EraNova Metals Inc. has released a Preliminary Economic Assessment (PEA) for its 100%-owned Adanac Molybdenum Project in British Columbia, detailing a 24-year open-pit mining operation. The study estimates an initial capital expenditure of C$953.3 million to support a 30,000-tonne-per-day processing facility, targeting an average annual production of 11.4 million pounds of molybdenum.

Under base-case assumptions—using a molybdenum price of US$25.00 per pound—the project generates an after-tax net present value (NPV) of C$714.7 million at an 8% discount rate, with an after-tax internal rate of return (IRR) of 23.5%. At current spot prices of US$31.91 per pound, the after-tax NPV rises to C$1.29 billion, with an IRR of 30.2%.

The PEA plan relies on an updated mineral resource estimate, with 93% of the life-of-mine mill feed classified as Measured and Indicated. All-in sustaining costs (AISC) for the operation are estimated at US$19.79 per pound of molybdenum.

“This PEA confirms what we have long believed the Adanac Project was capable of—a large-scale, long-life primary molybdenum development project with strong economics and a clear pathway toward development. Adanac is the product of decades of engineering and development work. Established road access, a previously issued Environmental Assessment Certificate and more than C$100 million in historical infrastructure investment provide a more advanced development foundation than is typical of a greenfield project.”

— Meredith Eades, President and CEO of EraNova Metals

With the PEA completed, EraNova intends to initiate a Feasibility Study to further refine capital and operating cost estimates. The company is also moving to advance the environmental assessment process and secure the regulatory permits necessary for future project development. Future engineering work will likely include a targeted 3,000-metre drilling program focused on geotechnical and metallurgical data collection.

Read the full announcement: EraNova Announces Positive Preliminary Economic Assessment for the Adanac Molybdenum Project: After-Tax NPV of $714.4 Million and 23.5% IRR