Mining Intelligence and News
United States

Gunnison OP Project

Click for more information

Categories

Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Copper
Mining Method
  • Truck & Shovel / Loader
Project Timeline... Lock
Mine Life... Lock
SnapshotIn November, 2024, Gunnison Copper completed a Preliminary Economic Assessment of Gunnison Project, outlining an open pit heap leach and SX/EW operation extending over 18 years and producing LME Grade A copper cathodes directly onsite.

The Gunnison Project was previously designed as a copper in-situ recovery ("ISR") mine using solvent extraction-electrowinning ("SX-EW") to produce copper cathode. However, due to the technical risks of ISR and substantially improved viability of the open pit operation, Gunnison Copper intends to focus the Prefeasibility Study on an open pit operation as the alternative to ISR.

Several opportunities have been identified to enhance the viability and economic attractiveness of the open-pit project, such as monetization of mined gravel or limestone, sorting mineralized material, mining exposed sulfide mineralization and etc. These opportunities will be assessed during the Gunnison Open Pit Prefeasibility Study.

Owners

SourceSource
CompanyInterestOwnership
Gunnison Copper Corp. 100 % Indirect
The Gunnison Project is held by Gunnison Copper Corp. through its wholly owned subsidiary Excelsior Mining Arizona, Inc.

Contractors

Lock

- subscription is required.

Deposit type

  • Skarn

Summary:

The Gunnison Deposit is a classic copper skarn (Einaudi et al, 1980 and Meinert et al, 2005). Skarn deposits range in size from a few million to 500 million tonnes and are globally significant, particularly in the American Cordillera. They can be stand-alone copper skarns, which are generally small, or can be associated with porphyry copper deposits and tend to be very large. The Gunnison Deposit is large, at the upper end of the range of size for skarn deposits and is likely associated with a mineralized porphyry copper system that has not been discovered.

Gunnison Deposit Geology
The Gunnison deposit is covered by un-mineralized basin fill, varying between 300 and 800 feet in thickness. The mineralized Paleozoic host rocks below the basin fill strike approximately north-northwest and dip 20° to 45° eastnortheast. Baker (1953) recognized three sets of faults in the Johnson Camp area and similar faults have been interpreted in the Gunnison deposit area. These faults include the “Northeaster” (N10° to 30°E striking; 70° to 75° dip to the SE), “Easter” (N60° E to S60° E striking; 30° to 50° S and higher angle reverse faults dipping 75° S) and “Northwestern” orientations (N15° W strike; steep E or W dip). Only minor displacements are thought to have occurred in the Gunnison deposit area; however, numerous sheared and brecciated faults, generally filled with copper-oxide mineralization, cut through the deposit.

The Paleozoic host rocks have been intruded by the Texas Canyon quartz monzonite along the western margin of the deposit. The intrusion has formed wide zones of calc-silicate and hornfels alteration, as well as extensive low-grade copper sulfide mineralization within the Paleozoic rocks. Metamorphic alteration grading outward from the stock includes garnet-wollastonite-idocrase, diopside, tremolite and chlorite-talc (Kantor, 1977) (Figure 7-3). More specifically, the Martin Formation grades from a wollastonite-diopside-rich rock near the porphyry, to a distal diopside-tremolite-actinolite assemblage, and finally to dolomite. The Abrigo has garnet-actinolite-epidote-diopside alteration with some biotite hornfels near the porphyry, and this grades to a distal tremolite alteration leading into un-metamorphosed limey shale. Quartz-orthoclase-carbonate ± magnetite and chalcopyrite veins are characteristic of the lower Abrigo where it is mineralized.

Mineralization
Within the Project area the important mineralized host rocks include the Abrigo and Martin Formations and, to a lesser extent, the Horquilla Limestone, and the lower parts of the Escabrosa Limestone. Mineralization is also found in the Bolsa Quartzite and Precambrian basement rocks. Copper mineralization is related to calc-silicate skarns that have replaced these carbonate rocks adjacent to the Texas Canyon quartz monzonite (TQM).

Oxidation has occurred to a depth of approximately 1,600 feet and has resulted in the formation of dominantly chrysocolla with minor tenorite, copper oxides, and secondary chalcocite. Copper-oxide mineralization is present in the calc-silicate skarns as fracture coatings and vein fillings mainly in the form of chrysocolla. The remainder of the oxide mineralization occurs as replacement patches and disseminations.

Copper-oxide mineralization extends over a strike length of 11,100 feet, has an aerial extent across strike of up to 3,000 feet and is more than 900 feet thick in places.

Copper sulfide mineralization has formed preferentially in the proximal (higher metamorphic grade) skarn facies, particularly within stratigraphic units such as the Abrigo and Martin Formations, and within structurally complex zones. There are three types of sulfide mineralization within the skarns. In decreasing order of abundance, these are fracture coatings and vein fillings, distinct quartz-orthoclase-carbonate ± magnetite and chalcopyrite veins 0.2 to 10 cm wide (Weitz, 1976), and disseminations. The veins have retrogressive haloes of chlorite, actinolite and epidote. Primary mineralization also occurs as stringers and veinlets of chalcopyrite and bornite.

Texturally, pyrite and magnetite are later than, and replace, the skarn minerals, and chalcopyrite formed last. The magnetite occurs as disseminated 0.2 to 0.5 mm euhedral to anhedral grains and is closely associated with pyrite. Ninety percent of the magnetite is in the skarns and may compose up to five percent by volume of the rock. The disseminated magnetite and magnetite bearing veins are most likely what is giving the magnetic response for the deposit (Colburn and Perry, 1976).

Primary chalcopyrite-molybdenite disseminations and veins also occur in the mineralized porphyry below and to the west of the skarn mineralization at the Gunnison Deposit. Only nine drillholes intersected the quartz monzonite over significant lengths (lengths > 100 feet). Most were mineralized with a best interval of 289 feet averaging 0.31% Cu and 0.028% Mo, including 30 feet at a grade of 1.35% Cu. This mineralization has never been fully assessed.

Both oxide and sulfide mineralization exhibit strong fracture control. This fracturing and faulting are best developed in terms of width and close spacing in a zone around the intrusive contact, and this decreases away from the intrusive contact in the less altered rocks to the east. The initial formation of the skarn created denser minerals and liberated CO2 resulting in volume reduction, which created significant fracturing, and a consequent increase of porosity and permeability, allowing penetration by the later copper-bearing fluids. Weitz (1976) calculated a 30% volume reduction in the skarn-altered portions of the Abrigo and Martin formations at the Gunnison Deposit.

Oxide copper also exists within the transition zone. It mainly occurs along fractures and in quartz vein selvages as chrysocolla. Secondary supergene copper sulfide minerals such as chalcocite are often associated with the oxide mineralization in the transition zone. The transition zone is typically 100 feet to 200 feet in thickness and is strongly fractured and broken, similar to the oxide zone.

Reserves

Lock

- subscription is required.

Mining Methods

Lock

- subscription is required.

Comminution

Crushers and Mills

Lock

- subscription is required.

Processing

Lock

- subscription is required.

Production

CommodityUnitsAvg. AnnualLOM
Copper M lbs 1672,712
All production numbers are expressed as cathode.

Operational metrics

Metrics
Daily ore mining rate  ....  Subscribe
Annual production capacity  ....  Subscribe
Annual processing capacity  ....  Subscribe
Stripping / waste ratio  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Total tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2024 study.

Production Costs

CommodityUnitsAverage
Cash costs Copper USD  ....  Subscribe
Total cash costs Copper USD  ....  Subscribe
All-in sustaining costs (AISC) Copper USD  ....  Subscribe
All-in costs Copper USD  ....  Subscribe
Assumed price Copper USD  ....  Subscribe
* According to 2024 study / presentation.

Operating Costs

CurrencyAverage
OP mining costs ($/t milled) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2024 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 1,340
G&A costs $M USD 150
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Mining Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Net Income (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 8% $M USD  ......  Subscribe
After-tax NPV @ 8%  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

Lock

- subscription is required.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Nov 1, 2024
....................... Subscription required ....................... Subscription required Subscription required Nov 1, 2024
....................... Subscription required ....................... Subscription required Subscription required Feb 6, 2025
....................... Subscription required ....................... Subscription required Subscription required Feb 6, 2025

EmployeesYear
...... Subscription required 2024

Aerial view:

Lock

- subscription is required.