Excelsior Mining Files Updated Prefeasibility Study for Gunnison Project

Excelsior Mining (TSXV:MIN) has filed an updated prefeasibility study for its Gunnison copper project in Arizona. Highlights from the report were initially announced on February 9.
As quoted in the press release, highlights of results included:

• 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;
• Over 850 million pounds of copper added to the probable mineral reserve, an increase of 24%; total probable reserve now 4.4 billion pounds (775 million short tons grading 0.29%);
• Mine life of 27 years (24 years of commercial production);
• 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.

Click here for the full press release.