Update almost triples contained metal at Selkirk Copper’s Minto mine

A resource update for Selkirk Copper Mines’ (TSXV: SCMI; US-OTC: SKRKF) Minto project in Yukon more than doubles contained red metal as the First Nation-owned company prepares to release a feasibility study and eventually restart the mine. Shares rose.

The update outlines 47.8 million measured and indicated tonnes grading 0.89% copper, 0.34 gram gold per tonne and 3.2 grams silver for 940 million lb. copper, 530,000 oz. gold and about 4.8 million oz. silver, Selkirk reported Thursday. Compared with last year’s estimate, contained measured and indicated copper increased 181%, gold 183% and silver 192%, although copper grades declined by roughly one quarter as additional lower-grade tonnes were incorporated into the resource. Minto is about 240 km northwest of Whitehorse.

The measured and indicated increases through Selkirk’s stage one drilling program “demonstrates the significant potential to grow mineable resources within the Minto mine property in a cost-effective and timely manner,” Selkrik CEO M. Colin Joudrie said in a release.

“It supports the overall restart program objectives and strongly suggests that we have the opportunity to further upgrade and enhance the quality of the copper-gold-silver mineralized lenses which have the potential to further improve the quality of our mine plans in the upcoming feasibility study as well as into the future.”

Strong base

The larger measured and indicated resource significantly expands the mineable inventory expected to underpin the feasibility study due in the third quarter, reducing reliance on inferred material and potentially extending mine life at Minto, which Selkirk has said could restart in 2028.

The resource update comes almost two years after Yukon’s Supreme Court approved Selkirk First Nation’s purchase of Minto, a rare case of Indigenous ownership of a mine in Canada. The First Nation became the legal owner of Minto one year ago and now holds an 18.2% stake in the company.

The Minto mine was put up for sale in September 2023 after owner Minto Metals shut it down due to financial difficulties and PricewaterhouseCoopers put the mine into receivership. Minto produced about 500 million lb. copper between 2007 and 2023.

Selkirk Copper shares gained almost 7% to $1.94 apiece on Thursday morning in Toronto, valuing the company at about $259.6 million. The stock has traded in a 12-month range of 42¢ to $2.24.

Inferred decrease

While the resource update converted a large amount of resources into the measured and indicated categories, the contained copper in the inferred category fell by 48% to 281 million lb. grading 0.76% out of 16.9 million tonnes. That includes 142,000 oz. contained gold and 1.5 million oz. silver grading 0.26 gram gold and 2.7 grams silver.

Most of the resources in the update are underground and about 45% are in the open pit.

The update is based on Selkirk’s stage-one drill program as well as historical drilling for a total of 428,388 metres across 1,956 holes.

The stage-two program targets 50,000 metres of drilling, with 37,000 metres already finished. That program is to further upgrade the resources for the upcoming feasibility study.