Moon River Moly (TSXV: MOO; US-OTCQB: MRIVF) announced the filing of an updated preliminary economic assessment (PEA) for its Davidson molybdenum-copper-tungsten project, located near Smithers, British Columbia. The revised assessment outlines significantly improved economics and an extended mine life compared to previous estimates.
Paul Parisotto, president and CEO, expressed strong encouragement from the updated PEA results. He noted the primary changes from the initial February 2024 PEA, including an increase in daily production from 7,000 to 10,000 tonnes per day and the inclusion of revenue from both tungsten and copper production. Parisotto also highlighted the potential for the mine life to exceed 100 years as a "very positive" development.
Ian McDonald, Chairman, reflected on his long involvement with the Project, stating, "My involvement with this project first began over twenty years ago, and I truly believe that the time for its development has arrived," Ian McDonald, chairman, reflected.
"These robust economics together with its location in a tier one jurisdiction in a mining-friendly province, to produce products that are included on Canada's 2021 critical mineral list, near developed infrastructure, including roads, rail, power, and the nearby town of Smithers are definite benefits. Additionally, to be able to take advantage of the province's hydro-electric power grid, allows for the use of an efficient electric mining fleet, and will make the Davidson property one of the lowest carbon-emitting sources of molybdenum in the world. As an underground mine, with an underground processing plant and with most of the tailings used as backfill, the surface footprint of this mining operation will be minimized."
The mineral resource estimate for the Davidson Property has an effective date of December 23, 2025. This estimate incorporates both copper and tungsten values and is included in the updated PEA. The PEA mine plan and economic model include numerous assumptions and the use of Inferred Resources, which are considered too speculative geologically for categorization as mineral reserves. The report cautions that there is no guarantee these economics will be achieved.
The estimated total pre-production capital expenditure for the project is approximately $672.3 million. The estimated total average operating cost for the mine is approximately $40.99 per tonne of potentially economic mineralization, or $22.11 per kg of Mo.
The PEA outlines a 20-year project life. The overall accuracy of this study is approximately ±40%. The Project's expected pre-tax project returns include an undiscounted net revenue of $8.308 billion and an undiscounted total cash flow of $4.663 billion, leading to an NPV at 8% of $1.747 billion and an IRR of 32%.
Moon River Moly will now commence baseline environmental studies and further engineering studies to advance and de-risk the project once applicable First Nations consultations are undertaken.
More information is posted at www.MoonRiverMoly.com/projects/davidson-project/
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