Blue Moon outlines 13-year mine at Norway copper project

Blue Moon Metals (TSXV: MOON) (NASDAQ: BMM) says a newly feasibility study for its Nussir copper project in northern Norway has confirmed what it calls a “long-life asset with strong economics”.

The study, published on Thursday, outlined a potential 13-year mine operation with average annual production of 19,000 tonnes in copper equivalent (CuEq), including 3,600 oz. of gold and 546,000 oz. of silver.

Under the base-case scenario, including long-term price assumptions of $4.78/lb. copper, $3,515/oz. gold and $45.26/oz. silver, the project has a net present value (after tax, discounted at 8%) of $235 million, with an internal rate of return of 19%. Initial capital expenditures are estimated at $184 million. The total payable metal mix breaks down as 77% copper, 6% gold and 13% silver.

The FS results are based on a current measured and indicated resource of 28.72 million tonnes grading at 1.2% CuEq, inclusive of proven and probable reserves of nearly 25 million tonnes at 0.99% CuEq.

According to Blue Moon, there is potential to expand this resource as the deposit remains open to the west and at depth. Adding 5 years to the mine life utilizing 50% of the inferred resources would result in a 52% increase to the calculated NPV, the company estimates.

It also noted that FS only considers the underground resource of the Nussir deposit and not the Ulveryggen deposit part of the project.

Production in late 2027

The FS provides strong support to make a final investment decision on the project and confirms that the timeline to hot commissioning of the process plant is the third quarter of 2027, the Canadian-based junior said. The start of production is pegged for December 2027.

“The completion of this feasibility study update marks yet another significant milestone for our Nussir project and reaffirms the strength and value of this asset and resource,” CEO Christian Kargl-Simard stated in a press release.

“Through our ongoing exploration efforts at Nussir, including 200-metre step out holes at over 1-kilometre depth, we believe this will be a generational copper mine, so we believe these results are just the beginning,” he added.

Blue Moon acquired the Nussir project in late 2024 as part of its efforts to diversify away from its zinc project in California, focusing on near-production assets. The project is host to a historic mine that was in production during the 1970s, with mining occurring from four shear-hosted open pits until operations halted in 1979.

Shares of Blue Moon Metals inched higher to trade at around C$11.20 apiece, for a market capitalization of C$974 million ($710 million).