Surge Copper (TSXV: SURG) has released results of a pre-feasibility study (PFS) for its 100%-owned Berg project in central British Columbia, confirming its status as what the company calls “one of Canada’s most significant undeveloped copper projects.”
The PFS, prepared within NI 43-101 standards by Ausenco Engineering Canada and Moose Mountain Technical Services, outlines a large-scale conventional open-pit mine operation with a 12,000-tonne-per-day concentrator process plant.
Over a projected 28-year mine life, it is expected to deliver total production of 8.6 billion lb. of copper equivalent, including 4.9 billion lb. of copper, 602 million lb. of molybdenum, and 89 million lb. of silver, the report shows. Over the first five years of steady-state production, its production could reach 416 million lb. of copper equivalent annually, higher than the life-of-mine average of 308 million lb.
Under its base-case price scenario for these metals, the PFS gave the project an after-tax net present value (at 8% discount) of C$4.6 billion, with an internal rate of return of 24% and a payback period of 2.9 years. Its initial capital cost is pegged at C$4.7 billion.
At spot prices, however, the NPV would more than double to C$9.4 billion, while the IRR rises to 36% and the payback reduces to 1.8 years.
“Completion of the Berg PFS marks an important milestone for Surge and materially advances one of Canada’s most significant undeveloped copper projects,” Leif Nilsson, CEO of Surge Copper, stated in a press release on Monday.
“Berg now stands out not only for its scale, but also for the quality of its development profile, with long-life production of copper as a primary metal, and industry-leading molybdenum and silver output, strong infrastructure advantages, and access to low-carbon hydroelectric power.”
Shares of Surge Copper surged more than 10% following the PFS release. By noon ET, it traded at C$0.82 apiece with a market capitalization of C$320.6 million ($229.3 million).
Updated resource
The Berg project economics were anchored by a reserve base (proven and probable) estimated at 1.2 billion tonnes grading 0.22% copper, 0.026% molybdenum, 4.1 grams per tonne (g/t) silver and 0.02 g/t gold, containing 5.8 billion lb. of copper, 687 million lb. of molybdenum, 160 million oz. of silver and 800,000 oz. of gold.
The reserves are contained within an updated mineral resource estimate of 1.4 billion measured and indicated tonnes grading 0.21% copper, 0.025% molybdenum, 4.0 g/t silver and 0.02 g/t gold and 1 billion inferred tonnes grading 0.16% copper, 0.027% molybdenum, 4.3 g/t silver and 0.01 g/t gold.
The new resource, said Surge, benefited from additional drilling at Berg completed since the project’s preliminary economic assessment in 2023, as well as expanded gold and silver assay coverage from historical core, updated geological and geostatistical modelling, and revised metallurgical recovery assumptions.
Environmental assessments next
In its press release, Surge said the completion of the PFS is expected to mark an important milestone in the advancement of the project and support its planned filing of an initial project description to commence both the provincial and federal environmental assessments.
In parallel, the company is also planning for an Indigenous-led assessment to be carried out by the Office of the Wet’suwet’en, the engagement and coordination office mandated by the Wet’suwet’en Houses and Hereditary Chiefs.
“Chief Casbit and Thin House of the Gilseyhu Clan look forward to continuing to work with Surge Copper to implement a robust Wet’suwet’en assessment process for the proposed Berg copper project,” the Office said.
“We’re encouraged by projects like Surge’s Berg copper project to help British Columbia responsibly develop the critical minerals the world needs,” BC Premier David Eby said in a statement.
