May 12, 2016
Excelsior Mining Corp. (TSX-V: MIN) (FSE: 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
For further information regarding this press release, please contact:
Excelsior Mining Corp.
Concord Place, Suite 300, 2999 North 44 Street, Phoenix, AZ, 85018.
JJ Jennex, Vice President, Corporate Affairs
T: 604-681-8030 x240
E: [email protected]
www.excelsiormining.com
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.