Bay Street News

Highland Copper Provides Progress Update for Copperwood and White Pine Projects

VANCOUVER, British Columbia, June 13, 2024 (GLOBE NEWSWIRE) — Highland Copper Company Inc. (TSXV: HI; OTCQB: HDRSF) (“Highland” or the “Company”) is pleased to provide key updates at its Copperwood project (“Copperwood”) and its joint venture with Kinterra Copper LLC (“Kinterra”), the White Pine North project (“White Pine”).

Key Highlights

Copperwood Update

The Copperwood project is Highland’s 100%-owned, fully-permitted copper project in the Upper Peninsula, Michigan, USA. The Copperwood Feasibility Study1 issued in April 2023 demonstrated a robust project producing 64.6 million pounds of copper annually (approximately 30 thousand tonnes) over an initial 11-year mine life. Notably, the project has significant leverage to copper price and multiple opportunities to improve project economics, particularly converting its significant inferred resource (which is excluded from Feasibility Study economics).

Table 1 – Metal Price Sensitivities – After-Tax Results1

Cu Price
($/lb)
NPV 0%
($M)
NPV 8%
($M)
IRR
(%)
Payback
(years)
5.00 1,013 507 33.4 2.0
4.50 729 333 25.6 2.5
4.25 587 246 21.4 2.9
4.00 456 168 17.6 3.5
3.75 308 75 12.4 4.4

1 Source: Technical report entitled “Feasibility Study Update Copperwood Project Michigan, USA” with an effective date of March 6, 2023 prepared for Highland by G Mining Services available at www.sedarplus.ca (the “Copperwood Technical Report”).

Key Copperwood Updates:

Highland intends on initiating detailed engineering and project financing in 2024 as it proactively advances Copperwood toward a construction decision. Copperwood remains one of few fully-permitted copper projects in the US and stands ready to take advantage of strong long-term copper fundamentals.

White Pine Update

While Highland focuses on the Copperwood project, its joint venture partner, Kinterra Copper USA LLC, is applying its technical and financial strength to the White Pine project. Highland issued a Preliminary Economic Assessment2 for White Pine in July 2023 reflecting a 22-year mine life with average annual payable copper production of 93.5 million pounds (approximately 42 thousand tonnes). Highland Copper has a 34% interest in the project. Key White Pine updates include:

Highland Copper has been particularly pleased with the progress its JV partner, Kinterra, is making at White Pine to support further engineering studies and permitting efforts.

Barry O’Shea, CEO of Highland Copper, stated, “Highland is proactively moving both of its key projects forward at the right time, coinciding with signs that we are at the outset of a strong copper cycle. It is exciting to continue early site work at Copperwood, while simultaneously working with the state of Michigan on a grant that could offset $50 million of the initial capital cost of the project. It is equally exciting to work alongside Kinterra as they devote their full energy into the White Pine project, progressing it toward further engineering studies and permitting. We are confident that their technical strength and focus on engineering trade-offs will continue to improve the project.”

2 The preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Information regarding the basis for the preliminary economic assessment and the qualifications and assumptions relied upon, are set out in detail in the report entitled “Preliminary Economic Assessment, White Pine North Project, Michigan, USA” dated September 7, 2023 available under Highland’s profile on SEDARPlus (the “White Pine Technical Report”).

Qualified Person Statement

The technical information in this news release has been reviewed and approved by Michael J. Foley, P.Eng., a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Highland Copper Company

Highland Copper Company Inc. is a Canadian company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A. The Company owns the Copperwood deposit through long-term mineral leases and 34% of the White Pine North project through a joint venture with Kinterra Copper USA LLC. The Company also owns surface rights securing access to the Copperwood deposit and providing space for infrastructure at Copperwood as required. The Company has 736,363,619 common shares issued and outstanding. Its common shares are listed on the TSX Venture Exchange under the symbol “HI” and trade on the OTCQB Venture Market under symbol “HDRSF”.

More information about the Company is available on the Company’s website at www.highlandcopper.com and on SEDAR+ at www.sedarplus.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) within the meaning of applicable Canadian securities legislation. These statements include, without limitation, statements with respect to: (a) anticipated 2024 early site work program at Copperwood and anticipated benefits thereof (b) the potential approval of the Michigan Strategic Fund grant (c) future metallurgical, geotechnical and hydrogeological testing at White Pine; (d) the potential for future permit applications for White Pine based on ongoing environmental baseline studies; (e) progress of the summer drilling program at White Pine; and (f) the potential for further resource definition and completion of a feasibility study at White Pine. The forward-looking statements are subject to a number of assumptions, including those set out in the technical report entitled “Copperwood Technical Report and the White Pine Technical Report”. These underlying assumptions may prove to be incorrect. Important factors that could materially impact the Company’s expectations include: changes in project parameters as plans continue to be refined; availability of services, materials and skilled labour to complete planned early site works, testing and drilling; effects of regulation by governmental agencies; unexpected cost increases, which could include significant increases in estimated capital and operating costs and the effects of inflation; fluctuations in metal prices and currency exchange rates; general market and industry conditions, the results of baseline studies and test work may result in unforeseen issues which could delay or hamper advancement of the projects, the results of ongoing drill programs may not result in identification or confirmation of resources, the results of work programs at White Pine may not warrant progressing to a feasibility study, and the other risks set out in the Company’s public disclosure documents filed on SEDARPlus. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements in this news release are reasonable, undue reliance should not be placed on forward looking statements. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and the Company undertakes no obligation to update forward-looking statements except as required by law.

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.

For further information or media requests, please contact:

Barry O’Shea, CEO
Email: info@highlandcopper.com
Website: www.highlandcopper.com


Bay Street News