Gunnison Copper project economics strengthen with higher copper prices, operational enhancements

Gunnison Copper Corp(TSX:GCUOTCQB:GCUMF) View Price & Profile Gunnison Copper project economics strengthen with higher copper prices, operational enhancements

Last updated: 10:20 26 Feb 2026 EST, First published: 08:55 26 Feb 2026 EST

Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) has reported improved economics in an updated Preliminary Economic Assessment (PEA) for its wholly owned Gunnison Copper Project in Cochise County, Arizona, replacing the prior study released in December 2024.

The company said the 2026 assessment reflects stronger project value driven by higher copper price assumptions and operational enhancements.

The updated plan outlines a conventional open-pit, heap-leach and SX/EW operation designed to produce 99.999% pure copper cathode for US energy, data center, manufacturing and defense supply chains.

The mine plan is primarily focused on oxide copper mineralization, with 541 million tons of material expected to be placed on the leach pad at an average grade of 0.43% total copper. This includes 25 million tons grading 0.85% copper from the nearby Strong & Harris satellite deposit.

Over a 21-year mine life, the project is projected to produce 3.2 billion pounds of copper, including average annual cathode output of 174 million pounds during the first 15 years.

Gunnison estimates operating costs would place the project in the lower half of the global copper cost curve, with cash costs of $1.69 per pound, sustaining cash costs of $2 per pound and all-in sustaining costs of $2.06 per pound.

Using a base-case copper price of $4.60 per pound, the study outlines an after-tax net present value discounted at 8% (NPV8%) of $1.95 billion and an internal rate of return (IRR) of 22.7%, with payback in 3.9 years. At a $5.75 per pound copper price assumption, the NPV8% rises to $3.22 billion and IRR to 32%.

The company highlighted the addition of a cement co-product strategy based on high-purity limestone previously considered waste. The initiative is estimated to contribute $130 million to project NPV and help address a regional cement supply deficit. Overall, Gunnison said the project could generate more than 53,000 jobs and contribute $544 million in state and local taxes, $1.37 billion in federal taxes and $14.6 billion in total economic output.

The 2026 PEA shows the project’s after-tax NPV8% increased by $692 million, or 55%, from the 2024 study’s $1.26 billion. Gunnison attributed $117 million of the improvement to updated price assumptions, including a higher long-term copper price of $4.60 per pound versus $4.10 previously.

The remaining $576 million was driven by non-price changes such as incorporating the Strong & Harris deposit, adding material sorting technology, updated geotechnical work, and operational improvements. The Strong & Harris satellite deposit alone contributed an estimated $189 million increase in NPV, while the addition of optical material sorting contributed $84 million by improving head grades and reducing acid consumption. Updated pit slope assumptions following 2025 geotechnical work added $41 million, and the inclusion of autonomous haulage systems added $14 million.

Gunnison also incorporated changes to acid plant sizing, tax depreciation rules and mining fleet leasing, each contributing incremental value. The company said the limestone overburden totals about 133 million tons and could support cement and limestone sales well beyond the copper mine life.

"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,” Gunnison Copper CEO Dr Stephen Twyerould said in a statement.

“Importantly, 83% of the $692 million increase in NPV8% versus our 2024 preliminary economic assessment study is driven by operational enhancements within our control, including the addition of the high-grade Strong & Harris satellite deposit, material sorting, cement and limestone co-products, and optimization initiatives.”

Based on the PEA results, the company said it is recommended that it consider advancing to a prefeasibility study for the open-pit project, a process expected to take approximately 18 months. A full feasibility study would be proposed upon successful completion of the PFS.

The recommendations include additional drilling for resource verification and geotechnical coverage to support detailed mine planning, as well as further metallurgical drilling and pilot heap leach testing to evaluate recovery kinetics and flow characteristics. The company also called for further mineralized material sorting studies to assess effectiveness and economics.

Engineering work required for the PFS includes completion of a detailed mine plan, heap leach design, SX-EW plant design and highway relocation design. Additional planning and cost analysis will be needed to establish the schedule and expenses associated with relocating Interstate 10 and adding a rail spur connection to the Union Pacific Railroad. Gunnison said it has proposed a list and budget for the additional work required to support the prefeasibility study.

The mineral resource estimate for the Gunnison deposit is based on 122 drill holes totaling 158,785 feet.

“With average annual production of 174 million pounds of 99.999% pure copper cathode in the first 15 years, lower-half-of-the-cost-curve operating metrics, and significant leverage to copper prices, we believe Gunnison offers shareholders meaningful exposure to a large-scale, long-life US copper asset as we advance toward Pre-Feasibility, permitting, and project financing,” Twyerould concluded.

Shares of Gunnison added 5.5% in Toronto on Thursday morning.