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Projects
Davidson Project
The Davidson Molybdenum Deposit is located in west central British Columbia approximately 9 kilometres (“km”) northwest of the town of Smithers inside the Hudson Bay Mountain.
The deposit does not outcrop on surface and has an existing portal on the east side of the mountain and over 2,100 metres (‘m”) 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 sight of the town of Smithers) with the existing eastern portal used only for initial development.
2024 Preliminary Economic Assessment
On February 22. 2024 Moon River announced a Robust Positive Preliminary Economic Assessment (“PEA”) on the Davidson Deposit. Highlights of the PEA (in Canadian dollars) are as follows:
Highlights:
- Pre-tax net present value (“NPV”) of $1.04 billion and Internal Rate of Return (“IRR”) of 32% and an after-tax NPV of $602 million and an IRR of 24% at an 8% discount rate and assuming a long-term molybdenum(“Mo”) price of $US47.39 per (‘kg”) or $US21.50 per pound (“lb”);
- 20-year mine life based on 7,000 tonnes of mill throughput per day or 2.5 million tonnes per year;
- Initial capital cost of $575 million including $109 million of contingency;
- Annual average production of 4,543,000 kg or 10,015,500 pounds of Mo;
- Average cash cost of $21.68 per kg or $9.84 per lb and All-In Sustaining Cost (“AISC”) of $22.79 per kg or $10.34 per lb of Mo;
- Underground mine, with underground processing facilities, using all electric mining equipment minimizes the surface footprint, resulting in a very low carbon emitting operation;
- A measured and indicated mineral resource of 43,896,000 tonnes grading 0.35% MoS2 (0.21% Mo);
- A 3.3-year payback;
- Life-of-mine direct income and mining taxes in excess of $1 billion;
- Does not include potential byproduct contributions from tungsten, rare earth elements, gallium and copper; and
- Additional drilling to support metallurgical test work to determine the economic recoverability of potential byproduct metals is currently underway.
Mineral Resources
Mineral Resources used for the PEA were based on the latest resource estimates calculated and reported in a study completed by AMPL and presented in an NI 43-101 Technical Report entitled “National Instrument NI 43-101 Technical Report for the Davidson Project Resources Update” dated September 13, 2023 and filed on Sedar+.
| Category | Cut-off | Tonnes | Grade | Grade | Contained | Contained |
|---|---|---|---|---|---|---|
Measured | >0.25 | 24,269,000 | 0.37 | 0.22 | 53,800,000 | 118,609,000 |
Indicated | >0.25 | 19,627,000 | 0.32 | 0.19 | 37,600,000 | 82,894,000 |
M&I | >0.25 | 43,896,000 | 0.35 | 0.21 | 92,100,000 | 201,503,000 |
Inferred | >0.25 | 11,907,000 | 0.30 | 0.18 | 21,400,000 | 47,179,000 |
- Mineral Resources were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.”
- The PEA mine plan and economic model include numerous assumptions and the use of Inferred Resources. Inferred Resources are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and to be used in an economic analysis except as allowed for by NI 43-101 in PEA studies. There is no guarantee that Inferred Resources can be converted to Indicated or Measured Resources, and as such, there is no guarantee the economics described herein will be achieved.
- The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
- The approximate 2-year trailing average (to January 31, 2024) metal price for molybdenum US$47.40 per (‘kg”) or US$21.50 per pound (“lb”) was used in estimating the Mineral Resources and a CAD:US Dollar exchange rate of $0.74 was used.
- A description of the key assumptions, parameters, and methods used to estimate the resources, and any known risks, as well as the data verification processes, are contained in the technical report entitled “National Instrument NI 43-101 Technical Report for the Davidson Project Resources Update” dated September 13, 2023 and filed on SEDAR+.
