Moon River Moly Announces Robust Updated Preliminary Economic Assessment of Davidson Molybdenum-Copper-Tungsten Critical Minerals Project Demonstrating Improved Economics

Moon River Moly Ltd. (MOO) has released an updated Preliminary Economic Assessment (PEA) for its 100%-owned Davidson molybdenum-copper-tungsten project near Smithers, BC. This technical study update marks the third iteration on the company’s two assets in eleven months.

The updated PEA highlights three primary changes compared to the December 2025 study: an upgrade of the tungsten mineral resource from Inferred to Measured and Indicated categories, revised capital and operating cost estimates, and a change in tungsten recovery methodology from gravity to flotation concentration.

Quantified changes versus the December 23, 2025 PEA, as disclosed by the company, include:

• After-tax NPV (8%): C$1.034bn to C$1.235bn (+19.4%).
• Pre-tax NPV (8%): C$1.747bn to C$2.153bn (+23.2%).
• After-tax IRR: 32% to 33%. Pre-tax IRR: 42% to 44%.
• Payback: 2.3 years to 1.5 years.
• AISC: C$10.03/lb or US$7.65/lb to C$5.93/lb or US$4.36/lb.
• Cash cost: C$5.78/lb (US$4.25/lb) — no comparable prior figure was given in the Dec 2025 summary.
• Pre-production capital: C$672.3m to C$750.1m (+11.6%), including C$118.5m contingency.
• Life-of-mine average operating cost: C$40.99/t to C$50.14/t (+22.3%), equal to C$12.02/lb Mo gross versus C$10.03/lb previously.
• Annual tungsten output: 151.7 t (334,300 lb) WO3 to 686 t (1,513,000 lb) WO3 (+352%, the company's "350%").
• Molybdenum output: 6,020,000 kg (13,270,000 lb) — unchanged.
• Copper output: 679,600 kg (1,498,500 lb) — unchanged.
• Mine life 20 years, 10,000 t/day throughput, 3.65 Mt/year — unchanged.
• LOM direct income and mining taxes: C$2.29bn.

Several key metrics remained unchanged. The M&I resource at a 0.10% MoS2 cut-off is 489,053,000 t grading 0.171% MoS2, 0.102% Cu and 0.027% WO3, which is numerically identical to the December 2025 disclosure. The PEA mine plan utilizes the 0.22% MoS2 shell, comprising 80,756,000 t at 0.304% MoS2, 0.037% Cu, 0.036% WO3. This is diluted to 72,074,709 t at a 0.30% head grade, with 5% dilution at 0.20% MoS2, 94% Mo recovery, 52% Cu recovery and 53% W recovery, and 97% payability. Inferred material (29.1 Mt at 0.150% MoS2) is excluded from the economics.

The base case utilizes long-term prices of US$51.60/kg (US$23.41/lb) Mo, US$10.25/kg (US$4.65/lb) Cu and US$953/MTU (US$43.25/lb) WO3, with a CAD:USD exchange rate of 0.74. These figures are described as three-year trailing averages to September 30, 2026.

An illustrative scenario using September 2026 spot prices (US$33.50/lb Mo, US$6.50/lb Cu, US$3,000/MTU WO3) produces an after-tax NPV of C$3.036bn, an IRR of 57%, a payback of 0.8 years, and a negative AISC of US–$5.00/lb Mo. In this scenario, the tungsten price is approximately 3.1 times the base case.

The project design features underground longhole open stoping with cemented paste backfill, an underground flotation plant producing three concentrates, battery-powered equipment, dry-stack tailings, 37,000 m of pre-production development, and 256 employees. Next steps include baseline environmental studies, First Nations consultation, and a Pre-Feasibility Study targeted for H1 2027. The Technical Report is to be filed on SEDAR+ within 45 days, with the study accuracy stated at ±30%.

Regarding the company's reporting, CEO quotes claim "an over 23% increase in the after-tax NPV." However, the arithmetic supports a +23.2% increase on the pre-tax NPV, while the after-tax increase is +19.4%. The marketing line conflates the two figures.

Moon River Moly Ltd. (MOO) has updated its project economics, driven primarily by a significant upgrade in tungsten production rather than cost reductions. The company announced a switch from gravity to flotation processing, which has resulted in a 350% increase in tungsten production. These changes were pre-signaled in releases on July 16 and July 17, 2026, which announced the engagement of Concentrator Support Ltd. and Cameron Lilly to oversee ongoing tungsten flotation testwork at Base Metallurgical Laboratories Ltd. in Kamloops, B.C. While the resource tonnage, molybdenum output, and copper output remain unchanged from December 2025, the operational costs have risen. Life-of-mine operating cost per tonne increased by 22.3%, rising from C$40.99 to C$50.14/t, and gross operating cost per pound of molybdenum rose from C$10.03/lb to C$12.02/lb.

The headline reduction in All-In Sustaining Costs (AISC) is attributed to by-product credits from the new tungsten stream. Based on released figures, the incremental tungsten stream is valued at approximately US$4.93 per pound of molybdenum produced, calculated as 1,513,000 lb WO3 multiplied by US$43.25, divided by 13,270,000 lb Mo. Copper adds roughly US$0.53/lb, totaling about US$5.46/lb in credits against a US$4.25/lb net cash cost. The previous AISC of C$10.03/lb was effectively equal to the previous gross operating cost per pound, implying the prior study provided little or no net credit for tungsten. Consequently, the project’s economics have improved due to better tungsten assumptions, even though it has become more expensive to build and run.

There have been no changes to the company’s capital structure, market capitalization, or strategic ownership. No takeover, merger, or acquisition has occurred, and no new marquee strategic shareholders, such as Sprott, the Lundin family, Lassonde, or Gentile, have been disclosed. The only strategic holder identified is Generation Mining, which received 9,000,000 shares as property consideration, alongside management and board members.

The improvements in tungsten recoveries, net present value (NPV), and payback period were broadly in line with prior expectations, though the magnitude is modest and partially offset by an 11.6% increase in capital expenditures. Moon River Moly’s track record suggests the studies are likely to hold up on filing, similar to the January 5, 2026 filing of the Endako technical report, which confirmed "no material differences" from the November 21, 2025 release. However, filings do not equate to approvals or funding.

The release did not disclose how the C$750.1m project is to be funded, nor did it provide a construction schedule or permitting timeline for Davidson. There was no mention of Endako earn-out payments beginning May 30, 2027, the going-concern disclosure in the H1 2026 MD&A, or an update on the C$28.6m of restricted cash or the 25% Endako interest, beyond a reference in the Chairman’s statement. Given the project’s claimed 1.5-year payback, the absence of a schedule is notable.

Moon River Moly Ltd. is a Canadian resource company listed on the TSXV (MOO) and OTCQB (MRIVF), focused on the acquisition, exploration, and development of mineral projects in British Columbia. The company currently has no revenue and no producing assets.

Its flagship asset is the Davidson Molybdenum-Copper-Tungsten Project, located approximately 9 km northwest of Smithers, BC. The deposit sits inside Hudson Bay Mountain and does not outcrop. An existing portal on the east side features over 2,100 m of exploration drifting, and an access road is visible from town. Moon River acquired the vending agreement rights from Generation Mining Ltd. on November 15, 2023, following an original agreement dated April 1, 2016, with Roda Holdings Inc. and Mr. Donald Davidson, giving it the right to acquire 100% of the project.

The proposed design calls for an underground mine accessed from the west side of the mountain, out of sight of Smithers. The plan includes longhole open stoping with cemented paste backfill, a throughput of 10,000 t/day (3.65 Mt/yr), and a fully underground flotation plant producing separate Mo, Cu, and W concentrates. The operation would utilize dry-stack tailings and paste backfill to minimize surface footprint, along with battery-powered and automated equipment. Pre-production development is estimated at 37,000 m, with 256 employees at full operation. Stopes are designed to hold approximately 160,000 t each. Recoveries are projected at greater than 94% for Mo, 52% for Cu, and 53% for W.

Moon River also holds a 25% indirect interest in the Endako molybdenum mine, with Centerra Gold holding the remaining 75%. The Endako mine, located approximately 190 km west of Prince George, BC, is currently on care and maintenance and comprises an open pit, concentrator, and roaster. Moon River acquired its 25% indirect stake from Sojitz Corp. on May 30, 2024. A November 21, 2025, Endako restart preliminary economic assessment (PEA) showed a pre-tax net present value (NPV) of C$1.116 billion and an internal rate of return (IRR) of 46%, alongside an after-tax NPV of C$790 million and an IRR of 40%. The project has a 10-year life, a throughput of 75,000 t/day, and produces approximately 20.5 million pounds of Mo per year. Pre-production capital expenditure is estimated at C$493.7 million, with a 2.2-year payback period. The Chairman stated in the release that Endako "could be in production in approximately 24 to 30 months from the time a production decision is made."

The company’s management and board include Ian McDonald as Chairman, who founded Blue Pearl Mining and previously served as Chairman and CEO of Thompson Creek Metals, which operated two of the world's largest molybdenum mines. Paul Parisotto serves as President, CEO, and Director, bringing over 40 years of experience in mining public companies and capital markets, with prior roles at Noront Resources, Arizona Star Resources, Chantrell Ventures, and Calico Resources. Tong Yin serves as CFO and is a CPA formerly with KPMG. Gordon Reid serves as a Director and is the retired COO of Centerra Gold, where he oversaw Thompson Creek's molybdenum assets. Jamie Levy serves as a Director and is the CEO of Generation Mining, the vendor for the Davidson project. Alice Murphy serves as a Director with former CFO roles at PwC Financial Advisory, Harry Winston, and Wahta Mohawks. Lorna MacGillvray serves as Corporate Secretary and was previously in-house counsel at Thompson Creek Metals, Glencairn Gold, and Campbell Resources.