This is not exploration, this is near term production

At US$3 per pound long-term copper, Curis Resources, Florence Copper Project has a net present value of US$550 million, a fivefold increase of current market capitalization

A new Grandich client fresh out of the trading gate on Friday, November 26^th, from the well-respected mine development team, Hunter Dickinson (HDI), is Curis Resources Ltd. The Company currently trades under the name of PCI-1 Capital Corp, trading symbol on the TSX.V: ICC. Shortly, it will be named Curis Resources Ltd.  and have a new trading symbol.  Curis Resources owns the Florence Copper Project in Arizona, a very advanced stage, in-situ copper recovery (ISCR) project with a large, mineable 3 Billion pound copper oxide resource.

Copper is one of the HDI group’s prime competencies (Northern Dynasty Minerals, Continental Minerals, Taseko Mines) – from project development to mine construction and operations. The Florence Copper Project  has been in HDI’s cross-hairs for over three years. Opportunistic buying is also a hallmark of HDI’s history of success and the acquisition of the Florence Copper project is a prime example of the group’s ability to acquire assets at the right target value.

Michael McPhie, President & CEO,appears to have all the right skill set for the project. As a senior mining executive with project development background, international experience, and community relations and major project permitting experience, he apparently has all of the elements integral for success. Michael is backed by a strong on-site project development, community relations and operations team, including Mel Lawson. Mr. Lawson, Vice President, Project Development, is a 40 year veteran of the industry who was most recently  in senior management positions with QuadraFNX and before that Rio Tinto. John Kline, Senior Advisor, ISCR Operations, is a chemist and metallurgist with 25+ years of experience and the former Project Manager for the Florence Project when it was owned and operated by BHP Copper in the late 1990’s. Mining executives are usually very protective of their reputations so it is VERY encouraging that John Kline would come back to the project he managed for BHP – obviously he is anticipating good things!

A VALUABLE COPPER OPPORTUNITY –

The Florence Project is located in Central Arizona between Phoenix and Tucson and was previously owned by BHP Copper. The Florence Copper Project is not an exploration story, it is a near term production story. The Company plans for initial copper production mid-2012 using well known and widely used in-situ copper recovery (ISCR) methods. The Company expects to produce copper cathode right on site at a cost of U$0.68 per pound which should be amongst the lowest in the world.

Over $100 million has been invested into the property and in 1999, BHP was granted all of the required operating permits to advance the project into full commercial production.  These permits remain in place today and are in the process of   being amended and updated for commercial production. BHP also operated a successful on-site ISCR production test that confirmed the viability of ISCR production.

For this type of copper recovery, a very weak acid solution, comparable in strength to house-hold vinegar or coca-cola, is pumped into the ore body through an injection well. The solution dissolves the copper from the surface fractures of the saturated ore body. This copper bearing solution is then pumped via four surrounding recovery wells to a solvent extraction/electrowinning (SX/EW) plant to produce 99.999 percent pure copper cathode that sells at a premium to market prices. Recovery of minerals using this type of in-situ recovery technology has been in use in Arizona and other parts of the world for more than 50 years. ISCR has numerous advantages over traditional open pit and underground mining some of which include low capital and operating costs, limited land disturbances and the ability to bring the project quickly into operation.

In mid-October, the Company filed a Preliminary Economic Assessment with base case economic analysis which confirmed the  low costs and robust economics of the project.  The PEA indicated an after-tax Net Present Value (NPV) of US$360 million using a 7.5% discount rate and an Internal Rate of Return (IRR) of 30% based on a US$2.50 per pound long-term copper price.   This analysis assumes a design production rate of 76.5 million pounds of copper per year and payback of capital  early in production Year 4 of a projected 19-year mine life. At a US$3.00 per pound long-term copper price the NPV increases to $550 million and the project has an IRR of 39% which is a fivefold increase over current market capitalization. Direct operating costs are estimated at US$0.68 per pound copper. Initial capital costs are estimated at US$237.8 million.

The Company has recently closed an oversubscribed equity raise of C$38million at a share price of C$2.00 and expects to utilize these funds to secure the project permits and to finalize detailed engineering plans to initiate Phase 1 of the Mine Development Program by the end of 2011.

By peer group valuation comparables, value per pound of copper in the ground, cost of production, discount to NAV – THIS COMPANY appears VERY Attractive! Until further notice, any buying interest should be limited to around $2 a share

Contact: Susie Bell , Manager, Investor Relations 1-800-667-2114 or 604-684-6365

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Posted in A Grandich Company All Posts Canadian Stocks Copper Exploration Shares Mining Shares by Peter Grandich