Gunnison and Lunasonde enter LOI for remote sensing technology, Arizona
Gunnison Copper Corp. [TSX: GCU; OTCQB: GCUMF; FSE: 3XS0] has entered into a non-binding letter of intent with Lunasonde Inc., a United States-based defence technology start-up specializing in airborne-based subsurface imaging.
Under the LOI, Gunnison will provide access to its district-scale land package in southeastern Arizona, allowing Lunasonde to test and refine its advanced experimental remote sensing technology. The goal is to accelerate the identification of new copper, other critical minerals and rare earth element targets within the company’s Cochise mining district assets.
“Geology like that of the Cochise mining district has been known to host at least 12 of the critical minerals so important to the U.S. supply chain, yet most of this geology lies, unexplored, beneath thick alluvial cover. We are delighted to explore this partnership with Lunasonde whose technology has the potential to see through this cover and make new discoveries,” stated Stephen Twyerould, president and CEO.
“Our partnership presents an unparalleled opportunity to demonstrate how Lunasonde can accelerate critical mineral exploration,” said Jeremiah Pate, Lunasonde’s founder and chief technology officer.
The parties intend to apply for financing of this venture under the U.S. Department of Energy rocks (reliable ore characterization with keystone sensing) program. The transaction remains subject to the negotiation and execution of definitive agreements, successful submission and approval of the DOE funding application, and customary closing conditions.
Gunnison is a multi-asset pure play copper developer and producer that control the Cochise mining district, containing 12 known deposits within an eight-km economic radius, in the southern Arizona copper belt.
Its flagship asset, the Gunnison copper project, has a measured and indicated mineral resource containing over 831.6 million tons with a total copper grade of 0.31% (measured mineral resource of 191.3 million tons at 0.37% and indicated mineral resource of 640.2 million tons at 0.29%) and a preliminary economic assessment yielding robust economics including a net present value discounted at 8% of $1.3 billion, an internal rate of return of 20.9% and a payback period of 4.1 years. It is being developed as a conventional operation with open-pit mining, heap leach and solvent extraction and electrowinning refinery to produce finished copper cathode on site with a direct rail link.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
In addition, Gunnison’s Johnson Camp asset, which is in production, is fully financed by Nuton LLC, a Rio Tinto venture, with a production capacity of up to 25 million pounds of finished copper cathode annually.
Other significant deposits controlled by Gunnison in the district, with potential to be economic satellite feeder deposits for Gunnison project infrastructure, include Strong and Harris, South Star, and eight other deposits.
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