en.Wedoany.com Reported - Selkirk Copper Mines (TSX-V: SCMI) completed 14,000 meters of drilling across 59 holes with four diamond drill rigs in the first month of its Phase 2 drilling program, which began in June 2026, achieving an average of 120 meters per day per rig, an improvement over the Phase 1 efficiency of 94 meters per day. This data provides the first operational metric for measuring the gap between the company's valuation and project progress.
Phase 1, which ran from August 2025 to April 2026, used the same four-rig configuration, drilling a total of 52,288 meters across 175 holes at a rate of 94 meters per day. The number of rigs was consistent between the two phases, and the difference in daily production reflects improved drilling efficiency. The first month of Phase 2 has completed 28% of the 50,000-meter plan.
Phase 2 drilling provides data to support the established study schedule. Engineering work for the feasibility study and Preliminary Economic Assessment (PEA) has been awarded to Hatch Ltd. and SRK Consulting (Canada). These two studies are progressing in parallel with an updated Mineral Resource Estimate (MRE), all targeted for completion by mid-2026. A restart plan is scheduled to be submitted to the Government of Yukon and the Selkirk First Nation in October 2026. The Feasibility Study (FS) and Final Investment Decision (FID) are both targeted for mid-2027, with first production targeted for mid-2028 following a restart of operations.
Updated parameters set by the PEA include a mine life of 12 to 15 years, processing capacity of 4,100 tonnes per day (1.5 million tonnes per year), and annual production of approximately 30,000 tonnes of copper equivalent. Company President and CEO M. Colin Joudrie stated that the PEA will provide the first updated economic data for the project, allowing the market to understand its true potential.
Among designated peers including Foran Mining, Firefly Metals, Trilogy Metals, and Western Copper, Selkirk has the lowest market capitalization, below C$300 million, with an enterprise value of C$228,502,298, but total copper resources of 881 million pounds. The current MRE (effective date April 2025) shows: Indicated resources of 12.588 million tonnes at a grade of 1.20% copper, containing 333.8 million pounds of copper, 186,600 ounces of gold, and 1,728,000 ounces of silver; Inferred resources of 23.658 million tonnes at a grade of 1.05% copper, containing 546.8 million pounds of copper, 294,700 ounces of gold, and 2,968,100 ounces of silver.
The company believes the valuation gap is related to the asset's history. The bankruptcy of the previous operator led to the termination of a precious metals stream valued at over US$250 million and a concentrate offtake agreement. Selkirk believes that removing these burdens will significantly improve future net cash flow and project economics, positioning this project as a cost-effective restart opportunity.
The company completed an initial financing of C$4.5 million and an equity financing of C$40 million in 2025, followed by another equity financing of C$35 million in April 2026. As of December 2025, it reported a cash position of C$28,029,238, a figure predating the April 2026 equity financing. The project timeline requires initiating and securing financing before the mid-2027 FID and before the concentrator plant comes online in Q1 2028.
Two conditions remain pending for the restart path: successful amendments to the quartz mining license, exploration license, and water use license; and discussions with the Government of Yukon regarding groundwater discharge issues, along with related physical conditions and permitting requirements, remain to be resolved.
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