EraNova Metals (TSX-V:NOVA) reports ‘positive’ economics from a preliminary economic assessment (PEA) for its Adanac Molybdenum Project in British Columbia, Canada.
Pre-tax economics outline a net present value (NPV) of C$1.2 billion ($1.22 billion) with a 30.8% internal rate of return (IRR). On an after-tax basis, the project outlines an NPV of $714.4 million, an IRR of 23.5%, and a payback period of 3.4 years.
Located 35km northeast of Atlin, the project outlines a 24-year mine life producing an average 11.4 million pounds of molybdenum annually through a 30,000 tonnes per day processing facility.
Initial capex totals C$953.3 million, with life-of-mine all-in sustaining costs of US$19.79 per pound of molybdenum.
President and CEO Meredith Eades says the PEA confirms that Adanac is a large-scale, long-life primary molybdenum development project with ‘strong’ economics and a clear pathway towards development.
“Adanac is the product of decades of engineering and development work,” Eades says.
“Established road access, a previously issued environmental assessment certificate, and more than C$100 million in historical infrastructure investment provide a more advanced development foundation than is typical of a greenfield project.”
The mine plan relies on conventional open-pit mining across four pushbacks over 22 years of active operations, followed by two years processing low-grade stockpiles.
Active mining maintains a consistent rate of 19 million tonnes (Mt) annually for the first seven years before increasing to 24.7Mt, with an average strip ratio of 0.7:1.
The updated mineral resource estimate supporting the PEA contains 265.8Mt @ 0.078% molybdenum (Mo) in the measured and indicated categories, alongside 19.8Mt @ 0.074% Mo inferred.
The PEA confirms conventional flotation will produce a ‘high-grade’ concentrate for offsite roasting, with testwork indicating recoveries exceeding 90%.
Meanwhile, sensitivity analysis shows project value is driven primarily by molybdenum price changes, followed by operating and capital costs. The study applies a molybdenum price of US$23 ($45.41) per pound based on the 29 July spot price.
Adanac sits within the traditional territory of the Taku River Tlingit First Nation. Infrastructure advantages include road access, proximity to the Atlin community and airport, and access to the Port of Skagway approximately 275km away.
EraNova plans to initiate a Feasibility Study while obtaining updated environmental assessment and development permits.
EraNova Metals is an explorer focused on advancing precious and base metal projects across western Canada.
Write to Paula Fabe at Mining.com.au
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