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:

Brien Lundin, Gold Newsletter (Jefferson Financial) (2/26/15)
"I added Excelsior Mining Corp. to our list last year because its plan to use in-situ leaching to mine copper at Gunnison allows the company to move forward with a scalable production model, one that should allow it to tailor the project size to the amount of financing currently available in the market. It's still a buy."

Eric Coffin, Hard Rock Analyst (2/12/15)
"Excelsior Mining Corp. expects to report an updated resource for Gunnison in Q2/15. . .barring unexpected surprises, the company is extremely undervalued relative to the NPV of Gunnison. . .it's a Buy at current levels."

Thibaut Lepouttre, Caesars Report (2/9/15)
"Excelsior Mining Corp. has announced an update to keep the market up to speed on its attempts to complete a feasibility study on its Gunnison in-situ recovery copper project in Arizona. The metallurgical test work. . .is ongoing and an additional 29 samples have been sent off for testing. The company has also completed a 13-hole, 17,000-foot diamond drill program at Gunnison, and this drill program was specifically designed to convert a large part of the Inferred resources. . .into the Measured and Indicated category. . .2015 will be the year of truth for this company."

Brien Lundin, Gold Newsletter (Jefferson Financial) (2/1/15)
"Excelsior Mining Corp. has made the final payment needed to take a 100% interest in its Gunnison copper project. . .management will now move forward with its plans to develop Gunnison as an in situ recovery copper deposit. . .the company continues to look like a good long-term play on copper prices and is a Buy at current levels."

"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 >

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