Excelsior files FS NEWS RELEASE
Excelsior Files Feasibility Study
January 18, 2017
Excelsior Mining Corp. (TSX-V: MIN) (FSE: 3XS) (OTCQX: EXMGF) ("Excelsior" or the “Company”) is pleased to announce that it has filed a National Instrument (“NI”) 43-101 Technical Report dated effective December 17, 2016 on SEDAR at www.sedar.com. The Report is with respect to Excelsior’s Feasibility Study (“FS”) on the Gunnison Copper Project in southern Arizona; the results of which were announced in a December 5, 2016 news release.
Highlights of the Feasibility Study (United States dollars)
- Net Present Value (“NPV”) of $1.173 billion pre-tax and $807 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 48% pre-tax and 40% post-tax;
- Initial construction capital costs of $46.9 million
- includes 15% contingency, 16% EPCM, freight, mobile equipment, owner’s costs and capital spares;
- Payback period for initial capital of 2.3 years pre-tax and 2.8 years post-tax;
- Average life of mine operating costs of $0.65/lb;
- All-In Cost (LOM capital costs plus operating costs) of $1.23/lb;
- 42 million pounds of copper added to the Probable Mineral Reserve, with the total Probable Mineral Reserve now 4.5 billion pounds of copper (782 million short tons grading 0.29%);
- Life of Mine: 24 years of commercial production;
- Staged production profile: initial production rate of 25 million pounds of copper cathode per annum using the existing Johnson Camp Mine (“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).
| Post-Tax Sensitivity Analysis* |
| | Acid Plant | Non-Acid Plant |
| Cu Price | $3.25 | $3.00 | $2.75 | $2.50 | $2.25 | $3.25 | $3.00 | $2.75 | $2.50 | $2.25 |
| IRR | 51% | 45% | 40% | 35% | 29% | 51% | 46% | 41% | 35% | 28% |
| NPV* | $1,086 | $947 | $807 | $664 | $522 | $972 | $831 | $691 | $548 | $405 |
| *million $ at 7.5% discount rate |
Commenting on this news, Stephen Twyerould, President and CEO, said, “The Feasibility Study confirms the industry-leading economics that have always been the hallmark of the Gunnison Copper Project. With the successful completion of this final technical milestone, Excelsior remains on schedule for commercial production in 2018. The Company continues to work closely with the federal and state agencies to develop safe and workable permits in a timely manner.”
Qualified Person
Excelsior’s technical work on the Gunnison Copper Project is supervised by Stephen Twyerould, Fellow of AUSIMM, President & CEO of Excelsior and a Qualified Person as defined by National Instrument 43-101. Mr. Twyerould has reviewed and approved the technical information contained in this news release.
About Excelsior Mining
Excelsior Mining “The Copper Solution Company” is a mineral exploration and development company that is advancing the Gunnison Copper Project in Cochise County, Arizona. The project is an advanced staged, low cost, environmentally friendly in-situ recovery copper extraction project that is scheduled for commercial production in 2018.
Additional information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: “Gunnison Copper Project, NI 43-101 Technical Report, Feasibility Study” dated effective December 17, 2016.
For more information on Excelsior, please visit our website at www.excelsiormining.com.
ON BEHALF OF THE EXCELSIOR BOARD
"Stephen Twyerould"
President & CEO