Gunnison Copper Announces Updated Preliminary Economic Assessment of Its Flagship Gunnison Copper Project Reporting Post-Tax NPV8 of US$2.0 Billion

Executive Summary

• Gunnison Copper Corp. released an updated NI 43‑101 PEA for its 100% owned Gunnison Copper Project, showing a post‑tax NPV₈ of US$1.95 billion and an IRR of 22.7%, representing a +55% ($692 M) increase versus the 2024 PEA.
• The project now includes the high‑grade Strong & Harris satellite deposit (25 Mt @ 0.85% Cu), material sorting technology, cement/limestone co‑products, and other cost‑saving initiatives that together contribute ~83% of the NPV uplift.
• Average annual copper cathode production is projected at 174 M lb (87 kt) for the first 15 years, with a life‑of‑mine of 21 years, cash costs of $1.69/lb Cu, and all‑in sustaining cost of $2.06/lb Cu.

Key Details

• Project Scope & Scale
• Open‑pit, heap‑leach, SX/EW operation producing 99.999% pure copper cathode.
• Leach pad: 541 Mt @ 0.43% Cu (including 25 Mt @ 0.85% from Strong & Harris).
• Total copper produced over LOM: 3.2 B lb; average annual production 174 M lb (first 15 yr).
• Economic Highlights (Base Case $4.60/lb Cu)
• NPV₈ (after‑tax): $1,952 M (vs. $1,260 M in 2024 PEA).
• IRR (after‑tax): 22.7% (vs. 19.5% prior).
• Payback period: 3.9 yr (vs. 5.2 yr prior).
• Avg. annual free cash flow (Y1‑Y15): $366 M ($514 M at $5.75/lb spot).
• Cost Structure
• Cash cost (C₁): $1.69/lb Cu.
• Sustaining cash cost: $2.00/lb Cu.
• All‑in sustaining cost (AISC): $2.06/lb Cu – in lower half of global copper cost curve.
• Capital Expenditures
• Initial capex (incl. contingency): $1,544 M (excluding acid plant).
• Expansion capex (cement plant, etc.): $682 M.
• Sustaining capex: $613 M.
• Major cost items: ore sorting equipment ($205.4 M), cement plant ($326 M), autonomous haul trucks ($14 M), acid plant reduction ($19 M).
• Cement & Limestone Co‑products
• Cement plant (1 Mt/yr) – capex $326 M, sales price $157.21/ton.
• High‑purity limestone (133 Mt total) – sales $4.80/ton; adds $130 M NPV₈.
• Resource Estimates (Effective 2026‑01‑23)
• Gunnison Deposit: Measured 191.5 Mt @ 0.37% Cu, Indicated 654.5 Mt @ 0.31% Cu → 5,190 kt Cu contained.
• Strong & Harris Deposit (satellite): Inferred 76 Mt @ 0.49% Cu, plus Zn/Ag credits.
• Financial Model Inputs
• Copper price assumption: $4.60/lb (consensus) / $5.75/lb (spot).
• Acid price $210/ton (purchase), $190/ton (sale); sulfur $160/ton; diesel $2.96/gal; power $0.079/kWh.
• Royalties & Metal Stream
• Greenstone royalty: 3.0% gross revenue.
• Triple Flag metal‑stream: 25 M lbpa payable copper at 25% of LME settlement price; upfront deposit $65 M received.
• Additional royalties: Callinan (1%), ASLD sliding net return (2–8%).
• Option Agreements
• Option to acquire 3,906.57 acres of land – initial payment $1 M, annual $250k, final purchase price up to $37 M depending on timing.
• Risk & Opportunity Highlights
• Slope stability, blasting cost, leach‑pad hydraulics, acid consumption, permitting, and ISR vs. open‑pit options discussed.
• Opportunities: material sorting (reduces acid use), steeper pit walls, higher copper recoveries, in‑pit leaching, expanded cement/limestone markets.
• Next Steps
• Recommendation to proceed with a Prefeasibility Study (PFS) (~18 months).
• PFS budget: total $29.7 M covering resource upgrade, metallurgy, geotechnical work, pit design, and infrastructure studies.
• Anticipated subsequent steps: detailed engineering, permitting, financing, and potential construction of cement plant (years 4‑5) after initial capex payback.

Notable Quotes

• Dr. Stephen Twyerould, CEO: “The updated PEA underscores the scale and compelling economics… delivering an after‑tax NPV₈ of approximately US$2.0 billion, a 23% IRR, and a 3.9‑year payback… positioning Gunnison as one of the most financially compelling copper development projects in the United States.”