#None #Norway #Blue Moon #Nussir Project

Blue Moon Unveils Promising Feasibility Study Results for Nussir Project

Blue Moon Metals Inc. has reached a significant milestone with the completion of its feasibility study for the Nussir project, located in the northern region of Norway. This study, prepared by Worley Europe Limited, assessed the economic viability of the project and revealed exciting prospects for both production and profitability.

Project Overview

The feasibility study outlines a long-life mine that is expected to yield a significant average annual free cash flow of approximately $77 million under consensus prices, with the possibility of increasing to around $125 million based on current spot prices. The findings confirm that the Nussir project holds the potential to become a robust asset, operating over a projected mine life of 13 years.

Key findings from the report indicate that the Nussir project contains:

• - Total measured and indicated resources of 28.72 million tonnes with an average copper equivalent (CuEq) grade of 1.20%.
• - Proven and probable reserves estimated at 24.98 million tonnes at 0.99% CuEq.
• - Projected annual copper production of 19,000 tonnes, alongside gold and silver outputs of 3,600 ounces and 546,000 ounces, respectively.
• - All-in sustaining costs estimated at about $2.05 per pound of copper, yielding an impressive cashflow margin of 43% at consensus pricing.

Financial Highlights

A key financial takeaway from the feasibility study is the after-tax Net Present Value (NPV) of $235 million at an 8% discount rate. This considers long-term copper prices of $4.78 per pound. With a remarkable Internal Rate of Return (IRR) of 19%, the project showcases strong economic incentive, especially with the potential for extended mine life through inferred resources.

Besides the economic advantages, the project is well-structured for future investments. Initial capital expenditures are estimated at $184 million, and engineering efforts are already underway, with significant purchases for long-lead equipment completed. The company has also reported spending approximately $46.7 million on the development so far.

Environmental Considerations

Blue Moon is committed to environmental sustainability and has obtained necessary permits required for mining operations in Norway. These permits demonstrate compliance with local regulations and environmental standards, ensuring that the project will uphold ecological integrity while promoting economic growth.

Future Outlook

As the company leads into the next phases of development, a detailed execution plan has been laid out. The target schedule indicates that construction will wrap up by October 2027, with production ramp-up slated for December 2027. This timeline positions the Nussir project as a promising segment of Blue Moon's broader portfolio that includes multiple projects across North America and Europe.

CEO Christian Kargl-Simard expressed optimism about further exploration and defined Nussir as a potential generational copper mine. With a significant cash generation and advantageous local market conditions, expectations continue to be high as Blue Moon progresses toward commercial production.

In conclusion, the feasibility study results for the Nussir project not only highlight its strong economic prospects but also affirm Blue Moon's strategic planning and commitment to responsible mining practices. As the company moves forward, stakeholders and investors alike will be keenly watching for developments in what promises to be a transformative project in the mining sector.