Excelsior Mining Corp. Announces Management Changes
Jun 27 14
Excelsior Mining Corp. announced that Mark Morabito who was previously Chairman of the Board has been appointed as Executive Chairman of the Company. Mr. Morabito has been the Chairman of the company since 2010 and in his expanded role as Executive Chairman he will have primary responsibility for capital markets, financing and shareholder communications. In addition, Roland Goodgame who was previously Vice President, Exploration has been appointed Executive Vice President. Mr. Goodgame's promotion coincides with the movement of the Company into the feasibility study stage and he will take a lead role in the work required to complete the feasibility study, reporting directly to the President & Chief Executive Officer.
Excelsior Mining Corp. Auditor Raises 'Going Concern' Doubt
Apr 30 14
Excelsior Mining Corp. filed its Annual on Apr 30, 2014 for the period ending Dec 31, 2013. In this report its auditor, Davidson & Company, gave an unqualified opinion expressing doubt that the company can continue as a going concern.
Excelsior Mining Corp. Releases Positive Prefeasibility Study Demonstrating $1.24 Billion Pre-Tax NPV and 59.7% Pre-Tax IRR for the Gunnison Copper Project
Jan 17 14
Excelsior Mining Corp. announced the results of a comprehensive Prefeasibility Study on the North Star Deposit of the Gunnison Copper Project, located in southern Arizona. The PFS was completed by M3 Engineering & Technology Corporation and is effective as of January 13, 2014. 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. The PFS demonstrates robust project economics in both the "Acid Plant" and "Non-Acid Plant" scenarios, with the Acid Plant option adding an additional $174.2 million to the project pre-tax NPV. Based on an initial annual production rate of 110 million pounds, the PFS indicates that including an Acid Plant as a component of the project, generates a pre-tax NPV of $1.24 billion, at a cash flow discount rate of 7.5%. The pre-tax IRR for this option is 59.7% with a payback period of 1.8 years. On an after-tax basis, the PFS shows an NPV(7.5) of $825.83 million, IRR of 44.7% and a payback period of 2.4 years. Without an Acid Plant, the project still has a significant pre-tax NPV(7.5) of $1.06 billion and an IRR of 61.4%, (after-tax NPV(7.5) of $721.41 million and an IRR of 46.1%). The after-tax analysis is based on a number of assumptions which will be fully set out in the Report. The level of accuracy of the PFS is considered to be +/-20%. Both scenarios used the following parameters over the 20 year life of the project: copper selling price of $2.75 per pound, total copper recovery of approximately 47% (based on a combination of metallurgical recovery and sweep efficiency), average of 8.14 pounds of acid consumed for every pound of copper produced, acid price of $45.70/ton for the Acid Plant option and $125/ton for the Non-Acid Plant option, state tax rate of 6.97%, and a federal tax rate of 35%. Total initial capital expenditures for the "Acid Plant" option (including contingency) are estimated at $284.74 million. Sustaining capital, which includes the acid plant built in year three, water treatment facilities and production wellfield are estimated at $602.4 million. Net closure costs are estimated at $44.5 million. For the "Non-Acid Plant" option, total initial capital expenditures (including contingency) are estimated at $284.74 million. Sustaining capital, which includes the water treatment facilities and production wellfield are estimated at $528.8 million. Net closure costs are estimated at $42.3 million. The PFS assumes a copper selling price of $2.75/lb. Average life-of-mine operating direct cash costs are estimated at $0.68/lb for the "Acid Plant" option and $0.98/lb for the "Non-Acid Plant" option. The Gunnison Copper Project is located in a remote section of Cochise County about 65 miles east of Tucson, Arizona in the Johnson Camp Mining District. The property is within the copper porphyry belt of Arizona. The focus of the project is the North Star deposit, which currently hosts a total Measured and Indicated mineral resource of 3.91 billion pounds of copper (683 M tons at 0.29%) and an Inferred mineral resource of 1.40 billion pounds of copper (338 M tons at 0.21%). The Probable mineral reserves for the North Star Deposit are 3.61 billion pounds of copper (632 M tons at 0.29%). This oxide and transition portion of the mineral reserve has the potential to be mined using in-situ recovery methods. The proposed project will produce 110 million pounds of copper per year for the first 14 years, then declining to year 20. Processing will take place at the Gunnison site and will involve solvent extraction and electrowinning to produce pure copper cathode sheets.