Published: November 6, 2026 |
Magna Mining has completed the results of a preliminary economic assessment (PEA) for the restart of the fully-permitted Levack Mine, located in the North Range of the Sudbury Basin, northeastern Ontario, Canada.
Based on the results of the PEA the company’s board of directors has formally approved the plan to restart the Levack Mine, with underground development and surface construction activities expected to ramp up significantly over the coming months.
“The PEA demonstrates Levack Mine’s potential as a low capital cost, high IRR project with a clear pathway to a rapid ramp-up to commercial production. The low capital intensity reflects the significant capital previously invested in the mine, as well as the current state of its existing infrastructure. The mine plan outlined in the study prioritizes higher-grade copper-precious metal footwall zones early in the mine life, generating meaningful pre-production revenue and supporting a strong IRR,” said Jason Jessup, CEO of Magna.
“The Levack team embodies Magna’s core value of the relentless pursuit of excellence, and I am confident we will continue to optimize the mine plan while incorporating new mineralized zones, including the R2 Zone, with the objective of extending mine life and further enhancing project economics,” added Jessup.
“Given the strong IRR and operating cash flows demonstrated in the PEA, together with Magna’s treasury position, the board of directors has approved the investment to formally restart the Levack Mine. This represents an important next step in Magna’s growth toward becoming a mid-tier producer,” concluded Jessup.
PEA OVERVIEW
The Levack Mine project, located in the North Range of the Sudbury Basin, is a brownfield redevelopment of the past-producing nickel-copper-precious metals (platinum, palladium, gold, silver) Levack Mine which was last operated in 2018. Topics covered in the PEA include the mining design basis, geotechnical design basis, hydrogeology and dewatering, mine access and design, mining method and stope design, development, production schedule, mobile fleet, workforce, ventilation, backfill, material handling, and grade control. The PEA incorporates geological information collected by the company as well as historic information from the previous underground mining operations at Levack.
MINE PLAN AND PRODUCTION SCHEDULE
The Levack PEA mine plan assumes go-forward capital spending begins on January 1, 2027 and ramps up over the first two years of production with commercial production anticipated in mid-2028. At a target commercial production rate of approximately 2,200 short tons per day, the mine plan includes 5.75 million short tons and 7.3 years of commercial production.
CAPITAL AND OPERATING COSTS
The Levack Mine benefits from significant pre-existing surface and underground infrastructure, much of which has been well-maintained since operations ceased in 2018 given Levack Mine provides secondary egress for the company’s adjacent McCreedy West Mine, and more recently for other adjacent underground mining operations. Pre-existing infrastructure as well as capital invested prior to the end of 2026 is treated as sunk capital for the purposes of the PEA.
Estimated initial capital is $49.2 million (C$70.1 million), including $8.8 million (C$12.6 million0 of contingency. The estimate comprises capital expenditure from January 1, 2027 to June 30, 2028, reflecting the timing of equipment financing. Estimated initial capital is presented after equipment financing timing effects. Deferred equipment purchase payments are included in subsequent years. The after-tax cash flow model incorporates the Clean Technology Manufacturing investment tax credits.
MINING, PROCESSING, AND INFRASTRUCTURE
Existing infrastructure at Levack includes the No. 2 production shaft from surface to the 2,900 level, an internal No. 3 shaft connecting the 1,500 Level to the 3,600 level, and an internal ramp from the 1,800 level to the 5,300 level at historic gradients of up to 18 percent. The current Levack ramp standard is 15 ft × 15 ft, which is the design basis for new lateral development in the PEA mine plan.
Long-hole open stoping and cut-and-fill are the two mining methods applied in the Levack PEA, consistent with methods used historically at the operation. Long-hole open stoping is the primary method applied to the Footwall Copper, Morrison, and the majority of the Contact Nickel zones. Cut-and-fill is applied to portions of Footwall Copper zones. Appropriate mining dilution and recoveries were applied to the design stopes depending on mining method used.
Once on surface, mineralized material will be reduced to a topsize of 1.5 inches via a contractor-operated surface crusher comprised of a combination of a jaw crusher and cone crusher and then subsampled via the onsite sampling tower with representative subsamples dispatched to the sample preparation and analytical laboratory. Production lots of approximately 2,000 to 4,000 tons of mineralized material will then be shipped to third party milling facilities located in Sudbury, Ontario.
RESTART DECISION
Based on the results of the PEA the company’s board of directors has formally approved the plan to restart production at the Levack Mine. This work will include rehabilitating and recommissioning existing underground infrastructure and equipment, advancing the refurbishment of the production hoist, and loading pocket as well as establishing underground access and exploration platforms.
Magna Mining is a producing mining company with a strong portfolio of copper, nickel, and precious metals assets located in the world-class Sudbury mining district of Ontario, Canada. The company’s McCreedy West Mine is currently in production and the adjacent Levack Mine is being restarted. These operations are supported by a pipeline of highly prospective past-producing properties including Crean Hill, Podolsky, and Shakespeare. Magna Mining is strategically positioned to unlock long-term shareholder value through continued production, exploration upside, and near-term development opportunities across its asset base.
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