Gold
was prepared using a 30 g fire assay and analyzed using an AAS finish. This analysis has
a lower limit of detection of 5 ppb, with an upper detection of 10,000 ppb or 1 ppm.
■ Silver
was prepared using a four-acid digestion and analyzed using a combined ICP-OES and ICP-MS
package. This analysis has a lower detection limit of 0.02 ppm and an upper detection limit
of 100 ppm.
■ Samples
greater than 5% Cu, with a 60% threshold, were re-analyzed using a short iodide titration
overlimit.
■ Samples
greater the 60% Cu were re-analyzed using electrogravimetry, with a 95% Cu threshold.
8.2.3 ALS Laboratories
In spring 2024, Ivanhoe Electric collected
surface samples for mobile metal ion analysis at ALS Tucson and ALS North Vancouver via an ionic leach program. A 50 g sample was taken
directly from the field bag with no pre-treatment to reduce any chances of contamination. Processing of the 50 g sample was carried out
in a dedicated ionic preparation laboratory in North Vancouver.
Copper, gold, silver, and molybdenum were analyzed
via a static sodium cyanide leach utilizing the chelating agents ammonium chloride, citric acid, ethylenediaminetetraacetic acid (“EDTA”)
and the leachant buffered at an alkaline pH of 8.5. The leachant solution was analyzed using an ICP-MS finish. Lower limits for all elements
were as follows: Cu 1 ppb, Au 0.01 ppb, Ag 0.05 ppb, and Mo 0.2 ppb.
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8.2.4 American Assay Laboratories
Two drillholes from the 2021 drill campaign were
prepared and analyzed at American Assay Laboratories. Due to issues with analytical quality, Ivanhoe Electric discontinued work
with this facility.
8.2.5 Historical Core Assay Sample & Analysis
Historically, samples from both Texaco and Santa
Cruz drilling were sent to Skyline to be assayed for standard total copper and non-sulfide copper methods. Samples were crushed and split;
a 250 to 500 mg sample was then prepared in the following ways:
■ Total
copper analysis samples were dissolved using a mixture of hydrochloric acid (“HCl”),
nitric acid (“HNO3”) and perchloric acid (“HClO4”)
over low heat. The mixture was then measured using AAS.
■ Non-sulfide
copper was dissolved using a mixture of sulfuric acid (“H2SO4”)
and sulfurous acid (“H2SO3”) over moderate to high heat.
This mixture was then filtered, diluted, and measured using AAS. No information on the historical
analytical detection limits is available.
8.3 Quality Assurance/Quality Control
Procedures
Analytical QC measures involve internal and external
laboratory procedures implemented to monitor the precision and accuracy of the sample preparation and assay data. These measures are
important to identify potential sample sequencing errors and to monitor for contamination of samples.
8.3.1 2021 to 2022
Ivanhoe Electric submitted a blank, standard,
or duplicate sample on every seventh sample with an approximate insertion rate of 4.8% for all QC types. Sampling and analytical QA/QC
protocols typically involved taking half-core field duplicate samples and inserting QC samples (certified reference material (“CRM”)
and blanks), to monitor the reliability of the assay results throughout the drill program.
8.3.2 2023 to 2026
Ivanhoe Electric submitted a coarse blank and
an analytical blank, a certified reference material (CRM or standard), or a duplicate sample on every sixth sample to increase the insertion
rate of QC samples to meet or exceed 5% per sample type. Field duplicates were submitted at an
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average insertion rate of 4.6% in 2023
and 4.8% in 2024. Supplemental coarse reject duplicates and pulverization duplicates depending on grade were also submitted.
8.3.3 Santa Cruz Sampling
8.3.3.1 Standards
During the 2023-2024 drilling campaigns, Ivanhoe
Electric submitted ten different CRMs from OREAS, Geostats Ply., CDN Resources Laboratory Ltd., and MEG LLC. CRMs were chosen to be matrix
and mineralization matched, as well as represent copper grades seen throughout the deposits. A barren, low-grade, mid-grade, and high-grade
CRM was used for both oxide and sulfide copper material. All CRMs are certified for copper analysis, eight are certified for multi-element
analysis and gold fire-assay, and nine are certified for silver analysis.
A review of the CRM results identified minimal
laboratory failures at Skyline and SGS. Few measurements go above or below three standard deviations. When measurements produced results
above or below three standard deviations, the laboratory would recalibrate and reanalyze the sample. Figure 8-1 shows performance
charts for the most frequently used oxide and primary sulfide CRMs for the Santa Cruz deposit.
Ivanhoe Electric created two high-grade matrix
matched standards in late 2023 to control assay grades above 2% copper. One standard was made at 2.076% copper (SCHG01), and the other
at 3.405% (SCHG02) copper. These standards were received in late spring 2024, and round robin certification was obtained in May 2024.
8.3.3.2 Blanks
As part of its QA/QC process for the Santa Cruz
deposit, Ivanhoe Electric used coarse (1”) granite material from Pioneer Landscaping to assess contamination in assay samples.
Ivanhoe Electric submitted 158 coarse granite blanks to Skyline and 1,127 coarse granite blanks to SGS during the 2023 and 2024 drilling
campaigns. No significant carryover of elevated metals was evident in blanks measured at Skyline or at SGS. A threshold of ±0.02%
Cu was accepted for blank samples. If a sample did not initially pass, it was re-analyzed.
8.3.3.3 Duplicates
Ivanhoe Electric submitted 136 field duplicates
from the Santa Cruz deposit to Skyline and 949 field duplicates to SGS during the 2023 and 2024 drilling campaigns as a part of its QA/QC
process. The results of the field duplicates are in good agreement for total copper (%), acid-soluble copper (%) and cyanide-soluble
copper (%).
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Source: Ivanhoe Electric, 2025
Figure 8-1: Certified
Reference Material Performance Charts for Santa Cruz Deposit
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Ivanhoe Electric Inc.
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8.3.4 East Ridge & Texaco Sampling
8.3.4.1 Standards
During the 2022 drilling campaign, Ivanhoe
Electric submitted ten CRMs for drilling carried out within the East Ridge deposit and nine CRMs for drilling conducted within the Texaco
deposit. A review of the CRM results showed minimal failures from Skyline or SGS for samples submitted from either deposit. In the rare
instance of failure (outside three standard deviations), the laboratory re-calibrated their equipment and re-analyzed the batch.
8.3.4.2 Blanks
During the 2023-2024 drilling campaigns, Ivanhoe
Electric submitted 289 coarse granite blanks for the East Ridge deposit and 210 coarse granite blanks for the Texaco deposit to Skyline
and SGS as part of its QA/QC process. No significant carryover of elevated metals was evident in blanks measured at Skyline or SGS. A
threshold of ±0.02% Cu was accepted for blank samples. If the samples did not initially pass, they were re-analyzed.
8.3.4.3 Duplicates
During the 2023-2024 drilling campaign, Ivanhoe
Electric submitted field duplicates for the East Ridge and Texaco deposits as a part of its QA/QC process. For the East Ridge deposit,
49 field duplicates were submitted to Skyline and 235 field duplicates to SGS. For the Texaco deposit, 26 field duplicates were submitted
to Skyline and 147 field duplicates to SGS. All samples appear to be in reasonable agreement. Slight to moderate differences can be explained
by a “nugget” effect and geological inconsistencies in mineralization.
8.4 Density
A total of 6,295 density measurements from 210
core drillholes exist for the Santa Cruz, East Ridge, and Texaco deposits. Measurements were calculated using the weight in air versus
the weight in water method (Archimedes).
Density values were relatively consistent per
domain, and an estimated density value would be very similar to an assigned value. Values were assigned to blocks based on subdomains
per deposit. Due to a significant increase in measurements, East Ridge and Texaco have sufficient sample density to assign specific averages
per deposit and domain (Table 8-2). Texaco subdomains lacked sufficient samples for unique values.
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Measurements were calculated using the weight
in air versus the weight in water method (Archimedes) by applying the following formula:
Table 8-2: Santa Cruz
Copper Project Density Measurements
Lithology
Average
Density
Alluvium
1.96
Gila
Conglomerate
2.18
Apache
Leap Tuff
2.25
Whitetail
Conglomerate
2.33
Lacustrine
Sediments
2.60
Mafic
Conglomerate
2.34
Basal
Conglomerate
2.39
Diabase
2.61
Laramide
porphyry
2.56
Oracle
granite
2.54
Pinal
Schist
2.65
Source: Ivanhoe Electric, 2024
8.5 Security & Storage
The drill core from Santa Cruz, East Ridge, and
Texaco were stored in wax impregnated core boxes and transported from the drill rig to the core shack. After being logged, the core boxes
were palletized, weatherized, and stored in Ivanhoe Electric’s secure drill core storage facilities. The drill core storage facilities
are surrounded by gated chain-link fencing and locked for security purposes. All samples for analyses were transported by courier to
the laboratories in Tucson, Tempe, North Vancouver, or Burnaby.
8.6 BBA Opinion
BBA was supplied with raw QA/QC data and has
carried out an independent review of the results for Ivanhoe Electric’s sampling programs. It is the QP’s opinion that the
sample preparation, security, and analytical procedures used are consistent with standard industry practices and that the data is suitable
for Mineral Resource and Mineral Reserve estimation.
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9. Data
Verification
9.1 Data Verification Procedures
BBA performed several
verification checks to ensure the data integrity of the Santa Cruz Copper Project, including the data associated with the Santa Cruz,
East Ridge, and Texaco deposits. BBA also completed data analysis and validation, as described in Section 11.
9.2 BBA Site Visit
BBA completed an initial site visit to the Project
area, including the Santa Cruz, East Ridge, and Texaco deposits, from February 27 to March 1, 2024. BBA personnel were accompanied
by Ivanhoe Electric management and geologists.
An additional inspection of site was completed
by BBA from April 22 to 23, 2024.
Activities carried out during the site visits
included the following:
■ Reviewed
work completed on the Project as well as the geological, geotechnical, and geographical setting;
■ Reviewed
active work, including active drill sites;
■ Reviewed
the site’s geology, mineralization, and structural controls;
■ Reviewed
the data capture process including logging, sampling, analytical, and quality assurance and
quality control procedures;
■ Reviewed
the chain of custody of samples from the sampling process to the sample dispatch;
■ Reviewed
drill logs, drill core, storage facilities, and collected samples for assay verification
purposes;
■ Confirmed
both historical and Ivanhoe Electric drillhole collar locations;
■ Verified
the data entry process into the drillhole database system.
Ivanhoe Electric employs a rigorous QA/QC protocol,
including the routine insertion of field duplicates, blanks, and certified reference standards. BBA received a monthly QA/QC report from
Ivanhoe Electric and was provided with all QA/QC data prior to the site visits.
The geological data collection procedures and
the chain of custody were found to be consistent with current industry practices and follow Ivanhoe Electric’s internal procedural
documentation. BBA verified the quality of geological and sampling information collected by Ivanhoe Electric and
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confirmed the data are
fit for use in the creation of geological and mineralized models and that the data are appropriate for use in the mineral resource and
mineral reserve estimation.
BBA completed an additional site visit from November 3
to November 6, 2025. Activities carried out during the site visits included the following:
■ Reviewed
active work, including active drill sites;
■ Reviewed
the chain of custody of samples from the sampling process to the sample dispatch;
■ Reviewed
drill logs, drill core, and storage facilities;
■ Confirmed
both historical and Ivanhoe Electric drillhole collar locations.
9.3 Field Collar Validation
While visiting the Project site, BBA and Ivanhoe
Electric personnel verified 51 collar locations using a Garmin GPSMAP 62 handheld global positioning system (“GPS”) unit.
These collar readings compared to the recorded collar locations in the Project database; deviations between these two readings were within
the expected resolution of the handheld units. Three drillholes that were noted to have a GPS deviation greater than 10 m were resurveyed
by a third-party group using a differential GPS system. The resurveyed coordinates obtained by Ivanhoe Electric returned coordinate values
within a reasonable tolerance of the GPS coordinates obtained by BBA.
9.4 Core
Logging, Sampling & Storage Facilities
The drillholes are logged, photographed, and
sampled on site at the Ivanhoe Electric core logging facility (Figure 9-1). Drill core is palletized, winterized, and stored at
Ivanhoe Electric’s core storage facilities. The core samples, pulps, and coarse rejects are kept at the core logging facility or
at Ivanhoe Electric’s core storage facilities.
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Source: Ivanhoe Electric, 2024
Figure 9-1: Core Logging
Facility, Casa Grande, Arizona
Ivanhoe Electric drillhole recordings are stored
in a commercial geological database management system, MX Deposit. Data are logged and entered directly into the software. The software
has been extensively customized for Ivanhoe Electric and the Santa Cruz Copper Project, including defined pick lists and calculated fields,
which enable data integrity checks at the data entry stage. Geotechnical measurements are also taken and entered directly in MX Deposit
with the same validation and data integrity checks. Select drillholes were surveyed with a suite of televiewer probes, including acoustic
borehole imaging, which characterized the orientation and properties of discontinuities using WellCAD software.
Core loggers have access to Ivanhoe Electric’s
standard operating procedures and work instruction documentation for logging and sampling, which includes a standardized drill inspection
checklist for standardizing and enforcing core logging procedures. QA/QC samples, including blanks, duplicates, and standards, are appropriately
selected and inserted into the sampling workflow. Documentation, the data collection process, and geotechnical logs are subject to routine
internal audits by senior staff and management to ensure consistent and accurate collection of data by the Ivanhoe Electric team.
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9.5 Independent
Sampling
BBA selected sample intervals from eight holes
drilled on the Santa Cruz deposit. Twenty (20) verification samples were collected (Table 9-1) from the existing assay database.
Sample material for the verification samples
were the pulp rejects from previously submitted Ivanhoe Electric samples. Pulp rejects were sent to BBA’s office in Sudbury, Ontario,
Canada, where the sample numbers were validated, and were then submitted to ALS Sudbury for preparation and then analyzed at ALS North
Vancouver. ALS is certified by the International Standards Organization, demonstrating technical competence for a defined scope and the
operation of a laboratory quality management system (ISO 17025) and is independent of Ivanhoe Electric. The ALS sample workflow uses
the same aliquot when testing for acid-soluble copper and cyanide-soluble copper.
The BBA check assay results from ALS were compared
to Ivanhoe Electric’s sample database. The results are summarized in Table 9-1 for total copper (%), acid-soluble copper (%),
and cyanide-soluble copper (%). Two samples, or 10% of the assays checked, showed sample variances significantly greater than 10%. All
other results, regardless of analytical method, were within reasonable tolerances for the deposit type and no material biases were evident.
Table 9-1: Original Assay
Values vs. BBA Check Sample Assay Values
Sample
Number
From
To
Original
Sample
BBA
Check Samples
Total
Cu (%)
Acid-
soluble
Cu (%)
Cyanide-
soluble
Cu (%)
Total
Cu (%)
Acid-
soluble
Cu (%)
Cyanide-
soluble
Cu (%)
694731
884.00
885.00
1.05
0.02
0.26
1.10
0.02
0.29
694736
888.00
889.00
1.10
0.01
0.10
1.12
0.04
0.09
695558
840.00
841.00
2.72
0.00
0.43
2.68
0.10
0.48
695641
911.00
912.00
1.04
0.01
0.08
1.04
0.04
0.08
SCC-056_334
600.00
601.00
3.52
3.40
0.03
3.65
3.34
0.02
SCC-056_345
609.00
610.00
1.61
1.50
0.01
1.64
1.36
0.01
SCC-056_381
639.80
640.90
3.52
0.22
3.03
3.46
0.34
2.88
SCC-056_403
659.00
660.00
2.73
0.20
2.40
2.69
0.30
2.16
SCC-057_149
640.00
641.00
2.78
2.33
0.38
2.89
2.19
0.33
SCC-057_171
659.00
660.00
6.23
0.74
5.24
6.05
0.72
4.74
SCC-057_185
670.80
671.80
1.44
1.38
0.01
1.43
1.25
0.01
SCC-057_215
697.00
698.00
1.25
0.23
0.00
1.25
1.23
0.01
SCC-057_268
740.78
742.19
1.96
0.14
1.83
1.97
0.16
1.85
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Sample
Number
From
To
Original
Sample
BBA
Check Samples
Total
Cu (%)
Acid-
soluble
Cu (%)
Cyanide-
soluble
Cu (%)
Total
Cu (%)
Acid-
soluble
Cu (%)
Cyanide-
soluble
Cu (%)
SCC-057_278
749.00
750.00
2.63
0.10
2.62
2.76
0.15
2.67
SCC-084_100
747.00
749.00
4.05
3.92
0.01
4.03
3.99
0.01
SCC-125_046
598.00
600.00
1.31
1.23
0.01
1.30
1.34
0.01
SCC-178_054
591.00
593.00
1.03
0.98
0.00
1.01
1.07
0.05
SCC-178_059
599.00
601.00
0.93
0.87
0.00
0.95
0.69
0.01
SCC-178_133
708.00
710.00
0.71
0.45
0.06
0.57
0.48
0.06
SCC-186_067
647.00
649.00
3.59
3.86
0.01
3.81
3.20
0.01
9.6 Twin
Hole Analysis
In 2021, Ivanhoe Electric drilled five twin
holes with the intention of verifying five historical drillholes. All five twin hole assays aligned with the historical drilling, validating
the historical ASARCO cyanide-soluble assays.
Between 2021 and 2024, several holes drilled
for resource estimation purposes were evaluated against nearby historical holes of different vintages. The results were consistent with
the 2021 validation. Due to different sample lengths and differences in analytical methods, a direct comparison of assay intervals is
not representative of the results; however, geological contacts were consistent between the holes and composited assays.
9.7 Database Validation
BBA completed a spot check verification of the
assay database for each deposit, as follows:
■ Santa
Cruz deposit – approximately 10% (3,700) of the 37,000 assays;
■ East
Ridge deposit – approximately 10% (800) of the 8,000 assays;
■ Texaco
deposit – approximately 10% (390) of the 3,900 assays.
The geology was validated for lithological units
from Ivanhoe Electric’s Leapfrog lithological model. The geological contacts aligned with the core contacts and are acceptable
for use. Datamine software also has a validation routine when importing the data. No errors were recorded.
Due to the re-analyses to determine cyanide-soluble
copper within the historical samples, there are instances where cyanide-soluble copper is greater than total copper. It has been determined
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that the historical cyanide-soluble assays are valid as they align with recent drillhole assays. Therefore, a cap has been applied to
historical cyanide-soluble assays such that they must not exceed the associated total copper value by 20% for each sample, as these results
are from separate sample splits and this variance in values is expected. Likewise, any acid-soluble assays that exceed the associated
total copper value by 20% are capped.
9.8 Review
of Company’s QA/QC
BBA conducted an
independent review of Ivanhoe Electric’s QA/QC procedures as part of the validation process and believes that the company has a
robust QA/QC process in place, as described in Section 9.5.
9.9 BBA
Opinion
It is BBA’s
opinion that the geological data collection and QA/QC procedures used by Ivanhoe Electric are consistent with current industry practices
and that the geological database is of suitable quality to support the mineral resource estimates, mineral reserve estimates, and mine
planning.
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10. Mineral
Processing & Metallurgical Testing
10.1 Test
Laboratories
During the over
60-year history of exploration around the Project area, a significant number of metallurgical studies and accompanying laboratory-scale
tests have been completed by external consultants. Since Ivanhoe Electric acquired the Property in 2021, metallurgy and processing testwork
has been directed by Met Engineering, LLC (“Met Engineering”) and conducted at McClelland Labs (“MLI”) in Sparks,
Nevada, USA; and at Blue Coast Research (“BCR”) in Parksville, British Columbia, Canada; and Kappes, Cassiday and Associates
(“KCA”) in Reno, Nevada, USA. The laboratories performed metallurgical testing to industry standards using industry-accepted
procedures. MLI meets the requirements of AC89 Accreditation Criteria for Testing Laboratories from the International Accreditation Service
(“IAS”) and with ISO 17025 certification. Neither BCR nor KCA are certified by any accreditation associations however both
labs are widely used by the mining industry for mineral process testing. Each laboratory is independent of Ivanhoe Electric.
10.2 Metallurgical
Testwork
After the Initial Assessment was published in
September 2023, various trade-off studies were completed. In late 2023 a proposed float-leach process flowsheet was pursued, where
the mineralized material would be floated producing a salable copper-gold-silver concentrate, followed by sulfuric acid leaching of the
tailings using solvent extraction (SX) / electro-winning (EW technology to produce copper cathode. This flowsheet successfully delivered
high copper recovery while producing both salable concentrate and copper cathode. Testwork continued to evaluate alternatives and ultimately
arrived at a flowsheet of dynamic heap leaching of the ore followed by SX/EW to produce copper cathode for sale in the US marketplace
and eliminated production of copper concentrates that likely would have necessitated selling them into the Asian or European markets
because of limited copper smelting capacity in the US.
10.2.1 Column Leach Testing
Column leach studies simulating heap leaching
were completed in 2024, 2025, and 2026 at the MLI, BCR, and KCA laboratories. Exploratory testwork at MLI established operating parameters
that were used on later variability testwork completed at BCR. The BCR variability program optimized leach parameters for the Santa Cruz
oxide and chalcocite mineral domains resulting in refining reagent consumption while maximizing recovery. The column leach test program
at KCA developed operational strategy and set basic/detailed process design criteria (“PDC”) for the Project going forward.
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10.2.1.1 Sample
Selection
Three master composite samples from drill core
halves from the 2023 to 2024 Ivanhoe Electric drilling program were selected for developing operational strategy and setting basic/detailed
PDC. One master composite sample, MC-J, represented ore expected to be mined (based on the 2025 mine schedule) during the early years
(mine plan years 1-3). A second master composite sample, MC-K, represented the life of mine (“LOM”) material expected to
be mined without the first 3 years of mining. A third master composite, MC-L, represented LOM ore with a greater chalcocite domain component
than the typical LOM ore (MC-K). Each master composite was created from drillhole intervals. Sample intervals are continuous with an
average length of 20 m and a minimum calculated total copper grade of 0.7%. Table 10-1 identifies the individual samples that
were selected to create each of the three master composite samples. The individual intervals making up each master composites provide
broad spatial coverage of the Santa Cruz Mineral Reserve within the mine design (Figure 10-1). All lithologies are represented,
including Oracle Granite-dominant samples and samples containing mixtures of porphyry and diabase, consistent with the orebody geology.
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Table 10-1: Sample Selection
for Master Composites for Column Leach Testing
Sample
ID /
Master Composite ID
Drillhole
ID
From
(m)
To
(m)
%
Total Cu
%
Acid-soluble
Cu
%
Cyanide-
soluble Cu
%
Cu
Residual
J
– Years (1-3)
VAR108
SCC-180
544
572
0.528
0.072
0.414
0.042
VAR111
SCC-215
698
723
0.602
0.123
0.424
0.055
VAR113
SCC-226
619
640
2.152
2.063
0.009
0.080
VAR116A
SCC-189
578
590
1.804
1.709
0.007
0.088
VAR116A
SCC-200
675
689
0.800
0.075
0.648
0.078
VAR124
SCC-210
687
705
1.288
0.173
1.059
0.056
VAR125
SCC-200
449
466
1.368
1.322
0.004
0.042
VAR127
SCC-216
655
666
1.187
0.164
1.042
0.005
VAR132
SCC-178
605
629
1.393
1.366
0.003
0.027
VAR133
SCC-184
536
561
0.832
0.774
0.013
0.047
VAR137
SCC-218A
642
658
0.987
0.055
0.500
0.432
VAR138
SCC-217
913
924
1.509
0.110
1.368
0.031
K
– LOM Composite without Years 1-3
VAR087
SCC-208
917
947
2.084
0.101
1.929
0.054
VAR089
SCC-209
644
674
1.246
0.097
0.997
0.151
VAR110
SCC-195
732
767
0.446
0.302
0.135
0.009
VAR112
SCC-230
666
687
0.915
0.075
0.804
0.036
VAR114
SCC-176
615
643
1.140
0.778
0.302
0.060
VAR117A
SCC-178
633
647
1.107
1.113
0.003
0.000
VAR117A
SCC-199
539
558
1.146
0.549
0.563
0.033
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Sample
ID /
Master Composite ID
Drillhole
ID
From
(m)
To
(m)
%
Total Cu
%
Acid-soluble
Cu
%
Cyanide-
soluble Cu
%
Cu
Residual
VAR126
SCC-218A
321
397
1.003
0.923
0.005
0.074
VAR128
SCC-189
625
640
1.060
0.107
1.007
0.000
VAR129
SCC-191
631
649
0.983
0.932
0.005
0.045
VAR130
SCC-194
627
645
1.078
0.923
0.174
0.008
VAR131
SCC-193
878
892
0.661
0.604
0.005
0.051
VAR136
SCC-212
727
753
0.712
0.709
0.002
0.007
L
– LOM Composite with Greater Chalcocite Domain than MC-K
VAR118
SCC-187
578
602
1.088
1.071
0.004
0.014
VAR118
SCC-197
628
644
1.112
0.071
0.888
0.152
VAR118
SCC-209
600
614
0.815
0.075
0.564
0.173
VAR118
SCC-216
545
554
1.230
1.110
0.016
0.104
VAR120
SCC-197
584
605
2.546
2.380
0.368
0.000
VAR121
SCC-197
689
724
0.904
0.103
0.793
0.017
VAR122
SCC-198
614
652
0.994
0.327
0.657
0.017
VAR123
SCC-199
614
638
0.885
0.047
0.620
0.221
VAR134
SCC-206
553
575
1.239
0.123
1.076
0.042
Source: Met Engineering, 2026.
SEPTEMBER 2026 10-4
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Source: Met Engineering, 2026.
Figure 10-1: Spatial Distribution
of the Variability & Master Composite Samples
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10.2.1.2 Ore
Characterization
FLSmidth MTRC Mineral Testing Services (Salt
Lake City, Utah) characterized three KCA-Reno master composites (J, K, and L), crushed to 100% passing 10 mm, using TIMA-X, EPMA, LA-ICP-MS,
XRD, and chemical assays. Results are summarized in Table 10-2. “CNCu” denotes cyanide-soluble copper, used analytically
to indicate secondary sulfide copper; cyanide is not part of the proposed Santa Cruz flowsheet.
Bulk mineralogy is broadly consistent and reflects
the predominantly Oracle Granite host lithology, with quartz, K-feldspar, and muscovite as the principal minerals. Composite K contains
more K-feldspar (41%) and less biotite (1%), reflecting minor lithological variability among the samples.
Average copper deportment comprises 29% atacamite,
23% other oxide minerals, 38% chalcocite, and 9% combined chalcopyrite, covellite, and bornite. Atacamite also accounts for 98% of chloride,
demonstrating the association between chloride and the oxide mineral domain. Chalcocite and pyrite account for 67% of sulfur, while alunite,
chalcopyrite, and bornite contribute a further 22%. Composite L has the highest sulfur content due to its greater chalcocite abundance
relative to Composite K. Iron occurs primarily in iron oxides/hydroxides (33%), muscovite (19%), and pyrite (15%).
Mineralogical copper decreased from 1.02–1.30%
in the master composites to 0.05–0.30% in the selected column residues, consistent with the high copper extractions achieved. Oxide
copper minerals were reduced to trace or below-detection concentrations, while residual copper occurred mainly as covellite and chalcocite.
The presence of covellite in residues J and K, despite not being identified in their feeds, suggests chalcocite alteration and/or secondary
precipitation during leaching. Residue L-3 retained the most copper (0.30%), principally as covellite from incomplete chalcocite leaching
because the L composite feed material only had 0.08% copper as covellite.
Quartz, K-feldspar, and muscovite remained dominant
in the residues, collectively comprising approximately 80–90% of the bulk mineralogy. Only minor changes in clay and sulfate minerals
were observed, indicating limited gangue alteration under the column-leaching conditions. Visual evaluation of the agglomerated ore before
leaching and the leach residue after leaching indicated no significant chemical decrepitation of the host rock occurred. This observation
was supported by the nearly identical P80 particle size and profile of the head and residue from each test, head was 5.6 mm
and leach residue was 5.5 mm.
Average mineral extractions calculated from the
optimal operating conditions for each composite (MC-J-3, MC-K-2, and MC-L-1; Table 10-2 and Table 10-3: ) were: Atacamite:
100%, Chrysocolla: 100%, Copper-bearing clay: 100%, Chalcocite: 96%, Copper limonite: 89%, and Chalcopyrite: 42%.
Covellite: covellite produced from partial chalcocite
leaching was observed in the J, K, and L leach residues.
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Table 10-2: Master Composite
Samples
Sample
ID
Total
Cu %
Sequential
Coppers %
Sulfur
Assay
%
Copper
Deportment Mineralogy
Selected
Modal Mineralogy %
Selected
Assays %
ASCu
CNCu
CuRes
Total
S
Atacamite
Chrysocolla
Cu-
Limonite
Cu-
Clays
Other
Cu
Chalcocite
Chalcopyrite
Covellite
Quartz
K-Feldspars
Biotite
Muscovite
Carbonates
Pyrite
Iron
Oxides
Smectites
Chloride
Titanium
Calcium
Iron
Magnesium
Aluminum
Potassium
Manganese
Master
Composites
J
1.25
0.82
040
0.05
0.42
0.43
0.06
0.06
0.08
0.04
0.37
0.04
0.00
42.15
29.31
2.00
14.44
0.02
0.29
0.82
2.01
0.12
0.10
0.07
1.79
0.28
6.90
5.16
0.01
K
0.99
0.65
0..36
0.03
0.32
0.39
0.04
0.06
0.07
0.03
0.35
0.02
0.00
37.04
40.79
0.83
11.18
0.05
0.16
0.64
1.47
0.09
0.09
0.07
1.23
0.16
6.42
5.51
0.00
L
1.19
0.54
0..62
0.06
1.17
0.16
0.07
0.05
0.08
0.09
0.63
0.06
0.08
42.15
27.70
1.95
14.11
0.17
1.54
0.99
1.60
0.03
0.10
0.11
2.03
0.27
6.95
4.92
0.01
Source: Met Engineering, 2026
Table 10-3: Selected Leach
Residue Samples
Sample
ID
Total
Cu %
Sequential
Coppers %
Sulfur
Assay
%
Copper
Deportment Mineralogy
Selected
Modal Mineralogy %
Selected
Assays %
ASCu
CNCu
CuRes
Total
S
Atacamite
Chrysocolla
Cu-
Limonite
Cu-
Clays
Other
Cu
Chalcocite
Chalcopyrite
Covellite
Quartz
K-Feldspars
Biotite
Muscovite
Carbonates
Pyrite
Iron
Oxides
Smectites
Chloride
Titanium
Calcium
Iron
Magnesium
Aluminum
Potassium
Manganese
Master
Composite
Leach Residues
J-1
0.08
0.01
0.04
0.04
0.40
0.00
0.00
0.01
0.00
0.01
0.01
0.01
0.03
41.06
32.27
1.65
14.12
0.02
0.37
0.95
2.61
0.02
0.18
0.05
1.84
0.26
6.89
5.02
0.00
J-3
0.07
0.01
0.04
0.02
0.46
0.00
0.00
0.01
0.00
0.01
0.01
0.01
0.03
43.11
30.90
1.43
13.89
0.02
0.53
1.12
2.51
0.02
0.07
0.15
1.95
0.23
7.06
5.71
0.00
K-2
0.05
0.01
0.03
0.02
0.32
0.00
0.00
0.01
0.00
0.00
0.01
0.02
0.01
42.87
38.40
0.79
10.31
0.02
0.37
0.69
1.54
0.01
0.06
0.14
1.29
0.14
6.83
6.63
0.00
L-1
0.11
0.01
0.07
0.03
1.04
0.00
0.00
0.00
0.00
0.01
0.04
0.03
0.05
42.53
30.24
1.88
14.52
0.01
1.28
0.65
1.83
0.02
0.07
0.17
2.20
0.20
7.58
5.51
0.00
Source: Met Engineering, 2026.
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10.2.1.3 Results
Two heap leach approaches were examined using
the standard column leach test methods:
■ Conventional
bacteria-assisted, weak sulfuric acid, ferric-sulfate heap leaching of mixed oxide and secondary
sulfide copper minerals (decades-old technology);
■ Newer,
but widely used in South America, chloride-assisted, weak sulfuric acid, ferric-sulfate heap
leaching of mixed oxide and secondary sulfide copper minerals (in use since the 2000s).
The conventional bacteria-assisted, weak sulfuric
acid, ferric-sulfate heap leaches were quickly found at MLI to not be practical because the high levels of naturally occurring chloride
in the mineralized material are toxic to the bacteria. Fortunately, all the bacterial column leaches transitioned into successful chloride-assisted
leaches.
All column leach tests were performed with 3
m deep beds of material using 4-inch diameter columns. The best operating parameters, evaluated at MLI, are listed below:
■ Particle
size (evaluated by bottle roll testing and by column tests): 100% passing 0.5 inches;
■ Amount
of acid applied in the cure/agglomeration step: 3 to 5 kg/t;
■ Amount
of chloride (salt) added in the cure/agglomeration step: 2.5 to 5.0 kg/t;
■ Raffinate
application rate: 8 L/h/m2;
■ Length
of the cure/agglomeration step: 7 days.
The best column leach results achieved at MLI
were 95.6% total copper recovery in 81 days of leaching on a sample containing 1.68% TCu distributed as 72% ASCu, 27% CNCu, and 1% CuRes.
These results were used to develop the follow-on
mineral process testing studies at BCR in H1 2025 to support the 2025 technical report summary. The focus of the BCR studies was on establishing
copper recoveries based on sequential coppers and/or mineralogical copper deportments by using chloride-assisted, weak-sulfuric acid,
heap leaching of mineralized material from the oxide and chalcocite mineral domains. The BCR studies were also carried out to determine
the commercial operating parameters for heap leaching, such as:
■ Salt
usage;
■ Sulfuric
acid usage;
■ Ore
cure/agglomeration practices;
■ Column
leach cycle times for an on/off leach pad design:
- Raffinate
irrigation rate and time;
- Operating
column leach moisture level;
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- Drain-down
time;
- Residual
moisture content after drain-down;
- Copper
level in the residual moisture.
■ Annual
pregnant leach solution grades;
■ Flow
rate of pregnant leach solution to solvent extraction.
METSIM modeling results were used to interpret
test results and inform the PDC in the 2025 technical report.
Nine 3 m x 0.15 m diameter column leaches were
set up using material from the master composites. All the column leaches were operated as chloride-assisted, weak-sulfuric acid heap
leaches to extract copper from copper oxides and secondary copper sulfides. Leaching was performed in an open cycle (once through solution)
format. Operating conditions were kept the same in each column leach except for the cure acid, which varied from 3 to 10 kg/t depending
on the predicted net acid consumption from earlier agitation leach tests. Irrigation times varied from 36 days on high-oxide copper samples
to 90 days on high-chalcocite samples.
All the column leaches ran in open circuit format
using a synthetic raffinate solution containing elements that mimic a mature commercial raffinate maintaining 100 g/L of chloride. The
columns all operated without any solution flow issues. Total copper extractions ranged from 80% to 97%, with most results near or above
90% (four out of nine tests were above 95%). The lower recoveries occurred within samples dominated by slower leaching chalcocite mineralogy.
The column leaches were operated in a temperature-controlled
enclosure. The temperature was kept at 30 °C to mimic expected average temperatures at the Santa Cruz Copper Project site.
The
results of the column leach program at BCR in H1 2025 assisted with the development of the column leach test program at the KCA laboratory
in Reno, Nevada (the Apollo program) started in H2 2025 and concluding in H1 2026. The Apollo test program was executed to develop operational
strategy and set basic/detailed PDC for the Project going forward. The following strategy and PDC questions were answered by the
study:
■ Leach
solution chloride levels 90-40 g/L – operating costs/capital costs/extraction;
■ With
or without ILS - Cu kinetics/extraction;
■ With
or without rest rinse - Cu kinetics/extraction;
■ Copper
level in the ILS – Cu kinetics/extraction (based on public domain information);
■ Acid
curing range (kg/t) – agglomeration;
■ Chloride
curing level (connected to leach solution chloride level) – Cu kinetics;
■ Variability
of all the above between somewhat different mining periods, mineral domains, and the effect
on leaching primary ore under these conditions:
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- Different
mining periods:
o Years
1 -3, Master Composite J (MC-J);
o LOM
Master Composite K (MC-K) without the first 3 years of mining.
- Different
domains:
o Master
Composite L (MC-L), LOM ore with a greater chalcocite domain component than the typical LOM
ore (MC-K).
The results/answers to these objectives and goals
of the Apollo program are described below from the nine 6 m x 0.152 m diameter column leach tests.
10.2.1.3.1 Copper Recovery
Total copper extraction to PLS (calculated from
the metallurgical balances from the products [residue and pregnant leach solution]) ranged from 78% to 95% with the best results between
94 and 95% (on LOM composite K and the early years composite J). The lower recoveries occurred on samples utilizing rest and rinse solution
irrigation strategies and 40 g/L chloride.
The head and sequential copper recoveries were
calculated from the size-by-size feed and tail assays. (The calculation is [1 – {tail assay / feed assay}] x 100.) The total copper
recovery calculated in this case can differ somewhat from the actual total copper recovery (reported above) calculated from the metallurgical
balance from the products (residue and pregnant leach solution), but in this test program they were the same.
■ Size-by-size
total copper recovery ranged from 78% to 95% with most recoveries above 90%;
■ Acid-soluble
copper recovery ranged from 96% to 99% with most at 99%;
■ Cyanide-soluble
copper recovery ranged from 73% to 94% with most above 87%. Lower recoveries were related
to application of rest-rinse strategies and applying 40 g/L chloride.
10.2.1.3.2 Recovery as a Function of Time
When each column leach test was completed, the
calculated total copper in the feed was determined from column leach products, copper in pregnant leach solution, and copper left unleached
in the column leach residue. The total copper value was used to derive the copper extracted for each day of leaching and an extraction
curve was constructed, as shown in Figure 10-2, for all nine column leach tests. Much of the feed copper leached from the J and
K composite leach column tests in 60 days of irrigation (over 85% extraction). The three slower leaching columns for composite L contained
higher levels of chalcocite compared to J and K, and reached 83-85% in 80 days of irrigation, except for L-3 which did not achieve 80%
extraction. The most optimally operated column leach tests for each master composite (J, K and L) are: MC-J-3: 94% TCu extraction, MC-K-2:
95% TCu extraction, and MC-L-3: 90% TCu extraction.
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Most of the column leach tests had very slow
extraction after 100 days of irrigation. There was usually a jump in extraction at the end of the cycle due to recovery of copper in
solution in the actively leaching ore. Most of the column leach tests were run with 3-5 g/L copper in the irrigation solution to promote
secondary sulfide leaching with copper chloride in the feed solution, which accounts for the significant jump in extraction at the end
when this solution was drained from the column and rinsed out with water.
Source: Met Engineering, 2026.
Figure 10-2: Copper Leach
Rate Profiles for all the MC’s
The key questions addressed by the KCA column
leach test program using 6-m deep columns are:
■ 92%
total copper recovery to cathode is achievable (including accounting for scaling factors)
for an 8 m lift height;
■ A
continuous feed of irrigation solution is favored over a rest-rinse type irrigation cycle;
■ A
chloride of 90 g/L in the irrigation solution produced noticeably higher total copper extraction
than irrigation with 40 g/L chloride;
■ Net
acid consumption is 9 kg/t of ore compared with the 2025 PFS result of 6 kg/t;
■ Salt
addition to achieve 90 g/L chloride was 0.4 kg/t of ore;
■ Ore
agglomeration with 3 kg/t sulfuric acid was good;
■ A
shorter leach period than 180-days is possible on 8 m lifts;
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■ Operating
with a feed irrigation copper tenor of 2-3 g/L copper promoted good chalcocite extraction;
■ The
active moisture content of ore under irrigation will be approximately 11% by weight;
■ Fully
solution-drained and water-rinsed leach-residue will retain approximately 7.5% moisture by
weight.
10.2.1.3.3 Effect of Particle Size on Recovery
For evaluating the effect of particle size, the
residues for each of the columns were screened and each size fraction (-0.15 through +8 mm) assayed for total copper, acid-soluble copper,
cyanide-soluble copper, and residual copper. Recoveries of total copper, acid-soluble copper, cyanide-soluble copper and residual copper
for each size fraction were calculated based on the assays of the same size fraction in the column head sample and the assays of total
copper, acid-soluble copper, cyanide-soluble copper and residual copper in the residue.
The average recoveries for total copper and cyanide-soluble
copper for each of the nine individual size fractions show that recovery increases as particle size decreases. This trend is consistent
with the shrinking core model of leaching and proper accessibility. The average recovery for acid-soluble copper for each of the nine
individual size fractions show that recovery increases only slightly as particle size decreases.
10.2.1.3.4 Copper
Recovery / Acid Consumption / Leach Cycle Time Relationship
The relationship between copper recoveries, acid
consumption, pregnant leach solution grade, and leach cycle time was evaluated for the column leach tests with the optimal operating
conditions (J-1, K-2, J-3, and L-1). The J samples are from the early years 1-3. The K sample is from the LOM ore after the early years.
And the L sample is from the LOM chalcocite-dominant ore. For the J samples, results indicated that 92% of the copper will leach out
in a 6 m column leach within 100 days. Another 30 days of leaching only increases recovery by 2% in this sample. For the K sample, results
indicated that 92% of the copper will leach out in 100 days. Another 30 days of leaching only increases recovery by 3% in this sample.
For the L sample, results indicate that 88% of the copper will leach out in a 6 m column leach within 100 days. Another 30 days of leaching
increased recovery by 2%. Most of the additional copper in the last 30 days comes from the drain down and water rinse at the end of the
cycle.
Pregnant leach solution copper levels trended
lower as the leach cycle progressed and were similar in all the sample composites during the first 50 days of the leach cycle. PLS grade
was 10 g/L copper during this period on all four column leach tests (J-1, J-3, K-2 and L-1).
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10.2.1.3.5 Key
Reagents
Chloride occurred naturally in the master composite
samples. The natural chloride level was augmented by the addition of salt in the agglomeration stage of some tests where the target chloride
was 90 g/L. METSIM modeling software was used to predict the amount of salt needed to reach 90 g/L chloride. The LOM mine composite (K) needed
0.4 kg of salt per tonne of ore.
The acid added in the cure/agglomeration was
constant at 3 kg/t of ore. Average net acid consumption on the optimally operated column leach tests (J-1, K-2 and J-3) was approximately
9 kg/t of ore.
10.2.1.4 Copper
Recovery Algorithm
The extraction results from the optimally operated
6 m columns were used to generate a recovery algorithm to predict copper recovery to cathode of leaching100% passing 9.5 mm feed material
in an 8 m lift for 220 days. The algorithm described below is based on the sequential copper recoveries to cathode and are based
on scaled extractions to PLS from those column leach tests (J-1, J-3, and K-2) shown in Table 10-4 below.
Table 10-4: Estimated
Sequential Copper Recoveries to Cathode
Type
of Copper Assay
Recovery
to Cathode (%)
ASCu
99.0
CNCu
90.3
CuRes
23.9
TCu
92.3
General equation format:
TCu Recovery to cathode = A x ASCu + B x CNCu
+ C x CuRes
Equation result:
TCu Recovery to cathode = (99.0 x ASCu + 90.3
x CNCu + 23.9 x CuRes)/(ASCu+CNCu+CuRes)
For life-of-mine processing, this equation produces
a weighted average of 92.3% TCu recovered to cathode.
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10.2.1.5 Summary
of Results
The optimally operated column leach tests (J-1,
J-3 and K-2) completed their leach cycles in 100 days, after which most of the additional recovery was achieved when irrigation was stopped,
the column was drained and the column was water rinsed. The optimally operated column leach tests had achieved 92% total copper recovery,
or higher, at 100 days.
Higher total copper recoveries can be expected
for the mineralized material with higher ratios of acid-soluble copper to total copper. When the proportion of cyanide-soluble copper
increases the total copper recovery decreases somewhat.
Chloride-assisted weak-sulfuric acid heap leaching
has a proven track record of successful application over the past two decades in South America copper mines,
providing a strong technical foundation for its application to the Santa Cruz Project and supporting its potential as a robust, established
processing approach.
10.3 Metallurgical Variability
Copper recovery
variability of the Santa Cruz ore was evaluated in the 2025 studies. The 2026 studies were focused on determining the best operating
practices to maximize recovery of copper to cathode from the early years 1-3, from the LOM ore after the early years and from the LOM
chalcocite-dominant ore. No variability was observed between early years ore and the LOM ore after the early years period. The LOM chalcocite-dominant
ore copper recovery to cathode will be slightly lower (89%) compared to the other two types of ore (92%).
Sulfuric acid usage
is the other parameter of interest for variability. Acid consumption varied slightly between the three composite samples evaluated. The
chalcocite-dominated composite (L-1) showed the lowest acid consumption at 8 kg/t, followed by the early years composite (J-3) consumption
at 10 kg/t, with the highest consumption on the LOM composite (K-1) of 11 kg/t. These are considered low levels of acid consumption compared
with leach-SX/EW operations in Arizona and worldwide.
10.4 Deleterious Elements
There are no deleterious
elements in the mineralized material or leach solution that pose a significant threat to cathode quality or Project development.
The current solvent
extraction design, with two wash stages and a loaded organic coalescer, mitigates potential damage from high-pregnant leach solution
chloride levels affecting electroplating stainless-steel blanks.
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10.5 Met Engineering Opinion
Industry-standard
studies were performed as part of process flowsheet development and facility design. Test samples are representative of the mineralization.
Subsequent production experience and focused investigations guided facility alterations and process changes.
Met Engineering
is of the opinion testwork was performed on mineralization from the Project area to support a S-K 1300 preliminary feasibility study
on the processing route and metallurgical performance. The test work results are satisfactory to support a heap leach SX/EW process design.
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11. Mineral
Resource Estimates
11.1 Deposits
The Mineral Resource
estimates for the Santa Cruz, East Ridge, and Texaco deposits are detailed in this section. The Southwest Exploration Area is not included
in the Mineral Resource estimates.
11.2 Drillhole Database
The Santa Cruz
deposit has 194,463 m of core drilling in 226 drillholes; East Ridge has 62 holes totaling 48,878 m; and Texaco has 41 drillholes totaling
35,823 m (Figure 11-1 and Table 7-4). A breakdown of the number of assays used within each Mineral Resource estimate is provided
in Table 7-5.
Source: Ivanhoe Electric, 2026
Figure 11-1:
Plan View of Santa Cruz Copper Project Diamond Drilling by Deposit
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11.3 Geological Domaining
Geological
domains were developed within the Santa Cruz Copper Project based on alteration, lithological, and mineralogical characteristics, incorporating
regional and local structural information. Local, normal fault structures separate the mineralization at the Santa Cruz, East Ridge,
and Texaco deposits. Local fault zones were created by Ivanhoe Electric using Seequent’s Leapfrog Geo™
v2023.2.3 (Leapfrog) geological software.
The Santa Cruz
deposit was divided into three primary mineralization domains: (1) leach cap, (2) weathered supergene enrichment, and (3) primary
hypogene mineralization. Each primary geological domain was further subdivided into domains and subdomains (Table 11-1). The leach
cap was added after additional drilling exhibited a continuous area of leached material distinct from the supergene domain.
Table 11-1:
Santa Cruz, East Ridge & Texaco Geological Domains
Primary
Geological Domain
Domain
Subdomain
Name
Domain
Code
Santa
Cruz Deposit
Leached
Leach
Cap
(Mostly Unmineralized, Some Acid-soluble Copper)
Low-Grade
20
Medium-Grade
21
Supergene
Enrichment
Exotic
(Tertiary-Hosted Exotic Copper)
Low-Grade
10
High-Grade
11
Verde
Domain (Mineralized)
12
Verde
Domain (Unmineralized)
13
Oxide
(Primarily Acid-soluble Copper)
Low-Grade
30
High-Grade
31
Chalcocite-Enriched
(Primarily Cyanide-soluble Copper)
Low-Grade
40
Medium-Grade
41
Hypogene
Mineralization
Primary
(Primary Sulfide Copper)
Low-Grade
50
High-Grade
51
East
Ridge Deposit
Weathered
Supergene Enrichment
Exotic
(Tertiary-Hosted Exotic Copper)
Low-Grade
341
Oxide
(Primarily Acid- and Cyanide-soluble Copper)
Low-Grade
(North)
301
Medium-Grade
(North)
311
Low-Grade
(South)
401
Medium-Grade
(South)
411
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Technical Report Summary, Santa Cruz Copper Project, Arizona
Primary
Geological Domain
Domain
Subdomain
Name
Domain
Code
Texaco
Deposit
Weathered
Supergene Enrichment
Oxide
(Primarily Acid-soluble Copper)
Low-Grade
221
Medium-Grade
222
Chalcocite-Enriched
(Primarily Cyanide-soluble Copper)
Medium-Grade
232
Hypogene
Mineralization
Primary
(Primary Sulfide Copper)
Low-Grade
211
Medium-Grade
212
The East Ridge
deposit is predominantly structurally controlled and consists of a mix of oxide and enrichment; therefore, it has fewer domains. East
Ridge is also split into the north and south domains, as no continuity has been observed between the two mineralized zones. The Texaco
deposit consists of all domains except for the leach cap and exotic domains; however, this may be refined through additional drilling.
Collectively, each
of these domains was divided into subdomains based on their individual grade profiles, which align with mineralization controls. A schematic
for Santa Cruz, East Ridge, and Texaco deposit hierarchies is outlined in Figure 11-2. The following terms, which represent a local
definition of the grade profile, are assigned to the subdomains: high-grade (“HG”), medium-grade (“MG”), and
low-grade (“LG”).
SEPTEMBER 2026 11-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Note: East Ridge is defined by exotic
and oxide domains, while Texaco is defined by oxide, chalcocite, and primary domains. Source: Ivanhoe Electric, 2026.
Figure 11-2:
Santa Cruz Primary Mineralization Domains, Domains & Subdomains
Exotic copper is
present at Santa Cruz and East Ridge deposits in varying degrees and is hosted in tertiary sediments. All other styles of copper mineralization
are hosted within the Oracle granite and intrusive dikes and terminate at the contact of the tertiary sediments. The current drilling
indicates that the basal faults within the region truncate the copper mineralization at depth.
The Oracle granite
hosts the Laramide porphyry, commonly associated with brecciation and primary copper mineralization. Secondary supergene copper mineralization
is separated vertically from the primary hypogene mineralization, occurring as the oxide and chalcocite-enriched domains. The oxide domain
is defined by an elevated (approximately 70% and greater) ratio of acid-soluble copper to total copper, while the chalcocite-enriched
domain is defined by an elevated (approximately 70% and greater) ratio of cyanide-soluble copper to total copper. High-grade copper oxides
follow the trend of the paleo-water table, as percolating meteoric water dissolved primary copper minerals and transported copper to
the water table, where copper oxide minerals precipitated due to change in pH and oxidation-reduction conditions. The
SEPTEMBER 2026 11-4
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
chalcocite enrichment
domain also follows the paleo-water table, where deposition occurred just below the water table and likely before formation of the oxide
domain. The primary domain considers the residual copper, which is the total copper minus the acid-soluble copper and cyanide-soluble
copper (i.e., residual Cu = TCu – ASCu – CNCu). The leach cap is mostly barren but has one known discrete mineralized body,
predominantly copper oxides. Figure 11-3 is a conceptual example of the Santa Cruz deposit domaining. Table 11-2 shows the
volume of the mineralized wireframes.
Note: Cross-section looking northwest,
±50 m wide. Source: Ivanhoe Electric, 2026.
Figure 11-3:
Santa Cruz Deposit Domain Idealized Cross-section
SEPTEMBER 2026 11-5
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-2:
Volume of Santa Cruz Wireframe Domains
Domain
Domain
Code
Wireframe
Volume
Santa
Cruz
Exotic
Low-Grade
10
20,062
Exotic
High-Grade
11
1,034
Exotic
– Verde
12
1,068
Leach
Cap Low-Grade
20
90,011
Leach
Cap Medium-Grade
21
989
Oxide
Low-Grade
30
95,410
Oxide
High-Grade
31
24,832
Chalcocite
Low-Grade
40
50,029
Chalcocite
Medium-Grade
41
9,452
Primary
Low-Grade
50
145,107
Primary
High-Grade
51
4,928
East
Ridge
Exotic
341
16,519
Oxide
Low-Grade – North
301
486,575
Oxide
Medium-Grade – North
311
9,148
Oxide
Low-Grade – South
401
91,805
Oxide
Medium-Grade – South
411
3,949
Texaco
Oxide
Low-Grade
221
630,350
Oxide
Medium-Grade
222
2,367
Chalcocite
Medium-Grade
232
219,277
Primary
Low-Grade
211
659,611
Primary
Medium-Grade
212
4,994
Source: Ivanhoe Electric, 2025
Mineralization
wireframes adhere to known controls on mineralization, such as the paleo water-table for supergene mineralization and dike orientation
for primary mineralization. The mineralization hosted in the Oracle granite bedrock is constrained by the bedrock interface above, and
laterally by the northwest-striking normal faults. The high-grade subdomains have a minimum thickness of 5 m and mostly constrain an
average grade of 2.0% TCu. Due to geological heterogeneity, while portions of the high-grade wireframes incorporate grades below 2.0%,
these intercepts occur along the mineralized trend. Laterally these high-grade wireframes are delineated by half the distance to the
closest external drillhole. When no nearby drilling exists, the lateral extents are constrained to approximately 30 m, or half the average
deposit drillhole spacing. Medium-grade subdomains mostly constrain an average grade of 1.0% TCu and above.
SEPTEMBER 2026 11-6
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
There is some overlap
of the chalcocite mineralization within the oxide domain, but this constitutes approximately 20% or less of the mineralization in the
domain. It is difficult to fully parse the mineralization types, as faulting, rotation, and water table fluctuation over time cause complex
overprinting of the various copper mineralization types.
Implicit
domain modeling was completed in Leapfrog Geo™ to represent known controls on high-grade and
low-grade mineralization, with explicit control lines employed to ensure a reasonable interpretation.
11.4 Data Preparation
11.4.1 Exploratory Data Analysis
The
exploratory data analysis was conducted on raw drillhole data to determine the nature of the element distribution, the correlation of
grades within domains, and the identification of high-grade outlier samples. A combination of descriptive statistics, histograms, probability
plots, and X-Y scatter plots were used to analyze the grade population of the data using Snowden Supervisor™
v9.0. The findings were used to help define modeling procedures and parameters used in the Mineral Resource estimate. Gold and silver
were added to the resource based on flotation testwork and are being considered for recovery later in the mine life. Molybdenum was removed
as it was not considered for later recovery.
Descriptive statistics
were used to analyze the grade distribution and continuity of each sample population, determine the presence of outliers, and identify
correlations between grade and rock types for each mineral subdomain.
Individual
drillhole tables (e.g., collar, survey, assay, etc.) were merged to create one single master de-surveyed drillhole file in Datamine
Studio RM™ v2.0.66.0.
Prior to grade
estimation, the data were prepared using the following methods:
1. All drillhole assays that intersected a
wireframe within each domain were assigned a set of codes representative of the domain, wireframe
number, and mineralization type.
2. The drillhole assay data were combined in
Datamine to a single static drillhole file, which was then “flagged” to intersecting
copper mineralization subdomains outlined by the wireframe coding process.
3. High-grade outlier assays in each domain
were reviewed.
SEPTEMBER 2026 11-7
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.4.2 Assay Intervals at Minimum
Detection Limits
Unsampled intervals
in the database were set to half the detection limit (“LLD”) per variable. Pending assay results were left absent, and core
loss/void zones were also left absent. Gold values were set to half LLD in modern holes and left absent in historical holes, as gold
assays were only run on select samples within ore zones.
11.4.3 Compositing
Assays captured
within all wireframes were composited to 2.0 m regular intervals based on the observed modal distribution of assay lengths. The initial
assessment used 3.0 m composites as the database was mostly historic data sampled at 3.0 m intervals. An option to use slightly variable
composite lengths was chosen to redistribute short composites at domain edges. All composite assays were generated within each mineral
domain with no overlaps along boundaries. The composite assays were validated statistically to ensure there was no loss of data or significant
change to the mean grade of each assay population.
11.4.4 Outlier Analysis &
Capping
Grade outliers
that are much higher than the general population of assays have the potential to bias (inflate) the quantity of metal estimated in a
block model. Geostatistical analysis using X-Y scatter plots, cumulative probability plots, and decile analysis was used to analyze the
composited drillhole assay data for each subdomain to determine appropriate grade capping. Statistical analysis was performed independently
on all subdomains. After thorough review of the statistics, it was determined that copper capping was not necessary for any of the deposits,
as the distribution does not contain numerous outliers, and that capping did not have a significant effect on the final resource. Compositing
helped reduce the effect of outliers. Gold capping was applied for East Ridge for values above 1 ppm.
11.4.5 Density
A total of 5,884
density measurements from 210 core drillholes exist for the Santa Cruz, East Ridge, and Texaco deposits. Measurements were calculated
using the weight in air versus the weight in water method (Archimedes).
Density values
were relatively consistent per domain, and an estimated value would be very similar to an assigned value. Values were assigned to blocks
based on subdomains per deposit. East Ridge and Texaco have sufficient sample density to assign unique values by domain. Texaco subdomains
lacked sufficient samples for unique values. Table 11-3 gives average density values for geological domains in each deposit.
SEPTEMBER 2026 11-8
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-3:
Density Values Measured for the Project by Geological and Resource Domain
Project
Lithological Units
Subdomain
Average
Density (g/cm3)
Alluvium
-
1.96
Gila
Conglomerate
-
2.18
Whitetail
Conglomerate
-
2.33
Basal
Conglomerate
-
2.39
Mafic
Conglomerate
-
2.34
Oracle
Granite (Unmineralized)
-
2.54
Santa
Cruz Domains
Subdomain
Average
Density (g/cm3)
Exotic
Low-Grade
2.36
High-Grade
2.37
Verde
2.58
Leach
Cap
Low-Grade
2.48
Medium-Grade
2.57
Oxide
Low-Grade
2.48
High-Grade
2.54
Chalcocite
Enriched
Low-Grade
2.51
Medium-Grade
2.54
Primary
Low-Grade
2.57
High-Grade
2.57
East
Ridge Domains
Subdomain
Average
Density (g/cm3)
Exotic
Low-Grade
2.38
Oxide
North
Low-Grade
2.53
North
Medium-Grade
2.56
South
Low-Grade
2.44
South
Medium-Grade
2.47
Texaco
Domains
Subdomain
Average
Density (g/cm3)
Oxide
Low-Grade
2.46
Medium-Grade
2.46
Chalcocite
Enriched
Medium-Grade
2.56
Primary
Low-Grade
2.54
Medium-Grade
2.54
SEPTEMBER 2026 11-9
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.4.6 Block Model Strategy &
Analysis
A series of upfront
test modeling was completed to define an estimation methodology to meet the following criteria:
■ Represents
the Santa Cruz Copper Project geological and structural controls;
■ Accounts
for the variability of grade, orientation, and continuity of mineralization;
■ Provides
control on the smoothing (grade spreading) of grades and the influence of outliers;
■ Accounts
for most of the mineralization within the Santa Cruz Copper Project;
■ Is
robust and repeatable within the mineral domains.
Multiple interpolation
test scenarios were evaluated to determine the optimum process and parameters to achieve the intended criteria. Each scenario was based
on nearest neighbor (“NN”), inverse distance squared (“ID2”), inverse distance cubed (“ID3”),
and ordinary kriging (“OK”) interpolation methods. All test scenarios were evaluated based on global statistical comparisons,
visual comparisons of composite assays versus block grades, swath averages, and the assessment of overall smoothing. Based on the testing
results, it was determined that the final resource estimation methodology would constrain the mineralization by using hard wireframe
boundaries to control mineralization. OK was selected as the most applicable interpolation method for the Santa Cruz deposit, and ID2
was selected for the East Ridge and Texaco deposits.
11.4.7 Assessment of Spatial Grade
Continuity
Datamine, Leapfrog,
and Snowden Supervisor were used to determine the geostatistical relationships of the Santa Cruz Copper Project. Variography was performed
on composite data for each deposit per domain (Table 11-4 to Table 11-6). Experimental variograms were calculated from the
composited assay data for each element to determine the approximate dimensions and orientations of the search ellipses.
The following were
considered for each analysis:
■ Downhole
variograms were created and modeled to define the nugget effect;
■ Experimental
semi-variograms were calculated to determine directional variograms for the major, semi-major,
and minor orientations;
■ Variograms
were modeled using an exponential model with practical range and a normalized sill of 1.
Directional variograms
were modeled using the nugget defined in the downhole variography and the ranges for the major, semi-major, and minor directions. Gold
and silver values for Santa Cruz and Texaco were estimated by ID2 for the final values.
SEPTEMBER 2026 11-10
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Variography
for East Ridge and Texaco were used for the OK estimate, which was run for validation purposes only, while variography helped inform
the ranges and orientations of search ellipses.
SEPTEMBER 2026 11-11
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Table 11-4:
Santa Cruz Variography Parameters
Domain
Variable
Rotation
Angles
Axes
Nugget
C1
Structure
1
C2
Structure
2
1
2
3
Range
1
Range
2
Range
3
Range
1
Range
2
Range
3
Exotic
Low-Grade
TCu
%
80
10
180
Z-X-Z
0.20
0.42
26
129
7
0.38
170
150
15
ASCu
%
80
10
180
Z-X-Z
0.20
0.42
26
129
7
0.38
170
150
15
CNCu
%
80
10
180
Z-X-Z
0.20
0.42
26
129
7
0.38
170
150
15
Exotic
High-Grade
TCu
%
80
10
180
Z-X-Z
0.20
0.42
26
129
7
0.38
170
150
15
ASCu
%
80
10
180
Z-X-Z
0.20
0.42
26
129
7
0.38
170
150
15
CNCu
%
80
10
180
Z-X-Z
0.20
0.42
26
129
7
0.38
170
150
15
Verde
Domain
TCu
%
115
30
165
Z-X-Z
0.20
0.38
26
97
16
0.42
120
100
30
ASCu
%
115
30
165
Z-X-Z
0.20
0.38
26
97
16
0.42
120
100
30
CNCu
%
115
30
165
Z-X-Z
0.20
0.38
26
97
16
0.42
120
100
30
Leach
Cap Low-Grade
TCu
%
60
30
165
Z-X-Z
0.20
0.37
30
20
20
0.43
200
135
60
ASCu
%
60
30
165
Z-X-Z
0.20
0.37
30
20
20
0.43
200
135
60
CNCu
%
60
30
165
Z-X-Z
0.20
0.37
30
20
20
0.43
200
135
60
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Leach
Cap Medium-Grade
TCu
%
180
150
0
Z-X-Z
0.20
0.50
22
50
10
0.30
190
100
30
ASCu
%
180
150
0
Z-X-Z
0.20
0.50
22
50
10
0.30
190
100
30
CNCu
%
180
150
0
Z-X-Z
0.20
0.66
80
50
25
0.14
150
100
30
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Oxide
Low-Grade
TCu
%
60
30
165
Z-X-Z
0.20
0.37
30
20
20
0.43
200
135
60
ASCu
%
60
30
165
Z-X-Z
0.20
0.37
30
20
20
0.43
200
135
60
CNCu
%
60
30
165
Z-X-Z
0.20
0.37
30
20
20
0.43
200
135
60
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
SEPTEMBER 2026 11-12
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Domain
Variable
Rotation
Angles
Axes
Nugget
C1
Structure
1
C2
Structure
2
1
2
3
Range
1
Range
2
Range
3
Range
1
Range
2
Range
3
Oxide
High-Grade
TCu
%
60
30
165
Z-X-Z
0.05
0.20
22
50
10
0.75
190
100
30
ASCu
%
60
30
165
Z-X-Z
0.05
0.20
22
50
10
0.75
190
100
30
CNCu
%
60
30
165
Z-X-Z
0.05
0.20
80
50
25
0.75
150
100
30
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Chalcocite
Enriched Low- Grade
TCu
%
60
45
170
Z-X-Z
0.10
0.36
199
159
59
0.54
200
160
60
ASCu
%
60
45
170
Z-X-Z
0.10
0.39
162
71
59
0.51
200
135
60
CNCu
%
60
45
170
Z-X-Z
0.10
0.36
199
159
59
0.54
200
160
60
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Chalcocite
Enriched Medium-Grade
TCu
%
60
45
170
Z-X-Z
0.20
0.67
70
134
20
0.13
190
135
45
ASCu
%
60
45
170
Z-X-Z
0.20
0.34
25
75
20
0.46
200
135
45
CNCu
%
60
45
170
Z-X-Z
0.20
0.67
70
134
20
0.13
190
135
45
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Primary
Low-Grade
TCu
%
160
140
-120
Z-X-Z
0.20
0.43
44
224
20
0.37
270
225
45
ASCu
%
160
140
-120
Z-X-Z
0.20
0.24
134
138
45
0.56
250
250
50
CNCu
%
160
140
-120
Z-X-Z
0.20
0.24
134
138
45
0.56
250
250
50
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Primary
High-Grade
TCu
%
160
140
-120
Z-X-Z
0.20
0.43
44
224
20
0.37
270
225
45
ASCu
%
160
140
-120
Z-X-Z
0.20
0.24
134
138
45
0.56
250
250
50
CNCu
%
160
140
-120
Z-X-Z
0.20
0.24
134
138
45
0.56
250
250
50
Au
ppb
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
Ag
ppm
160
140
-120
Z-X-Z
0.20
0.40
50
69
7
0.40
170
150
40
SEPTEMBER 2026 11-13
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-5:
East Ridge Variography Parameters
Domain
Variable
Rotation
Angles
Axes
Nugget
C1
Structure
1
C2
Structure
2
1
2
3
Range
1
Range
2
Range
3
Range
1
Range
2
Range
3
Oxide
Low-Grade and Medium-Grade
TCu
%
230
40
44
Z-X-Z
0.15
0.30
35
90
20
0.55
190
130
30
ASCu
%
230
40
44
Z-X-Z
0.15
0.30
35
90
20
0.55
190
130
30
CNCu
%
230
40
44
Z-X-Z
0.15
0.30
35
90
20
0.55
190
130
30
Au
ppb
230
40
44
Z-X-Z
0.15
0.30
35
90
20
0.55
190
130
30
Ag
ppm
230
40
44
Z-X-Z
0.15
0.30
35
90
20
0.55
190
130
30
Table 11-6:
Texaco Variography Parameters
Domain
Variable
Rotation
Angles
Axes
Nugget
C1
Structure
1
C2
Structure
2
1
2
3
Range
1
Range
2
Range
3
Range
1
Range
2
Range
3
Oxide
Low-Grade and Medium-Grade
TCu
%
60
8
15
Z-Y-X
0.27
0.52
144
51
85
0.20
413
111
102
ASCu
%
60
8
15
Z-Y-X
0.08
0.85
38
117
85
0.06
577
300
102
CNCu
%
60
8
15
Z-Y-X
0.09
0.45
46
103
102
0.46
251
326
210
Chalcocite
Enriched Medium-Grade
TCu
%
60
8
15
Z-Y-X
0.23
0.67
207
147
78
0.10
379
237
94
ASCu
%
60
8
15
Z-Y-X
0.08
0.46
234
99
20
0.46
357
304
94
CNCu
%
60
8
15
Z-Y-X
0.18
0.44
29
240
78
0.39
434
288
94
Primary
Low-Grade and Medium-Grade
TCu
%
145
17
-8
Z-Y-X
0.20
0.58
357
151
67
0.22
534
304
227
ASCu
%
145
17
-8
Z-Y-X
0.01
0.48
390
237
78
0.42
468
586
94
CNCu
%
145
17
-8
Z-Y-X
0.10
0.88
160
106
78
0.02
381
171
94
SEPTEMBER 2026 11-14
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.4.8 Block Model Definition
The block model
shape and size are typically a function of the geometry of the deposit, the density of assay data, drillhole spacing, and the selected
mining unit. The block model prototype parameters are listed in Table 11-7. All three deposits employed the same prototype parameters.
Table 11-7:
Block Model Definition Parameters
Item
Block
Origin
(m)
Block
Maximum
(m)
Subdomain
Block
Dimension
(m)
Low-Grade
Block
Dimension
(m)
Texaco
Low-
Grade Parent
Dimension (m)
Minimum
Sub-Block
(m)
Easting
414,200
421,500
5
10
20
2.5
Northing
3,637,800
3,644,800
5
10
20
2.5
Elevation
-1,200
500
5
5
10
2.5
The block models
were not rotated and are constrained by surface topography. The resource estimation was conducted using Datamine within the NAD 83 UTM
Zone 12 N projection grid.
11.4.9 Search Strategy
Search orientations
for each deposit were based on the shape of the modeled mineral domains and variography. Three nested searches were performed on all
domains.
Table 11-8
to Table 11-10 display the Santa Cruz, East Ridge, and Texaco search parameters, respectively. The search distances were based upon
the variography ranges outlined in Table 11-8. The search radius of the first search was based on 50% of the range of the variogram,
the second search is 80% of the range, and the third search pass is 200% of the range.
Search strategies
used an ellipsoidal search with a minimum and maximum number of composites and a maximum number of composites per hole for each block.
Blocks that did not meet these criteria do not appear in the estimate.
Gold and silver
are estimated with unique parameters as these do not have the same controls as copper throughout the deposits.
SEPTEMBER 2026 11-15
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-8:
Santa Cruz Block Model Search Parameters
Santa
Cruz Copper Project – Total Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Exotic
LG/HG
80
10
180
3
1
3
85
75
8
3
8
2
136
120
12
3
8
2
187
165
17
3
8
2
Verde
0
0
0
3
1
3
60
50
30
3
8
2
96
80
48
3
8
2
132
110
66
3
8
2
Leach
Cap LG
60
30
165
3
1
3
100
68
30
3
8
2
160
108
48
3
8
2
220
149
66
3
8
2
Leach
Cap MG
180
150
0
3
1
3
95
50
30
3
8
2
152
80
48
3
8
2
209
110
66
3
8
2
Oxide
LG
60
30
165
3
1
3
100
100
30
3
6
2
160
160
48
3
6
2
220
220
66
2
6
2
Oxide
HG
60
30
165
3
1
3
100
100
30
3
6
2
160
160
48
3
6
2
220
220
66
2
6
2
Chalcocite
LG
60
45
170
3
1
3
100
80
30
3
8
2
160
128
48
3
8
2
220
176
66
3
8
2
Chalcocite
MG
60
45
170
3
1
3
95
68
23
3
8
2
152
108
36
3
8
2
209
149
50
3
8
2
Primary
LG
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Primary
HG
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Santa
Cruz Copper Project – Acid-soluble Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Exotic
LG/HG
80
10
180
3
1
3
85
75
8
3
8
2
136
120
12
3
8
2
187
165
17
3
8
2
Verde
0
0
0
3
1
3
60
50
30
3
8
2
96
80
48
3
8
2
132
110
66
3
8
2
Leach
Cap LG
60
30
165
3
1
3
100
68
30
3
8
2
160
108
48
3
8
2
220
149
66
3
8
2
Leach
Cap MG
180
150
0
3
1
3
95
50
30
3
8
2
152
80
48
3
8
2
209
110
66
3
8
2
Oxide
LG
60
30
165
3
1
3
100
100
30
3
6
2
160
160
48
3
6
2
220
220
66
2
6
2
Oxide
HG
60
30
165
3
1
3
100
100
30
3
6
2
160
160
48
3
6
2
220
220
66
2
6
2
Chalcocite
LG
60
45
170
3
1
3
100
80
30
3
8
2
160
128
48
3
8
2
220
176
66
3
8
2
Chalcocite
MG
60
45
170
3
1
3
95
68
23
3
8
2
152
108
36
3
8
2
209
149
50
3
8
2
Primary
LG
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Primary
HG
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Santa
Cruz Copper Project – Cyanide-soluble Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Exotic
LG/HG
80
10
180
3
1
3
85
75
8
3
8
2
136
120
12
3
8
2
187
165
17
3
8
2
Verde
0
0
0
3
1
3
60
50
30
3
8
2
96
80
48
3
8
2
132
110
66
3
8
2
Leach
Cap LG
60
30
165
3
1
3
100
68
30
3
8
2
160
108
48
3
8
2
220
149
66
3
8
2
Leach
Cap MG
180
150
0
3
1
3
95
50
30
3
8
2
152
80
48
3
8
2
209
110
66
3
8
2
Oxide
LG
60
30
165
3
1
3
100
100
30
3
6
2
160
160
48
3
6
2
220
220
66
2
6
2
Oxide
HG
60
30
165
3
1
3
100
100
30
3
6
2
160
160
48
3
6
2
220
220
66
2
6
2
Chalcocite
LG
60
45
170
3
1
3
100
80
30
3
8
2
160
128
48
3
8
2
220
176
66
3
8
2
Chalcocite
MG
60
45
170
3
1
3
95
68
23
3
8
2
152
108
36
3
8
2
209
149
50
3
8
2
Primary
LG
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Primary
HG
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Santa
Cruz Copper Project – Au, Ag
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
All
Domains
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Note: LG = low-grade; MG = medium-grade
and HG = high-grade. Source: BBA, 2024.
SEPTEMBER 2026 11-16
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-9:
East Ridge Block Model Search Parameters
East
Ridge Project - Total Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Exotic
0
0
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
Oxide
North LG
240
40
0
3
1
3
100
100
50
3
8
2
160
160
80
3
8
2
220
220
110
3
8
2
Oxide
North MG
240
40
0
3
1
3
100
100
50
3
8
2
160
160
80
3
8
2
220
220
110
3
8
2
Oxide
South LG
135
25
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
Oxide
South MG
135
25
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
East
Ridge Project – Acid-soluble Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Exotic
0
0
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
Oxide
North LG
240
40
0
3
1
3
100
100
50
3
8
2
160
160
80
3
8
2
220
220
110
3
8
2
Oxide
North MG
240
40
0
3
1
3
100
100
50
3
8
2
160
160
80
3
8
2
220
220
110
3
8
2
Oxide
South LG
135
25
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
Oxide
South MG
135
25
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
East
Ridge Project – Cyanide-soluble Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Exotic
0
0
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
Oxide
North LG
240
40
0
3
1
3
100
100
50
3
8
2
160
160
80
3
8
2
220
220
110
3
8
2
Oxide
North MG
240
40
0
3
1
3
100
100
50
3
8
2
160
160
80
3
8
2
220
220
110
3
8
2
Oxide
South LG
135
25
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
Oxide
South MG
135
25
0
3
1
3
100
100
30
3
8
2
160
160
48
3
8
2
220
220
66
3
8
2
East
Ridge Project - Au, Ag
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
All
Domains
160
140
-120
3
1
3
125
125
25
3
8
2
200
200
40
3
8
2
275
275
55
3
8
2
Note: LG = low-grade; MG = medium-grade
and HG = high-grade. Source: BBA, 2024.
SEPTEMBER 2026 11-17
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-10:
Texaco Block Model Search Parameters
Texaco
Project - Total Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Oxide
LG
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Oxide
MG
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Chalcocite
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Primary
LG
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Primary
MG
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Texaco
Project – Acid-soluble Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Oxide
LG
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Oxide
MG
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Chalcocite
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Primary
LG
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Primary
MG
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Texaco
Project – Cyanide-soluble Copper
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Oxide
LG
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Oxide
MG
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Chalcocite
60
8
15
3
2
1
50
80
30
3
8
2
100
160
60
3
8
2
200
320
120
3
8
2
Primary
LG
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Primary
MG
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Texaco
Project - Au, Ag
Pass
1
Pass
2
Pass
3
Domain
Search
Rotation
Search
Axes
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Search
Distances
Number
of Samples
Rot.
1
Rot.
2
Rot.
3
Axis
1
Axis
2
Axis
3
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
Dist.
1
Dist.
2
Dist.
3
Min.
Max.
Max.
Per Hole
All
Domains
145
17
-8
3
2
1
80
80
30
3
8
2
160
160
60
3
8
2
320
320
120
3
8
2
Note: Abbreviations used in the table
are low grade (LG), medium grade (MG) and high grade (HG). Source: BBA, 2024.
SEPTEMBER 2026 11-18
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.5 Block Model Validation
The Santa Cruz
deposit block model was estimated using NN, ID2, ID3, and OK interpolation methods for global comparisons
and validation purposes. The OK method was selected for the Santa Cruz Mineral Resource estimate over ID2, ID3,
and NN because it was the most representative approach for the deposit. The East Ridge and Texaco deposit block models were estimated
using NN, ID2, ID3, and OK, and the ID2 method was selected for the Mineral Resource estimates.
The density and quantity of drilling were insufficient in East Ridge and Texaco to produce confident variography for the final estimate.
11.5.1 Statistical Comparison
The global block
model statistics by domain were compared between the OK, ID2, ID3, and NN methods and the composite drillhole
data. The results of this comparison provided validation of the final estimate compared to various estimation methods.
11.5.2 Visual Comparison
The validation
of the interpolated block model employed visual assessments and validation plots of block grades against assay grades and composites.
The result demonstrated good agreement between local block estimates and nearby samples without excessive smoothing in the block model.
Figure 11-4
to Figure 11-6 provide examples of visual block model validation, displaying total copper in the block model and drillholes, as
well as domains for Santa Cruz, East Ridge, and Texaco.
SEPTEMBER 2026 11-19
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Note: Figure shows cross-section looking northwest, ±50 m width.
Source: BBA, 2026.
Figure 11-4: Santa Cruz
Block Model Validation with Drillholes & Total Copper Percent
SEPTEMBER 2026 11-20
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Note: Figure shows cross-section looking northwest, ±50 m width.
Source: BBA, 2026.
Figure 11-5: East Ridge
Block Model Validation with Drillholes & Total Copper Percent
SEPTEMBER 2026 11-21
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Note: Figure shows cross-section looking northwest, ±50 m width.
Source: BBA, 2026.
Figure 11-6: Texaco Block
Model Validation of Total Copper Percent
SEPTEMBER 2026 11-22
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.5.3 Swath Plots
A series of swath plots were generated for total
copper, acid-soluble copper, and cyanide-soluble copper from slices throughout each deposit for various domains. They compare the block
model grades for NN, ID2, ID3, and OK to the drillhole composite grades to evaluate potential local grade
bias. A review of the swath plots did not identify bias in the model that is material to the Mineral Resource estimate. Figure 11-7
shows a swath plot for Santa Cruz high-grade oxide domain total copper as an example.
Source: BBA, 2026. Note: S_CU_PCT is sample total copper grade, M_TCUID2
is the estimated ID2 total copper grade, M_TCUID3 is the estimated ID3 total copper grade, M_TCUNN is the estimated
NN total copper grade, and M_TCUOK is the estimated OK total copper grade.
Figure 11-7: Santa Cruz
High-Grade Oxide Domain Swath Plot, Total Copper % in Y-Direction
SEPTEMBER 2026 11-23
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.6 Mineral Resource Classification
The Mineral Resource
estimate was classified in accordance with S-K 1300 definitions. Mineral Resource classifications were assigned to broad regions of the
block model based on BBA’s confidence and judgment related to geological understanding, continuity of mineralization in conjunction
with data quality, spatial continuity based on variography, estimation parameters, data density, and block model representativeness.
Indicated and Inferred
classifications were applied to Santa Cruz, East Ridge, and Texaco based on a full review that included the examination of drill spacing,
visual comparison, kriging variance, distance to the nearest composite, and search volume estimation (the estimation pass in which each
block was populated) along with the search ellipsoid ranges. Collectively, this information was used to produce an initial classification
script followed by manual wireframe application to further limit the Mineral Resource classification (Figure 11-8).
Source: BBA, 2026.
Figure 11-8:
Plan View of Resource Classification for Santa Cruz with Indicated & Inferred Classifications & Drill Collar
Locations
SEPTEMBER 2026 11-24
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Uncertainties that
could affect the Mineral Resource estimates include historical assay instrument precision, historical geological logging data quality,
and changes to the structural model. The Indicated Mineral Resource is supported by significant modern drilling, reducing the uncertainty
due to historical drill and assay data. The Inferred Mineral Resource lacks the level of geologic confidence due to the uncertainty in
areas of limited geological information.
Most of the first
search pass results were classified as Indicated, while the second search pass results were evaluated with further criteria, including
a kriging variance of 0.65 or less as well as geological confidence. The Indicated Mineral Resource has an average drillhole spacing
of 60 m. Small, internal zones of Inferred results within large swaths of Indicated results were not broken out, as these represent noise.
The third search pass results are classified as Inferred, as they represent estimates beyond the modeled spatial continuity of the values.
While most of the
East Ridge deposit is classified as Inferred, there is a small portion of Indicated Mineral Resource where dense infill and validation
drilling was completed in recent campaigns. The Indicated Mineral Resource has an average drillhole spacing of 65 m.
The Texaco deposit
is classified as Inferred, as the area is defined by historical drilling which has yet to be validated with modern drilling with >150
m spacing.
11.7 Commodity Pricing
Mineral Resources
used commodity prices based on long-term analyst and bank forecasts. In the opinion of BBA, this price is generally aligned with pricing
over the last one, three, and five years; forward-looking pricing from internationally recognized banks is appropriate for use in a resource
estimate. Section 16 provides an explanation of the commodity price forecasts. The commodity price considered three-year trailing
averages.
11.8 Reasonable Prospects of Economic
Extraction
The Mineral Resources
were estimated using Datamine to create the block models for the Santa Cruz, Texaco, and East Ridge deposits, and Deswik.CAD 2024.1 and
Deswik.SO 5.1 software to create reasonable mineable shapes.
To demonstrate
reasonable prospects for economic extraction for the Santa Cruz, East Ridge, and Texaco Mineral Resource estimates, representative minimum
mining unit shapes were created using Deswik’s mineable stope optimizer (“MSO”) tool. This MSO tool constrains and
evaluates the block model based on economic and geometric parameters (Table 11-11), thereby generating potentially mineable shapes.
SEPTEMBER 2026 11-25
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The Santa Cruz
deposit was assumed to be developed as a long-life operation consisting of an underground longhole stoping plan with some drift and fill,
and an initial mining rate of 20,000 t/d to produce a copper concentrate. East Ridge was assumed to be a longhole stoping plan at 3,500
t/d, while the Texaco deposit was assumed to be a longhole stoping plan at 7,000 t/d.
SEPTEMBER 2026 11-26
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-11:
Input Parameter Assumptions
Criteria
Unit
Santa
Cruz
20,000 t/d
Santa
Cruz
20,000 t/d
East
Ridge Exotic
340 to 590 t/d
East
Ridge
3,500 t/d
Texaco
7,000 t/d
Texaco
7,000 t/d
30 m
Longhole
30 m
Longhole
6 m
X 9 m
Drift and Fill
15 m
Longhole
30 m
Longhole
30
m Longhole
Leach
Concentrator
Leach
Leach
Leach
Concentrator
Cathode
Split
%
100.0
0.0
100.0
100.0
100.0
0.0
Concentrate
Split
%
0.0
100.0
0.0
0.0
0.0
100.0
Onsite
Costs
Mining
Costs – Direct
$/t
22.00
22.00
40.00
30.00
22.00
22.00
Processing
Costs
$/t
7.00
9.00
7.00
7.00
7.00
9.00
General &
Administrative
$/t
2.63
2.63
2.63
2.63
2.63
2.63
Onsite
Total
$/t
31.63
33.63
49.63
39.63
31.63
33.63
Rounded
NSR Cutoff
$/t
32.00
34.00
50.00
40.00
32.00
34.00
Copper
Equivalent
%
0.40
0.43
0.62
0.49
0.40
0.43
SEPTEMBER 2026 11-27
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The Mineral Resource
is comprised of all material found within the MSO wireframes generated for Santa Cruz at a cutoff of $32.00 net smelter return (“NSR”)
per tonne processed heap leach and $34.00 NSR for concentrator longhole stoping, $40.00 NSR cutoff for East Ridge longhole stoping, and
$50.00 for drift and fill, $32.00 NSR copper cutoff for heap leach, and $34.00 for concentrator for Texaco longhole stoping.
Input assumptions
per processing method are detailed in Table 11-12. Gold and silver are reported as possible commodities based on flotation testwork,
as other processing techniques may be incorporated at the Project.
Table 11-12:
Smelting Terms – Copper Concentrate Input Assumptions
Description
Unit
Value
Treatment
Charge
$/t
80.00
Copper
Refining
$/lbs
payable
0.08
Copper
Payable Chalcocite Concentrate
%
90.1
Copper
Payable Chalcopyrite Concentrate
%
96.2
Copper
Deduction (Concentrate <30%)
%
0.0
Copper
Concentrate Losses
%
0.2
Gold
Payable
%
92.0
Silver
Payable
%
90.0
Gold
Deduction
g/t
1.00
Silver
Deduction
g/t
30.00
11.9 Net Smelter Return Cutoff
The Mineral Resources
are reported at an NSR cutoff of $32.00 to $50.00 depending on deposit and type of underground production. The NSR calculation is dependent
on mineral processing.
If the acid-soluble
copper percentage is greater than 0.05%, the following leach NSR equation is used:
SEPTEMBER 2026 11-28
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
If the acid-soluble
copper percentage is less than or equal to 0.05%, the following concentrator NSR equation is used:
Where:
“%
CNCu” is percent cyanide-soluble copper
“%
CuRes” is percent residual copper, or percent total copper minus percent acid-soluble copper minus percent cyanide-soluble copper
“%
ASCu” is percent acid-soluble copper
“Au
ppb” is parts per billion of gold
“Ag
ppm” is parts per million of silver.
Residual copper
percent is a calculated value; however, analyses were completed at external laboratories that confirmed the calculated values were similar
to the analyzed values.
Copper equivalent
grade is calculated as:
11.10 Mineral Resource Estimate
The Mineral Resource
estimate is reported in-situ for the Santa Cruz, East Ridge, and Texaco deposits, including and excluding reserves, in Table 11-13
and Table 11-14. These tables are not additive.
Individual Mineral
Resource estimates for the Santa Cruz, East Ridge, and Texaco deposits are presented in Table 11-15, Table 11-16, and Table 11-17,
respectively. These tables are not additive.
Figure 11-9
shows the general location and geometry of the three deposits.
SEPTEMBER 2026 11-29
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-13:
In-situ Mineral Resource Estimate Inclusive of Mineral Reserves
for
Santa Cruz, East Ridge & Texaco
Deposit
Classification
Tonnes
(kt)
Total
Copper (%)
Acid-soluble
Copper (%)
Cyanide
Leach Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid-soluble Copper (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper (Mlbs)
Santa
Cruz
Indicated
317,709
0.95
0.48
0.30
0.17
0.027
1.62
3,017
1,517
956
543
279
16,513
6,650
Inferred
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
East
Ridge
Indicated
8,742
1.00
0.45
0.39
0.16
0.014
0.68
88
40
34
14
4
191
193
Inferred
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Texaco
Inferred
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
All
Deposits
Indicated
326,450
0.95
0.48
0.30
0.17
0.027
1.59
3,104
1,557
989
558
283
16,704
6,844
All
Deposits
Inferred
422,020
0.79
0.12
0.24
0.43
0.025
0.83
3,332
503
1,030
1,809
333
11,304
7,346
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were
independently prepared, including estimation and classification, by BBA Consultants USA LP,
and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability.
3. Mineral Resources are reported in-situ,
inclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM™ software.
5. The Mineral Resources are current at September 23,
2026.
6. Mineral Resources constrained assuming underground
mining methods for the Santa Cruz deposit are reported at an NSR cutoff of US$32.00 for heap
leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00
for heap leach and US$34.00 for concentrator; and East Ridge deposit is reported at an NSR
cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill. The cutoff reflects
the total operating costs to define reasonable prospects for economic extraction by conventional
underground mining methods. Material from within mineable shape-optimized wireframes has
been included in the Mineral Resource. Underground mineable shapes optimization parameters
include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price
of US$24.00/oz. Process costs of US$7.00 to US$9.00 per processed tonne; direct mining costs
between US$22.00 to US$40.00 per processed tonne reflecting various mining method costs (leach,
longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed
tonne, onsite processing costs between US$31.63 to US$49.63 per processed tonne, along with
variable royalties between 5.01% to 6.96% NSR, and a mining recovery of 100%.
7. Mineral Resources are estimated using metallurgical
recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper,
22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0%
for acid-soluble copper, 90% for cyanide-soluble copper, 90% for residual copper, 59% for
gold and 69% for silver.
8. Density was applied using weighted averages
by deposit subdomain.
9. Rounding as required by reporting guidelines
may result in apparent summation differences between tonnes, grade, and contained metal content.
SEPTEMBER 2026 11-30
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-14:
In-situ Mineral Resource Estimate Exclusive of Mineral Reserves for Santa Cruz, East Ridge & Texaco
Deposit
Classification
Tonnes
(kt)
Total
Copper (%)
Acid-soluble
Copper (%)
Cyanide
Leach Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid-soluble Cu (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper (Mlbs)
Santa
Cruz
Indicated
177,572
0.79
0.32
0.20
0.27
0.025
1.45
1,403
570
362
471
140
8,279
3,092
Inferred
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
East
Ridge
Indicated
4,412
0.94
0.43
0.31
0.20
0.015
0.71
41
19
14
9
2
101
91
Inferred
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Texaco
Inferred
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
All
Deposits
Indicated
181,984
0.79
0.32
0.21
0.26
0.024
1.43
1,444
589
376
480
143
8,380
3,184
All
Deposits
Inferred
422,020
0.79
0.12
0.24
0.43
0.025
0.83
3,332
503
1,030
1,809
333
11,304
7,346
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were
independently prepared, including estimation and classification, by BBA Consultants USA LP,
and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability.
3. Mineral Resources are reported in-situ,
exclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM™ software.
5. The Mineral Resources are current at September 23,
2026.
6. Mineral Resources constrained assuming underground
mining methods for the Santa Cruz deposit are reported at an NSR cutoff of US$32.00 for heap
leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00
for heap leach and US$34.00 for concentrator; and East Ridge deposit is reported at an NSR
cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill. The cutoff reflects
the total operating costs to define reasonable prospects for economic extraction by conventional
underground mining methods. Material from within mineable shape-optimized wireframes has
been included in the Mineral Resource. Underground mineable shapes optimization parameters
include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price
of US$24.00/oz. Process costs of US$7.00 to US$9.00 per processed tonne; direct mining costs
between US$22.00 to US$40.00 per processed tonne reflecting various mining method costs (leach,
longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed
tonne, onsite processing costs between US$31.63 to US$49.63 per processed tonne, along with
variable royalties between 5.01% to 6.96% NSR, and a mining recovery of 100%.
7. Mineral Resources are estimated using metallurgical
recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper,
22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0%
for acid-soluble copper, 90% for cyanide-soluble copper, 90% for residual copper, 59% for
gold and 69% for silver.
8. Density was applied using weighted averages
by deposit subdomain.
9. Rounding as required by reporting guidelines
may result in apparent summation differences between tonnes, grade, and contained metal content.
SEPTEMBER 2026 11-31
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-15:
In-situ Santa Cruz Deposit Mineral Resource Estimate Exclusive of Reserves
Classification
Domain
Tonnes
(kt)
Total
Copper (%)
Acid-soluble
Copper (%)
Cyanide
Leach Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid-soluble Cu (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper (Mlbs)
Indicated
Exotic
7,237
0.85
0.71
0.07
0.06
0.002
0.01
61
52
5
4
1
2
135
Verde
1,690
1.88
1.44
0.36
0.09
0.046
1.39
32
24
6
2
2
76
70
Leach
Cap
6,385
0.78
0.61
0.02
0.16
0.011
0.29
50
39
1
10
2
59
110
Oxide
61,299
0.83
0.64
0.16
0.03
0.028
1.35
510
394
96
20
54
2,661
1,124
Chalcocite
27,107
0.78
0.12
0.56
0.09
0.025
1.93
211
33
153
25
22
1,683
466
Primary
73,830
0.73
0.04
0.14
0.55
0.025
1.60
538
27
101
410
59
3,797
1,186
Total
177,547
0.79
0.32
0.20
0.27
0.025
1.45
1,403
570
362
471
140
8,279
3,092
Inferred
Exotic
137
0.61
0.55
0.01
0.05
0.003
0.01
1
1
0
0
0
0
2
Verde
1
0.00
0.00
0.00
0.00
0.000
0.00
0
0
0
0
0
0
0
Leach
Cap
212
0.65
0.48
0.01
0.16
0.005
0.25
1
1
0
0
0
2
3
Oxide
10,653
0.76
0.54
0.22
0.00
0.026
1.40
81
58
23
0
9
479
179
Chalcocite
1,740
0.76
0.14
0.54
0.08
0.019
1.43
13
2
9
1
1
80
29
Primary
19,256
0.70
0.03
0.11
0.56
0.018
2.05
136
6
21
108
11
1,272
299
Total
31,998
0.73
0.21
0.17
0.34
0.021
1.78
232
68
54
110
21
1,832
512
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were
independently prepared, including estimation and classification, by BBA Consultants USA LP,
and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability.
3. Mineral Resources are reported in-situ,
exclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM™ software.
5. The Mineral Resources are current at September 23,
2026.
6. Mineral Resources constrained assuming underground
mining methods for the Santa Cruz deposit are reported at an NSR cutoff of US$32.00 for heap
leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00
for heap leach and US$34.00 for concentrator; and East Ridge deposit is reported at an NSR
cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill. The cutoff reflects
the total operating costs to define reasonable prospects for economic extraction by conventional
underground mining methods. Material from within mineable shape-optimized wireframes has
been included in the Mineral Resource. Underground mineable shapes optimization parameters
include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price
of US$24.00/oz. Process costs of US$7.00 to US$9.00 per processed tonne; direct mining costs
between US$22.00 to US$40.00 per processed tonne reflecting various mining method costs (leach,
longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed
tonne, onsite processing costs between US$31.63 to US$49.63 per processed tonne, along with
variable royalties between 5.01% to 6.96% NSR, and a mining recovery of 100%.
7. Mineral Resources are estimated using metallurgical
recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper,
22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0%
for acid-soluble copper, 90% for cyanide-soluble copper, 90% for residual copper, 59% for
gold and 69% for silver.
8. Density was applied using weighted averages
by deposit subdomain.
9. Rounding as required by reporting guidelines
may result in apparent summation differences between tonnes, grade, and contained metal content.
SEPTEMBER 2026 11-32
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-16:
In-situ East Ridge Deposit Mineral Resource Estimate Exclusive of Reserves
Classification
Domain
Tonnes
(kt)
Total
Copper (%)
Acid-soluble
Copper (%)
Cyanide
Leach Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid-soluble Cu (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper (Mlbs)
Indicated
Oxide
4,412
0.94
0.43
0.31
0.20
0.015
0.71
41
19
14
9
2
101
91
Total
4,412
0.94
0.43
0.31
0.20
0.015
0.71
41
19
14
9
2
101
91
Inferred
Exotic
8,557
0.94
0.34
0.02
0.57
0.003
0.16
80
29
2
49
1
45
177
Oxide
40,120
0.89
0.47
0.14
0.28
0.007
0.45
355
187
55
113
9
577
784
Total
48,676
0.89
0.44
0.12
0.33
0.006
0.40
436
216
57
163
9
623
960
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were
independently prepared, including estimation and classification, by BBA Consultants USA LP,
and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability.
3. Mineral Resources are reported in-situ,
exclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM™ software.
5. The Mineral Resources are current at September 23,
2026.
6. Mineral Resources constrained assuming underground
mining methods for the Santa Cruz deposit are reported at an NSR cutoff of US$32.00 for heap
leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00
for heap leach and US$34.00 for concentrator; and East Ridge deposit is reported at an NSR
cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill. The cutoff reflects
the total operating costs to define reasonable prospects for economic extraction by conventional
underground mining methods. Material from within mineable shape-optimized wireframes has
been included in the Mineral Resource. Underground mineable shapes optimization parameters
include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price
of US$24.00/oz. Process costs of US$7.00 to US$9.00 per processed tonne; direct mining costs
between US$22.00 to US$40.00 per processed tonne reflecting various mining method costs (leach,
longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed
tonne, onsite processing costs between US$31.63 to US$49.63 per processed tonne, along with
variable royalties between 5.01% to 6.96% NSR, and a mining recovery of 100%.
7. Mineral Resources are estimated using metallurgical
recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper,
22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0%
for acid-soluble copper, 90% for cyanide-soluble copper, 90% for residual copper, 59% for
gold and 69% for silver.
8. Density was applied using weighted averages
by deposit subdomain.
9. Rounding as required by reporting guidelines
may result in apparent summation differences between tonnes, grade, and contained metal content.
SEPTEMBER 2026 11-33
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 11-17:
In-situ Texaco Deposit Mineral Resource Estimate
Classification
Domain
Tonnes
(kt)
Total
Copper (%)
Acid-soluble
Copper (%)
Cyanide
Leach Copper (%)
Residual
Copper (%)
Gold
(g/t)
Silver
(g/t)
Contained
Copper (kt)
Total
Acid-soluble Cu (kt)
Total
Cyanide
Cu (kt)
Total
Residual
Cu (kt)
Contained
Gold (koz)
Contained
Silver (koz)
Contained
Copper (Mlbs)
Inferred
Oxide
31,329
0.62
0.48
0.17
0.00
0.020
0.54
193
150
53
0
20
546
426
Chalcocite
74,873
0.96
0.06
0.71
0.19
0.010
0.71
717
47
529
141
25
1,719
1,580
Primary
235,143
0.75
0.01
0.14
0.59
0.032
0.90
1,754
21
338
1,395
245
6,826
3,867
Total
341,345
0.78
0.06
0.27
0.45
0.028
0.81
2,664
218
920
1,537
302
8,850
5,873
Notes on Mineral Resources:
1. The Mineral Resources in this estimate were
independently prepared, including estimation and classification, by BBA Consultants USA LP,
and are reported in accordance with the definition for Mineral Resources in S-K 1300.
2. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability.
3. Mineral Resources are reported in-situ,
exclusive of Mineral Reserves.
4. The
Mineral Resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine
Studio RM™ software.
5. The Mineral Resources are current at September 23,
2026.
6. Mineral Resources constrained assuming underground
mining methods for the Santa Cruz deposit are reported at an NSR cutoff of US$32.00 for heap
leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00
for heap leach and US$34.00 for concentrator; and East Ridge deposit is reported at an NSR
cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill. The cutoff reflects
the total operating costs to define reasonable prospects for economic extraction by conventional
underground mining methods. Material from within mineable shape-optimized wireframes has
been included in the Mineral Resource. Underground mineable shapes optimization parameters
include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price
of US$24.00/oz. Process costs of US$7.00 to US$9.00 per processed tonne; direct mining costs
between US$22.00 to US$40.00 per processed tonne reflecting various mining method costs (leach,
longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed
tonne, onsite processing costs between US$31.63 to US$49.63 per processed tonne, along with
variable royalties between 5.01% to 6.96% NSR, and a mining recovery of 100%.
7. Mineral Resources are estimated using metallurgical
recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper,
22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0%
for acid-soluble copper, 90% for cyanide-soluble copper, 90% for residual copper, 59% for
gold and 69% for silver.
8. Density was applied using weighted averages
by deposit subdomain.
9. Rounding as required by reporting guidelines
may result in apparent summation differences between tonnes, grade, and contained metal content.
SEPTEMBER 2026 11-34
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Ivanhoe
Electric, 2026
Figure 11-9:
Oblique View of Santa Cruz, East Ridge & Texaco Resources
SEPTEMBER 2026 11-35
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
11.11 Mineral Resource Sensitivity
to Reporting Cutoff
The sensitivity
of the Santa Cruz, East Ridge, and Texaco Mineral Resource estimates to copper (%) cutoff is summarized in Figure 11-10 and Figure 11-11
across all interpolation methods. The resource cutoff uses NSR, but copper equivalent cutoffs can be used for comparison.
Note: Texaco resources are classified
as Inferred, and therefore not present. Source: Ivanhoe Electric, 2026.
Figure 11-10:
Copper Cutoff Sensitivity for Santa Cruz & East Ridge – Indicated Tonnes & Grade
SEPTEMBER 2026 11-36
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Ivanhoe Electric, 2026.
Figure 11-11:
Copper Cutoff Sensitivity for Santa Cruz, East Ridge & Texaco – Inferred Tonnes & Grade
11.12 Differences in Resource Model
Iterations
The current resource
model iterations have not changed when compared to the iterations released in the 2025 PFS. Differences presented in Mineral Resources
Exclusive of Mineral Reserves are due to the addition of stopes at the top of the mine.
11.13 Factors That May Affect
Mineral Resources
Areas of uncertainty
that may materially impact the Mineral Resource estimates are as follows:
■ Changes
to long-term metal price assumptions;
■ Changes
to the input values for mining, processing, and general and administrative (“G&A”)
costs to constrain the estimate;
SEPTEMBER 2026 11-37
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
■ Changes
to local interpretations of mineralization geometry and continuity of mineralized subdomains;
■ Changes
to the density values applied to the mineralized zones;
■ Changes
to metallurgical recovery assumptions;
■ Changes
in assumptions of marketability of the final product;
■ Variations
in geotechnical, hydrogeological, and mining assumptions;
■ Changes
to assumptions with an existing agreement or new agreements;
■ Changes
to environmental, permitting, and social license assumptions;
■ Logistics
of securing and moving adequate services, labor, and supplies could be affected by epidemics,
pandemics, and other public health crises, or geopolitical influence.
11.14 BBA Opinion
BBA is not aware
of any environmental, legal, title, taxation, socioeconomic, marketing, or other relevant factors that would materially affect the estimation
of Mineral Resources that are not discussed in this report.
BBA is of the opinion
that the Mineral Resources for the Project, which were estimated using industry-accepted practices, have been prepared and reported using
S-K 1300 definitions.
Technical and economic
parameters and assumptions applied to the Mineral Resource Estimate are based on parameters received from Ivanhoe Electric and reviewed
within the BBA technical team to determine if they were appropriate. All issues relating to all relevant technical and economic factors
likely to influence the prospect of economic extraction can be resolved with further work.
SEPTEMBER 2026 11-38
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
12. Mineral
Reserve Estimate
12.1 Basis of Estimate
Underground Mineral
Reserves were estimated by BBA. Estimates were prepared for the Santa Cruz deposit, a portion of the East Ridge deposit, and the Verde
domain located within the Santa Cruz deposit. The primary mining method for both deposits employs longhole stoping without pillars, utilizing
a primary and secondary stoping sequence. Additionally, a few small lenses within the East Ridge deposit use a drift-and-fill mining
method. Stopes will be backfilled with paste backfill for the entire mine life. Indicated Mineral Resources were converted to Probable
Mineral Reserves. Inferred Mineral Resources were not converted to Mineral Reserves; however, if Inferred Mineral Resources fell within
the Mineral Reserve designs, they were assumed to have zero grade.
12.2 Underground Mine Estimates
Mineral Reserve
estimates are based on the Mineral Resource 3D block models. Stope shapes were created based on individual zone and lens geometry. Each
mining region has a distinct approach and is divided into smaller mining areas. There are two primary stoping methods used: transverse
and longitudinal, along with one drifting method known as drift-and-fill. These methods are selected based on the thickness of the ore
body and the available access routes. The majority of the ore extracted will be mined using the transverse method as discussed in Section 13.9,
Mine Design.
The Mineral Reserve
stopes were designed using Deswik Stope Optimizer (“DSO”) software. The stope optimization process was guided by economic
prospectivity and geotechnical parameters specific to the rock type, the orebody orientation and regions, and the mining sequence. The
initial DSO runs were conducted with no recovery and no dilution applied. Recovery and dilution factors were applied after the stopes
were generated to calculate the final tonnes and grade of the reserves. Mining recovery and dilution are discussed in Section 13.
Based on engineering
considerations, lower grade blocks may be included in stope designs if their development is proposed in conjunction with other blocks.
While low-grade blocks do not warrant the required development, they are considered economically viable if developed in conjunction with
the other blocks. Similarly, evaluation of extraction method or ground conditions may result in lower-grade blocks being included in
the Mineral Reserve estimate.
SEPTEMBER 2026 12-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
12.2.1 Santa Cruz
The mining approach
for the Santa Cruz region involves bulk mining. The stopes vary in size between the North and South zones and by domain (Table 12-1
and Figure 12-1).
Table 12-1:
Summary of Stope Sizes by Domain & Sequence
Domains
Geotechnical
Region
Primary
/ Secondary
(Height x Width x Length)
Chalcocite
North
P: 30 m x 12
m x 17 m
S: 30 m x 15
m x 20 m
South
P: 30 m x 15
m x 23 m
S: 30 m x 18
m x 25 m
Oxide
North
P: 30 m x 12
m x 13 m
S: 30 m x 15
m x 15 m
South
P: 30 m x 15
m x 15 m
S: 30 m x 18
m x 17 m
Source: Ivanhoe Electric, 2026
Figure 12-1:
Santa Cruz North-South Divide
SEPTEMBER 2026 12-2
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The region is divided
into several mining areas: Blocks 2, 3, and 4 (see Figure 12-2). Block 4 serves as a sill pillar, separating Blocks 2 and 3 (due
to changes in the mine plan development, Block 1 was incorporated into Block 2). The primary mining method is transverse downhole stoping,
executed in a primary-secondary sequence, with selective uphole stopes. Transverse stoping offers greater flexibility in drilling patterns,
improved visibility of drawpoints, and enhanced ore recovery. Although this method typically requires more waste development to access
multiple fronts, in Santa Cruz the main level haulage drifts and stope accesses will be developed within the orebody itself.
The main haulage
drift will run parallel to the orebody, while stope access drives are oriented perpendicular from the hanging wall to the footwall. Production
stoping will occur simultaneously at multiple locations on either side of the main haulage drift. In areas where only bottom sill access
is available, uphole drilling will be employed.
Major infrastructure
will be located near access points and main ramps, with charging stations strategically placed to ensure efficient distances from active
mining areas. Due to Santa Cruz’s irregular mineralization and significant geotechnical constraints, some areas may be mined using
a primary-primary or other modified sequence. At the end of the mine life, retreat mining will recover stopes near ore passes as they
are decommissioned along the main haulage drifts.
Source: Ivanhoe Electric, 2026
Figure 12-2:
Santa Cruz Mining Areas (looking Northeast)
SEPTEMBER 2026 12-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
12.2.2 Verde
The Verde mining
region is a mineralized area situated within the hanging wall of the Santa Cruz deposit, which will be accessed through the Santa Cruz
development (Figure 12-3). The mining will involve longitudinal primary-primary stope mining, measuring 20 m high x 15 m wide x
20 m long. Some undercut drifts will be created at the bottom of the stopes to maximize ore recovery from the area.
Source: Ivanhoe Electric, 2026
Figure 12-3:
Verde Mining Region
SEPTEMBER 2026 12-4
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
12.2.3 East Ridge
The East Ridge
mining area will use selective mining techniques that are adapted to the varying orientations of the mining areas. The mining areas of
East Ridge North 1, 2, and 3 will be primarily developed using downhole longitudinal stoping (Figure 12-4). The dimensions for these
stopes will be 15 m high x 10 m wide x 8 m long, with some additional uphole stopes as needed.
In contrast, mining
areas North 4 and 5 will employ a drift-and-fill method in increments of 5 m height due to the relatively shallow dip of the lenses in
these sections. The mining sequence for this approach will follow a retreat pattern, starting from the outside and moving toward the
center, and from the footwall to the hanging wall.
Source: Ivanhoe Electric, 2026
Figure 12-4:
East Ridge Mining Areas (looking West)
SEPTEMBER 2026 12-5
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
12.3 Net Smelter Return &
Cutoff Value
Net smelter return
represents the gross revenue generated from the sale of a refined metal product (in this case, copper cathodes) after deducting all associated
off-site costs. For a mine producing copper cathodes via heap leaching and solvent extraction / electrowinning, the traditional "smelter"
and "refining" charges inherent in concentrate sales are not applicable. Instead, the off-site deductions are specific to the
direct sale of cathodes.
The primary metal
to be produced in Santa Cruz will be copper. While byproducts of gold and silver are present, the current heap leach SX/EW process does
not recover these precious metals. As is common with polymetallic deposits, the cutoff value for Mineral Reserves is determined and expressed
in terms of NSR value per tonne.
The NSR is calculated
based on unit metal values, using representative smelter contract terms, freight costs, and forecast metal prices. The metal prices and
metallurgical recovery rates used for NSR calculations are summarized in Table 12-2. Royalties are factored into each block of the
Mineral Resource model accounted for in the cash flow model.
Table 12-2:
NSR Parameters
Product
Unit
Value
Acid
Soluble Copper Recovery
%
98.8
Cyanide
Soluble Copper Recovery
%
85.4
Residual
Copper Recovery
%
35.1
Recoverable
Copper
%
90.9
Net
Recoverable Copper
%
90.0
Copper
Price
$/lb
4.00
Mineral Reserves
are assessed using commodity prices derived from long-term forecasts from analysts and banks. According to BBA, this pricing generally
reflects the trends observed over the past one, three, and five years, and the forward-looking prices from internationally recognized
banks are deemed appropriate for reserve estimates. Section 16 offers a detailed explanation of the commodity price forecasts, which
consider a 3-year trailing average timeframe.
The Project operating
costs used as the basis for cutoff value calculations are presented in Table 12-3.
SEPTEMBER 2026 12-6
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 12-3:
Operating Costs for Cutoff Value Calculations
Criteria
Unit
Santa
Cruz
East
Ridge
East
Ridge
30
m Longhole
Drift-and-fill
15m
Longhole
Leach
Leach
Leach
Cathode
Split
%
100.00
100.00
100.00
On-site
Costs
Mining
Costs – Direct
$/t
Processed
31.00
47.05
47.05
Processing
Costs
$/t
Processed
10.32
10.32
10.32
G&A
$/t
Processed
2.63
2.63
2.63
On-site
Total
$/t
Processed
43.95
60.00
60.00
On-site
Rounded NSR Breakeven Cutoff
$/t
44.00
60.00
60.00
12.4 Mineral Reserve Estimate
Mineral Reserves
as of September 23, 2026, are summarized in Table 12-4. The point of reference for the estimate is the point of delivery to
the process facilities.
Longhole stoping,
and drift-and-fill mining methods are used in this Mineral Reserve estimate, as discussed in Section 13.9.
Production designs
are created based on the geometries relevant to the mining methods, as discussed in Section 13. Mineral Reserve estimates are based
on the Mineral Resource 3D block models. Mineable shapes are created based on individual zones and lens geometries around the production
locations that meet the NSR cutoff threshold, while also ensuring that adverse pillar geometries are not created that could become unstable,
and that mining does not cease near a problematic structure. Production locations outside the Mineral Reserve outlines are not included
in Mineral Reserves. Once designs are completed, access ramps and other supporting infrastructure are designed.
The production
design wireframes are evaluated against the model to generate tonnes and grades for each location. Internal portions of the mineralized
zones that did not meet the NSR cutoff value are treated as waste. This mineralized material could be included in the mineable shapes
and the Mineral Reserves by applying a marginal cutoff value as the material will have to be mined to gain access to other areas of the
Mineral Reserve.
Development material
below cut-off, with mineralization above 0.1% Total-Cu, is included in the mine plan.
SEPTEMBER 2026 12-7
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
A small increase
between the 2025 mineral reserve and the 2026 mineral reserve is attributed to the initial mine ramp-up and sequencing. This adjustment,
which represents and increase of approximately 2% of the contained copper, facilitated access to several stopes within the 2026 mine
plan that were not available in the 2025 mine plan.
SEPTEMBER 2026 12-8
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 12-4:
Santa Cruz Copper Project Mineral Reserve Estimate
Deposit
Classification
Tonnes
(kt)
Total
Copper (%)
Acid
Soluble
Copper (%)
Cyanide
Leach
Copper (%)
Residual
Copper (%)
Contained
Copper (kt)
Total
Acid Soluble Cu (kt)
Total
Cyanide Cu (kt)
Total
Residual Cu (kt)
Santa
Cruz
Probable
136,022
1.09
0.63
0.40
0.05
1,477
863
547
66
East
Ridge
Probable
4,107
1.03
0.46
0.44
0.13
42
19
18
5
Total
Probable
140,129
1.08
0.63
0.40
0.05
1,519
882
566
71
Notes on Mineral Reserves:
1. The Mineral Reserves in this estimate are
current to September 23, 2026, and were independently prepared, including estimation
and classification, by BBA Consultants USA LP. They are reported in accordance with the definitions
for Mineral Reserves in S-K 1300.
2. The point of reference for the estimate
is the point of delivery to the process facilities.
3. The Mineral Reserves for the Santa Cruz
and East Ridge deposits were completed using Deswik mining software. Mineral Reserves are
defined within stope designs that are prescribed by rock mechanics, considering the specific
characteristics of deposits, mineral domains, mining methods, and the mining sequence. Transverse
longhole stoping is the optimal mining method with uppers and cut & fill methods
used where appropriate. Mining will occur in blocks, extracting ore from the bottom upwards,
with paste backfill providing ground support to sustain a production rate of 20,000 tonnes
per day for the first 15 years of operation.
4. Mineral Reserves are estimated at an NSR
cutoff value of US$43.95/t for longhole stoping, and US$60.00/t for longitudinal retreat
stopes and drift-and-fill. The NSR values reflect the discrete metallurgical responses for
each Mineral Reserve block using metallurgical recoveries for heap leach of 96% for acid-soluble
copper, 83% for cyanide-soluble copper, 22% for residual copper. Underground mineable shapes
optimization parameters include a long-term copper price of US$4.00/lb.
5. Mineral Reserves account for mining loss
and dilution.
6. Mineral Reserves are a subset of the Indicated
Mineral Resource and do not include the Inferred Mineral Resource.
7. Rounding, as required by the guidelines,
may result in apparent summation differences between tonnes, grade, and contained metal content.
SEPTEMBER 2026 12-9
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
12.5 Factors That May Affect
Mineral Reserves
Mineral Reserves
are subject to risks typically associated with high-production underground longhole stoping operations. These risks could materially
impact the reserves and include, but are not limited to, the following:
■ Variations
in realized metal prices compared to initial assumptions;
■ Fluctuations
in mining, processing, and G&A costs used to determine the cutoff grade;
■ Changes
in the interpretation of mineralization geometry or the continuity of mineralized zones;
■ Modifications
to geotechnical or hydrogeological assumptions, potentially causing schedule delays, increased
dilution, or reduced recoveries;
■ Variations
in mining and metallurgical recovery rates;
■ Shifts
in long-term assumptions regarding payability, marketability, and penalty terms;
■ Alterations
in mining development or geotechnical conditions that could lead to additional unplanned
dilution;
■ Adjustments
to current mining methods where specific zones or lenses allow;
■ Assumptions
related to ongoing access to the site, retention of mineral tenure, obtaining necessary environmental,
mining, and other regulatory permits, and maintaining a social license to operate with relevant
stakeholders.
SEPTEMBER 2026 12-10
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
13. Mining
Methods
13.1 Introduction
This Report envisions
underground mining of the Santa Cruz and East Ridge deposits.
The Santa Cruz
deposit lies 480 to 940 m below the surface. For this deposit, transverse longhole stoping has been selected as the optimal mining method.
Mining will occur in blocks, extracting ore from the bottom up within each block, with paste backfill providing ground support. A sill
pillar will be mined at the end of the Project's life, and the backfill will be designed to support adjacent filled stopes without requiring
additional pillars.
Stopes in the Santa
Cruz deposit will range from 12 to 18 m in width and 10 to 17 m in length, with levels spaced 30 m apart. The Verde subdomain's stopes
will have standard dimensions of 20 m in height, 15 m in width, and 20 m in length.
The East Ridge
deposit is located 310 to 790 m below the surface, comprising several lenses and using a hybrid mining approach of longhole stoping and
drift-and-fill methods. Longhole stopes will measure 15 m x 10 m x 8 m (H x W x L), while drift-and-fill drifts will be 5 m x 5 m, with
variable lengths. Mining will begin with a 5 m x 5 m drift, followed by backfill and curing before developing adjacent drifts.
Access to the mine
will be facilitated by one large decline developed using a tunnel boring machine (“TBM”). Ore will be transported from stopes
to the surface via Load-Haul-Dump (“LHD”) vehicles, an Orepass system, and a conveyor system. The combined production average
for the Santa Cruz and East Ridge deposits is approximately 20,000 t/d.
13.2 Geotechnical Considerations
Geotechnical criteria
used in the mine optimization were provided in Section 7.3.
Geotechnical domains
(Table 13-1 and Figure 13-1) were established to reflect material deposition type and alteration characteristics. Geotechnical
domains have differing geotechnical qualities.
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Table 13-1: Geotechnical
Domains
Unit
Abbreviation
Note
Alluvium
Alv,
Uppermost unit.
Conglomerate
CGL
The conglomerate deposit is characterized vertically as the Gila conglomerate, overlying the Whitetail, basal, and mafic conglomerate horizons.
Oracle Granite
GR
Santa Cruz and East Ridge zones.
Leach Cap
LC
Santa Cruz zone.
Oxide
OX
Santa Cruz zone, Verde zone (Verde OX mineralization, within an envelope of Verde slide (SL) lithology), East Ridge zone (ERNOx_medium-grade ore zone and ERNOx_low-grade host rock).
Chalcocite
CN
Santa Cruz zone.
Primary
PR
Santa Cruz zone.
Faults
(Weak or Shear Zones) and D2 Fault Zone
Santa Cruz zone.
Secondary Lithologies
Diabase and undifferentiated porphyry units.
Source: Ivanhoe Electric, 2026
Figure 13-1: Santa Cruz
Geotechnical Domain Profile, North-South Section, looking East
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13.3 Mining Zones
The Santa Cruz Copper Project will consist of
three mining zones: Santa Cruz, Verde, and East Ridge (Figure 13-2). The Santa Cruz zone represents the main area of mine production.
The Santa Cruz zone is divided structurally into north and south regions (refer to Figure 12-1).
Groundwater inflows are encountered across the
Santa Cruz area, with magnitude and frequency varying by geotechnical and hydrogeological domains. The groundwater inflow risk to mining
operations has been mitigated by maintaining a minimum 5 m offset between production areas and high-risk hydrogeological domains, including
the primary zone, Gila conglomerate, leach cap, and the D2 fault zone.
Source: Ivanhoe Electric, 2026
Figure 13-2: Mining Infrastructure and
Stopes of Santa Cruz Copper Project
(Top View looking North)
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13.4 Ground Support
Ground control measures will be implemented systematically
to protect personnel and equipment, limit dilution and overbreak, and stabilize weak rock masses, particularly within identified high-risk
domains.
The TBM decline development will be supported
using interconnecting reinforced concrete ring segments, each 1.524 m in length and 0.406 m thick. The segmental lining will incorporate
sealed joints and mechanical connectors to provide permanent ground support and water ingress control. The annular space between the lining
and excavated profile will be grouted as the TBM advances to provide continuous ground contact and confinement. In designated water-pressure
relief areas, pea gravel will be placed into the annular space providing a flow path to allow controlled drainage and limit pressure on
the exterior of the lining.
The Ground Support Categories, including their
selection criteria, are described and summarized in Table 13-2 and Table 13-3, for conventional (drill & blast) and
Roadheader development techniques respectively. An example of a bolting pattern, specifically Support Category 1 for nominal 5.5 m x 5.5
m (W x H) development, is shown in Figure 13-3.
Source: BBA, 2026
Figure 13-3: Bolting Pattern Associated
with Conventional (Drill & Blast)
Development, Support Category
1
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Primary (first-pass) support will be installed
as part of the excavation advance cycle and will support and reinforce the surrounding rock mass.
Shotcrete will be applied over the mesh for excavations
needed for long-term installations and for Support Categories 1S, 2S, and 3. Support Category 4 will begin with an initial layer of fiber-reinforced
shotcrete, followed by welded wire mesh, rebar bolts and lattice girders which are then encased with standard shotcrete.
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Table 13-2: Ground Support
Categories for Conventional (Drill & Blast) Development
Support
Category
Q
Value
Estimated
RMR76\GSI
Lithological
Domain
Advance
Length
Ground
Support description
Category 12
> 2.0
> 50
Oxide, Chalcocite, Verde, Oracle Granite
4.0 m (13 ft)
2.4 m long #7 rebar bolts on 1.2 m x 1.2 m (4 ft x 4 ft) pattern, with welded wire mesh (100 mm / 6 Ga.) to within 1.5 m of sill.
Category 1 (Shotcrete)
Decline Development
Optional (non-systematic) application of 50 mm (2″) shotcrete over welded wire mesh; as local rock mass conditions require.
Category 2 2
0.7 - 2.0
41 - 50
Primary, Lower Range Oxide, Chalcocite, Verde, Oracle Granite
3.0 m (10 ft)
2.4 m long #7 rebar bolts on a 1.2 m x 0.8 m (4 ft x 2.5 ft) pattern, with welded wire mesh (100 mm / 6 Ga.) to within 1.5 m of sill.
Category 2 (Shotcrete)
Decline Development
Optional (non-systematic) application of 50 mm (2″) shotcrete over welded wire mesh; as local rock mass conditions require.
Category 31,2
0.07 - 0.7
20 - 40
Fault Seams/Zones,
Leach Cap
2.0 m (6.5 ft)
50 mm (2″) shotcrete down to sill, install welded wire mesh (100 mm / 6 Ga.) to within 1.0 m of sill with 2.4 m long #7 rebar bolts on a 1.2 m x 0.8 m (4 ft x 2.5 ft) pattern, apply 50 mm (2”) of shotcrete to sill.
Category 41,2
< 0.07
< 20
Development Connection from Sed. Zone into Hard Rock (Oxide, Chalcocite, Verde, Oracle Granite). Development through faults
1.5 m (5 ft)
75 mm (3″) of fiber-reinforced shotcrete (“FRS”)
down to the sill, followed by 6 Ga. Welded wire mesh to within 1.0 m of sill with 2.4 m long #7 rebar bolts on 1.2 m x 0.8 m pattern.
Install #7 rebar lattice girders, spaced 2.4 m apart, and encased
in 150 mm (6″) standard shotcrete. Spiling (forepoling) pre-support may be required.
Notes:
1. Due to potentially limited excavation stand-up time, Support Category 3 and Support Category 4 are to be installed with minimum delay
(typically immediately following completion of drift blast and mucking cycle).
2. Install galvanized weldmesh screen in permanent development. Non-galvanized (“black”) weldmesh can be used in temporary
development.
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Table 13-3: Ground Support
Categories for Roadheader Development
Support
Category
Q
value
Anticipated
Visual Indications of Rock Mass Stability (Example)
Advance
Length
Ground
Support Description & Sequence
RH 12
> 2.0
(GSI >50)
Smooth excavation surface, minimal (minor) structural disturbance.
7 m
50 mm (2”) shotcrete down to sill, welded wire mesh (100 mm / 6 Ga) to within 1.5 m of sill with 2.4 m long #7 rebar bolts on 1.2 m x 1.2 m (4 ft x 4 ft) pattern.
RH 22
0.7 - 2.0
(GSI 41 – 50)
Irregular to smooth excavation surface, release of localized rock blocks (kinematic (wedge) instability).
7 m
50 mm (2”) shotcrete down to sill, welded wire mesh (100 mm / 6 Ga) to within 1.5 m of sill with 2.4 m long #7 rebar bolts on 1.2 m x 0.8 m pattern.
RH 31,2
0.07 - 0.7
(GSI 20 – 40)
Over-excavation of roadheader profile due to rock mass instability
and the presence of weak rock seams (example: fault zones).
Risk of unravelling if left unsupported for 72 hours following initial
excavation.
7 m
50 mm (2”) shotcrete down to sill, welded wire mesh (100 mm / 6 Ga) to within 1.0 m of sill with 2.4 m long #7 rebar on 1.2 m x 0.8 m (4 ft x 2.5 ft) pattern, followed by 50mm (2”) of shotcrete down to sill.
RH 41,2
< 0.07
(GSI <20)
Over-excavation of roadheader profile due to rock mass instability.
Risk of unravelling/caving if left unsupported for 24 hours following
initial excavation.
Presence of fault.
4 m
75 mm (3”) of FRS down to sill, welded wire mesh (100 mm / 6 Ga) to within 1.0 m of sill with 2.4 m long #7 rebar bolts on 1.2 m x 0.8 m pattern, followed by #7 rebar lattice girders spaced 2.4 m apart and encased in 150 mm (6”) of shotcrete. Spiling (forepoling) pre-support as required.
Notes:
1. Due to limited excavation stand-up time, Support Category RH 3 and Support Category RH 4 are to be installed with minimum delay, (typically
immediately following completion of drift advance and mucking cycle).
2. Install galvanized weldmesh screen in permanent development. Non-galvanized (“black”) Weldmesh can be used in temporary
development.
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13.5 Secondary Support
Secondary ground support will be required to support
and reinforce stope brows. Brow support will consist of three parallel rings of cablebolts spaced approximately 2.5 m apart. The initial
cablebolt ring will be located approximately 2 m from the planned stope brow.
Systematic cablebolting of the secondary ore drifts
is likely required due to wedge potential, reduced rock mass quality, and/or rock mass relaxation (stress relief) at the stope sill horizon.
Cablebolting of secondary stopes drifts may require installation of 0-Gauge weldmesh straps (“screen straps”) oriented across
the drift, with tensioned bearing plates.
13.6 Boxcut & Decline Access
The TBM portal and decline will have an excavated
diameter of 9.260 m and a lined inside diameter of 8.128 m and will begin from a 30 m deep trapezoidal boxcut. The boxcut will be approximately
302 m in length, have a maximum width of 188 m and flat base of 20 m. The boxcut ramp grade will transition from horizontal to a maximum
of 16%. The distance to the portal entrance from the start of the boxcut ramp will be 240 m.
13.7 Groundwater
A discussion on groundwater is provided in Section 7.4.
13.7.1 Faults & Grouting Program
The fault zones of the Santa Cruz Copper Project
are zones of high hydraulic conductivity with generally less competent rock mass characteristics.
A grouting program has been developed to address
water-bearing fault zones during mine development. Toward the end of mine life a pressure grouting campaign, focusing on critical locations
in and around water bearing fault zones, will be necessary to mitigate the risk of increased water ingress and allow the safe extraction
of the level access remnant pillars within each Santa Cruz mining area.
13.7.2 Ramp Dewatering
During initial tunnel-boring operations, dewatering
will be accomplished using a series of pump boxes in a daisy-chain arrangement, each equipped with two (duty and standby) submersible
pumps. The pump boxes will be installed on elevated platforms along one side of the decline. The temporary dewatering system has been
designed with a capacity of 31.5 L/s (500 USGPM),
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equivalent to that of the tunnel boring machine. Once Major Pump Station-1 on the 600L
is established and commissioned, residual inflows from the decline will gravity-drain to this location and be pumped directly to surface.
After the tunnel boring machine completes operation
on the 510 Level (510L), a major pump station and de-grit plant will be established to support subsequent mine-development activities
and ahead of construction of the remaining permanent major pump stations. As mine development advances, temporary dewatering sumps will
be established on each mining level, with duty/standby submersible pumps configured to collect and transfer accumulated mine water to
the designated major pump station in a daisy-chain configuration.
Temporary sumps will be decommissioned as the
permanent pump station infrastructure becomes operational. On levels where permanent level sumps are planned, those sumps will be used
to support both temporary and permanent dewatering activities, reducing the need for separate temporary installations.
13.7.3 Mining Area Dewatering
Peak maximum inflow during the mine life is expected
to be approximately 454 L/s (7,200 USGPM). Typically, water on mine levels will flow in ditches along level development, driven at a 2%
gradient, to a gravity sump near the level entrance. Gravity sumps will use twin boreholes to gravity transfer water to the sump on the
level below. On levels and locations in the mine where gravity flow cannot be achieved, level sumps will be developed. These level sumps
will be set up as dirty water systems, utilizing well-style sumps with submersible pumps. Each level includes two well style-sumps and
submersible pumps for redundancy.
De-grit plants will be installed on levels directly
above the major and minor pumping stations. Water from these levels, and water gravity fed to them from above, will be collected and pumped
to the de-grit plants which are rated to handle peak anticipated loads. Filtered water will pass directly to the live well of the pumping
station below via cased boreholes, twinned for redundancy. Solids removed from the water will be stockpiled for later removal and disposal
using a bucket loader.
The major and minor pump stations will include
two multi-stage centrifugal pumps, each rated for peak inflows with a 25% surge capacity. Pumps will be arranged in a duty/standby configuration.
The pumps will be fed by flooded suction using a live sump contained behind a concrete dam wall. The live sump is sized to optimize the
pump cycle times. On main collection levels, major/minor pump stations will have a large excavation sized for 6 hours of peak water inflows
specific to each station location.
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Mine water will be pumped from the major/minor
pump stations to surface via cased boreholes. For pump stations located deep within the mine, intermediate pump stations will be used
to limit borehole lengths.
Major pump station locations for the Santa Cruz
orebody have been strategically placed based on mining production horizons and schedule. Water inflows from the Verde orebody have been
accounted for in the design of the Santa Cruz dewatering infrastructure. On horizons with high dewatering inflows, two major/minor pump
stations have been included to mitigate risks resulting from a failure at any single pump station in the system.
The switchback conveyor declines will be fitted
with dedicated high-capacity dewatering infrastructure to manage the anticipated inflows in this area. During development of the switchback
conveyor declines, temporary dewatering sumps, equipped with duty/standby submersible pumps, will be installed in a daisy-chain configuration
to manage inflows.
At the turning point of the switchback, where
the two conveyor decline sections intersect, permanent skid-mounted dirty-water pump systems will be installed. Each system will comprise
a compact pump box with an agitator, and duty/standby horizontal centrifugal pumps. Along the lower decline section, the temporary pumps
will remain in place as permanent infrastructure, to transfer collected water to the skid-mounted dewatering pump systems. The dewatering
system of the East Ridge orebody will be independent from that of the Santa Cruz orebody. In the East Ridge orebody, level sumps/minor
pump stations will be located at the bottom of each mining horizon and will feed one dedicated major pump station to surface.
13.8 Mining Areas
13.8.1 Dilution
In the longhole stopes and cut-and-fill mining
areas, the planned excavation shapes do not always perfectly align with the mineralized outlines. Due to the tabular nature of the Santa
Cruz orebody, internal stopes may experience unplanned dilution from adjacent mineralized stopes or backfilled stopes.
In the case of the East Ridge orebody, the mineralization
is also tabular, and for most zones within this deposit, external dilution consists of uneconomic material from the periphery of the mining
block. Therefore, internal dilution (or planned dilution) in the East Ridge mining region primarily depends on the geometry of the orebody
and the pre-determined minimum mining width. This type of dilution is predominantly observed in longitudinal stopes. Dilution may be controlled
and/or minimized through suitable blasting practices.
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The dilution percentage is defined as tonnes of
dilution material divided by tonnes of mineralized material, as follows:
13.8.2 Longhole Stoping Dilution
Longhole stopes have a fixed height of 30 m in
the Santa Cruz orebody, 15 m in East Ridge, and 20 m in the Verde domain. These stope heights also dictate the sublevel spacing in each
orebody.
Primary stopes in both orebodies include internal
dilution, and all stopes include unplanned dilution from adjacent stopes that have been previously mined and backfilled.
A primary (planned) dilution of 3% was applied
to all longhole stopes. A secondary (unplanned) dilution of 9% was applied for longhole stoping. Dilution is expected primarily from stope
walls adjacent to paste backfill with 3% for primary stopes with a single face and 9% for secondary stopes with three faces.
13.8.3 Drift-and-Fill Dilution
The minimum mining width for drift-and-fill mining
in East Ridge is 5 m. Drift-and-fill development contains limited internal dilution within the proposed mining shapes on the perimeter
of the target zone of mineralization. A dilution of 5% was applied to drift-and-fill production shapes.
13.8.4 Mining Recovery Factor
Mining recoveries and dilution percentages were
selected based on geotechnical considerations, empirical methods, data from operating underground mines in the region, and BBA subject
matter expertise.
Table 13-4 summarizes the forecasted mining
recoveries by orebody and stope type.
Table 13-4: Summary of
Mining Recoveries by Stope Type
Stope
Type
Mining
Recovery
Santa Cruz / Verde – Downhole Stopes
94%
All Uphole Stopes
85%
All Sill Pillar Stopes
40%
East Ridge – Drift-and-Fill
94%
East Ridge – Downhole Stopes
90%
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13.8.5 Development Allowance
An additional development allowance of 5% was
added to all underground mine development including level accesses, main level haulage drives, remucks, ramps, conveyor levels, and roadheader
pulloffs to account for back slashes, side slashes, and additional infrastructure excavations that may be added in medium-range and short-range
mine design.
13.9 Mine Design
An overview of the Santa Cruz Copper Project mining
zones is shown in Figure 13-2.
13.9.1 Santa Cruz Orebody – Transverse Longhole Stoping
Longhole stopes at the Santa Cruz orebody will
vary in size between the orebody and geotechnical region. A summary of these varying stope dimensions is shown in Table 13-5.
Table 13-5: Santa Cruz
Orebody Stope Sizes
Domain
Geotechnical
Region
Stope
Dimensions
(P: Primary S: Secondary, Height x Width x Length)
Cyanide
North
P: 30 m x 12 m x 17 m
S: 30 m x 15 m x 20 m
South
P: 30 m x 15 m x 23 m
S: 30 m x 18 m x 25 m
Oxide
North
P: 30 m x 12 m x 13 m
S: 30 m x 15 m x 15 m
South
P: 30 m x 15 m x 15 m
S: 30 m x 18 m x 17 m
Each downhole stope will have a 5 m x 5 m (W x
H) access drift above the stope shape and one within the stope at the bottom. For these stopes, production drilling will be downward from
the upper access drift, with the lower access serving only as a draw-point. Once the stopes on one level have been mined and backfilled,
the former drilling horizon will become the draw point for the stope immediately above it.
Upper stopes will be employed in certain locations.
These stopes will have a single 5 m x 5 m (W x H) access drift at the bottom of the stope shape, which will be utilized for both drilling
and mucking activities. These stopes have been assigned a lower mining recovery factor.
Transverse stopes will be perpendicular (transverse)
to the strike of the orebody (Figure 13-4).
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Source: BBA, 2026
Figure 13-4: Transverse Longhole Stoping
in the Santa Cruz Orebody
(looking Southwest)
Access drifts will be driven from the central
main level drifts, and stopes will be mined across the full width of the orebody. Primary stopes will be mined first, leaving unmined
ore (secondary stopes) between them for support. Once a primary stope is mined out, it will be backfilled with paste backfill to provide
structural support. After the paste backfill has cured and reached the required strength, adjacent secondary stopes can be mined, using
the filled primary stopes as stable walls.
After ore extraction, a plug of high-binder paste
backfill will be placed first, followed by mass fill with a lower binder content. The paste backfill will be allowed to cure, reaching
sufficient strength to act as a working platform and to support subsequent mining operations. Paste backfill strength will be verified
through paste backfill sampling and laboratory testing before advancing to the next mining phase.
Transverse longhole stoping in the Santa Cruz
orebody will follow a lateral and vertical chevron primary-secondary mining sequence, retreating from the hanging wall. A paste backfill
plant on surface and an underground reticulation system will supply paste to backfill open stopes. A central main level drive with perpendicular
stope cuts to the northeast and southwest will be used to access production stopes. This central access design helps achieve the 20,000
to 22,000 t/d average production rate by increasing the quantity of available stoping locations.
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13.9.2 Verde Orebody – Longhole Stoping
The Verde orebody levels will be accessed via
the Santa Cruz mine levels at similar elevations. Verde orebody access will pass through a sedimentary conglomerate zone where a grouting
program will be required to reduce water inflow. Due to the challenging geological setting, development in Verde will be limited to main
access drifts and top and bottom stope cuts. The infrastructure required to support mining of this orebody, such as sumps and electrical
stations, will be located in the adjacent Santa Cruz ore body levels.
Maximum stope dimensions for the Verde orebody
will be 20 m x 15 m x 20 m (H x W x L).
13.9.3 East Ridge Orebody– Longitudinal Longhole Stoping
Portions of the East Ridge orebody where the hanging
wall dip is greater than 55° will be mined using the longitudinal stoping mining method, with stope dimensions of 15 m x 10 m x 8
m (H x W x L). Areas with a hanging wall dip less than 55° will be mined using the drift-and-fill mining method
Longitudinal stoping is an underground mining
technique primarily used for narrow to moderately wide, steeply-dipping orebodies (Figure 13-5).
In this method, stopes are developed parallel
to the strike of the orebody, allowing for continuous extraction along the orebody’s length. The orebody is divided into longitudinal
panels along its strike. Each panel is mined sequentially from the outer limit of the orebody toward the central access drift in an overhand
fashion (upward from the bottom of the orebody).
Stopes are filled with paste backfill once ore
extraction is complete, and allowed to cure before the adjacent stope can be blasted. Longitudinal stoping with paste backfill is particularly
effective for narrow vein orebodies with steep dips, as present in certain lenses of East Ridge.
The East Ridge orebody also contains zones suitable
for transverse longhole stoping, like the Santa Cruz orebody, where the orebody geometry is sufficiently wide for this approach.
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Source: BBA, 2026
Figure 13-5: Longitudinal Longhole Stoping
in East Ridge Zone
(looking Northwest – Not
to Scale)
13.9.4 East Ridge – Drift-and-Fill
Overhand drift-and-fill mining is an underground
mining technique used to mine orebodies that have width and dip that are not suitable for longhole stoping, irregular, or weakly consolidated.
This method involves mining horizontal drifts along the strike of the orebody, starting from the lowest level, and progressing upwards
(Figure 13-6). After each drift is mined out, the resulting void will be filled with paste backfill before the adjacent drift is
mined. Once all the drifts in a cut are completed and filled, mining progresses upward to the next cut.
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Figure 13-6: Drift-and-Fill Mining in
the East Ridge Zone
(looking Northwest – Not
to Scale)
Due to the challenging ground conditions present
at East Ridge, drift-and-fill mining offers several advantages for specific lenses. These advantages include smaller open spans during
mining, sequential backfilling to maintain ground stability and selective mining for the challenging orebody geometry. The selective nature
of drift-and-fill mining minimizes dilution and maximizes ore recovery.
13.9.5 Development
The main access decline from surface will be excavated
using a Crossover Rock/Earth Pressure Balance (“EPB”) tunnel boring machine. This type of TBM is unique in that it can maintain
a pressurized chamber behind the cutting head which will serve to support poorly consolidated material and reduce water ingress into the
excavation.
The TBM will install a reinforced, segmented concrete
liner in the decline as it advances, as well as an invert segment that will provide the flat surface on which the TBM, and later the mine’s
mobile equipment, will travel. A section view of the TBM decline, with critical dimensions, is shown in Figure 13-7.
Cuttings from the excavation process will be transported
to surface by a fixed conveyor belt system that will extend from within the TBM. This conveyor system will, with modifications, later
become a vital link in the mines ore handling system, carrying all mine production material to the surface stockpiles. As primary mine
access is provided by a single decline, Shaft 3 will be equipped with an emergency egress hoist to provide a secondary means of egress.
The hoist will be rated to transport two people per trip.
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Figure 13-7: Section View of TBM
Decline Excavation
(All units shown are in meters)
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Conventional drill and blast development is planned
for internal ramps and mine level development in the Santa Cruz, Verde, and East Ridge orebodies. Drill and blast methods allow for higher
productivity in multiple heading scenarios and for equipment to operate in tighter radius turns. Strategic lateral development of conveyor
levels, ore haulage levels, early ramp development, and a main haulage level will be performed by roadheader development crews operating
in single headings to support lateral advance rates. Table 13-6 summarizes the lateral and vertical development dimensions.
Table 13-6: Santa Cruz
Mine Lateral & Vertical Development Dimensions
Development
Activity
Dimensions
Lateral
Development
Main
Access - TBM Decline
9.3
mÆ
Infrastructure
Batch
Plant Storage, Electrical – Battery Charge Station, Electrical – Conveyor Switchroom, Electrical – Mine Switchroom,
Electrical – Power Substation, Electrical – Primary Switchroom, Electrical – Pump Switchroom, Electrical –
Secondary Switchroom, Electrical – Temporary Switchroom, Latrine, Magazine – Caps, Magazine – Powder, Orepass Access,
Remuck, Services Station, Stope Cut, Storage – Ballast, Storage – Construction, Storage – Development, Sump –
Level, Sump – Pump Room, Vent Access, De-grit Plant.
Arch
5.0 mW x 5.0 mH
Electrical
– Conveyor Switchroom, Electrical – Primary Switchroom, Electrical – Temporary Switchroom, Vent Access
Arch
5.0 mW x 5.5 mH
Ore
Pass Access, Sump – Pump Room
ARCH
5.5mW X 5.5mH
Vent
Access
Arch
6.0 mW x 6.0 mH
Conveyor
Level, Roadheader Pulloff
Arch
5.5 mW x 5.0 mH
Level
Access, Main Level Haulage Drive, Ore Haulage Level, Ramp, Refueling Station
Arch
5.0 mW x 5.5 mH
Refuge
Station, Permanent Pump Station, Ore Pass Access
Arch
6.0 mW x 5.0 mH
Sump
– Level
Arch
5.0 mW x 6.67 mH
Sump
– Pump Room
Arch
6.5 mW x 6.5 mH
Sump
– Pump Room
Arch
5.5 mW x 5.5 mH
Sump
– Pump Room
Arch
7.5 mW x 8.5 mH
Electrical
Hole Receiving Station
Arch
6.0 mW x 5.0 mH
Local
control Station
ARCH
5.0mW X 4.0mH
Temp
Sump Cutout
Arch
5.0 mW x 5.32 mH
SEPTEMBER 2026 13-18
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Development
Activity
Dimensions
Vertical
Development
Orepass,
Vent Raise
Round
3.0 m Diameter
Orepass
Square
6.0m x 7.0m
Vent
Shafts (Blind Bore Development)X 3
Round
6.4 m Diameter
Vent
Raise
Round
4.0 m Diameter
Vent
Raise
Round
5.0 m Diameter
Hole
– Dewatering (Gravity ER)
Round
0.15 m (6")*
Hole
– Dewatering (Gravity SC)
Round
0.25 m (10")*
Hole
– Dewatering (Surface)
Round
0.41 m (16”)*
Hole
– Process Water, Hole – Compressed Air (Surface)
Round
0.41 m (16")*
Hole
– Electrical (Surface)
Round
0.37 m (14.75")*
Hole
– Dewatering, Hole – Paste backfill
Round
0.44 m (17.5")*
Note: * Based on the final groundwater model, service-hole diameters
shown in the mine model may not reflect the final design; final diameters are captured in the cost model.
13.10 Production Schedule
The Santa Cruz life-of-mine is expected to be
24 years, from 2029 to 2052, following approximately 2.5 years of construction. Figure 13-8 and Table 13-7 show the production
included in the mine plan. Remnant stopes will have higher associated mining costs due to operational challenges as well as higher dilution
rates and lower recovery. The “Ore” column represents the total development and production ore for Santa Cruz, Verde, and
East Ridge orebodies. Figure 13-9 shows tonnes of material mined over the life of mine from the orebodies and development.
SEPTEMBER 2026 13-19
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: BBA, 2026
Figure 13-8: Santa Cruz
Tonne – Grade Graph
SEPTEMBER 2026 13-20
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Table 13-7: Santa Cruz
Production Summary
Year
Ore
(kt)
Total
Copper
(%)
CNCu
(%)
AsCu
(%)
Cu_Res
(%)
Ratio
ASCU:TCU
2027
0
0.00
0.00
0.00
0.00
-
2028
101
0.54
0.13
0.44
0.00
0.82
2029
1,403
0.82
0.13
0.56
0.12
0.69
2030
4,684
1.37
0.22
1.09
0.05
0.80
2031
6,819
1.23
0.34
0.86
0.04
0.70
2032
7,286
1.10
0.47
0.58
0.05
0.53
2033
7,155
1.17
0.55
0.59
0.03
0.50
2034
7,245
1.16
0.49
0.62
0.04
0.54
2035
7,775
1.07
0.43
0.60
0.04
0.56
2036
7,679
1.09
0.31
0.75
0.03
0.69
2037
7,850
0.98
0.28
0.67
0.03
0.68
2038
8,003
1.02
0.31
0.66
0.05
0.65
2039
7,804
1.08
0.48
0.55
0.05
0.51
2040
7,105
1.18
0.64
0.45
0.09
0.38
2041
7,210
1.16
0.59
0.49
0.08
0.42
2042
7,672
1.09
0.48
0.57
0.05
0.52
2043
8,011
1.01
0.41
0.57
0.03
0.56
2044
7,447
1.01
0.32
0.62
0.08
0.00
2045
3,315
0.93
0.24
0.64
0.05
0.00
2046
3,625
0.98
0.49
0.46
0.03
0.47
2047
3,706
1.10
0.40
0.67
0.03
0.61
2048
3,647
1.02
0.27
0.68
0.07
0.66
2049
3,742
1.02
0.28
0.70
0.04
0.68
2050
3,659
1.05
0.39
0.58
0.07
0.55
2051
3,648
0.97
0.42
0.50
0.05
0.52
2052
3,537
1.03
0.21
0.74
0.08
0.72
Total
140,129
1.08
0.40
0.63
0.05
-
SEPTEMBER 2026 13-21
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: BBA, 2026
Figure 13-9: Santa Cruz
Tonnes of Mined Material
13.11 Mining Operations
13.11.1 Capital vs. Operating Development
Santa Cruz mine development will be achieved through
a combination of mining contractors and Ivanhoe Electric personnel for both capital and operating development and production (Figure 13-10).
Contractor mining companies will bring experienced
personnel and offer a short ramp-up period during early stages of the Project. Contractor mining will be used for the boxcut excavation,
main decline development with a TBM, roadheader development of strategic lateral infrastructure, and drill and blast (capital) lateral
development through September 2030. Contractors will also be used for vertical development activities, including drilling, shaft
sinking, and raiseboring (i.e., ventilation shafts, ventilation raises, orepasses, electrical, paste and dewatering service holes).
Ivanhoe Electric operations personnel will be
responsible for production activities, including truck haulage, production drilling, and stope mucking, as well as stope cut development
beyond the initial 13 m of primary stope cuts from the haul drift. Ivanhoe Electric will also assume responsibility for drill and blast
lateral development after September 2030.
SEPTEMBER 2026 13-22
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Note: Isometric view looking Northeast. Source: BBA, 2026.
Figure 13-10: Santa Cruz Mine Capital
vs. Operating Development & Production
(image not to scale)
13.11.2 Underground Material Handling System
The TBM decline material handling system was designed
by the TBM manufacturer for both temporary and permanent operating configurations. The system comprises a series of conveyors installed
along the upper sidewall of the TBM tunnel segments, discharging to a radial stacker on surface.
During TBM development, the temporary conveyor
system will comprise one main drive conveyor segment and five booster segments, for a total of six conveyor segments operating with a
914 mm (36”) belt. Once the TBM has completed operations, the system will be reconfigured to comprise four main drive conveyor segments
operating with a 1,067 mm (42”) belt.
The underground mine material handling system
will be developed through four configurations, all of which ultimately feed the permanent TBM decline conveyor system for transport of
ore to surface. The configurations will be implemented and operated concurrently for portions of the mine life as development progresses.
Configuration 1 will support Santa Cruz early
development and production, as well as LOM East Ridge development and production. In Santa Cruz, LHD equipment will load ore into ore
passes that feed a truck haulage loop. Haul trucks will be loaded through a loadout chute at the lowest elevation of the loop and will
transport ore to an ore bin and grizzly. In East Ridge, LHDs operating in stoping and drift-and-fill zones will load haul trucks directly
for transport to the ore bin and grizzly.
SEPTEMBER 2026 13-23
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The ore bin and grizzly will feed a mineral sizer and transfer conveyor, which will discharge
to a conveyor in the TBM decline and in-line load the permanent TBM decline conveyor system.
Configurations 2, 3, and 4 will use a common ore-loading
and conveying arrangement. LHDs will load ore into V-shaped ore-pass systems, which discharge to steel-lined ore bins at the designated
conveyor loading levels. The ore bins will discharge through chute and transfer conveyor systems to main loading level conveyors, which
feed a mineral sizer and the switchback conveyor systems. The switchback conveyor systems will transfer sized ore to the permanent TBM
decline conveyor system. For the underground mining conveyor system, pre-sized ore conveyors will include 1,500 mm (60”) belts,
and post-sized ore conveyors will include 1,200 mm (48”) belts.
To support the planned production rate from the
Santa Cruz deposit, four to eight orepass accesses will be required on each level, depending on the overall length of the level. Orepasses
are designed in V-formations with a 70° dip and 3 m diameter. This design increases the number of accesses available for production
on levels above the conveyor loading level. Orepasses will be steel-lined in high-impact zones near the top of the ore bins. Steel-lined
ore bins with average height of 40 m are planned at the bottom of each orepass system. Conveyor loading levels will contain three to four
ore bins, depending on level length, and multiple conveyor legs to allow individual ore-pass and ore bin systems to operate on demand.
Self-cleaning magnets will be installed at selected transfer points to remove tramp steel introduced during mining.
Configuration 2 comprises the material handling
system on Conveyor Level 2 (730L) and discharges directly to the upper switchback conveyor system. Configuration 3 comprises the material
handling system on Conveyor Level 1 (650L) and feeds an ore pass and loading conveyor that discharges to the upper switchback conveyor
system. Configuration 4 comprises the material handling system on Conveyor Level 3 (960L) and discharges to the lower switchback conveyor
system. The lower switchback conveyor system connects to the Configuration 3 loading conveyor and subsequently discharges to the upper
switchback conveyor system. Figure 13-11 illustrates the material handling overview.
SEPTEMBER 2026 13-24
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: BBA, 2026
Figure 13-11: Santa Cruz Material Handling
System
– Section View looking
Northeast
SEPTEMBER 2026 13-25
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
13.11.3 Backfill
Cemented paste backfill is used as the primary
means of backfill to support the mining cycle and allow excavation of the adjacent voids. Spent ore from the on/off leach pad is the primary
material source to produce paste. Due to the lag between the initial availability of spent ore from the on/off pad and the demand for
paste, Oracle granite from the decline construction or an off-site source is used during the initial months of mine production. Milled
spent ore will then be used for the remainder of the mine life. The spent ore requires conditioning and milling prior to use in the backfill
system to establish suitable properties for use as paste backfill.
Mine backfill demand ramps up over the first 2
years of production to ~2.4 Mm3 of voids to be filled in 2031. Two paste backfill production modules, each with a dedicated
8-inch pipeline and a corresponding design capacity of 250 m3/h, connecting to the underground distribution system are planned.
The second backfill production module and parallel 8-inch pipeline underground distribution system is required to start production by
Q4 2030. Prior to this, estimated monthly paste plant utilization peaks at approximately 67% for one module. Backfill demand continues
to increase through 2032 and levels off between 2.6 and 3.2 Mm3 per year over the remainder of the life of mine.
A paste backfill system rarely operates at a fixed
operating point and the inputs into the system will naturally change through variation in the orebody and what is upstream of the paste
plant. It is important to include flexibility within the system to accommodate for varying paste plant feeding material properties, paste
backfill rheology, and other changes in process parameters. For the routing and paste pump pressure capacity of the underground distribution
system, a yield stress range of between 150 and 450 Pa is specified. The expected paste solids concentration is in the range of 72% to
76% solids by weight for milled spent ore with 4.5% to 6.5% typical binder dosage.
13.11.3.1 Milled Spent Ore Paste Backfill
Paste backfill test work was completed on a range
of milled spent ore and unleached ore samples produced at laboratory scale. A 200 to 300 µm P80 target grind size was demonstrated
to contain adequate fines to produce a stable, pumpable paste while also maintaining strength gain once cured and was carried forward
in the design. Mineralogy consists primarily of quartz (~50%) and feldspars (~35%) with low contents of reactive clays, micas, and sulfides
and are not expected to inhibit paste backfill strength gain. Although the use of milled spent ore as a paste plant feed material is not
common, the material did not exhibit any problematic material properties or chemistry hindering backfill performance given neutralization
and chloride washing are completed upstream.
SEPTEMBER 2026 13-26
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Locally available Type II/V and slag cement blends
(primarily 90:10) were selected through initial test work and carried through grind size optimization test work. Type II/V generally reached
the 3-day plug strength target at a lower dosage (15-20% lower) while the slag begins to outperform after 7 days. Commercial slag cement
is preblended with alkali activators and a ratio of cement clinker which will differ between suppliers. Particularly for this paste backfill
application, sufficient cement clinker must be present to achieve the early cure times required for the mining cycle and to prevent potential
retarding of the cement hydration from residual chlorides and sulfates levels in the spent ore. Potential savings from the use of slag
cement are partially offset by higher transport costs and supply chain risk as commercial supplies in the wider region are imported. Local
Type II/V is carried in the study for the first three years of operation with the expectation that slag supplies and logistics are secured
during that time, allowing a transition to slag to occur by 2032.
Spent ore requires chloride rinsing, pH neutralization
with lime, and milling to produce a suitable feed material for paste. At the end of the leach cycle, the spent ore is rinsed with water
to reduce the residual chloride and sulfate concentrations before placing the material on the spent ore pad. Trucks are loaded at the
spent ore pad and are dosed with lime in transport to dump hoppers and feeders that supply spent ore to the mills. The spent ore and lime
are milled through two parallel open circuit ball mills (no recirculation or cyclone sizing), one for each paste module to produce a high
solids concentration discharge at neutral to basic pH. The solids and water inputs are metered to maintain sufficient solids to feed the
paste circuit. The milled material discharges into pump boxes and is pumped through a pipeline to the paste plant surge tanks. Off spec
material can be diverted into separate tanks and should be recirculated back to the mill. Filtration was excluded based on pilot milling
test work, mill vendor input, and third-party review, indicating that the mill can operate at sufficiently high solids concentration to
directly feed the paste mixing circuit.
In the mixer, trim water and binder will be added
to the spent ore according to a programmed recipe to produce paste at the desired solids concentration and binder content. The paste overflows
the mixer into a paste hopper that supplies a hydraulic piston paste pump. The paste is pumped by pipeline via adjacent boreholes and
the underground distribution system throughout the mine to the desired underground stopes. Binder is delivered from the manufacturer’s
terminal to silos at the paste plant for metering into the mixer. A 1,200-tonne storage silo provides sufficient binder for 2 days of
paste operation with 120-tonne dosing silos for each module providing buffer for metering. A clean water tank supplies water for metering
into the mixer and pipeline flushing. A dedicated high-pressure flush pump clears the underground distribution system when a paste pour
is complete or as an emergency backup to flush the underground distribution system.
SEPTEMBER 2026 13-27
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Two independent, parallel, modules with mixer,
binder dosing silo with weigh belt and feeder, paste pump and pipeline are installed for a combined design capacity of 500 m3/h.
This allows one or both modules to operate, filling two different stopes at a time.
13.11.3.2 Underground Distribution System
The paste will be pumped from the paste plant
through two parallel boreholes (one for each operating paste module) located adjacent to the paste plant. The boreholes will enter the
mine in a designated paste cuddy off the interconnecting drift between the Santa Cruz and East Ridge regions. Both pipelines will be routed
along the back of the mine drift to Santa Cruz region with a transfer station to allow either line to be connected to East Ridge region
through a series of spools. Both lines will be carried down the north side of the Santa Cruz region primarily through interlevel boreholes.
At each borehole level breakthrough, a transition in a cuddy will be constructed to allow access for either line to a level or bypass
to lower levels. In the lower levels of the mine, where mining occurs bottom up, the pipelines will follow the ramp system until level
accesses are developed.
The paste backfill system is designed to operate
under full flow conditions to minimize pipeline wear due to free fall and/or slack flow. The selection of the pipeline size is primarily
based on ensuring that friction losses are minimized during normal operation.
13.11.3.3 Paste Strength Requirements
Placed paste strength requirements are summarized
in Table 13-8.
Table 13-8: Paste Strength
Requirements
Strength
Requirement
Fill
Strength Target
(UCS)
Cycle
Time for Exposure
Sidewall
Exposure – Santa Cruz Domain (30 m)
375
to 500 kPa (15 to 23 m span)
14
days
Sidewall
Exposure – Verde Domain (20 m)
400
kPa (15 m span)
7
days
Undercut
(Sill Exposure) – Plug Pour (15 m High)
1,600
kPa
On
exposure
Undercut
(Sill) Mass Pour (Above 15 m Height)
Per
sidewall exposure/minimum paste strength/cap strength
Per
sidewall exposure
Plug
(Per Barricade Loading Assumption)
210
kPa
3
days
SEPTEMBER 2026 13-28
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
13.11.4 Grade Control
Grade control will be facilitated using technology
integrated into the materials handling system (e.g., cross-belt analyzers). Additionally, production hole sampling and on-site testing
at the surface assay laboratory will be used to reconcile results against the mine plan.
13.11.5 Mine Ventilation & Refrigeration
The underground mine ventilation system was designed
as a “push-pull” system, with the airflow provided from one decline and three ventilation shafts. The design ventilation capacity
of the system is designed to provide 880 m3/s, through main exhaust fan stations at Shaft 1 and Shaft 2, and the intake fans
at Shaft 3. The intake fans at Shaft 3, operating in conjunction with the bulk air cooler (“BAC”) at the shaft, allows for
the ventilation flow at the conveyor decline to be balanced as required. All main fans are planned to be installed on surface, while some
exhaust booster fans will be required to control the ventilation flow underground.
Due to the ambient temperatures, the temperatures
underground cannot be maintained below the maximum reject temperatures with ventilation only, so mechanical cooling is required at the
ventilation intake locations. Cooling will be provided at the intakes through the central refrigeration plant with overland insulated
piping and bulk air coolers installed adjacent to the portal and at Shaft 3.
For flexibility and efficient operation of the
ventilation system, all main fans and boosters will be equipped with variable frequency drives. This allows the speed of the fans to be
adjusted according to the airflow required. The system has been designed to allow ventilation on demand, to monitor and control the ventilation
system through automated regulators installed at the internal raise accesses. This ensures that adequate air quality is maintained on
all working levels.
13.11.5.1 Airflow Requirements
The Santa Cruz ventilation system is designed
to meet the minimum design velocity requirements at each active heading, ensuring sufficient airflow for heat and diesel dilution is provided
in compliance with regulatory standards. This approach ensures good air quality and allows for the efficient clearance of mine blast gases.
The airflow requirements for the Santa Cruz mine
ventilation system are determined by the greater of 12.5 m³/s (based on a velocity of 0.5 m/s for a 5 m x 5 m heading) or 0.063 m³/s
per operating horsepower in the active development/production heading. Cooling will be provided as necessary to manage heat. The overall
ventilation system is designed for a maximum 880 m³/s to slightly exceed the ventilation requirements for the planned development
and production activities. The ventilation milestones staged requirements are as follows:
SEPTEMBER 2026 13-29
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
■
Stage
1: Initial Development
300
m³/s
■
Stage
2: Shaft 3 Established
550
m³/s
■
Stage
3: Shaft 1 Established
550
m³/s
■
Stage
4: Production Ramp-Up
700
m³/s
■
Stage
5: Full Production
800
m³/s
■
Stage
6: Life of Mine
840
m³/s
The ventilation is provided through two exhaust
main fan stations at the Shaft 2 and Shaft 3, and an intake fan station at Shaft 3. The exhaust fan stations will have a bifurcated arrangement,
with fans installed in parallel and ducting connecting to a 5.5 m diameter raise. While the intake fan station will be installed at the
BAC with one fan per BAC module unit, having a total of five fans operating at the Shaft 3 BAC.
13.11.5.2 Cooling Requirements
Due to the location of the mine, cooling will
be required to condition the intake ventilation air. The cooling requirements considered the heat from the mobile equipment, auto-compression,
strata heat, broken rock, fissure water ingress, and electrical loads. The peak ventilation cooling required is 20 megawatts of refrigeration
(“MWr”) as outlined in Figure 13-12.
Source: Stantec, 2026
Figure 13-12: Ventilation
Cooling/Heat Load Throughout Life of Mine
SEPTEMBER 2026 13-30
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Cooling will be provided through a centralized
refrigeration plant. The refrigeration plant will have four chillers, each rated to provide 5 MWr of cooling capacity at the bulk air
coolers, and four cooling towers to reject the heat from each chiller. The chillers, cooling towers, and bulk air coolers will be staged
as additional cooling duty is required by the mine. The refrigeration plant is planned to have a total capacity of 20 MWr, with the bulk
air coolers located at the decline portal and Shaft 3. A cooling duty of 7.5 MWr and 12.5 MWr is planned at each of these locations, respectively.
13.11.5.3 System Description
Access to the mine is planned through the TBM
decline which will be equipped with a conveyor for material handling. To support the development of the decline, a forced ventilation
system will be established with a large 2.13 m diameter flexible duct providing sufficient airflow to the TBM heading. The forced ventilation
will be provided by two portal fans installed in series with a heat exchanger for cooling, fed from an air-cooled rental chiller. At the
bottom of the TBM decline a connection to the first raise will be made to establish flowthrough ventilation and support additional development
headings.
The development will proceed in stages, with three
shafts established to support ventilation and production. Bulkheads, internal raises, and booster fan stations will be installed to direct
the ventilation. Some of the bulkheads will include doors to allow access and louver regulators to control the airflow, with air quality
stations monitoring the air flow. Auxiliary fans will be installed at the levels and ramps and ducted to production or development headings,
as required.
Roadheaders are planned for some of the headings.
Ventilation for headings being developed with a roadheader will incorporate an exhausting ducted system with a wet scrubber for dust control.
The intake air will be conditioned initially with a skid-mounted rental air handling system; this will later be replaced with a permanent
bulk air cooler.
Airflow to the mining areas will be provided through
the conveyor and Shaft 3. The exhaust from the mining areas will be directed either to (1) internal raises onto the conveyor levels
and then to the main exhaust shafts; or (2) directly to the main exhaust shafts (i.e. Shaft 1 or Shaft 2). A schematic showing the
planned LOM ventilation is provided in Figure 13-13.
SEPTEMBER 2026 13-31
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Stantec, 2026
Figure 13-13: Life of Mine
Ventilation Schematic
13.11.5.4 Auxiliary Ventilation
The auxiliary ventilation for the development
and production headings1 is planned to employ a forced ventilation system, with the fans pushing fresh air to the heading
from the closest flowthrough ventilation, and exhaust from the heading returning through the drift. The auxiliary fans were sized based
on the heading length and the mining activity. For production headings, a single auxiliary fan will be capable of supporting two active
headings. Dampers will be installed within the ducting to control the flow to the heading, with 15 m3/s provided to each active
production heading. One auxiliary fan will be capable of supporting two headings. While for the development headings, a dedicated development
fan will be required per heading, with 30 m3/s provided to each development heading.
1 Except for roadheader development, which will employ
an exhausting system as described in Section 13.11.5.3.
SEPTEMBER 2026 13-32
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
13.11.6 Underground Infrastructure
Proposed underground infrastructure will include
the following:
■ The
underground compressed air system will be supplied by surface-installed compressors. A primary
compressed air header will be routed from surface to the underground workings through a dedicated
borehole. Compressed air will then be distributed between level service stations through
cased boreholes.
■ The
underground process water system will be gravity-fed from a surface holding tank. The water
level in the holding tank will be maintained by raw water pumps drawing from the surface
pond. A primary process water header will be routed from surface to the underground workings
through a dedicated borehole. Process water will then be distributed between level service
stations through cased boreholes.
■ An
electrical system will be installed to support the TBM development, road header development,
production mining and infrastructure, development and construction, battery electric vehicle
(“BEV”) charging stations, conveyors, and surface ventilation fans. The system
will include incoming 13.8 kV feeds, power distribution, power substations, primary substations,
secondary substations, infrastructure substations, mining substations, major and minor pumping
substations, and conveyor substations.
■ Leaky
feeder and long-term evolution (“LTE”) cables will be installed in the mine for
underground communications.
■ A
control room on surface will allow supervisory control and data acquisition (“SCADA”)
for monitoring and operation. There will also be a tele-remote control room for equipment
operation, a server room that contains programmable logic controllers (“PLCs”)
and cabinets, and multiple operator stations for LHDs and production drills. Variable frequency
drives and starters for pumps, fans and other underground installations will be connected
through the network to the PLC for monitoring and control.
■ Fuel
stations will be available for diesel, lubricant, hydraulic fluid, and engine oil.
■ Battery
charging stations for BEVs will be provided.
■ Bulk
underground explosives storage, and separate detonator storage areas for development and
production, are included in the design.
13.11.7 Personnel
Underground labour and supporting staff are expected
to peak at 529 personnel, comprised of both contractor and Ivanhoe Electric employees; this represents the total underground workforce
and not the number of personnel on site at any one time.
SEPTEMBER 2026 13-33
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
13.11.8 Mining Equipment Fleet
The mobile equipment fleet will consist of a combination
of diesel, diesel/electric, and battery electric vehicles. In early development stages before charging infrastructure is constructed,
diesel equipment will be primarily deployed. From the start of operations, development equipment will be composed of a diesel/BEV hybrid
fleet (for few equipment types like emulsion loaders, LHDs, personnel carriers, etc.). The diesel equipment transition to BEV-type
equipment will be complete by 2034. During full production, BEV LHDs will be used instead of diesel equipment to reduce fuel and ventilation
costs.
All new mining equipment purchased by Ivanhoe
Electric until 2033 will be financed to reduce initial capital requirements. The financed equipment will be replaced with purchased equipment.
Table 13-9 summarizes the peak Ivanhoe Electric mobile equipment fleet by year. Contractor equipment fleet requirements are summarized
in Table 13.
Table 13-9: Peak Equipment Quantities
Per Year – Owner's Fleet – Operating Development & Stoping
Equipment
Type
Motive
Power
First
Peak Year
Count
Emulsion
Loader (Development) – Diesel
Diesel/Electric
2031
2
Emulsion
Loader (Development) – Electric
BEV/Electric
2034
5
Bolter
Diesel/Electric
2033
10
Boom
Truck
Diesel
2032
9
Cable
Bolter
Diesel/Electric
2030
3
Raise
Bore (Production Slot)
Diesel/Electric
2043
7
Emulsion
Loader (Production) – Diesel
Diesel/Electric
2029
1
Emulsion
Loader (Production) – Electric
BEV/Electric
2037
4
Forklift
– Diesel
Diesel
2029
1
Forklift
– Battery Electric
BEV
2034
7
Jumbo
Diesel/Electric
2034
6
LHD
– Diesel
Diesel
2030
2
LHD
– Battery Electric
BEV
2034
13
Cleanup
LHD
Diesel
2032
4
Longhole
Drill
Diesel/Electric
2037
7
Scissor
Lift – Diesel
Diesel
2030
2
Scissor
Lift – Battery Electric
BEV
2034
5
Shotcrete
Sprayer
Diesel/Electric
2028
4
Truck
Diesel
2030
7*
SEPTEMBER 2026 13-34
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Equipment
Type
Motive
Power
First
Peak Year
Count
Rock
breaker
Diesel
2032
2
Fuel/Lube
truck
Diesel
2029
2
Grader
Diesel
2028
1
Telehandler
Diesel
2033
3
Mechanic
Truck
Diesel
2034
4
Personnel
Carrier (32-person)
Diesel
2031
4
Safety
– Battery Electric
BEV
2028
1
Engineering/Surveyor/Geology
BEV
2031
5
Shifter
– Battery Electric
BEV
2033
7
Rescue
Vehicle
Diesel
2028
1
Explosive
transport truck
Diesel
2028
2
Mobile
Batch Plant
Diesel
2034
4
Total
135
*Four additional trucks will be rented in this year to support early
production.
Table 13-10: Total Equipment Quantities
Per Year – Contractor’s Fleet – Other Capital Development
Equipment
Type
First
Peak Year
Quantity
Jumbo
2029
3
Explosives Loader
2029
2
LHD
2029
3
Cleanup LHD
2028
1
Bolter
2029
5
Cable Bolter
2028
1
Shotcrete Sprayer
2029
2
Mobile Batch Plant
2029
2
Scissor Lift
2028
4
Forklift
2028
2
Personnel Carrier
2028
1
Raisebore (for Vertical Development)
2031
3*
Total
29
*Based on contractor requirements – numbers to be validated with
detailed mine schedule.
SEPTEMBER 2026 13-35
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
14. Process & Recovery Methods
14.1 Process Method Selection
The overall process for Project has been designed
to cycle oxide and secondary sulfide ores through an on/off heap leach to produce a pregnant leach solution (“PLS”) that will
be processed in the onsite SX/EW circuit for copper recovery.
The process plant and refinery designs were based
on proven technologies and established operating practices, and commercially available equipment. The design approach incorporates the
results of metallurgical testwork conducted on mineralized material from the Santa Cruz Copper Project. Overall, the proposed process
configuration is conventional and presents a low level of technical risk.
14.1.1 Processing
Overview & Flowsheets
The proposed Santa Cruz Copper Project processing
facilities will include the following operations:
■ Crushed
coarse ore stockpile (Run of mine (“ROM”) is crushed by a sizer underground);
■ Secondary
crushing and screening;
■ Tertiary
crushing and screening;
■ Agglomeration;
■ Conveyors
and Stacker;
■ Heap
leaching;
■ Solvent
extraction (SX);
■ Electrowinning
(EW);
■ Reagent
preparation and distribution;
■ Raw
water and distribution;
■ Water
treatment and distribution;
■ Compressed
air.
A simplified overall process flow diagram is
presented in Figure 14-1.
SEPTEMBER 2026 14-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Figure 14-1:
Simplified Process Flowsheet
14.2 Metallurgical Design Basis
Metallurgical design
parameters for the facilities are based on the metallurgical testwork discussed in Section 10. The key metallurgical parameters
derived from the metallurgical testwork program are presented in Table 14-1.
Table 14-1:
Key Metallurgical Testwork Parameters
Description
Unit
Design
Value
Heap
Leach Feed Particle Size (F100)
mm
sub-9.5
Heap
Leach Feed Particle Size (F80)
mm
6.4
Bulk
Density for Stacking & Volumetric Calculations
t/m3
1.51
Ore
Solids Density
t/m3
2.77
Sodium
Chloride (“NaCl”) Addition to Agglomeration
kg/t
0.4
Gross
Acid Consumption
kg/t
27
Net
(Gangue) Acid Consumption (or Generation)
Kg/t
10
Irrigation
Rate
L/h/m2
8.0
Residual
Moisture
wt
%
6.0
Overall
Copper Recovery
%
92.3
Concentration
of Soluble Copper in Residual Moisture
g/L
0.35
Bond
Work Index of Spent Ore
kWh/t
14.9
Crusher
Work Index of Ore Average
kWh/t
3.8
Abrasion
Index
grams
0.12
SEPTEMBER 2026 14-2
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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14.3 Process Description
Ore produced from
the underground mine will be processed using a heap leach and SX/EW flowsheet to produce London Metal Exchange (“LME”) Grade
A copper cathode. The heap leaching process will take place on an on/off pad. Spent ore will be removed from the on/off leach pad and
processed for paste backfill or placed in a spent ore storage facility. Approximately 50% of the spent ore will be processed for use
in paste backfill. Operations will be conducted 24 hours per day, 365 days per year for approximately 24 years, at a design daily stacking
rate of up to 22,000 tonnes.
14.3.1 Major Process Equipment Design
Criteria and Selection
Major process design
criteria are presented in Table 14-2. Major process equipment specifications are presented in Table 14-3.
Table 14-2:
Major Process Design Criteria
Description
Unit
Value
Operating
Information
Life
of Mine
y
24
Crushing &
Agglomeration Annual Operating Time
%
75
Crushing &
Agglomeration Annual Operating Hours
h/y
6,570
SX/EW
Annual Operating Time
%
95
SX/EW
Annual Operating Hours
h/y
8,322
Ore
Production
Life
of Mine Ore Production
Mt
140
Stacking
Rate Design
t/d
22,000
Plant
Feed Grade (Life of Mine)
Acid-Soluble
Copper
%
0.64
Cyanide-Soluble
Copper
%
0.38
Residual
Copper
%
0.05
Total
Copper
%
1.04
Recovery
Life-of-Mine
Total Copper Recovery
%
92.3
Design
Annual Copper Production
t/y
76,000
SEPTEMBER 2026 14-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Description
Unit
Value
Heap
Leaching (On/Off Pad)
5-Cell
Dimensions (full cell / half-cell strip)
L
x W (m)
640
x 131.0 / 65.5
Number
of Cells (full cells / half-cell strips)
no.
7
/ 14
Lift
Height (single lift only)
m
8.0
Aeration
Rate
Nm3/h/m2
0.15
Leach
Solution
Pregnant
Leach Solution / Raffinate Flow Rate (Average)
m3/h
2,000
Secondary
Leach Solution Flow Rate (Average)
m3/h
1,300
Table 14-3:
Major Process Equipment
Item
Number
Description
Stockpile
Feeder
2
Apron
feeder
Secondary
Crusher
1
MP1000
Secondary
Screen
1
3.6
m x 7.3 m inclined; double-deck; banana
Tertiary
Crusher
2
MP1250
Tertiary
Screen
2
4.2
m x 8.5 m inclined; double-deck; banana
Heap
Leach Stacking System
1
Groundline
conveyor to mobile conveyors with radial stacker
SX
Circuit
2
Two
trains each of (two extraction + two wash + one strip)
EW
Circuit
1
Cells
with 84 cathodes each, 2.3 m2 per cathode
EW
Rectifier
2
Output
current (maximum) 67 kA / 287 V
14.4 Crushing, Agglomeration &
Stacking
14.4.1 Crushing
ROM ore will be
crushed underground and delivered to surface at sub-254 mm diameter via belt conveyor. Ore from underground will be conveyed to the crushed
coarse ore stockpile (“CCOS”) and will be reclaimed via two apron feeders that will discharge to a secondary vibrating screen
(scalper).
The secondary screen
oversize material will transfer to a secondary cone crusher operating in open circuit for further crushing. The secondary crushed and
the secondary screen undersize material will be combined and further screened on two tertiary vibrating screens. The two tertiary screens
will be large banana-type, dual-deck screens. Screen undersize (crushing circuit product), at 100% passing 9.5 mm will be conveyed to
fine ore hoppers leading to Agglomeration drums.
SEPTEMBER 2026 14-4
Ivanhoe Electric Inc.
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The hoppers will
serve to buffer the continuous crushing circuit to the agglomeration operation. The crushing circuit screen oversize product will be
returned to the tertiary crushing feed conveyor for additional crushing. The tertiary crushing circuit will comprise two cone crushers
arranged in parallel configuration. Sodium chloride will be added via screw conveyor based on a tonnage ratio to the conveyor to the
fine ore hoppers to facilitate leaching. Salt will be received in bulk and blown into a silo for storage.
Dust generated
during crushing, screening, and conveying will be captured using dry-type dust collectors and controlled using mist generators where
appropriate. The crushing circuit will be located outdoors, and maintenance lifting will be performed by mobile crane.
14.4.2 Agglomeration
Fine ore (undersize
from the tertiary crushing circuit screens) will be agglomerated in rotary drums where sulfuric acid, and raffinate or water will be
added to facilitate agglomeration. Feed to the agglomeration drums will be measured for the ratio addition of reagents. Acid will be
trucked to the mobile agglomeration module and transferred to a day tank from which a metering pump will add the desired amount of acid
to the drum.
14.4.3 Stacking
Crushed ore will
be delivered to the leach pad via a combination of permanent overland and mobile conveying and stacking equipment. Agglomerated ore will
discharge onto a transfer conveyor which will feed a series of grasshopper-type mobile conveyors. The final mobile conveyor will feed
two self-propelled indexing conveyors in series, which in turn will feed the self-propelled mobile radial stacker. The full-size cells
of the on/off pad will each be ‘retreat’ stacked as two half-cell strips by the radial stacker in 65.5 m wide half-moon shapes.
14.5 On/Off Heap Leach
14.5.1 On/Off Heap Leach Pad
The on/off heap
leach pad will be subdivided into seven cells, each approximately 130 x 730 m, that will each be loaded with ore in two half-cell strips
(with each strip typically comprised of approximately 65.5 x 635 m crest dimensions), irrigated, and unloaded at different times. The
end cells of the on/off pad will be slightly larger to account for the exterior side slopes and approximate 5 m-wide pad perimeter
offsets will be included along the north and south perimeters of the pad. An approximate 55 m-wide onloading corridor will be included
along the west side of the pad, and an approximate 15 m-wide off-loading corridor will be included along the east side of the pad. The
full-size cells will be separated by divider berms located near their bases so that solution
SEPTEMBER 2026 14-5
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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flow from each cell can be segregated for
collection in either the PLS collection pond(s) or secondary leach solution (“SLS”) collection pond(s). The base of
the pad will be graded to promote solution flow from east to west and a solution pipeline conveyance channel will be located along the
western edge of the on/off pad to deliver solution to the ponds system(s). The pad will be surrounded by a containment berm to retain
solution and stormwater runoff inside the pad footprint. Initial capital will include the construction of the four northern full-size
cells with associated perimeter offsets, onloading and off-loading corridors, and divider and containment berms. The remaining three
southern cells will be added as operations require.
The on/off heap
leach pad will be underlain by a liner system, comprising:
■ A
high-density polyethylene geomembrane, overlying;
■ A
geosynthetic clay liner, overlying;
■ Prepared
native foundation materials or compacted grading fill.
The liner system
will be overlain by a drainage system comprising perforated pipes at 6 m spacing, installed in 0.9 m thick drainage layer of select,
processed ore and/or imported drainage fill. The perforated pipes will connect to a main collector pipe that will run along the downstream
edge of each cell and convey solution to the collection ponds (via the solution pipeline conveyance channel). The drainage system has
been sized to convey the design irrigation rate (8 L/h/m2 applied over the top surface area of the ore) multiplied by a factor
of 1.5 to account for potential changes in conditions and/or stormwater flows.
The stability of
the on/off heap leach pad was analyzed under static and pseudo-static loading conditions and meets the criteria for the factor of safety
outlined in the Arizona Mining BADCT Guidance Manual (ADEQ, 2005). Laboratory testing results on Project-specific materials (e.g., spent
ore, liner system interfaces) were used to estimate engineering parameters for the stability models.
14.5.2 Solution Management
Solution will be
managed in a series of lined ponds, as follows:
■ Raffinate
(depleted PLS from the SX process) pond;
■ PLS
collection ponds (north and south);
■ SLS
collection ponds (north and south);
■ Solution
overflow ponds (north and south), to manage upset conditions and stormwater reporting from
the on/off heap leach pad.
The ponds system
has been sized to contain normal operating solution inventory, heap leach pad drain-down during potential upset conditions, and stormwater.
The entire site will be fenced to
SEPTEMBER 2026 14-6
Ivanhoe Electric Inc.
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reduce the risk of danger to wildlife. Water that accumulates in the solution overflow ponds will be
pumped to the SLS ponds so that adequate stormwater storage capacity will be maintained and to mitigate potential discharge to the environment.
The liner systems for the ponds follow Prescriptive BADCT guidelines (ADEQ, 2005). For the process solution ponds, this comprises:
■ A
UV-resistant high-density polyethylene geomembrane, overlying;
■ A
leachate collection and removal system (“LCRS”) comprising a geonet, gravity-draining
to a sump to allow for leak monitoring and leachate removal, overlying;
■ A
high-density polyethylene geomembrane, overlying;
■ A
geosynthetic clay liner, overlying;
■ Prepared
native foundation materials, compacted grading fill, or compacted pond embankment fill.
The SLS ponds and
solution management will be used to support extended leach cycles during secondary sulfide leaching by allowing select copper solutions
to be returned to the top of the heap leach pad to thereby promote higher copper extractions and/or higher solution grades for processing.
The proposed locations
of the solution management ponds are depicted in Figure 14-2. The Santa Cruz Copper Project on/off heap leach facility is designed
and planned to be operated as a zero-discharge facility.
SEPTEMBER 2026 14-7
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Figure 14-2:
7-Cell Heap Solution Management
SEPTEMBER 2026 14-8
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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14.5.3 Heap Leach Process
The approximate
130 m wide full-size cells will be ‘retreat’ stacked (east to west) by radial stacker in 65.5 m wide (half-cell) half-moon
shapes. Agglomerated ore will be fed to the stacker by mobile conveyors. The leach stack (single lift at angle-of-repose) height will
be 8 meters.
Ore will be stacked
at up to 22,000 t/d, while unloading will consider a constant rate of 22,000 t/d; based on a typical interior half-cell strip (i.e.,
not the end cell strips on the north or south sides of the pad), it will take approximately 25 days to stack each half-cell strip at
the design production rate. Each of the cells (and more specifically, each of the half-cell strips) will cycle through the following
processes in sequence with an entire cell cycle, under the design production rates and idealized cell sizing, taking approximately 320
days:
■ Stacking
(25 days);
■ Piping
connections, stacker relocation, and ore curing (3 days);
■ Irrigation
(220 days);
■ Solution
drain-down, water rinse, water drain-down, and piping removal (23 days);
■ Spent
ore reclaim (25 days);
■ Inspection
and maintenance (empty cell time) (26 days).
The cells will
be irrigated with raffinate or SLS produced from leaching. Leach solution will report to the leach solution collection ponds. At the
end of the leach cycle, spent ore will be removed, as discussed in Section 14.5.4.
Pregnant leach
solution will report to the solvent extraction circuit, and raffinate will return to the heap from solvent extraction at a flowrate of
2,000 m3/h. The general pad configuration and solution management ponds presented on Figure 14-3 are planned.
Secondary sulfides
in the ore will require oxygen for leaching. Air will be supplied to each cell by blowing air using two dedicated fans per cell. In total,
there will be 14 fans; however, only 10 will be operating at any given time. Air piping will also be installed in a layer of select,
processed ore and/or imported drainage fill beneath the stacked ore at an elevation above the drainage system. For each cell, two fans
will discharge to an air header. The air tubes will have perforated air holes for air distribution.
SEPTEMBER 2026 14-9
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Source: Ivanhoe Electric, 2025.
Figure 14-3:
Solution Management Ponds, Leach Pad & Spent Ore Stockpile
SEPTEMBER 2026 14-10
Ivanhoe Electric Inc.
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14.5.4 Spent Ore Management
Following irrigation
on the on/off pad, the spent (leached) ore will be left on the leach pad to allow for initial solution drain-down, water rinsing, and
water drain-down; a total process that will last approximately 23 days. Following the removal of the irrigation piping, the spent ore
will be unloaded from the pad using dozers, loaders, and grasshoppers / link conveyors and then loaded into trucks along the eastern
edge of the pad for transport to either the spent ore stockpile or the paste backfill plant. After removal of the spent ore from the
on/off pad, the pad will be inspected and maintenance will be performed, as needed, prior to the start of the next cycle that will begin
with stacking.
The spent ore stockpile
will be located east of the on/off heap leach pad (Figure 14-3) and will be the planned repository for all spent ore not used for
paste backfill. The spent ore will be placed in the stockpile by mobile equipment in lifts and expanded from north to south during operations
to meet storage requirements.
The spent ore stockpile
will be underlain by a high-density polyethylene geomembrane on top of prepared foundation or compacted grading fill. The geomembrane
will be covered by a 1 m thick, compacted, protection layer of carefully placed spent ore. Portions of the stockpile, near the toes of
slopes, will be compacted for pile stability.
The spent ore stockpile
will be surrounded by lined collection channels that will receive seepage from the stockpile (if any) and runoff from the stockpile
slopes. The channels will convey flow to the northern side of the stockpile, to the spent ore stockpile collection pond, where it will
be evaporated or reused in the process. Ultimately, the spent ore stockpile will be covered and shaped, as needed, for surface water
management and long-term stability once production has ceased.
14.5.5 Copper Separation (Solvent
Extraction)
In the solvent
extraction plant, copper is selectively extracted from the aqueous pregnant leach solution in mixers, using an “organic”
extractant. The denser aqueous and lighter organic phases are then separated in settlers. This leaves the aqueous solution (raffinate)
containing all other solutes (notably chloride, acid, and iron) which is returned to the heap leach via the raffinate pond. Any residual
aqueous solution entrained in the organic phase is removed in a washing stage.
Next, the copper-loaded
organic is stripped using a highly-acidic solution from the electrowinning plant (lean-electrolyte), whereby the copper is transferred
at a higher concentration to the electrolyte (rich-electrolyte) and delivered to the electrowinning plant for recovery as cathode.
SEPTEMBER 2026 14-11
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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The solvent extraction
circuit design comprises two parallel trains. Each train will consist of two extraction stages, two wash stages, and one strip stage.
Organic will be
circulated through the extraction, washing, and stripping stages. A surge tank with pumps for loaded organic will be situated between
the final extraction stage and the (first) wash stage. Entrained aqueous will be drained from this tank and returned to the extraction
circuit.
Pregnant leach
solution from the leach pad will be pumped through the two extraction settlers in series, in countercurrent fashion, with stripped organic
to extract copper. The stripped organic will become loaded organic and will enter an organic surge tank. The loaded organic will then
be pumped through the wash stage(s) to the strip settler. Water will be added to the wash stages to remove as much of the high-chloride
aqueous as possible via dilution. The cleaned organic will then proceed to the strip stage.
Lean-electrolyte
will be fed to the strip stage where it will extract copper from the loaded organic to form rich-electrolyte. This stream of rich-electrolyte
will enter a surge tank and be pumped through a coalescing column to remove the majority of the entrained organic. The partially-cleaned
rich-electrolyte will be stored in another surge tank and then pumped through dual media filters to reduce the entrained organic to approximately
5 ppm. These filters will be periodically backwashed with demineralized water, which will be returned to the raffinate. The electrolyte
product will then enter an electrowinning cell feed tank system where it will be mixed with a portion of the lean-electrolyte and reagents
to form electrowinning cell feed electrolyte. This electrolyte will be pumped to the electrowinning circuit. The electrowinning circuit
will require a higher flowrate than the strip settler, so the flow will be increased by circulating cell return lean-electrolyte.
14.6 Electrowinning
The copper electrowinning
tank house will comprise electrowinning cells with calcium-tin-lead rolled plate anodes and stainless-steel cathode blanks. Cathodes
(copper electroplated onto stainless-steel blanks) will be harvested manually using an overhead crane and bail. Positioning devices on
the crane and cells will assist the crane operator with alignment. Cathodes will be stripped in an industry standard automated stripping
machine, and the washed blanks will be returned to the cells. Product cathode will be bundled, sampled, weighed, labeled, and shipped.
The electrowinning
cells and stripping machine will be located within a building. The cells will be individually covered to contain acid mist that naturally
evolves from the solution surface. Covered cells will provide a safe working environment for the operators and capture acid mist prior
to release to the atmosphere. Captured cell gases and aerosols will be scrubbed prior to release to the environment.
SEPTEMBER 2026 14-12
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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14.6.1 Reagent Preparation &
Distribution
Sulfuric acid,
guar, cobalt sulfate, extractant, diluent, and sodium chloride will be used in the process (Table 14-4). Where appropriate, reagent
mix tanks will be provided with bag breakers and dust collectors. Each reagent makeup area will be equipped with independent containment
and a dedicated sump. Bagged reagents will be stored under cover in the site warehouse.
Table 14-4:
Proposed Reagent & Process Consumables
Reagent &
Consumables
Units
Consumption
Rate
Reagents
Sodium
Chloride
kg/tore
0.4
Sulfuric
Acid
kg/tore
9
Makeup
Water
kg/tore
723
Guar
kg/tcathode
0.20
Cobalt
Sulfate
kg/tcathode
0.40
Extractant
kg/tcathode
3.168
Diluent
kg/tcathode
8.81
Liners
and Grinding Media
Primary
Crusher – Liners
set/y
2
Secondary &
Tertiary Crushers – Liners
set/y
9
14.7 Raw Water
Makeup water (water
sourced by natural means that has not been treated) will be sourced from existing grandfathered Type 1 non-irrigation rights and mine
dewatering. Mine dewatering will report to a surface pond for storage, sedimentation, and eventual discharge to agricultural end users.
A portion of the makeup water will be used untreated by the process, while a portion will be treated in the reverse-osmosis plant and
used for the wash settlers, reagent mixing, and electrowinning circuit. Mine dewatering will provide a sufficient supply of makeup water
for the LOM plan.
Further discussion
of water can be found in Sections 3.2.3, 15.1.6, 15.1.7, and 17.2.
SEPTEMBER 2026 14-13
Ivanhoe Electric Inc.
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14.8 Air Supply
A compressed air
distribution system will be included to supply required process air to the plant—primarily to the crusher area. Instrument air
will be included for instrumentation and controls.
14.9 Power
Power supplies
are discussed in Section 15.5.
14.10 Personnel
The process personnel
count is 114 persons. See Section 18.3.2.1.3 for a breakdown of crew for each circuit.
SEPTEMBER 2026 14-14
Ivanhoe Electric Inc.
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15. Infrastructure
15.1 Surface Infrastructure
The Project site
surface infrastructure comprises the following:
■ An
open excavation 30 m deep box cut ramp for accessing a single Tunnel Boring Machine tunnel
to the underground mine workings;
■ Three
ventilation shafts to facilitate air flows to the underground mine workings;
■ Primary
mine ventilation fans, hardware, and ducting to control ventilation to the mine workings;
■ Refrigeration
plant to control temperatures in the underground mine workings;
■ Emergency
egress hoist system and headframe structure to support underground mining operations;
■ Rock
crushing and screening plant and crushed ore stockpiles;
■ Agglomeration
drums and conveyors;
■ A
spent ore facility;
■ On/off
leach pad with associated collection ponds and mobile stacking;
■ SX/EW
process facilities;
■ Mobile
cement batch plant facility;
■ Paste
backfill preparation and pumping facility;
■ Reagent
systems facility;
■ Maintenance
and warehouse facilities;
■ First
aid/rescue building;
■ Multiple
various ancillary outbuildings;
■ Entry
security shack and various visitor and employee parking spaces;
■ Equipment
delivery and open laydown/storage area;
■ Multiple
improved and unimproved access roads;
■ Piping
and pumping systems for process and water services;
■ Explosives
storage facility;
■ High-voltage
transmission line, substations and medium-voltage distribution;
■ Environmental
monitoring facilities;
■ Emergency
power generation facility.
SEPTEMBER 2026 15-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Key
infrastructure locations are shown on Figure 15-1.
Source:
Ivanhoe Electric, 2026
Figure 15-1:
Santa Cruz Site Plan
15.1.1 Roads & Logistics
The Project is
accessed by all-weather road networks, as discussed in Section 4, along with rail and air access.
15.1.2 On/Off Leach Pads
On/off heap leach
pads are discussed in Section 14.6.
SEPTEMBER 2026 15-2
Ivanhoe Electric Inc.
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15.1.3 Spent Ore Storage Facilities
Spent ore storage
facilities are discussed in Section 14.6.1.
15.1.4 Power & Electrical
Power for the Project
will be provided from the utility grid supply. The goal of the mine development is to achieve a minimum of 70% of the energy supply from
clean energy sources. The clean energy sources will be from a “Green Select” Rider (power from renewable sources) via the
local power utility provider, Pinal County Electrical District Number 3 (“ED3”), based on availability.
15.1.4.1 Utility
Power
Regular, grid-supplied
power will be sourced from ED3, which is the small, local power supplier to the Maricopa-Stanfield area. ED3’s jurisdiction also
includes the Maricopa Stanfield Irrigation and Drainage District (“MSIDD”). The nearest ED3 substation (Sexton) is to the
west at the northeast corner of the intersection of Highway 84 and South Anderson Road, approximately 3.5 miles from the planned Santa
Cruz switchyard at the Project site. Long-term grid power to the site will be via a new 69 kV double- circuit transmission line
from Sexton Substation (see Figure 15-2), installed, owned, and operated by ED3. It will be routed within the recently acquired
easements along Anderson Rd and Clayton Rd, before terminating at the Santa Cruz Switchyard within the Ivanhoe Electric property.
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Source: Ivanhoe Electric, 2025
Figure 15-2:
Transmission Lines Near the Santa Cruz Copper Project
15.1.4.2 Power
Distribution
At the Santa Cruz
Switchyard, power will be distributed within the Santa Cruz site to the Saguaro and Cholla substations via a 69 kV overhead line. The
Saguaro Substation will have a Main-Tie-Main Switchgear fed from two 60/80/100 MVA, 69 kV to 13.8 kV transformers for site-wide
power distribution, including the underground power infrastructure. The Cholla Substation will have a similar setup but with two 18/24/30
MVA, 69 kVA to 4.16 kV transformers to support the paste plant and main ventilation and refrigeration plant.
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15.1.4.3 Power
Consumption
The Santa Cruz
Copper Project will have an estimated operating load of 74 MW during peak production years (2031-2044) and a forecast annual consumption
of 647,000 megawatt-hours per year (“MWh/y”) during peak production years with 690,000 MWh in 2039.
The estimated operating
load for the underground mine equipment is forecast to average 31.1 MW with peak operating power around 43.6 MW. The estimated total
annual energy consumption attributed to the underground mine during peak production years is estimated to average 272,000 MWh/y, peaking
at approximately 294,000 MWh/y in 2039.
The average estimated
operating load of the Santa Cruz paste plant is 13 MW; with the average annual power consumption at 73,000 MWh/y during peak production,
peaking at approximately 85,200 MWh/y in 2039.
The average estimated
operating load of the Santa Cruz Ventilation/Refrigeration Plant is 11.2 MW; with the average annual power consumption at 41,400
MWh/y during peak production years, with a peak of 48,000 MWh/y in 2042.
The estimated average
operating load for the Santa Cruz surface facilities is forecast to be 34.3 MW; the estimated annual power consumption during peak
production years is forecast to be approximately 218,000 MWh/y with a peak of 226,000 MWh/y in 2039.
15.1.5 Gas Pipelines
A natural gas pipeline
crosses the Project area and accesses various adjacent residential customers, farms, and businesses. There is currently no plan for the
use of natural gas during Project development or operations, so the section of the natural gas pipeline that crosses through the proposed
facilities will be abandoned and relocated during early-stage Project development.
15.1.6 Water Supply
Water supply for
processing operations will be sourced from existing grandfathered Type I non-irrigation rights and mine dewatering, as discussed in Section 14.7.
Potable water will
be trucked in from the city. Trucked water will be stored in a tank to service the surface facilities.
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15.1.7 Water Management
Water management
operations, including systems of underground water collection, conveyance, and extraction facilities, water storage, water use, and various
management options for discharge of excess water are integrated through the water balance plans and modeling, to support overall reliability
of Ivanhoe Electric's ongoing engineering and environmental plans. Water not used for underground mining, the paste backfill plant, the
process plant, and the on/off heap leach pad will be pumped to storage reservoirs. Rapid infiltration basins are used to capture stormwater
or non-contact water (runoff associated with processing facilities). Contact stormwater will be collected in sumps or ponds and reincorporated
into the process circuit as feasible.
Water quality predictions
indicate that extracted groundwater quality generally meets agriculture standards and does not show mining-related impact. Predicted
water quality is considered acceptable for irrigation use when applied to suitable crops (e.g., cotton, alfalfa, pasture grasses) commonly
grown in the vicinity of the Project. Water quality predictions are highly reliant on predicted flow volumes and the current mine plan
which assumes that mined or excavated zones will be completely backfilled. The water distribution system is designed to distribute water
to agricultural end-users, without treatment. If required in the future, a side-stream water treatment plant could be permitted and used
to treat mine inflow groundwater that does not meet the standards required for on-site or off-site uses.
15.1.7.1 Water
Balance
Life Cycle Geo,
LLC (“LCG”) developed an operational site-wide water balance (“SWWB”) model with the objective of evaluating
the Project’s site-wide water management strategy throughout the operational life of mine. The model simulates water demands, water
inventories, storage requirements, and water movement between facilities to assess water availability and support management of the operational
water supply.
The specific objectives
of the SWWB model were to:
■ Simulate
site-wide water flows and water losses throughout the operational LOM;
■ Evaluate
the Project water management strategy relative to applicable environmental and permitting
requirements;
■ Identify
potential water management risks, uncertainties and data gaps;
■ Support
Project planning, design optimization and regulatory submissions.
The SWWB is a dynamic,
mass-balance model that simulates inputs, transfers, storage, reuse and losses across key Project facilities, and was developed using
the GoldSim platform (GoldSim Technology Group, 2025). The current SWWB is based on historical climate conditions and employs
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operational
inputs from annual production schedules and PFS design information. The model is intended to provide a planning-level assessment of average
annual water management requirements. Simulations were conducted from September 1, 2026, through December 31, 2051, encompassing
Project construction, mining operations and closure. Throughout the LOM, principal water sources include groundwater supply wells, groundwater
captured through mine dewatering, and stormwater runoff collected within the Project footprint. Primary water losses and consumptive
uses include evaporation, infiltration, and water consumed by mining activities (mineral processing, mining, facility demands).
During construction
and early operations, groundwater production wells will provide water supply for the Project. As underground development advances and
mine inflows increase, residual passive inflows (“RPIs”) captured by mine dewatering are expected to become the primary source
of water supply once the dewatering rates meet or exceed operational water demands. Key facilities and processes simulated in the SWWB
and include:
■ Tunnel
boring machine (“TBM”) operations;
■ Underground
RPIs;
■ Crushing
and agglomeration
■ Heap
leach operations and SX/EW facilities;
■ Lined
process solution ponds;
■ Stormwater
management ponds and sumps (contact and non-contact water);
■ General
facility water demands (e.g., dust suppression, fire suppression).
Non-contact stormwater
runoff is anticipated to be collected and routed to designated stormwater ponds for storage and management. This water may be used, as
needed within the contact water (heap leach) circuit to supplement operational water needs and help reduce reliance on non-contact RPIs.
Additional conceptual details and schematics, and details of water balance model calculations and inputs are provided in LCG (2026a,
b, c, and d).
Results
from the SWWB indicate that the Project is expected to transition from an initial water deficit during construction and early operations
to a sustained net water surplus during the remainder of Operations. This transition is driven by increasing groundwater inflows to the
underground mine as the development of the decline progresses below the water table and RPIs become available through underground dewatering.
During the early years of the Project, water demands associated with construction activities, heap leach commissioning, process pond
inventory development and facility startup exceed available on-site water resources, resulting in a temporary reliance on groundwater
production wells. As mine development advances and groundwater inflows increase, recovered mine water becomes the dominant source of
water supply and eventually exceeds operational water demands. Figure 15-3 graphically represents
water supply and demand over the modeling period.
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Source: LCG, 2026
Figure 15-3:
Water Supply and Demand Over Time for the Project
15.1.8 Built Infrastructure
15.1.8.1 Camps &
Accommodation
On-site accommodations
facilities are neither required nor planned. Personnel will reside in nearby settlements including Casa Grande, Maricopa, the Phoenix
metropolitan area, and Tucson, and will commute to site by vehicle. Parking, security, fencing, and a gatehouse are included in the design.
15.1.8.2 Ancillary
Buildings
The following is
a list of infrastructure buildings to be built on site:
■ Explosive
magazine storage;
■ Cap
magazine storage;
■ Core
shack;
■ Process
lab;
■ Security
/ main gate;
■ Fueling
station;
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■ Mine/plant
operations building;
■ Change
house / mine dry;
■ First
aid and emergency rescue facilities;
■ Mining
facility warehouse.
15.2 QP Opinion
Worley, LCG, and
Burns & McDonnell are of the opinion that the infrastructure needs and sources are well-understood and have been interpreted
from reliable studies and evaluations by experts in this field.
The level of assessment
and design are appropriate for level of engineering and represent good industry practice.
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16. Market
Study
16.1 Market Information
Ocean Partners
(2025) completed a market study for Ivanhoe Electric on copper and precious metals for the Project. BBA reviewed the study and has summarized
the findings of this study in this section.
Copper is a globally
traded commodity that has established benchmark pricing in the form of exchanges such as the London Metals Exchange (“LME”)
or Commodity Exchange Inc. (“COMEX”). Copper obtained from mining is sold as a concentrate, copper cathode, or as a precipitate
with high copper content.
The Santa Cruz
Copper Project aims to produce copper cathode. Ivanhoe Electric plans to sell the copper in the United States.
Refined copper
cathodes will be sold with reference to the COMEX or LME price at an agreed-upon quotational period. An additional premium to the price
will be negotiated with potential buyers. Factors affecting the premium will include the shape and chemical specification of the cathode,
together with the geographical location of the delivery point in relation to where the cathode is going to be consumed.
16.2 Study Price & Sales
Terms
The Economic Model
used a base copper price of $4.75/lb, which is based on a review of the one-, three-, and five-year trailing averages, as well as consensus
forecasts from major banks and Ocean Partners.
Due to the shape,
chemical composition, and origin point of the copper cathode, it is expected that a premium to the price will be negotiated with potential
buyers that is marginally above the historical average. For financial modeling purposes, this premium is estimated at $0.14 per pound
($300 per tonne) (Ocean Partners, 2025). The copper price is summarized in Table 16-1.
Table 16-1:
Copper Price Summary
Metric
Unit
Total
Copper
$/lb
4.75
Copper
Cathode Premium
$/lb
0.14
Total
$/lb
4.89
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BBA cautions that
price forecasting is an inherently forward-looking exercise that is dependent upon numerous assumptions. The uncertainty around timing
of supply and demand forces has the potential to create a volatile price environment, and BBA fully expects that the price will move
significantly above and below the selected price over the life of the Project.
Given the expected
volatility, BBA believes the selected price is a reasonable estimate for evaluating a long-term mining asset (20+ years). It aligns with
both historical and anticipated long-term pricing.
Table 16-2
summarizes the one-, three-, and five-year trailing price for copper using the LME Grade A monthly average as well as consensus forecasts
from the major banks (CIBC, 2025).
Table 16-2:
Commodity Price Summary
LME
Trailing Average ($/lb)
Forecast
($/lb)
1-Year
3-Year
5-Year
2026
2027
2028
2029
Long-term
BBA1
5.66
4.64
4.39
Banks
Forecast2
5.97
5.94
5.78
5.69
5.03
Notes:
1. BBA, Metal Pricing_R00, September 2026.
2. CIBC Consensus Commodity Prices –
September 2026.
LME
= London Metals Exchange.
16.3 Contracts
At this time, a
limited number of contracts with vendors, contractors, or manufacturers including for the TBM with The Robbins Company, along with long
lead items to support onsite power and the SX/EW plant have been executed. Additional major contracts that will be required include:
■ Contract
labor for underground access and ventilation;
■ Major
material procurement for all process facilities and electrical infrastructure;
■ Power
purchase agreements for renewables and grid power, inclusive of local utility;
■ Contract
labor for process and surface infrastructure construction.
Copper cathode
will be sold at mine-gate.
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17. Environmental
Studies, Permitting & Plans, Negotiations or Agreements with Local Individuals or
Groups
17.1 Baseline & Supporting
Studies
17.1.1 Flora & Fauna
Undisturbed
uplands within and surrounding the Property are open with a shrubland community dominated by creosote bush (Larrea
tridentata), saltbush (Atriplex spp.), burroweed (Isocoma tenuisecta), desert ironwood (Olneya tesota), barrel
cactus (Echinocactus spp.), white thorn (Vachellia constricta), and cruxifixion thorn (Castela emoryi), along with
occasional desert ironwood (Olneya tesota) and velvet mesquite shrubs (Prosopis velutina). Much of the Project area contains
abandoned agricultural fields. These abandoned agricultural areas contain the same vegetation community as the less-disturbed areas but
with an appreciably higher annual grass and forb component. The North Branch Santa Cruz Wash supports xeroriparian vegetation dominated
by velvet mesquite, wolfberry (Lycium sp.) creosote bush, and crucifixion thorn. Desert broom (Baccharis sarothroides),
Mexican palo verde (Parkinsonia aculeata), desert hackberry (Celtis ehrenbergiana), cocklebur (Xanthium strumarium),
and non-native and invasive tamarisk (Tamarix sp.) are present along the North Branch Santa Cruz Wash in low densities, as well
as a lone Fremont cottonwood (Populus fremontii) in the Project vicinity. Bermuda grass (Cynodon dactylon) and other grasses
and forbs line the irrigation levee that confines the Santa Cruz Wash.
Wildlife species
observed within or close to the Property include coyote (Canis latrans), javelina (Tayassu tajacu), gray fox (Urocyon
cinereoargenteus), round-tailed ground squirrel (Xerospermophilus tereticaudus), common raven (Corvus corax), phainopepla
(Phainopepla nitens), Cooper’s hawk (Accipiter cooperii), great blue heron (Ardea herodias), mourning dove
(Zenaida macroura), black-tailed jackrabbit (Lepus californicus), greater roadrunner (Geococcyx californianus),
turkey vulture (Cathartes aura), and hummingbird spp. (family Trochilidae). Carp spp. (family Cyprinidae) and catfish
spp. (family Ictaluridae) have been observed in the East Main canal bordering a portion of the southwest corner of the Project
area. Additional wildlife species documented by Ivanhoe Electric on trail cameras in the Project vicinity include American badger (Taxidea
taxus), bobcat (Lynx rufus), racoon (Procyon lotor), desert iguana (Dipsosaurus dorsalis), and Gambel’s
quail (Callipepila gambelii). These wildlife species are typical of the local landscape and reflective of the mixed land use of
the Property and surroundings which include active and abandoned agricultural fields, irrigation canals, ponds, and undeveloped Sonoran
Desert.
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17.1.2 Special Status Species
Special-status
species include species designated by the United States Fish and Wildlife Service (“USFWS”) as endangered, threatened, proposed
for listing, or candidate for listing under the Endangered Species Act (“ESA”) and species protected under the Bald
and Golden Eagle Protection Act.
The federal protection
status, known suitable habitat, total range, and distribution in Arizona was evaluated, and it was determined that there are no ESA-listed
species with potential to occur within the Project area. Monarch butterfly (Danaus Plexippus), an ESA-proposed threatened species,
has some potential to occur in the Project area due to the presence of potentially suitable foraging habitat, though there are no known
observations of this species in the Project area. No United States Fish and Wildlife Service-designated or proposed critical habitat
occurs within the Project area. A search of the Arizona Game and Fish Department Heritage Data Management System Online Environmental
Review Tool identified no records of species listed, proposed for listing, or candidates for listing under the ESA within 5 miles (8 km)
of the Project area.
Two Bald and
Golden Eagle Protection Act species (golden eagle and bald eagle) were determined to have some potential to occur within the Project
area. A review of publicly-available bald eagle sighting records in the area (eBird, 2025) show eagles perching on transmission poles
and irrigation pivots to the west of the Project area, likely foraging in the agricultural fields, irrigation canals, and ponds. There
are no breeding behavior observations in the records. An incidental take permit from the United States Fish and Wildlife Service may
be required for construction activities within 660 ft (201 m) or blasting within a half mile (0.8 km) of an active eagle nest. As there
are no known eagle nests in the area at this time, the Project is not expected to require an incidental take permit. Bald eagle use of
the properties to the west of the Project will continue to be tracked, and best management practices will be implemented to protect bald
eagles as required.
A Special-Status
Species Management Plan was developed and implemented for the Santa Cruz Copper Project. The Special-Status Species Management Plan describes
best management practices for special-status species with potential to occur in the Project area. Special-status species included in
the Special-Status Species Management Plan consist of those protected under the Endangered Species Act, Bald and Golden Eagle Protection
Act, and Migratory Bird Treaty Act. In addition to these federally covered species, Best Management Practices are also included for
International Union of Conservation of Nature Red List species, general wildlife and native vegetation.
The Project has
been designed to avoid impacts to these special-status species to the extent practical. Where avoidance is not practicable, the Special-Status
Species Management Plan has
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been designed to minimize impacts to special-status species within the Project area, unless authorized by
the United States Fish and Wildlife Service.
Ivanhoe Electric
will continue monitoring changes in special-status plant and animal species protections throughout the life of the Project and update
the Special-Status Species Management Plan accordingly.
17.1.3 Migratory Bird Treaty Act
The Migratory
Bird Treaty Act is intended to ensure the sustainability of all protected migratory bird species and currently includes protection
of 1,106 avian species. During active construction, pre-construction clearance surveys are conducted weekly within the Project area to
avoid the incidental take of migratory birds. A Special Purpose permit has been obtained from the United States Fish and Wildlife Service
to authorize relocation of migratory bird species, including viable eggs or chicks, if they are located in a critical area that will
impact their safety or if their presence creates human health and safety risks. All practicable avoidance and minimization measures will
be employed prior to relocation and/or collapse of any burrows or nests. Threatened and/or endangered species, Bald and Golden Eagles,
and Birds of Conservation Concern are not authorized under this permit. Relocation of Migratory Bird Treaty Act species is conducted
by a qualified biologist. Nestlings and eggs are transported to a United States Fish and Wildlife Services permitted party for conditioning
and release. The Special Purpose permit must be renewed annually.
Nesting migratory
bird species identified in the Project area include the horned lark (Eremophila alpestris), red-tailed hawk (Buteo jamaicensis),
mourning dove (Zenaida macroura), band-tailed pigeon (Colombidea sp.), nighthawk (Chordeilinae sp.), verdin (Auriparus
flaviceps), northern mockingbird (mimus polyglottos) cactus wren (Campylorhynchus brunneicapillus), raven (Corvus
corax), ground sparrow (Spizella pusilla), greater roadrunner (Geococcyx californianus), and western burrowing owl
(Athene cunicularia ssp. hypugaea) (WestLand, 2023, 2024, and 2026).
All employees and
contractors are trained on Migratory Bird Treaty Act requirements, Worker’s Environmental Awareness Program, and the Project’s
migratory bird survey and monitoring protocols. Pre-construction clearance surveys and implementation of beneficial practices, procedures
to protect migratory bird species, and necessary relocation per the Special Purpose permit will continue throughout the life of the Project.
17.1.4 Surface Water Mapping
Under Section 404
of the Clean Water Act the United States Army Corps of Engineers is responsible for regulating the discharge of fill to surface
water features determined to be Waters of the United States. A geographical information system (“GIS”) delineation of the
ordinary high-water mark
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within the surface water features of the Project area was developed, using current, publicly available aerial
photography and subsequent, targeted field reconnaissance. This delineation was created based on the practices typically used by the
United States Army Corps of Engineers in assessing ephemeral channels in the arid southwest.
Much of the Project
area has been previously disturbed from its natural state. These disturbances include flood control features, such as the canal identified
as the Santa Cruz Wash Canal, paved and unpaved roads, and agricultural practices. These disturbances have removed all potential natural
surface water features that may have existed in the area. The only features within the Project area that possess characteristics of an
ordinary high-water mark are the North Branch of the Santa Cruz Wash and the constructed Santa Cruz Wash Canal.
The North Branch
of the Santa Cruz Wash is the downgradient extension of the Santa Cruz River between the Santa Cruz Flats to the south and the confluence
with the Gila River to the north. This feature possesses the characteristics of an ordinary high-water mark, including changes in soil
character, debris, scour, and an abrupt change in plant communities. Based on the observed vegetation, it is possible that the channels
of this feature may possess adjacent wetlands. The constructed Santa Cruz Wash Canal also serves a similar function as the North Branch,
namely channeling flows from the Santa Cruz River northward through the City of Maricopa and the Ak-Chin Indian Community, towards the
confluence with the Gila River to the north.
The Santa Cruz
Copper Project area has an approved jurisdictional delineation in which the United States Army Corps of Engineers determined that the
portion of the Santa Cruz Wash running through the Project area is ephemeral. The U.S. Supreme Court decision in Sackett v. the Environmental
Protection Agency invalidated portions of the March 20, 2023, definition of waters of the United States (the 2023 WOTUS Rule), including
use of the concept of “significant nexus” for determining Clean Water Act jurisdiction. Under the current definition
of waters of the United States, amended on September 8, 2023, to conform to the Sackett decision [88 Fed. Reg. 61964 (the Conforming
Rule)], tributaries like the features within the Santa Cruz Copper Project area must be “relatively permanent standing or continuously
flowing bodies of water” to be jurisdictional waters of the United States. Given the United States Army Corps of Engineers’
previous determination that the tributaries within the Project area are ephemeral, it would be reasonable to assume that these features
cannot be Waters of the United States under the Conforming Rule.
The Arizona Department
of Environmental Quality (“ADEQ”) has identified washes and tributaries previously regarded as potentially Waters of the
United States before the Sackett decision as non-Waters of the United States but protected by the State. The Santa Cruz River between
Baumgartner Road and the Ak-Chin Indian Community falls into this category and has been identified as water that is non-Waters of the
United States but protected by the State. Although the language specifying the reach of the Santa Cruz Wash can be found in the code,
the exact path between Baumgartner Road and the Ak-Chin Indian Community has not been identified by
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the ADEQ. The Project area is within
the general geographic location identified in the administrative code. Ivanhoe Electric will adhere to the requirements of the State
and not discharge into the wash without appropriate permits in place.
The United States
Army Corps of Engineers retains the final authority for determining the presence of Waters of the United States and, to date, has not
been asked to provide its concurrence with this delineation. However, the Project has been designed to avoid impacting potential Waters
of the United States and is not expected to require a permit under Section 404 of the Clean Water Act.
17.1.5 Cultural Heritage
An archeological
evaluation of the Project area was completed in 2005 and 2006 (Foster et al., 2006). In 2022, Ivanhoe Electric completed a Class III
cultural survey to reassess 20 previously recorded sites (Middleton, 2022) and their eligibility for listing in the National Register
of Historic Places. Of the 20 sites reassessed, five sites were eligible for listing in the National Register of Historic Places: two
Euro-American sites and three prehistoric ancestral sites. Despite there being no federal permitting or requirements under Section 106
of the National Prehistoric Preservation Act for private lands, the Ivanhoe Electric team is committed to working directly with
descendant communities to help preserve and protect places of important cultural value. Ivanhoe Electric has developed and implemented
an archeological Monitoring and Discovery Plan for the three National Register of Historic Places -eligible prehistoric ancestral sites
located within the Santa Cruz Copper Project area. Although Ivanhoe Electric intends to avoid significant ancestral sites during Project
development, it is necessary to both monitor and preserve the known prehistoric archeological resources in the long-term and to have
a designated protocol in case of inadvertent discovery during earth-moving activities outside of known site boundaries.
17.1.6 Air Quality
Ivanhoe Electric
holds a Class II Air Quality permit from the Pinal County Air Quality Control District to meet power requirements during early construction
of the Santa Cruz Copper Project. Ivanhoe Electric recently submitted a minor permit revision to authorize additional emission sources
associated with the tunnel boring machine development. The existing permit and revision supports the Project’s early construction
needs while a major amendment will be necessary for full construction and operations.
The Project obtains
fugitive dust permits and will continue to update and renew annually, as required, to manage dust from mining, material handling, transportation,
stockpiling, and wind erosion, ensuring compliance with tailored dust control measures. Situated in the West Pinal
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County PM10 non-attainment area, the Project
will adopt targeted dust mitigation strategies suitable for the arid climate, adhering to local and state regulations.
Key air pollutants
include dust (i.e., windblown dust, mining activities, and material handling), and combustion emissions (i.e., generators and other fuel-burning
equipment). The Project will amend the Class II air quality permit to include process emission sources for the full life of mine
and is expected to be classified as a synthetic minor source. As a synthetic minor source, emissions will be kept below major source
thresholds through operational limits and control technologies. Mitigation strategies encompass water sprays and enclosures for material
handling, enhanced dust suppression (e.g., chemical suppressants, paved roads, reduced speed limits, limiting operations during high
winds), emission controls for generators to minimize combustion emissions, and ongoing monitoring, maintenance, and staff training to
ensure effective emission controls and regulatory compliance.
17.1.7 Carbon Intensity
Ivanhoe Electric
performed a carbon impact assessment for the Santa Cruz Copper Project, analyzing Scope 1 and Scope 2 emissions over the evaluated development
and operating period, and compared the Project’s carbon intensity to copper mining industry benchmarks. Scope 1 emissions, stemming
from on-site fuel combustion, explosives, and refrigerant leaks, were calculated using emission factors from the United States Code of
Federal Regulations and industry standards. Scope 2 emissions, arising from electricity used for ore crushing, material movement, processing
operations, and ancillary operations, were estimated using the 2023 Arizona State Output Emission Rate from the United States Environmental
Protection Agency’s Emissions & Generation Resource Integrated Database (“eGRID”).
The assessment
assumes that 70% of Project electricity consumption is supplied as clean electricity with zero direct emissions. Arizona-average eGRID
emission factors were adjusted by multiplying by (1 − 70%)/(1 − 42%), accounting for Arizona’s 42% baseline clean-generation
share and the Project’s assumed 30% non-clean electricity share. This planning approximation represents the remaining electricity
using the inferred Arizona non-clean generation mix, pending confirmation of the applicable supply mix and emission factors from ED3,
the Project’s electricity supplier. Under this scenario, cumulative avoided Scope 2 emissions are approximately 1.95 million metric
tonnes of carbon dioxide equivalent (CO2e) over 2027–2052, relative to the unadjusted Arizona-average electricity baseline
(Figure 17-1). Global warming potentials are drawn from Table A-1 to Subpart A of 40 CFR Part 98, converting greenhouse gas
emissions into carbon dioxide equivalent.
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Technical Report Summary, Santa Cruz Copper Project, Arizona
Source: Tipple Consulting, 2026.
Figure 17-1:
Scope 1 & 2 CO2e Emissions & Avoided Emissions
The Santa Cruz
Copper Project anticipates an average carbon intensity of 1.94 tonnes of carbon dioxide-equivalent per tonne of recovered copper cathode
across the evaluated LOM period, including a 10% contingency to account for uncertainty associated with ongoing detailed design. This
is comparable to the unweighted average combined Scope 1 and Scope 2 carbon intensity of 1.92 tonnes carbon dioxide-equivalent per tonne
of paid copper-equivalent production for the 56 leach and SX/EW operations evaluated using Wood Mackenzie’s Q1 2026 operational
emissions-intensity dataset. Because the Wood Mackenzie dataset includes different mining and recovery configurations and uses paid copper-equivalent
production as its denominator, the comparison is indicative rather than strictly like-for-like. By producing only copper cathode, the
Project avoids emissions from downstream smelting and refining of copper concentrate.
The assumed clean-electricity
share lowers the Project’s estimated carbon intensity; Figure 17-2 presents annual emissions, recovered copper production,
annual carbon intensities, and the LOM intensity.
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Note: Carbon intensity is elevated in
2027 and 2028 because relatively low copper production results in higher emissions per tonne of recovered copper. No annual carbon intensity
is calculated for 2052 because no copper is recovered that year. However, Scope 1 and Scope 2 emissions from all years, including 2052,
are included in the LOM average carbon intensity. The figure assumes 70% clean electricity. Annual emissions and annual carbon intensities
exclude contingency. The life-of-mine carbon intensity includes a 10% contingency to account for uncertainty associated with ongoing
detailed design. Source: Tipple Consulting, 2026.
Figure 17-2:
Annual CO2e Emissions & Intensities
17.1.8 Surface Water Monitoring
A surface water
monitoring program was implemented in January 2024. Surface water samples are collected and analyzed from three locations on site:
the Santa Cruz Wash Canal, the North Branch of the Santa Cruz Wash, and the confluence of both surface waterbodies as they exit the Project
site. Samples are collected and analyzed quarterly.
The
objective of baseline surface water sampling activities is to evaluate the current condition of surface water in the North Branch of
the Santa Cruz Wash and the Santa Cruz Wash Canal. Baseline data will inform parties of conditions
in the canal and wash prior to the onset of mining activities and help inform Ivanhoe Electric of any potential impacts to these bodies
of water in the future.
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17.1.9 Groundwater Monitoring &
Water Quality
17.1.9.1 Historical
Water Quality
Area water quality,
summarized from a dataset spanning 77 wells with data collected from 1977 to 2002, was reviewed (Life Cycle Geo, 2023; 2026b) to understand
historical baseline conditions. Review of the historic water quality indicates that area bedrock and overburden water quality generally
meet ADEQ Numeric Aquifer Water Quality Standards (“AWQS”) with a few exceptions:
■ Water
quality in many overburden wells exceeds AWQS for gross alpha, 15 picocuries per liter (“pCi/L”),
with concentrations as high as 50 pCi/L (uncorrected for natural uranium or radon);
■ Numerous
overburden and a few bedrock wells indicate arsenic above AWQS (0.01 mg/L) with concentrations
approaching 0.04-0.05 mg/L;
■ Nitrate
concentrations in a number of overburden wells exceed AWQS (44 mg/L) with concentrations
as high as 55 mg/L.
It is inferred
that elevated baseline nitrate concentrations are associated with area agricultural activities, whereas the arsenic and gross alpha exceedances
are likely tied to local, natural water-rock reactions between overburden/mineralized bedrock and baseline groundwater, as supported
by results from the materials characterization program.
17.1.9.2 Current
Water Quality
The current, on-going
baseline water quality monitoring program was initiated in October 2023 and comprises four historic overburden wells, two new overburden
wells, and five new deeper bedrock wells. Sampling frequency was monthly through 2024, with the aim of developing a reliable seasonal
baseline, and has continued since then on a quarterly basis. The analytical suite is comprehensive, including all parameters listed in
R18-11-406 ADEQ AWQS, including inorganic anions and cations, dissolved metals and trace elements, herbicides, pesticides, chlorinated
acids, radioactive parameters, and organic molecules including polycyclic aromatic hydrocarbons, semi-volatile organic compounds, volatile
organic compounds, and polychlorinated biphenyls.
A summary of predominant
overburden and bedrock water quality is as follows:
■ pH:
Overburden pH is typically circumneutral (mean = 7.3), with the majority of measurements
between pH 6 and 8. Mean bedrock pH is higher (mean = 8.7), with the majority of measurements
ranging from pH 8 to 10;
■ ORP:
Conditions in the bedrock, as expected, are on average more reducing (mean = -173.5 mV) than
those in the overburden (mean = +24.3 mV);
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■ Major
ion chemistry: Both overburden and bedrock wells are chloride-sodium-sulfate predominant
waters. Overburden wells have considerably higher calcium and magnesium concentrations (81
and 16 mg/L, respectively) than bedrock wells (29 and 1 mg/L, respectively), reflecting equilibrium
with carbonate minerals, which are common in overburden and relatively scarce in the bedrock;
■ Trace
element chemistry:
- Under
the AWQS for arsenic (0.01 mg/L), baseline exceedances occur at multiple overburden and bedrock
wells;
- Each
bedrock well regularly exceeds the AWQS (4 mg/L) for fluoride;
- Each
overburden well except one regularly exceeds gross alpha AWQS; gross alpha exceedances occur
in three bedrock wells but are more sporadic;
- Bedrock
wells exhibit persistent baseline exceedances of both radium-226 and radium-228;
- ADEQ
has implemented a new AWQS for uranium (0.03 mg/L). Most overburden wells will have periodic
baseline exceedances;
- Sporadic
and isolated baseline exceedances occur for chromium and nitrite.
For operational
water management purposes, both bedrock and overburden have clear, distinct multivariate water quality fingerprints that make them easily
classifiable and segregable. Overburden wells can be identified primarily based on correlation between calcium, magnesium, strontium,
uranium and pH while bedrock wells can be identified based on correlation between alkalinity, fluoride, potassium, sodium, and lithium
(this is statistical correlation and does not imply these parameters are necessarily greater in concentration).
17.1.10 Material Characterization &
Water Quality Predictions
Material characterization
studies were initiated in 2022 and are mostly complete, although various studies are still ongoing. The purpose of these studies is to
advance the site environmental conceptual model and to understand both long-term material environmental characteristics and the environmental
risks associated with various planned mine facilities and underground workings. More specific objectives include identifying material
types (or classes) to be managed (e.g., ore vs. waste vs. borrow), providing segregation criteria for each type, developing long-term
water quality predictions, and evaluating materials and water management alternatives.
A more detailed
summary of the characterization program and results is provided in Life Cycle Geo (2026c). Sample numbers for materials selected for
characterization were proportional to projected excavated mass for each material type based on Project mine planning and geometallurgical
testing. Sampling and testing also accounted for the estimated diversity of lithological, mineralogical, mineralization, oxidation, alteration,
and environmental characteristics
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observed in exploration drill core and processed mine materials. The material characterization team
also relied on prior experience with the geochemistry of porphyry copper deposits in Arizona and elsewhere to provide guidance and conceptual
framing for this program.
The environmental
characterization test program was developed both to meet Arizona Best Available Demonstrated Control Technology (“BADCT”)
guidance for permitting purposes and to support Project feasibility, design, and future operational and post-closure needs. The program
follows the general tiered approach prescribed in the BADCT manual (ADEQ, 2005) as follows:
■ Tier
1 static testing:
- Tier
IA methods include acid-base accounting (“ABA”) and bulk chemistry conducted
on the entire subset;
- Tier
IB methods include the meteoric water mobility procedure (“MWMP”) leach test
and mineralogy by x-ray diffraction (“XRD”) conducted on a subset of the Tier
1A materials.
■ Tier
2 kinetic testing:
- Longer-term
(typically minimum of 40 weeks to 1 year) humidity cell leach tests conducted on an even
smaller subset selected to best represent the range of materials and environmental characteristics
observed in Tier 1 test results.
In all, the test
program is robust, consisting of 64/13/2 Tier 1A, Tier 1B and Tier 2 tests, respectively, conducted on mine access materials (Phase A),
196/70/24 tests conducted on mine area materials (Phase B), and 4/4/3 tests conducted on mine process materials (spent ore). Additional
characterization testing was conducted on cemented paste backfill (“CPB”) to assess the environmental characteristics of
spent ore blended with cementitious binder and returned underground as structural backfill.
17.1.10.1 Mine
Material Types
Anticipated mine
material types can be developed into three broad Project classes, as follows:
■ Mine
access material (Phase A): includes both overburden and bedrock material that must be
mined to access the targeted mineralized area. The mine-access material will be stored on
the surface during or after development of underground access to the mine area;
■ Mine
area material (Phase B): includes mineralized bedrock that will be excavated predominantly
as ore for processing, with accompanying minor waste rock;
■ Mine
processing residuals: includes spent ore from laboratory bench-scale leach column residues
and CPB produced from combining the spent ore residues with cement binder.
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17.1.11 Mine Material Environmental Behavior
17.1.11.1 Overburden
Overburden materials associated with the mine
access decline contain very low to non-detectable levels of sulfide and total sulfur, the source of acid generating potential (“AGP”),
and variable levels of acid neutralizing potential (“ANP”). ANP consistently exceeds AGP, therefore overburden materials
can be safely classified as non-potentially acid generating (“NPAG”). The considerable sources of ANP indicate that overburden
material is potentially useful as borrow/construction material that would not generate acidic and associated metalliferous drainage (“AMD”).
Overburden material also exhibits low-level arsenic and uranium leaching potential, although this is mitigated by the fact that these
constituents already exceed AWQS in baseline area groundwater. Abundant calcium and magnesium in overburden aquifers confirm the groundwater
is well buffered by neutralizing carbonate minerals. Drainage from overburden material can be expected to have a neutral to slightly
alkaline pH with low sulfate concentrations.
17.1.11.2 Bedrock
Bedrock materials comprise the entire mine area
and a portion of the mine access decline and consist predominantly of granitic Precambrian basement and mineralizing Tertiary intrusives.
The intrusive hydrothermal events mineralized the host and introduced variable amounts of sulfide minerals, which were later oxidized
by supergene weathering events. Little carbonate exists in these igneous units. As such, the bedrock materials have variable acid-generating
characteristics. Approximately 56% of Precambrian and 62% of Tertiary intrusives are classified as potentially acid generating (“PAG”),
with the remainder classified as NPAG. Long-term humidity cell tests (“HCT”) confirm that more sulfide-rich bedrock material
below the oxide and supergene alteration zones (e.g., those with higher AGP and lower ANP samples) have the potential to become acidic
in under a year with pH as low as 2.5, although most humidity cells produce a mildly acidic to circumneutral leachate during reaction
periods of up to 55 weeks. As expected, chalcophile metals leaching would accompany any materials that become acidic.
Drainage water quality for mine area and mine
access bedrock materials generally indicates circumneutral to alkaline leach and relatively low potential for metal release. High sulfide/lower
ANP samples have the potential to produce a leachate below pH 6 with higher sulfate and metals release, and such materials should be
managed accordingly.
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17.1.11.3 Process
Materials
All spent ore materials were classified as PAG
and produced acidic leachate in long-term kinetic tests. Short-term acidity is produced from unrinsed process porewater generated by
copper beneficiation while longer-term acidity is tied to oxidation of residual sulfides in the spent ore. Acidic leachates show consistently
low pH values between 3.0 and 4.5.
The addition of cement binder to spent ore to
form CPB effectively neutralizes spent ore acidity, substantially increases ANP and changes the material classification to NPAG. CPB
produces a strongly-alkaline leachate, often greater than pH 10.5. CPB is expected to maintain its alkaline character following underground
placement and remain NPAG over LOM and in closure.
17.1.11.4 Water
Quality Predictions
Life Cycle Geo, LLC has developed water quality
predictions through development of an underground water quality model (“UGWQM”) to evaluate water management requirements
over the Project’s operational LOM. During this period, dry working conditions are planned through a dewatering collection system;
the current model does not evaluate post-closure conditions after dewatering has ceased and groundwater levels recover.
The conceptual model that underpins the UGWQM
incorporates the following concepts and processes:
■ Sulfide
oxidation that may occur (depending on the availability and transport of atmospheric oxygen)
in the damaged rock zone (“DRZ”), a zone of increased fracturing and permeability
in stope and tunnel walls created as a result of drilling, blasting and excavation.
■ Geochemical
heterogeneity intended to account for bulk behavior associated with lithological differences,
degree and extent of rock fracturing, oxygen availability, groundwater flow, and mine methods.
■ Emplacement
of CPB in underground workings to refill stope voids, stabilize tunnel walls, minimize rock
fall and provide structural support. The model accounts for potential reactivity of the cemented
spent ore. CPB also acts as a low-permeability barrier that reduces the flux of both oxygen
and water by sealing fractures and voids that could otherwise serve as preferential pathways
that could promote more rapid and extensive sulfide oxidation.
■ Mine
dewatering and seepage are conceptualized as an integrated flow network in which water
collected at individual mining levels is pumped to higher levels, where it mixes with inflows
from other underground areas prior to conveyance to the surface. The model framework simulates
this as a centralized, fully mixed network. Passive inflow rates are taken from the site
groundwater flow model (INTERA, 2026).
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Additional details regarding the model framework,
model inputs (RPI rates, mine plan implementation, sulfide oxidation rates/advance/extent, DRZ parameters, oxygen diffusion rates, source
terms and loading rates, and scaling factors) model implementation, and assumptions and limitations are provided in Life Cycle Geo (2026d).
The modeling approach includes development of
a Base Case and Upper Case scenario, as well as two scenarios that evaluate leaching from CPB. The Base Case represents average expected
conditions, whereas the Upper Case reflects a reasonable upper bound condition. Model results indicate that dewatering water chemistry
is predominantly influenced by baseline overburden and bedrock water quality, with additional contributions from wall rock solute loading.
The predicted concentrations show a strong dependence on mine progression and RPI rates. As mining advances, increasing exposure of reactive
wall rock results in greater solute loading, contributing to gradual increases in dissolve solute over time.
Key model results can be summarized as follows:
■ Arsenic
and uranium exceedances can be expected under all model scenarios given that RPI is expected
to be dominated by alluvial and, to a lesser extent, bedrock, groundwater, which naturally
exceed for these constituents;
■ Exceedances
of other constituents are considered unlikely as long as the following operational conditions
are met:
- CPB
effectively seals underground voids so that oxygen and water flux into the DRZ are limited
and sulfide oxidation cannot progress to any significant extent;
- RPI
rates remain at the flux currently projected; lower volumes of inflowing groundwater flushing
the same amount of underground workings could theoretically result in higher mass loading/concentrations.
17.1.12 Soil Handling
Environmental studies completed to date, including
Phase II Environmental Site Assessment soil sampling and the associated industrial hygiene evaluation, provide the technical basis for
incorporating work location-specific soil management and dust control measures into Project construction procedures, as warranted. Final
reporting for the ongoing soil sampling program should be reviewed, as needed, to determine whether any site-specific soil handing, dust
suppression, additional sampling, or worker hygiene measures should be incorporated in the environmental management and execution plans.
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17.2 Permitting &
Authorizations
The primary permits for the Project will require
state, county, and local authorizations. Several of these permits have been issued for early construction. Other permits for full construction
and operations activities are in preparation or have been submitted. Table 17-1 lists the major federal, state, and local permits
required for the Project.
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Table 17-1: Permits Table
Jurisdiction
Agency
Permit
Needed & Description
Comment
Federal
US
Environmental Protection Agency
Resource
Conservation and Recovery Act – Hazardous Waste Management
Waste
accumulation threshold will determine when hazardous waste ID number (permit) is required.
Federal
US
Fish and Wildlife Service
Migratory
Bird Treaty Act
Ongoing
monitoring and implementation of beneficial practices throughout the life of the Project. Special Purpose permit approved by USFWS,
effective May 4, 2026. Annual reporting and renewal required.
State
Arizona
Department of Environmental Quality (”ADEQ”)
Class V
Underground Injection Control Permit for mine backfill
Determination
of Applicability received from ADEQ March 17, 2026. Confirms mine backfill material meets definition of inert. Expect to submit
application for Permit-by-rule.
State
Arizona
Department of Environmental Quality
Aquifer
Protection Permit (“APP”)
Area-wide
APP application submitted May 8, 2026, and is currently under review. General Permit Type 2.02, 3.01, and 3.03 approved October 16,
2025, for Temporary Rock Stockpile, Water Impoundments, and Vehicle and Equipment Washes, respectively.
State
Arizona
Department of Water Resources
45-513
– Groundwater Withdrawal Permit to withdraw groundwater for dewatering purposes in an Active Management Area
Project
is within the Pinal Active Management Area. Application is in preparation.
State
Arizona
State Mine Inspector (“ASMI”)
Mined
Land Reclamation Plan
Construction
level Mined Land Reclamation Plan has been approved by the ASMI. A preliminary closure cost estimate has been developed for the operational
Mined Land Reclamation Plan.
State
Arizona
Department of Transportation (“ADOT”)
Encroachment
Permit for access off Hwy 84
Traffic
impact analysis completed. Recommended road improvement designs and Encroachment permit application submitted to ADOT for review.
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Jurisdiction
Agency
Permit
Needed & Description
Comment
County
Pinal
County Air Quality Control District
Air
Quality Control Permit – determined by quantity of emissions from stationary sources and process emissions
Required
for any industrial operation that has the potential to emit 5.5 pounds per day or 1 ton per year of any regulated air pollutant is
required to obtain a permit from Pinal County Air Quality. Submitted March 2025 for construction activities and under agency
review. A Class II Air Quality permit for construction was received in August 2025. A minor revision was submitted on August 12,
2026, and is currently under review. A major revision for full operations is in preparation.
County
Pinal
County Air Quality Control District
Pinal
County Dust Control Permit – West Pinal Non-Attainment
Existing
permit in place and renewed annually.
City
City
of Casa Grande
Special
Flood Hazard Area Development Permit for proposed development within a floodplain
Likely
not required as facilities have been designed to avoid development within Special Flood Hazard Areas.
City
City
of Casa Grande
General
Plan Amendment – major amendment to city plan
Required
to include mining operations and infrastructure within city limits. Obtained June 2024.
City
City
of Casa Grande
Planned
Area Development Plan – major amendment to existing plan
Required
to accommodate industrial use/mining operations in a Planned Area Development zone. Obtained February 2025.
City
City
of Casa Grande
Major
Site Plan/ Site Development Plan
Required
prior to construction to ensure Project compliance with city zoning, engineering, traffic, drainage, parking, landscaping, and public
safety requirements. Plans for construction were approved March 2026. An amendment to the Development Plan was submitted August 2026.
An amendment to the Major Site Plan and Development Plan will be required for full operations.
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The following permits have been obtained for
early construction activities:
■ Arizona
State Mine Inspector Mined Land Reclamation Plan;
■ Pinal
County Dust Control Permit (renewed annually);
■ Pinal
County Air Quality Control District Class II Air Permit;
■ Arizona
Department of Environmental Quality General Aquifer Protection Permits for water impoundments,
temporary truck wash, and temporary rock stockpile;
■ City
of Casa Grande Major Site Plan/Development Plan;
■ City
of Casa Grande Special Flood Hazard Area Development Permit (issued for exploration activities.
Likely not needed for construction as flood plains have been avoided).
The following permit applications or amendments
for full construction and operations activities are in preparation or have been submitted:
■ Pinal
County Air Quality Control District Class II Air Permit (obtained for early construction
activities, amendment for full construction operations in process);
■ Arizona
Department of Water Resources 45-513 Groundwater Withdrawal Permit (application in preparation);
■ Arizona
Department of Transportation Encroachment Permit for access off Highway 84 (submitted and
under review);
■ Arizona
Department of Environmental Quality Class V Underground Injection Control Permit (for
mine backfill);
■ Arizona
Department of Environmental Quality APPs for the heap leach and spent ore storage facilities
(submitted May 2026 and under substantive review).
Land use authorizations from the City of Casa
Grande, including a Major General Plan Amendment and Major Amendment to a Planned Area Development Zoning, have been obtained to allow
mining activities and infrastructure within the Project site.
17.3 Waste & Spent Ore Disposal, Site Monitoring, &
Water Management
This section discusses the requirements and plans
for waste and spent ore disposal, site monitoring, and water management during operations and after mine closure. Operators must demonstrate
within their mine plans and permit applications that pollutant discharges will be prevented or managed to prevent contaminants of concern
from traveling beyond points of compliance. Arizona Best Available Demonstrated Control Technology stipulates the following for planning
for materials and water management and design of storage facilities:
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■ Applicant
must develop a waste characterization plan for the ADEQ. A site-specific sampling and analysis
plan has been submitted to the ADEQ and is continuously revised as new test material becomes
available.
■ Waste
facilities can be designed with pre-designated engineered containment (prescriptive approach)
under the assumption that facilities will be discharging, and that the discharge will require
management.
■ Waste
facilities can also be individually designed, which places the burden on the operator to
demonstrate facility discharge will not result in downgradient impacts to aquifer, vadose
zone, or land surface.
■ Required
long-term monitoring for compliance with facility APP will be dictated by the conditions
of the permit.
Based on Arizona Best Available Demonstrated
Control Technology guidance for materials and water management and the results of characterization testing performed to date, the following
plans will be required for waste and spent ore disposal, site monitoring, and water management during operations and following mine closure:
■ Metal
Leaching/Acid Rock Drainage Management Plan – Must include definitions and classification
criteria for potentially metal-leaching and acid-generating materials, handling and storage
plan, monitoring plan, sampling plan, and contingency plan.
■ Heap
Leach and Spent Ore Operations, Maintenance, and Surveillance Manual – Must include
information such as governance, facility description, operational requirements, maintenance
requirements, surveillance requirements, and linkages with the emergency response plan.
■ Site-wide
Water Management Plan – Must include information specific to the leaching and spent
ore facilities, protection against floods, seepage management, discharge management,
risks of discharge to the receiving environment, water quality and quantity mitigation measures,
and a trigger response plan for upset conditions.
■ Site-wide
Surface Water and Groundwater Monitoring Plan – Must include information such as monitoring
objectives, methods, rationale for the monitoring locations/depths, water quality parameters
to be monitored, sampling frequency and period, analytical testing procedures, QA/QC methods,
and reporting requirements.
■ Post-Closure
Monitoring and Maintenance Plan – Must include information specific to the heap leach
and spent ore facilities, such as environmental monitoring requirements, annual safety inspections,
and post-closure maintenance requirements for the closure cover system and stormwater controls.
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17.4 Post-Performance or Reclamations Bonds
The eventual closure and reclamation of the Santa
Cruz Copper Project will be regulated under two interconnected regulatory programs. Both programs are well-established in Arizona and
the statutes and rules are subject to licensing timeframes. The agencies are required by statute to issue approvals when credible
applications are deemed administratively and technically complete.
■ Arizona
Revised Statutes authorizes the Arizona State Mine Inspector to establish mined land reclamation
requirements. The Arizona State Mine Inspector’s primary role in this context is the
approval (or denial) of mined land reclamation plans submitted by all metalliferous and aggregate
mining units and exploration operations with surface disturbances greater than five acres
on private lands.
■ Arizona
Revised Statutes also authorizes the ADEQ to regulate discharges (or potential discharges)
to an aquifer or vadose zone in the State or requires those who operate a facility that discharges
to obtain an APP. While considered an operational permit, the APP program also considers
the eventual cessation of operations and the restoration of vadose and aquifer conditions.
17.5 Status of Permit Applications
17.5.1 Arizona State Mine Inspector – Reclamation Plan
Exploration and early construction activities
conducted by Ivanhoe Electric are subject to the exploration and construction level reclamation plan, which was approved September 1,
2025 (Mined Land Reclamation Plan Amendment for Exploration and Construction Activities for Santa Cruz Copper Project).
Ivanhoe Electric must submit and obtain approval
for an amended mined land reclamation plan prior to initiating full mining operations. The plan can be developed once Ivanhoe Electric
has completed at least 75% design drawings for all surface disturbances and structures at the site. The closure of discharging facilities
as defined in APP rules (such as heap leach and spent ore storage units, process ponds and waste rock stockpiles) must be included
within the approved plan even though the detailed plans to closing these facilities are also documented in the APP and approved by the
ADEQ.
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17.5.2 Arizona Department of Environmental Quality – Aquifer
Protection Permit
Future mining operations that are the subject
of this document will require an approved APP as established in Section 2, Title 49 of the Arizona Revised Statutes. The APP facilities
required to support decline development and construction activities are authorized under general permits for contact water ponds, a temporary
stockpile, and a truck wash, approved October 16, 2025. An application for an Areawide APP application was submitted to ADEQ on
May 8, 2026 (Application for an Individual APP for the Santa Cruz Copper Project) and has been deemed administratively complete.
Substantive ADEQ review is in progress.
Plans for the closure of discharging facilities
as defined in APP rules (such as heap leach and spent ore repositories, process ponds and waste rock stockpiles) must be included
within the approved reclamation plan even though the detailed plans and approach to closing these facilities are documented in the APP
and approved by the ADEQ.
17.5.3 Known Requirements for Post-Performance or Reclamation Bonds
As
described in Sections 17.5.1 and 17.5.2, the Project is subject to both the Arizona State Mine Inspector’s mined land reclamation
requirements and the ADEQ’s APP requirements. The Project currently has a Mined Land
Reclamation Plan bond in place for exploration and early construction activities, and that bond will be modified for full construction
and operations when the operational reclamation plan is approved. In addition, Ivanhoe Electric will be required to provide a separate
financial assurance mechanism for APP-regulated facilities following approval of the APP. The estimated bond amount for both the APP
and the operational Mined Land Reclamation Plan is approximately $27 million.
The
required financial assurance instruments must be provided within 60 days of approval of
the applicable Mined Land Reclamation Plan and APP. Permitted bonding mechanisms may include instruments acceptable to the relevant regulatory
agency, and the two instruments will be structured to reflect only the distinct obligations applicable to each regulatory program. Arizona
law prohibits duplicative bonding requirements.
17.6 Mine Closure
The present level of design considered in this
document was sufficient to generate an Areawide APP application, submitted to ADEQ on May 8, 2026 (Application for the Santa Cruz
Copper Project). Approval of this plan is recommended prior to facility construction and required prior to operation. The present level
of design considered in this document is sufficient to generate a Mined Land Reclamation Plan, which is currently in preparation for
submission and approval by the Arizona State Mine Inspector.
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It is possible, based on the revised conceptual mine plans and facility
layout discussed herein, to outline certain closure and reclamation obligations and approaches for the specific site elements described
in the subsections below.
17.6.1 Waste, Development Rock, Heap Leach & Spent Ore
Closure & Reclamation Approach
Required geochemical characterization will inform
the need as well as means and methods for capping and covering these materials to prevent stormwater contamination and seepage that
could impact the vadose zone or underlying aquifer. If characterization of these materials suggest that the “wastes” are
geochemically inert, then isolation measures needed to prevent water-rock interactions are rendered unnecessary. Although preliminary
geochemical evaluations are favorable, sufficient geochemical modeling has not been completed to determine if these materials will be
inert.
The Arizona State Mine Inspector will not address
or review the adequacy of closure or capping systems in the reclamation plan. However, the Arizona State Mine Inspector will require
a geotechnical analysis to demonstrate that the stockpiles are safe and stable under static and pseudo-static conditions.
17.6.2 General Grading & Revegetation Approach
There are typically no grading or revegetation
requirements included in an approved APP.
The Arizona State Mine Inspector-approved reclamation
plan will address all grading, site recontouring, and revegetation requirements. To the extent practicable, the plan will recommend grading
and recontouring to restore surface topography and drainage patterns. Roads and other compacted areas must be ripped and scarified to
encourage the success of revegetation efforts. Material stockpiles should be graded and contoured to reduce erosive effects of rainfall
events, enhance long-term stability, and reduce ponding and infiltration.
Inert materials (such as broken concrete and
asphalt) generated from facility decommissioning activities can be buried on site without a permit, provided those materials are categorically
inert or are determined to be inert via approved testing protocols.
17.6.3 Process Area & Pond Closure Reclamation Approach
The approved closure approach will require that
all process liquids, reagents, and solid residues be removed from the ponds and leaching circuits. These facilities can be rinsed with
the resultant liquids evaporated, but any remaining sludges and sediments must be characterized and profiled for off-site transportation
and disposal or recovery in accordance with APP and hazardous waste
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rules and regulations. Once drained and cleaned, pond liners
can be perforated and buried on site or transported from the Property as solid waste.
Remaining surface depressions will be regraded
to achieve the safe and stable condition requirements of the reclamation rules. These efforts will be addressed in the general grading
and reclamation approach discussed in the Reclamation Plan.
17.6.4 Structural Decommissioning Approach
The ADEQ-approved APP closure plan will not specifically
address the decommissioning of surface structures aside from the requirement that any process liquids or residues are not discharged
in an uncontrolled manner.
The Arizona State Mine Inspector-approved reclamation
plan will address structural decommissioning efforts to the extent that closure cost estimates include the demolition and removal of
all surface facilities not specifically excluded from the plan. The Arizona State Mine Inspector rules do allow for the retention
of specific structures such as water wells, utility infrastructure, or buildings where these structures can enhance the productive post-mining
use of the Property. These facilities must be specifically identified in the approved plan and excluded from reclamation.
All solid wastes, laboratory and assay chemicals,
and general household wastes must be removed from the structures prior to structural decommissioning. These materials must be recycled
or characterized and profiled for appropriate off-site transportation and disposal.
Inert materials (such as broken concrete and
asphalt) generated from facility decommissioning activities can be buried on site without permit provided those materials are categorically
inert or are determined to be inert via approved testing protocols. These efforts would typically be addressed in the general grading
and reclamation approach section of the reclamation plan.
17.6.5 Underground Operations Closure Approach
All fuels, chemicals, wastes, and explosives
used in the development and operation of underground operations will be removed and disposed to prevent potential impacts to mine flooding.
Fluid-containing equipment and machinery left underground must be drained and any contaminated materials must be removed and properly
disposed.
The underground workings are planned to be partially
backfilled with a cemented paste backfill. According to a Determination of Applicability letter from ADEQ dated March 17, 2026,
the Cemented Paste Backfill was found to meet the definition of “inert” under A.R.S. § 49-201.22 because it is not acid
generating and it does not leach constituents at concentrations above the
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Aquifer Water Quality Standards. Arizona Department of Environmental
Quality further found that the Cemented Paste Backfill also meets the exemption from the Aquifer Protection Program for storage, treatment,
or disposal of inert material under the Arizona Revised Statutes. The Determination of Applicability therefore indicated that no APP
would be required for the underground workings. The Reclamation Plan to be approved by the Arizona State Mine Inspector will require
that the mine portal and any associated escape or ventilation shafts be appropriately closed and sealed to establish long-term safety
and stability of the site.
17.6.6 Aquifer Restoration & Post-Closure Monitoring Approach
Post-closure monitoring related to the APP may
include confirmation sampling related to the clean closure of any process areas or individual discharging facilities and the long-term
monitoring of groundwater conditions across the site following closure. Ivanhoe Electric will be required to maintain, survey, and routinely
sample the monitoring well network, including the various point-of-compliance wells, until such time as groundwater conditions have stabilized
and regulated constituents of interest are not at risk of exceeding an alert level at any of the points of compliance. It is estimated
that post-closure monitoring will be required for at least 10 years, depending on the speed at which the aquifer recovers from dewatering
and aquifer conditions stabilize. Once groundwater conditions have stabilized and ADEQ grants closure, Ivanhoe Electric must abandon
all monitoring and point-of-compliance wells in accordance with the APP and Arizona Department of Water Resources well abandonment guidelines.
The Arizona State Mine Inspector-approved reclamation
plan will require site monitoring to document the effectiveness of grading and reclamation efforts including the success of revegetation.
The plan will require the maintenance of fencing, signage and other site barriers, the removal of trash or wildcat dumping, and the repair
of any erosion damage to capped and covered structures. Following revegetation success after at least four growing seasons, the Arizona
State Mine Inspector can determine that the site has been successfully reclaimed and return all or part of the reclamation bond established
with the Arizona State Mine Inspector.
Certain facilities (like a spent ore repository,
for instance) may not achieve clean closure and would thus require long-term monitoring and periodic involvement by the Engineer of Record.
Depending on the geochemical characteristics of the repository waste, how quickly these facilities dewater, and the long-term stability
of the containment areas, certain types of legacy facilities may not ever be released and declared closed. Characterization and design
efforts at the site are progressing and will determine the long-term closure requirements of any facilities.
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17.7 Local Individuals & Groups
In alignment with Ivanhoe Electric’s community
engagement and partnership standards, the Santa Cruz Copper Project is being developed with a well-defined strategy to establish and
uphold the support of the surrounding communities. At present, the Project is continuing outreach with Native American communities that
have ancestral ties to the land, community outreach with local stakeholders, community involvement, and is actively assessing potential
partnerships within the local community.
Ivanhoe Electric recognizes the need to keep
stakeholders well informed about the Project’s potential economic and community benefits and Ivanhoe Electric’s commitment
to safety and the environment. To achieve this, the Ivanhoe Electric team continues engagement with various key groups, including local
community leaders, neighboring communities, and regional- and state-level representatives. A community working group has been implemented
and has been meeting quarterly since November 2023. Consistent communication will continue through the community working group platform.
This group provides a forum for stakeholder involvement and allows interested community members to engage with the team and stay informed
about the Project as it progresses.
A Community Comments and Questions process has
been developed and was implemented in April 2026 to provide communities with a safe, accessible, and trusted way to raise questions
or inquire about the Project and receive timely feedback.
Furthermore, the Ivanhoe Electric team recognizes
the potential impacts of noise and dust from the proposed activities and is taking proactive steps to address them. During the facility
design phase, engineering controls will be incorporated to minimize noise and dust disturbances and maintain harmony with the surrounding
community. Ivanhoe Electric plans to create an all-encompassing environmental, social, and governance framework designed to effectively
address community concerns and ensure that the Santa Cruz Copper Project operates in a socially responsible manner.
As additional funding is being sought from commercial
banks for the proposed Project, an Environmental and Social Impact Assessment (“ESIA”) is being prepared to assess potential
impacts using the requirements of the Equator Principles (“EP4”) and standard international industry best practice,
as exemplified by the International Finance Corporation’s Performance Standards on Environmental and Social Sustainability (“IFC
PS”).
The ESIA will also incorporate relevant international
guidance on Good International Industry Practice (“GIIP”), including the IFC PS and human health guidelines established by
the World Health Organization.
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This ESIA will present a statement of the potential
environmental and social impacts and benefits from the construction, operation, and closure of the Project, and will include a description
of the measures that are required to be implemented to avoid, minimize, manage and monitor environmental and social risks and impacts
and enhance Project benefits.
17.8 QP Opinion
Haley & Aldrich, Inc. is of the
opinion that this report adequately addresses the federal and state permitting and closure standards that will impact the closure and
reclamation of the Project.
Life Cycle Geo, LLC is of the opinion that this
report adequately addresses the environmental assessments, including geochemical materials characterization and baseline water quality
studies. The work performed meets industry standards, reflects current regulatory requirements, and is appropriate for the current level
of design and planning.
Tetra Tech is of the opinion that this report
adequately addresses environmental assessments, permits, and plans, as well as negotiations and agreements with local entities. The plans
and permitting requirements are adequate for the current level of design and planning.
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18. Capital &
Operating Costs
18.1 Basis for Cost Estimates
Accurate estimation of capital and operating
costs is fundamental to assessing the economic viability of a proposed project. Together with projected revenues and other anticipated
expenses, these cost estimates provide the foundation for the financial analysis detailed in Section 19.
For the Santa Cruz Copper Project, capital and
operating costs were determined based on the mine plan, crushing, heap leach and SX/EW plant design. The estimation process incorporated
assessments of material and labor requirements derived from the design, analysis of the process flowsheet, and anticipated consumption
of power and supplies.
All capital and operating cost estimates meet
the requirements of S-K 1300, with an expected accuracy of -20% to +25%. A contingency of <15% has been applied to capital cost estimates.
All pricing is considered in Q2 2026 dollars. Inflation or escalation are not considered.
Cost estimation is based on a combination of
vendor and consumable quotes and internal database. Approximately 80% of the capital estimate is based on detailed quotes with estimated
labor installation. For the purposes of this study, initial capital expenditure is assumed to be costs incurred in 2027, 2028, and the
first half of 2029. By July of 2029, ore production has been established and the process plant infrastructure has been installed
to begin copper production. Additional mine and plant capital costs are incurred from 2029 and 2050 to continue meeting mine ramp up
and production demands and are included in sustaining capital costs.
Standard rates for fuel and power were used in
the estimate and are summarized as follows:
■ Diesel
fuel cost of 0.97$/L;
■ Current
electricity rate of 0.14632 $/kWh until 2028;
■ Estimated
electricity rate of 0.08542 $/kWh from 2029 to end of mine life.
18.1.1 Mining Costs
Mining equipment requirements were determined
based on the mine production schedule and estimates for scheduled production time, mechanical availability, equipment utilization, and
operating efficiency. Annual operating hours for each equipment type were projected, with the assumption that each unit will be used
until it reaches its planned service life, after which replacement units will be added to the fleet as necessary. The capital cost estimate
for mining equipment also includes major equipment rebuild (overhaul) costs.
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The mining equipment capital cost estimate is
based on the following assumptions:
■ All
replacement units are assumed to be new purchases;
■ Freight
and spare parts costs were included in the equipment costs;
■ Equipment
rebuilds are included at appropriate intervals within the capital cost estimate;
■ Contingency
is included in the mining equipment capital cost estimate, ranging from 5% (where budgetary
quotes are available) to 14.9% (for estimates based on first-principles build-ups).
Labor estimates were based on unit rates, MTOs
and installation factors for an underground operation based on first-principles build-ups.
All consumables estimates were based on first-principles
build-ups.
18.1.2 Process and Infrastructure Costs
This section discusses the methodology for estimating
process and infrastructure capital costs.
Equipment capacities, duty specifications, and
quantities were established using process flowsheets, design criteria, mass and water balances, and engineering calculations. Design
drawings and vendor budget quotations were used to develop layouts and drawings to support the generation of MTOs for all earthworks,
concrete, steel, piping, and electrical components.
The inputs below were also used to estimate process
plant and infrastructure (non-mining) operating costs:
■ Continuous
operations, 24 hours per day and 365 days per year, with an availability of 92%, for a total
of 8,059 operating hours per year with two 12-hour shifts;
■ Shift-based
personnel work a 4-week-on, 4-week-off roster, with four shift panels;
■ Annual
throughput, head grade, and production that serve as the basis for production-based operational
parameters are based on the mine plan provided by BBA.
MTOs were priced by budget quotation or in-house
data. Estimated quantities generated through MTOs have a design allowance added to allow for overbuy, cut, and waste. Labor rates were
estimated based on in-house databases and benchmarked against local contractor quotations.
Total direct hours were calculated using a site
adjustment factor model that incorporates efficiency losses bases on craft availability, working at height, workweek, climate, and project
size.
Engineering and procurement and construction
management costs have been estimated as a percentage of the total Project cost based on historical data. Engineering and procurement,
as
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S-K 1300 Preliminary Feasibility Study &
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well as construction management services, will be provided by a combined team of Ivanhoe Electric and contract personnel.
Other indirect costs included in the estimate
are as follows:
■ Temporary
facilities, construction equipment, and construction services;
■ Freight
and logistics;
■ Spare
parts;
■ First
fills;
■ Vendor
representatives;
■ Pre-commissioning
and startup.
18.2 Capital Cost Estimate
Table 18-1
summarizes the initial and sustaining capital cost estimates for the Santa Cruz Copper Project.
Table 18-1: Estimated Total Capital Cost
Capital
Costs Summary
Initial
Cost
($M)
Sustaining
Cost
($M)
Total
LOM Capital
Cost ($M)
Preproduction
Mining Costs
50
-
50
Mining &
Paste
790
1,465
2,255
Process
384
60
444
Owners
Cost
17
-
17
Indirects
55
15
70
EPCM
49
5
54
Contingency
79
0
79
Total
Initial Capital
1,423
-
-
Total
Sustaining Capital
-
1,545
-
Reclamation
and Closure Costs
3
-121
-119
Total
Life-of-Mine Capital Costs
1,426
1,424
2,850
Note: Closure costs include land sales at the end of mine life. Totals
may not sum due to rounding.
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18.2.1 Mining Capital Costs
The total direct mining capital cost estimate
is $2,305 million, which includes $840 million of initial capital and a sustaining capital of $1,465 million.
Mine
development costs are determined from the mining schedule created by BBA (Section 13.11.8). The mine schedule includes meters of
development during the pre-production period. Site-specific rock mass characteristics and hydrogeological information were used as inputs
to estimate the cost of this development. Estimated initial capital costs by area are shown in Table 18-2.
Table 18-2: Estimated Mining Capital Cost
Mining
Capital Costs
Initial
Capital Cost
($M)
Sustaining
Cost
($M)
Total
LOM Capital
Cost ($M)
Capitalized
Operating Expenditures
50
50
Capital
Development
666
620
1,286
Mobile
Equipment
8
483
491
Mines
Services
116
361
478
Subtotal
840
1,465
2,305
Indirects
17
15
32
EPCM
9
5
14
Owners’
Cost
11
Contingency
47
47
Total
924
1,485
2,399
Sustaining capital is required to maintain mine
infrastructure critical for ongoing operations. The sustaining capital cost estimate includes costs for, construction, and commissioning
of infrastructure items.
The cost estimates are based on vendor-supplied
budgetary quotes and cost models from BBA with input from Ivanhoe Electric. Sustaining capital costs support the production schedule
over the 24-year mine life.
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18.2.2 Process Facilities & Infrastructure Capital Costs
The Santa Cruz process capital cost estimate
reflects the costs associated with the process equipment and facilities, and the infrastructure buildings and equipment.
The
total capital cost (including initial, sustaining costs and capitalized OPEX) for the Santa Cruz process facilities and surface infrastructure
totals $599 million (Table 18-3). Sustaining capital includes the second train in the SX plant, the balance of the heap leach
pad cells, and the second spent ore stockpile.
Table 18-3: Estimated Process Facilities
and Infrastructure Capital Cost Summary
SX/EW
and Surface Infrastructure
Cost Summary
Initial
Capital
Cost ($M)
Sustaining
Cost ($M)
Total
LOM Capital
Cost ($M)
Capitalized
Operating Expenditure
12
12
Crushing
95
20
115
Heap
leach
70
29
99
SX/EW
132
17
149
Surface
Infrastructure
87
8
95
Subtotal
396
74
470
Indirects
38
7
45
EPCM
39
2
41
Owners’
Cost
6
6
Contingency
32
5
37
Total
Estimate
511
88
599
18.2.3 Owner’s Costs and Indirects
Owner’s costs include the following:
■ Owner’s
engineering team
■ Community
stakeholder costs
■ Owner’s
project management team
■ Insurance
costs
■ Previous
studies and other sunk costs
■ Legal
fees
■ Front-end
engineering design study
■ Financing
costs
■ Metallurgical
testing and simulation studies
■ Taxes
■ Geotechnical
drilling and services
■ Duties
and tariffs
■ Environmental
services
■ Currency
exchange
■ Permitting
costs
■ Escalation
■ Land
acquisition costs
■ Owner’s
contingency (management reserve)
■ Operation
and maintenance manuals
■ Security
■ Startup
costs
■ Recruiting
and training
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Indirect capital costs may include the following:
■ Temporary
facilities and services;
■ Freight
and logistics;
■ Spare
parts;
■ First
fills;
■ Vendor
representation;
■ Pre-commissioning
and startup.
18.2.4 Engineering Procurement and Construction Management
Engineering procurement and construction management
(“EPCM”) includes the costs for detailed engineering for construction, procurement of major equipment and an Integrated Construction
Management team.
Detailed engineering efforts have been included
in the vendor- and contractor-supplied quotations.
18.3 Operating Cost Estimate
Total
LOM operating costs are $4.5 billion, as summarized in Table 18-4.
Table 18-4: Estimated Operating Costs
Category
$M
Total
$/t
Ore Processed
$/lb
Copper
Mining
Consumables
1,452
10.40
0.47
Mobile
Equipment
465
3.33
0.15
Labor
741
5.31
0.24
Power
251
1.80
0.08
Mine
Services and Indirect
157
1.12
0.05
Subtotal
3,066
21.95
0.99
SX/EW
Plant and Infrastructure
Consumables
285
2.04
0.09
Hauling
and Mobile Equipment
171
1.22
0.06
Labor
158
1.13
0.05
Power
365
2.61
0.12
Maintenance
68
0.49
0.02
Subtotal
1,047
7.50
0.34
G&A
418
2.99
0.14
Total
4,532
32.45
1.47
Note: Totals may not sum due to rounding. Direct operating costs are
exclusive of royalty payments.
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Mine operating costs include the following categories:
■ Consumables:
- Lateral
development;
- Production
stope preparation;
- Production
drilling;
- Production
blasting;
- Production
backfill;
- Production
drifting.
■ Mobile
equipment:
- Maintenance
costs;
- Fuel
costs;
- Battery
rentals;
- Charger
rentals.
■ Power;
■ Mine
services and indirects:
- Instrumentation,
communication, and automation;
- Ventilation;
- Maintenance;
- Others.
18.3.1 Mine Operating Costs
The mine operating cost estimate is based on
the following key inputs and assumptions:
■ Average
in-situ densities as follows:
- Ore
density 2.54 t/m3;
- Waste
density 2.51 t/m3.
■ 365
operating days per year;
■ Two
12-hour shifts per day;
■ 9.5
hours of productive time per shift;
■ Equipment
quantities are for operating development and stoping.
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Underground Labor
Key input and assumptions used to estimate the
underground labor requirement are as follows:
■ Load-Haul-Dump
(LHD):
- All
longhole stope LHDs will be operated tele-remotely from a control room throughout the shift.
High production demands will require multiple mining equipment operating on the levels, thereby
increasing the amount of interaction with the LHDs;
- All
lateral development LHDs will be operated tele-remotely from a control room only during shift
change. During shifts, they will be operated by a person in the cab. These operators will
share the duties of relocating the production LHDs within different zones.
■ Longhole
Drills:
- All
longhole drills will be operated autonomously from a control room both during shifts and
shift changes;
- Two
people in the control room will monitor the production drills, while three people will be
located underground for drill alignment and bit changes;
- Personnel
will be cross-trained in multiple equipment to increase useable hours and reduce the overall
labor requirement. For example: the same operator will be capable of operating the jumbo,
bolter, and development LHD.
Equipment Database
■ Mobile
equipment costs are a mix of financing at the beginning of the Project and purchase after
the finance period of 5 years. No financing information is available for Maclean, Chevrolet,
Toyota; therefore, the following assumptions are made:
- The
downpayment is 15% of the sale price;
- The
total cost including interest is 18% over the sale price.
Mine Service Costs
Key input and assumptions related to mine service
costs are as follows:
■ All
mine service costs for East Ridge will be carried by Santa Cruz;
■ Mine
service costs for 2027, 2028 and early 2029 are accounted for in the capital cost estimate.
The operating cost model includes mine services costs from mid-2029 to the end of mine life.
Mine Lateral Development
Key operating cost input and assumptions related
to mine lateral development are as follows:
■ 10%
of stope cuts will be rehabilitated each year carrying the cost of category 1.
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Production Stoping
Key operating cost input and assumptions for
production stoping are as follows:
■ Stope
preparation and backfill includes costs for both longhole stoping and drift-and-fill;
■ For
uppers stopes, costs for consumables have been assumed to be 10% higher.
18.3.1.1 Paste
Backfill Preparation Operating Costs
The paste preparation plant operating cost estimate
encompasses the following processing steps:
■ Spent
ore grinding;
■ Spent
ore neutralization.
The
items identified in Table 18-5 were used as primary inputs to the paste preparation plant operating cost estimate.
Table 18-5: Paste Preparation Operating
Cost Primary Inputs
Category
Unit
Value
Dry
Tonnage Processed
t/y
4,323,000*
Electricity
Rate (at Point of use) by Ivanhoe Electric
$/MWh
85.42
Quicklime
$/kg
0.39
Binder
$/t
204
Grinding
Media
$/kg
1.57
Ball
Mill Liners
$/kg
1.28
Note: * Maximum observed in 2043.
The inputs below were also used in to estimate
the paste preparation operating costs:
■ Continuous
operations, 24 hours per day and 365 days per year with two 12-hour shifts;
■ Utilization
based on mine plan backfill demand of 54 to 74% annually, for a total of approximately 4,700
to 6,500 operating hours per year.
Paste Preparation Operating Cost by Category
Paste preparation operating costs were divided
into the following four categories:
■ Labor;
■ Maintenance;
■ Consumables;
■ Electricity.
Cost for operating the paste plant and distribution
is incorporated into the mine operating costs.
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Labor
Non-mine labor requirements were determined by
Ivanhoe Electric in the form of a paste backfill material preparation plant staffing plan. In total, 7.5 persons per shift were costed
for paste backfill material preparation operations. The partial persons are maintenance staff shared with surface operations.
Maintenance
Maintenance costs were factored from the direct
capital cost estimate of mechanical, electrical, and instrumentation and controls equipment associated with the paste backfill material
preparation area. A factor of 5-15% was applied to the capital cost of mechanical equipment to determine the annual maintenance parts
cost. A factor of 2% was applied to the capital cost of electrical equipment and 2% to the capital cost of instrumentation equipment
to determine the annual maintenance parts cost. These maintenance costs exclude labor, which is included under the labor category. This
cost represents the annual spare parts and lubrication cost required to maintain the processing equipment.
Consumables
The consumption of consumables was derived from
calculations based on metallurgical testwork and first principles and priced using vendor quotations.
Electricity
The electrical rate was applied to the estimated
consumed power loads extracted from the electrical load list, which was in turn derived from the installed power of the mechanical equipment.
18.3.2 Process and Infrastructure Operating Costs
A
summary of the process and infrastructure operating costs for the mine life is presented in Table 18-6.
Table 18-6: SX/EW and Infrastructure Operating
Cost Summary for the Life of Mine
Category
Total
($M)
$/t
Ore Processed
$/lb
Copper
Consumables
285
2.04
0.09
Hauling
and Mobile Equipment
171
1.22
0.06
Labor
158
1.13
0.05
Power
365
2.61
0.12
Maintenance
68
0.49
0.02
Total
1,047
7.50
0.34
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18.3.2.1 Process
Plant Operating Cost
The process plant operating cost estimate encompasses
the following processing steps:
■ Crushing
and screening;
■ Agglomeration;
■ Ore
handling and stacking;
■ Leach
solution pumping and heap leach operations;
■ Solvent
extraction;
■ Electrowinning;
■ Reagent
storage and distribution;
■ Haulage
and storage of spent ore.
Process Plant Operating Cost by Type
The total estimated annual operating cost has
been divided into fixed and variable cost types.
Fixed processing costs include labor. Variable
processing costs include hauling and mobile equipment, maintenance, consumables, and electrical consumption.
Process Plant Operating Cost by Category
Processing plant operating costs were divided
into the following five categories:
■ Labor;
■ Hauling
and mobile equipment;
■ Maintenance;
■ Consumables;
■ Electricity.
The
LOM process plant operating costs by category are presented in Table 18-4.
Labor
In total, 114 persons were costed for processing
and infrastructure operations at an average inclusive cost of $72,688 per person.
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Hauling & Mobile Equipment
Annual diesel fuel consumption for on-site mobile
equipment is estimated based on fleet size, annual fleet operating hours, and fuel consumption for each piece of mobile equipment. A
fleet of 52 pieces of mobile equipment were assigned to the processing plant and infrastructure areas including forklifts, pickups, cranes,
grader vacuum trucks, manlifts, etc. Hauling of spent ore from the on/off pad to the paste processing area (50%) and spent ore pile
(50%) was estimated using a local contractor quotation supplied by Ivanhoe Electric of $0.60/km/m3.
Maintenance
Maintenance costs were factored from the direct
capital cost estimate of mechanical, electrical, and instrumentation and controls equipment. A factor of 5-15% was applied to the capital
cost of mechanical equipment to determine the annual maintenance parts cost. A factor of 2% was applied to the capital cost of electrical
equipment and 2% to the capital cost of instrumentation equipment to determine the annual maintenance parts cost. These maintenance costs
exclude labor, which is included under the labor category. This cost represents the annual spare parts and lubrication cost required
to maintain the processing equipment.
Consumables
Consumable consumption was derived from calculations
based on metallurgical testwork and first principles with pricing provided by vendor quotations.
Electricity
The electric rate was applied to the estimated
consumed power loads extracted from the electrical load list, which was in turn derived from the installed power of the mechanical equipment.
Power consumption during ramp-up and ramp-down years was factored based on annual throughput relative to the design annual throughput.
18.3.3 General & Administrative Operating Costs
General and administrative costs include mine
management, human resources, accounting, environmental, health and safety, laboratory, community relations, communications, legal, insurance,
training and other costs not relating to mining or processing.
SEPTEMBER 2026 18-12
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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19. Economic
Analysis
19.1 Methodology Used
BBA prepared a cash flow model to evaluate the
Santa Cruz Copper Project on a real basis. This model was prepared on a monthly basis for the first 8 years (2027 to 2034), and annual
basis for the remainder of the Project (2035 to 2052). Active mine closure starts in 2053, following passive closure which starts in
2047. This section presents the main assumptions used in the cash flow model and the resulting indicative economics.
The economic model is based on the mine plan
as outlined in Section 13. The economic results of the Project do not include inferred resources.
Capital and operating costs were developed in
Section 18 and the build-ups and associated accuracy, and contingency can be found in those sections.
All results and technical and cost information
are presented in this section on a 100% basis reflective of Ivanhoe Electric’s ownership, unless otherwise noted.
As with the capital and operating costs and pricing
forecasts, the economic analysis is inherently a forward-looking exercise. These estimates rely upon a range of assumptions and forecasts
that are subject to change depending upon macroeconomic conditions, operating strategy and new data collected through future study and
operation.
19.2 Financial Model Parameters
All costs incurred prior to the model start date
are considered sunk costs. The potential impact of these costs on the economics of the Project is not evaluated. This includes exploration
expenditures and working capital as these items are assumed to have a zero balance at model start.
The model continues several years beyond the
mine life to incorporate closure costs in the cash flow analysis.
The discount rate select is 8%. Discounting was
conducted on a mid year basis.
Start of the Project is considered January 1,
2027. All pricing is considered in Q2 2026 dollar. No inflation or escalation is considered.
SEPTEMBER 2026 19-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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19.2.1 Pricing
Modeled prices are based on prices developed
in Section 16 of this report, including copper price. Only copper cathode is modeled. Any other metals present are not considered
in the model.
19.2.2 Royalties
The Project is subject to several royalties,
as outlined in previous sections. These royalties vary in rate and area of influence. The material subject to royalties was provided
in the mining schedule and the appropriate rates were applied in the model. The royalties are calculated after the removal of the leaching
and extraction costs. This approach results in an approximate royalty rate of 6% and totaling approximately $964 million over the life
of the Project.
19.2.3 Taxes
The Project is subject to a combined state and
federal income tax rate of approximately 25%; however, the effective tax rate throughout the mine life is approximately 12%. Taxable
income is determined based on gross revenue, minus allowable deductions, including royalties, off-site costs, operating costs, tax depreciation,
depletion, and net operating losses incurred, among other specific state and federal tax adjustments. Project capital costs are depreciated
using the Modified Accelerated Cost Recovery System (“MACRS”) applicable to the specific categories of mine development and
infrastructure.
Property taxes are included in operating costs
as a line-item within G&A costs. Estimates are based on the Arizona Department of Revenue guidelines, discussions with tax experts,
and market precedents for operating mines in Arizona. Property taxes are modeled utilizing the cost approach for the initial 5 years
and split between the income and cost approaches for the remaining life of mine.
The Project is modeled as being subject to Arizona
Mineral Severance Tax payable at a rate of 2.5% on gross revenue minus allowable deductions.
19.2.4 Working Capital
The assumptions for working capital in this analysis
are summarized in Table 19-1. The change in working capital over the life of the Project is zero.
SEPTEMBER 2026 19-2
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Table 19-1: Summary of Working Capital
Working
Capital
Days
Days
per Year
365
Days
in Accounts Receivable
5
Days
of Cost of Good Sold in Inventory
10
Days
in Accounts Payable
45
Days
in Accounts Payable on Equipment
30
19.3 Economic Analysis
The economic analysis metrics are prepared on
annual pre- and after-tax basis. The results of the analysis are presented in Table 19-2. The results show that with a copper price
of $4.75/lb, a copper premium of $0.14/lb, the Project yields an after-tax net present value (“NPV”) of $1.52 billion at
8%, and an after-tax internal rate of return (“IRR”) of 18.7%, and a payback period of 4.8 years from first product.
SEPTEMBER 2026 19-3
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Table 19-2: Economic Analysis Results
Description
Units
Life
of Mine
First
15 Years
Production
Data
Mine
Life
years
24
15
Reserve
Tonnes
Mt
140
110
Copper
Grade
%
1.08
1.11
Daily
Throughput
t/d
15,346
20,030
Annual
Copper Production
t/y
58,385
74,722
Total
Copper Cathode Produced
Kt
1,401
1,121
Recovery
%
92.3
92.3
Capital
Costs
Initial
Capital with Reclamation
$M
1,426
1,426
Sustaining
Capital with Reclamation
$M
1,546
1,463
Unit
Costs
Mining
Cost
$/t
processed
21.95
21.52
Processing
Cost
$/t
processed
7.50
7.45
General
and Administrative Cost
$/t
processed
2.99
3.11
Royalties
$/t
processed
6.90
6.93
Total
Operating Cost
$/t
processed
39.35
39.00
Operating
+ Sustaining Cost
$/t
processed
50.41
52.50
C1
Cash Cost
$/lb
copper
1.47
1.42
All-in-sustaining
Cost
$/lb
copper
2.28
2.27
Financial
Analysis
Copper
Price
$/lb
4.75
4.75
Domestic
Cathode Premium1
$/lb
0.14
0.14
Pre-tax
Cashflow
$M
6,761
4,971
Pre-tax
Net Present Value (8%)
$M
1,898
-
Pre-Tax
Internal Rate of Return
%
20.2
-
After-tax
Cashflow
$M
5,575
4,133
After-tax
Net Present Value (8%)
$M
1,519
-
After-tax
Internal Rate of Return
%
18.7%
-
After-Tax
Payback Period (from first product)
year
4.8
-
1
See Section 16 for discussion on copper premium.
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This estimated cash flow is inherently forward-looking
and dependent upon numerous assumptions and forecasts, such as macroeconomic conditions, mine plans and operating strategy, that are
subject to change.
The annual and cumulative cash flows are presented
on an annual basis in Figure 19-1 and Table 19-3.
SEPTEMBER 2026 19-5
Ivanhoe Electric Inc.
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Source: BBA, 2026
Figure 19-1: Annual and Cumulative Cash
Flow
SEPTEMBER 2026 19-6
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
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Table 19-3: Cash Flow Model
Description
LOM
Total
Units
Pre-Production
Production
Closure
YR-2
YR-1
YR1
YR2
YR3
YR4
YR5
YR6
YR7
YR8
YR9
YR10
YR11
YR12
YR13
YR14
YR15
YR16
YR17
YR18
YR19-24
YR25
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047-2052
2053
SX/EW
Feed Production Tonnage
1.5
Mt
0.00
0.00
0.01
0.06
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.08
0.03
0.04
0.23
Recovered
Copper Production
3,089
Mlbs
-
-
-
23
133
175
162
172
171
169
175
160
167
170
164
165
170
166
151
63
72
459
-
Assumptions
Base
Copper Price
4.75
$/lb
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.75
4.5
Copper
Cathode Premium
0.14
$/lb
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
Total
Copper Price
4.89
$/lb
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
4.89
Gross
Revenue
15,106
$M
-
-
113
653
855
791
841
838
828
854
782
819
832
802
807
830
813
738
309
353
2,247
Operating
Costs
4,532
$M
0
0
41
187
234
235
233
246
253
249
249
248
240
229
231
241
232
213
127
127
716
Royalties
964
M
US$
0
0
13
41
54
51
54
53
52
52
47
48
50
49
51
55
54
49
20
23
147
Capital
Costs
Initial
Capital Costs
1,224
M
US$
441
576
207
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Indirect &
EPCM
120
M
US$
55
45
20
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Contingency
79
M
US$
30
38
11
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Sustaining
Capital Costs
1,546
M
US$
0
0
154
282
107
102
116
111
78
100
167
53
40
34
40
44
35
18
12
10
42
Net
Closure & Salvage Costs
-119
M
US$
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-121
Change
in Working Capital
0
M
US$
43
11
-18
0
-11
0
1
1
-2
1
6
-10
-2
-1
1
1
-1
-3
-6
-1
-2
-8
Taxes
1,185
M
US$
0
0
0
6
16
14
16
20
28
35
56
88
95
93
93
94
95
89
24
36
259
29
Cash
Flow Results
Pre-Tax
Cash Flow
6,761
M
US$
-485
-649
-352
143
448
404
439
428
443
454
326
460
501
487
486
491
491
456
144
193
1,341
113
Cumulative
Pre-Tax Cash Flow
M
US$
-485
-1,134
-1,485
-1,342
-894
-490
-51
377
820
1,274
1,600
2,059
2,560
3,048
3,534
4,024
4,515
4,971
5,115
5,307
36,584
6806
After-Tax
Cash Flow
5,575
M
US$
-485
-649
-352
137
432
390
423
409
415
419
269
372
405
395
393
396
396
367
120
156
1,082
85
Cumulative
After-Tax Cash Flow
M
US$
-485
-1,134
-1,485
-1,348
-916
-526
-103
305
720
1,139
1,409
1,780
2,185
2,580
2,974
3,370
3,766
4,133
4,253
4,409
30,279
5611
SEPTEMBER 2026 19-7
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19.4 Sensitivity Analysis
BBA performed a sensitivity analysis to determine
the relative sensitivity of the Project’s NPV to a number of key parameters (Figure 19-2). This is accomplished by flexing
each parameter upwards and downwards by 25%, except recovery which is assumed to not exceed 95%. Within the constraints of this analysis,
the Project appears to be most sensitive to copper grade and copper recovery.
BBA cautions that this sensitivity analysis is
for information only and notes that these parameters were flexed in isolation within the model and are assumed to be uncorrelated with
one another, which may not be reflective of reality. Additionally, the amount of flex in the selected parameters may violate physical
or environmental constraints present at the operation.
Source: BBA, 2026
Figure 19-2: Sensitivity Analysis Results
SEPTEMBER 2026 19-8
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20. Adjacent
Properties
There are no adjacent properties that are
relevant to the Santa Cruz Copper Project.
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21. Other
Relevant Data & Information
There is no other data or information relevant
to the Santa Cruz Copper Project.
SEPTEMBER 2026 21-1
Ivanhoe Electric Inc.
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22. Interpretations &
Conclusions
22.1 Introduction
The third-party firms who authored this
report as qualified persons note the following interpretations and conclusions in their areas of responsibility, based on review of data
available for this Report.
22.2 Property
Setting
The Santa Cruz Copper Project is located
in Arizona where mining activities have been carried out for over 100 years. The local and regional infrastructure and supply of goods
available to support mining operations is well-established. Personnel with experience in mining-related activities are available in the
district. There are excellent transportation routes that access central Arizona.
There are no significant topographic or
physiographic issues that would affect the Santa Cruz Copper Project. Vegetation is typically sparse. The most common current land use
is growing cotton and cattle feedlots.
Mining operations are expected to be able
to be conducted year-round.
22.3 Mineral
Tenure, Surface Rights, Water Rights, Royalties & Agreements
The Santa Cruz exploration area, including
the Santa Cruz Copper Project, covers 82.37 km2. In 2021, Ivanhoe Electric acquired 238 unpatented mining lode claims.
In addition, Ivanhoe Electric acquired fee simple mineral title for two further land parcels: CG100 and Skull Valley. In 2022, Ivanhoe
Electric acquired the 20-acre Skull Valley property in the southeastern area of the Project and a 100.33-acre “CG100” in
the northeastern area of the Project.
In 2023, Ivanhoe Electric acquired
16 Arizona State Land Department mineral exploration permits covering 27.95 km2 (~6,900 acres) of state mineral land. In May 2023, Ivanhoe
Electric acquired the surface title to ~24.2 km2 (5,975 acres) encompassing the Santa Cruz Copper Project.
In 2024, Ivanhoe Electric was granted
100% of the mineral title for 26.0 km2 (~6,425 acres) of fee simple mineral estate, 39 federal unpatented mining lode claims,
and 2.6 km2 (~642.5 acres) of Stock-Raising Homestead Act lands.
Ivanhoe Electric acquired grandfathered
irrigation rights and grandfathered Type 1 non-irrigation water rights in association with the private land purchased in 2023 and holds
all necessary water rights for the life of mine plan envisaged in this Report.
SEPTEMBER 2026 22-1
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There are numerous royalties that apply
to the property and planned mining operations. Royalty payments vary depending on the amount of refined copper produced and the net smelter
return values.
To the extent known to BBA, there are no
other known significant factors and risks that may affect access, title, or the right or ability to perform work on the properties that
comprise the Santa Cruz Copper Project that are not discussed in this report.
22.4 Geology &
Mineralization
The deposits within the Santa Cruz Copper
Project area are considered to be porphyry copper deposits of the Southwestern Porphyry Belt, defined by a combination of hypogene and
supergene mineralization segmented by normal faults.
The geological understanding of the mineralogy,
lithology, alteration, and structural controls on mineralization is sufficient to support estimation of Mineral Resources and Mineral
Reserves and can support mine planning.
22.5 History
The Project area has over 60 years of exploration
history conducted by various operators targeting definition and expansion of copper mineralization.
22.6 Exploration,
Drilling & Sampling
Drilling within the Santa Cruz Copper Project
totals 484 drillholes for 354,655 m of drilling. Of this total, 329 drillholes for 279,164 m were used in support of the Mineral Resource
estimate. Drilling is predominantly vertically-oriented from the surface, which is appropriate to intersect the sub-horizontal mineralization.
Sampling methods, sample preparation, analysis
and security conducted prior to Ivanhoe Electric’s involvement were in accordance with exploration practices and industry standards
at the time the information was collected. Current sampling methods are acceptable for Mineral Resource and Mineral Reserve estimation.
Sample preparation, analysis and security are currently performed in accordance with general industry standards.
Current QA/QC protocols meet industry standard
insertion rates for blanks, standards, and duplicates. These control samples adequately control issues with contamination, precision,
accuracy, and sampling errors. Assay and geological information collected from drillholes is considered sufficient for interpretation
of the deposit and Mineral Resource estimation.
SEPTEMBER 2026 22-2
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Geotechnical data were used to develop an
understanding of the rock quality throughout the deposits and surrounding rocks and to plan ground support methods.
A three-dimensional numerical groundwater
model was constructed to understand the groundwater system and predict water inflows during mining operations. The groundwater flow model
indicates residual passive inflows over the life of the mine at or below 7,200 gallons per minute.
22.7 Data
Verification
Validation checks performed by Ivanhoe Electric
personnel on data used to support estimation comprise checks on surveys, collar coordinates, lithology data (cross-checking from photographs
and core library), and assay data. Errors were rectified in the database prior to data being approved for use in resource estimation.
Reviews performed by external consultants
were undertaken in support of pre-feasibility level studies and in support of technical reports, producing independent assessments of
the database quality. No significant problems with the database, sampling protocols, flowsheets, check analysis program, or data storage
were noted.
BBA considers a reasonable level of verification
has been completed, and that no material issues have been unidentified from the programs undertaken.
BBA requested that information, conclusions,
and recommendations presented in the body of this Report be reviewed by Ivanhoe Electric staff as a further level of data verification.
Feedback from the reviewers was incorporated into the Report as required.
BBA reviewed the reports and are of the
opinion that the data verification programs completed on the data collected from the Project are consistent with industry best practices
and that the database is sufficiently error-free to support the geological interpretations and Mineral Resource and Mineral Reserve estimation,
and mine planning.
22.8 Metallurgical
Testwork
Metallurgical studies have been conducted
to evaluate alternative process flowsheet configurations, including the chosen flowsheet of weak acid, chloride-assisted, heap leaching.
As the Project prepares to advance to detailed engineering and construction, it is recommended that leach test work continues to quantify
best operating conditions for the heap leach pad and SX/EW, and provide input to the engineering design.
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22.9 Mineral
Resource Estimates
All mineralogical information, exploration
drill data, and background information were provided to BBA by Ivanhoe Electric.
Mineral Resources are reported using the
Mineral Resource definitions set out in S-K 1300 and are reported inclusive and exclusive of Mineral Reserves. The reference point for
the estimate is in-situ. Mineral Resources are reported on a 100% ownership basis.
Factors that may affect the Mineral Resource
estimates include: changes to long-term metal price assumptions; changes to the input values for mining, processing, and general and
administrative costs to constrain the estimate; changes to local interpretations of mineralization geometry and continuity of mineralized
subdomains; changes to the density values applied to the mineralized zones; changes to metallurgical recovery assumptions; changes in
assumptions of marketability of the final product; variations in geotechnical, hydrogeological, and mining assumptions; changes to assumptions
with an existing agreement or new agreements; changes to environmental, permitting, and social license assumptions; logistics of securing
and moving adequate services, labor, and supplies could be affected by epidemics, pandemics, and other public health crises, or geopolitical
influence.
22.10 Mineral
Reserve Estimates
Mineral Reserves were converted from Indicated
Mineral Resources. Inferred Mineral Resources were not converted to Mineral Reserves; however, if Inferred Mineral Resources fell within
the Mineral Reserve designs, they were assumed to have zero grade.
All current Mineral Reserves will be exploited
using underground mining methods. Mineral Reserves were estimated using longhole stoping and drift-and-fill methods. Mineral Resources
were converted to Mineral Reserves using a detailed mine plan, an engineering analysis, and consideration of modifying factors. Modifying
factors include the consideration of dilution and ore losses, underground mining methods, metallurgical recoveries, permitting, and infrastructure
requirements.
Mineral Reserves are reported using the
definitions set out in S-K 1300. The reference point for the estimate is the point of delivery to the process facilities. Mineral Reserves
are reported on a 100% ownership basis.
Factors that may affect the Mineral Reserve
estimate include: changes to long-term metal price assumptions; changes to metallurgical recovery assumptions; changes to the input assumptions
used to derive the mineable shapes applicable to the assumed underground and open pit mining methods used to constrain the estimate;
changes to the forecast dilution and mining recovery
SEPTEMBER 2026 22-4
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assumptions; changes to the cutoff grades used to constrain the estimate; variations
in geotechnical (including seismicity), hydrogeological, mining, and processing recovery assumptions; and changes to environmental, permitting,
and social license assumptions.
22.11 Mining
Methods
Mining operations can be conducted year-round.
Underground mining will be conducted using
conventional longhole stoping or drift-and-fill methods. Access to the mine will be via a portal and a single ramp developed using a
TBM. A mixed fleet of BEV and diesel equipment will be used.
The underground mine plans are based on
current geotechnical, hydrogeological, mining, and processing information.
The life of mine plan assumes 140.1 Mt of
ore will be mined and treated.
22.12 Recovery
Methods
The designs for the process facilities were
based on metallurgical testwork. The designs are conventional to the global copper industry.
Factors that may produce variations in recovery
are due to the day-to-day changes in ore type or combinations of ore type being processed. These variations are expected to trend to
the forecast recovery value for monthly, or longer, reporting periods.
22.13 Infrastructure
New infrastructure will be required to support
proposed operations for the Santa Cruz Copper Project. Power will be transmitted from a local provider to on-site substations. The water
management system will be installed to collect mine dewatering, contact, and non-contact water, stormwater, and process water.
Structures will be installed on site to
support administration, maintenance, laboratory testing, emergency services, security, change-house, and mine warehouse facilities.
SEPTEMBER 2026 22-5
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22.14 Market
Studies
A price of $4.75 per pound of copper is
based on a review of the 1-, 3-, and 5-year trailing averages, as well as consensus forecasts from major banks and Ocean Partners.
Due to the shape, chemical composition,
and origin point of the cathode, it is expected that a premium to the price will be negotiated with potential buyers that is marginally
above the historical average; this premium is estimated at $0.14 per pound ($300 per tonne).
A limited number of contracts with vendors,
contractors, or manufacturers including for the TBM with The Robbins Company, along with long-lead items to support on-site power and
the SX/EW plant, have been executed. Additional major contracts will be required. Copper cathode will be sold at mine gate.
22.15 Environmental,
Permitting & Social Considerations
Baseline and supporting environmental studies
were completed to assess pre-existing environmental and social conditions and to support decision-making processes during permitting,
design, construction, operations, and closure. Characterization studies were completed for flora and fauna, special status species, surface
water mapping, air quality, cultural resources, soils, climate risk, groundwater quality, and material environmental behavior.
A 2023 Phase I Environmental Site Assessment,
completed by Environmental Site Assessments, Inc. identified an aquifer exemption on a small portion of the property and agrochemical
contamination of soils in former crop fields. The aquifer exemption is representative of a controlled recognized environmental condition.
Further assessment of the agrochemical contamination has been completed prior to earthwork in these areas, and the available results
indicate that the condition is localized and can be managed by avoidance or through location-specific soil handling, dust suppression,
and worker hygiene measures, as appropriate.
Plans were developed and implemented to
address aspects of operations such as waste management, migratory bird protection measures, sensitive status species protection, fugitive
dust management, reclamation, spill prevention and contingency planning, water management, and noise levels.
Stakeholder engagement is a primary pillar
of Ivanhoe Electric’s community relations and social performance strategy and includes development of a community working group,
participation, sponsorship, and support in local activities; city council and county meetings; serving on boards and committees; and
one-to-one engagement. From this engagement, Ivanhoe Electric listens to, and partners with, local organizations to identify a social
investment strategy.
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S-K 1300 Preliminary Feasibility Study &
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At present, the Project is continuing outreach
with Native American communities that have ancestral ties to the land. In addition, community outreach with local stakeholders, and community
involvement continues, and potential partnerships are actively being pursued and/or assessed.
22.16 Capital
Cost Estimates
All capital and operating cost estimates
meet the requirements of S-K 1300 with an expected accuracy of -20% to +25%. A contingency of <15% has been applied to capital cost
estimates. All pricing is considered in Q2 2026 dollars. Inflation or escalation are not considered.
Capital costs included funding for infrastructure,
underground ventilation, underground dewatering, underground mine equipment, and surface equipment.
The overall capital cost estimate for the
life of mine is $2.85 billion.
22.17 Operating
Cost Estimates
Operating costs were based on estimations
and are projected through the LOM plan, and are at minimum at a prefeasibility level of confidence, having an accuracy level of –
20% to +25%. No contingency was applied to operating cost estimates.
Costs were estimated from supplier-issued
quotes. Labor and energy costs were based on budgeted rates applied to headcounts and energy consumption estimates.
The LOM operating costs are estimated at
$5.49 billion. The average mining costs over the life of mine are $21.95/t processed, process costs are $7.50/t processed, and general
and administrative costs are $2.99/t processed.
22.18 Economic
Analysis
Based on the cash flow model, the after-tax
financial model resulted in an IRR of 18.7% and an NPV of $1.52 billion using an 8% discount rate. The after-tax payback period, after
start of operations, is 4.8 years.
The pre-tax base case financial model resulted
in an IRR of 20.2% and an NPV of $1.90 B using an 8% discount rate.
The Santa Cruz Copper Project contemplates
average annual copper cathode production of approximately 75,000 tonnes for the first 15 years of copper production and the average annual
production is approximately 58,000 tonnes for the life of mine.
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S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
The total mine life is 24 years at an average
C1 cash cost of $1.47 per pound of copper and sustaining cash costs of $2.28 per pound of copper.
A sensitivity analysis was completed by
flexing each parameter upwards and downwards by 25%, except recovery which is assumed to not exceed 95%. Within the constraints of this
analysis, the Project appears to be most sensitive to copper grade and copper price.
22.19 Risks &
Opportunities
Mining projects share internal and external
risks that could affect the Project's reliability, confidence, and/or economic viability. External risks are generally applicable to
all mining projects, such as the political situation in the Project’s region, metal prices, exchange rates, and government legislation.
22.19.1 Risks
The risks associated with the Santa Cruz
Copper Project are generally those expected with underground mining operations and include the accuracy of the Mineral Resource and Mineral
Reserve models, and/or operational impacts.
In addition, the noted factors that may
affect the Mineral Resource and Mineral Reserve estimates include:
■ The
capital cost estimates at mines under development may increase as construction progresses.
This may negatively affect the economic analysis that supports the Mineral Reserve estimates;
■ The
LOM plan assumes that the Project can be permitted based on envisaged timelines. If the permitting
schedule is delayed, this could impact costs and proposed production;
■ The
long-term reclamation and mitigation of the Santa Cruz Copper Project are subject to assumptions
as to closure timeframes and closure cost estimates. If these cannot be met, there is a risk
to the costs and timing;
■ Climate
changes could impact operating costs and ability to operate;
■ Political
risk from changes to, or legal/regulatory actions affecting, current state or federal mining
laws.
Ivanhoe Electric retained BBA to facilitate
a scored likelihood × consequence matrix workshop to identify development risks. Table 22-1 identifies what are currently
deemed to be the most significant Project risks, potential impacts, and possible mitigation approaches that could reasonably affect the
reliability or confidence of the Project.
SEPTEMBER 2026 22-8
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S-K 1300 Preliminary Feasibility Study &
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Table 22-1: Project
Risks
Area
Risk
Description and Potential Impact
Mitigation
Approach
General
Environmental
permit approvals may be received later than required, due to regulatory review timelines, agency resource constraints, and agency
information requests, delaying critical Project activities and schedule, and financing milestones dependent on permit issuance.
Required
permit applications are advancing in accordance with the Project schedule, with a focus on timely submission of complete and accurate
permitting packages as supporting data becomes available. Mitigation measures include proactive engagement with regulatory agencies,
timely response to information requests and review comments, ongoing assessment of Project changes that could affect permitting requirements
or schedule commitments, and participation in accelerated permitting programs where available.
Stakeholder
concerns related to water use and environmental impacts may result in stakeholder opposition, permitting delays, increased regulatory
scrutiny, and schedule impacts. Current controls in place include ongoing community engagement, regular working group meetings, tribal
consultations, and continued dialogue with local stakeholders to identify and address concerns early in the permitting process.
A
comprehensive groundwater monitoring, protection, and conservation program is being implemented, supported by ongoing groundwater
monitoring and sampling throughout the life of mine. Hydrogeologic models will be updated periodically to assess potential impacts,
and measures to reduce groundwater drawdown will be evaluated and implemented where appropriate. Ongoing engagement with tribal groups,
local communities, and other stakeholders will continue to identify and address concerns throughout Project development and operations.
Competition
for experienced mining and construction personnel may limit the availability of qualified Project execution staff, resulting in recruitment
delays, increased workload on existing personnel, and potential impacts to Project delivery.
Mitigation
measures include leveraging the Project's proximity to major population centers and industrial labor markets, while maintaining proactive
workforce planning, recruitment, reducing turnover, and maintaining continuity of critical Project functions.
High
industry demand for engineering and contractor resources may constrain the availability of external service providers, resulting
in schedule delays and reduced execution flexibility. Current controls in place include early engagement with engineering firms and
contractors to secure resources and maintain alignment with Project requirements and schedules.
Mitigation
measures include early engagement with engineering firms and contractors, prioritizing existing consultant relationships to maintain
continuity where appropriate, and leveraging service providers with broad resource capacity and geographic reach to support Project execution
requirements.
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S-K 1300 Preliminary Feasibility Study &
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Area
Risk
Description and Potential Impact
Mitigation
Approach
Mine
Deviation of the blind bore from its intended alignment could compromise the planned connection with the ramp, creating execution constraints for bore liner installation and potentially causing schedule delays due to rework or remedial construction activities.
Mitigation measures include confirming bore alignment through detailed modelling and membrane analyses, evaluating and implementing appropriate casing and support configurations, and designing contingency measures to address potential alignment deviations and wide annulus conditions.
Ground conditions with insufficient blind bore wall stability may require additional drilling and grout consolidation, resulting in schedule impacts and increased construction complexity. Bids received include an allowance for additional work.
Mitigation measures include prior to boring, injecting and confirming targeted multi-ring grout walls around blind bore alignments where warranted by site conditions.
Logistical requirements associated with dismantling, international transport, and reassembly of the tunnel boring machine may delay the commencement of decline excavation and impact the Project schedule. A third-party on-site monitoring and dismantling was engaged to control this risk.
Mitigation measures include proactive logistics management, transportation route planning, schedule monitoring, and establishment of alternative shipping and delivery strategies to reduce disruption risks.
Groundwater inflows associated with fault structures encountered during excavation may increase operating costs, require additional water management measures, and result in schedule impacts.
Mitigation measures include advancing hydrogeological investigations, completing additional targeted underground infill/pilot drilling programs ahead of TBM advancement to refine structural interpretations, and updating groundwater and geotechnical models as additional information becomes available during development.
Airflow conditions within the conveyor decline may result in excessive dust generation, reducing production efficiency and potentially affecting long-term operating performance and regulatory compliance.
Mitigation measures include evaluating supplemental dust suppression measures, including expanded water spray coverage along the conveyor system, and implementing preventive maintenance programs to ensure sustained performance of dust control infrastructure.
Excessive dust concentrations within the conveyor decline may result in regulatory non-compliance, operational restrictions, and reduced air quality within active mining areas.
Mitigation measures include assessing the need for additional
dust suppression systems, extending water spray coverage where required, and monitoring operational performance to maintain acceptable
workplace air quality standards.
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S-K 1300 Preliminary Feasibility Study &
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Area
Risk
Description and Potential Impact
Mitigation
Approach
Mineralogical variability at the stope scale may remain partly constrained by current drilling density, resulting in reduced confidence in ore characterization, increased processing costs, and variations in reagent and consumable requirements.
Mitigation measures include completing close-spaced underground drilling and sampling programs, reconciling results against existing block models, and incorporating additional geological, geochemical, and scanning data to improve orebody definition and resource confidence.
Changes to the mine plan, equipment fleet, or production assumptions may increase ventilation demand beyond current design capacity, potentially affecting production rates and requiring additional ventilation infrastructure.
Mitigation measures include increasing fleet electrification where feasible, optimizing equipment deployment strategies, and providing for additional ventilation infrastructure should future operating requirements exceed current design assumptions.
Elevated underground temperatures associated with ventilation limitations or groundwater exposure may reduce workforce productivity and require implementation of work-rest restrictions in affected areas.
Mitigation measures include installing supplementary cooling and ventilation systems where required, implementing localized cooling solutions in high-temperature areas, and applying operational controls until permanent cooling capacity is established.
Dust generated by roadheader (with wet scrubber) operations may degrade underground air quality, interrupt production activities, and increase health and regulatory compliance risks.
Mitigation measures include incorporating lessons learned from comparable mining operations, optimizing dust control practices, and continuously evaluating roadheader operating procedures to improve dust containment and ventilation performance.
Temporary reductions in shaft ventilation during inspection activities may decrease available airflow for mining operations and reduce production performance.
Mitigation measures include scheduling inspections during planned operational downtime, coordinating inspections with blasting and shift-change activities, and implementing maintenance schedules that minimize impacts on ventilation availability.
Process Plant
Salt addition rates have been reduced from approximately 3 kg to 0.5 kg; however, elevated salt concentrations within the process stream may continue to contribute to accelerated corrosion of downstream SX/EW equipment, resulting in reduced equipment availability, increased maintenance requirements, and potential impacts to production performance.
Further mitigation measures include evaluating opportunities to optimize salt addition rates, confirming material compatibility and corrosion resistance with equipment vendors, installing protective liners in mobile equipment where appropriate, and incorporating anticipated equipment replacement requirements into long-term sustaining capital planning.
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S-K 1300 Preliminary Feasibility Study &
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Area
Risk
Description and Potential Impact
Mitigation
Approach
Supply constraints and elevated market pricing for key SX/EW reagents, including acid, diluent, and lime, may increase operating costs and reduce the operation's economic performance.
Mitigation measures include advancing commercial discussions with regional suppliers, establishing competitive procurement strategies early in the Project lifecycle, evaluating alternative supply sources, and pursuing long-term supply agreements to improve pricing certainty and secure reagent availability.
Surface Infrastructures
The accelerated Project schedule and overlap between engineering and construction activities may cause design changes after construction begins, increasing costs, impacting the schedule, and requiring rework of completed work.
Mitigation measures include maintaining engineering progress ahead of construction activities, strengthening interdisciplinary design coordination, conducting regular design maturity and constructability reviews, and proactively managing potential scope changes through structured change control and decision-making processes.
The currently available water supply is rated for agricultural use and may not meet potable water requirements, resulting in insufficient water availability for sanitation, hygiene, and other site support functions, with associated operational and maintenance impacts.
Mitigation measures include evaluating connection opportunities to local potable water infrastructure, assessing on-site water treatment and filtration solutions, and developing contingency supply arrangements to ensure reliable access to sanitary water throughout Project execution and operations.
The current paste plant configuration has the potential to constrain mine production. Key uncertainties include achieving the required solids content, maintaining sufficient backfill capacity to support the mining sequence, managing binder costs and system friction, and accounting for material variability in paste design. If unresolved, these issues could interrupt or slow production, reduce throughput and increase operating costs.
Mitigation measures focus on additional test work to confirm paste performance and variability, validate backfill capacity and cycle assumptions, optimize binder selection and delivery, and assess filtration, flowsheet changes, or added paste capacity, with resulting CAPEX and OPEX updates.
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S-K 1300 Preliminary Feasibility Study &
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22.19.2 Opportunities
Opportunities that could enhance the Project's
economics and timing are summarized in Table 22-2, excluding those typical to all mining projects, such as changes in metal prices,
exchange rates, etc. Further information and assessments are needed before including these opportunities in the Project economics.
Table 22-2: Project
Opportunities
Area
Opportunity Explanation
Benefit
Geology
Upgrade of some or all of the Inferred Mineral Resources to higher-confidence categories, with additional drilling and supporting studies, such that this higher-confidence material could potentially be converted to Mineral Reserves.
Adding higher-confidence resource categories and conversion to reserves increases the economic value of the Project.
Ivanhoe Electric holds a significant ground package that retains significant exploration potential for new operations proximal to the current Mineral Resource and Mineral Reserve estimates, with the support of additional studies.
Adding Inferred resources and subsequent conversion to Indicated and/or Measured and then reserves could increase the economic value of the mining Project.
Process Plant
Metallurgical test results from the Apollo program suggest that shorter leach cycle times may be achievable, creating an opportunity to optimize SX/EW plant sizing. Successful validation could reduce required SX/EW infrastructure and borrow pit requirements, resulting in lower Project capital costs. The opportunity is currently being advanced through the Artemis test program, which serves as the primary technical control to confirm performance assumptions.
Following completion of the Artemis program, validated results will be incorporated into engineering evaluations and Project design development. If performance improvements are confirmed, the optimized leach cycle parameters may be adopted within the PFS design basis, allowing the Project to capture potential capital efficiencies while maintaining technical confidence in metallurgical performance.
Mine
The current mine production sequence is based on contained copper value using a flat long-term copper price assumption. There is an opportunity to optimize stope sequencing and production scheduling based on prevailing and forecast market conditions, enabling the Project to prioritize higher-value material and improve overall economic performance.
Evaluate alternative mine sequencing scenarios incorporating copper price sensitivity, market forecasts, and economic optimization criteria. The resulting analysis will be used to identify opportunities to improve production scheduling and maximize Project value while maintaining operational and geotechnical constraints. Any recommended changes will be incorporated into future mine planning updates to enhance Project financial performance and responsiveness to market conditions.
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S-K 1300 Preliminary Feasibility Study &
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Area
Opportunity Explanation
Benefit
There is potential to increase material handling capacity and overall mine throughput beyond the current planning basis. Increased production rates could enable optimization of the mine schedule, improve utilization of mining and processing infrastructure, and accelerate metal production. The opportunity has the potential to enhance Project economics through improved cash flow timing, increased NPV, and lower unit operating costs.
Evaluate alternative production and mine planning scenarios to identify practical opportunities for increasing material movement and throughput while maintaining safety, operational, and infrastructure constraints. Results will be incorporated into future mine planning and economic evaluations to determine the optimal production strategy and maximize Project value.
Additional underground diamond drilling and in-ore development may provide increased geological and geotechnical confidence, creating an opportunity to optimize stope dimensions. If ground conditions support wider and/or higher stopes, the Project could increase ore recovery, improve mining productivity, and reduce unit mining costs.
Potential reduction in unit mining costs through optimization of stope dimensions supported by additional geological and geotechnical information.
Surface Infrastructures
There is potential for a considerable positive impact to the operating cost estimate by optimizing the paste backfill recipe
Potential reduction in operating costs through lower binder consumption, subject to confirmation that the optimized paste backfill recipe meets required strength, placement, and geotechnical performance criteria.
22.20 Conclusions
Under the assumptions presented in this
report, the Santa Cruz Copper Project consists of Mineral Resource and Mineral Reserve estimates that support a positive cash flow.
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S-K 1300 Preliminary Feasibility Study &
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23. Recommendations
23.1 Recommended
Work Program Budget
The recommended work programs to advance
detailed engineering, operational readiness, permitting, and critical long-lead items total $60.0 million. The budget for recommended
work includes work anticipated to be completed between September to December, 2026. The budget is summarized in Table 23-1.
Table 23-1: Recommended
Work Program Budget
Discipline
Cost
($M)
Permitting &
Environmental
2.0
Detailed
Engineering – Surface & Underground
5.0
Long-Lead
Items
49.0
Project
Support
4.0
Total
60.0
23.2 Permitting &
Environmental
■ Continue
permitting activities and agency engagement for Pinal County Class II Air permit, City
of Casa Grande Major Site Plan, Arizona Department of Environmental Quality Aquifer Protection
permit, Arizona Department of Water Resources Dewatering permit, and Arizona Department of
Environmental Quality Class V Underground Injection Control permit.
■ As
the facility engineering progresses, advance the closure and reclamation design and engage
Arizona State Mining Inspector to obtain an approved mined land reclamation plan for mining
operations.
■ Continue
engaging with the community working group to keep local stakeholders informed about the Project’s
potential economic and community benefits, as well as Ivanhoe Electric’s commitment
to safety and the environment.
■ Continue
outreach with Native American communities that have ancestral ties to the land.
■ Continue
environmental baseline data collection to support major local, county, and state permitting
programs.
■ Continue
an advanced mineralogy program to quantify acid-generating versus non-acid generating sulfide
and sulfate minerals in Project mine rock towards constraining estimates of potentially acid
generating (PAG) and non-PAG rock.
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S-K 1300 Preliminary Feasibility Study &
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■ Continue
a subset of Phase B (mine area materials) humidity cells through the end of 2026. The bulk
of the Phase B geochemical characterization program was concluded in mid-2026, but several
humidity cells remain ongoing.
■ Initiate
geochemical characterization of new heap leach spent ore samples generated from recent metallurgical
test work in support of refining the engineering designs.
■ Initiate
a cemented paste geochemical characterization program on samples of cemented paste following
completion of the paste variability testing program in 2027.
■ Continue
advancing the site-wide water balance with new information as Project designs continue through
detailed design.
■ Finalize
the Phase II soil sampling and industrial hygiene results and use the final interpretation
to confirm any location-specific soil handling, dust suppression, confirmatory sampling,
or worker hygiene measures that should be carried forward into the applicable construction
and environmental management plans prior to earthwork.
23.3 Detailed
Engineering
23.3.1 Surface
The following work plans are recommended
to investigate capital and operating cost opportunities, reduce, or remove operating risks, and attempt to improve metallurgical performance
of the heap leach:
■ Layout
optimization of the milling circuit for the front end of the paste plant.
■ Paste
pilot-plant level testwork to confirm that open-circuit grinding of (spent ore) will produce
cemented paste backfill of the required solids concentration and strength to support mining
operations.
■ Testwork
to optimize leach conditions for PLS and SLS pond operation, evaluate effects of mature solution
chemistry, potential agglomeration emissions, no salt addition and seasonal temperature variations.
■ Perform
testing and site investigations to advance detailed engineering of the heap leach pad, spent
ore stockpile, and associated ponds.
23.3.2 Underground
■ Detailed
underground engineering design for the ventilation shafts, decline tunnel, and other mine
infrastructure.
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23.4 Long-Lead
Items
■ Pre-payments
and installment payments on items including, but not limited to:
- Tunnel
Boring Machine and related infrastructure;
- Ventilation
equipment;
- SX/EW
equipment;
- Electrical
infrastructure.
23.5 Project
Support
■ Staffing
to support early works;
■ Implement
a procurement management system;
■ Optimize
the documents management system;
■ Implement
a Project management system;
■ Implement
a safety management system.
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24. References
CIM. (2014).
Canadian Institute of Mining, Metallurgical and Petroleum, CIM Definition Standards for Mineral Resources and Mineral Reserves.
Adopted by the CIM Council on May 10, 2014.
CIM. (2019).
Canadian Institute of Mining, Metallurgical and Petroleum, CIM Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines. Adopted by the CIM Council on November 29, 2019.
CIM. (2020).
Canadian Institute of Mining, Metallurgical and Petroleum, CIM Guidance on Commodity Pricing and Other Issues Related to Mineral Resource
and Mineral Reserve Estimating and Reporting. Adopted by CIM Council on August 28, 2020.
24.1 List
of References
Arizona Department of Environmental
Quality (ADEQ), (2005). Arizona Mining Guidance Manual Best Available Demonstrated Control Technology (BADCT).
Arizona Department of Water Resources
(ADWR), (2019). Pinal Model and 100-Year Assured Water Supply Projection Technical Memorandum. October 11, 2019.
Arizona Department of Environmental
Quality, (2025). ADEQ letter to Ivanhoe Electric “Reclamation Plan Amendment Approval for Santa Cruz Copper Project” dated
November 10.
Arizona Department of Environmental
Quality, (2026). Letter to Ivanhoe Electric “ Determination of Applicability for the Santa Cruz Copper Project Cemented Paste Backfill
Inventory 514108, LTF No. 115166, Place ID: 230300”, dated March 17.
Asmus, B., (2013).Gossan or the
iron cap. Retrieved from
https://en.archaeometallurgie.de/gossan-iron-cap
Berger, B., Ayuso, R., Wynn, J., &
Seal, R., (2008). Preliminary Model of Porphyry Copper Deposits. from USGS site: http://pubs.er.usgs.gov/usgspubs/ofr/ofr20081321
Blue Coast Laboratories, Ltd.
(2025). PJ-5524 - Ivanhoe Electric - Santa Cruz Column Leach Metallurgical Testwork Report V1.0.
Call & Nicholas Inc.,
(2022). Decline Characterization and Support Estimation. December 14.
CIBC (2025). Consensus Commodity
Prices, June 2025.
Cook III, S. S., (1994). The geological
history of supergene enrichment in the porphyry copper deposits of southwestern North America (Doctoral dissertation, The University
of Arizona).
eBird, (2025). EBird: An online
database of bird distribution and abundance [web application]. eBird, Cornell Lab of Ornithology, Ithaca, New York. Available: http://www.ebird.org.
Accessed: August 1, 2023.
SEPTEMBER 2026 24-1
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Technical Report Summary, Santa Cruz Copper Project, Arizona
Fernández-Mort, A., &
Riquelme, R. A.-Z., (2018). genetic model based on evapoconcentration for sediment-hosted exotic-copper mineralization in arid environments:
the case of the El Tesoro Central copper deposit, Atacama Desert, Chile. Miner Deposita, 53, 775-795. Retrieved from https://doi.org/10.1007/s00126-017-0780-2
Foster, Michael S., Ron Ryden,
and Cara Bellavia, (2006). An Archaeological Evaluation of the Legends Project Area, West of the Town of Casa Grande, Pinal County, Arizona.
Cultural Resources Report 9596-094. SWCA Environmental Consultants, Phoenix, Arizona.
Geosyntec Consultants, Inc.,
(2025). Updated Site Sampling Plan Santa Cruz Copper Project. Prepared for Ivanhoe Electric. April 2025
GoldSim Technology Group., (2025).
GoldSim (Version 15.0).
Hall, R.R., Dorsey &
Whitney, LLP., (2025). Confidential Santa Cruz NSR Royalty Analysis and Opinion Letter dated May 15, 2025.
INTERA Incorporated (INTERA),
(2025). Hydrogeology and Groundwater Modeling for the Santa Cruz Copper Project Preliminary Feasibility Study. Prepared for Ivanhoe Electric.
December 2025.
INTERA Incorporated (INTERA),
(2026). Groundwater Model Update for the Santa Cruz Copper Project Preliminary Feasibility Study. Prepared for Ivanhoe Electric. September 2026.
Ivanhoe Electric, (2025). Mined
Land Reclamation Plan Amendment for Exploration and Construction Activities for Santa Cruz Copper Project, submitted September 1.
Ivanhoe Electric, (2026). Application
for an Individual Aquifer Protection Permit for the Santa Cruz Copper Project, submitted May 8.
Kappes, Cassidy and Associates
(2026). Santa Cruz Project Composites, J, K, L and M Column Leach Testing Report of Metallurgical Test Work. Prepared for Ivanhoe Electric
July 2026.
LaLonde, M.C., Fennemore Law,
(2025). Update to Mineral Title Report dated October 29, 2021, June 30, 2022, February 10, 2023, September 21, 2023,
and November 19, 2023. Prepared for Ivanhoe Electric. February 2025.
Langevin, C.D., Hughes, J.D.,
Banta, E.R., Niswonger, R.G., Panday, S. and Provost, A.M., (2017). Documentation for the MODFLOW 6 Groundwater Flow Model (No. 6-A55).
United States Geological Survey.
Life Cycle Geo, LLC, (2023). Historic
Water Quality In The Project Area Of The Proposed Santa Cruz Mine. Report prepared for Santa Cruz. Santa Cruz, Arizona. p. 1-11.
Life Cycle Geo., (2026a). Santa
Cruz Copper Project - Site Wide Water Balance. Technical Memorandum prepared for Ivanhoe Electric, 30 pp.
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S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Life Cycle Geo, LLC, (2026b).
Santa Cruz Copper Project: Revised PFS Baseline Water Quality. Technical Memorandum prepared for Ivanhoe Electric. 20 pp.
Life Cycle Geo, LLC, (2026c).
Pre-Feasibility Study: Summary of the Geochemical Characterization of the Santa Cruz Copper Project, Arizona USA. Technical Memorandum
prepared for Ivanhoe Electric, 30 pp.
Life Cycle Geo, LLC, (2026d).
Santa Cruz Copper Project: Underground Water Quality Model. Technical Memorandum prepared for Ivanhoe Electric, 20 pp.
Liu, S., Nelson, K., Yunker, D.,
Hipke, W., and Corkhill, F., (2014). Regional Groundwater Flow Model of the Pinal Active Management Area, Arizona: Model Update and Calibration
(Model Report No. 26). Arizona Department of Water Resources, Hydrology Division. February 2014.
McClelland Laboratories, (2024).
4815 Mesa Cobre Holding Corporation Report_7-8-24.
Middleton, Sherri, (2022). A Class III
Cultural Resources Assessment of 20 Archaeological Sites on Private Land In Support of the Santa Cruz Copper Project Near Casa Grande,
Arizona, WestLand Engineering & Environmental Services, November 3, 2022.
Montgomery & Associates,
(2023). Results of 2022 and 2023 Packer Testing, Santa Cruz – Pinal County, AZ (Project #: 3457.07). Technical Memorandum. Natalie
Speaks, Brady Nock, and Colin Kikuchi. June 1.
Mote, T., Becker, T., Renne, P., &
Brimhall, G., (2018). Chronology of Exotic Mineralization at El Salvador, Chile, by 40Ar/39Ar Dating of Copper Wad and Supergene Alunite.
Economic Geology, 351-
Münchmeyer, C., (1998). Exotic
Deposits - Products of Lateral Migration of Supergene Solutions from Porphyry Copper Deposits. Andean Copper Deposits: New Discoveries,
Mineralization, Styles and Metallogeny. Francisco Camus, Richard Sillitoe, Richard Petersen.
Ocean Partners, (2025). Copper
Concentrate Market Study, Ivanhoe Electric Santa Cruz Project, Revision 2, April 5, 2025.
SGS Laboratories, (2024) 20188-02
- FINAL - Report & Appendices - combined - November 29, 2024.
SGS Laboratories, (2025). 20118-01-Variability
– Final Report Appendices – combined – January 8 2025.pdf
Sillitoe, R. H., (2010). Porphyry
Copper Systems. Economic Geology. Retrieved from https://doi.org/10.2113/gsecongeo.105.1.3
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Tetra Tech, Inc., (2026).
Tech Memo: Calculated “Dust Action Levels” (DALs) – Ivanhoe Electric Project Sites, March 16, 2026.
Tetra Tech, Inc., (2026).
Preliminary Soil Baseline Sampling Report, Santa Cruz Copper Project, March 25, 2026.
Tipple Consulting, (2026). Air
Quality and Carbon Intensity for the Santa Cruz Cooper Project (Updated for PFS), September 10, 2026.Tosdal, R., & Wooden,
J. L., (2015). Construction of the Jurassic magmatic arc, southeast California and southwest Arizona. Geological Society of America Special
Papers, 513, 189-221.
US Fish and Wildlife Service Special
Purpose – Relocate Permit, Permit No. MBPER331 6170
WestLand Engineering &
Environmental Services, (2023). Draft Ivanhoe Electric Preconstruction Biological Resources Surveys Summary Report, March 1, 2023.
WestLand Engineering &
Environmental Services, (2024). Draft Ivanhoe Electric Preconstruction Biological Resources Surveys Summary Report, January 28,
2025.
WestLand Engineering &
Environmental Services, (2026). Special-Status Species Management Plan, Prepared for Santa Cruz Copper Project. Adopted June 19,
2026.
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24.2 Units
of Measurement & Abbreviations
Abbreviation
/ Unit
Description
~
Approximately
“
inch
˚C
Degrees
Celsius
°
Degrees
°F
Degrees
Fahrenheit
2025
PFS
S-K
1300 Preliminary Feasibility Study & Technical Report Summary, Santa Cruz Copper Project, Arizona
3D
Three-dimensional
3D
PPD IP
three-dimensional
perpendicular pole dipole induced polarization
AAS
Atomic
absorption spectrometry
ABA
Acid
base accounting
acre-ft
acre-feet
ADEQ
Arizona
Department of Environmental Quality
ADOT
Arizona
Department of Transportation
Ag
Silver
AGP
acid
-generating potential
Alv
Alluvium
AMD
associated
metalliferous drainage
ANP
Acid-neutralizing
potential
APP
Aquifer
Protection Permit
ASARCO-Freeport
ASARCO
Santa Cruz Inc. and Freeport McMoRan Copper & Gold Inc.
ASCu
Acid-soluble
copper
ASLD
Arizona
State Land Department
ASMI
Arizona
State Mine Inspector
ASTM
American
Society of Testing and Materials
Au
Gold
Au
ppb
Parts
per billion of gold
Ag
ppm
parts
per million of silver
AWQS
Aquifer
Water Quality Standards
B
Billion
BAC
bulk
air cooler
BADCT
Best
Available Demonstrated Control Technology
SEPTEMBER 2026 24-5
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Abbreviation
/ Unit
Description
BBA
BBA
Consultants USA LP
BCR
Blue
Coast Research
BEV
Battery
electric vehicle
Blbs
Billion
pounds
BS
British
Standards
Burns &
McDonnell
Burns &
McDonnell Engineering Company, Inc.
C$
or CAD
Canadian
dollar
CAP
Covered
Area Project
CAPEX
Capital
cost estimate
CAR
Central
Arizona Resources, Ltd.
CCOS
crushed
coarse ore stockpile
CGL
Conglomerate
cm
Centimeter
cm/s
Centimeter
per second
CN
Cyanide
CNCu
Cyanide
soluble copper
CO2e
carbon
dioxide equivalent
COMEX
Commodity
Exchange Inc.
CPB
cemented
paste backfill
CRM
Certified
reference material
Cu
Copper
CuRes
Residual
copper
DCS
Distributed
Control System
DRH
D.R.
Horton Phoenix East Construction, Inc.
DRZ
damaged
rock zone
DSO
Deswik
Stope Optimizer
ED3
Pinal
County Electrical District Number 3
EDTA
Ethylenediaminetetraacetic
acid
eGRID
Emissions &
Generation Resource Integrated Database
EMP
Environmental
management plan
EP4
Equator
Principles
EPB
Earth
Pressure Balance
EPCM
Engineering,
procurement, and construction management
SEPTEMBER 2026 24-6
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Abbreviation
/ Unit
Description
ESA
Endangered
Species Act
ESIA
Environmental
and Social Impact Assessment
Fe
Iron
FRS
fiber-reinforced
shotcrete
FS
Feasibility
study
g
Gram
G&A
General
and administrative
g/L
Grams
per liter
g/t
Grams
per tonne
gal/min
Gallons
per minute
Geosyntec
Geosyntec
Consultants, Inc.
Getty
Oil
Getty
Oil Corp.
GFR
Grandfathered
Irrigation Rights
GIIP
Good
International Industry Practice
GIS
Geographical
information system
GPS
Global
positioning system
GR
Oracle
Granite
h
Hour
H
Height
H&A
Haley &
Aldrich, Inc.
h/y
Hours
per year
H2SO3
Sulfurous
acid
H2SO4
Sulfuric
acid
ha
Hectare
HCL
Hydrochloric
acid
HClO4
perchloric
acid
HCT
humidity
cell test
HG
High
grade
HGU
Hydrogeological
Unit
Highway
84
West
Gila Bend Highway
HNO3
nitric
acid
HPX
High
Power Exploration Inc.
HQ
Drill
core size (63.5 mm)
SEPTEMBER 2026 24-7
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Abbreviation
/ Unit
Description
IA
Initial
assessment
IAS
International
Accreditation Service
ICP-AES
Inductively
coupled plasma atomic emission spectroscopy
ICP-MS
inductively
coupled plasma mass spectroscopy
ICP-OES
Inductively
Coupled Plasma Optical Emission Spectroscopy
ID2
Inverse
distance squared
ID3
Inverse
distance cubed
IFC
PS
International
Finance Corporation’s Performance Standards
INTERA
INTERA
Incorporated
IP
induced
polarization
IRR
Internal
Rate of Return
ISO
International
Standards Organization
ISRM
International
Society for Rock Mechanics
k
Kilo
or thousand
K-Ar
Potassium-argon
KCA
Kappes,
Cassiday and Associates
KCB
KCB
Consultants Ltd.
kg
Kilogram
kg/m3
Kilogram
per cubic meter
kg/t
Kilogram
per tonne
km
Kilometer
km2
Square
kilometer
koz
Thousand
ounces
kPa
Kilopascal
kV
Kilovolt
kVA
Kilovolt-ampere
kW
Kilowatt
kWh
Kilowatt-hour
kWh/t
Kilowatt-hour
per tonne
L
Liter
L/h/m2
Liters
per hour per square meter
LC
Leach
Cap
LCG
Life
Cycle Geo, LLC
SEPTEMBER 2026 24-8
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Abbreviation
/ Unit
Description
LCRS
Leachate
collection and removal system
Legends
Legends
Property, LLC
LG
Low
grade
LHDs
Load-haul-dump
equipment
LLD
Detection
limit
LME
London
Metal Exchange
LOM
life
of mine
LTE
Long-term
evolution
Ma
Million
years ago
MACRS
Modified
Accelerated Cost Recovery System
masl
Meters
above sea level
MTOs
Material
take-offs
Max
RPI
maximum
residual passive inflows
Mesa
Cobre
Mesa
Cobre Holding Corporation
Met
Engineering
Met
Engineering, LLC
MG
Medium
grade
mg/L
Milligram
per liter
min
Minute
MLI
McClelland
Labs
MLRP
Mined
Land Reclamation Plan
mm
Millimeter
MPa
Megapascal
MSIDD
Maricopa
Stanfield Irrigation and Drainage District
MSO
Mineable
stope optimizer
Mt
Million
tonnes
Mt/y
Million
tonnes per year
MVA
Megavolt-ampere
MW
Megawatt
MWh/y
megawatt-hours
per year
MWMP
meteoric
water mobility procedure
MWr
Megawatts
of refrigeration
NaCl
Sodium
chloride
NGS
National
Geodetic Survey
SEPTEMBER 2026 24-9
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Abbreviation
/ Unit
Description
NN
Nearest
neighbor
NPAG
Non-potentially
acid generating
NPV
Net
Present Value
NQ
Drill
core size (47.26 mm)
NSR
Net
smelter return
O
Oxygen
OK
Ordinary
kriging
OX
Oxide
P&C
Paterson &
Cooke USA, Ltd.
P80
Particle
size at which 80% of the material will pass
Pa
Pascal
PAG
Potentially
acid generating
pCi/L
picocuries
per liter
PDC
Process
design criteria
PFS
Pre-feasibility
study
pH
Potential
hydrogen
PLC
Programmable
logic controller
PLS
Pregnant
leach solution
ppb
Parts
per billion
PPD
IP
Perpendicular
pole dipole induced polarization
ppm
Parts
per million
PQ
Drill
core size (85 mm)
PR
Primary
Q2
second
quarter
QA/QC
Quality
assurance / quality control
RC
Reverse
circulation
RMR
Rock
mass rating
ROM
Run
of mine
RPI
residual
passive inflows
rpm
Revolutions
per minute
RQD
Rock
quality designation
s
second
SCADA
Supervisory
control and data acquisition
SEPTEMBER 2026 24-10
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
Abbreviation
/ Unit
Description
SCJV
Santa
Cruz Joint Venture
SEQ
Sequential
analyses
S-K
1300
Disclosure
by Registrants Engaged in Mining Operations in Regulation S-K 1300
SLS
Secondary
pregnant leach solution
Stantec
Stantec
Consulting Services Inc.
SWWB
site-wide
water balance
SX/EW
Solvent
extraction / electrowinning
t
tonne
t/d
tonnes
per day
t/h
tonnes
per hour
t/y
tonnes
per year
TBM
Tunnel
Boring Machine
TCu
Total
copper
Tetra
Tech
Tetra
Tech, Inc.
UCS
Uniaxial
compressive strength
UGWQM
underground
water quality model
US$
or USD
United
States dollar
USFWS
US
Fish and Wildlife Service
V
volt
VWPs
Vibrating
wire piezometers
W
Width
Wolff-Harvard
Wolff-Harvard
Ventures
WOTUS
Waters
of the United States
wt
%
Weight
percentage
XRD
x-ray
diffraction
y
year
SEPTEMBER 2026 24-11
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
25. Reliance
on Information Provided by the Registrant
25.1 Introduction
The companies who authored this report consider
it reasonable to rely on Ivanhoe Electric for the information identified in the subsections below, because it employed industry professionals
with considerable expertise in order to collect the information in these areas.
25.2 Macroeconomic
Trends
Information relating to inflation, interest
rates, discount rates, and taxes was obtained from Ivanhoe Electric.
This information is used in the economic
analysis in Section 19. It supports the reasonable prospects of economic extraction for the Mineral Resource estimates in Section 11
and the assumptions used in demonstrating the economic viability of the Mineral Reserve estimates in Section 12.
25.3 Markets
Information relating to market studies /
markets for product, market entry strategies, marketing and sales contracts, product valuation, product specifications, transportation
costs, agency relationships, material contracts (e.g., mining, transportation, handling, hedging arrangements, and forward sales contracts)
were obtained from Ivanhoe Electric.
This information is used in the market studies
in Section 16 and in the economic analysis in Section 19. It supports the reasonable prospects of economic extraction for the
Mineral Resource estimates in Section 11 and the assumptions used in demonstrating the economic viability of the Mineral Reserve
estimates in Section 12.
25.4 Legal
Matters
Information relating to mineral tenure (payments
to retain property rights), surface rights, water rights, royalties, encumbrances, easements and rights-of-way, violations and fines,
permitting requirements, and the ability to maintain and renew permits was obtained from Ivanhoe Electric.
This information is used in support of the
property description and ownership information in Section 3, the permitting and mine closure descriptions in Section 17, and
the economic analysis in Section 19. It supports the reasonable prospects of economic extraction for the Mineral Resource estimates
in Section 11 and the assumptions used in demonstrating the economic viability of the Mineral Reserve estimates in Section 12.
SEPTEMBER 2026 25-1
Ivanhoe Electric Inc.
S-K 1300 Preliminary Feasibility Study &
Technical Report Summary, Santa Cruz Copper Project, Arizona
25.5 Environmental
Matters
Information relating to baseline and supporting
studies for environmental permitting and monitoring requirements, ability to maintain and renew permits, emissions controls, closure
planning, closure and reclamation bonding and bonding requirements, sustainability accommodations, and monitoring for, and compliance
with, requirements relating to protected areas and protected species was obtained from Ivanhoe Electric.
This information is used when discussing
ownership information in Section 3, the permitting and closure discussions in Section 17, and the economic analysis in Section 19.
It supports the reasonable prospects of economic extraction for the Mineral Resource estimates in Section 11 and the assumptions
used in demonstrating the economic viability of the Mineral Reserve estimates in Section 12.
25.6 Stakeholder
Accommodations
Information relating to social and stakeholder
baseline and supporting studies, hiring and training policies for workforce from local communities, partnerships with stakeholders (including
national, regional, and state mining associations; trade organizations; state and local chambers of commerce; economic development organizations;
Native American communities; non-governmental organizations; and state and federal governments); and the stakeholder engagement plan
was obtained from Ivanhoe Electric.
This information is used in the social and
community discussions in Section 17 and the economic analysis in Section 19. It supports the reasonable prospects of economic
extraction for the Mineral Resource estimates in Section 11 and the assumptions used in demonstrating the economic viability of
the Mineral Reserve estimates in Section 12.
25.7 Governmental
Factors
Information relating to taxation and royalty
considerations, monitoring requirements and frequency, bonding requirements, violations and fines, and risks due to changes in regulations
and policies was obtained from Ivanhoe Electric.
This information is used in the discussion
on royalties and property encumbrances in Section 3, the permitting and mine closure descriptions in Section 17, and the economic
analysis in Section 19. It supports the reasonable prospects of economic extraction for the Mineral Resource estimates in Section 11,
the assumptions used in demonstrating the economic viability of the Mineral Reserve estimates in Section 12, and risks due to changes
in regulations and policies in Section 22.19.1.
SEPTEMBER 2026 25-2
EX-99.2 — EXHIBIT 99.2
EX-99.2
Filename: tm2625798d1_ex99-2.htm · Sequence: 14
Exhibit 99.2
September 23, 2026
2026
Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona Confirms High-Grade, Low-Cost Project with Strong
Economics
Initial Capital
of $1.43 Billion and Cash Operating Costs of $1.47 Per Pound of Copper Result in an After-Tax Net Present Value8% of $3.5
Billion and a 30.0% Internal Rate of Return at Current COMEX Copper Price Approximating $6.79 per Pound
2026 Preliminary
Feasibility Study Incorporates the Industry-Leading Robbins Crossover Tunnel Boring Machine for Improved Mine Access
Improved Mine
Ramp-Up Increases First 15 Years’ Average Annual Copper Production to ~75 Thousand Metric Tonnes
Santa Cruz is
the Most Advanced Development Project of Scale in the United States Designed to Produce Pure Copper Cathode without Smelting
Initial Development
Activities have Commenced with First Copper Cathode Production Projected in 2029
Santa Cruz has
Significant Copper Mineral Resources Beyond Current Mine Plan to Support Future Expansion Potential on Existing Private Land
Management will
Host a Conference Call on Wednesday, September 23rd at 10am ET
1
PHOENIX, ARIZONA – Ivanhoe
Electric Inc. (“Ivanhoe Electric”) (NYSE American: IE; TSX: IE) Executive Chairman Robert Friedland and President and Chief
Executive Officer Taylor Melvin are pleased to announce the completion of the 2026 Preliminary Feasibility Study (the “2026 Study”)
for the Company’s 100%-owned Santa Cruz Copper Project in Arizona. Located in the heart of Arizona, a state with a prolific copper
mining history and booming technology and defense industries, the Santa Cruz Copper Project is poised to become the United States’
next major domestic producer of 99.99% pure refined copper cathode. The highly engineered 2026 Study incorporates The Robbins Company’s
Crossover Tunnel Boring Machine (“TBM”), manufactured in Solon, Ohio, for mine access. The 2026 Study confirms the strong
economics of a modern, high-grade underground copper mining operation and heap leach processing facility supported by advanced technologies.
The 2026 Study also reflects the
continued advancement of detailed design and engineering, and updated cost estimates based on current market conditions.
Highlights of the 2026 Preliminary
Feasibility Study
Low Capital Intensity, Low Cash Operating
Costs and High-Grade Copper Reserves Deliver Strong Project Economics
· Initial
project capital of $1.43 billion results in capital intensity of $19,100/tonne of copper
produced (first 15 years’ average production)
· Life-of-mine
C1 cash costs of $1.47 per pound and all-in sustaining costs of $2.28 per pound of copper
· Life-of-mine
average copper grade of 1.08%
· At
a base-case copper price of $4.75 per pound, after-tax NPV8% of $1.5 billion, after-tax IRR
of 19% and after-tax payback of 4.8 years
· At
current COMEX spot-case copper price of $6.79 per pound, after-tax NPV8% of $3.5 billion,
after-tax IRR of 30% and after-tax payback of 3 years
Robbins Tunnel Boring Machine Provides
Enhanced Underground Mine Access and Material Handling
· The
TBM will excavate a single decline of approximately 4 kilometers in length and 9.3 meters
in diameter through variable ground conditions to access the Santa Cruz deposit
· The
TBM process installs a continuous, sealed, steel-reinforced concrete lining and incorporates
a permanent conveyor for development material and production ore handling
· Further
information available: Robbins Video on the Crossover XRE TBM and material handling
system
2
Key Aspects of the Santa Cruz Copper
Project Derisked Through Advanced Engineering Since 2025 Preliminary Feasibility
· Improved
mine access and ventilation shaft design
· Optimized
material haulage system to include conveyor systems throughout mine life
· Optimized
paste backfill plant design allows faster production ramp up
· Optimized
heap leach design reduces pad footprint
· Completion
of six-meter column tests support 92.3% life-of-mine copper recovery
· Optimized
mine plan results in faster production ramp-up and 75,000 tonnes of average annual copper
cathode production over first fifteen years
Low Sulfuric Acid Consumption Limits
Exposure to Volatile Leaching Input Costs
· Naturally
high chloride content and chloride-assisted leach process results in low acid consumption
of approximately 9 kilograms of acid per tonne of copper ore processed
· Sulfuric
acid represents less than 5% of total cash operating costs
Advanced Permitting and Development
Readiness
· Project
located on 5,975 of private land near Casa Grande, Arizona
· All
necessary city, county and state permits have been obtained to advance surface construction,
complete the box cut and commence TBM decline development
· Early
site preparation and development activities have commenced
· Box
cut development expected to commence in October 2026
· TBM
decline development targeted for Summer 2027
· First
copper cathode production targeted for 2029
Significant Additional Mineral Resources
at Santa Cruz, East Ridge and Texaco Deposits Provide Expansion Potential Beyond Current PFS Mine Plan
· 3.3
million tonnes of contained copper included in inferred mineral resources across the three
key deposits within the Santa Cruz land package
· Texaco
Deposit remains open in several directions
· Robbins
Crossover TBM provides enhanced development options for phased expansion of the high-grade
Texaco deposit
Mr. Friedland commented: “Our
Santa Cruz Project is the highest grade, most advanced United States pure copper cathode project. We are building the most modern of
copper mines in the heart of Arizona, with passionate, talented people and the most advanced technologies available to our industry.
Arizona sits at the epicenter of economic growth in the southwest United States. Arizona, “The Copper State,” boasts immense
investments in technology, including $265 billion in announced chip manufacturing projects by Taiwan Semiconductor and over $30 billion
of investments by Intel. Both Taiwan Semiconductor and Intel benefit from strong support from the US Government through the CHIPS and
Sciences Act of 2022…. Clean and secure 99.99% copper cathode from Santa Cruz will go directly into the US economy from our mine
gate. The United States needs massive amounts of critical metals to support our rapidly growing technology industry and infrastructure
at the scale of the American economy. Copper is the king of all metals.
3
Under the current Administration’s
leadership, the United States mining industry is answering the call to restore domestic production of the critical metals required to
support American industry, technology, and national security. Ivanhoe Electric’s Santa Cruz Copper Project is at the leading edge
of this resurgence.”
Mr. Melvin commented: “Since
we announced the decision in May 2026 to acquire the Robbins Tunnel Boring Machine, our engineers and underground specialists at
Santa Cruz have worked tirelessly with our team of consultants to incorporate the Tunnel Boring Machine into our project design. The
2026 Study includes advanced engineering for mine access, mine design, surface processing design, and updated input costs based on current
market conditions to provide a real-time estimate of projected capital and operating costs. We are currently transitioning into early
construction. The 2026 Study confirms Santa Cruz’s status as the most advanced, highest grade copper project in the United States
capable of producing pure copper metal to support American industry and our nation’s supply chain security.”
4
2026 Santa Cruz Copper Project Preliminary
Feasibility Study Summary
Table 1. Summary Results
Description
Units
Life of Mine
First 15 Years
Production Data
Mine Life
Year
24
15
Reserve Tonnes
Million tonne
140
110
Copper Grade
%
1.08
1.11
Daily Throughput
Tonne per day
15,346
20,030
Annual Copper Production
Tonne per year
58,385
74,722
Total Copper Cathode Produced
Thousand tonne
1,401
1,121
Recovery
%
92.3%
92.3%
Capital Costs
Initial Capital
$ million
1,426
1,426
Sustaining Capital
$ million
1,546
1,463
Unit Costs
Mining Cost
$ per tonne processed
21.95
21.52
Processing Cost
$ per tonne processed
7.50
7.45
General and Administrative Cost
$ per tonne processed
2.99
3.11
Royalties
$ per tonne processed
6.90
6.93
Total Operating Cost
$ per tonne processed
39.35
39.00
Operating + Sustaining Cost
$ per tonne processed
50.41
52.50
C1 Cash Cost
$ per pound of copper
1.47
1.42
All-in-sustaining Cost
$ per pound of copper
2.28
2.27
Financial Analysis
Copper Price
$ per pound
4.75
4.75
Domestic Cathode Premium
$ per pound
0.14
0.14
Pre-tax Free Cashflow
$ million
6,761
4,971
Pre-tax Net Present Value8%
$ million
1,898
-
Pre-tax Internal Rate of Return
%
20.2%
-
After-tax Free Cashflow
$ million
5,575
4,133
After-tax Net Present Value8%
$ million
1,519
-
After-tax Internal Rate of Return
%
18.7%
-
After-tax Payback Period1
Year
4.8
1. After-tax payback period from the
start of operations in 2029.
5
Table 2. Life of mine copper price
sensitivity
Pre-tax
After-tax
Copper
Price
($/pound)
Life of
Mine Free
Cashflow
($ billon)
Net
Present
Value8%
($ billion)
Internal
Rate of
Return (%)
Life of
Mine Free
Cashflow
($ billion)
Net
Present
Value8%
($ billion)
Internal
Rate of
Return (%)
4.00
4.6
1.0
15 %
3.9
0.8
14 %
4.75 (Base)
6.8
1.9
20 %
5.6
1.5
19 %
5.00
7.5
2.2
22 %
6.1
1.8
20 %
6.00
10.4
3.4
28 %
8.4
2.7
26 %
6.79 (Spot)
12.6
4.3
33 %
10.2
3.5
30 %
7.00
13.2
4.6
34 %
10.6
3.7
31 %
*COMEX spot price of $6.79 per pound
of copper as of September 21, 2026.
The 2026 Study reflects higher overall
copper production as well as updates to initial capital and operating costs when compared to the 2025 PFS.
Table 3. Initial Capital and Operating
Costs in 2025 PFS and 2026 Study
2025 PFS
2026 PFS
Initial Capital 2025 PFS ($ million)
1,236
Updated Capital Reflects Changes due to:
Cost Escalation (approx. 8% inflation)
88
Mine Development
18
Surface Capital, Indirects and Contingency
84
Initial Capital 2026 PFS ($ million)
1,426
C1 Cash Cost ($ per pound of copper)
$ 1.32
$ 1.47
All-in-sustaining Cost ($ per pound of copper)
$ 2.02
$ 2.28
Updates to Initial Capital in the
2026 Study reflect:
· Cost
escalation driven by inflation of construction materials and labor
· Initial
capital for Mine Development updated to include advanced engineering and design of ventilation
shafts and TBM access
· Surface
Capital, Indirect Costs and Contingency includes changes to the construction scope of
the solvent extraction and electrowinning facility and associated indirect cost estimates
Updates to C1 Cash Operating and
All-in-Sustaining Costs reflect:
· Cost
escalation resulting from inflation of consumables, power and labor inputs
· Increase
in quantity of binder in paste backfill based on advanced engineering and testwork
· All-in-Sustaining
Cost includes higher sustaining capital in mine development to access additional reserve
tonnes in the 2026 study
6
Figure 1. Cash cost curve of copper
mines in the Americas, highlighting United States operating mines in blue
Study Supports Ongoing Project Financing
Activities
The 2026 Preliminary Feasibility
Study builds on the 2025 Preliminary Feasibility Study and provides the necessary engineering studies to support the Company’s
current project financing activities. Ivanhoe Electric is in advanced discussions on multiple project financing alternatives, including
an application with the Export-Import Bank of the United States (“US EXIM”) under the Make More in America initiative. On
August 24, Ivanhoe Electric announced receipt of a Preliminary Project Letter (“PPL”) from US EXIM for potential
debt funding of up to $1.1 billion (link: refer to Ivanhoe Electric’s August 24, 2026 news release). The PPL is
an important milestone in the US EXIM loan application process, marking the completion of US EXIM’s Phase 1 due diligence and transition
to Phase 2 due diligence and final commitment phase.
The 2026 Study Incorporates the Purpose-Built
Robbins Crossover XRE Tunnel Boring Machine
Ivanhoe Electric announced its intention
to acquire the TBM and material handling system from The Robbins Company of Solon, Ohio, in May 2026. The TBM is designed to operate
through the hard-rock, wet and mixed-face ground conditions expected during decline development at Santa Cruz. Its earth-pressure-balance
capability controls face stability and helps mitigate groundwater inflow, while the bi-directional cutterhead and high-torque, high-speed
drive are designed to manage changing geological conditions in a single drive.
7
During excavation, the TBM system
will install a continuous, fully supported and sealed segmental steel-reinforced concrete lining. The completed flat-bottomed decline
will form permanent life-of-mine infrastructure and will contain an integrated conveyor system used first for excavated development material
and later enhanced for ore handling during production.
Photo 1. Photo of a Robbins Crossover
XRE TBM
8
Figure 2. TBM mine access and Santa
Cruz Project Mineral Reserves
Permitting and Development Timeline
Figure 3. Santa Cruz Copper Project
Timeline
9
The Santa Cruz Copper Project is
Located on 100%-owned Private Land in the Heart of America’s Copper State
The Santa Cruz Copper Project is
located approximately 40 miles south of Phoenix, Arizona, in the city of Casa Grande on nearly 6,000 acres of private land, including
surface, mineral, and associated water rights (Figure 4). The Project has excellent access to existing infrastructure including nearby
rail, state and US interstate highways, power, and a natural gas pipeline. Arizona boasts a rapidly growing industrial economy. Several
leading technology, aerospace and defense companies have a significant presence in the state.
Figure 4. Santa Cruz Copper Project
location
10
The planned site layout provides
for a compact surface footprint of less than 1,600 acres, representing approximately 30% of the nearly 6,000 acres of private land 100%
owned by Ivanhoe Electric at the Santa Cruz Copper Project.
The site layout provides space for
future expansion opportunities.
Figure 5. Updated planned site layout
High Grade Oxide and Chalcocite Mineral
Reserves Support a 24-Year Mine Life
The Study includes a Mineral Reserve
Estimate for the Santa Cruz Copper Project, including Probable Reserves for the Santa Cruz and East Ridge Deposits.
11
Only high-grade copper mineralization
from the Oxide and Chalcocite domains of the Santa Cruz and East Ridge Deposits are included in the current Mineral Reserves.
Table 4. Santa Cruz Copper Project
Mineral Reserves summary
Deposit
Classification
Tonnes
(thousand tonnes)
Total Copper
(%)
Contained Copper
(thousand tonnes)
Santa Cruz
Probable
136,022
1.09
1,477
East Ridge
Probable
4,107
1.03
42
Total
Probable
140,129
1.08
1,519
Notes on Mineral Reserves: 1. The Mineral
Reserves in this estimate are current to September 23, 2026, and were independently prepared, including estimation and classification,
by BBA Consultants USA LP. They are reported in accordance with the definitions for Mineral Reserves in S-K 1300. 2. The point of reference
for the estimate is the point of delivery to the process facilities. 3. The Mineral Reserves for the Santa Cruz and East Ridge deposits
were completed using Deswik mining software. Mineral Reserves are defined within stope designs that are prescribed by rock mechanics,
considering the specific characteristics of deposits, mineral domains, mining methods, and the mining sequence. Transverse longhole stoping
is the optimal mining method with uppers and cut & fill methods used where appropriate. Mining will occur in blocks, extracting
ore from the bottom upwards, with paste backfill providing ground support to sustain a production rate of 20,000 tonnes per day for the
first 15 years of operation. 4. Mineral Reserves are estimated at an NSR cutoff value of US$43.95/t for longhole stoping and US$60.00/t
for longitudinal retreat stopes and drift-and-fill. The NSR values reflect the discrete metallurgical responses for each Mineral Reserve
block using metallurgical recoveries for heap leach of 96% for acid-soluble copper, 83% for cyanide-soluble copper, 22% for residual
copper. Underground mineable shapes optimization parameters include a long-term copper price of US$4.00/lb. 5. Mineral Reserves account
for mining loss and dilution. 6. Mineral Reserves are a subset of the Indicated Mineral Resource and do not include the inferred Mineral
Resource. 7. Rounding, as required by the guidelines, may result in apparent summation differences between tonnes, grade, and contained
metal content.
Additional Indicated Mineral Resources,
Exclusive of Mineral Reserves, Provide Potential Opportunities for Future Expansion across the Santa Cruz, East Ridge and Texaco Deposits
Indicated Resources at Santa Cruz
and East Ridge, exclusive of Mineral Reserves, total 1.44 million tonnes of contained copper, including 0.5 million tonnes of contained
copper grading 0.73% total copper in the Primary domain. The Primary domain comprises primary copper sulfide mineralization not amenable
to the heap leach flowsheet. Additional testwork and studies on the Primary domain may provide longer-term expansion potential, requiring
the development of additional processing infrastructure.
The Santa Cruz Copper Project includes
Inferred Resources, which are not included in the Study or the associated mine plan, which comprise an additional 3.33 million tonnes
of contained copper across the Santa Cruz, East Ridge, and Texaco Deposits.
12
Figure 6. Mineral Reserves and Resources,
all deposits
Table 5. Mineral Resource Estimate,
Exclusive of Mineral Reserves Summary
Deposit
Classification
Tonnes
(thousand
tonnes)
Total
Copper
(%)
Gold
(grams
per
tonne)
Silver
(grams
per
tonne)
Contained Gold
(thousand troy
ounces)
Contained Silver
(thousand troy
ounces)
Contained Copper
(thousand tonnes)
Santa
Cruz
Indicated
177,547
0.79
0.025
1.45
140
8,279
1,403
Inferred
31,998
0.73
0.021
1.78
21
1,832
232
East Ridge
Indicated
4,412
0.94
0.015
0.71
2
101
41
Inferred
48,676
0.89
0.006
0.40
9
623
436
Texaco
Inferred
341,345
0.78
0.028
0.81
302
8,850
2,664
All
Deposits
Indicated
182,959
0.79
0.024
1.43
143
8,380
1,444
All
Deposits
Inferred
422,020
0.79
0.025
0.83
333
11,304
3,332
13
Notes on Mineral Resources: 1. The Mineral
Resources in this estimate were independently prepared, including estimation and classification, by BBA Consultants USA LP, and are reported
in accordance with the definition for Mineral Resources in S-K 1300. 2. Mineral Resources that are not Mineral Reserves do not have demonstrated
economic viability. 3. Mineral Resources are reported in situ, exclusive of Mineral Reserves. 4. The Mineral Resources for Santa Cruz,
East Ridge, and Texaco deposit were completed using Datamine Studio RM software. 5. The Mineral Resources are current at September 23,
2026. 6. Mineral Resources constrained assuming underground mining methods for the Santa Cruz deposit are reported at an NSR cutoff of
US$32.00 for heap leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00 for heap leach and US$34.00
for concentrator; and East Ridge deposit is reported at an NSR cutoff of US$40.00 for longhole stoping and US$50.00 for drift-and-fill.
The cutoff reflects the total operating costs to define reasonable prospects for economic extraction by conventional underground mining
methods. Material from within mineable shape-optimized wireframes has been included in the Mineral Resource. Underground mineable shapes
optimization parameters include a long-term copper price of US$4.00/lb, gold price of US$1,900/oz, and silver price of US$24.00/oz. Process
costs of US$7.00 to US$9.00 per processed tonne; direct mining costs between US$22.00 to US$40.00 per processed tonne reflecting various
mining method costs (leach, longhole or drift-and-fill), mining general and administration costs of US$2.63 per processed tonne, on-site
processing costs between US$31.63 to US$49.63 per processed tonne, along with variable royalties between 5.01% to 6.96% NSR, and a mining
recovery of 100%. 7. Mineral Resources are estimated using metallurgical recoveries for heap leach of 96% for acid-soluble copper, 83%
for cyanide-soluble copper, 22% for residual copper, 0% for gold and 0% for silver. Recoveries for concentrator are 0% for acid-soluble
copper, 90% for cyanide-soluble copper, 90% for residual copper, 59% for gold, and 69% for silver. 8. Density was applied using weighted
averages by deposit subdomain. 9. Rounding, as required by reporting guidelines, may result in apparent summation differences between
tonnes, grade, and contained metal content.
Ivanhoe Electric to host conference
call on the Santa Cruz Copper Project Preliminary Feasibility Study
On Wednesday, September 23,
2026, Ivanhoe Electric will host a conference call to discuss the results of the 2026 Santa Cruz Copper Project Preliminary Feasibility
Study.
The call will include remarks from
Ivanhoe Electric's Executive Chairman Robert Friedland, President & Chief Executive Officer Taylor Melvin, Chief Financial Officer
Jordan Neeser, Chief Operating Officer Michelle Lammers, and Senior Vice President of Mine Development Glen Kuntz.
DATE: Wednesday, September 23,
2026
TIME: 10:00 am Eastern / 7:00 am Pacific / 7:00 am Arizona
LINK: https://ivanhoe-electric-september-2026-webcast.open-exchange.net/
A replay of the webcast, together with supporting presentation slides, will be made available on Ivanhoe Electric’s website at
www.ivanhoeelectric.com following the event.
Qualified Persons
The Study, entitled “S-K 1300
Preliminary Feasibility & Technical Report Summary, Santa Cruz Copper Project, Arizona,” is dated September 23, 2026,
and was prepared in accordance with Subpart 1300 and Item 601 of Regulation S-K. The 2026 Study was prepared by the following firms:
BBA Consultants USA LP (“BBA”), Worley Group Inc. (“Worley”), Burns & McDonnell Engineering Company, Inc.
(“Burns & McDonnell”), Haley & Aldrich, Inc. (“H&A”), INTERA Incorporated (“INTERA”),
KCB Consultants Ltd. (“KCB”), Life Cycle Geo, LLC (“LCG”), Met Engineering, LLC (“Met Engineering”),
Paterson & Cooke USA, Ltd. (“P&C”), Stantec Consulting Services Inc. (“Stantec”), and Tetra
Tech, Inc. (“Tetra Tech”).
14
The 2026 Study will be available
on the SEC's EDGAR website as an exhibit to a Form 8-K filed by Ivanhoe Electric in connection with this news release. Ivanhoe Electric
will prepare and file an independent technical report pursuant to Canadian National Instrument 43-101 within 45 days of this news release.
This report will be available on Ivanhoe Electric’s website and on its SEDAR+ profile.
For the purposes of Canadian National
Instrument 43-101, the independent Qualified Persons responsible for preparing the scientific and technical information disclosed in
this news release announcing the 2026 Study are Todd McCracken and David Willock (BBA), Ulises Arvayo (Burns & McDonnell), Eric
Mears (H&A), Annelia Tinklenberg (INTERA), Jim Casey (KCB), Tom Meuzelaar (LCG), James Moore (Met Engineering), Casey Schmitt and
Adam House (P&C), Kim Trapani (Stantec), and Daryl Longwell (Tetra Tech), and Manochehr Oliazadeh (Worley). Each Qualified Person
has reviewed and approved the information in this news release relevant to the portion of the scientific and technical information for
which they are responsible.
Other disclosures of a scientific
or technical nature included in this news release regarding the Santa Cruz Copper Project, have been reviewed, verified, and approved
by Glen Kuntz, P.Geo., who is a Qualified Person as defined by Regulation S-K, Subpart 1300 promulgated by the U.S. Securities and Exchange
Commission and by Canadian National Instrument 43-101. Mr. Kuntz is an employee of Ivanhoe Electric Inc.
The 2026 Study and 43-101 technical
report include relevant information regarding the assumptions, parameters and methods of the mineral resource and mineral reserve estimates
on the Santa Cruz Copper Project, as well as information regarding data verification, exploration procedures and other matters relevant
to the scientific and technical disclosure contained in this news release.
About Ivanhoe Electric
We are a United States-based, technology-driven
minerals exploration and development company with a focus on copper and other critical metals vital to electric transmission and generation,
manufacturing, infrastructure development, technology, and national security. Our wholly owned assets are located in the United States,
led by our advanced-stage Santa Cruz Copper Project on private land in Arizona. We operate exploration joint ventures and alliances in
Saudi Arabia with Maaden, in Chile with Sociedad Química y Minera de Chile ("SQM"), and in the United States with BHP.
We use our powerful Typhoon™ geophysical surveying system, together with advanced data analytics software provided by our subsidiary,
Computational Geosciences Inc. (“CGI”), to accelerate and de-risk the mineral exploration process in the search for new deposits
of critical metals that may otherwise be undetectable by traditional exploration technologies. We believe the United States is significantly
underexplored and has the potential to yield major new discoveries of critical metals.
15
We are committed to the establishment
of strong relationships with our local communities and the responsible development of our projects by incorporating best practices for
health, safety and environmental standards, water management, protection of local cultural heritage and biodiversity, and minimizing
our environmental footprint.
Website: www.ivanhoeelectric.com
Contact Information
Amanda Miller
Vice President, Corporate Communications
Email: amanda.miller@ivanhoeelectric.com
Phone: 1-480-292-8865
Follow us on
Ivanhoe Electric’s Executive
Chairman Robert Friedland: @robert_ivanhoe
Ivanhoe Electric: @ivanhoeelectric
Ivanhoe Electric’s investor relations
website located at www.ivanhoeelectric.com should be considered Ivanhoe Electric’s recognized distribution channel for purposes
of the Securities and Exchange Commission’s Regulation FD.
Forward-Looking Statements
Certain statements in this news release
constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable U.S.
and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements
can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”,
“expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”,
“forecast”, “predict”, “target”, “project” and other similar terminology, or state that
certain actions, events or results “may”, “could”, “would”, “might” or “will”
be taken, occur or be achieved. These statements reflect Ivanhoe Electric’s current expectations regarding future events, performance
and results and speak only as of the date of this news release.
Such statements in this news release
include, without limitation statements relating to: the projections, assumptions and estimates contained in the Preliminary Feasibility
Study related to the Santa Cruz Copper Project, including but not limited to those related to capital and operating costs, metal prices,
cash flow, cash costs, revenue, net present value, internal rate of return, mine design and mining techniques and processes, copper production,
grade and recoveries, development, throughput, life of mine, illustrative timelines related to mine construction, permitting and copper
production, potential financing, jobs during construction and operations, mine sequencing, mining technology, equipment, staffing and
infrastructure, emissions, use of land, water management and estimates regarding groundwater flow, power and other resources, estimates
of mineral resources and reserves, potential for expansion of mineral resources, copper grade and cash cost costs relative to other mines,
use of renewable energy, use of energy storage technologies, the ability to produce pure copper cathode, the ability to secure state
and local permits, the potential for resource expansion at Santa Cruz, East Ridge and Texaco deposits, and planned or potential developments
in the businesses of the Company; project financing alternatives; the performance of the Robbins Tunnel Boring Machine; anticipated investments,
growth and demand in Arizona and the United States; and projections of the Santa Cruz Copper Project’s anticipated performance
with other existing and potential future mines.
16
Forward-looking statements are based
on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to significant
risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due
to various factors, including changes in the prices of copper or other metals Ivanhoe Electric is exploring for; the need for additional
capital, which may not be available on favorable terms, or at all; the results of exploration and drilling activities and/or the failure
of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies,
development or operations; the final assessment of exploration results and information that is preliminary; the significant risk and
hazards associated with any future mining operations, extensive regulation by the U.S. government as well as local governments; changes
in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe
Electric to perform as agreed; and the impact of political, economic and other uncertainties associated with operating in foreign countries,
and the impact of pandemics and the global economy. These factors should not be construed as exhaustive and should be read in conjunction
with the other cautionary statements and risk factors described in Ivanhoe Electric’s Annual Report on Form 10-K filed and
other disclosures with the U.S. Securities and Exchange Commission.
No assurance can be given that such
future results will be achieved. Forward-looking statements speak only as of the date of this news release. Ivanhoe Electric cautions
you not to place undue reliance on these forward-looking statements. Subject to applicable securities laws, Ivanhoe Electric does
not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring
after the date of this news release, and Ivanhoe Electric expressly disclaims any requirement to do so.
17
EX-99.3 — EXHIBIT 99.3
EX-99.3
Filename: tm2625798d1_ex99-3.htm · Sequence: 15
Exhibit 99.3
NYSE American / TSX: IE ivanhoeelectric .com 2026 Santa Cruz Copper Project Preliminary Feasibility Study September 23, 2026 NYSE American / TSX: IE ivanhoeelectric .com
SAFE HARBOR 2 Forward - Looking Statements Certain statements in this presentation constitute “forward - looking statements” or “forward - looking information” within the meaning of applicable U.S. and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward - looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, “target”, “project” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect Ivanhoe Electric’s current expectations regarding future events, performance and results and speak only as of the date of this news release. Such statements in this presentation include, without limitation statements relating to: the projections, assumptions and estimates contained in the Preliminary Feasibility Study related to the Santa Cruz Copper Project, including but not limited to those related to capital and operating costs, metal prices, cash flow, cash costs, revenue, net present value, internal rate of return, mine design and mining techniques and processes, copper production, grade and recoveries, development, throughput, life of mine, illustrative timelines related to mine construction, permitting and copper production, potential financing, jobs during construction and operations, mine sequencing, mining technology, equipment, staffing and infrastructure, emissions, use of land, water management and estimates regarding groundwater flow, power and other resources, estimates of mineral resources and reserves, potential for expansion of mineral resources, copper grade and cash cost costs relative to other mines, use of renewable energy, use of energy storage technologies, the ability to produce pure copper cathode, the ability to secure state and local permits, the potential for resource expansion at Santa Cruz, East Ridge and Texaco deposits, and planned or potential developments in the businesses of the Company; project financing alternatives; the performance of the Robbins Tunnel Boring Machine; anticipated investments, growth and demand in Arizona and the United States; and projections of the Santa Cruz Copper Project’s anticipated performance with other existing and potential future mines. Forward - looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward - looking statements due to various factors, including changes in the prices of copper or other metals Ivanhoe Electric is exploring for; the need for additional capital, which may not be available on favorable terms, or at all; the results of exploration and drilling activities and/or the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations; the final assessment of exploration results and information that is preliminary; the significant risk and hazards associated with any future mining operations, extensive regulation by the U.S. government as well as local governments; changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe Electric to perform as agreed; and the impact of political, economic and other uncertainties associated with operating in foreign countries, and the impact of pandemics and the global economy. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risk factors described in Ivanhoe Electric’s Annual Report on Form 10 - K filed along with other disclosures with the U.S. Securities and Exchange Commission and the Canadian securities regulators. No assurance can be given that such future results will be achieved. Forward - looking statements speak only as of the date of this presentation. Ivanhoe Electric cautions you not to place undue reliance on these forward - looking statements. Subject to applicable securities laws, Ivanhoe Electric does not assume any obligation to update or revise the forward - looking statements contained herein to reflect events or circumstances occurring after the date of this presentation, and Ivanhoe Electric expressly disclaims any requirement to do so.
TECHNICAL INFORMATION AND QUALIFIED PERSONS 3 The 2026 Preliminary Feasibility Study, entitled “S - K 1300 Preliminary Feasibility & Technical Report Summary, Santa Cruz Copper Project, Arizona,” is dated September 23, 2026, and was prepared in accordance with Subpart 1300 and Item 601 of Regulation S - K ("2026 St udy"). The 2026 Study was prepared by the following firms: BBA Consultants USA LP (“BBA”), Worley Group Inc. (“Worley”), Burns & McD onn ell Engineering Company, Inc. (“Burns & McDonnell”), Haley & Aldrich, Inc. (“H&A”), INTERA Incorporated (“INTERA”), KCB Consultan ts Ltd. (“KCB”), Life Cycle Geo, LLC (“LCG”), Met Engineering, LLC (“Met Engineering”), Paterson & Cooke USA, Ltd. (“P&C”), Stantec C ons ulting Services Inc. (“Stantec”), and Tetra Tech, Inc. (“Tetra Tech”). The 2026 Study will be available on the SEC's EDGAR website as an exhibit to a Form 8 - K filed by Ivanhoe Electric. Ivanhoe Elect ric will prepare and file an independent technical report pursuant to Canadian National Instrument 43 - 101 within 45 days of the date of t his presentation. This report will be available on Ivanhoe Electric’s website and on its SEDAR+ profile. For the purposes of Canadian National Instrument 43 - 101, the independent Qualified Persons responsible for preparing the scienti fic and technical information disclosed in the related news release are Todd McCracken and David Willock (BBA), Ulises Arvayo (Burns & M cDonnell), Eric Mears (H&A), Annelia Tinklenberg (INTERA), Jim Casey (KCB), Tom Meuzelaar (LCG), James Moore (Met Engineering), Casey Schmitt and Adam House (P&C), Kim Trapani (Stantec), and Daryl Longwell (Tetra Tech), and Manochehr Oliazadeh (Worley). Each Quali fie d Person has reviewed and approved the information in this presentation relevant to the portion of the scientific and technical in formation for which they are responsible. Other disclosures of a scientific or technical nature included in this presentation regarding the Santa Cruz Copper Project, hav e been reviewed, verified, and approved by Glen Kuntz, P.Geo ., who is a Qualified Person as defined by Regulation S - K, Subpart 1300 promulgated by the U.S. Securities and Exchange Commission and by Canadian National Instrument 43 - 101. Mr. Kuntz is an employee of Ivanhoe E lectric Inc. The 2026 Study and 43 - 101 technical report include relevant information regarding the assumptions, parameters and methods of the mineral resource and mineral reserve estimates on the Santa Cruz Copper Project, as well as information regarding data verification, exp loration procedures and other matters relevant to the scientific and technical disclosure contained in this presentation.
CONFERENCE CALL PARTICIPANTS 4 Robert Friedland – Executive Chairman & Founder Taylor Melvin – President & Chief Executive Officer Michelle Lammers – Chief Operating Officer Glen Kuntz – Senior Vice President, Mine Development Jordan Neeser – Chief Financial Officer
SANTA CRUZ COPPER PROJECT OVERVIEW 5 High - grade Advanced Copper Project on Private Land in Arizona Modern Underground Mine Design with an On - off Heap - leach Process to Produce 99.99% Pure Copper Cathode – No Smelting 2026 Study Substantially Derisks Project Short Development Timeline – First Copper Production Expected in 2029 Located in the Heart of Arizona’s Industrial Corridor with Excellent Access to Existing Infrastructure American Copper to Support American Industry, Technology and Supply Chain Security Santa Cruz is the Most Advanced Large - Scale Copper Project in the United States Designed to Produce 99.99% Pure Copper Cathode Without Smelting
2026 PRELIMINARY FEASIBILITY STUDY OVERVIEW 6 2026 Study Incorporates Robbins Tunnel Boring Machine for Mine Access Project Derisked Through Advanced Engineering on Mine Access and Design, Ventilation, Heap Leaching, Surface Processing and Paste Backfill Study Confirms High - Grade, Low - Cost Project with Strong Economics Low Initial Capital of $1.43 Billion, Cash Operating Costs of $1.47 Per Pound Short Development Timeline to First Cathode Production in 2029 After - Tax Net Present Value 8% of $3.4 Billion and a 30.0% Internal Rate of Return at Current COMEX Copper Price Approximating $6.79 per Pound
1 Initial capital expenditures per average tonne of annual paid copper produced during first 15 years of mining; 2 Payback period post - construction. $19,100 $ / tonne CAPITAL INTENSITY 1 24 Years MINE LIFE 19% AFTER - TAX IRR $1.5B AFTER - TAX NPV8% 7 92.3% LIFE OF MINE AVERAGE COPPER RECOVERIES 4.8 Years AFTER - TAX PAYBACK PERIOD 2 ~1.4MT LIFE - OF - MINE COPPER PRODUCTION $240M AFTER - TAX NPV PER $0.25/LB CHANGE IN Cu $5.5B LIFE - OF - MINE AFTER - TAX FREE CASHFLOW 2026 PRELIMINARY FEASIBILITY STUDY HIGHLIGHTS Low Initial Capital and Operating Costs Modern Underground Mine @ ~20,000 Tonnes per Day On - off Heap Leach Process with High Copper Recoveries of +92% SX/EW Process to Produce 99.99% Pure Copper Cathode Onsite High - grade Mineral Reserves: ~1.5 Million Tonnes Contained Cu @ 1.08% Advanced - stage Project with First Copper Targeted in 2029 Summary Economics at $4.75/pound Copper ~75kt 1 st 15 - YEARS’ AVERAGE COPPER PRODUCTION $1.43B INITIAL CAPITAL EXPENDITURES $1.47 PER POUND UNIT CASH OPERATING COSTS
2026 STUDY INCLUDES CURRENT COST ESTIMATES AND ADVANCED ENGINEERING 2026 Study Includes: Current cost estimates reflecting inflation on construction materials, energy and labor Tunnel boring machine mine access and material handling Advanced engineering for underground mining, mine access, ventilation and surface processing Increase in quantity of binder required for paste backfill based on advanced testwork 8 2025 PFS Cost Escalation Mine Development Surface Development 2026 PFS Initial Capital ($millions) $1,236 $88 $84 $1,426 $18 Unit Operating Costs / lb Copper $1.47 $1.32 $2.01 $2.28 C1 Cash Costs All - in Sustaining Costs 2025 PFS 2026 PFS 2025 PFS 2026 PFS
-- ¢100 ¢200 ¢300 ¢400 ¢500 ¢600 Cash Operating Costs / C1 (cents per pound of copper) Copper Production LOW UNIT CASH COSTS Source: S&P Global Market Intelligence, 2026 Note: 2025 cash operating costs (C1) on a co - product basis for copper mines in the Americas, excluding processing facilities; LO M Average Copper Production used for Santa Cruz. Santa Cruz Copper Project $1.47/ lb Copper Production (%) 0% 100% 25% 50% 75% U.S. Copper Projects 1 st Quartile Cash Costs 9 Americas Primary Copper Mines
ROBBINS TUNNEL BORING MACHINE IMPROVES MINE ACCESS Creates a single ~4 kilometer decline that is 9.3 meters in diameter Simultaneous installation of a precast, steel - reinforced concrete liner enhances long - term stability and safety Requires smaller box cut, resulting in 75% less excavated material Capable of +10 meters per day advance rate, approximately twice the rate of road headers Conveyor system installed during tunneling supports excavation and life - of - mine production 10 Tunnel created by Robbins Tunnel Boring Machine. Source: The Robbins Company
OPTIMIZED MINE ACCESS DESIGN Completed detailed design for mine access and ventilation shafts Material haulage system to include conveyors throughout mine life Updated heap leach design reduces pad footprint Refined mine plan results in faster production ramp - up and increases first 15 years’ average copper cathode production to 75,000 tonnes 11 Santa Cruz Mine Access and Development
IMPROVED SURFACE LAYOUT INCREASES OPERATIONAL EFFICIENCY 12 Updated layout improves material flow from underground to stacking and ultimately spent ore / paste Reduced surface crushing Surface conveyors replace truck haulage for ore handling Additional ponds on heap leach pads improve flexibility and recycling of solutions Project infrastructure occupies ~1,600 acres (30%) of our total land package Significant land available for expansion
SANTA CRUZ PROCESS FLOWSHEET 13 ~20,000 tonnes /day underground mine +92% copper recoveries Chloride assisted leach Low sulfuric acid consumption On - off heap leach Paste backfill SX/EW producing 99.99% pure copper cathode
- 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 Total Copper Grade (%) Copper Production (Tonnes) Copper Cathode Production Total Copper Head Grade (%) Construction Production COPPER PRODUCTION AND GRADE PROFILE 14 Potential to Access Existing Resources in Later Years
PERMITTING AND DEVELOPMENT TIMELINE 15 2026 2027 2028 2029 First Copper Cathode Permitted for Initial Construction Activities Permitting for Operations & LOM Production Mine Access and Underground Development Surface Construction and Processing Box Cut Decline Development Establish Ventilation General Site Infrastructure Crushing & Heap Leach Facility SX/EW Plant & Commissioning Groundwater Quality Air Quality Land Use & Reclamation Timeline subject to receipt of remaining permits and project financing.
16 SIGNIFICANT ORGANIC EXPANSION POTENTIAL BEYOND CURRENT MINE PLAN 1 Indicated Resources stated are exclusive of Reserves. All values are rounded. East Ridge Santa Cruz Texaco Probable Reserves Indicated Resources Inferred Resources Looking North, Tilted View Copper Grade (%) Contained Copper (Million Tonnes) Classification (All Deposits) 1.1 1.5 Probable Reserves 0.8 1.4 Indicated Resources 1 0.8 3.3 Inferred Resources Probable Reserves Support Current Mine Plan Indicated and Inferred Resources Highlight Additional Expansion Potential
FINANCING OVERVIEW Strong Balance Sheet and Liquidity to Fund Initial Project Activities +$250 million of cash at end of 2Q26 Engaged in Advanced Project Financing Discussions with U.S. Export - Import Bank and Leading Commercial Banks Received US EXIM’s Preliminary Project Letter in August 2026 for up to $1.1 Billion in Project Debt $200 Million Bank Credit Facility Closed in December 2025 and Undrawn Targeting Completion of Project Financing Commitments in 2026 August 7, 2026, U.S. Mining Roundtable PRESIDENT TRUMP ANNOUNCES OVER $2 BILLION IN CRITICAL MINING AND MINING - RELATED PROJECTS TO REVITALIZE THE INDUSTRY AND OVER $180 MILLION IN MINING SCHOOL INVESTMENTS TO BOLSTER THE AMERICAN MINING WORKFORCE. 17
SANTA CRUZ COPPER PROJECT OVERVIEW 18 High - grade Advanced Copper Project on Private Land in Arizona Modern Underground Mine Design with an On - off Heap - leach Process to Produce 99.99% Pure Copper Cathode – No Smelting 2026 Study Substantially Derisks Project Short Development Timeline – First Copper Production Expected in 2029 Located in the Heart of Arizona’s Industrial Corridor with Excellent Access to Existing Infrastructure American Copper to Support American Industry, Technology and Supply Chain Security Santa Cruz is the Most Advanced Large - Scale Copper Project in the United States Designed to Produce 99.99% Pure Copper Cathode Without Smelting
Q&A
ivanhoeelectric .com NYSE American | TSX: IE
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Cover
Sep. 23, 2026
Cover [Abstract]
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001-41436
Entity Registrant Name
IVANHOE
ELECTRIC INC.
Entity Central Index Key
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Entity Tax Identification Number
32-0633823
Entity Incorporation, State or Country Code
DE
Entity Address, Address Line One
450
E. Rio Salado Parkway, Suite 130,
Entity Address, City or Town
Tempe
Entity Address, State or Province
AZ
Entity Address, Postal Zip Code
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City Area Code
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Local Phone Number
656-5821
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Common
Stock, par value $0.0001 per share
Trading Symbol
IE
Security Exchange Name
NYSEAMER
Entity Emerging Growth Company
false
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Cover page.
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For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
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The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
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No definition available.
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- Definition
Address Line 1 such as Attn, Building Name, Street Name
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Name of the City or Town
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Code for the postal or zip code
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Name of the state or province.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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- Definition
Indicate if registrant meets the emerging growth company criteria.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
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Two-character EDGAR code representing the state or country of incorporation.
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The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
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Local phone number for entity.
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Exchange Act
-Number 240
-Section 14d
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Title of a 12(b) registered security.
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-Name Exchange Act
-Number 240
-Section 12
-Subsection b
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Name of the Exchange on which a security is registered.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
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Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Trading symbol of an instrument as listed on an exchange.
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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
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