EXPLORATION & DEVELOPMENT

Gunnison gets permitting go-ahead

Excelsior Mining (TSX: MIN) says it is set to become the US’s next copper miner after receiving an operating permit for its Gunnison copper project in south-eastern Arizona.

Staff reporter
Gunnison’s copper will be processed at the company’s Johnson Camp Mine

Gunnison’s copper will be processed at the company’s Johnson Camp Mine

"There has not been a new copper mine permitted within the state of Arizona in over a decade; I congratulate the Excelsior management team for achieving this important milestone that keeps Excelsior Mining on schedule to become the next new copper producer in the United States," chairman Mark Morabito said.

The Environmental Protection Agency has issued a Class III underground injection control area permit which allows production of up to 125 million pounds per annum, Excelsior said.

President and CEO Stephen Twyerould said it was an important milestone to initiating low-cost, in-situ copper production "at one of the most environmentally friendly and economically compelling mine sites in the United States".

"We look forward to continuing our work with all regulatory agencies and stakeholders as we head into the construction phase this summer," he said.

A 2016 feasibility study put initial capex at US$46.9 million, with an after-tax NPV of $807 million and an IRR of 40%, using a $2.75/lb copper price and a 7.5% discount rate.

The project is expected to produce about 2.2 billion pounds of copper cathode over a 24-year mine life.

Excelsior raised about $30 million in a private placement that closed in January, which was backed by a Greenstone Resources affiliate, taking Greenstone's stake to 48.49% of Excelsior.

"This financing secures a significant amount of funding that allows us to continue advancing our Gunnison Copper Project towards production," Twyerould said at the time.

The company said in May it would need additional financing to commence construction at Gunnison.

The project's metrics are enhanced by the company's 2015, $8.4 million acquisition of the neighbouring Johnson Camp Mine which had ceased copper operations in 2010.

Excelsior's shares, which were trading at C86c 12 months ago, closed down 11c to $1.20 yesterday as the copper price weakened on US-China trade tensions.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.