Overview
Blue Moon, USA
The Company is focused on the advanced stage 100% owned Blue Moon zinc-copper-zinc-gold-silver project. The brownfield project is located in Mariposa County, east central California, and has access to roads and hydro power. Its attractive economics compare well with other zinc-copper development projects globally across valuation metrics, including cash cost, IRR and capital cost.1 Commencement of construction of a portal and decline is planned for Q3-Q4 2025.
Existing high capacity power lines connected to fully renewable grid
Start of portal development expected in Q3-Q4 20252 and construction of the underground exploration ramp is part of a 2-year fast track feasibility study program.
March 2025 PEA highlights robust base-case economics: 38% IRR, 2.4-year payback; underground mining at 1,800 tonnes per day 1
Studying potential of “Direct Shipping Ore” (DSO) option for processing ore in a mill located in another western U.S. state
The Blue Moon NI 43-101 Mineral Resource estimate has approximately 3.65 million tons with a grade of 13.46% zinc equivalent for approximately 436 million pounds of zinc, 54 million pounds of copper, 0.2 million ounces of gold and 5 million ounces of silver in the Indicated category and 4.43 million tons with a grade of 12.12% zinc equivalent for approximately 477 million pounds of zinc, 48 million pounds of copper, 0.2 million ounces of gold and 6 million ounces of silver in the Inferred category. The resource is open at depth and along strike and has favourable metallurgy. A long section of the 2018 drill program can be found here. The Company plans to advance the project to feasibility and permitting.
Location/Access
The Blue Moon Deposit is located in east central California within Mariposa County in the Foothills. The property is accessible by gravel roads off nearby paved highway. There are active mines in the region and was part of the original California gold rush.
Infrastructure
The main transmission lines and a hydroelectric power generation facility are both within one mile of the property. Sea ports, rail and trucking routes are all accessible. It is a three-hour drive to the Oakland port and a 4-hour drive to Reno, Nevada.
History
Mining by Hecla Mining Company during 1943-1945 produced 55,656 tons grading 12.3% zinc, 0.36% copper, 0.48% lead, 3.75 oz/ton silver and 0.062 oz/ton gold. The property was actively explored and advanced by Imperial Metals, Boliden and Lac Minerals (now Barrick) in the 1980s and 1990s.
Resource
Review, verification and analysis of the historical data has provided a NI 43-101 compliant resource estimate of the polymetallic massive sulphide deposit at its Blue Moon project. The technical report was co-authored by Scott Wilson and Thomas Henricksen. The resource estimate estimated by Scott Wilson at Blue Moon has been classified as indicated and inferred.
For resource calculation purposes, it has been assumed that the Blue Moon Deposit would likely be mined by underground methods. The results of the resource estimate are as follows:
NI 43-101 Mineral Resource Estimate(*):
Blue Moon Indicated and Inferred Mineral Resources:
| Cutoff | Tons > | Grade > Cutoff | Contained Metal (Millions) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Category | ZnEq | Cutoff | Zn | Cu | Ag | Au | Pb | ZnEq | lbs | lbs | lbs | ozs | ozs |
| % | (Mtons) | % | % | oz/t | oz/t | % | % | Zn | Cu | Pb | Ag | Au | |
| Indicated | 2.9 | 3.650 | 5.97 | 0.73 | 1.49 | 0.04 | 0.23 | 13.46 | 435.83 | 53.59 | 16.90 | 5.43 | 0.16 |
| Inferred | 2.9 | 4.428 | 5.39 | 0.54 | 1.41 | 0.04 | 0.30 | 12.12 | 477.22 | 47.97 | 26.68 | 6.25 | 0.19 |
Exploration Upside
Remodelling of the deposit using the digitized data shows the deposit is open both to depth and to the south. The potential to expand the current resources is considered excellent.
Metal Prices and Estimated Recoveries (Metallurgy)
As the Blue Moon is a multi-variable deposit with all variables contributing to the economic value a method of combining the grades into one variable was required. The parameters used were as follows:
Zinc – $1.25/pound – 95.3% Recovery
Copper – $4.25/pound – 93.1% Recovery
Lead – $0.90/pound – 0% Recovery
Silver – $27.00/ounce – 94.3% Recovery
Gold – $2,200.00 /ounce – 86.2% Recovery
The zinc equivalent equation is as follows:
ZnEq = Zn% + ((Cu%*78.20) + (Pb%*0) + (Ag(oz/t)*25.46) + (Au(oz/t)*1,896.40))/ 23.83
Table 1: PEA Results Summary
| PEA Base Case | -10% Pricing | +10% Pricing | Long-term Consensus Price Forecast | Spot Prices (Feb. 2025 avg) | ||
|---|---|---|---|---|---|---|
| After-Tax NPV ($M, 8% discount rate) | $244 | $163 | $324 | $260 | $340 | |
| After-Tax IRR (%) | 38% | 29% | 46% | 39% | 48% | |
| First 6 Years of After-Tax Cashflow ($М) | $367 | $293 | $442 | $382 | $458 | |
| Payback Period (years) | 2.4 | 2.9 | 2.0 | 2.3 | 1.9 | |
| C1 Cost ($/lb ZnEq) | $0.60 | $0.60 | $0.61 | $0.60 | $0.55 | |
| LOM Average Head Grade (ZnEq %) | 12.55 | 12.66 | 12.47 | 12.72 | 13.83 | |
| Nominal processing capacity (tonnes per day) | 1,800 | |||||
| Initial Capital Cost ($M) | $144.5 | |||||
| Sustaining Capital Cost ($M) | $64.5 | |||||
| Life of Mine (“LOM”) Capital Cost ($М) | $209.0 | |||||
| Average annual payable production (LOM) | Copper | 7,237 000’lbs | ||||
| Zinc | 62,260 000’lbs | |||||
| Gold | 22,566 oz | |||||
| Silver | 681,784 oz | |||||
| ZnEq | 151,046 000’lbs | |||||
| Metal prices assumed | Copper $/Ib | 4.20 | 3.78 | 4.62 | 4.75 | 4.23 |
| Zinc S/Ib | 1.25 | 1.13 | 1.38 | 1.26 | 1.27 | |
| Gold $/oz | 2,200 | 1,980 | 2,420 | 2,181 | 2,895 | |
| Silver $/oz | 27.0 | 2 4.3 | 29.7 | 26.16 | 32.18 | |
Recoveries used in the calculation are based on metallurgical testing of drill core undertaken by Lakefield Research (now SGS) on samples of mineralization.
The NI 43-101 report was co-authored by Scott Wilson, CPG, Richard Gowans, P. En g, Peter Szkilnyk, P. Eng, Abel Obeso Munz, P. Eng, Peter Stevens, C. Geol, Becky Humphrey, CEnv, Christiopher Jacons, CEng, who are Qualified Persons as defined by NI-43-101 and are responsible for the technical material related to the NI 43-101.
Dustin Small, P.Eng, a non-independent qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis of the information presented on this page.
Cautionary Statement on Forward-Looking Statements
Information set forth in this summary contains forward-looking statements that are based on assumptions as of the date of this summary. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to each of the Company’s limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Blue Moon undertakes no obligation to publicly update or revise forward-looking information.
- See News Release: Blue Moon Announces Robust Results of the Preliminary Economic Assessment for its Blue Moon VMS Deposit Including an After-Tax Base Case IRR of 38% and 48% Using Spot Prices, March 3, 2025.
- See News Release: “Blue Moon Awards Mining Contract for the Construction of the Portal and Exploration Decline for its Blue Moon Mine in Mariposa County, California,” June 26, 2025.