Magna Mining to Initiate a Pre-Feasibility Study on the Crean Hill Nickel-Copper-Precious Metals Project in Sudbury, Ontario

On December 16, 2025, Magna Mining announced it has engaged Technica Mining Inc. to complete a Pre-Feasibility Study (PFS) for its 100%-owned Crean Hill Project in Sudbury, Ontario. The PFS is scheduled to commence in January 2026 and is expected to be completed in Q3 2026.

This study will advance the project from the September 2024 Preliminary Economic Assessment (PEA), which outlined a 13-year mine life with low pre-production capital and a high internal rate of return. The PFS will incorporate results from a 20,000-tonne bulk sample program and recent engineering work for grid power connection and a dewatering system.

CEO Jason Jessup noted that the Crean Hill PFS will be advanced in parallel with the PEA study on the company's Levack Mine, reinforcing Magna's strategy to become a multi-mine producer in the Sudbury Basin.

The initiation of a PFS for the Crean Hill Project is a logical and positive step in the de-risking and development cycle of a mining asset. It demonstrates that management is executing on its stated strategy to build a pipeline of projects and become a multi-mine operator. However, this news is routine for a company at this stage and its positive impact is significantly tempered by the broader operational context.

Reviewing the company's progression through 2025 reveals a transformational but challenging year. Magna became a producer in February by acquiring a large portfolio of Sudbury assets from KGHM, including the producing McCreedy West mine and the past-producing Levack mine. The company successfully raised significant capital through a $33.5 million financing in March and a larger $50 million financing at $2.40 per share in September, leaving it with a strong cash position of $63.1 million as of September 30, 2025.

Despite these strategic successes, operational performance at the company's sole revenue-generating asset, McCreedy West, is a major concern. Financial results for Q2 and particularly Q3 2025 revealed substantial operating losses and significant free cash flow burn ($14.35 million in Q3 alone). All-In Sustaining Costs (AISC) in Q3 were an alarmingly high US$6.54 per copper equivalent pound. Management has attributed this to necessary investments in underground development to access higher-grade stopes, with improvements guided for Q4 2025 and beyond.

While the news on advancing Crean Hill is positive for the long-term pipeline, it does not address the immediate and critical issue of unsustainable cash burn at the company's producing mine. The market's focus must remain on whether management can deliver on its promise to drastically reduce costs and generate positive cash flow from McCreedy West. Until that operational turnaround is proven, positive news from development assets will have a muted impact. The announcement serves to advance the portfolio but does not alter the fundamental short-term risk profile of the company.

Magna Mining Inc. is a Canadian mining company focused on nickel, copper, and precious metal properties in the Sudbury Basin of Ontario, a globally significant mining district. In 2025, the company transformed from a developer into a producer through the acquisition of a portfolio of assets from KGHM International.

The company's portfolio includes: - McCreedy West Mine: A currently producing copper-nickel-PGM mine. It is the company's only source of revenue. - Levack Mine: A past-producing, high-grade nickel-copper-PGM mine with a recently announced initial mineral resource estimate. It is being advanced towards a restart decision with a PEA underway. - Crean Hill Project: A past-producing nickel-copper-PGM project with a 2024 PEA and a newly initiated PFS. - Shakespeare Project: A permitted, past-producing open-pit nickel-copper-PGM project. The company's strategy is to become a multi-mine producer by restarting its portfolio of past-producing assets while optimizing current production at McCreedy West.