VANCOUVER, BC–(Marketwired – May 12, 2016) –
Excelsior Mining Corp.
(TSX VENTURE: MIN)
(FRANKFURT: 3XS)
(OTCQX: EXMGF)
(“Excelsior” or the
“Company”) is pleased to announce that the Johnson Camp Mine (“JCM”) has been fully integrated into the Company and will provide the initial copper production facilities for the Gunnison Copper Project, expected to start in 2018. This news release provides an update on initiatives that have been completed or are underway with respect to JCM.
As per the December 15, 2015 news release, JCM was acquired through a court-appointed receiver for Nord Resources Corporation (“Nord”). The copper production facilities at JCM include a 4500 gallon per minute solvent extraction plant, tank farm, solution storage ponds, and an electrowinning plant with capacity of 25 million pounds of copper cathode per annum. Excelsior intends to flow the initial production solutions from the Gunnison Copper Project through these facilities. JCM was put on care and maintenance prior to the acquisition. Since the acquisition, Excelsior has continued to run fluids through the system in order to ensure that the production facility remains in good working order in anticipation of the commencement of in-situ recovery operations, scheduled for early 2018.
Since acquiring JCM, considerable work has been accomplished in bringing the property into full regulatory compliance as well as providing man power and funding for general site cleanup. The combination of a dry climate, limited production, and an effective care and maintenance program has left the current facilities in excellent condition, with many of the facility components resembling almost new structures. Recent photos of JCM can be viewed at the Excelsior website.
The current capacity at JCM is 25 million pounds of copper cathode per annum; however, management believes that the ability to expand the plant to 40 million pounds per annum is achievable, and could be accomplished for very limited capital. The feasibility study for the Gunnison Copper Project, which is scheduled for completion before year-end, will investigate opportunities for plant expansion at JCM. Initial production at JCM would be augmented through the construction of new production facilities at the neighboring Gunnison tenements, eventually forecasted to result in total copper production of 125 million pounds per annum by year seven.
In addition to the processing facilities, significant quantities of conventional mine processing equipment were acquired as part of the acquisition. To date, Excelsior has sold $300,000 worth of grasshopper conveyors. The Company will continue to pursue opportunities to divest itself of non-core assets that are not essential to the in-situ mining process. The Company considers this to be a prudent and non-dilutive means of raising capital.
Commenting on this progress, Stephen Twyerould, President and CEO, said, “Our production facility is in excellent working order and will remain so in preparation for the expected commencement of commercial production in 2018. Opportunities for production plant expansion represent significant upside for the Company and further substantiate the benefits of the Johnson Camp Mine acquisition.”
Excelsior also announces the retention of O&M Partners, a New York City based communications firm as a corporate advisor. O&M will assist the Company in targeting non-deal open-market investors through a virtual awareness campaign, which will introduce Excelsior to a national audience of micro-cap investors in 22 US markets. To learn more about O&M, visit www.oandmpartners.com. O&M Partners currently has no direct or indirect interest in the securities of Excelsior Mining or any right or intent to acquire such an interest. The appointment of O&M Partners is subject to Excelsior making the required filings with the TSX Venture Exchange. Under the terms of the engagement, O&M Partners will be compensated US$5000 per month over a 6-month term.
Qualified Person
Excelsior’s technical work on the Gunnison Copper Project is supervised by Stephen Twyerould, Fellow of AUSIMM, President & CEO of Excelsior and a Qualified Person as defined by National Instrument 43-101. Mr. Twyerould has reviewed and approved the technical information contained in this news release.
About Excelsior Mining
Excelsior Mining “The Copper Solution Company” is a mineral exploration and development company that is advancing the Gunnison Copper Project in Cochise County, Arizona. The project is an advanced staged, low cost, environmentally friendly in-situ recovery copper extraction project that is scheduled for commercial production in 2018.
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.
For more information on Excelsior, please visit our website at www.excelsiormining.com.
ON BEHALF OF THE EXCELSIOR BOARD
“Stephen Twyerould”
President & CEO
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to: (i) the technical viability of the Gunnison Project; (ii) the use of JCM facilities to process copper solution from the Gunnison Project; (iii) the timing and amount of production from the Gunnison Project; (iv) future sales of non-core assets; (v); and (iv) the ability to mine the Gunnison Project using in-situ recovery mining techniques.
In certain cases, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource and reserve estimates, copper and other metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Gunnison Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the permitting process, the estimation of insurance coverage, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Gunnison Project, risks relating to variations in mineral resources and reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to the ability to access infrastructure, risks relating to changes in copper and other commodity prices and the worldwide demand for and supply of copper and related products, risks related to increased competition in the market for copper and related products and in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Gunnison Project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, environmental risks and the additional risks identified in the “Risk Factors” section of the Company’s reports and filings with applicable Canadian securities regulators.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information.
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.
For further information regarding this press release, please contact:
Excelsior Mining Corp.
Concord Place Suite 300
2999 North 44th Street
Phoenix, AZ, 85018
JJ Jennex
Vice President, Corporate Affairs
T: 604-681-8030 x240
E: [email protected]
www.excelsiormining.com
