Excelsior Mining, a mineral exploration and production company, has entered into an option agreement with Rio Tinto venture Nuton to further test copper heap leaching technologies at its Johnson Camp mine in Arizona. Under the agreement, Excelsior will continue to operate the mine while Nuton will fund the costs associated with a two-stage work program.
Testing the Potential of Nuton’s Technologies
The partnership aims to explore the potential of Nuton’s copper heap leaching technologies in extracting value from sulfide resources at the Johnson Camp mine. These innovative technologies, developed by Rio Tinto, offer an economical and environmentally friendly approach to processing primary sulfide minerals, including lower-grade deposits that were previously challenging to process.
Funding and Milestone Targets
As part of the agreement, Nuton has provided Excelsior with a $3 million prepayment to cover first-stage costs. Additionally, Nuton has invested $2 million for an exclusive option to form a joint venture with Excelsior over the Johnson Camp mine after the completion of stage two. In the event that Nuton proceeds to stage two, they will make a $5 million payment to Excelsior for the utilization of the existing infrastructure at the mine.
Timeline for Mining and Commercial Production
Excelsior expects mining operations to commence in the first year of the agreement. The full stage two work program is estimated to take up to five years to complete. Upon reaching all milestones outlined in the agreement, the Johnson Camp mine will transition into full-scale commercial production utilizing Nuton’s technologies. Excelsior’s revenue from operations will be used to repay stage two costs to Nuton, with any remaining funds credited to Excelsior’s account.
Conclusion
Excelsior Mining’s partnership with Nuton represents an exciting opportunity to explore the potential of advanced copper heap leaching technologies. By leveraging Nuton’s innovative approaches, Excelsior aims to unlock the value of sulfide resources at the Johnson Camp mine in a sustainable and economically viable manner.
