A preliminary economic assessment was positive enough for Magna Mining to decide it will reopen Levack Mine in 2028, the company announced this week. The assessment said the mine will be in production for at least 7.3 years, producing an average of 36.8 million pounds of copper every year. Since much of the infrastructure is already in place, Magna estimates that startup costs will be a relatively modest $70.1 million, offset by $5.6 million in tax credits and $55.9 million in existing cash flow, leaving $8.6 million to be raised. As long as commodity prices remain stable, however, the Levack Mine should generate enough revenue in the first six months of production to cover the full cost of restarting. “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,” Magna said in an Oct. 7 news release. Recommissioning, rehabilitating equipment “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.” “The (preliminary economic assessment) demonstrates Levack Mine’s potential as a low capital cost, high IRR (internal rate of return) project with a clear pathway to a rapid ramp-up to commercial production,” Magna CEO Jason Jessop said in the release. “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.” Levack Mine is located in the north range of the Sudbury Basin and was an active mine until 2018. Magna is a producing mining company with copper, nickel, and precious metals assets located in the Sudbury mining district. 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 said.
