Excelsior Releases Updated Prefeasibility Study

Excelsior Mining Corp. (TSX VENTURE: MIN, OTCQX: EXMGF) announced an updated prefeasibility study on the North Star Deposit of the Gunnison Copper Project, located in Cochise County, southeastern Arizona.
Highlights from the study include:

Highlights of the North Star Gunnison Copper Project Updated PFS (United States dollars)

• Net Present Value (“NPV”) of $1.2 billion pre-tax and $829 million post-tax
  • at 7.5% discount rate using a life of mine (“LOM”) copper price of $2.75/lb;
• Internal Rate of Return (“IRR”) of 57.9% pre-tax and 45.8% post-tax;
• Initial construction capital costs of $45.9 million
  • includes 20% contingency, 16% EPCM, freight, mobile equipment, owner’s costs and capital spares;
• Payback period for initial capital of 1.8 years pre-tax and 2.6 years post-tax;
• Average life-of-mine operating costs of $0.70/lb;
• All-In Cost (all capital plus operating costs) of $1.24/lb;
• Sensitivity analysis at a LOM copper price of $2.00/lb generates an IRR of 30.8% pre-tax and 26.2% post-tax.
• Over 850 million pounds of copper added to the probable mineral reserve, an increase of 24%;
• Mine life of 27 years;
• Staged production profile: initial production rate of 25 million pounds of copper cathode per annum using the existing JCM facilities, followed by an intermediate expansion stage to 75 million pounds per annum and final expansion stage to full production of 125 million pounds per annum (includes the construction of an acid plant at full production). The staged production profile makes possible the funding of future expansions out of cash flow;
• Staged production approach lowers initial capital costs, reduces financing risk and speeds the timeline to first production.

President and CEO, Stephen Twyerould said:

This Updated Prefeasibility Study supports the advantages of our recent acquisition of the Johnson Camp Mine. The Company has pre-purchased a 25 million pound per annum SX-EW processing facility that has helped to reduce our overall start-up capital to about $46 million. This is an outstanding result. Even at today’s copper prices of $2.00/lb, the Gunnison Copper Project would still return a post-tax IRR of over 26%.

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