Mining Intelligence and News
Canada

Davidson Project

Click for more information

Categories

Overview

Mine TypeUnderground
StagePreliminary Economic Assessment
Commodities
  • Molybdenum
Mining Method
  • Longhole open stoping
Backfill type ... Lock
Mine Life... Lock
SnapshotThe Davidson Project is a polymetallic deposit containing molybdenum, tungsten, copper, gallium, and rare earth elements. It is the highest grade molybdenum deposit outside China.

The Davidson Deposit is located inside Hudson Bay Mountain and does not outcrop on surface. The deposit has an existing portal on the east side of the mountain and over 2,100 m of exploration drifting. In the mid 2000s, the Project met with local resistance regarding development and mining of the deposit from the eastern side of the mountain. This Project puts the primary mine development on the west side of the mountain with the existing eastern portal will use only for initial development.

The mine will produce a molybdenum concentrate that will be sold to a smelter(s) for further processing to metal.

The Davidson Project has the potential by-product contributions. The PEA 2024 does not include potential byproduct contributions from tungsten, rare earth elements, gallium and copper.

Owners

SourceSource
CompanyInterestOwnership
Moon River Moly Ltd. 100 % Direct
Davidson Property is 100% owned by Moon River Capital Ltd.

In 2024, Moon River Capital Ltd. changed the name to Moon River Moly Ltd.

Contractors

Lock

- subscription is required.

Deposit type

  • Porphyry

Summary:

The Property is a molybdenite-scheelite porphyry deposit 2.5 km across and extending up to 2 km in depth that consists of moderately to steeply dipping stockwork veins ranging from hairline to 5 mm in width.

Deposit Type
The Davidson deposit is a porphyry molybdenum deposit that shares similar characteristics to the Climax type of molybdenum deposit including mineralised quartz-rich felsic intrusions, multiple mineralisation shells, uni-directional solidification textures, and geological setting (continental back-arc spreading environment). Westra and Keith (1981) classified the deposit as a subset of the Climax type, transitional toward calc-alkaline molybdenum stockwork deposits. Examples of deposits of this transitional type include Questa in New Mexico, USA and Mt. Hope in Nevada, USA. Available geochemical data indicate that the Davidson deposit is characterised by lower fluorine contents than those typical for a Climax type porphyry molybdenum deposit. Bright (1972) reported about 0.1% fluorine in the mineralised zone and about 0.05% fluorine below the mineralised zone, with localised elevated values of up to 2.7% fluorine. Atkinson (1981) reported less than 0.1% fluorine (0.013% to 0.042%) in 9 samples from the known rhyolite plug; there may be other plugs.

The Davidson molybdenum-scheelite deposit is considered to be one of the British Columbia Porphyry molybdenite deposits that are postaccretion and range in age from 138 to 8 million years.

Mineralization
The two main zones of molybdenite mineralisation, within the Davidson deposit, have been named the Main and Lower zones, respectively. These are high-grade zones within a much larger but lower grade zone defined by the =0.17% MoS2 shell.

The mineralised zone is located inside Hudson Bay Mountain between the 940 m and 1,440 m elevations.

Main Zone
The Main zone is hosted by the granodiorite sheet and is defined by the =0.3% MoS2 grade shell. It is an irregular zone, roughly circular in plan view and elliptical in cross-section, with maximum horizontal dimensions of approximately 450 m and maximum vertical extent of approximately 200 m.

The general mineralised zones within the granodiorite, including the Main zone, has been described by Atkinson (1981) who reported two basic types of molybdenite-bearing quartz veins: Type 1 (fine-grained molybdenite) and Type 2 (coarse-grained molybdenite). The Type 1 veins are sub-divided into two subtypes: an early set of narrow (= 3 mm) veins that locally form stockworks and a set of much wider (= 60 cm) banded veins. The strongest set of banded veins dips to the southeast and east of the 15000 E crosscut, but progressively flattens to the northwest. Type 2 veins are up to 15 cm in width, carry molybdenite crystals = 5 cm in diameter, and may have been the latest quartz-molybdenite veins to be deposited.

Lower Zone
The Lower zone, as presently defined, was deposited mainly in the upper part of the rhyolite plug within the = 0.3% molybdenite grade shell. With work still in progress, the zone appears to be elongated to the north-northwest with that dimension being approximately 250 m, and with a maximum width and height of approximately 100 m and 40 m, respectively. Both fine-grained and coarse-grained quartz-molybdenite veins occur in the Lower zone, although the vein type distinctions reported in the Main zone are not as clear in this zone, and the very coarse Type 2 veins are not present. The strongest molybdenite-bearing quartz veins are banded veins, interpreted to be gently southeasterly dipping, which continue past the plug to the southeast. Disseminated molybdenite is present in small amounts locally. There is a multiplicity of vein types still under study in the general area of the Lower zone, including early barren quartz veins, molybdenite-bearing veins with or without magnetite, pyrite or scheelite, and late pyrite-carbonate and finally carbonate veins.

Altration
A Hornfels aureole, characterized by development of radiating and zoned clots and veins of garnet, epidote, chlorite, Biotite, hornblende and amphiboles, extends from surface where it has been mapped over an area 7 km by 4 km. Brown to red andradite garnet intergrown with quartz, chlorite, sericite, magnetite, carbonate and occasionally scheelite and rimmed by Epidote becomes increasingly common with depth. In some underground exposures of the sill, 30% of the wall rock is replaced by garnet clots to 10 cm across producing a spotted (appaloosa) texture.

Primary igneous textures of the sill have been obliterated by the pervasive loss of mafic minerals and the development of chlorite ± magnetite pre-molybdenite hairline stockworks, clots and veins that may in part be attributed to hydrothermal alteration.

Astride the contact of the rhyolite plug with Hazelton Group volcanic rocks and the granodiorite sill, quartz stockwork veins coalesce to form a high silica zone that mimics the shape of the top of the plug. The high silica zone averages 40 m thick and contains trace fluorite, topaz, magnetite and Biotite.

Hydrothermal alteration is fracture controlled. Vein alteration haloes rarely exceed a metre in width. Where veins are numerous, overlapping haloes form zones of pervasive alteration but deposit scale zonation has not been established. Within Hazelton Group rocks, hydrothermal alteration includes Na metasomatism, silicification and destruction of mafic minerals resulting in bleaching of the lithologies. Within the granodiorite sill alteration includes the development of pink potassic alteration which envelops magnetite, quartz, stockwork molybdenite, and pegmatitic quartzmolybdenite veins. Three pulses of hydrothermal fluids are interpreted from the cross-cutting relationships of the alteration envelope.

Reserves

Lock

- subscription is required.

Mining Methods

Lock

- subscription is required.

Comminution

Crushers and Mills

Lock

- subscription is required.

Processing

Lock

- subscription is required.

Production

CommodityUnitsLOM
Molybdenum dmt 163,576
All production numbers are expressed as oxide in concentrate.

Operational metrics

Metrics
Daily ore mining rate  ....  Subscribe
Daily processing capacity  ....  Subscribe
Annual ore mining rate  ....  Subscribe
Annual processing capacity  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2024 study.

Production Costs

CommodityAverage
Cash costs Molybdenum  ....  Subscribe
All-in sustaining costs (AISC) Molybdenum  ....  Subscribe
Assumed price Molybdenum  ....  Subscribe
* According to 2024 study / presentation.

Operating Costs

CurrencyAverage
UG mining costs ($/t milled) CAD  ....  Subscribe
Processing costs ($/t milled) CAD  ....  Subscribe
G&A ($/t milled) CAD  ....  Subscribe
Total operating costs ($/t milled) CAD  ....  Subscribe
* According to 2024 study.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M CAD  ......  Subscribe
Sustaining CapEx $M CAD  ......  Subscribe
Working capital $M CAD  ......  Subscribe
Closure costs $M CAD  ......  Subscribe
Total CapEx $M CAD  ......  Subscribe
UG OpEx $M CAD  ......  Subscribe
Processing OpEx $M CAD 537.6
Transportation (haulage) costs $M USD 21.2
G&A costs $M CAD 108.1
Total OpEx $M CAD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M CAD  ......  Subscribe
Net Operating Income (LOM) $M CAD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M CAD  ......  Subscribe
After-tax Cash Flow (LOM) $M CAD  ......  Subscribe
Pre-tax NPV @ 5% $M CAD  ......  Subscribe
Pre-tax NPV @ 10% $M CAD  ......  Subscribe
Pre-tax NPV @ 8% $M CAD  ......  Subscribe
After-tax NPV @ 5% $M CAD  ......  Subscribe
After-tax NPV @ 10% $M CAD  ......  Subscribe
After-tax NPV @ 8% $M CAD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

Lock

- subscription is required.

EV - Electric
AV - Autonomous

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Feb 22, 2024
....................... Subscription required ....................... Subscription required Subscription required Feb 13, 2024

Total WorkforceYear
...... Subscription required 2024

Aerial view:

Lock

- subscription is required.