Gunnison to use Lunasonde tech for survey at Cochise

Executive Summary

• Gunnison Copper Corp. entered into a Collaboration Framework Agreement with Lunasonde Inc. to conduct an initial high-resolution subsurface survey using airborne georadiotomography (aGRT) technology to identify critical minerals in Arizona's Cochise Mining District.
• The company received a third conversion notice from Nebari Natural Resources Credit Fund I LP, resulting in the issuance of 2,384,358 common shares and a reduction of the convertible principal amount of the second ARCA by $500,000.
• The release includes technical highlights of the Gunnison Copper Project, including a Preliminary Economic Assessment (PEA) showing an NPV of $1.3 billion and an IRR of 20.9%, as well as production details for the Johnson Camp asset.

Key Details

• Collaboration Agreement:
  • Partner: Lunasonde Inc. (defense and mineral exploration technology company).
  • Technology: Airborne georadiotomography (aGRT) for next-generation subsurface remote sensing.
  • Scope: Initial high-resolution subsurface survey over a defined portion of Gunnison's mineral property portfolio in the Cochise mining district, southern Arizona.
  • Process: Includes test and calibration flights, followed by data processing and analysis to generate three-dimensional subsurface imaging of anomalies with potential to host critical minerals.
  • Objective: Evaluate aGRT as a complementary exploration and targeting tool across Gunnison's land position, which hosts multiple known copper deposits near existing infrastructure.
• Financing / Debt Conversion:
  • Counterparty: Nebari Natural Resources Credit Fund I LP.
  • Instrument: Third conversion notice pursuant to the second amended and restated credit agreement (second ARCA).
  • Conversion Amount: $500,000 (U.S.) reduction in principal.
  • Conversion Price: 20.97 U.S. cents (converted from 30 cents).
  • Shares Issued: 2,384,358 common shares.
  • Purpose/Intent: Nebari advised conversion is for the purpose of sale and may convert further amounts. Gunnison intends to use proceeds from the sale of previously announced 48C tax credits to repay the remaining convertible portion of the second ARCA, potentially leading to full repayment.
• Project Technical Data (Gunnison Copper Project):
  • Location: Cochise mining district, Southern Arizona copper belt.
  • Resource: Measured and indicated mineral resource of over 831.6 million tons at a total copper grade of 0.31%.
    • Measured: 191.3 million tons at 0.37% Cu.
    • Indicated: 640.2 million tons at 0.29% Cu.
  • PEA Economics:
    • NPV (8% discount rate): $1.3 billion.
    • IRR: 20.9%.
    • Payback period: 4.1 years.
  • Development Plan: Conventional operation with open pit mining, heap leach, and SX/EW refinery; direct rail link for finished copper cathode.
• Johnson Camp Asset:
  • Status: In production.
  • Financing: Fully financed by Nuton LLC (a Rio Tinto venture).
  • Capacity: Up to 25 million pounds of finished copper cathode annually.
• Other Assets:
  • Significant deposits with potential as economic satellite feeder deposits include Strong and Harris, South Star, and eight other deposits.

Notable Quotes

• "This collaboration reflects Gunnison's disciplined approach to innovation and data-driven decision-making," said Stephen Twyerould, president and chief executive officer of Gunnison Copper. "We are continuously evaluating advanced technologies that have the potential to enhance our geological understanding, improve targeting efficiency and support long-term value creation across the Cochise mining district."
• "Our partnership with Gunnison is a pivotal first step towards deploying aGRT for mineral exploration across the globe and securing our nation's critical mineral supply," said Jeremiah Pate, founder and chief technology officer of Lunasonde.