Excelsior Mining Corp.

Excelsior Mining Corp. is developing the world’s largest low-cost in-situ copper project within the copper porphyry belt of Arizona. Based on an initial production rate of 110Mlb/year and a US$2.75/lb copper price, the prefeasibility study indicates an after-tax NPV7.5 of US$826M, an IRR of 44.7% and a payback period of just 2.4 years. Total initial capital expenditures are estimated at US$284.84M with an average life-of-mine direct operating cost of just US$0.69/lb. These metrics are amongst the lowest per pound capital and operating costs for copper projects in the world.

Expert Comments:

"I like Excelsior Mining Corp. as a copper play. We've recently seen a precipitous decline in copper prices recently, but they should remain above $3/lb over the long term. Excelsior is using an in situ recovery method at the Gunnison copper project in Arizona that lowers its capital and extraction costs, so it has great economics for a large copper deposit. It also has a great financial and management team that should be able to support and advance the project." read more >

"Excelsior Mining Corp. has the 3.6 Blb Gunnison in-situ leach project in southern Arizona. This is essentially the same technique used to mine uranium in several areas and has been used successfully for copper by a couple of large copper producers in the region. The geological characteristics needed to make in-situ copper leaching work aren't that common. Southern Arizona is one of the few places that has them. . .Gunnison's logistics are extremely good. It's literally right next to the highway. . .the initial capex is low: $285M. Excelsior is doing metallurgical studies now, but if the work proceeds as predicted by the prefeasibility study, the economics will be quite strong: a pretax NPV of $1.24B and a 59.7% IRR. Cash costs would be in the order of $0.50-0.70/lb. I don't think anybody's cheaper than that. . .Excelsior has some of the early permits. Hydrological studies will go on for most of 2015. Excelsior has very good relations with the local communities and politicians. The state regulators seem to be on board. Permitting should be completed in 18–24 months, probably sooner rather than later. Excelsior may set up a small test operation that generates its own data as part of the permitting process. read more >

Eric Coffin, Hard Rock Analyst (1/4/15)
"I still like Excelsior Mining Corp. as a value development-level play that will have good news flow through the second half of Q1/15 and into Q2/15."

Brien Lundin, Gold Newsletter (Jefferson Financial) (11/6/14)
"With a 5 Blb+ copper resource and a potentially low-cost, phased approach to get it into production, Excelsior Mining Corp. has a very attractive risk/reward profile. . .if you believe, as I do, that strong copper demand and restricted copper supplies are going to drive prices higher in the long term, then an investment in this company is a great way to bet on that premise. It's still a Buy."

Eric Coffin, HRA Journal (11/2/14)
"Excelsior Mining Corp.'s positive story hasn't changed. . .the company closed the second $3M tranche of its financing with Greenstone and started a second drill program at Gunnision. This 13-hole 5,000m plus program was designed to convert most of the existing Inferred resource to Measured and Indicated. . .extending the life of the operation. . .or increasing the scale. . .I think Excelsior is as safe a place as you're going to find in a preproduction copper story and still worth accumulating."

"A junior copper company with takeover potential is Excelsior Mining Corp., with its Gunnison in-situ project in Arizona. The company released a stunning prefeasibility study in early 2014 with industry-leading economics. More than 25% of the company is now owned by Greenstone Resources, a solid London private equity fund. At its current share price, Excelsior offers fantastic leverage on the copper price." read more >

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