EraNova Announces Positive Preliminary Economic Assessment for the Adanac Molybdenum Project: After-Tax NPV of $714.4 Million and 23.5% IRR

EraNova Metals Inc. (NOVA) released an independent NI 43-101 Preliminary Economic Assessment for its 100%-owned Adanac Molybdenum Project in British Columbia. The PEA outlines a 24-year, 30,000-tpd open-pit operation producing an average 11.4 Mlbs Mo/year, totaling 270.1 Mlbs life-of-mine.

The assessment provides the following financial metrics:

• Base-case (US$25/lb Mo): after-tax NPV@8% of C$714.7M, after-tax IRR of 23.5%, payback 2.6 years.
• At spot Mo (US$31.91/lb): after-tax NPV@8% of C$1,292.2M, after-tax IRR of 30.2%.

Capital requirements include an initial capex of C$953.3M, which includes C$120.7M in contingency, alongside sustaining and closure capex of C$625.1M. Operating costs are estimated at US$17.48/lb Mo in cash costs and US$19.79/lb Mo in AISC.

The project’s resource base comprises Measured and Indicated resources of 391.2 Mt @ 0.051% Mo for 435.7 Mlbs Mo, plus 71 Mlbs Inferred. The Adanac Molybdenum Project benefits from existing road access, a previously issued EA Certificate, and over C$100M in historical infrastructure investment. Management plans to advance directly to a Feasibility Study and seeks strategic partnerships.

EraNova Metals Inc. (NOVA) released its Preliminary Economic Assessment (PEA) for the Adanac project, marking the first modern, NI 43-101 compliant economic study for the asset. The study outlines robust economics that significantly exceed the company’s approximately $7 million market capitalization. The base-case after-tax net present value (NPV) is C$714 million, roughly 100 times the current market cap, while the after-tax internal rate of return (IRR) stands at 23.5%.

The project demonstrates viability at current molybdenum prices, with a substantial margin between the all-in sustaining cost (AISC) of US$19.79 and the spot price of US$31.91. This sensitivity indicates significant leverage to molybdenum price movements. The release converts a conceptual resource into a demonstrably economic development story, a shift that could attract strategic investors, off-take partners, or acquirers. However, the enormous upfront capital expenditure of C$953 million relative to the company’s resources presents a critical challenge.

The PEA’s release was telegraphed, as the company had guided for completion by mid-2026, so the timing was not unexpected. Nevertheless, the scale of the economics likely exceeds market expectations given the company’s micro-cap valuation. Risks related to execution, financing, and permitting remain unresolved, as the study acknowledges the need for a feasibility study and partnerships. While the news serves as a de-risking milestone that materially enhances the company’s value proposition, it does not constitute an unexpected takeover or a first-time Sprott investment.

EraNova Metals Inc. (ticker NOVA), formerly known as Stuhini Exploration, is a Canadian junior explorer and developer focused on the 29,734-hectare Ruby Creek property in the Atlin district of British Columbia. The company also holds two early-stage exploration properties: Big Ledge and South Thompson.

The company’s flagship asset is the Adanac Molybdenum Project, a large primary molybdenum deposit that contained a 2022 Measured and Indicated resource of approximately 433 million pounds of molybdenum. The project features over 74,000 meters of historical drilling, a 2008 feasibility study, existing road access, and an environmental assessment certificate. EraNova is currently advancing toward a full feasibility study.

Secondary exploration targets include the high-grade Silver Surprise zone, which has returned assays up to 16,030 grams per tonne of silver, gold-silver veins at Lakeview and Little Edna, and a copper-gold porphyry system at Ruffner, which has shown grades up to 8.1% copper and 36.8 grams per tonne of gold. These projects provide discovery optionality but remain in very early stages.