Excelsior Mining inititated mining activities at the Gunnison mine.
The initial copper recovery grades exceed expectations.
The Stage 1 operation should be able to generate free-cash-flow of approximately $30 million at the current copper price.
The after-tax NPV(7.5%) of Gunnison mine, after it reaches its full capacity of 125 million lb copper per year, is over $700 million, which compares favorably to Excelsior's current market capitalization of $210 million.
The copper price outlook is positive, Excelsior should be able to finance the mine expansions without diluting its shareholders.