Updated Feasibility Study Results For Copperwood Project In Michigan

LONGUEUIL, QB - Highland Copper Company Inc. reported on an updated feasibility study for Copperwood project located in the Western Upper Peninsula of Michigan. Copperwood provides significant leverage to copper price. The updated Copperwood Feasibility Study, done in the high-cost environment of 2022, still has a robust 17.6% IRR at a copper price of $4.02 per pound. The average yearly production of approximately 30,000 tonnes of copper provides good exposure to copper price increases. The Project is now fully permitted. The Copperwood Project holds all key Michigan State permits required to proceed with site construction and operation. The detailed design for stream and wetland mitigation work as per permit conditions has been completed. Importantly, an alternative process water solution incorporated in the Feasibility Study Update eliminates the need for the Section 10 Water Intake permit.

Measured & Indicated tonnes increased by 10% and Inferred tonnes increased by 54%. With updated metal price assumptions and a modified reporting cut-off, a significant increase in resource tonnes has been reflected in the 2023 mineral resource estimate relative to the 2018 mineral resource. Considerable opportunities remain to improve the project’s economic return. The applicability of ore sorting to remove waste and low-grade material has been tested with positive results. The potential economic impact will be assessed and incorporated in the detailed engineering phase or in subsequent studies. Additional metallurgical test work will also be performed to determine the potential to reduce reagent consumption. Early works and site preparation are planned at Copperwood for 2023. Some site preparation work will need to be completed to meet permit obligations. Advancing towards site readiness and starting the initial phase of detailed engineering will help support a construction decision. A portion of these expenditures will net against the initial capital estimate.

“We are happy to introduce Copperwood as one of very few fully permitted copper projects in the US. The economic return at spot copper price is robust and the project is highly sensitive to copper price changes. It will be exciting to start site works during 2023 as we advance discussions on funding of our Copperwood project.” said Denis Miville-Deschênes, President and CEO.