Moon River Moly Ltd. Announces Preliminary Economic Assessment of Potential Restart of 25% Owned Endako Molybdenum Mine
Moon River Moly Ltd. Announces Preliminary
Economic Assessment of Potential Restart of
25% Owned Endako Molybdenum Mine
HIGHLIGHTS:
Pre-tax net present value (
"NPV"
) of $1.1 billion, internal rate of return (
"IRR"
) of 46%, an after-tax
NPV of $790 million and an IRR of 40% at an 8% discount rate and assuming a long-term
molybdenum ("Mo") price of US$49.73 per kg (US$22.50 per pound ("lb"));
10-year mine life based on 75,000 tonnes of mill throughput per day or 27.3 million tonnes per-
year;
Initial capital cost of $550.9 million including $83.7 million of contingency;
Annual average production of 9.3 million kg or 20.5 million pounds of Mo;
Average cash cost of US$25.60 per kg or US$11.61 per lb and All-In Sustaining Cost (
"AISC"
) of
US$29.85 per kg or US$13.54 per lb of Mo;
Open pit mine with flotation processing facilities on site;
A measured and indicated mineral resource of 335.7 million tonnes grading 0.072% MoS2 (0.0 43
% Mo) (see Table 1.1;
A 2.2-year payback;
Life-of-mine direct income and mining taxes in excess of $609 million;
Potential Project enhancements from the use of ore bucket sorting technology and ore particle
sorting ("OPS") technology.
All dollar amounts are stated in Canadian Dollars unless otherwise noted.
Toronto, Ontario--(Newsfile Corp. - November 21, 2025) - Moon River Moly Ltd.
(TSXV: MOO)
(
"Moon
River"
or the
"Company"
) is pleased to announce the results of a Preliminary Economic Assessment
(
"PEA"
) for the Endako mine complex in British Columbia (the
"Endako Mine"
),
currently on care and
maintenance, comprised of an open-pit molybdenum mine, concentrator, and roaster, located
approximately 190 kilometres west of Prince George, British Columbia. The PEA examines the potential
restart of operations at the Endako Mine
(the
"Project"
).
Paul Parisotto, President and Chief Executive Officer, says of the PEA results: "We are very pleased
with the positive results of the PEA as it presents a very convincing case for the rapid advancement of
the necessary work to restart mining operations at the Endako Mine."
Ian McDonald, Chairman, commented: "My involvement with this Project first began twenty years ago,
and I firmly believe that the time for the restart of production at the Endako Mine has arrived.
The
compelling, robust economics, together with a Tier One jurisdiction in a mining-friendly province, indicate
that the Endako Mine can recapture its position as Canada's largest molybdenum producer."
The PEA was prepared by A-Z Mining Professionals Ltd. (
"AMPL"
) and contemplates the restart of
open pit mining with potentially economic mineralization processed in the existing on-site processing
facilities.
The open pit will produce approximately 26 to 27 million tonnes per year of potentially
economic molybdenum (
"Mo"
) mineralization.
Run of Mine (
"ROM"
) potentially economic mineralization
will be crushed, ground in the SAG mill located in the New Plant (as defined below), ground in ball mills
located in both the New Plant and Old Plant, as described further below, and followed by Mo concentrate
produced by flotation.
The resulting Life of Mine (
"LOM"
) is 10 years.
BACKGROUND
The Endako Mine is a past producing mine with flooded open pits, an original mothballed processing
facility (the
"Old Plant"
) which had processing capacity of approximately 30,000 tonnes per day, a
larger 52,000 tonnes per day processing facility on care and maintenance since 2015 (the
"New
Plant"
) and all support infrastructure and facilities in place (also on care and maintenance).
Both
processing facilities employed flotation recovery producing molybdenum concentrate.
The Endako Mine is located in the Bulkley-Nechako region of central British Columbia, approximately
190 kilometres (km) west of Prince George and about 400 km east of Prince Rupert, British Columbia.
The nearest town is Fraser Lake, about 15 km east of the Endako Mine and is located about 10 km
south of Highway 16 (the Yellowhead Highway) on a paved road.
On May 30, 2024, Moon River completed the indirect acquisition of a 25% interest in the Endako Mine
from Sojitz Corporation (
"Sojitz"
), a Japanese multi-national company. The Endako Mine is jointly
owned by Moon River (25%) and Centerra Gold Inc. (
"Centerra"
) (75%) and operates through a joint
venture company. While Centerra is aware that this PEA was being prepared for Moon River, it has
neither participated in nor endorsed the work.
PROJECT RESTART PLAN
The restart mining plan comprises:
1
.
Mining measured and indicated potentially economic mineralization, located mainly in the walls
and floors, of the existing Endako and Denak open pits.
2
.
Rebuilding existing blast hole drills and rope shovels from the past operation and lease major
mining equipment and purchase smaller support equipment for the mine.
3
.
Relocating the existing primary crusher and a second new crusher to outside of the new ultimate
open pit limits.
4
.
Adding pumping capacity to split the mill feed between the New Plant and the Old Plant ball mills
and add extra rougher flotation capacity to the New Plant to allow for the planned higher throughput.
5
.
Refurbishing a portion of the Old Plant grinding circuit to provide an extra 20,000 - 25,000 tonnes
per day grinding capacity and connecting this grinding circuit to the New Plant flotation circuit.
6
.
Refurbishing of major equipment and refurbishing or replacing smaller equipment components (as
required) in the processing plants.
7
.
Construction of a new concentrate dewatering and drying circuit and building.
8
.
Construction of a tailings sand plant to produce cycloned tailings to facilitate tailings dams height
and storage capacity increases to meet the restart mine plan.
9
.
Refurbishing and/or upgrading, as required, of the site infrastructure buildings, facilities, and
services.
10
.
Construction of a water treatment plant (
"WTP"
) to treat all contact water (water from disturbed
areas of the mine) not recycled in the mining and processing operations.
11
.
Reconfiguring and installation of water pipelines to store and remove water (water from the
disturbed areas of the mine) not recycled in the mining and processing operations.
12
.
Construction of water pipelines from TP-1 to the WTP and from the WTP to the discharge to the
environment location on the Endako River.
13
.
Sale of molybdenum concentrate to domestic and international smelters.
Mining would employ open pit techniques using conventional rubber tired, diesel-powered mobile
equipment, track mounted drills, and rope shovels.
The LOM measured and indicated potentially economic mineralization production is scheduled at
approximately 26 to 27 million tonnes per year.
The mine schedule prioritizes mining of higher-grade
material from within the open pits for the first approximately 10 years. The LOM strip ratio is favourable
at 0.68 tonnes of waste per 1 tonne of potentially mineable resources.
The mine schedule is based on the optimised pit shell with mining recovery and mining dilution rates of
95% and 5%, respectively.
Mining will be performed on a 24 hour, 7 days per week basis. Mining equipment will be a combination
of leased and owned.
The potentially mineable resources from the open pit optimisation were used to develop the mine plan,
which would extract 273 million tonnes at an average grade of 0.075% MoS2 (0.045% Mo) after dilution
and mining losses.
PROCESSING
Recovery of a molybdenum concentrate from potentially economic mineralization will be achieved using
the refurbished existing processing plant facilities.
The addition of new processing equipment is
required for concentrate leaching, dewatering, and drying. The processing plant will have a capacity to
treat 75,000 tonnes per day or 27 million tonnes per annum.
The existing in-pit primary crusher and a new second crusher, located close to the New Plant, will
process the potentially economic ROM mineralization. The crushed potentially economic mineralization
will be ground in the SAG mill located in the New Plant followed by grinding in ball mills located in both
the New Plant and the Old Plant.
The grinding products from the Old Plant and the New Plant will be combined at the beginning of the New
Plant flotation circuits.
Concentrate will be produced by rougher/scavenger flotation, primary concentrate
regrinding, first cleaner/scavenger flotation, secondary concentrate regrinding, secondary cleaner
flotation, and final concentrate thickening.
Final concentrate leaching and product dewatering and drying will be performed in a new facility
constructed on the footprint of the existing ultra-pure plant (to be demolished).
The forecast average processing plant molybdenum recovery is 75.7%.
INFRASTRUCTURE
Existing infrastructure includes:
1
.
access roads, BC power grid-power supply to site, nearby railway line and fresh water supply
network;
2
.
primary crushing plant; (to be moved);
3
.
one new processing plant capable of processing 52,000 tonnes/day;
4
.
one old decommissioned processing plant capable of processing 30,000 tonnes/day;
5
.
tailings management facility with 2 disposal areas TP-1 and TP-3;
6
.
reclaim water ponds;
7
.
administration, warehouse, change house, laboratory, mine shops and buildings; and
8
.
one reclaimed tailings disposal area TP-2; and
9
.
two non-operational roasters.
Refurbishing and upgrading of all facilities, other than the existing roasters which will remain non-
operational, will be required and are included in the restart plan and cost estimates.
MANPOWER
The operation would employ a total of approximately 500 hourly and staff personnel.
ENVIRONMENT AND PERMITTING
The Endako Mine is in compliance with all necessary permits for its status as an operation on care and
maintenance.
A restart of mining operations will necessitate the reactivation and refreshing of all
necessary water and operating permits.
Additionally, an amendment to the existing tailings management
facility permit will be required, prior to production.
This will allow placement of classified tailings to
increase the dam heights, in order to accommodate LOM tailings disposal. It is anticipated that the
required permits for a restart of mining operations will be obtained as a matter of course.
PROJECT SCHEDULE
The Endako Mine restart schedule requires approximately 1.5 to 2 years from the approval of restart to
the start of production.
During the first year, detailed engineering on the open pit mining, processing
plants reconfiguration and upgrades, support facilities refurbishment and upgrades, preparation and
awarding of contractor and supplier major contracts will be completed.
Construction and start of
commissioning will require an additional year.
MINERAL RESOURCE
The data used to generate the resource calculation was reviewed and approved by F. Bakker P.Geo.
This included two site visits (April 2025 and September 2025) by the author. Sampling methods, QAQC
programs and databases were examined.
As the database contains approximately 360,000 individual
assays and over 290,000 drill holes (reverse circulation, diamond drill and blast holes) it was not
possible to verify the entire data set due to the volume of data and as many of the holes no longer exist.
The assay data was verified by comparing to Endako written reports, filed assessment reports and
month end statements and work undertaken by previous authors. The author is of the opinion that the
accuracy of the data was sufficient for a mineral resource statement.
The mineral resource was calculated utilizing commercial 3D Block Modelling Software (HxGN Mine
Plan
tm
3D). The model utilized geological domains based on geostatistics, lithology, a grade limit
design of approximately 0.01% MoS2 and limits imposed by both existing pit walls and potentially new
pit wall limits.
This resource model was used for determining the mineral resources estimate and to
undertake open pit optimisation of a mine production plan utilizing the potentially mineable resource.
The effective date of the mineral resource is the upcoming publication date of the PEA.
The author is unaware of any known legal, political, environmental, or other risks that could materially
affect the potential development of the mineral resources or mineral reserves as this was an existing
operating mine.
Table 1.1 presents the mineral resource estimate for the Endako Mine at various cut-off grades.
Inferred
mineral resources were not included in the PEA economic analysis.
Table 1.1
Mineral Resources
MEASURED
RESOURCE
INDICATED
RESOURCE
MEASURED AND
INDICATED
INFERRED
RESOURCE
ZONE
TONNES
%MoS2
TONNES
%MoS2
TONNES
%MoS2
TONNES
%MoS2
Total
>=
0.010
237,413,000
0.0468
435,641,000
0.049
673,054,000
0.048
164,564,000
0.038
Total
>=
0.015
206,183,000
0.0522
409,652,000
0.052
615,835,000
0.052
144,091,000
0.037
Total
>=
0.020
183,642,000
0.0565
382,707,000
0.054
566,349,000
0.055
128,689,000
0.040
Total
>=
0.025
157,962,000
0.0621
347,564,000
0.057
505,526,000
0.059
112,503,000
0.043
Total
>=
0.030
138,289,000
0.0671
311,767,000
0.061
450,056,000
0.063
93,871,000
0.046
Total
>=
0.035
117,593,000
0.0733
271,696,000
0.065
389,289,000
0.067
76,928,000
0.050
Total
>=
0.040
100,673,000
0.0794
234,981,000
0.069
335,654,000
0.072
60,127,000
0.054
Total
>=
0.045
85,723,000
0.0860
187,826,000
0.074
273,549,000
0.078
45,770,000
0.060
Total
>=
0.050
73,121,000
0.0927
158,985,000
0.079
232,106,000
0.084
34,961,000
0.066
Total
>=
0.055
62,662,000
0.0996
132,436,000
0.085
195,098,000
0.090
27,753,000
0.072
Total
>=
0.060
54,246,000
0.1061
112,264,000
0.090
166,510,000
0.095
22,864,000
0.077
Total
>=
0.065
46,871,000
0.1131
93,091,000
0.096
139,962,000
0.102
18,903,000
0.083
Total
>=
0.070
40,936,000
0.1198
78,354,000
0.101
119,290,000
0.108
15,875,000
0.087
Total
>=
0.075
35,776,000
0.1267
64,680,000
0.107
100,456,000
0.114
13,276,000
0.092
Total
>=
0.080
31,269,000
0.1339
54,004,000
0.113
85,273,000
0.121
11,042,000
0.097
The highlighted resource at a cutoff grade of 0.040%MoS2, (excluding inferred resources) is the long
term potentially economic mineralization that could be available for mining.
This cutoff grade was used in
determining the mining plan which reflects the mining and processing rate of approximately 27 million
tonnes per year at an overall LOM operating cost of $11.84.
The 0.040% MoS2 cutoff was chosen as it
has an in-situ value of $12.14 per tonne, which is slightly above the LOM mining cost. (Grade/100 x 2204
lbs/tonne x conversion to Mo (0.599%) x Mill Recovery (75.7%) x $22.5 (price/lb) x1.35 (US$ Exchange
rate) = $12.14/tonne).
There are no mineral reserves for the Endako Mine.
Mineral resources that are not mineral reserves do
not have demonstrated economic viability.
CAPITAL EXPENDITURES
Pre-production capital expenditures for the Project Base Case are estimated to total $493.7 million. The
total capital expenditure includes contingencies from 20% to 30%. The breakdown of capital
expenditures is presented in Table 1.2 below.
Table 1.2
Pre-production Capital Expenditures - Estimates
Component
Total Expenditures
($ million)
Mine
$35.1
Equipment Lease Deposit and Purchases
$23.3
Processing Plant
$89.2
Tailings Management Facilities
$150.1
Surface Infrastructure
$13.2
Non- Mining Mobile Equipment
$5.0
Water Management
$31.5
Water Treatment
$52.7
Owner's Costs
$10.0
Contingency
$83.7
Total
$
493.7
In addition to the capital expenditures, working capital of $57.2 million, based on 3 months of operating
costs, has been estimated.
LOM sustaining capital requirements of $3.2 million are estimated.
This comprises upgrades to the
processing plant and surface infrastructure.
Mining equipment is to be leased to own for the LOM.
The
tailings management facility dam raising costs are included in operating costs as the tailings will be
used to increase dam heights as part of the tailings facility management plan.
OPERATING COSTS
The estimated total average Base Case operating cost (excluding smelting and refining) is
approximately $11.84 per tonne of potentially mineable resources or the equivalent (exchange rate of
CAD$: US$ =1.35) or US$11.61 per pound of molybdenum. Table 1.3 below, presents a summary of the
LOM average operating costs for each department on a cost per tonne of potentially mineable resources
basis.
Table 1.3
Project Operating Costs Summary
Component
Cost/tonne
($)
Mining
$5.45
Processing and Tailings
$5.53
Surface Department, Environmental, and G&A
$0.86
Total Operating Cost per Tonne
$11.84
Total Operating Cost per Pound of Molybdenum
US$11.61
FINANCIAL RESULTS
The financial returns (Table 1.4) from the potentially mineable resources are presented for the expected
parameters and costs at a molybdenum long term three-year trailing average price of US$49.73 per kg
(US$22.50 per pound lb.) of molybdenum oxide, at an exchange rate of CAD$ 1.00 = US$0.74.
The Endako Mine is forecast to produce approximately 9.3 million kilograms (20.5 million pounds) per
year of molybdenum metal in concentrate. Life of Mine total molybdenum metal in concentrate production
is 93.3 million kilograms (205.2 million lbs.).
Table 1.4
Base Case Financial Returns
Pre-Tax
After-Tax
Pre-production CAPEX ($ millions)
$493.7
$493.7
Undiscounted Net Revenue ($ millions)
$5,854
$5,854
Undiscounted Total Cash Flow ($ millions)
$2,087
$1,478
NPV (5%) - millions
$1,405
$996
NPV (8%) - millions
$1,116
$790
IRR
46%
40%
Payback Period
2.2 years
2.2 years
SENSITIVITY ANALYSIS
Sensitivity analysis was performed for molybdenum price, capital expenditures, operating costs, mined
grades and exchange rate for ranges up to ±20%.
The Project is sensitive to changes in metals prices
and reasonably sensitive to changes in all the other variables.
The sensitivity analysis results are shown in Table 1.5 and 1.6 and Figure 1.1 and 1.2.
Financial results
are most sensitive to grade, exchange rate and molybdenum price changes and least sensitive to capital
expenditures and operating costs.
Table 1.5
Sensitivity Analysis for After-Tax NPV
Parameter
After-Tax NPV 8% ($ million)
Parameter
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Mined Grade
114
313
473
635
790
945
1100
1254
1409
Molybdenum Price
-302
-31
265
526
790
1061
1344
1641
1948
Operating Costs
1071
1001
931
862
790
719
649
573
502
Capital Costs
865
846
828
808
790
771
753
734
716
US$:CAD$ Exchange Rate
273
407
536
666
790
915
1038
1161
1284
Table 1.6
Sensitivity Analysis for After-Tax IRR
Parameter
After-Tax IRR (%)
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Mined Grade
14
21
28
34
40
46
52
58
64
Molybdenum Price
-7
7
19
30
40
51
62
73
84
Operating Costs
52
49
46
43
40
37
35
31
28
Capital Costs
50
48
45
43
40
38
37
35
33
US$:CAD$ Exchange Rate
19
25
30
36
40
45
50
55
59
Figure 1.1
Graph of Net Present Value (NPV) at 8% Discount Rate
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7009/275365_figure1.1.jpg
Figure 1.2
Graph of IRR Sensitivity Analysis
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7009/275365_figure1.2.jpg
POTENTIAL PROJECT ENHANCEMENTS
Preliminary assessment of shovel/excavator whole bucket ore and waste differentiation has been
investigated.
This would potentially facilitate better in-pit grade control and minimize waste rock sent to
the processing plant for beneficiation.
In-bucket sensors determine if a loaded bucket of material is ore
or waste, for placing in the appropriate truck for transport to the primary crusher or waste storage areas.
OPS technology, whereby rock exiting the primary crushers can be screened for an optimum size, should
be further investigated.
There is currently a 5-tonne representative sample of rock from the Endako pit
undergoing testing at a reputable vendor and manufacturer of OPS equipment.
RECOMMENDATIONS
Based on this PEA, Endako Mine restart recommendations are:
Complete a Feasibility Study for mine restart using a mining and processing rate of approximately
75,000 tonnes per day (27 million tonnes per year) of potentially economic mineralization.
For the Feasibility Study, develop a new geology block model for use in resources estimation,
using geological data owned by the joint venture company. A new model should be constructed
using metric measures consistent with present Canadian practice and to avoid potential errors
with conversions using a mix of Metric and Imperial measures.
Undertake diamond drilling on nearby known targets of potential resources to expand potentially
mineable resources and increase the LOM.
Develop an updated or new detailed water management model which would include hydrology and
tailings management facility leachate seepage data and forecasts.
Investigate the use of excavator/shovel bucket ore sensing technology and OPS technology for
inclusion in the Feasibility Study.
Non-IFRS Financial Measures