en.Wedoany.com Reported - Selkirk Copper Mines Inc. (TSXV:SCMI) is advancing the restart of a previously producing copper-gold-silver mine, a project President and CEO Colin Joudrie describes as a "restart story." Compared to greenfield projects, restarts can reduce technical and infrastructure risks by leveraging existing physical plant, geological knowledge, and operational history. In a recent interview, Joudrie discussed results from the company's first drilling campaign since acquiring the asset, and detailed the path to an updated economic study, as well as financing and permitting strategies designed to differentiate it from the asset's previous operator.
The asset comes with surface resources including a processing plant, camp facilities, and established site infrastructure. Many of the capital and engineering risks associated with new mine construction—such as designing flotation circuits, building roads and power facilities, or procuring long-lead items like transformers—have been addressed by the previous operator. Current engineering work focuses on incremental additions, such as a new tertiary crusher, rather than building core processing infrastructure from scratch. The company also benefits from a substantial historical geotechnical and metallurgical database, which management says reduces the scope of work typically required to advance from a Preliminary Economic Assessment (PEA) to a feasibility stage.
The Phase 1 drilling program, completed over the winter, comprised 175 holes aimed at testing the presence, scale, and extent of approximately 66 mineralized lenses across the system. Management described the results as strong validation of their geological targeting approach. Joudrie stated that 87% of the 175 completed holes encountered economic-grade mineralization, with the remaining 13% still providing useful geological information. The program also demonstrated operational efficiency, with the drilling team averaging 94 meters per drill rig per day under winter conditions, which Joudrie believes supports the company's ability to operate safely and cost-effectively year-round.
In addition to confirming existing resources, the program identified two previously unknown mineralized lenses, designated 117 and 301. The 301 lens is shallow, near an existing mine adit at a depth of approximately 100 meters; the 117 lens is deeper, adjacent to the northern end of the existing Copper Keel underground stope. Both are considered early-stage discoveries and are not guaranteed for inclusion in the initial mine plan. The company's broader sequencing strategy calls for a combined open-pit and underground operation, with approximately 50% of mill feed coming from the open pit and the remainder from underground. Management expects this balance to remain consistent for the first seven to eight years of operations, before gradually shifting toward a greater underground contribution over the mine's anticipated 12- to 15-year life.
With Phase 1 drilling complete, results are being incorporated into an updated mineral resource estimate. Selkirk is currently conducting a second drilling program of approximately 50,000 meters, which began in May 2026. This phase is designed for infill drilling to convert inferred and indicated resources into measured and indicated resources, and involves geotechnical work on underground structures, hydrological conditions, open-pit slope angles, the new Minto North portal design, and waste rock and tailings disposal. The program is ahead of schedule, now expected to be completed in early September 2026, approximately one and a half months earlier than planned, with assay results anticipated in October or November. This data will directly feed into a feasibility study expected to begin in late August or early September 2026 and be completed by mid-2027, laying the groundwork for a final restart investment decision. The company expects to release an updated Preliminary Economic Assessment (PEA) and Mineral Resource Estimate (MRE) in July 2026.
Alongside resource and permitting work, Selkirk has engaged engineering firms Hatch and SRK Consulting for technical studies. Management says these studies already include vendor quotes for certain equipment, a complete owner's team roster covering personnel rotation, and clear visibility on power and energy costs. On the production side, the company's current base case targets processing 4,100 tonnes of ore per day, or approximately 1.5 million tonnes per year, producing concentrate containing roughly 30,000 tonnes of copper-equivalent metal annually. This is expected to break down to approximately 18,000 to 22,000 tonnes of copper, 25,000 ounces of gold, and 250,000 ounces of silver per year on average, with management targeting operating costs in the middle of the industry cost curve, equivalent to approximately $3.00 per pound of copper (net of by-product credits). These figures are based on planning prices of $4.60 per pound of copper, $3,300 per ounce of gold, and $40 per ounce of silver, and are expected to be refined as the feasibility study progresses.
Joudrie outlined several potential and primarily non-dilutive financing pathways. The first is an offtake agreement, supported by high-quality concentrate that historically averaged 39% copper with low deleterious element content, which has found buyers in multiple markets, historically including Japan. The second is traditional and tailored project financing, which management believes could be advanced three to four months ahead of a restart date, contingent on demonstrating permitting certainty. Given that silver represents a smaller share of projected revenue at approximately 2%, and the asset has meaningful gold and silver by-product credits, the company is also considering a silver-only stream agreement but is less inclined toward broader precious metals streams. Depending on market conditions, convertible debt and other debt-like instruments were also mentioned as further options.
The asset was previously operated by another company which, according to Joudrie, over-leveraged the project and made mine planning and permitting assumptions that ultimately proved problematic. Selkirk's approach differs in two ways: first, by developing a comprehensive mine plan supporting the entire 12- to 15-year mine life, rather than early prioritization of high-grade material followed by life extension; and second, by conducting a thorough review and revision of existing permits before any restart decision, rather than assuming post-production permitting flexibility. Joudrie stated that the asset itself is good, but the previous operator made some mistakes. He also noted that market conditions have changed significantly since the asset was last permitted, with both metal prices and industry sentiment toward critical minerals having shifted markedly.
Selkirk's restart is unfolding in a macro environment distinctly different from when the asset was last in operation. Management notes that metal prices are roughly double what they were in May 2023, and "critical minerals" have become a more prominent theme for industry participants and capital providers. This shift is particularly important for restart projects: higher prices improve project economics and financing conditions, while increased policy and investor focus on domestic or regionally sourced copper, gold, and silver supply can support offtake and project financing discussions. Management is careful to frame these conditions as favorable tailwinds, rather than substitutes for disciplined mine planning and permitting.
Selkirk Copper Mines Inc. is advancing the restart of an existing copper-gold-silver mine, targeting mid-2028 production. Phase 1 drilling confirmed strong resource continuity and identified two new mineralized lenses, supporting a 12- to 15-year combined open-pit and underground mine plan target. An updated Preliminary Economic Assessment (PEA) and Mineral Resource Estimate (MRE) are due in July 2026, followed by a feasibility study from late 2026 to mid-2027. Financing is expected to leverage offtake agreements, project financing, and selective stream or debt instruments, with management emphasizing a more conservative mine sequencing and permitting strategy than the asset's previous operator.
