Positive Prefeasibility Study At The Gunnison Copper Project

VANCOUVER - Excelsior Mining Corp. reported results of a comprehensive Prefeasibility Study (PFS) on the North Star Deposit of the Gunnison Copper Project, located in southern Arizona. The PFS was completed by M3 Engineering & Technology Corporation (M3) of Tucson, AZ and is effective as of January 13, 2014.

Highlights of the North Star Gunnison Copper Project PFS Acid Plant option include: Average life-of-mine operating costs of US$0.68 per pound; Other costs of $0.12 per pound, including Royalties of $0.029 per pound; 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.

The completion of a positive Prefeasibility Study is a significant de-risking event in Excelsior’s development and we are very pleased with the results. 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, says Mark J. Morabito, Chairman of Excelsior.  With initial production expected to commence in Q4 2016 we are looking forward to beginning the next phase of development.

Commenting on the results, President and CEO, Stephen Twyerould said, With the completion of this major milestone, the commercial case for the Gunnison Copper Project has grown even stronger. 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.