ASX-listed BMC Minerals has published the results of an updated feasibility study, which it says confirms that the company’s flagship Kudz Ze Kayah (KZK) mine project, in the Yukon, Canada, is a financially robust polymetallic project that is expected to rank among the top 25 silver and top 25 zinc mines globally, once in production.

The updated study estimates materially improved economics on a June cost and pricing basis.

BMC says the outcomes from the updated feasibility study confirm KZK as a high-margin, polymetallic project underpinned by an after-tax net present value (NPV) of $1.7-billion, after-tax internal rate of return (IRR) of 54% and a short payback period of 1.4 years.

The study indicates a pre-tax IRR of 65.7%, with over 50% of gross revenue derived from silver and gold.

Financial results include the impact of the precious metals purchase arrangement with Wheaton Precious Metals Corp.

BMC notes that long-term consensus metal prices have risen materially since those detailed in the technical assessment report disclosed in the initial public offering (IPO) prospectus, particularly the long-term consensus silver price which has increased from $22.60/oz to $50.80/oz.

The company says capital and operating cost estimates have been updated to a June quarter basis to reflect current labour, equipment and consumables pricing, replacing the 2023 cost estimates used previously.

As the resulting revenue gain outweighs the increase in revised cost estimates, BMC says the project's economic outcomes have improved considerably, while the underlying ore reserves, mine plan and physical production profile remain unchanged.

The study also indicates life-of-mine earnings before interest, taxes, depreciation and amortisation (Ebitda) of $4.58-billion and average annual after-tax cashflow of $392-million during operations and $451-million during the first two years of operation driving a short payback period of 1.4 years from the start of ore processing.

BMC says the probable ore reserve of 15.7-million tonnes at 138 g/t silver, 1.3 g/t gold, 5.8% zinc, 0.9% copper and 1.7% lead (used in the 2026 study) is unchanged from the previous ore reserve (effective date of October 30, 2023), confirming that the mine plan remains economically viable at the updated cost and price assumptions.

The company notes steady-state production of 22-million ounces of silver-equivalent a year and average feed grade of 323 g/t silver-equivalent, with the majority of proposed mining through openpit (89%), at a C1 cash cost of $16.67/oz silver-equivalent and all-in sustaining cost of $20.47/oz silver-equivalent which is expected to make KZK Canada's largest silver and zinc producer and a top 15 Canadian copper producer.

BMC nonexecutive chairperson Steven Michael describes the updated feasibility study as an important milestone for the company as it advances the KZK mine project toward development.

He says the materially improved project economics reflect not only current market conditions but also the exceptional high-grade polymetallic qualities and scale of the ABM deposit.

“The board is encouraged by the excellent outcomes demonstrated in this updated 2026 feasibility study and remains confident that the project will deliver significant value for all stakeholders as we progress permitting and financing over the year ahead.”

BMC MD and CEO Michael McClelland adds that these results confirm that KZK is one of the standout undeveloped silver projects globally.

He says the updated economics show a materially stronger project, with an increased IRR, higher NPV and after-tax cashflow plus an impressive payback period.

Importantly, he notes that these improvements have been achieved without any change to the underlying ore reserve or mine plan and underscore the robustness of the work completed to date.

“With the mine decision document received, key licence applications advancing and committed offtake already in place for the early years of production, we are well positioned to advance KZK through engineering and financing toward a final investment decision,” says McClelland.