Excelsior Mining (V.MIN) rockets 358% on glowing prefeasibility study at Gunnison

Gaalen Engen Gaalen Engen, Stockhouse.com
2 Comments| January 17, 2014


Excelsior Mining (TSX-V:MIN, StockForum), a Phoenix Arizona-based firm engaged in the acquisition, exploration and development of mineral properties, announced today that the company had received results from the pre-feasibility study conducted on the North Star Deposit at Gunnison Copper Project located in Southern Arizona.

 

The work, completed by M3 Engineering & Technology, is NI 43-101 compliant and demonstrates a pre-tax present value of $1.24 billion at a 7.5% discount rate with a pre-tax internal rate of return of 59.7% and a pre-tax payback period of 1.8 years.

 

Initial capital cost, including sustaining capital, is expected to reach an estimated $284.74 million with average life-of-mine operating costs coming to US$0.68 per pound. Other costs, including Royalties are expected to hit $0.12 per pound.

 

According to the news release, Gunnison is expected to have an, “Annual production rate of 110 million pounds of copper for the first 14 years, then declining for a 20 year mine life, with a total of 1.682 billion pounds of copper produced over the life of the mine.”

 

Mark J. Morabito, Excelsior Chair, commented on the study's findings, “The results surpass the robust economic potential indicated by the 2011 Preliminary Economic Assessment and support copper extraction of the North Star Deposit through in-situ recovery with the potential to generate exceptional financial returns.”

 

Morabito continued, “With initial production expected to commence in Q4 2016 we are looking forward to beginning the next phase of development.”

 

Excelsior president and CEO, Stephen Twyerould, illustrated the importance of the study, “With the completion of this major milestone, the commercial case for the Gunnison Copper Project has grown even stronger.”

 

He then concluded, “The Prefeasibility Study has confirmed the robust economics and technical viability for what has the potential to be one of the lowest cost copper producers in North America.”

 

Excelsior Mining was in the news recently when the company appointed a CFO.

 

Shares climbed 358% on the news to $0.55 per share.

 

Currently there are 59.1m outstanding shares with a market cap of $25 million.



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rborhi
Surprised to see a junior stock go up like this with just a pre-feasibility study, but a nice shot in the arm for the mining juniors. The action is starting to come back. Experts must have really liked what they saw. A buyout at 7 cents/pound would put the market cap at just under 140 Million $.
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January 17, 2014
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4SeasVentures
How close is this project to V.ARY's arizon copper project?
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January 20, 2014
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