PEA Technical Report Excelsior Mining Corp. (TSX: MIN) (OTCQX: EXMGF) (FSE: 3XS) ("Excelsior" or the "Company") is pleased to announce that it has filed a National Instrument ("NI") 43-101 Technical Report entitled "Estimated Mineral Resources and Preliminary Economic Analysis, Strong and Harris Copper-Zinc-Silver Project, Cochise County, Arizona" dated effective of September 9, 2021 (the "Report") on SEDAR at www.sedar.com. The Report is with respect to Excelsior's Preliminary Economic Assessment ("PEA") on the Strong and Harris copper-zinc-silver deposit in southern Arizona; the results of which were announced in a September 9, 2021 news release.
Roland Goodgame, SVP Business Development for the Company commented "Excelsior's focus clearly remains the ramp up of the Gunnison ISR Project. To support this the Company is moving ahead with its strategy to restart and operate the Johnson Camp Mine to produce cashflow while Gunnison ramps up and the raffinate neutralization plant is designed and constructed. With its attractive economics and upside potential, the Strong and Harris deposit is a complementary asset that has the potential to allow Excelsior to become a larger and longer-term producer than previously envisioned."
Highlights of the Strong & Harris PEA (US Dollars):
Mining of the Strong and Harris deposit would be by traditional open pit with high-grade underground mining of the remaining sulfides at the bottom of the pit. The PEA has been completed by Mine Development Associates, a division of RESPEC (MDA), the highlights of which are tabulated below assuming a $3.50/lb. copper price, $1.28/lb. zinc price, and $110/ton acid cost.
| Mine Life | ~7 years |
| Material Mined | ~54 M ton |
| Cu/Zn Grades | 0.56% / 0.68% |
| Cu/Zn Produced | 437 M lb / 575 M lb |
| Initial Capital | $328 million |
| Operating Costs ($/lb CuEq) | $1.76 |
| Average Cu/Zn annual production | 62 Mlbpa / 82 Mlbpa |
| Pre-Tax NPV/IRR (8% discount rate) | $325M / 25% |
The table below sets out the sensitivities of the NPV and IRR to copper price:
| Cu Price US$/lb | NPV Pre-Tax @ 8% | IRR | NPV After-Tax @ 8% | IRR |
| $ 3.00 | $ 111,387 | 14% | $ 38,999 | 10% |
| $ 3.25 | $ 218,426 | 19% | $ 113,438 | 15% |
| $ 3.50 | $ 325,466 | 25% | $ 186,958 | 19% |
| $ 3.75 | $ 432,505 | 30% | $ 260,306 | 23% |
| $ 4.00 | $ 539,544 | 35% | $ 333,264 | 27% |
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the conclusions reached in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Company's next steps with Strong and Harris are a drill program targeting adjacent geophysical anomalies with the goal of expanding the mineral resource, metallurgical test work and completion of a feasibility study.
Additional information about the Strong & Harris Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: "Estimated Mineral Resources and Preliminary Economic Analysis, Strong and Harris Copper-Zinc-Silver Project, Cochise County, Arizona" dated effective of September 9, 2021.