Commodities
Home›Commodities›Mining›Magna Mining approves C$70 million restart of Levack n…
Magna Mining approves C$70 million restart of Levack nickel project
Magna said the restart targets commercial production by mid-2028 and set a $227 million after-tax valuation for Levack in a preliminary economic assessment.
Magna Mining has approved a C$70 million restart of its Levack nickel-copper mine near Sudbury, Ontario, with the aim of reaching commercial production by mid-2028, according to Mining.com.
The outlet said a preliminary economic assessment values Levack, about 400 km north of Toronto, at $227 million after tax using a 7% discount rate. That figure is below a Desjardins analyst estimate of $497 million at comparable metal prices, though the analyst cited a stronger production plan for the mine’s contact nickel zones.
Mining.com also reported that Levack is expected to expand Magna’s multi-mine strategy by joining the company’s producing McCreedy West mine using Sudbury’s existing infrastructure. The restart decision comes even though the approval was made without a feasibility study or mineral reserves demonstrating economic viability, the outlet added.
In a note highlighted by Mining.com, the analyst said the contact zone plan is stronger than modeled, while the preliminary assessment excludes R2, a copper and precious-metals discovery that has not yet been included in a resource estimate. The outlet added that Magna’s Toronto-listed shares rose 0.4% to C$2.42 on Thursday afternoon.
Latest closeCopper $6.659 ▲2.6%