Blue Moon Metals Announces Investment Decision for the Development of Its Nussir Project

Key Concepts

• Nucia Project: An underground mining project in Northern Norway.
• Springer Mine: A tungsten production facility in Nevada, USA.
• Feasibility Study: A technical and economic assessment of a mining project's viability.
• Tungsten Trioxide ($WO_3$): The primary mineral product targeted at the Springer site.
• Capital Expenditure (CapEx): Funds used by a company to acquire, upgrade, and maintain physical assets.
• Permitting: The regulatory process required to legally operate a mine.

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1. Nucia Project Development (Northern Norway)

Blue Moon Metals has officially reached a Final Investment Decision (FID) to proceed with the construction of the Nucia project.

• Operational Specifications: The project is designed as an underground mine with a nominal capacity of 6,000 tons per day.
• Timeline: Production is scheduled to commence in the third quarter of 2027, with a projected 13-year operating life.
• Financial Strategy: The remaining capital cost of $184 million is secured through three primary channels:
  • Existing cash on hand.
  • Unutilized portions of a $140 million project financing package.
  • Proceeds from a recently closed bought-deal equity financing totaling $156 million CAD.
• Exploration Upside: Recent exploration successes suggest the potential to extend the mine life beyond the initial 13-year estimate provided in the feasibility study.

2. Resumption of the Springer Mine (Nevada, USA)

The board has initiated planning to restart the Springer Mine and Processing Complex, driven by a significant surge in global tungsten prices—rising from $500 to over $3,000 per metric ton in the last seven months.

• Infrastructure Assets: The facility includes:
  • A 1,300 ft deep vertical shaft and underground workings.
  • A mill with a 1,200 tons per day capacity, equipped with rod and ball mills, grinding circuits, and flotation circuits.
  • A decommissioned ammonium circuit (including an autoclave and reagent systems).
• Restart Strategy: The company aims to bring the facility online by Q4 2027. The internal preliminary cost estimate for the restart is $50 million, to be funded by current cash reserves and strategic financing.
• Permitting: The company is actively advancing the permitting process, noting that most existing permits remain valid and water rights are secured.

3. Strategic Expansion and Acquisitions

Blue Moon Metals has expanded its footprint near the Springer Mine through the acquisition of additional mining rights.

• Concession Areas: The acquisition includes historical veins such as the Stank Deposit, the Oberurn deposits, and portions of the Southern deposit.
• Geological Potential: High-grade results have been confirmed in these areas, specifically citing a drill result of 1 meter grading 3.95% tungsten trioxide.

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Synthesis and Conclusion

Blue Moon Metals is currently executing a dual-track growth strategy focused on both base metal production in Norway and the strategic reactivation of tungsten assets in the United States. By leveraging a robust capital structure—supported by recent equity financing and existing credit facilities—the company is positioning itself to capitalize on the favorable price environment for tungsten. With the Nucia project slated for 2027 and the Springer restart targeting a similar timeframe, the company is transitioning from a development-focused entity to a multi-asset producer, with significant exploration upside providing potential for long-term operational longevity.