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March 5, 2012
Excelsior Mining Corp. (TSX-V: MIN) (Frankfurt: 3XS) (OTCQX: EXMGF) (“Excelsior”) is pleased to announce the details of its 2012 work program for the Gunnison Copper Project, located in southern Arizona. Building on the strong positive results from the Preliminary Economic Assessment (PEA), the proposed $7.3 M program is aimed at completing a pre-feasibility study this year and will include:
• 5 diamond drill holes for metallurgical testing, with up to 10 column leach tests
• 5 percussion holes (wells) for base line environmental studies
• Up to 6 large diameter percussion holes for hydrological test wells
• Extensive geophysical testing for hydrology
• Approximately 18 diamond drill holes for structural, geological and resource definition
• Engineering studies for the pre-feasibility study
“After a very successful 2011, we are excited to kick-off our 2012 work program, with the goal of completing a pre-feasibility study by the end of the year,” stated Stephen Twyerould, President and CEO of Excelsior. “We are confident that by initiating a number of the necessary activities simultaneously, we will be able to maintain our proposed timeline for completion of pre-feasibility in 2012.”
The program is designed to advance the project geologically, hydrologically and metallurgically. The resultant data will be used to optimize well field design, leaching solution composition, as well as provide critical information for groundwater quality control and ultimately, project reclamation. Optimizing all the various aspects of the project will enable Excelsior to improve on the Gunnison Project’s already impressive positive PEA results.
Highlights of the North Star Gunnison Copper Project PEA include:
• After-Tax NPV of US$561.7 million (discounted at 7.5%, using US$2.50 copper price)
• After-Tax IRR of 30%
• Payback period of 3.6 years
• Initial capital costs of US$324.7 million (including SXEW plant, Infrastructure and Acid Plant)
• Total operating costs of US$0.68 per pound (averaged over life of mine)
• Royalty of US$0.01 per pound
• Annual production rate of 85.65 million pounds of copper
• Commercial production commencing in 2015, with a mine life of 20 years
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.
Project Summary
The Gunnison Copper Project is located approximately 65 miles southeast of Tucson, AZ. The focus of the project is the North Star deposit, which currently has a total NI 43-101 indicated resource of 3.21 billion pounds of oxide copper (511 M tons at 0.31%) and an inferred resource of 0.88 billion pounds of oxide copper (159 M tons at 0.28%). This oxide resource has 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.
About Excelsior
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
"Stephen Twyerould"
President & CEO
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: info@excelsiormining.com
www.excelsiormining.com
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