Imperial Reports Mount Polley Permit Issuance, Mount Polley Production Update for 2026 Second Quarter, and Huckleberry Mine Exploration Results

The British Columbia Environmental Assessment Office and provincial ministers have approved an increase in the height of the Mount Polley Tailings Dam to 987 metres, up from 974 metres. The permit, issued by Minister Brar for Mining and Critical Minerals and Minister Davidson for Environment and Parks, authorizes expanded mining operations through 2034.

Imperial Metals Corporation (III) reported second-quarter 2026 production on a 100% basis, with copper output falling to 3.382 million pounds from 9.496 million pounds in the same period last year, a 64% year-over-year decline. Gold production dropped 38% to 6,848 ounces from 11,061 ounces. The company milled 1,683,357 tonnes of ore at a rate of 18,498 tonnes per day, down from 19,331 tonnes per day a year ago. The mill feed grade was recorded at 0.152% copper and 0.199 grams per tonne gold, with recoveries of 60.0% for copper and 63.6% for gold. These figures represent a significant decrease from the previous year’s feed grade of 0.295% copper and 0.286 grams per tonne gold, alongside recoveries of 83.0% for copper and 68.4% for gold. The ore feed source consisted of 44% from the Springer Pit Phase 5 pushback, 15% from Phase 4 and C2 pits, and 41% from low-grade stockpiles.

To address lower grades, Imperial Metals has launched three initiatives for the third quarter of 2026. These include rescheduling C2 pit production to avoid approximately 800,000 tonnes of mining in the first half of the year, which contains roughly 6,000 ounces of recoverable gold, and shifting that work to drier summer conditions. The company is also developing the small, high-grade Boundary pit earlier than planned and reducing the use of low-grade stockpiles. Higher-grade material from Phase 5 is expected to arrive in the fourth quarter of 2026, which should reduce or eliminate the need for stockpile processing. The company expects to meet its 2026 production guidance range for Mount Polley, which is set at 19 to 21 million pounds of copper and 40,000 to 44,000 ounces of gold.

Exploration at the Huckleberry Mine has yielded significant copper, molybdenum, silver, and gold mineralization across 22 diamond drill holes totaling 7,047 metres. Notable intercepts include MZ-26-06A, which returned 140.0 metres at 0.45% copper, 0.013% molybdenum, 1.72 grams per tonne silver, and 0.07 grams per tonne gold, and MZ-26-08A, which returned 334.0 metres at 0.24% copper, 0.016% molybdenum, 1.87 grams per tonne silver, and 0.06 grams per tonne gold. These results will inform an updated geological model, with a mine reopening plan expected by the end of 2026.

Imperial Metals Corporation (III) has secured a tailings dam permit allowing operations to reach 987 m, a regulatory milestone that supports the mine’s life through 2034. This approval follows previous permit amendments, including an expansion permit in August 2025, and was partly anticipated by the market.

The company reported weak second-quarter 2026 production figures, with copper output falling to barely half of the prior-year quarter. This decline was driven by low grades and poor recoveries, marking a clear operating setback. Despite this, management reaffirmed full-year guidance without revision, signaling confidence in a second-half recovery. The market likely anticipated a soft quarter given the reliance on high stockpiles, as the first-quarter 2026 MD&A noted that lower grades from stockpiles would persist through the first half of the year.

Exploration results at Huckleberry are positive but remain in the early stages, with a reopening plan still only promised for the end of 2026. The combination of the long-term permit win and the weak quarter that did not trigger a guidance cut yields a net-neutral informational update.

Imperial Metals Corporation (III) is a Vancouver-based copper-gold producer with three principal assets in British Columbia. The company’s Mount Polley operation is a 100%-owned open-pit mine with 2026 guidance of 19-21 million pounds of copper and 40-44 thousand ounces of gold.

Imperial Metals also holds a 30% interest in the Red Chris mine, which is operated by Newmont (70%). This open-pit mine is transitioning to a block-cave, with 2026 guidance on a 100% basis of 60-66 million pounds of copper and 47.5-52.5 thousand ounces of gold. A block-cave feasibility study is due in the second half of 2026, and the company has secured $500 million in federal funding.

The Huckleberry property, which is 100%-owned, is currently on care and maintenance, with a restart plan targeted by the end of 2026. Additionally, Imperial Metals holds 23 greenfield exploration properties in British Columbia.