Feasibility Study released - very good looking!
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Dec 05, 2016 02:28PM
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Excelsior Releases Feasibility Study with Post-Tax NPV of $807 Million
December 5, 2016
Excelsior Mining Corp. (TSX-V: MIN) (FSE: 3XS) (OTCQX: EXMGF) ("Excelsior" or the “Company”) is pleased to announce the results of a comprehensive Feasibility Study (“FS”) on the North Star Deposit of the Gunnison Copper Project, located in Cochise County, southeastern Arizona. The project is designed as a copper in-situ recovery (“ISR”) mine using solvent extraction-electrowinning (“SX-EW”).
Highlights of the FS (United States dollars)
Sensitivity Analysis | ||||||||||
PRE-TAX | ||||||||||
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 | 62% | 55% | 48% | 41% | 34% | 63% | 56% | 48% | 41% | 33% |
NPV* | $1,588 | $1,380 | $1,172 | $963 | $755 | $1,396 | $1,187 | $978 | $768 | $559 |
AFTER-TAX | ||||||||||
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 |
The base case uses the following parameters over the 24-years of production:
FINANCIAL ANALYSIS SUMMARY | ||
Pre-Tax | Post-Tax | |
IRR | 48.3% | 40.1% |
Initial Capital Payback (years) | 2.3 | 2.8 |
NPV (million) @7.5% | 1,172 | 807 |
Ratio of initial Capital of NPV7.5 | 0.04 | 0.06 |
COST METRICS | ||
Million $ | Cost/lb Copper | |
Direct Operating Costs | 1,418 | 0.65 |
Royalties and Other Production Costs | 461 | 0.22 |
Initial Capital Costs | 46.9 | 0.02 |
All-in Cost (all capital + operating) | 2,668 | 1.23 |
Taxes | 995 | 0.46 |
KEY PARAMETERS | ||||
Acid Plant | No-Acid Plant | |||
Copper Cathode sold (million lb) | 2,165 | 2,165 | ||
Copper Price ($/lb) | 2.75 | 2.75 | ||
Gross Revenue (million $) | 6,019** | 5,954 | ||
Operating Costs | (million $) | Cost $/lb | (million $) | Cost $/lb |
Production (Wellfield) | 641 | 0.29 | 1,303 | 0.60 |
SXEW | 497 | 0.23 | 512 | 0.24 |
Water Treatment Plant | 113 | 0.05 | 113 | 0.05 |
G&A | 167 | 0.08 | 167 | 0.08 |
Direct Operating Cash Costs | 1,418 | 0.65 | 2,095 | 0.97 |
Royalties | 272 | 0.13 | 272 | 0.13 |
Other Production Expenses | 189 | 0.09 | 180 | 0.08 |
Initial Capital Costs* | (million $) | Cost $/lb | (million $) | Cost $/lb |
Production (Wellfield) | 14.6 | 0.01 | 14.6 | 0.01 |
SXEW + Infrastructure | 26.8 | 0.01 | 26.8 | 0.01 |
Owners Costs | 5.5 | 0.00 | 5.5 | 0.00 |
Sub-total Initial Capital Costs | 46.9 | 0.02 | 46.9 | 0.02 |
Sustaining Capital Costs | (million $) | Cost $/lb | (million $) | Cost $/lb |
Production (Wellfield) | 396 | 0.18 | 396 | 0.18 |
Plant + Infrastructure | 346 | 0.16 | 265 | 0.12 |
Sub-total Sustaining Capital Costs | 742 | 0.34 | 661 | 0.30 |
All in cost (all capital + operating) | 2,668 | 1.23 | 3,255 | 1.50 |
Taxes | 995 | 0.46 | 754 | 0.35 |
* includes 20% contingency ** assumes sale of excess acid in some years |
Mineral Resources and Mineral Reserves
Mineral Resource Estimate
North Star Resources (Oxide and Transition at 0.05% cut-off) | |||
Category | Short Tons (million) | Total Copper % | Pounds of Cu (million) |
Measured | 199 | 0.36 | 1,427 |
Indicated | 674 | 0.27 | 3,567 |
Total M&I | 873 | 0.29 | 4,995 |
Inferred | 187 | 0.17 | 630 |
Mineral Reserve Estimate
North Star Mineral Reserves (Oxide and Transition at 0.05% cut-off) | |||
Category | Short Tons (million) | Total Copper % | Pounds of Cu (million) |
Probable | 782 | 0.29 | 4,505 |
Each of these Qualified Persons has reviewed and approved the technical information contained in this news release that is relevant to their area of responsibility and verified the data underlying such technical information.
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.
Prior to the release of the Report on the FS results, 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, Prefeasibility Study Update” dated March 23, 2016.
For more information on Excelsior, please visit our website at www.excelsiormining.com.
ON BEHALF OF THE EXCELSIOR BOARD
"Stephen Twyerould"
President & CEO
For further information regarding this press release, please contact:
Excelsior Mining Corp.
Concord Place, Suite 300, 2999 North 44th Street, Phoenix, AZ, 85018.
JJ Jennex, Vice President, Corporate Affairs
T: 604-681-8030 x240
E: [email protected]
www.excelsiormining.com
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to: (i) the estimation of mineral resources and mineral reserves; (ii) the robust economics and potential returns associated with the Gunnison Project, (iii) the technical viability of the Gunnison Project; (iv) the market and future price of copper; (v) expected infrastructure requirements; (vi) the results of the FS including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, construction timelines, permit timelines and production timelines for the Gunnison Project, (vii) expected acid consumption rates; (viii) the use of Johnson Camp infrastructure; (ix) the commencement of commercial production from the Gunnison Project; and (x) the ability to mine the Gunnison Project using in-situ recovery mining techniques.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource and reserve estimates, copper and other metal prices, the timing and amount of future development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to develop and construct the Gunnison Project in the short and long-term, the progress of development activities, the receipt of necessary regulatory approvals, the completion of the permitting process, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Gunnison Project, risks relating to variations in mineral resources and reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Gunnison Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and no securities regulatory authority has either approved or disapproved of the contents of this release.