Morning Briefing: Magna Mining Publish Levack PEA and Give Approval for Restart

Good morning and welcome back to the Mining Stock Daily morning briefing. I am Trevor Hall. 

It's Thursday, October 8th.

Gold is finding some footing this morning at $4,122 an ounce, up a quarter of a percent after sliding to a two-month low yesterday. Silver continues weaker, down nearly 2% to $58.75 an ounce. Copper is also easing slightly at $6.58 a pound.

That sell-off in gold yesterday brought the price to $4,113 an ounce, its lowest level since early August, as a strengthening U.S. dollar and 10-year Treasury yields at multi-decade highs weighed on the metal. Markets are now pricing in an 85% chance of a December rate hike from the Federal Reserve, and Fed officials this week signaled further tightening may still be needed. The one structural counterweight: China's central bank continued buying in September, its 23rd consecutive month of additions.

Meanwhile, Newmont CEO Natascha Viljoen offered the gold industry some pointed advice at a mining conference in Johannesburg this week. Viljoen warned that the margins available at current prices are exactly the environment where producers tend to make bad capital decisions. Her message was to the point: the biggest mistake the industry can make right now is losing discipline.

We will get to the news from the miners and explorers in a moment, but first a mention of today's sponsor:

Today's episode of Mining Stock Daily is brought to you by…Revival Gold.

Revival Gold is one of the largest pure gold mine developer operating in the United States. The Company is advancing the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho. Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. Learn more about the company at revival-dash-gold.com

Here's what you need to know today.

The lead story today is out of Sudbury. Magna Mining has released a Preliminary Economic Assessment for the restart of the Levack Mine in the Sudbury Basin of Ontario, and its Board of Directors has formally approved the restart plan. The base-case PEA outlines 7.3 years of commercial production at an average of 36.8 million payable copper-equivalent pounds per year, all-in sustaining costs of US3.71 per pound,and an after-tax NPV at a 7% discount rate of C227 million, with a 92.4% IRR and payback of 0.6 years. At September 2026 spot prices, those numbers climb to C   313.6 million NPV and a 115.8% IRR.Initial capital is estimated at C70.1 million, but pre-commercial production cash flows and tax credits reduce the net funding requirement to approximately C$8.6 million. Commercial production is targeted for mid-2028. The Levack Mine last operated in 2018 and shares infrastructure with Magna's currently producing McCreedy West Mine. Magna Mining trades on the Toronto Stock Exchange as NICU and on the OTCQX as MGMNF. NEWS RELEASE

Hot Chili is continuing to build out its La Verde copper-gold porphyry discovery on Chile's coastal range, with three new results reinforcing the scale and continuity of the near-surface higher-grade zone ahead of a maiden Mineral Resource Estimate targeted for later this year. Hole DKP075 returned 188 metres at 0.56% copper-equivalent from 24 metres depth; DKP078 delivered 240 metres at 0.43% copper-equivalent from 36 metres, including 54 metres at 0.60%; and DKP067 returned 112 metres at 0.47% copper-equivalent from 42 metres, including 26 metres at 0.70%. Twenty-five holes remain pending assay. Integration of La Verde into a revised Pre-Feasibility Study for the Costa Fuego copper-gold project is expected to materially improve that project's economics, with an Environmental Impact Assessment submission targeted for Q2 2027. Hot Chili trades on the TSX Venture Exchange as HCH and on the OTCQX as HHLKF. NEWS RELEASE

Arras Minerals has released results from its Beskauga project in Kazakhstan that point to two distinct styles of mineralization on the same land package. At the Berezski Central porphyry target, the company has intersected 574 metres at 0.40% copper-equivalent, one of the longest intersections in the company's history and consistent with the bulk-tonnage character of that system. In the same release, a separate new epithermal target returned 22.8 metres at 5.37 grams per tonne gold, introducing a high-grade gold system on the property that will require its own follow-up program. The combination of a large copper-equivalent porphyry and a high-grade gold epithermal in proximity is a meaningful discovery signal for the broader district. Arras Minerals trades on the TSX Venture Exchange as ARK. NEWS RELEASE

Koryx Copper has published an interim update on the Haib Copper Pre-Feasibility Study in southern Namibia, confirming all workstreams remain on track for publication before the end of November. The biggest process change is the elimination of the heap leach component from the PFS base case, with all production now flowing through a milling and flotation circuit processing 48 million tonnes per year. Coarse particle flotation is being applied to reject approximately 12 million tonnes of low-grade gangue before the main flotation circuit, improving feed grades and reducing energy. Power and water infrastructure agreements are in place with NamPower and NamWater respectively. Environmental clearance applications were filed in August and September, with a decision expected before the end of 2027. Koryx Copper trades on the TSX Venture Exchange as KRY and on the OTCQX as KRYXF. NEWS RELEASE

K2 Gold has extended the Dragonfly gold target at its Mojave Project in Inyo County, California by 480 metres to the south, with new rock samples grading up to 10.9 grams per tonne gold confirming continuous high-grade gold over a total confirmed strike of 1,000 metres within the 6.5-kilometre Eastside Gold Trend. At the Flores target 1.6 kilometres to the east, rock chips returned values up to 28.8 grams per tonne gold across an 800-metre east-west trend that hosts some of the highest-grade surface samples on the property. A separate area called Stega returned a remarkable 24.8% copper rock assay. Meanwhile, K2's 14,000-metre drill campaign at the Eastside Gold Trend has 7,600 metres in 39 holes completed and continues. K2 Gold trades on the TSX Venture Exchange as KTO and on the OTCQX as KTGDF. NEWS RELEASE

Alaska Silver has wrapped its 2026 drill season at the Illinois Creek Project in western Alaska, completing 9,496 metres across two drill rigs in 84 days, six days ahead of the original 90-day schedule and well above the initial 6,000-metre plan. After the original target was hit in just 54 days, the company raised C$7.6 million and expanded the program to 9,000 metres; the crews exceeded even that. Average drill production came in at nearly 113 metres per day, more than double the planned rate, and the season included the deepest hole in the project's history at 1,288 metres. Zero lost-time incidents, zero reportable safety incidents, zero rig downtime for the full season. Assay results from 39 drill holes are pending. Alaska Silver trades on the TSX Venture Exchange as WAM and on the OTCQX as WAMFF. NEWS RELEASE

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That's it for today everyone. Have a great day. Stay safe.