Foran’s McIlvenna Bay zinc-copper project could produce ‘in Q2 next year’

Foran Mining’s (TSX: FOM) construction progress at its McIlvenna Bay zinc-copper project in Saskatchewan is putting it on track to start commercial production by the middle of next year’s second quarter, analysts said after a recent site tour.The tour, joined by provincial Premier Scott Moe and other government representatives, came just days after Foran released an update on construction at McIlvenna Bay, where the build is about 56% finished.“The tour underscored McIlvenna Bay as a project of national importance, and highlighted the significant state of construction, operational readiness, scale potential underpinned by [the project’s Tesla zone], and further exploration upside,” BMO Capital Markets analyst Rene Cartier said in a note on Thursday. He upgraded Foran shares to Outperform and raised the target price to C$4.50 apiece from his previous target of C$3.75.Foran shares dropped 0.5% to C$3.63 each mid-Thursday in Toronto, for a market capitalization of C$1.87 billion. The stock has traded in a 12-month range of C$2.47 to C$4.69.Federal fast trackEarlier this month, Prime Minister Mark Carney included the feasibility-stage McIlvenna Bay on a fast-track list for projects of national significance under the Major Projects Office. Foran has also drawn the interest of Agnico Eagle Mines (TSX, NYSE: AEM), which in May increased its stake in the company to 13.5% by investing C$90 million, as well as a C$350 million private placement that included C$156 million from the federally owned Canada Growth Fund.Foran Mining secures C$70M in Saskatchewan tax creditsMcIlvenna Bay represents the largest undeveloped volcanic-hosted massive sulphide deposit in the region and is located about 690 km north of Regina.In last week’s construction update, Foran noted that underground development advanced about 597 metres in August. More than 100,000 tonnes of ore was stockpiled, for total ore inventory of around 112,000 tonnes.The mine’s tailings area water management pond was also completed, as well as the main process plant building and HVAC installation throughout that plant.‘Aura of calm’“Our takeaway from interactions with the various project team members was an aura of calm alongside a projection of confidence to deliver the project on schedule, and in line with the revised budget,” Cartier said.In the update, Natural Resources Minister Tim Hodgson said the site’s progress shows why the federal government has given McIlvenna Bay fast track status.“With construction moving steadily and production expected next year, this project demonstrates what is possible when industry, Indigenous partners, and government work together,” he said in a release.‘National priority’“As one of the first five projects referred to Canada’s new Major Projects Office, McIlvenna Bay has been recognized as a national priority, demonstrating how a new greenfield mine can move from exploration to production while delivering on commitments to partners, local Indigenous communities, and shareholders,” Foran CEO Dan Myerson said in the release.McIlvenna Bay hosts 39 million indicated tonnes grading 1.2% copper, 2.16% zinc, 0.41 gram gold per tonne and 14 grams silver.Over an 18-year life, the mine will be capable of producing an average of 65 million lb. of copper equivalent annually, according to a 2022 feasibility study. This will include 34.5 million lb. of copper, 58.6 million lb. of zinc, 17,500 oz. of gold and 435,200 oz. of silver.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com