Selkirk Copper Announces Strong Minto Project PEA Results
News related to:Selkirk Copper Mines Inc · 3 min read
Selkirk Copper Mines Inc., a Canadian mining company, has released a Preliminary Economic Assessment (PEA) for its Minto Project, a copper-gold-silver project located in Yukon, Canada. The PEA provides a comprehensive technical and economic assessment of restarting open-pit and underground mining operations, crushing, grinding, and flotation activities, and concentrate production activities. The project's economic results are outlined in the PEA, which provides a potential pathway to developing a longer-life operation with additional copper-gold-silver concentrate production contingent on further exploration success.
The PEA, led by Hatch Ltd. and supported by SRK Consulting (Canada) Inc., Fuse Advisors (Part of SLR), Moose Mountain Technical Services, and Ensero Solutions, highlights strong economic performance across various commodity price scenarios. The PEA forecasts a 13-year mine life at a 4,100 tonnes per day ("tpd") mining-milling rate, producing peak 27,200 tonnes of copper-equivalent1 contained in concentrate or 48,700 tonnes of high-grade copper-gold-silver concentrate at peak production. The PEA projects an NPV7% of C$494 million, a 47.8% internal rate of return ("IRR"), and a 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").
The PEA also projects an NPV7% of C$1,023 million, a 78.2% IRR, and a 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"). Additionally, it projects an NPV7% of C$1,385 million, a 96.3% IRR, and a 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").
The PEA demonstrates a strong Capital Efficiency Ratio2, 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 attributed to the use of existing infrastructure such as roads, barges, power transmission lines, substations, fuel farms, services camps, warehouses, workshops, grinding and milling facilities, water treatment plants, underground development, and general on-site services that are in good working order, requiring negligible capital investment to make operational.
The PEA also includes exploration growth potential beyond the current study, with a Phase 1 52,288-meter drill program completed in April 2026 increasing Measured and Indicated Resources in the 2026 Mineral Resource Estimate ("MRE") by 280%, and increasing contained copper, gold, and silver by 182%, 184%, and 188% respectively above the 2025 Mineral Resource Estimate. The Phase 2 50,000-meter drill program initiated in May 2026 is now 98% complete, with results 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.
The PEA also addresses water management and permitting, with significant attention placed on ensuring all planned development work and operations 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 benefited from input from the Selkirk First Nation. The upcoming amended permit applications do not expect to request or make notable changes to the discharge criteria and requirements currently set for the site, and the assessment of the amended permit applications can proceed in a timely manner 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 PEA also includes a potential for first concentrate production in 2028, with preliminary execution planning, including permitting, underground mine development, and site preparations, supporting the potential to deliver first concentrate production in the second half of 2028 with full ramp-up in mining, milling, and concentrate production by the first half of 2029. Selkirk Copper Mines Inc. 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, but each scope of work has been assessed in the PEA and the company has been well-supported by the Selkirk First Nation, suppliers, service providers, specialist contractors, and by the Yukon Government, which the company expects to continue during the next phase of work.
Selkirk Copper Mines Inc.