Moon River Moly advances on PEA results for B.C. project
Moon River Moly Ltd. [MOO-TSXV, MRIVF-OTCQB] said an updated preliminary economic assessment (PEA) has been completed on the Davidson Molybdenum-Copper-Tungsten-Project located near Smithers, British Columbia.
The PEA envisages an underground mine, with underground processing facilities, using primarily battery powered mining equipment to minimize surface footprint, resulting in a verylow carbon emitting operation.
With the initial capital cost pegged at $672.3 million, (including a $106.3 million contingency), the PEA forsees a 20-year mine-life based on 10,000 tonnes of mill throughput per day or 3.65 million tonnes annually.
Annual production is estimated at 13.2 million pounds of molybdenum, 1.5 million pounds of copper and 334,300 pounds of tungsten.
The PEA is based on a measured and indicated resource of 80.7 million tonnes of grade 0.304% M052 (0.182% Mo) and 0.037% copper, and an inferred mineral resource of 83.1 million tonnes of grade 0.036% Wo2.
Moon River shares advanced on the news, rising 10.3% or $0.07 to 75 cents. The shares trade in a 52-week range of $1.14 and 25.5 cents.
“We are very encouraged from the results of the updated PEA,’’ said Moon River President and CEO Paul Parisotto. “The major difference between the initial PEA issued in February 2024, and this updated PEA are an increase in daily production from 7,000 tonnes per day to 10,000 tonnes per day and the inclusion of revenue from tungsten and copper production,” he said. “Additionally, the potential to increase the mine life to more than 100 years is very positive.’’
The Davidson Deposit is located inside the Hudson Bay Mountain and does not outcrop at surface. The deposit has an existing portal on the east side of the mountain and over 2,100 metres of exploration drifting. The access road and portal can be seen from the town of Smithers. The proposed underground mine access and surface facilities will be located on the west side of the mountain (out of site of the town of Smithers) with the existing eastern portal used only for initial development.
The company said the mine will use already proven rubber-tired, battery powered and automated mining equipment wherever possible to minimized manpower requirements, underground ventilation volumes, mine air heating costs and Co2 emissions. It is expected to provide jobs for 238 persons once in full operation.
Moon River Moly was recently in the news when it announces the results of an ore sorting study at the Endako mine complex in central British Columbia. The study indicated that mineralized material at the Endako mine may be amenable to ore particle sorting. It concluded that the incorporation of ore sorting could significantly improve the overall feed grade to the processing plant.
The Endako Mine is a primary (non-by-product) molybdenum mine located near Fraser Lake, 161 kilometres northeast of Prince George, B.C. The mine was placed on care and maintenance in July 2015.