Core Viewpoint - Sonoro Gold Corp. has secured all necessary surface rights for its Cerro Caliche Gold Project in Sonora, Mexico, marking a significant milestone for the company's transition from exploration to production [1][2][4]. Surface Rights Lease Highlights - The surface rights lease has a term of up to 25 years, consisting of an initial term of 12.5 years and an option for renewal for an additional 12.5 years [4][6]. - An initial payment of US $1,000,000 has been made for the lease [4]. - The lease allows for exclusive access to explore, develop, and extract mineral deposits, as well as to construct related mining infrastructure [6]. Project Development and Resource Potential - The Cerro Caliche project is in the final permitting stage for a proposed open-pit, heap leach mining operation, with only 30% of the identified mineralized zones drilled and assayed to date [5][6]. - The company plans to develop an initial operation of 12,000 tonnes per day to generate cash flow for further exploration of the remaining 70% of the mineralized area [5]. Financial Projections - A Preliminary Economic Assessment (PEA) filed in October 2023 indicates a potential after-tax net present value (NPV5) of US $47.7 million at a gold price of US $1,800 per ounce, and US $77 million at US $2,000 per ounce, with an internal rate of return (IRR) of 45% and 63% respectively [9][10]. Resource Estimate - The resource estimate as of March 2023 is based on 55,360 meters of drilled data, including 498 drill holes and assays for 53,865 meters [8].

Key Highlights - MAC achieved a 67% increase in the Life of Mine (LOM) [27, 73] - The company saw a 64% increase in reserves [28, 74] - Mineral Resources increased by 42% [30, 60, 76] - Q1 2024 copper production reached 8,786 tonnes with C1 costs of US$2.15/lb [36, 82] - Approximately US$127 million of interest-bearing liabilities were repaid in Q1 [36, 82] Financial Position - The fully-diluted market capitalization stands at US$1,250 million [21] - Liquidity as of March 31, 2024, was approximately US$100 million [21, 36, 54, 82] - The company completed an ASX IPO with proceeds of A$325 million (US$214 million) [54] Production Guidance - Copper production guidance for 2024 is set between 38Kt and 43Kt, with expectations to exceed 50kt by 2026 [36, 71, 82] - The mine life, based on Mineral Reserves, now extends to the end of 2034 [70, 81] Operational Improvements - Tonnes milled per employee increased by 19% from Q1 2023 to Q1 2024 [42] - Development costs per meter decreased significantly from US$18,677 in Q1 2023 to US$15,478 in Q1 2024 [49]

Financial Results - For the first quarter ended February 28, 2025, the company reported a comprehensive loss of $3.6 million, consistent with the loss of $3.6 million for the same period in 2024 [3] - Total expenses for the quarter were $3.2 million, an increase from $2.8 million in the previous year, primarily due to higher professional fees [3] - Basic and diluted loss per common share remained at $(0.02) for both periods [3] Corporate and Project Activities - The company announced positive results from the Preliminary Economic Assessment (PEA) for the Bornite copper project, indicating a potential underground mining operation with a capacity of 6,000 tonnes per day and a mine life of 17 years [4] - The Bornite PEA estimates a pre-tax net present value (NPV) of $552 million and an internal rate of return (IRR) of 23.6% [5] - The company has a fiscal year 2025 cash budget of $3.1 million, with $0.8 million used in operating activities during the first quarter [5][6] Ambler Metals LLC - Ambler Metals LLC has a 2025 fiscal year budget of $5.8 million, with expenditures of $1.2 million in the first quarter for various operational costs [7] - The company is involved in the Ambler Mining District, which is known for its rich copper deposits and is supported by a joint venture with South32 [16] Regulatory Developments - Recent executive orders signed by President Trump aim to expedite resource development in Alaska, including the reinstatement of permits for the Ambler Road project [8][9] - The Department of Interior has initiated actions to facilitate the permitting process for mineral production projects, which is expected to benefit the Ambler Road project [10][11] Liquidity and Capital Resources - As of February 28, 2025, the company had $25.2 million in cash and cash equivalents, sufficient to fund its approved budget for the fiscal year [13] - Ambler Metals had $6.5 million in cash and equivalents, adequate to support its budget of $5.8 million for the year [14]