Magna Mining Reports Results of Crean Hill Pre-Feasibility Study With Construction to Begin in 2027
Magna’s Crean Hill PFS was approved for construction, featuring a 43.4% IRR and C$72.4M net funding.
Magna Mining Inc. (NICU) released the Crean Hill Pre-Feasibility Study and announced that its Board has approved construction, with formal construction expected to start in H1 2027. The PFS outlines a 12-year commercial mine life, 11.36 million short tons of probable reserves, and an average mining rate of approximately 2,400 tons per day. Average annual payable CuEq production is 35.5 million lbs during commercial production, comprising 9.5 million lbs copper, 7.5 million lbs nickel, and 42,000 oz Pt+Pd+Au.
Base-case economics show an after-tax IRR of 43.4%, an after-tax NPV7% of C$251.0 million, a 1.5-year payback, and pre-tax cash flow of approximately C$65.2 million per year. Under a spot-price case, the after-tax IRR is 65.4%, the after-tax NPV7% is C$406.1 million, the payback is 0.8 years, and pre-tax cash flow is approximately C$96.2 million per year. Initial capital is C$127.0 million; refundable tax credits and pre-commercial production operating cash flow reduce net initial funding to C$72.4 million. LOM sustaining capital is C$261.7 million. Operating costs are C$152.62 per ton; cash costs are US$3.10/lb CuEq; and AISC is US$3.55/lb CuEq.
The PMD tax incentive could add C$5.7 million to after-tax NPV7% and lift IRR to 45.5%, but the legislation is not yet enacted. Exploration drilling has restarted at Crean Hill, targeting new footwall copper and precious-metals-rich mineralization. Q3 2026 results will be released after market close on Nov 11, 2026, with a call on Nov 12, 2026.
Magna Mining Inc. (NICU) has secured board approval for the Crean Hill Pre-Feasibility Study (PFS) and construction, marking a significant step in its multi-mine strategy. The PFS offers a more definitive outlook than the 2024 Preliminary Economic Assessment (PEA) and confirms a second development asset. While the market was already aware that a PFS and construction decision were pending, the release provides new details on the project’s economics, capital estimate, reserve base, and funding requirements.
The base-case internal rate of return (IRR) is 43.4%. This figure is not directly comparable to the 2024 PEA’s 129% IRR, as the two studies utilize different price decks, capital scopes, mine plans, and discount rates. The new PFS reflects a larger initial capital number and a lower IRR than the earlier PEA headline. The net initial funding requirement stands at C$72.4 million, which is manageable relative to the C$140 million Alpayana investment, thereby materially reducing financing risk.
Investor sentiment appeared cautious ahead of the release. The stock traded at C$2.75 on Aug 12, 2026, before declining to C$2.16 on Oct 20, 2026, a drop of roughly 21.5%. This performance suggests negative or cautious expectations leading into the PFS announcement. The project advances value and de-risks the pipeline, though execution challenges and metal-price sensitivity remain significant factors.
Magna Mining Inc. (TSX: NICU, OTCQX: MGMNF, FSE: 8YD) is a producing mining company focused on the Sudbury Basin in Ontario, Canada. Its core assets include the producing McCreedy West Mine, the Levack Mine with restart approval, the Crean Hill Project following a completed PFS and construction approval, and exploration properties including Podolsky, Shakespeare, and Kirkwood.
The McCreedy West Mine produces from the 700 Footwall Copper Zone. Probable reserves total 987,000 metric tonnes at 1.59% Cu, 0.32% Ni, 1.15 g/t Pt, 1.23 g/t Pd, 0.32 g/t Au, and 6.65 g/t Ag. The company’s 2026 guidance is 16.0–18.0 million lbs CuEq payable.
At Levack, indicated resources stand at 6.1 Mt at 3.5% CuEq and inferred resources at 5.2 Mt at 3.6% CuEq. A preliminary economic assessment in October 2026 showed an after-tax IRR of 92.4% and an NPV7% of C$227 million, with commercial production targeted for mid-2028.
The Crean Hill project’s preliminary feasibility study indicates a 12-year commercial mine life, producing 35.5 million lbs CuEq per year. The study reports an AISC of US$3.55/lb, an after-tax IRR of 43.4%, and an NPV7% of C$251 million.
The company operates brownfield sites with access to regional infrastructure, including Vale’s Clarabelle mill and Copper Cliff smelter, as well as Glencore facilities. Ore is shipped to third-party mills in Sudbury.