TACA TACA

Taca Taca is a high-potential copper-gold-molybdenum porphyry deposit in an advanced exploration phase.

Overview

Taca Taca is located in Salta Province in north west Argentina, 230 km west of the city of Salta and 55 km east of the Chilean coast.

A detailed Environmental and Social baseline study is at an advanced stage of preparation and continues to advance the project. Communication with communities and the relevant authorities is ongoing. Water studies are progressing, including a field program to develop boreholes for pump testing sustainable groundwater resources. Formal environmental and social impact assessments are anticipated to be filed with the authorities during 2019.

Collection of baseline data for fauna, flora and other environmental attributes have been completed, along with social baseline studies. A scoping process is ongoing for the required electricity infrastructure.

First Quantum acquired 100 per cent of Taca Taca from Lumina Copper Corporation in 2014, through its subsidiary, Corriente Argentina S.A. (CASA).

Mining and Processing

The Taca Taca copper-gold-molybdenum porphyry deposit is held in a composite package consisting of a number of separate concessions and exploration permits. First Quantum has successfully consolidated these landholdings in preparation for project development stage. Two of the mining concessions have a 50 per cent ownership with third party groups. These properties are subject to a 1.5 per cent net smelter returns royalty.

Reported in 2013, measured and indicated resources were 9.6 million tonnes of contained copper, with inferred resources are of 3.4 million tonnes of contained copper. These published Mineral Resources and Mineral Reserves are historical estimates, now superseded by First Quantum's own preliminary updates based on our completed reviews of the deposit geology, mineralogy and processing amenability, and assessment of development options.

The Taca Taca deposit is suitable for conventional, large-scale, bulk open pit mining methods. Metallurgical testwork indicates that the Taca Taca ore is amenable to grinding in a conventional SAG – ball milling circuit, with pebble crushing and regrinding, and flotation.

The Company has selected the scale and extents of open pit mining and ore processing, and the location and scope of required infrastructure items. Technical and commercial work has proceeded on power and water supply logistics, freight and product transport options. The Company’s project engineering phase has advanced such that the primary permit application may be submitted. First Quantum has completed preliminarty water exploration drilling and aquifer pump tests to confirm sustainable groundwater supply sources for the project.

Technical Report

Taca Taca’s most recent NI 43-101 Technical Report.

Outlook

Pre-development and feasibility activities continue, focusing on an initial scope involving confirmatory work on the mineral resource, metallurgical sampling and testing, mine geotechnical studies, and other technical work required to increase the definition of project engineering, cost, and operating estimates.

The primary Environmental and Social Impact Assessment (“ESIA”) for the Taca Taca project, which covers the prinicipal proposed project sites, was submitted to the Secretariat of Mining of Salta Province in February 2019.

At Taca Taca, located in the Salta province of Argentina, the Company is continuing with the project pre-development and feasibility activities. The primary Environmental and Social Impact Assessment for the project, which covers the principal proposed project sites, was submitted to the Secretariat of Mining of Salta Province in 2019. On November 30, 2020, the Company filed an updated NI 43-101 Technical Report for the Taca Taca Project, including an updated Mineral Resource statement and a maiden Mineral Reserve for the project. This increases the Company’s total Mineral Reserves to over 29 million tonnes of contained copper which is one of the largest copper Mineral Reserve base, globally, and substantially increases the geographic diversification of the Company’s copper reserves. On March 29, 2021, the Company filed an amended and restated NI 43-101 Technical Report for Taca Taca. The restated Technical Report now includes an after-tax cash flow model, although underlying pre-tax cash flow assumptions remained unchanged from the November 2020, and now superseded, report