2012 News Releases
Excelsior Files Preliminary Economic Assessment Technical Report for Gunnison
January 13, 2012
Excelsior Mining Corp. (TSX-V: MIN) (Frankfurt: 3XS) (OTCQX: EXMGF) (“Excelsior”) is pleased to announce that it has filed a National Instrument (“NI”) 43-101 Technical Report dated November 18, 2011 on SEDAR at www.sedar.com. The Report is with respect to Excelsior’s Preliminary Economic Assessment (“PEA”) on the Gunnison Copper Project in southern Arizona, the results of which were announced in a December 1, 2011 press release.
Highlights of the North Star Gunnison Copper Project PEA include:
Table 1. NPV Comparison of Acid Plant and Base Case Scenarios
NI 43-101 requires disclosure of any differences between the initial news release and the final Report. There was only one difference in the final report which is the discount rate for the calculation of the “Acid Plant” scenario is 7.5% in the Report as compared to 8% in the initial news release. The after-tax NPV for the Acid Plant scenario, discounted at 8% is US$526.1 million. The pre- and post-tax NPV’s for the two scenarios (Acid Plant vs. Base Case (no acid plant)) at the two different discount rates are summarized in Table 1 above.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the conclusions reached in the PEA will be realized.
The Gunnison Copper Project is located approximately 65 miles southeast of Tucson, AZ. The project, which includes both the North Star and South Star deposits, currently has a total NI 43-101 indicated resource of 3.21 billion pounds of oxide copper (511 M tons at 0.31% at the North Star deposit) and an inferred resource of 1.26 billion pounds of oxide copper (221 M tons at 0.29%; 159 M tons at North Star and 62 M tons at South Star). These oxide resources have the potential to be mined using in-situ recovery methods. The Gunnison property also has the added benefit of being situated in a very remote location, near an existing mining operation. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Excelsior is an exploration and development company with a copper project located within the copper porphyry belt of Arizona. The Gunnison Copper Project is located close to the required infrastructure and its oxide resource has the potential to be mined using in-situ recovery methods. The Excelsior team consists of experienced professionals with proven track records of advancing projects towards production. Excelsior’s exploration work on the Gunnison Property is supervised by Dr. Stephen Twyerould, Fellow of AUSIMM, President and CEO of Excelsior, and a Qualified Person as defined by NI 43-101. Dr. Twyerould has reviewed and approved the technical information disclosed in this news release.
Further details about Excelsior can be found at: http://www.excelsiormining.com. Further information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: “Gunnison Copper Project Preliminary Economic Assessment, NI 43-101 Technical Report” dated November 18, 2011.
ON BEHALF OF THE EXCELSIOR BOARD
Excelsior Mining Corp.
JJ Jennex, Vice President, Corporate Affairs
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and no securities regulatory authority has either approved or disapproved of the contents of this release.