CARMEN COPPER CORPORATION

Evolution, Geology, and Resources of the Atlas Porphyry

(Carmen) Deposits

Dennis G. Francisco
Outline of Presentation

• Atlas Mining – CCC Snapshot

• Tectonic Evolution and Morphology of Carmen Orebody

• Mineral Resources and Ore Reserves of Carmen Orebody

• Petrogenesis and Mineralogy of Carmen Orebody

Atlas Mining - CCC

13/08/2019 3
ATLAS CONSOLIDATED MINING
DEVELOPMENT CORPORATION (“ATLAS")

CCC Mine
• Atlas incorporated in 1953, owns 100%
of Copper Copper Corporation (CCC), a
Copper and Gold producer located in
Toledo City, Cebu, Central Philippines
• CCC Copper quality considered to be
the “cleanest” among global
producers
• As of 12/31/2018
Mineral Resource : 506Mt @ 0.33% Cu
Ore Reserve : 442Mt @ 0.34% Cu
(equivalent to 3.2 Blbs)
• Life-of-Mine (LOM) based on current
ore reserves, approximately 27 years
• Open pit mining fleet mostly composed
of Komatsu heavy equipment (9 big
excavators and 84 100t dump trucks)
• Atlas Mining - CCC is a mine with “Pit
to Port” operations

13/08/2019 4
Production Performance

No. of Cu Concentrate Shipments Gold Production (000) Ounces

40.0
36.5 36 34.0
35 35.0
32 32.5 33
30 29.9
30.0

Ounces (000s)
27.2 26.3 27.0
24 25.0 22.0
21.4
20
20.0

15.0 13.7
12
9.1 8.8
10.0
6.2
5.0
0.7
0.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Copper Production Million Pounds

120.0
103.8
98.9 102.4
100.0 91.4 90.6
Million Pounds

84.5
75.1
80.0 70.5
60.8
60.0

40.0
37.9
Ongoing Initiatives:
20.0
❑ Expanding mill capacity by 20%
0.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 in mid-year 2020

13/08/2019 5
CCC Copper Mine “Pit-to-Port” Operations

13/08/2019 6
CCC OWNED PORT

• Ship load up to 10,000 tons

• Bin capacity up to 20,000 tons

CCC PIER

COPPER BINS

MAGNETITE BIN

13/08/2019 7
Tectonic Evolution
and Morphology of
Carmen Orebody
Atlas Porphyry Cu-Au Deposits

Philippine Porphyry Deposits

• majority of the Philippine
porphyry deposits are
related to strato-volcano
• related to Neogene volcanic
rocks and batholitic
intrusions
West
• relatively young: Pleistocene
Philippine to Pliocene in age (<24 Ma)
Sea • with telescoping or
overprinting epithermal
style mineralization
• vein (IS) and replacement
(HS) types of mineralization
• top of deposits are
characterized with advance
argillic alteration
• upright deposit morphology

Zhang, Y., et. al (including Francisco, D.G., 2019) Mesozoic

porphyry Cu–Au mineralization and associated adakite-like
magmatism in the Philippines: insights from the giant Atlas
deposit.
8/13/2019 9
Atlas Porphyry Cu-Au Deposits

Atlas Deposits
• Porphyry copper
mineralization developed
while submerged under thick
pillow basalts and sediments
• no telescoping or
overprinting epithermal
West
style mineralization
Philippine • further above is the absence
Sea of epithermal veins within
Carmen
• no advance argillic
alteration
• oldest (+110 Ma) porphyry
copper deposit in the
Philippines
• tilted deposit morphology

Zhang, Y., et. al (including Francisco, D.G., 2019) Mesozoic

porphyry Cu–Au mineralization and associated adakite-like
magmatism in the Philippines: insights from the giant Atlas
deposit.
8/13/2019 10
Tectonic Evolution of Atlas Deposits

• At ca. 120–100 Ma, a “superplume” was

generated by convection through the entire
mantle and erupted beneath the mid-
Cretaceous Pacific basin, which caused peak
production rates of oceanic crust and increased
ridge-push force at subduction zones.
• This event was coeval with the formation of
porphyry deposits during the Early Cretaceous
in the circum-Pacific regions
• Given the similarity in age, it is possible that
the Atlas deposit also formed at least in part as
a result of this event

Zhang, Y., et. al (including Francisco D.G., 2019) Mesozoic porphyry Cu–Au mineralization and
associated adakite-like magmatism in the Philippines: insights from the giant Atlas deposit.

13/08/2019 11
Tectonic Evolution of Atlas Deposits

Zhang, Y., et. al (including Francisco D.G.,

2019) Mesozoic porphyry Cu–Au mineralization
and associated adakite-like magmatism in the
Philippines: insights from the giant Atlas
deposit.

• The depleted mantle or young lower continental crust source suggested by the zircon
εHf(t) values, the whole-rock Sr–Nd isotopic data and La/Yb ratio indicate that the
Lutopan quartz diorite porphyry was likely derived from partial melting of young lower
continental crust or interaction between asthenospheric melts and lower crust melts,
and subsequently evolved to adakite-like trace element compositions through
amphibole fractionation.
• These processes were probably linked to the subduction of the paleo-Pacific plate
beneath the proto-Philippine Sea plate and/or India-Australia plate in the Early
Cretaceous 13/08/2019 12
Tectonic Evolution of Atlas Deposits
• The newly formed volcanic island chain
(proto-Philippine Sea Plate) underwent
submergence under the as evidenced by
pillow basalt on top of layered sediments
above the andesitic (adakite) basement.
Philippine Plate • Continuous subduction of the PPOP and
subsequent partial melting of the same
West between 110-113Ma yielded intrusions
Philippine (Lutopan stock) with dissolved metals (Cu,
Au, Ag) onto the andesitic basement
Sea resulted to porphyry mineralization of the
now famous Atlas Porphyry Cu-Au deposits
while still submerged under the proto-
Philippine Sea Plate.
NOTE: it is important to note that volatile rich intrusion were emplaced
while still submerged whereby juvenile fluid and meteoric water
interplay didn’t occur because of the absence of the latter thus “NO”
Sulu Sea telescoping or overprinting of epithermal system occurred as most if not
the rest of the Philippine porphyry Cu-Au deposits have.

Celebes Sea

8/13/2019 13
Tectonic Evolution of Atlas Deposits
• Continued tectonic activity resulted with
the development of the Negros Trench and
the Philippine Fault located west and east
of the Atlas deposits respectively.
NOTE: by this time, the Atlas deposits had already formed
Philippine Plate
• The Atlas deposits were caught in a
compressional tectonic regime as a result of
West the north-eastward subduction of Sulu Sea
Philippine along the Negros Trench to the west and the
Sea left-lateral (sinistral) strike-slip movement
along the Philippine Fault to the east.
• The result of the above stresses were
thrusting and tilting of the strata inclusive
of the basement complex (meta-volcanics)
where the current morphology of the Atlas
deposits having apparent southerly plunge
Sulu Sea (30°-55°) from the 60° dip of the layered
sediments above the pillow basalt are
attributed to.

Celebes Sea

8/13/2019 14
Tectonic Evolution of Atlas Deposits

West
Philippine
Sea

• Structural rebounding after release of compressional

stresses further resulted with the current structural
setting of the Atlas porphyry Cu-Au deposits as a horst
structure bounded by the North Barot Fault and the
Cantabaco Fault to the south. It is a direct function of
resistive mineralized bodies relative to the un-
silicified country rocks (graben). 8/13/2019 15
Atlas Porphyry Cu-Au Deposits

West
Work Index (increases
Philippine
away from the core)
Sea

Conceptual Model:
Porphyry Copper Deposit
Adopted from Lowell and Guilbert (1970)

8/13/2019 16
Atlas Porphyry Cu-Au Deposits

The Atlas ore deposits plunges S -

SE/SW at 40°–65°, which has been
Hill3/Hill2
attributed to the post-
West mineralization westward tilting of
Philippine the block bounded by the North
Sea Drop Cut Barot and Cantabaco faults
IVR East Zhang, Y., et. al (2019) Mesozoic porphyry Cu–Au mineralization and
associated adakite-like magmatism in the Philippines: insights from the giant
Atlas deposit.

Lapyahan

8/13/2019 17
Atlas Porphyry Cu-Au Deposits
Tapian Pit Atlas Deposits

800 m

Basay Pit

300 m 2 km

Kaline Pit Sto. Tomas Pit Boneng Pit

500 m 500 m 13/08/2019 50018

m
Mineral Resources
and Ore Reserves of
Carmen Orebody
Carmen Pit @ 0.20%Cu 2010

Database: Atlas Mining (1970’s-1980’s)

• Drill Holes - 169
• Total Depth (m) – 71,762.33
• Samples Collected – 23,388

Database: CCC In-fill Drilling (2017)

• Drill Holes - 35
• Total Depth (m) – 7,373.10
• Samples Collected – 7,373.10

A Advance Grade Control RC Drilling (2018)

• Drill Holes - 73
• Total Depth (m) – 4,958
• Samples Collected – 1,578
B Database for AMC’s 2018 Model

A’ • Drill Holes - 204

• Total Depth (m) – 79,135.36
• Samples Collected – 25,904

B’

8/13/2019 20
Carmen Pit @ 0.20%Cu 2018

Structures @ Carmen Pit:

• Carmen Thrust Fault
• Northeasterly Shear
• North Barot Fault
Lithology:
• Metavolcanics
• Andesite Porphyry
• Quartz Diorite (intra-mineral)
Hill3/Hill2
Alteration:
• Potassic (qtz-bio-kspar-anh-chl)
A • Phyllic (qtz-ser-gyp-chl)
Drop Cut • Propylitic (chl-epi-cal-gyp-zeo)
IVR Ore Minerals: brn-cpy-cov
Associated Minerals: py-mag-mol
B East
Gangue Minerals: qtz-anh-gyp-FeOx
Carmen Ore Body Morphology:

Lapyahan
A’ • Segmented (opposite sides) pear
shaped ore body
• Cut obliquely by the Northeasterly
Shear having a general right lateral
movement
• Mineralization plunging SSE @ ~30º-
B’ 55º angle (B+270mASL to B-
150mBSL)
• Carmen morphology is perfect for
open pit mining

8/13/2019 21
Mineral Resources Estimation

Block Size : 30m x 30m x 15m

Estimation Method : Ordinary Kriging
Software : Surpac 6.9 and Datamine Studio 3 (AMC)

DTM

Grade Shell Ore Blocks

13/08/2019 22
Reconciliation
Lutopan Database:
• Drill Holes – 480
CCC Historical BHA vs BV Grade Performance • 362 82,965.55m/229m, 75%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 • 118 24,627.04m/209m, 25%
120% 0.45 • Total Depth – 107,592.59m/224m
• Samples Collected – 33,786
0.40 • Drill Density – 25m drill centers
100%
Carmen Database:
0.35
• Drill Holes – 204
• 13 8,602.07m/662m, 6%
80% 0.30
• 191 70,533.36m/369m, 94%
• Total Depth – 79,135.36m/388m
0.25 • Samples Collected – 25,904
60% • Drill Density – 50m drill centers
0.20
Milestones:
• 2008-2011 Lutopan grade
40% 0.15
performance was highest (98%)
• 2012-2015 Lutopan and Carmen
0.10
combined grade performace declined
20%
• 2016-2018 Carmen grade
0.05 performance was variable (poor)
• 2017 in-fill drilling at Carmen
0% 0.00 • 2018 advance Grade Control RC
1 2 3 4 5 6 7 8 9 10 11 drilling at Carmen
Lutopan Cu Carmen Cu Grade Performance • Implemented improvements in blast
hole sampling and Grade Control
procedures
• More geological inputs into the Grade
Control process (chip logging)
13/08/2019 23
Mineral Resources and Ore Reserves

CCC Mineral Resources as of December 31, 2018 @ 0.20%Cu cut-off

Measured Indicated Inferred Combined

Deposits Tonnage Grade Tonnage Grade Tonnage Grade Tonnage Grade
000 (%Cu) 000 (%Cu) 000 (%Cu) 000 (%Cu)

Lutopan Pit 208,700 0.31% 700 0.27% 4,200 0.26% 213,600 0.31%

Carmen Pit 190,700 0.36% 69,800 0.33% 31,600 0.26% 292,100 0.34%

Total 399,400 0.33% 70,500 0.33% 35,800 0.26% 505,700 0.33%

CCC Ore Reserves as of December 31, 2018 @ 0.20%Cu cut-off

Proven Reserves Probable Reserves Combined
Deposits Tonnage Grade Pounds Tonnage Grade Pounds Tonnage Grade Pounds
000 (%Cu) (millions) 000 (%Cu) (millions) 000 (%Cu) (millions)

Lutopan Pit 140,000 0.31% 955 70,000 0.31% 477 210,000 0.32% 1,432

Carmen Pit 174,000 0.36% 1,378 58,000 0.34% 434 232,000 0.35% 1,786

Total 314,000 0.34% 2,333 128,000 0.32% 911 442,000 0.34% 3,219

13/08/2019 24
Petrogenesis and
Mineralogy of Carmen
Orebody
Stages of Atlas Po-Cu Development
Stage I II
Alteration Potassic and Propylitic Alteration Phyllic Alteration Supergene
Vein Ia, Ib, and Ic Id IIa IIb
K-felds
Magnetite
Quartz
Biotite
Albite
Chlorite
Epidote
Calcite
Actinolite
Anhydrite
Minerals

Pyrite
Chalcopyrite
Bornite
Muscovite
Illite
Kaolinite
Native Au
Mon, Sph, Gal
Molybdenite
Specularite
Zhang, Y., et. al (including Francisco
Gypsum D.G., 2019) Mesozoic porphyry Cu–Au
mineralization and associated adakite-like
Mal, Azr, Chrys, Cup, magmatism in the Philippines: insights
Lim, Hem from the giant Atlas deposit.

Abundant Trace Local

Stage I: Potassic Alteration

POTASSIC ALTERATION

• quartz–magnetite–biotite ±
K-feldspar is concentrically
distributed around the
Lutopan stock and
characterized by abundant
secondary hydrothermal
biotite (~10 vol%) and local
K-feldspar (< 5 vol%)
coexisting with abundant
quartz and magnetite, and
trace actinolite

• This stage affected the

majority of the Lutopan Zhang, Y., et. al (including Francisco D.G., 2019) Mesozoic porphyry Cu–Au mineralization and associated
adakite-like magmatism in the Philippines: insights from the giant Atlas deposit.
stock and some basaltic
and andesitic volcaniclastic
sandstones

13/08/2019 27
Stage I: Propylitic Alteration

PROPYLITIC ALTERATION
• chlorite–epidote ± calcite
± actinolite contains
abundant chlorite and
epidote, with minor
calcite and actinolite, and
passes laterally inward to
the potassic alteration
zone.

• The propylitic alteration

zone shows no distinct
boundary with the
potassic zone and extends
Zhang, Y., et. al (including Francisco D.G., 2019) Mesozoic porphyry Cu–Au mineralization and associated at least 1 km away from
adakite-like magmatism in the Philippines: insights from the giant Atlas deposit.
the potassic zone, but the
outer limit is poorly
defined due to limited
drilling.
13/08/2019 28
Stage II: Phyllic Alteration

PHYLLIC ALTERATION
• quartz–muscovite–illite ±
pyrite is characterized
by abundant quartz,
muscovite, and illite
with minor disseminated
pyrite. It overprinted
parts of the earlier
potassic and propylitic
alteration zones

• Locally, phyllic
alteration is pervasive,
obliterating the earlier
potassic alteration
Zhang, Y., et. al (including Francisco D.G., 2019) Mesozoic porphyry Cu–Au mineralization and associated
features and primary adakite-like magmatism in the Philippines: insights from the giant Atlas deposit.

textures of the Lutopan

stock

13/08/2019 29
Lithologic Units of Carmen

Metavolcanic Rock Hornblende Biotite Quartz Diorite (Ore Zone)

Andesite Porphyry Hornblende Quartz Diorite (Barren)

13/08/2019 30
Veins @ Carmen

*Quartz-sulphide-secondary magnetite vein cut the quartz- *Anhydrite vein cut the quartz-secondary magnetite vein
magnetite vein with intense secondary biotite-secondary (sulphide in the middle or D-vein).
magnetite alteration in wall rock.

*The quartz-sulphide vein and quartz-secondary magnetite *Quartz-sulphide vein with Phyllic alteration in the margin
vein cut by anhydrite sulphide veinlet. cut the quartz-secondary magnetite vein.
13/08/2019 31
Mineralization @ Carmen

B-1 B-3
Mg
Cpy
Cpy

B-1. Anhydrite vein with pyrite and chalcopyrite (Stage IIa

B-2 vein)
Bn
B-2. Pyrite, chalcopyrite and bornite (Stage IIa vein)

Cpy B-3. Quartz vein with magnetite and chalcopyrite veinlet

(Stage Id vein)

Py

8/13/2019 32
CARMEN COPPER CORPORATION
Evolution, Geology, and Resources of the Atlas Porphyry
(Carmen) Deposits