Name of the Project
Copperwood project.

Location
Western Upper Peninsula of Michigan, in the US.

Project Owner/s
Vancouver-based Highland Copper’s US subsidiary Copperwood Resources.

Project Description
The project comprises the Copperwood and Satellite deposits.

The project envisages an estimated 11-year operation averaging payable copper production of 64.6-million pounds a year and payable silver production of 106 966 oz/y. 

Life-of-mine production is estimated at 300 000 t of copper and 1.1-million ounces of silver.

Room-and-pillar mining methods will be used given the relatively subhorizontal orebody that varies in thickness from 1.6 m to 3.7 m.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax internal rate of return of 17.6% with a net present value, at an 8% discount rate, of $222-million before taxes and $168-million after taxes. Payback is estimated at 3.5 years.

Capital Expenditure
Initial capital is estimated at $391-million.

Planned Start/End Date
Commissioning and plant ramp-up will take place during the first quarter of 2026.

Latest Developments
Highland Copper has outlined its 2026 work programme to advance the project towards a construction decision. The programme focuses on completing front-end engineering design, progressing project financing and advancing technical and commercial workstreams to support near-term development.

Building on progress made in 2025, the company has awarded front-end engineering design (FEED) contracts to DRA Americas for mine and process plant engineering, improved copper recoveries to 87.6% through the adoption of ultrafine flotation technology and secured a $250-million letter of intent from the US Export-Import Bank for project financing. It has also obtained approval for an amended air permit, received community support resolutions and completed concurrent reclamation works, including wetland construction and large-scale revegetation.

In 2026, Highland plans to complete a detailed integrated mine plan review incorporating revised cutoff grades, updated labour costs and potential changes to mining methods and equipment strategies. The company will also evaluate the application of a drift-and-fill mining method, subject to successful paste-fill testwork, to improve recoveries. Phase 2 FEED engineering is expected to advance overall project design to about 40%, with tailings engineering progressing to about 80% to support financing due diligence. Capital and operating cost estimates will be updated to reflect inflation and market conditions since the feasibility study.

Engineering activities will continue to be led by DRA Americas, supported by WSP, Tetra Tech and Foth Infrastructure and Environment on geotechnical, tailings and water balance work. Highland also plans to award contracts for regional infrastructure upgrades, telecommunications and power supply.

Site activities during the year will focus on environmental mitigation monitoring, the installation of additional groundwater monitoring wells and construction-readiness work, including assessments of workforce housing requirements. The company will also establish a technical committee to oversee project development and appoint advisers for offtake and debt financing.

Highland intends to initiate a formal debt financing process, assessing options from US federal agencies, private equity groups, offtake partners and commercial banks. It is also pursuing potential grant and equity funding linked to copper’s classification as a critical mineral in the US.

Key Contracts, Suppliers and Consultants
GMS (overall report and feasibility study coordination, property description and location, accessibility, history, geological setting and mineralisation, deposit types, exploration, drilling, sample preparation and security, data verification, mineral resource estimates, mineral reserves, mining methods, economic analysis, operating costs, infrastructure, power supply, capital cost estimate and project execution plan); SGS Canada Inc. (Lakefield) (mineral test work; Lycopodium (sheet, mass balance, recovery methods, mineral process plant design and input operating and capital cost estimates for the process plant); Golder Associates (rock mechanics and underground geotechnical assessment, water balance, water treatment design and tailings disposal facility design); Foth Infrastructure & Environment (environmental, permitting and social aspects); and DRA Americas (FEED).

Contact Details for Project Information
Highland Copper, tel +1 450 677 2455 or email info@highlandcopper.com.