Pivotal Metals (ASX:PVT) reports ‘strong’ economics from its maiden Scoping Study at the Horden Lake Copper-Nickel-Gold-Silver Project in Québec, Canada.
The study delivers a post-tax net present value of $920 million and an internal rate of return of 49% at base-case commodity pricing, rising to $1.34 billion and 63% at spot pricing. Capital payback occurs within 1.3 years from first ore production.
Managing Director Ivan Fairhall says the study establishes Horden Lake as a “high-value copper development project [with] substantial by-product credits”.
“Horden Lake is advancing into a strong copper market,” Fairhall notes.
“The copper market is responding to significant electrification and data-centre demand compounding traditional demand growth, while the supply pipeline remains constrained by projects facing complex environmental, social, infrastructure, and financing hurdles.
“In contrast, Horden Lake is a simple project in a tier one jurisdiction […] it is a strategically important asset with the potential to underpin a next-generation copper company.”
‘Compelling’ economics
The study outlined ‘compelling’ economics for Horden Lake, highlighting it as a strategically important project featuring low-risk development and ‘significant’ upside potential.
Horden Lake targets average annual production of 29,100 tonnes copper equivalent (CuEq) over the first eight years, comprising 19,100 tonnes copper, 2,200 tonnes nickel, 9,600 ounces gold, and 688,000 ounces silver and platinum group metals. Life-of-mine (LOM) production totals 247,000 tonnes CuEq over 10 years.
All-in sustaining costs are estimated at US$1.00 ($1.42) per pound copper net of byproduct credits, with byproducts contributing US$2.58 per pound to the copper-equivalent cost base.
The operation requires pre-production capital of $411 million after tax credits, with total LOM capital of $740 million, including sustaining expenditure.
Capital intensity is estimated at US$14,127 per tonne of copper production, compared to the global average of US$22,359 per tonne.
The mine plan extracts 34 million tonnes (Mt) of ore from a single open pit over 11 years, with a strip ratio of 7.9:1. Higher-grade measured and indicated material is scheduled early to accelerate capital payback, with approximately 86% of revenue during the payback period sourced from higher-confidence resources.
Processing involves conventional crush-grind-float technology producing separate copper and nickel concentrates. Copper concentrate contains 83% of production revenue at an average grade of 24% copper. Nickel concentrate contributes 17% at 10% nickel grade.
The study incorporates 30% of LOM revenue from inferred mineral resources. Pivotal notes that the July 2026 mineral resource estimate for Horden Lake totals 52.4Mt @ 1.05% CuEq for 549,000 tonnes contained metal.
Pivotal says the project’s location within 10km of the James Bay Highway provides direct access to Canadian smelters and rail connections to export ports. The company reports environmental baseline studies are underway, having started with formal talks with Cree stakeholders.
The company has appointed a strategic adviser to assess funding alternatives, targeting more than $400 million in development capital through equity, debt, or project-level transactions.
Fairhall says ‘significant’ upside remains for Horden Lake, noting that the deposit remains open along strike and at depth. Electromagnetic surveys have identified conductive horizons indicating extension potential, and only eight drill holes have tested the mineralised contact below 300m vertical depth.
He adds that the study marks a milestone for Pivotal.
“Horden Lake stands as a simple, low-cost copper project with robust returns […] at a time when the market needs new supply.
“We see huge potential to compound the strategic value of the project both with the drill bit, and by advancing [it] towards a development decision.”
Pivotal Metals is an explorer and developer of critical mineral projects.
Write to Paula Fabe at Mining.com.au
Main image: Pivotal Metals
