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January 11, 2012 

Excelsior Mining Corp. (TSX-V: MIN) (Frankfurt: 3XS) (OTCQX: EXMGF) (“Excelsior”) is pleased to announce the results of an Economic Impact Study (“EIS”) of the Gunnison Copper Project, located in southern Arizona. The study, completed by researchers at the L.W. Seidman Research Institute, W.P. Carey School of Business, Arizona State University, Tempe, AZ, illustrates that the project would generate significant positive economic benefit at both the State and County level.

Highlights of the Gunnison Copper Project EIS include:

  •    Creation of an average of 704 jobs annually state-wide
    •    131 direct, on-site jobs; 573 in-direct or “secondary” jobs
  •    US$2.35 billion added to Arizona’s Gross State Product
  •    US$214 million in additional State revenue generated directly from the project

Note: the numbers and dollar values quoted above are all based on Excelsior building its own acid plant and span the entire 28 year life of the project.

“As this Economic Impact Study indicates, the robust financial outcomes of the Gunnison Project’s PEA show significant benefit to local and state communities, not just in job creation but overall wealth creation,” stated Stephen Twyerould, President and CEO of Excelsior. “We are very happy with the outcome and look forward to moving the project forward.”

Using the data from the Gunnison Project’s Preliminary Economic Assessment (“PEA”) (see news release dated December 1, 2011), this Economic Impact Study examined two scenarios, one in which Excelsior builds its own acid plant and one in which it acquires acid from a commercial supplier for the life of the project.

As highlighted in Tables 1 & 2 below, the EIS illustrates that either scenario could create significant positive benefits for the State, as well as Cochise County. Table 1 displays the significant employment benefits that the project should generate. During the project’s 28 year life span, it is forecast to create an average of 704 jobs per year in the “acid plant” scenario and 715 jobs per year in the “base case” (no acid plant) scenario, state-wide. With respect to the annual average of 704 jobs created in the “acid plant” scenario, 131 jobs are direct employment on-site and the remaining 573 are “secondary” jobs created in support of the project or due to the economic benefits the project brings to the State and the County. Thus, every direct job created by Excelsior creates an average of 4 indirect jobs in other sectors of Arizona’s economy.

As illustrated in Table 2, the State and County would both see a significant increase in revenue over the 28 year life span of the project. The model estimates that the Gunnison Copper Project would contribute US$2.4 billion to Arizona’s Gross State Product (GSP) in the “base case” scenario and US$2.35 billion in the “acid plant” scenario. GSP is defined as a state’s contribution to the nation’s Gross Domestic Product (GDP). Cochise County’s GSP is the contribution of Cochise County economic activity to Arizona GSP, and hence to U.S. GDP. With respect to state revenues, in the form of taxes and fee collection, the project would add an additional US$221 million to the State Treasury in the “base case” and US$214 million with an “acid plant”. Cochise County alone would see an average annual increase in its revenues of US$3.2 million in the “base case” scenario and US$3.1 million in the “acid plant” scenario.

Both scenarios used the following parameters over the 20 year production life of the project.

  •   annual production rate of approximately 85 million pounds of copper
  •   copper selling price of US$2.50 per pound
  •   state tax rate of 6.97%, and
  •   a federal tax rate of 35%.

Table 1. Employment Highlights of the Economic Impact Study for the Gunnison Project.

Annual Average Employment by Phase
Annual Average Employment Entire Project
Impact Category
Production Phase
Reclamation Closure Phase
2012 - 2014
2015 - 2034
2035 - 2039
2012 - 2039
Base Case
Acid Plant Case
Base Case
Acid Plant Case
Base Case
Acid Plant Case
Base Case
Acid Plant Case
Cochise County
Source: REMI Model of Arizona and Cochise Co. economies


Table 2. Revenue Highlights of the Economic Impact Study for the Gunnison Project.

Impact Category
Reclamation/ Closure
Cumulative Totals
Entire 28 years of Project
Gross State Product
Cumulative Gross State Product by Phase (US millions)
GSP (US millions)
2012 - 2014
2015 - 2034
2035 - 2039
2012 - 2039
Base Case
Acid Plant Case
Base Case
Acid Plant Case
Base Case
Acid Plant Case
Base Case
Acid Plant Case
Cochise County
State Revenue
Cumulative State Revenue by Phase (US millions)
State Revenue (US millions)
Cochise County
Source: REMI Model of Arizona and Cochise Co. economies


The economic forecasts used in this study are based on an Arizona-specific version of the Regional Economic Models Inc. (“REMI”) regional forecasting model to produce numeric estimates of the impact of a business upon the economy.  This is a dynamic forecasting and analysis tool developed by Regional Economic Models Inc., which is recognized by the business and academic communities as the leading economic modeling tool available. REMI is also an open model in that it explicitly accounts for trade and migration flows in and out of the state, and between counties.  The use of a county level model enables a more detailed disaggregation of results to occur, thereby estimating the economic impacts that "leak" into other counties in Arizona. The version of the REMI forecasting model used in this study is similar to the version currently in use by the Arizona Department of Commerce, the Arizona Joint Legislative Budget Committee, the Arizona Department of Housing and Arizona State University.

A complete explanation of the model and discussion of the empirical estimation of the parameters/equations can be found at www.remi.com

Further details regarding the PEA that the EIS is based on can be found in Excelsior’s news release dated December 1, 2011 and filed on SEDAR at www.sedar.com. 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. There is no certainty that the conclusions reached in the PEA will be realized.


Project Summary

The Gunnison Copper Project is located approximately 65 miles southeast of Tucson, AZ. The project, which includes both the North Star and South Star deposits, currently has a total NI 43-101 indicated resource of 3.21 billion pounds of oxide copper (511 M tons at 0.31% at the North Star deposit) and an inferred resource of 1.26 billion pounds of oxide copper (221 M tons at 0.29%; 159 M tons at North Star and 62 M tons at South Star). These oxide resources have the potential to be mined using in-situ recovery methods. The Gunnison property also has the added benefit of being situated in a very remote location, near an existing mining operation. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

About L.W. Seidman Research Institute

The L. W. Seidman Research Institute, which is independent of Excelsior, serves as a link between the local, national, and international business communities and the W.P. Carey School of Business at Arizona State University.  Utilizing a staff of experienced economists, and tools that support sophisticated statistical modeling and computer-based planning, the Institute collects, analyzes, and disseminates information about local economies, benchmarks industry practices, and identifies emerging business research issues that affect productivity and competitiveness. The Gunnison Economic Impact Study was co-authored by Mr. Dennis Hoffman and Ms. Eva Madly, both of whom are independent of Excelsior.

About Excelsior

Excelsior is an exploration and development company with a copper project located within the copper porphyry belt of Arizona. The Gunnison Copper Project is located close to the required infrastructure and its oxide resource has the potential to be mined using in-situ recovery methods. The Excelsior team consists of experienced professionals with proven track records of advancing projects towards production. Excelsior’s exploration work on the Gunnison Property is supervised by Dr. Stephen Twyerould, Fellow of AUSIMM, President and CEO of Excelsior, and a Qualified Person as defined by NI 43-101. Dr. Twyerould has reviewed and approved the technical information disclosed in this news release.

Further details about Excelsior can be found at: http://www.excelsiormining.com. Further information about the Gunnison Copper Project can be found in the technical report filed on SEDAR at www.sedar.com entitled: Gunnison Copper Project, Cochise County, Arizona, USA, Mineral Resource of the North Star Deposit dated August 31, 2011, as revised October 25, 2011.



"Stephen Twyerould"

President & CEO

For further information regarding this press release, please contact:

Excelsior Mining Corp.

Concord Place, Suite 300, 2999 North 44th Street, Phoenix, AZ, 85018.

JJ Jennex, Vice President, Corporate Affairs

T: 604-681-8030

E: This email address is being protected from spambots. You need JavaScript enabled to view it.


Cautionary Note Regarding Forward-Looking Information

Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the timing and amount of future production, future economic benefits from the Gunnison Project including jobs, GDP, personal income and revenue forecasts, results of the PEA, the future exploration on and the development of the Gunnison Project and the ability to mine Gunnison using in-situ recovery mining techniques are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; issues in obtaining required permits; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.

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, and no securities regulatory authority has either approved or disapproved of the contents of this release.










What is
In-Situ Mining