Highland Copper Provides Update on Key Projects
Highland Copper Provides Update on Key Projects
September 14, 2022 – Longueuil, Quebec. Highland Copper Company Inc. (TSXV: HI, OTCQB:
HDRSF) (“Highland Copper” or “Hi ghland” or the “Company”) is pl eased to provide an update on the
status of its key projects.
Following the sale of its exploration properties, an equity rai se of C$26.0M in September last year, the
appointment of six new director s with skills to support the Com pany’s experienced management team in
the path towards construction and production, Highland Copper b elieves the time is right to develop the
Copperwood and White Pine Projects in Michigan.
The fundamentals for copper remain strong in light of the high demand for electric vehicles and renewable
energy, while the supply side struggles to keep up. The supply imbalance is particularly notable in the US
where the State of Michigan is prioritizing funding for industries that support electrification.
Denis Miville-Deschênes, the President and CEO stated: “We like the location of our projects in the historic
mining district of the Upper Peninsula, Michigan. We love the strong support we are getting from the
surrounding communities and the State, and we will be relentless in our commitment to develop these long-
lived assets, to create value and bring jobs for the benefit of all supporting communities, shareholders, and
stakeholders.”
Corporate Update
The Company is increasing its efforts to develop its two 100%-o wned projects as the best way to create
value in the short term.
Copperwood and White Pine North bot h have significant contained copper resources totaling 4.8 billion
pounds in the Measured and Indi cated category (182.7 million to nnes at 1.20% copper grade) 1, and 3.5
billion pounds in the Inferred category (148.7 million tonnes at 1.08% copper grade). The two deposits are
in sedimentary rock and through a flotation process would produce a clean concentrate that is attractive to
various smelters and traders. Previous metallurgical tests have also indicated that the concentrate can be
leached to produce copper cathodes at site which would be favou rable from an Environmental,
Sustainability and Governance (“ESG”) perspective.
The Company’s most advanced asset, the Copperwood project, has a Feasibility Study dated effective June
14, 2018 (posted to SEDAR on July 31, 2018). Copperwood is expe cted to produce approximately 30,000
tonnes of copper per year for 11 years. The production is generated from the mining and processing of 2.4
million tonnes per year at an ave rage diluted grade of 1.43% co pper grade (Source: Feasibility Study
Copperwood Project Michigan, USA, dated effective June 14, 2018).
Per the Preliminary Economic Assessment (“PEA”) dated effective September 22, 2019 (posted to SEDAR
on November 7, 2019), the White Pine project is expected to pro duce approximately 45,000 tonnes of
copper per year for more than 20 years. The production is generated from mining and processing 5.4 million
tonnes per year at an average diluted grade of 0.98% copper gra de (Source: Preliminary Economic
Assessment White Pine North Michigan, U.S.A. dated effective September 22, 2019)2.
Copperwood Feasibility Study Update
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In light of changes in the market and the industry in the last few years, the Company decided to update the
previous Feasibility Study to reflect increases on many input c osts for the capital expenditures needed for
construction as well as for the operating expenditures to produce and transport concentrate.
At the same time, opportunities will be considered to mitigate cost increases to provide the Company with
a plan to deliver on budget and on schedule. A key opportunity being assessed will be the inclusion of
continuous miners to develop and produce in the underground min e. Highland will also assess the
appropriate long-term copper price to use in the updated Feasib ility Study, which is expected to be higher
than the $3.15 per pound used in the 2018 Feasibility Study. Th e applicability of ore sorting to eliminate
waste from dilution and increase the grade at the plant is also under study.
All permits needed to start construction have been received and the project is currently awaiting an
operating permit at the federal level for the construction and operation of a pumping station on Lake
Superior. Highland is actively engaged with the US Army Corps of Engineers to assist with their approval
of this final required permit.
The Company expects to issue the updated Feasibility Study before the end of the year.
White Pine North Update
The White Pine mine operated for approximately fifty years and produced more than 5 billion pounds of
copper. This past activity provides good information on geology , mining and processing of the ore, which
is of significant help in the design process and in the reduction of risk usually attributed to a new project.
Highland Copper believes that the opportunity at White Pine Nor th is significant, as demonstrated by the
2019 PEA study. The continuity of the deposit considered in the PEA mine plan represents 133.4 million
tonnes at 1.07% copper grade in the Measured and Indicated cate gory and 97.2 million tonnes at 1.03%
copper grade in the Inferred category.
The White Pine North project is robust enough to warrant pursuing a Feasibility Study. A drilling program
will be conducted this coming wint er with the goal of upgrading the Inferred resources into the Measured
and Indicated category to be used in a Feasibility Study.
As a previous operating mine, so me permits are already in place such as the National Pollutant Discharge
Elimination System (NPDES) permit, the dam safety permit and the water intake permit. The Company has
begun the baseline environmental work required for the remaining permits.
The objective remains to have the White Pine North project fully permitted and ready for construction right
after Copperwood has been developed.
Other Opportunities and Studies
Considering the geographic proximity of the projects located ab out 60km apart and the many similarities
in deposit type, mining method and processing, the Company has a lot of optionality around development
and ways to maximize potential synergies for its two key assets . The option which could possibly be the
most economic is the development of one central processing faci lity. Ore from both sites could then be
transported from the mines, mixed and processed through the plant for production of a concentrate.
The Company has initiated a study to better define the potential of this combined scenario which should be
completed in the first half of 2023. As part of this study, the viability of refurbishing an existing rail line
for the purpose of transporting ore and concentrate will be stu died. The potential appeal of this scenario is
a minimized environmental footprint and considerable operating synergies.
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Additionally, since July the Company has been analyzing the pos sibility of economically leaching the
concentrate and producing copper cathodes as a final product. This broad vision would allow for sale of
copper to manufacturers in Michigan. This would align the Compa ny’s interest with the state of Michigan
and potential corporate partners that are seeking to secure domestic supply of critical metals.
Updates on the status of this study will be provided as milestones are reached.
1. Measured category is 27.3 million tonnes at 1.68% copper grade. Indicated category is 155.4 million tonnes at 1.11 copper grade.
2. The White Pine North PEA includes an economic analysis of mineral resources. Readers are cautioned that mineral resources that are not mineral
reserves do not have demonstrated economic viability.
Qualified Person
The technical information in thi s press release has been review ed and approved by Denis Miville-
Deschenes, P Eng., the Company's President and CEO. Mr. Miville-Deschenes is a qualified person under
Canadian National Instrument 43-101.
About Highland
Highland Copper Company Inc. is a Canadian company focused on e xploring and developing copper
projects in the Upper Peninsula of Michigan, U.S.A. Information about the Company is available on
SEDAR at www.sedar.com and on the Company’s website at www.highlandcopper.com.
Cautionary Statement
This news release contains “forward-looking statements” and “forward-looking information” (collectively
“forward-looking statements”) within the meaning of applicable Canadian securities legislation. These
include, without limitation, statements with respect to: (a) th e Company’s expectations and beliefs for the
development of its mineral projects, including the timing and u ltimate economic results thereof; (b) the
timing and expectations for the completion of the feasibility s tudy update on the Copperwood project
including the development schedule by the end of 2022 (c) the Company’s plans for the White Pine project,
including development plans for 2023, advancement of a feasibility study on the project, and the timing of
completion of studies on of alternative development scenarios. Such forward looking statements are based
on a number of assumptions, which may prove to be incorrect. Important assumptions with respect to each
the development project are contained in Feasibility Study (for Copperwood) and the PEA (for White Pine).
Important factors that could materially impact the Company's expectations include: uncertainties involving
the availability of financing in the debt and capital markets; uncertainties involved in the estimation of
reserves and resources, including uncertainties in the interpre tation of drilling results and other geological
and geotechnical data, actual e xploration results, interpretati on of metallurgical characteristics of the
mineralization, changes in project parameters as plans continue to be refined; availability of skilled labour;
effects of regulation by governmental agencies; unanticipated v ariation in geological structures, metal
grades or recovery rates; unexpected cost increases, which could include significant increases in estimated
capital and operating costs; fluctuations in metal prices and c urrency exchange rates; and general market
and industry conditions. All forw ard-looking statements in this press release are based on information
available to the Company as of the date hereof, and the Company undertakes no obligation to update
forward-looking statements except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts res ponsibility for the adequacy or accuracy of this
release.
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For further information, please contact:
Denis Miville-Deschênes, President & CEO
Tel: +1.450.677.2455
Email: [email protected]