Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF) said on Tuesday it is progressing on-time and under budget with a series of high-value-add (HVA) work programs at its flagship Gunnison Copper Project in southeast Arizona.
The Phoenix, Arizona-based company is working to enhance project economics ahead of a pre-feasibility study on the project.
Gunnison’s HVA initiatives include assessing the potential for by-product revenues from gravel and limestone, as well as new metallurgical studies on mineralized material and sulfide zones.
The firm has engaged a consulting firm to assess the commercial viability of about 760 million tons of alluvial gravel already classified as waste in the project’s preliminary economic assessment. If 10% of the material could be sold at $5 per ton, it could add up to $380 million in potential revenue, the company said.
The same firm is reviewing limestone by-product opportunities, focusing on about 85 million tons of Escabrosa limestone expected to be mined during pit development. Gunnison said crushed limestone in the region can sell for $20 to $60 per ton, and if half of the deposit could be monetized at the low end of that range, it could contribute approximately $850 million in gross revenue.
“We are excited the HVA programs are underway, progressing on-time and under-budget, with numerous catalysts in the next several months,” said Roland Goodgame, Gunnison’s senior vice president of business development.
“We are aggressively moving the Gunnison Open Pit forward, which is one of the largest copper projects in development in America.”
Gunnison also completed three drill holes in May targeting oxide mineralization, totaling 3,899 feet. The samples are currently undergoing LIBS scanning and will be assayed and tested for suitability in mineralized material sorting. Results from sorting tests are expected in August.
The company said permitting work is advancing with no federal approvals required.
In addition, Gunnison is launching a new investigation into deeper sulfide mineralization, a zone previously underexplored due to the project’s original in-situ recovery design. Gunnison noted it is collaborating with Nuton LLC, a Rio Tinto venture, to evaluate the applicability of Nuton’s proprietary leaching technology on sulfide material at the project.
Elsewhere, Gunnison’s Johnson Camp asset, which is under construction with first copper production expected in the third quarter of 2025, is fully funded by Nuton LLC and is designed to produce up to 25 million pounds of finished copper cathode annually.