PEA Of Open Pit Mining At The Gunnison Project

PHOENIX, AZ - Gunnison Copper Corp. reported on the Preliminary Economic Assessment (PEA) on the Gunnison Project in the Cochise Mining District, Arizona. The Gunnison Project is presented as a conventional open pit and heap leach operation which will produce finished copper cathode for domestic U.S. consumption.

The Gunnison Project, a fully vertically integrated operation producing finished copper cathode on-site in Arizona for domestic U.S. supply chains, has an after-tax net present value (8%) of $1.3 billion and an internal rate of return (IRR) of 20.9% at a long-term copper price of $4.10/lb. One of the most substantial open pit copper projects in the U.S. with total Measured and Indicated ("M&I") Mineral Resources in the open pit of 551 million tons at a total copper grade of 0.35%, capable of supplying 8% of recent annual U.S. domestic copper production1

Simplified and lower risk path to permitting; the Gunnison Project has current operating permits and there is a more streamlined amendment process to State and Local permits to proceed with open pit mining. Significant benefits for the community and local economy through the payment of over $840 million in U.S. federal, state, and local taxes, partnerships with local institutions such as Cochise College, and the creation of over 650 local jobs.

Average annual copper cathode production of 83,700 tons (167 million lbs) over the first 16 years and total production of 1,355,900 tons (2,712 million lbs) over the entire 18 year mine life at an average Cash Cost (C1) of $1.42/lb and Sustaining Cash Cost2 of $1.94/lb of copper produced. Total initial capital cost of $1.3 billion and after-tax payback period for initial capital of 4.1 years. Environmental advantages include lower water usage per pound of copper produced versus copper concentrate producers, up to 10% reduced energy consumption due to on-site clean energy production, and zero risk of environmental impacts from tailings dam failures as there are no tailings produced.

Stephen Twyerould, CEO, said, "The positive outlook for copper prices, combined with advancement of sulfide leaching technologies, and the greater overall copper extraction afforded by open pit mining and heap leaching, has prompted us to focus on an open pit alternative to ISR. We are very excited by these results, which clearly demonstrate the project is substantial and highly competitive amongst its peers."