Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF) announced that it has commenced a series of high-value-add (HVA) work programs at its Gunnison copper project in southeast Arizona.
These programs are designed to identify additional revenue opportunities and support the company’s upcoming pre-feasibility study.
The three-to-six-month initiative includes drilling, metallurgical testing, and permitting work.
A drill rig is being mobilized this week to begin testing oxide copper zones, while other efforts focus on assessing the potential of by-products and untapped mineralization.
Gunnison expects to mine 759 million tons of alluvial gravel over the life of the project. If just 10% of this material can be sold at $5 per ton, it could generate up to $380 million in revenue, Gunnison said.
Another involves 85 million tons of limestone, which, if 50% is sold at $20 per ton, could add around $850 million.
Both materials are already included in the mine plan and do not require additional processing, meaning they can potentially be monetized at minimal additional cost, Gunnison said.
The company is also testing optical sorting of oxide copper material. Early results indicate that removing unmineralized waste before leaching could cut acid use and significantly reduce operating costs.
The current drill program will provide samples for further mineralogical analysis and sorting tests.
Pivotal time
Additionally, Gunnison plans to evaluate deeper sulfide mineralization, which has not been thoroughly explored under the previous in-situ recovery approach.
Gunnison has an agreement with Nuton LLC, a Rio Tinto venture, to assess whether its proprietary leaching technology could be applied to these sulfides.
Roland Goodgame, Gunnison senior vice president of business development, said the fully funded HVA programs differentiate the project from its peers in Arizona.
“Several of the HVA programs, such as the overburden by-product monetization and mineralized material sorting are opportunities that are unique to the Gunnison copper project due to the geological environment,” Goodgame said.
“These programs, if successful have the potential to materially enhance the project's already positive economics and provide guidance for the PFS.
"We are moving both of our mines forward at a pivotal time for copper in Arizona and in the USA, meeting the need for domestic production.”