Gunnison Copper expects to produce cathode at JCM in Q3

Mar 24, 2025

2025-03-21 15:06 ET – News Release

Mr. Shawn Westcott reports

GUNNISON COPPER PROVIDES A CONSTRUCTION UPDATE FOR THE JOHNSON CAMP MINE IN SOUTHEAST ARIZONA

Gunnison Copper Corp. has provided a construction update for the fully permitted Johnson Camp mine (JCM) in southeast Arizona.

Further to the last update where it was announced the mining fleet had been mobilized and mining activities such as prestripping had begun (see Gunnison news release dated Dec. 16), the company is pleased to report JCM construction activities are progressing well and on track to produce cathode in Q3 2025.

Mining of mineralized material commenced in January, 2025, and is being stockpiled in advance of the completion of the leach pad. Leach pad phase 1 is complete, and phase 2 of the leach pad follows closely behind. With phase 2 advancement the company will begin installing Nuton’s processing equipment and ultimately start stacking sulphide and oxide production mineralized material. The company has completely redesigned and constructed a modern laboratory for on-site material and process analysis. The lab will begin ramping up in April and will be commissioned once production from the leach pad commences. In addition, the company’s HR group is progressing with its staffing plan, with a focus on hiring locally, and has added exceptional talent to the Gunnison team.

“The fast pace at which our construction partners continue to progress the Johnson Camp project is nothing short of impressive. In roughly 12 months we will have transformed Gunnison Copper into a nimble open pit copper producer with a future as bright as the Arizona sky we enjoy daily,” noted Robert Winton, senior vice-president of operations of the company.

The company also announces that long serving board member Stephen Axcell has retired as a director of the company effective March 20, 2025. Initially appointed in 2018, Mr. Axcell has provided invaluable contributions during his more than six years as a board member of the company and the company thanks Mr. Axcell for his contributions and support during his tenure.

About Gunnison Copper Corp.

Gunnison Copper is a multiasset pure-play copper developer and producer that controls the Cochise mining district (the district), containing 12 known deposits within an eight-kilometre economic radius in the southern Arizona copper belt.

Gunnison exists to develop and operate copper mines in southern Arizona to produce fully made in America finished copper cathode to directly supply American energy, defence and manufacturing supply chains. Gunnison proudly hires locally, purchases locally and sells its products locally. Gunnison invests in its employees, their families and the communities around it. Gunnison operates safely and responsibly with a focus on technology and positive societal impact, while also emphasizing long-term value creation for stakeholders.

Its flagship asset, the Gunnison copper project, has a measured and indicated mineral resource containing over 831 million tons with a total copper grade of 0.31 per cent (measured mineral resource of 191.3 million tons at 0.37 per cent and indicated mineral resource of 640.2 million tons at 0.29 per cent), and a preliminary economic assessment (PEA) yielding robust economics including an NPV8 (net present value, 8-per-cent discount rate) per cent of $1.3-billion, IRR (internal rate of return) of 20.9 per cent and payback period of 4.1 years. It is being developed as a conventional operation with open pit mining, heap leach and SX/EW refinery to produce finished copper cathode on site with direct rail link.

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. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

In addition, Gunnison’s Johnson Camp asset, which is under construction with first copper production expected in Q3 2025, is fully financed by Nuton LLC, a Rio Tinto venture, with a production capacity of up to 25 million pounds of finished copper cathode annually.

Other significant deposits controlled by Gunnison in the district, with potential to be economic satellite feeder deposits for Gunnison project infrastructure, include Strong and Harris, South Star, and eight other deposits.

For additional information on the Gunnison project, including the PEA and mineral resource estimate, please refer to the company’s technical report entitled “Gunnison Project NI 43-101 Technical Report Preliminary Economic Assessment” dated effective Nov. 1, 2024, and available on SEDAR+.

Dr. Stephen Twyerould, fellow of AUSIMM, president and chief executive officer of the company, is a qualified person as defined by National Instrument 43-101. Mr. Twyerould has reviewed and is responsible for the technical information contained in this news release.

We seek Safe Harbor.

https://www.gunnisoncopper.com/