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Gunnison Copper Project

Technical Report

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, NI 43-101 Technical Report, Prefeasibility Study Update” dated effective January 28, 2016.

Click here for detailed comparison tables of the 2014 PFS and the 2016 Updated PFS for both the Acid Plant and No Acid Plant options

Project Highlights 

North Star Probable Mineral Reserve of 4.46 billion pounds (775 million short tons grading 0.29% Cu) contained within a Measured & Indicated Resource of 4.95 billion pounds (866 million short tons grading 0.29% Cu).  Mineral Resources and Reserves are at a 0.05% cut-off.


The Gunnison Copper Project consists of 9,560 acres located 65 miles southeast of Tucson Arizona within the copper porphyry belt.  The towns of Benson and Wilcox are located nearby and can provide skilled labour for the Gunnison Copper Project.  The property is ideally located with access to electrical power on the property, previously developed infrastructure, and supported by an abundant water supply. 

    Location Map

Positive Prefeasibility Study

The PFS was completed by M3 Engineering & Technology Corporation ("M3") of Tucson, Arizona, with the effective date of January 28, 2016.

Highlights of the North Star Gunnison Copper Project Updated PFS (United States dollars)

  • Net Present Value (“NPV”) of $1.2 billion pre-tax and $829 million post-taxInternal Rate of Return (“IRR”) of 57.9% pre-tax and 45.8% post-tax;
    • at 7.5% discount rate using a life of mine (“LOM”) copper price of $2.75/lb;
  • Initial construction capital costs of $45.9 millionPayback period for initial capital of 1.8 years pre-tax and 2.6 years post-tax;
    • includes 20% contingency, 16% EPCM, freight, mobile equipment, owner’s costs and capital spares;
  • Average life-of-mine operating costs of $0.70/lb;
  • All-In Cost (all capital plus operating costs) of $1.24/lb;
  • Sensitivity analysis at a LOM copper price of $2.00/lb generates an IRR of 30.8% pre-tax and 26.2% post-tax.
  • Over 850 million pounds of copper added to the probable mineral reserve, an increase of 24%;
  • Mine life of 27 years (24 years of commercial production);
  • Staged production profile: initial production rate of 25 million pounds of copper cathode per annum using the existing JCM facilities, followed by an intermediate expansion stage to 75 million pounds per annum and final expansion stage to full production of 125 million pounds per annum (includes the construction of an acid plant at full production). The staged production profile makes possible the funding of future expansions out of cash flow;
  • Staged production approach lowers initial capital costs, reduces financing risk and speeds the timeline to first production.




2014 - 15 Feasibility Work Program

Budgeted-Hydrology-WellsT 2014-Diamond-Drilling-Res-OnlyT 2014-Diamond-Drilling-Met-OnlyT


Metallurgical Box Tests

Designed to simulate a mineralized fracture, the results from these box tests will provide relative acid consumption rates, and provide information on the kinetics of leaching.

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