A resource update for Selkirk Copper Mines' (TSXV: SCMI; US-OTC: SKRKF) Minto project in Yukon has nearly tripled contained metal estimates as the First Nation-owned company advances toward a feasibility study and eventual mine restart. The project adds to a pipeline of potential future copper supply at a time when the metal faces structurally growing demand from electrification, grid modernization, and renewable energy infrastructure. The company's shares rose following the announcement.

The updated resource outlines 47.8 million measured and indicated tonnes grading 0.89% copper, 0.34 gram gold per tonne, and 3.2 grams silver per tonne, yielding 940 million lb. copper, 530,000 oz. gold, and approximately 4.8 million oz. silver, Selkirk reported Thursday. Compared with last year's estimate, contained measured and indicated copper increased 181%, gold rose 183%, and silver climbed 192%. Copper grades declined by roughly one quarter as additional lower-grade tonnes were incorporated into the resource.

The Minto project is located approximately 240 km northwest of Whitehorse.

Selkirk CEO M. Colin Joudrie said in a release that the measured and indicated increases achieved through the company's stage-one drilling program "demonstrates the significant potential to grow mineable resources within the Minto mine property in a cost-effective and timely manner."

"It supports the overall restart program objectives and strongly suggests that we have the opportunity to further upgrade and enhance the quality of the copper-gold-silver mineralized lenses which have the potential to further improve the quality of our mine plans in the upcoming feasibility study as well as into the future," Joudrie said.

Expanded Resource Base

The larger measured and indicated resource significantly expands the mineable inventory expected to underpin the feasibility study, due in the third quarter. The update reduces reliance on inferred material and could extend the mine life at Minto, which Selkirk has indicated could restart in 2028. Because Minto is a brownfield site with existing infrastructure and a 16-year production history, a restart would differ from a greenfield development in terms of permitting timelines and capital requirements, though the feasibility study will define the specific economics.

The resource update comes nearly two years after Yukon's Supreme Court approved Selkirk First Nation's purchase of Minto, a rare instance of Indigenous ownership of a mine in Canada. The First Nation became the legal owner of Minto one year ago and currently holds an 18.2% stake in the company.

Minto Metals shut the mine down in September 2023 due to financial difficulties, and PricewaterhouseCoopers placed the operation into receivership before it was put up for sale. The Minto mine produced approximately 500 million lb. of copper between 2007 and 2023.

Selkirk Copper shares gained nearly 7% to $1.94 each on Thursday morning in Toronto, bringing the company's market valuation to approximately $259.6 million. The stock has traded in a 12-month range of 42¢ to $2.24.

Inferred Resources Decline

While the update converted substantial resources into the measured and indicated categories, contained copper in the inferred category decreased by 48% to 281 million lb. grading 0.76% across 16.9 million tonnes. The inferred resource includes 142,000 oz. contained gold and 1.5 million oz. silver, grading 0.26 gram gold and 2.7 grams silver per tonne, respectively.

The majority of resources in the update are classified as underground, with approximately 45% located in the open pit.

The update is based on Selkirk's stage-one drill program combined with historical drilling, totaling 428,388 metres across 1,956 holes. The company's stage-two program targets 50,000 metres of additional drilling, of which 37,000 metres have already been completed. That program aims to further upgrade resources for the upcoming feasibility study.