The Johnson Camp mine has traditionally been a heap leach operation for the reason that Seventies. It includes two open pits, a two-stage crushing-agglomerating circuit, and a totally functioning solvent extraction-electrowinning (SX-EW) plant able to producing 25 million lb. of copper cathode per yr.
Earlier this yr, Nuton accomplished Stage 1 of the work program, consisting of mineralogy, predictive modelling, engineering and different take a look at work. In the meantime, Excelsior, as venture operator, accomplished diamond drilling, allowing actions, detailed engineering and venture execution planning.
The Stage 2 work is anticipated to take 5 years to finish, and, if profitable, would display key parts of Nuton’s expertise at industrial scale. It’s going to proceed based mostly on milestones associated to engineering and mobilization, infrastructure and development, mining, leaching, copper manufacturing, and post-leach rinsing.
Mining is anticipated to begin as quickly as yr one with first copper produced within the first half of 2025, in response to Excelsior.
Attaining all milestones would lead to full-scale business manufacturing of Nuton copper over a number of years at Johnson Camp. Income from operations will first be used to pay again Stage 2 prices to Nuton and can then be credited to Excelsior’s account after achievement of Excelsior’s relevant royalty and stream obligations.
In Thursday’s press launch, Excelsior mentioned it has accomplished the majority of the planning and engineering and has mobilized crews to start out development. Contracts have been awarded for the engineering procurement and the development of a brand new leach pad, which has commenced.
To facilitate the beginning of those actions and Stage 2, Nuton lately supplied funding of $7.9 million via August 2024. Further funding and actions can be introduced as they progress.
Upon completion of Stage 2, Nuton could have the suitable to type a three way partnership on the Johnson Camp mine, wherein Nuton and Excelsior will initially maintain 49% and 51% respective pursuits.
Shares of Excelsior Mining have been 7.7% greater at C$0.14 apiece by 1:45 p.m. ET, for a market capitalization of C$44.2 million.