Highland Copper Selects G Mining for Preliminary Economic Assessment on Michigan Projects
Highland Copper Selects G Mining for Preliminary Economic Assessment on Michigan Projects
October 12, 2022 – Longueuil, Quebec. Highland Copper Company Inc. (TSXV: HI, OTCQB: HDRSF)
(“Highland Copper” or “Highland” or the “Company”) is pleased to announce that it has selected G Mining
Services Inc. (“G Mining”) to prepare a Preliminary Econ omic Assessment (“PEA”) on the combined
development scenario of its Copperwood and White Pine North projects in Michigan, USA.
Denis Miville-Deschênes, President and CEO, stated: “We are very excited about the combined scenario
PEA. It has the potential to create a larger, long-life project with considerable development and operating
synergies and a minimized environmental footprint. We look forward to working with the state of Michigan
and our key stakeholders as we define the project and its benefits.”
White Pine North and Copperwood both have significant Measured and Indicated copper resources at 3.2
billion pounds (133.4 million tonnes at 1.07% copper grade) and 1.7 billion pounds (49.3 million tonnes at
1.54% copper grade), respectively. The Inferred category is also substantial at 2.2 billion pounds for White
Pine North (97.2 million tonnes at 1.03% copper grade) and 1.3 billion pounds at Copperwood (51.5 million
tonnes at 1.16% copper grade). The Copperwood project has a Feas ibility Study dated effective June 14,
2018 that was posted to SEDAR on July 31, 2018 while the White Pine North project has a PEA dated
effective September 22, 2019 that was posted to SEDAR on November 7, 20191. Both studies contemplated
stand-alone projects and did not consider any potential synergies from combining the development and
operations activities.
The projects are located approximately 60km apart and share many similarities in deposit type, mining
method and processing. This provides Highland with significant optionality in terms of how it develops the
assets. The PEA that G Mining is undertaking on the combined scenario will consider the potential to
transport ore by rail from Copperwood to a central processing facility to be built at White Pine North. This
scenario should bring in a number of synergies as some buildings and infrastructures would be shared ,
therefore minimizing the environmental footprint and impacts if the projects are to be developed jointly.
The PEA will contemplate eliminating considerable infrastructure at Copperwood , particularly the
processing facility and tailings storage facilities as defined in the stand -alone Copperwood Feasibility
Study. In its place, the PEA will consider building a single processing facility located at White Pine. The
White Pine site is a brownfield site as the old mine operated for approximately 50 year s, until the mid-
1990s, and has significant existing infrastructure including tailing storage facilities which the project has
access to. Additionally, the White Pine North project is in close proximity to a gas distribution line , an
available power source from the grid , water supply, as well as road and rail access, although the railroad
would have to be refurbished.
The combined scenario will also assess all identified potential synergies resulting from the joint operation
of the two mines . This assessment will include the impact of a central processing facility, centralized
inventories, shared technical services and the broad impact of shared general and administrative costs. This
is expected to generate considerable savings through the operating period.
While the PEA w ill present a combined scenario , management expects that there will be staging of ore
delivery as the Copperwood project is permitted for construction and has a shorter timeline to mine
development and ore delivery . White Pine Nor th ore delivery would then be sequenced following its
permitting and development period.
2
In support of the PEA, metallurgical tests and other key technical work are being conducted to define the
plant design needed to process the mixed ore through a single processing line. As well, the applicability of
ore sorting technology is being studied. The Company will provide updates as results from metallurgical
and other technical tests becomes available.
1. 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 this press release has been reviewed 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 exploring 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) the Company’s expectations and beliefs for the
development of its mineral projects, including the timing and ultimate economic results thereof; (b) the
timing of the completion of and anticipated synergies to be recongnized in the PEA on the combined
development scenario of the Copperwood and White Pine Project (c) the Company’s plans for the
development of the projects both individually and potentially on a combined basis ; and (d) the resources
identified on the Company’s mineral projects. Such forward looking statements are based on a number of
assumptions, which may prove to be incorrect. Important assumptions with respect to each 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 interpretation of drilling results and other geological and
geotechnical data, actual exploration results, interpretation 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 variation in geological structures, metal
grades or recovery rates; unexpected cost increases, which could include significant increases in estimated
capital and operating costs and the effects of inflation; fluctuations in metal prices and currency exchange
rates; and general market and industry conditions. All forward-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 responsibility for the adequacy or accuracy of this
release.
For further information, please contact:
Denis Miville-Deschênes, President & CEO
Tel: +1.450.677.2455
Email: [email protected]