A new study from Moon River Moly (TSXV: MOO; US-OTC: MRIVF) raises the estimated value of its Davidson molybdenum-copper-tungsten project in British Columbia by 20% and more than quadruples tungsten output, boosting the case for a proposed underground mine.
Using an 8% discount rate, an updated preliminary economic assessment (PEA) puts Davidson’s after-tax net present value (NPV) at C$1.23 billion ($879 million), up from $1.03 billion in a December 2025 study, Moon River said Thursday. The after-tax internal rate of return (IRR) rises to 33% from 32%, while the estimated payback period falls to 1.5 years from 2.3 years, reflecting a switch from gravity separation to flotation for recovering tungsten, as well as revised capital and operating costs.
The updated PEA “marks another major stepping stone for Moon River as it continues to advance the Davidson project,” Atrium Research mining analyst Ben Pirie said in a note. Davidson’s economics “are highly defensible against even the most bear case for molybdenum, copper, and tungsten prices and strongly support the case for continued advancement.”
20-year life
Initial capital costs are now estimated at C$750.1 million, including C$118.5 million in contingency, to develop a mine processing 10,000 tonnes daily over 20 years. This compares with costs of C$672.3 million, including a C$106.3 million contingency, in the previous study.
Annual production would average 13.27 million lb. of molybdenum, 1.5 million lb. of copper and 1.51 million lb. of tungsten trioxide (WO3), according to the updated PEA. Tungsten output in the 2025 PEA had been estimated at 334,000 lb. per year.
All-in sustaining costs are projected to be $4.36 ($6.10) per lb. of molybdenum, net of copper and tungsten credits, down from $7.65 per lb. in the previous assessment.
The substantial increase in tungsten production, the resulting lowering of all-in costs and the shortening of the base-case payback period make Davidson “much more financeable,” Pirie said.
2027 PFS
Moon River’s financial model assumes long-term molybdenum prices of $23.41 per lb., copper at $4.65 per lb. and WO3 at $43.25 per pound.
If September 2026 average metal prices are used, Davidson’s after-tax NPV jumps to C$3 billion ($2.14 billion) and the IRR to 57%.
Moon River wants to advance Davidson to a pre-feasibility study (PFS) in the first half of 2027, CEO Paul Parisotto said. It has begun baseline environmental studies while working with First Nations to discuss potential impacts and mitigation measures as well as economic opportunities.
Resource upgrade
The new PEA also upgrades tungsten resources from inferred to measured and indicated. Davidson now hosts 80.8 million tonnes in those categories grading 0.182% molybdenum, 0.037% copper and 0.036% WO3, using a 0.22% molybdenum disulphide cut-off.
Located about 9 km northwest of Smithers, Davidson lies within Hudson Bay Mountain. It has more than 2.1 km of existing exploration tunnels. Davidson is about 670 km northwest of Vancouver.
The project remains at the preliminary assessment stage, with no mineral reserves.
2023 deal
Moon River acquired rights to develop the deposit in November 2023 through an agreement originally involving Generation Mining (TSX: GENM; US-OTC: GENMF), Roda Holdings and Donald Davidson. That gave it the opportunity to acquire full ownership.
The proposed operation would use battery-powered underground equipment, an underground processing plant and paste backfill to reduce its surface footprint. Most tailings would be returned underground, with the remainder stored in a dry-stack facility.
Toronto-based Moon River also holds a 25% interest in the nearby Endako molybdenum mine, which is being evaluated for a potential restart after it closed in 2014.
Moon River shares rose 1.5% to C69¢ Friday afternoon in Toronto, valuing the company at about C$26 million ($18.5 million). The stock has traded between C56¢ and C$1.07 in the past year.
