Moon River Moly Ltd. Announces Preliminary Economic Assessment of Potential Restart of 25% Owned Endako Molybdenum Mine

Core Viewpoint - Moon River Moly Ltd. has announced a positive Preliminary Economic Assessment (PEA) for the Endako Molybdenum Mine, indicating strong potential for the restart of operations, which could position it as Canada's largest molybdenum producer again [4][5]. Project Overview - The Endako Mine is currently on care and maintenance and is located in British Columbia, approximately 190 kilometers west of Prince George [4][10]. - The PEA suggests a 10-year mine life with a throughput of 75,000 tonnes per day, producing an average of 9.3 million kg (20.5 million pounds) of molybdenum annually [6][39]. Financial Metrics - The pre-tax net present value (NPV) is estimated at CAD 1.1 billion, with an internal rate of return (IRR) of 46% [6]. - After-tax NPV is CAD 790 million, with an IRR of 40% at an 8% discount rate, assuming a long-term molybdenum price of USD 49.73 per kg (USD 22.50 per pound) [6][40]. - The estimated total average operating cost is approximately CAD 11.84 per tonne of potentially mineable resources [36]. Capital Expenditures - Pre-production capital expenditures are estimated at CAD 493.7 million, including contingencies of CAD 83.7 million [32][34]. - The breakdown includes costs for processing plants, tailings management facilities, and water management [33]. Mining and Processing Plan - The mining plan involves open-pit techniques, with a focus on higher-grade material for the first 10 years [14][15]. - The processing plant will have a capacity of 75,000 tonnes per day, utilizing existing facilities with refurbishments and new equipment for concentrate leaching and drying [16][19]. Mineral Resources - The measured and indicated mineral resource is 335.7 million tonnes grading 0.072% MoS2 (0.043% Mo) [6][29]. - The resource estimate excludes inferred resources and is based on a cutoff grade of 0.040% MoS2, which reflects the long-term potentially economic mineralization [28][30]. Project Schedule - The restart of mining operations is projected to take approximately 1.5 to 2 years from the approval of the restart plan to the start of production [25]. Environmental and Permitting - The Endako Mine is currently compliant with all necessary permits for its care and maintenance status, but a restart will require reactivation of water and operating permits [24].