Blue Moon outlines 1% copper mine in Norway

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 65 million lb. copper alongside 5,000 oz. gold and 700,000 oz. silver. 

Under the base-case scenario, including long-term price assumptions of $4.78 per lb. copper, $3,515 an oz. gold and $45.26 an oz. silver, the project has an after-tax net present value of $235 million at an 8% discount rate, 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 completion of this feasibility study . . . reaffirms the strength and value of this asset and resource,” CEO Christian Kargl-Simard said in a press release. “Through our ongoing exploration efforts at Nussir, including 200-metre step out holes at over 1-km depth, we believe this will be a generational copper mine, so we believe these results are just the beginning.”

1% copper

Shares of Blue Moon Metals rose 2.1% to $11.04 apiece by mid-afternoon Thursday in Toronto for a market capitalization of $977 million.

The project hosts 28.72 million measured and indicated tonnes grading 1.02% copper, 0.12 grams gold per tonne and 12.3 grams silver, for a 1.2% copper-equivalent grade, according to the feasibility study.

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 half of the inferred resources would result in a 52% increase to the calculated NPV, the company estimates.

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

Late 2027 output

The study 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.

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 historical mine that was in production during the 1970s, with mining occurring from four shear-hosted open pits until operations halted in 1979.