Moon River Moly Announces Robust Updated Positive Preliminary Economic Assessment of Davidson Molybdenum-Copper-Tungsten Project Demonstrating Improved Economics

Core Insights - Moon River Moly Ltd. has completed an updated Preliminary Economic Assessment (PEA) for the Davidson Molybdenum-Copper-Tungsten Project, indicating robust economic potential and an extended mine life [3][4]. Project Overview - The break-even cut-off grade for the mine is 0.11% MoS2, leading to a potentially mineable resource of over 436 million tonnes with a potential mine life of approximately 120 years [2]. - The updated PEA uses a cut-off grade of 0.22% MoS2, projecting a 20-year mine life with increased daily production from 7,000 tonnes to 10,000 tonnes [2][4]. Economic Metrics - The pre-tax net present value (NPV) is estimated at $1.747 billion with an internal rate of return (IRR) of 42%, while the after-tax NPV is $1.034 billion with an IRR of 32% at an 8% discount rate [9]. - Initial capital costs are projected at $672.3 million, including $106.3 million in contingencies [9][53]. Production and Costs - The mine is expected to produce an average of 6,020,000 kg of molybdenum, 679,600 kg of copper, and 151.7 tonnes of tungsten annually [9]. - The average cash cost for molybdenum is estimated at $22.11 per kg, with an all-in sustaining cost (AISC) of $22.80 per kg [9][55]. Mineral Resources - The measured and indicated mineral resource includes 80,756,000 tonnes grading 0.304% MoS2 and 0.037% Cu, with an inferred resource of 83,100,000 tonnes grading 0.036% WO3 [9][45]. - The resource estimate incorporates both copper and tungsten values, enhancing the economic viability of the project [30][32]. Infrastructure and Environmental Considerations - The project will utilize underground mining methods to minimize surface footprint, with an underground processing plant designed to reduce carbon emissions [4][6]. - The mine will employ battery-powered and automated mining equipment to further decrease CO2 emissions and operational costs [7][9]. Employment and Local Impact - The mine is expected to employ 238 persons once fully operational, contributing to the local economy of Smithers, which has a population of 5,400 [7].