## Gunnison Copper Project’s Updated PEA Unveils Robust Economics and Strategic Advantages
**Phoenix, Arizona – February 25, 2026** – Gunnison Copper Corp. (TSX: GCU) (OTCQB: GCUMF) (FSE: 3XS0) has released the results of an updated NI 43-101 Preliminary Economic Assessment (PEA) for its 100% owned Gunnison Copper Project in Arizona. This 2026 PEA supersedes the December 2024 study, presenting a significantly enhanced economic outlook driven by operational improvements and strategic market positioning. The project is designed as a conventional open-pit, heap leach, and SX/EW operation, targeting the production of 99.999% pure copper cathode to bolster domestic supply chains for critical sectors including energy, data centers, manufacturing, and defense.
The straightforward mine plan centers on oxide copper mineralization, projecting the placement of 541 million tons of material onto the leach pad at an average grade of 0.43% total copper. A key enhancement includes the integration of the high-grade Strong & Harris satellite deposit, contributing an additional 25 million tons at 0.85% total copper. To optimize recoveries, primary crushing will be applied to all material, with secondary crushing on select portions.
The updated PEA forecasts average annual copper cathode production of 174 million pounds (87,000 tons) for the first 15 years of operation, a volume substantial enough to potentially meet over 11% of current U.S. domestic refined copper production. Over its 21-year mine life, the project is projected to yield a total of 3.2 billion pounds of copper.
Crucially, the project demonstrates impressive cost efficiency, with projected cash costs of $1.69 per pound, sustaining cash costs of $2.00 per pound, and all-in sustaining cash costs (AISC) of $2.06 per pound. These figures place Gunnison among the lower half of the global copper production cost curve.
**Robust Financials Across Copper Price Scenarios**
The project exhibits strong economic resilience across a range of copper price environments. Under a base case assumption of $4.60 per pound, the PEA outlines compelling valuation metrics:
* **Net Present Value (NPV8% after-tax):** $1.952 billion
* **Internal Rate of Return (IRR after-tax):** 22.7%
* **Payback Period (after-tax):** 3.9 years
* **Average Annual Free Cash Flow (Years 1-15):** $366 million
At a higher copper price of $5.75 per pound (reflecting recent spot market trends), these metrics strengthen significantly, with NPV8% rising to $3.219 billion and IRR to 32.0%, shortening the payback period to just 2.6 years.
**Strategic Innovations Drive Enhanced Value**
A significant contributor to the improved economics is the innovative utilization of high-purity limestone overburden, previously considered waste. This material will now be processed into a cement co-product, addressing a regional cement supply deficit and adding an estimated $130 million to the project’s NPV8%. This integration not only diversifies revenue streams but also minimizes waste and maximizes resource utilization.
The economic impact of the Gunnison Project on Cochise County, Arizona, and the United States is projected to be substantial. The development is expected to create over 53,000 jobs, generate $544 million in state and local taxes, $1.37 billion in federal taxes, and contribute $14.6 billion in total economic output.
Dr. Stephen Twyerould, CEO of Gunnison Copper Corp., emphasized the project’s strategic importance: “The updated PEA underscores the scale and compelling economics of the Gunnison Copper Project, positioning it as a significant future supplier to the American copper market and a key contributor to the domestic supply shortfall. The $692 million increase in NPV8% compared to our 2024 PEA is largely driven by operational enhancements within our control, including the integration of the high-grade Strong & Harris deposit, material sorting, cement and limestone co-products, and other optimization initiatives. With its projected high-purity copper output, competitive operating costs, and significant leverage to copper prices, Gunnison offers shareholders meaningful exposure to a large-scale, long-life U.S. copper asset.”
**Key Enhancements Detailed:**
The 2026 PEA reveals a $692 million increase in NPV8% compared to the 2024 PEA, with 83% of this gain stemming from non-price deck driven improvements. Notable advancements include:
* **Strong & Harris Satellite Deposit Integration:** The addition of this nearby high-grade deposit (valued at $189 million in NPV8%) significantly boosts the overall grade and mine life, with minimal incremental operational costs due to existing infrastructure.
* **Material Sorting Technology:** Implementation of material sorting equipment to pre-screen and divert non-mineralized material is expected to increase leach pad head grades and reduce acid consumption, contributing $84 million to NPV8%.
* **Geotechnical & Pit Slope Optimization:** Refined geotechnical analysis allows for steeper pit walls, reducing waste handling and contributing $41 million to NPV8%.
* **Acid Plant Efficiency:** A reduction in acid plant capacity due to lower overall acid consumption, alongside design modifications, resulted in initial capital savings of $73 million, adding $19 million to NPV8%.
* **Autonomous Haul Trucks:** The integration of Autonomous Haulage Systems is projected to lower operating costs and improve efficiency, contributing $14 million to NPV8%.
* **Cement and Limestone Co-Products:** The strategic co-product development, including a cement plant and limestone sales, adds a substantial $151 million ($130M for cement, $21M for limestone) to NPV8%, capitalizing on regional market deficits.
* **Tax Depreciation Rule Changes:** Permanent extension of bonus depreciation benefits is projected to improve NPV8% by $30 million through accelerated deductions.
* **Mining Fleet Leasing:** A shift to capital leasing for the mining fleet is expected to positively impact NPV by $23 million.
**Operational and Financial Deep Dive:**
The PEA details extensive financial modeling, including comprehensive breakdowns of capital expenditures, operating expenditures for both copper and cement production, and profitability metrics. The capital cost estimate for initial construction stands at approximately $1.54 billion, with a further $682 million allocated for expansion over the project’s life, including the cement plant. Sustaining capital is estimated at $613 million.
Operating expenditure analysis highlights the project’s cost competitiveness. Copper operating costs are broken down by mining, processing, and general & administrative expenses, with key metrics like Cash Cost (C1) at $1.69/lb, Sustaining Cash Cost at $2.00/lb, and AISC at $2.06/lb. The cement co-product operation demonstrates strong profitability, with projected revenues of $157.21 per ton of cement produced, underpinned by efficient energy consumption and strategic additive sourcing.
**Mineral Resource and Technical Considerations:**
The mineral resource estimate for the Gunnison deposit includes Measured and Indicated resources totaling 846.1 million tons at 0.33% total copper, and Inferred resources of 94 million tons at 0.21% total copper. The Strong & Harris deposit adds a significant 76 million tons of Inferred resources with 0.49% total copper, 0.56% zinc, and 0.12 oz/ton silver. These resources are reported within optimized pit shells, signifying reasonable prospects for eventual economic extraction.
The company has identified and is actively mitigating potential risks associated with the project, including slope stability, blasting costs, and copper recovery variability. Opportunities for further value enhancement include optimizing pit slope angles, improving copper recoveries through advanced metallurgical testing, and exploring the potential for in-pit leaching.
**Path Forward:**
Gunnison Copper Corp. recommends proceeding with a Pre-Feasibility Study (PFS) for the open-pit operation, projected to take approximately 18 months. This next phase will involve further drilling for resource verification, detailed geotechnical and hydrological studies, and refinement of mine and process designs. The company is also budgeting $29.7 million for the PFS, allocated across resource upgrades, metallurgical testing, and engineering studies.
The 2026 PEA provides a robust foundation for the Gunnison Copper Project, highlighting its potential to become a significant domestic producer of high-purity copper cathode while simultaneously creating substantial economic and social benefits. The strategic integration of co-product revenue streams and the adoption of advanced mining technologies position the project favorably within the evolving global copper market.
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