Selkirk Copper Mines (TSX-V:SCMI) has unveiled a preliminary economic assessment for the restart of its Minto Copper-Gold-Silver Project located in Yukon, Canada. The study outlines a 13-year operational plan that demonstrates the viability of returning the dormant mine to production. According to the PEA, the project shows an after-tax net present value of C$494 million using a 7% discount rate, with an internal rate of return of 47.8% and a payback period of 1.9 years from first production.
These economic projections are based on assumed commodity prices of US$5 per pound for copper, US$3,600 per ounce for gold, and US$50 per ounce for silver. The mine plan employs a combined underground and open-pit mining approach, with ore feed directed to the existing mill at a processing rate of 4,100 tonnes per day. Initial capital expenditure is estimated at C$186 million, while sustaining capital, including mine closure costs, is projected at approximately C$409 million.
Selkirk emphasizes that much of Minto's existing infrastructure remains suitable for operations with only minor refurbishment required. Processing equipment, accommodation facilities, power supply, and water treatment systems all require minimal upgrades. The mine last produced concentrate in May 2023.
The company is targeting first concentrate production in the second half of 2028, with full operational ramp-up anticipated in the first half of 2029. These timelines are contingent upon completion of additional technical work and obtaining necessary permits. A Feasibility Study is scheduled to commence in the December quarter, concurrent with applications to amend existing permits.
An updated mineral resource estimate is expected in the March quarter of 2027. Selkirk's ongoing second-phase drilling program, comprising 50,000 meters, is 98% complete, with results to be excluded from the current PEA but potentially informing future mine planning decisions. The company notes that the assessment is preliminary in nature and incorporates inferred resources.
There is no certainty that the projections will be realized, and resources that are not classified as reserves have not yet demonstrated economic viability. Selkirk Copper Mines is a Canadian mine developer with a controlling interest held indirectly by the Selkirk First Nation. Source: Mining.com.au
Source: mining.com.au