Magna Mining Inc. received the results of a Preliminary Economic Assessment (PEA) for the restart of the fully permitted Levack mine, a brownfield redevelopment of the past-producing nickel-copper-precious metals mine that last operated in 2018, located in the Sudbury Basin, Ontario, Canada. Based on the results of the PEA, which was prepared by AGP Mining Consultants Inc. with the assistance of Magna’s Projects team, the company’s board of directors approved a restart of the Levack mine, with underground development and surface construction activities expected to ramp up significantly over the coming months.
The Levack PEA revealed a solid production profile and short time frame to commercial production, contemplating underground mining of 5.75 million short tons with 7.3 years of commercial production and average annual payable copper equivalent (CuEq) production of 36.8 million lb, with commercial production anticipated in mid-2028. The mine plan assumes go-forward capital spending begins on January 1, 2027, and ramps up over the first two years of production. Assuming base case commodity prices, the Levack PEA estimates payback in 0.6 years and shows that incorporation of the Productivity Mega Deduction (PMD) could reduce the estimated federal taxes payable over the life of mine.
“The PEA demonstrates Levack mine’s potential as a low capital cost, high IRR project with a clear pathway to a rapid ramp-up to commercial production. The low capital intensity reflects the significant capital previously invested in the mine, as well as the current state of its existing infrastructure,” said Jason Jessup, CEO of Magna. “The mine plan outlined in the study prioritizes higher-grade copper-precious metal footwall zones early in the mine life, generating meaningful pre-production revenue and supporting a strong IRR. The Levack team embodies Magna’s core value of the Relentless Pursuit of Excellence, and I am confident we will continue to optimize the mine plan while incorporating new mineralized zones, including the R2 Zone, with the objective of extending mine life and further enhancing project economics.”
The restart work will include rehabilitating and recommissioning existing underground infrastructure and equipment, advancing the refurbishment of the production hoist and loading pocket, as well as establishing underground access and exploration platforms.
Magna said it has not based its restart decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and, as a result, there may be increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. The company further cautioned that the PEA is preliminary in nature, and that there is no certainty that the PEA will be realized.
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