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119.8fm shares

Excelsior absolute liquidating trust

opinion

Risk-adjusted NPV investments only succeed if the company in question makes it into production within a reasonable time window. Excelsior seems to have a realistic chance of reaching production in earlyafter taking into account the following:. While the gains have been modest, those involved in the junior resource space can testify that positive share price performers over the trailing 24 months are few and far in between. Next comes the chief risk that the Gunnison Project faces: Taseko Mines owns the other advanced-stage ISR copper development project in Arizona, which has struggled to receive permits in a timely manner.

ISR involves leaving the ore where it is in the ground, and recovering the minerals from it by dissolving them and pumping the pregnant solution to the surface "Excelsior absolute liquidating trust" the minerals can be recovered. Consequently there is little surface disturbance and no tailings or waste rock generated.

The orebody needs to be permeable to the solutions used and below the water table for this method to work. ISR is a far less significant portion of global copper production, but it has still known to be a commercially viable technique for at least three decades. Excelsior absolute liquidating trust itself has a rich history in ISR copper production.

Excelsior Absolute Return Fund of...

The San Manuel copper mine, owned by BHP Billitonwas a successful operation that integrated ISR methods with open pit and underground mining and produced approximately 3. Unfortunately those two permits have been elusive thus far for Taseko. This is the key risk for Excelsior currently — if the company is not able to receive permits in a "Excelsior absolute liquidating trust" manner, then shareholders will be left disappointed.

My belief is that Excelsior will surprise the market with a relatively smooth permitting process. The Florence Project is zoned within the Florence city limits and is located two miles from downtown Florence, Arizona pop. Gunnison is located about four miles north of an unincorporated town— Dragoon. ISR operations use a sulfuric acid solution to separate the economic metal from its host rock.

A key environmental worry is that this solution will escape the hydraulic barrier and contaminate local groundwater. Both the Gunnison and Florence deposits are located near groundwater aquifers, but with very different circumstances. In essence, no one is using this water. For this reason, the Dragoon Water Company is in full support of the Gunnison Project — a massive vote of confidence given the nature of ISR operations.

Excelsior absolute liquidating trust

The Florence Project, on the Excelsior absolute liquidating trust hand, is located in a very populous basin. For this reason, the Florence Water Company is in vehement opposition to the construction of the project.

Indeed, the Johnson Camp includes the existing copper processing infrastructure: This means that the proposed mine is NOT located near existing mining infrastructure, and the company will have to construct their mine from scratch. Intuitively, greenfield operations can be difficult to permit — locals who are not used to nearby mining operations are more likely to balk at proposed mines.

In conclusion, permitting remains the key risk for Excelsior shareholders. The three points provided above demonstrate that the Gunnison Project differs in many ways from Excelsior absolute liquidating trust beleaguered Florence Project, and I think permitting is far more likely than the market currently expects. According to an April 26th news release from the company:.

Administrative Review is the first stage of the permitting process.

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