Selkirk Copper Announces Positive PEA for the Minto Project, Delivering After-Tax NPV of C$494M with 48% IRR Strong Platform to Realize Concentrate Production by 2028 2026 Minto Project Preliminary Economic Assessment Highlights
Selkirk Copper Announces Positive PEA for the Minto Project,
Delivering After-Tax NPV of C$494M with 48% IRR
Strong Platform to Realize Concentrate Production by 2028
2026 Minto Project Preliminary Economic Assessment Highlights
• Target Mine Life, Mill Throughput, and Robust Economics Across Commodity Price Scenarios
o 13 year mine life at 4,100 tonnes per day (“tpd”) mining-milling rate that produces peak 27,200 t
copper-equivalent 1 contained in concentrate or 48,700 t of high-grade copper -gold-silver
concentrate at peak production
o NPV7% of C$ 494M, 47.8% internal rate of return (“IRR”), and 1. 9 year after-tax payback from
first production at US$5.00/lb copper, US$3,600/oz gold and US$50/oz silver (“Planning Prices”)
o NPV7% of C$ 1,023M, 7 8.2% IRR, and 1.3 year after-tax payback from first production at
US$6.50/lb copper, US$4,300/oz gold and US$65/oz silver (“Spot Prices”)
o NPV7% of C$ 1,385M, 96.3% IRR, and 1.0 year after -tax payback from first production at
US$7.50/lb copper, US$5,400/oz gold and US$75/oz silver (“Upside Prices”)
• Capital Efficient Leveraging Existing Infrastructure
o The Project demonstrates a strong Capital Efficiency Ratio 2 with an after -tax NPV to initial
capital ratio of 2.7:1 at Planning Prices, increasing to 5.5:1 at Spot Prices highlighting leverage to
higher copper, gold and silver prices. The high capital efficiency ratio is a result of road, barge
facilities, power transmission line, substation, fuel farm, services, camp, warehouse, workshops,
grinding and milling infrastructure, water treatment plant, existing underground development, and
general on-site services that are in good working order requiring negligible capital investment to
make operational
o Mine Life-to-Payback2, a ratio which describes the potential for the asset to return capital and
provide exposure to positive copper supply -demand fundamentals through the planned mine , is
6.8:1 at Planning Prices
• Exploration Growth Potential Beyond Current Study
o Phase 1 52,288 metre drill program completed in April 2026 increased Measured & Indicated
Resources in the 2026 Mine ral Resource Estimate (“MRE”) by 280% and increased contained
copper, gold, and silver by 182%, 184% and 188% respectively above the 2025 Mineral Resource
Estimate
o Phase 2 50,000 metr e drill program initiated in May 2026 is now 98% complete, the results of
which are not included in the 2026 MRE or 2026 PEA mine plan but which continue to extend
and expand zones of known mineralization reinforcing significant upside mine life and production
potential
• Water Management and Permitting
o In designing the Minto Project restart, significant attention was place d on ensuring all of the
planned development work and planned operations, including water management, would be within
the boundary of the existing Quartz Mining License and would minimize impact on the
environment. The Minto Project restart design has also benefitted from input from the Selkirk First
Nation. In addition, the upcoming amended permit applications, to be submitted in Q4 2026, do
not expect to request or make notable changes to the discharge criteria and requirements currently
set for the site
o T he Company believes that by confining development and operating plans to the Quartz Mining
License area, by making no significant changes to water discharge criteria, and by working closely
with the Selkirk First Nation, the assessment of the amended permit applications can proceed in a
timely manner
• Potential for First Concentrate Production in 2028
o Preliminary execution planning, including permitting, underground mine development, and site
preparations, supports the potential to deliver first concentrate production in H2 2028 with full-
ramp up in mining, milling, and concentrate production by H1 2029
o The Company recognizes that it is pursuing a restart plan that requires timely delivery of several
scopes of work, including the timely review and elaboration of permit amendment applications,
however each scope of work has been assessed in the PEA and the Company has been well-
supported by the Selkirk First Nation, suppliers and service providers, specialist contractors, and
by the Yukon Government which we expect to continue during the next phase of work
September 22, 2 026 - Vancouver, BC and Pelly Crossing, YT – Selkirk Copper Mines Inc. (TSX-
V:SCMI | FRA:IO20 | OTCQX:SKRKF) (“Selkirk Copper” or the “Company”) is pleased to announce
positive economic results of a Preliminary Economic Assessment (the “PEA” or the “Study”) for its copper-
gold-silver Minto Project (the “Project”) located in Yukon, Canada. The PEA provides an in-depth technical
and economic assessment of the restart of open pit and underground mining operations, crushing, grinding
and flotation ope rations, and concentrate production activities and outlines a potential pathway to
development of a longer-life operation with additional copper-gold-silver concentrate production dependant
on further exploration success.
M. Colin Joudrie, President & CEO, commented: “ Over the past 12 months the team has delivered
exceptional results across all aspects of our restart plan from resource discovery, expansion and definition,
resource modeling, integrated mine planning, project definition, engineering and design, capital and
operating cost estimation, permitting, and Selkirk First Nation engagement. The positive economics
described in the PEA create the platform for the Company to pursue a restart decision at the completion
of a Feasibility Study and permit amendment receipt in H2-2027 with targeted first concentrate production
by H2-2028. The level of detail developed in the PEA study, including integrated mine plans, equipment
definition, and detailed capital, operating and sustaining cost estimations, has increased our confidence in
our ability to deliver on our focused restart timeline.
We look forward to initiating Feasibility Study work and submission of our permit amendment application
in late 2026 followed by another MRE Update expected in Q1 2027 which will include results from our
Phase 2 50,000 m drill program which is nearing completion.
Our entire team recognizes the importance of timely completion of several scopes of work to achieve our
restart plan however we are buoyed by the positive outcome of the Phase 1 and Phase 2 drill program,
positive restart economics reflected in the PEA, and the opportunity to breathe new life into an asset that
has much more to give.”
Preliminary Economic Assessment Overview
The Preliminary Economic Assessment was prepared by a team of independent industry experts, led by
Hatch Ltd. (“Hatch”) and supported by SRK Consulting (Canada) Inc. (“ SRK”), Fuse Advisors (Part of
SLR) (“Fuse”), Moose Mountain Technical Services (“MMTS”), and Ensero Solutions (“Ensero”).
Scott Fulton, P.Eng., VP Engineering for the Company and a non-independent Qualified Person as defined
by National Instrument 43 -101, has supervised the preparation of this news release and approved the
scientific and technical information herein. References to dollars represent Canadian Dollars ( $) unless
otherwise specified. Abbreviations for thousands (“k”) and millions (“M”) are used for brevity. The
Company intends to file the complete PEA Technical Report on its website (www.selkirkcopper.com) and
SEDAR+ (www.sedarplus.ca) within 45 days of this press release.
Measured & Indicated Resources and Inferred Resources described in the 2026 Mineral Resource Estimate
(effective date June 10, 2026) are 47.8 million tonnes at 0.89% copper, 0.34 g/t gold, and 3.2 g/t silver
totaling 940 million pounds copper, 530,000 ounces gold, and 4.97 million ounces silver and 16.9 million
tonnes at 0.76% copper, 0.26 g/t gold, and 2.7 g/t silver totalling 281 million pounds copper, 142,000 ounces
gold, and 1.5 million ounces silver respectively. Applying the proposed development plan described in the
PEA results in a mineable inventory of ~18.4 Mt being generated, from both open pit and underground
sources, which results in a planned initial mine life of 13 years. The PEA is preliminary in nature and
includes Inferred Mineral Resources that are considered too speculative geologically to have economic
considerations applied that would enable these resources to be categorized as Mineral Reserves. There is
no certainty that the projections in the PEA will be realized. Mineral Resources whi ch are not Mineral
Reserves do not have demonstrated economic viability.
The PEA has been designed to constrain surface and underground development work and above ground
installations and infrastructure to that which can be located within the boundary of the existing Quartz
Mining License (“QML”) over the entire planned initial 13 year mine life.
The Project is based on a 4,100 tpd mining and processing plant operating rate which includes extraction
of mineralized material from two (2) primary underground mining areas, two (2) open pits, feeding blended
mine material into a new crushing circuit, which then feeds into an existing semi-autogenous and ball mill
grinding circuit. Copper-gold-silver bearing minerals are recovered through a new gravity circuit and an
existing flotation circuit designed to produce a single copper-gold-silver concentrate product.
The PEA considers production of conventional slurry tailings initially placed into previously mined-out pits
with a newly designed and engineered retaining dam to be constructed along a portion of the pit edge, then
transitioning to a new dry-stack tailings process part way through the mine life . The new PEA dry-stack
tailings storage is located at the western margin of the QML. The planned transition to dry-stack tailings is
being pursued to reduce impact to the environment.
The initial capital costs (“Capex”) of the Project, including working capital requirements, owner’s costs,
and contingency commensurate for the level of study, is estimated to be C$186 million. Sustaining capital
costs (“Susex”) over the life of mine is estimated to be C$409 million, including a scoping-level estimate
of closure and rehabilitation.
Operating costs (“Opex”) over the life of mine are estimated at C$1,764 million, encompassing mining,
processing, tailings, water treatment, site general and administrative costs, and logistics required to support
planned production throughout the operation’s life. Operating costs are estimated to average C$95.77 per
tonne milled over the life of mine , with underground mining representing the largest component of unit
costs.
Sustaining capital costs over the life of mine are estimated at C$409 million, encompassing underground
mine development, mobile equipment replacement, infrastructure renewal, and other capital investments
required to maintain the planned production profile and operational performance designed for in the PEA.
Sustaining costs are inclusive of the scoping-level estimate of closure and rehabilitation costs expected to
be incurred after production operations have ceased.
Scoping-level closure and r ehabilitation plans, which follow the completion of mining and processing
operations, include recontouring, covering, and revegetating necessary areas, deconstruction of structures,
rehabilitation of disturbed surface areas, environmental closure, long-term stabilization activities, water and
condition monitoring, and necessary logistics to execute these activities.
Net Smelter Return (“NSR”) estimates were developed and used for open pit optimizations, underground
stope development, and classification of mineralized material to be fed to the process plant. NSR estimates
used the same assumed metal prices (“Design Prices”) as those used to calculate the 2026 MRE, which are
US$4.60/lb copper, US$3,300/oz gold, and US$40/oz silver. The NSR values represent the estimated
recovered and payable metal value after deductions for treatment and refining charges, transportation and
royalties. Prices, recoveries, payabilities and cost deductions were applied consistently across all material
types included in the development of open pit and underground mine plans and mineral processing plans.
Payabilities, charges, and deduction schedules follow indust ry‑typical concentrate contract structures for
copper‑gold-silver concentrates. A 1.5% NSR royalty payable to the Selkirk First Nation was applied to all
payable metals.
The PEA considers submission and elaboration of a permit amendment application to the Yukon
Environmental Socio-economic Assessment Board (“YESAB”) as well as various other permit applications
and amendments in support of exploration, development, and site -specific activities necessary to support
planned construction activities and restart of mining, milling and concentrate producing operations.
The product of mining and mineral processing activities is a high-grade copper-gold-silver concentrate with
a target average grade of 38.0% copper, 12-18 g/t gold, and 100-150 g/t silver with negligible deleterious
elements, representing a premium -quality concentrate that compares favourably to the highest -quality
copper concentrates produced in the world today. Peak copper-equivalent1 contained in concentrate over
the planned initial life of mine is 27,200 tonnes per annum (“tpa”), resulting in 48,700 tpa of high-grade
(38% Cu) copper concentrate. Metal contained in mill feed material over the planned initial life of mine
is approximately 434 Mlbs of copper, 271 koz of gold, and 2.3 6 Moz of silver or 653 Mlbs copper -
equivalent1. Payable metal contained in concentrate over the planned initial life of mine is approximately
377 Mlbs of copper, 225 koz of gold, and 1.39 Moz of silver, or 552 Mlbs copper-equivalent1.
The Project study work, underpinned by a successful 52,288 metre Phase 1 exploration, resource expansion,
and resource definition drill program and updated MRE, has resulted in a 13 year mine life. The results
from an ongoing Phase 2 50,000 m program, that is nearing completion, have not been incorporated into
the PEA but will be incorporated into a Feasibility Study expected to start in Q4 2026.
Economic analysis for the PEA was completed using Planning Prices of US$5.00/lb copper, US$3,600/oz
gold, and US$50/oz silver , whereas Design Prices which informed the MRE and mineable inventory
estimates were US$4.60/lb copper, US$3,300/oz gold, and US$40/oz silver.
Economics for the Minto Project , applying Planning Prices and a 7% discount rate result in an after-tax
NPV7% of C$494M and after-tax internal rate of return of 4 7.8%. Due to the relatively low initial capital
cost of C$186M estimated to re-establish production, the after-tax payback period from first production is
approximately 1.9 years.
At Spot Prices of US$6.50/lb copper, US$4,300/oz gold and US$65/oz silver, which represent a rounded
average of the quarter-to-date daily cash metal prices quoted on the London Metal Exchange, the after-tax
NPV7% increases to C$1,023M, the internal rate of return increases to 78.2%, and the after-tax payback
period from first production reduces to 1.3 years.
At Upside Prices, which are reflective of potential future commodity prices as a results of a number of
fundamental supply-demand factors in copper and increasing interest by global financial institutions and
governments in gold and silver as financial instruments, of US$7.50/lb copper, US $5,400/oz gold and
US$75/oz silver, the after-tax NPV7% further increases to C$1,385M, the internal rate of return increases
to 96.3%, and the after-tax payback period from first production decreases to 1.0 years.
In descending order, the Minto Project restart economics are most sensitive to: i) copper price; ii)
CAD:USD foreign exchange rate; iii) copper recovery; iv) gold price; and v) operating costs. In addition,
project returns are sensitive to mine construction execution timelines and overall investment returns are
sensitive to permitting timelines.
Reflective of the style and character of the mineralization and the mineralized lenses that comprise the
Minto Project, economics of the restart are highly leveraged to copper and gold prices.
Table 1: Minto Project PEA Summary at Planning Prices
PEA Summary Financial Inputs Units Values
Planning Price Assumptions
Copper Price US$/lb 5.00
Gold Price US$/oz 3,600
Silver Price US$/oz 50.00
Exchange Rate CAD:USD 0.72
Discount Rate % 7
Key Metrics – Life of Mine (LOM)
Mine Life Years 13.0
Tonnes Milled Mt 18.4
Open Pit Strip Ratio W:O 7.9
Daily Mill Throughput tpd 4,100
Annual Mill Throughput Mtpa 1.5
Contained Metal in Mill Feed
Copper Mlbs 434
Gold koz 271
Silver Moz 2.4
Copper-equivalent1 Mlbs 653
Processed Feed Grades
Copper % 1.07
Gold g/t 0.46
Silver g/t 4.00
Oxide Ratio % 7.5
Copper-equivalent1 % 1.61
Estimated Metal Recoveries:
Copper % 88.7
Gold % 84.6
Silver % 77.3
Operating Costs (LOM Average)
Underground Mining C$/t milled 34.47
Open Pit Mining C$/t milled 12.20
Processing C$/t milled 15.89
G&A C$/t milled 24.47
Tailings, Environment, and Water C$/t milled 8.74
Total On-Site Operating Costs C$/t milled 95.77
Concentrate Shipping C$/t wet concentrate 342
Copper C1 Net of By-Product Credits2 US$/lb 1.53
Copper-equivalent1 Cash Operating Costs2 US$/lb CuEq1 2.63
Capital Costs
Initial Capital Cost (incl. Contingency) C$M 185.9
Sustaining Capital Cost (incl. Closure) C$M 409.3
Project Economics
Pre-Tax NPV @ 7% C$M 742.6
After-Tax NPV @ 7% C$M 493.9
Pre-Tax IRR % 54.8
After-Tax IRR % 47.8
After-Tax Payback from First Production Years 1.9
Capital Efficiency Ratio - 2.7
Table 2: Minto Project PEA Economic Sensitivity
Downside Planning Spot Upside
Copper Price
(US$/lb) 3.50 5.00 6.50 7.50
Gold Price
(US$/oz) 2,500 3,600 4,300 5,400
Silver Price
(US$/oz) 35.00 50.00 65.00 75.00
Copper TC | RCs
(US$/t | US$/lb) 35 | 0.035 35 | 0.035 (186) | (0.186) (186) | (0.186)
After Tax NPV7%
(C$M) 10 494 1,023 1,385
After Tax IRR
(%) 9 48 78 96
Payback from First Production
(years) 6.5 1.9 1.3 1.0
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too
speculative geologically to have economic considerations applied that would enable these resources to be
categorized as Mineral Reserves. There is no certainty that the projections in the PEA will be realized.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
Infrastructure
One of the features of the Minto Project, as an integrated mining and milling operation that produced high
grade copper concentrates as recently as May 2023, is the substantial surface infrastructure that is available
and in place to enable a low-cost restart of operations. Selkirk Copper’s engineering and design team and
site care and maintenance team, supported by a wide range of third -party experts including those from
Hatch, SRK, Fuse, and others, have completed detailed assessments of the usability of site infrastructure
and existing equipment. These assessments have determined that the majority of this infrastructure is in
good working order requiring only minor attention and refurbishment. Work on repairs and refurbishments
has been ongoing since Q3 2025 in an effort to allow activities during the Capex phase to be focused on
the critical path items.
Listed below are those installations, equipment , and facilities that are not expected to require significant
additional investment.
Existing Installation, Equipment and Facilities
Surface (General) • Airstrip
• Existing accommodations
• Kitchen and dining hall
• Main power supply line and substation
• Maintenance shops (mechanical and
electrical)
• Warehouse
• Concentrate storage shed
• Emergency response and First Aid Building
• Mine and site operations offices
• Fuel storage and dispensing facility (diesel
and gasoline)
• Propane storage (multiple locations)
• 3 x Diesel generators
• Explosives magazine facility
• Potable water treatment plant
• Waste disposal sites
• Changing facilities (the “dry”)
• Mobile equipment wash-bay
• Gymnasium
Process Plant
• 1 x Semi-Autogenous Grinding Mill
• 2 x Ball Mills
• Cyclones
• Flotation cells (multi-stages)
• Concentrate thickening and filtration
• Tailings thickening
• Reagent storage building
• Assay laboratory
• Concentrate storage facility
• Tailings building
Water and Tailings Management
• Water treatment plant
New or significantly rehabilitated or re -established infrastructure, equipment, or facilities necessary for
the restart of mining, milling and concentrate production activities are listed below.
New Installations, Equipment and Facilities
Surface (General)
• 3 x new diesel generators
• Upgraded dining facilities
Surface Mining
• 2 x open pit mining areas including pre -
stripping, access and haul roads, set-back
areas, and water diversion structures
• 1 x primary waste rock management facility
for Ridge top and 118 Open Pits and
underground waste
Underground Mining
• Rehabilitation of the existing
underground mine
o Main fresh air fan (located on surface)
o Main return air raise
o Secondary egress escapeways
o Underground ventilation distribution,
services and utilities
o Sumps
• New underground mine at Minto North
o Portal access road and staging area
o 1,500 m of horizontal development
o 250 m x 3 m diameter ventilation raise
and secondary egress escapeways
o Ventilation and underground utilities
o Sumps
Crushing Circuit
• Three-stage crushing and screening circuit
• Mill feed laydown and blending area
Concentrate, Tailings and Water
Management
• Concentrate dryer (screw conveyor/dryer)
• Tailings cyclones
• Dry-stack tailings filtration building and
related handling facility
The PEA modelled Capex period runs from July 1, 2027 until June 30, 2028. Items and costs expected to
be incurred before the start of the Capex period (“Pre-Capex”) have been excluded from the scope of the
PEA and the resultant economic analysis and deemed to be sunk costs. Costs for significant items expected
to be incurred in whole or in part during the Pre-Capex period include: dewatering, physical rehabilitation,
and re-servicing of the existing underground; ongoing water treatment; deposits for fixed and mobile
equipment; refurbishment of two existing backup diesel generators; and other regular site care &
maintenance activities.
Mineral Resource Summary
The Mineral Resources at the Minto Project, described in the updated 2026 Mineral Resource Estimate, are
comprised of open pit and underground Measured & Indicated (“M&I”) Mineral Resources of 47.8 million
tonnes at 0.89% copper, 0.34 g/t gold, and 3.2 g/t silver totaling 940 million pounds copper, 530,000 ounces
gold, and 4.97 million ounces silver which represent a 182%, 184% and 188% increase respectively in
contained metals above the previous 2025 MRE. The 2026 Measured & Indicated Resources include 26.0
million tonnes of underground resources at 1.14% copper, 0.49 g/t gold, and 4.4 g/t silver; and 21.8 million
tonnes of open pit resources at 0.59% copper, 0.17 g/t gold, and 1.8 g/t silver.
In addition, the Minto Project has combined open pit and underground Inferred Mineral Resources of 16.9
million tonnes at 0.76% copper, 0.26 g/t gold, and 2.7 g/t silver containing 281 million pounds c opper,
142,000 ounces gold, and 1.5 million ounces s ilver. Inferred Mineral Resources are considered too
speculative geologically to have the economic considerations applied to them that would enable them to be
categorized as Mineral Reserves.
Mineralization in several of the zones and lenses across the central mine area remain open laterally and at
depth and there are several high potential drill targets for follow -up in future exploration, definition and
delineation work.
The ongoing 50,000 metre Phase 2 drill program is 98% complete , the results of which have not been
included in the PEA. Initial assay results and visual drill logs continue to show expansion potential across
each of the mineralized zones in the central mine area. The results of the Phase 2 drill program will be
incorporated into an updated MRE scheduled for completion in Q1 2027, which will form the basis of an
updated set of integrated mines plans in a Feasibility Study scheduled to commence in Q4 2026.
Table 3: Current Mineral Resource Estimate
Type
Cutoff
Class
ROM In situ Grades Metal
(CDN$) Tonnage
(000)
NSR
(CDN$)
Cu
(%)
Au
(gpt)
Ag
(gpt)
Ox
Ratio
ASCu
(%)
Cu
(Mlbs)
Au
(Koz)
Ag
(Koz)
Open
Pit $30
Indicated 21,779 $80.63 0.59 0.17 1.8 0.11 0.073 283 122 1,294
Inferred 7,052 $74.61 0.55 0.13 1.6 0.08 0.048 85 30 354
UG $80
Measured 348 $153.47 0.92 0.39 3.3 0.05 0.041 7 4 36
Indicated 25,679 $189.20 1.15 0.49 4.4 0.06 0.067 650 404 3,638
Meas + Ind 26,027 $188.72 1.15 0.49 4.4 0.06 0.070 657 408 3,674
Inferred 9,812 $146.57 0.91 0.36 3.5 0.05 0.044 196 112 1,113
Total Varies
as Above
Meas + Ind 47,806 $139.48 0.89 0.34 3.2 0.08 0.070 940 530 4,969
Inferred 16,865 $116.48 0.76 0.26 2.7 0.06 0.046 281 142 1,467
Notes to Table 3:
1. The MRE has been completed by Sue Bird of Moose Mountain Technical Services (MMTS).
2. The effective date of the resource is June 10, 2026
3. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices
Guidelines.
4. For the Net Smelter Proceeds (NSP) calculations:
• Metal prices are USD$4.60/lb Cu, USD$3,300/oz Au, USD$40/oz Ag;
• A currency exchange rate of 0.72 US$ per CDN$;
• 97.5% payable Cu, 98% payable Au and 92% payable Ag; and the following inputs:
• Concentrate grade of 38% Cu with a moisture content of 8%;
• Unit deductions of 1gpt Au, 30gpt Ag;
• Offsite costs (refining, transport and insurance) of US$200/dmt;
• Treatment for Cu Charges of USD$35, Refining Charges of USD$0.035/lb payable Cu, USD$5.00/oz Au and
USD$0.50/oz Ag;