SUDBURY, Ontario, Oct. 08, 2026 (GLOBE NEWSWIRE) — Magna Mining Inc. (TSX: NICU) (OTCQX: MGMNF) (FSE: 8YD) (“Magna” or the “Company”) is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) for the restart of the fully-permitted Levack Mine (“Levack”), located in the North Range of the Sudbury Basin, northeastern Ontario, Canada. All amounts are expressed in Canadian dollars unless otherwise indicated.
Levack PEA Highlights:
- Solid production profile and short time frame to commercial production: The Levack PEA contemplates underground mining of 5.75 million short tons with 7.3 years of commercial production and average annual payable copper equivalent (“CuEq”)1,2 production of 36.8 million pounds (“lbs”) at all-in sustaining costs (“AISC”) of US$3.71 per CuEq payable pound2 and commercial production anticipated in mid-2028.
- Low initial capital and robust pre-commercial production operating cash flows: Initial capital costs from January 1, 2027 to the start of commercial production are estimated to be $70.1 million, after incorporating equipment financing timing effects. This initial capital is estimated to be offset by refundable tax credits3 of approximately $5.6 million and expected pre-commercial production operating cash flow of approximately $55.9 million using base case price assumptions1, leaving a calculated net initial funding requirement of $8.6 million.
- Rapid payback and robust base case economics: Assuming base case commodity prices, the Levack PEA estimates payback in 0.6 years with a base case after-tax Internal Rate of Return (“IRR”) of 92.4% and an after-tax NPV7% of $227.0 million. Pre-tax cash flows in 2028 and 2029 are estimated to be approximately $96.5 million per year. Using September 2026 average commodity prices1, the after-tax NPV7% increases to $313.6 million and the IRR improves to 115.8%, with average pre-tax cash flows of approximately $120.6 million per year in 2028 and 2029.
- Positive potential impact from the recently announced Productivity Mega Deduction: Incorporation of the Productivity Mega Deduction (“PMD”)4 could reduce the estimated federal taxes payable over the life of mine. The Levack PEA after-tax NPV7% improves by $5.1 million to $232.1 million and the IRR increases to 99.2%, by reducing total federal taxes paid by $1.6 million and accelerating the utilization of certain tax deductions.
Additional opportunities: The potentially mineable resources in the Levack PEA are a subset of the updated Levack Mine Mineral Resource Estimate (MRE) which include additional resources within the No.7 Contact Zone and additional mineralization in the Morrison Footwall Cu-PGE Deposit compared to the Levack Mine MRE announced on November 18, 2025. The PEA does not include any potential production from the R2 Footwall Zone. See the news release dated September 17, 2026 for the most recent exploration results from the R2 Footwall Zone.
Formal approval to restart Levack Mine: Based on the results of the PEA (summarized in Table 1), and while acknowledging that there are no supporting mineral reserves with demonstrated economic viability, the Company’s Board of Directors has formally approved the plan to restart the Levack Mine, with underground development and surface construction activities expected to ramp up significantly over the coming months.
1 Base case price assumptions: US$5.10/lb Cu, US$8.00/lb Ni, US$20.00/lb Co, US$3,600/oz Au, US$1,500/oz Pt, US$1,200/oz Pd, US$45.00/oz Ag; CAD/USD $1.385. Illustrative spot price case assumptions based on September 2026 average prices: US$6.55/lb Cu, US$7.50/lb Ni, US$24.90/lb Co, US$4,320/oz Au, US$1,785/oz Pt, US$1,310/oz Pd, US$64.50/oz Ag; CAD/USD $1.370.
2 Payable CuEq production considers base case price assumptions and modeled recovery and payabilities for each metal.
3 Assumes $5.6 million in refundable tax credits via the Clean Technology Manufacturing Investment Tax Credit (CTM-ITC).
4 On September 15, 2026, the Canadian federal government announced the Productivity Mega Deduction (“PMD”), allowing businesses to immediately deduct the cost of a broad range of capital assets, rather than claiming those deductions over time. The PMD is subject to legislative approval.
Jason Jessup, CEO of Magna, stated, “The PEA demonstrates Levack Mine’s potential as a low capital cost, high IRR project with a clear pathway to a rapid ramp-up to commercial production. The low capital intensity reflects the significant capital previously invested in the mine, as well as the current state of its existing infrastructure. The mine plan outlined in the study prioritizes higher-grade copper-precious metal footwall zones early in the mine life, generating meaningful pre-production revenue and supporting a strong IRR.
The Levack team embodies Magna’s core value of the Relentless Pursuit of Excellence, and I am confident we will continue to optimize the mine plan while incorporating new mineralized zones, including the R2 Zone, with the objective of extending mine life and further enhancing project economics. Given the strong IRR and operating cash flows demonstrated in the PEA, together with Magna’s treasury position, the Board of Directors has approved the investment to formally restart the Levack Mine. This represents an important next step in Magna’s growth toward becoming a mid-tier producer.”
Table 1: Key Levack PEA Project Metrics
| Production Profile |
|
Unit |
| Commercial production life |
7.3 |
years |
| Mining rate1 |
2,141 |
tons per day |
| Total mining inventory |
5,747,819 |
tons |
| CuEq head grade1,5 |
3.42 |
% |
| Avg. annual copper production1 |
12.9 |
million payable lbs |
| Avg. annual nickel production1 |
10.9 |
million payable lbs |
| Avg. annual precious metals production1 |
21.4 |
koz Pt+Pd+Au |
| Avg. annual CuEq production1,5 |
36.8 |
million payable lbs |
| Operating Costs |
|
Unit |
| Production costs LOM |
$157.80 |
C$ per ton processed |
| Cash costs |
US$3.23 |
US$ per CuEq payable lb |
| All-in sustaining costs |
US$3.71 |
US$ per CuEq payable lb |
| Capital Costs |
|
|
| Initial capital2 |
$70.1 |
C$ million |
| LOM Sustaining capital |
$168.0 |
C$ million |
| Project Economics |
Base Case3 |
Spot Price Case4 |
| Avg. annual operating cash flow (C$ million) |
$91.2 |
$114.1 |
| Pre-tax NPV(7%) (C$ million) |
$312.1 |
$438.3 |
| After-tax NPV(7%) (C$ million) |
$227.0 |
$313.6 |
| After-tax IRR |
92.4% |
115.8% |
| After-tax cash flow LOM (C$ million) |
$326.9 |
$446.0 |
| After-tax payback |
0.6 years |
0.4 years |
| After-tax NPV(7%) with PMD6 (C$ million) |
$232.1 |
$318.6 |
| After-tax IRR with PMD6 |
99.2% |
122.3% |
| |
|
|
1 Production averages cover commercial production from mid-2028 to 2035. CuEq head grade is on a contained basis covering Life of Mine. CuEq determined using base case metal price assumptions. Tons are short tons (2,000 lb).
2 January 2027-June 2028 pre-commercial production capital, after equipment financing timing effect; before operating cash flow and refundable tax credits. Payback is measured from January 1, 2028.
3 US$5.10/lb Cu, US$8.00/lb Ni, US$20.00/lb Co, US$3,600/oz Au, US$1,500/oz Pt, US$1,200/oz Pd, US$45.00/oz Ag; CAD/USD $1.385.
4 Illustrative spot-price case based on September 2026 average prices: US$6.55/lb Cu, US$7.50/lb Ni, US$24.90/lb Co, US$4,320/oz Au, US$1,785/oz Pt, US$1,310/oz Pd, US$64.50/oz Ag; CAD/USD $1.370.
5 See Tables Included with Figures 2 and 3 for grades and contribution of specific metals.
6 On September 15, 2026, the Canadian federal government announced the proposed Productivity Mega Deduction (“PMD”), which would permit the immediate deduction of certain eligible capital expenditures for income tax purposes. As the PMD has not yet been enacted into law, the benefit has been excluded from the base-case economic analysis and is presented separately as a sensitivity.
Figure 1: Location of Levack Mine and Key Sudbury Infrastructure
PEA Overview
The Levack Mine project, located in the North Range of the Sudbury Basin (Figure 1), is a brownfield redevelopment of the past-producing nickel-copper-precious metals (platinum, palladium, gold, silver) Levack Mine which was last operated in 2018. Topics covered in the PEA include the mining design basis, geotechnical design basis, hydrogeology and dewatering, mine access and design, mining method and stope design, development, production schedule, mobile fleet, workforce, ventilation, backfill, material handling and grade control. The PEA was prepared by AGP Mining Consultants Inc. with the assistance of Magna’s Projects team, as well as insights from current operations at the Company’s adjacent McCreedy West Mine. The PEA incorporates geological information collected by the Company as well as historic information from the previous underground mining operations at Levack.
Mine Plan and Production Schedule
The Levack PEA mine plan (summarized in Table 1) assumes go-forward capital spending begins on January 1, 2027 and ramps up over the first two years of production with commercial production anticipated in mid-2028 (Figure 2). At a target commercial production rate of approximately 2,200 short tons per day, the mine plan includes 5.75 million short tons and 7.3 years of commercial production.
The mineralized zones incorporated in the mine plan include the Footwall Copper zones, the Contact Nickel zones (the former Main, East and No.7 block models), and the Morrison Footwall Cu-PGE deposit (Figure 6). The 5.75 million short tons include diluted Indicated and Inferred mining inventory derived from the current Levack Mineral Resource Estimate. The R2 Footwall Zone is excluded from the PEA inventory and economics, as mineral resources have not yet been defined
The PEA is preliminary in nature and includes 2.1 million short tons of Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. The location and extent of historic mined-out stopes and voids remain uncertain, the effect on resource depletion, dilution, recovery and ground stability adjacent to historic workings remains a risk. There is no certainty that the PEA will be realised. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Figure 2 shows annual mill feed by zone and contained CuEq head grade. Contained CuEq head grade uses base case metal prices, without recovery, payability, stream or cost deductions. Figure 3 shows payable metal production expressed as CuEq, using the modeled recoveries and payabilities. Precious metal head grades in Figure 2 are in troy ounces per short ton.
Figure 2: Levack PEA Production Schedule & Contained Copper Equivalent Grade
| Year |
Y 1 |
Y 2 |
Y 3 |
Y 4 |
Y 5 |
Y 6 |
Y 7 |
Y 8 |
Y 9
|
Material shipped (short tons)
|
82,372 |
620,640 |
776,880 |
775,408 |
780,343 |
775,307 |
786,211 |
797,453 |
353,205 |
|
| Contained Grades |
CuEq (%) |
4.19 |
4.24 |
3.64 |
3.60 |
3.06 |
3.18 |
3.29 |
3.07 |
3.29 |
|
| Cu (%) |
1.11 |
1.15 |
0.90 |
1.14 |
0.90 |
0.86 |
1.00 |
0.88 |
0.97 |
|
| Ni (%) |
0.93 |
1.16 |
1.13 |
0.81 |
0.94 |
1.08 |
1.05 |
1.04 |
1.00 |
|
| Co (%) |
0.023 |
0.034 |
0.035 |
0.021 |
0.029 |
0.033 |
0.032 |
0.032 |
0.028 |
|
| Au (ozt) |
0.012 |
0.009 |
0.004 |
0.008 |
0.004 |
0.002 |
0.002 |
0.002 |
0.003 |
|
| Pt (ozt) |
0.031 |
0.024 |
0.021 |
0.025 |
0.013 |
0.013 |
0.014 |
0.012 |
0.017 |
|
| Pd (ozt) |
0.052 |
0.037 |
0.032 |
0.034 |
0.018 |
0.018 |
0.018 |
0.016 |
0.024 |
|
| Ag (ozt) |
0.125 |
0.084 |
0.060 |
0.101 |
0.063 |
0.031 |
0.033 |
0.031 |
0.040 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Figure 3: Levack PEA Copper Equivalent Payable Metal Production
| Year |
Y 1 |
Y 2 |
Y 3 |
Y 4 |
Y 5 |
Y 6 |
Y 7 |
Y 8 |
Y 9
|
| Payable Metal |
CuEq (million lb) |
4.86 |
38.27 |
40.05 |
39.35 |
33.16 |
34.33 |
36.27 |
33.83 |
16.17 |
|
| Cu (million lb) |
1.60 |
12.58 |
12.13 |
15.42 |
11.86 |
11.37 |
13.63 |
11.81 |
5.75 |
|
| Ni (million lb) |
1.03 |
10.31 |
12.46 |
8.28 |
9.92 |
11.56 |
11.31 |
11.29 |
4.81 |
|
| Co (million lb) |
0.008 |
0.100 |
0.128 |
0.070 |
0.099 |
0.120 |
0.115 |
0.116 |
0.045 |
|
| Au (koz) |
0.655 |
3.752 |
1.532 |
4.208 |
1.947 |
0.776 |
0.630 |
0.539 |
0.492 |
|
| Pt (koz) |
1.458 |
8.486 |
8.992 |
10.922 |
5.478 |
5.480 |
6.002 |
5.016 |
3.251 |
|
| Pd (koz) |
2.929 |
16.128 |
16.972 |
17.968 |
9.431 |
8.987 |
9.319 |
8.257 |
5.694 |
|
| Ag (koz) |
3.067 |
21.476 |
16.722 |
28.241 |
17.855 |
8.177 |
6.388 |
6.385 |
6.729 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Capital and Operating Costs
The Levack Mine benefits from significant pre-existing surface and underground infrastructure, much of which has been well-maintained since operations ceased in 2018 given Levack Mine provides secondary egress for the Company’s adjacent McCreedy West Mine, and more recently for other adjacent underground mining operations. Pre-existing infrastructure as well as capital invested prior to the end of 2026 is treated as sunk capital for the purposes of the PEA.
Estimated initial capital is C$70.1 million, including C$12.6 million of contingency. The estimate comprises capital expenditure from January 1, 2027 to June 30, 2028, reflecting the timing of equipment financing (Table 2). Estimated initial capital is presented after equipment financing timing effects. Deferred equipment purchase payments are included in subsequent years. The after-tax cash flow model incorporates the Clean Technology Manufacturing investment tax credits. Eligibility and receipt of those credits remain subject to the applicable requirements and the Company’s tax review. The mitigation from pre-production revenue and the benefit of refundable tax credits do not reduce the initial capital required but do help to decrease the net cash outlay at the end of the ramp-up period to an estimated C$8.6 million.
Estimated sustaining capital from commercial production on July 1, 2028 onward is C$168.0 million.
Table 2: Levack PEA Initial Capital Costs
| Initial Capex |
|
C$ million |
| Underground Capital |
|
|
| Underground development |
|
$27.8 |
| Mobile fleet (after financing timing effects) |
|
$10.3 |
| Leasing interest expense |
|
$0.6 |
| Underground infrastructure |
|
$5.7 |
| Subtotal |
|
$44.4 |
| Surface Infrastructure Capital |
|
|
| Water, waste management & closure |
|
$4.1 |
| Power distribution & ventilation |
|
$4.0 |
| Surface building upgrades |
|
$1.5 |
| Backfill plant & reticulation |
|
$1.8 |
| Shaft activation & hoist |
|
$1.7 |
| Subtotal |
|
$13.1 |
| Contingency |
|
$12.6 |
| Total initial capital (Jan 2027-Jun 2028) |
|
$70.1 |
| Refundable tax credits |
|
-$5.6 |
| Pre-commercial production operating cash flow |
|
-$55.9 |
| Net initial funding |
|
$8.6 |
| |
|
|
The Company’s adjacent McCreedy West Mine provides an operating cost and productivity benchmark. Average life-of-mine operating costs in the Levack PEA are C$157.80 per short ton processed (Table 3). Cash costs are US$3.23/lb payable CuEq and all-in sustaining costs are US$3.71/lb payable CuEq. Cash costs use the commercial production periods and exclude stream costs, which are already deducted from revenue. AISC adds estimated sustaining capital. These are non-GAAP measures and may not be comparable with similarly named measures used by other companies.
Table 3: Levack PEA Operating Costs
Operating Costs
|
LOM |
Unit |
| Mining Costs |
|
$88.51 |
C$/ton shipped |
| Surface & Processing Costs |
|
$54.27 |
C$/ton shipped |
| General & Site Administration Costs |
|
$15.02 |
C$/ton shipped |
| Total Operating Costs |
|
$157.80 |
C$/ton shipped |
| Total Cash Costs |
|
US$3.23 |
US$/lb CuEq payable |
| AISC |
|
US$3.71 |
US$/lb CuEq payable |
| |
|
|
|
Project Economics & Sensitivity
At the base-case prices in Table 4, recovered payable metal value comprises the following revenue share 34.8% copper, 46.0% nickel, 3.7% gold, 5.9% platinum, 8.1% palladium, 1.1% cobalt, 0.4% silver. The Levack PEA base case pre-tax NPV7% is C$312.1 million and the after-tax NPV7% is C$227.0 million, with an after-tax IRR of 92.4% and payback of 0.6 years. The after-tax NPV7% incorporates the Company’s current tax assumptions, including an estimated benefit of C$20.4 million LOM from the Clean Technology Manufacturing investment tax credit. The realization of this tax benefit remains subject to the Company’s ability to satisfy the applicable legislative and tax filing requirements.
An illustrative spot-price case scenario based on average metal prices during September 2026 returns a pre-tax NPV7% of C$438.3 million, an after-tax NPV7% of C$313.6 million, an after-tax IRR of 115.8% and payback of 0.4 years. Tables 4 and 5 and Figure 5 show fixed mine plan sensitivities. Price-only sensitivities hold the base exchange rate constant; the illustrative spot case applies USD/CAD 0.730 to revenue and US dollar milling charges, with other cost translations held at the base case rate.
The base case after-tax economic results exclude any benefit associated with the PMD tax incentive. For illustrative purposes, a separate tax sensitivity was completed assuming the Company is eligible to claim available PMD deductions on qualifying expenditures. Under this scenario, the base case after-tax NPV7% increases to C$232.1 million and the after-tax IRR increases to 99.2%. This legislation remains subject to approval.
Figure 4: Levack PEA Pre-Tax Cash Flow
Table 4: Levack PEA Economic Summary & Sensitivity Analysis
| Price Deck |
Unit |
-10% |
Base Case |
+10% |
Spot Price Case |
| Copper |
US$/lb |
$4.59 |
$5.10 |
$5.61 |
$6.55 |
| Nickel |
US$/lb |
$7.20 |
$8.00 |
$8.80 |
$7.50 |
| Gold |
US$/oz |
$3,240 |
$3,600 |
$3,960 |
$4,320 |
| Platinum |
US$/oz |
$1,350 |
$1,500 |
$1,650 |
$1,785 |
| Palladium |
US$/oz |
$1,080 |
$1,200 |
$1,320 |
$1,310 |
| Silver |
US$/oz |
$40.50 |
$45.00 |
$49.50 |
$64.50 |
| Cobalt |
US$/lb |
$18.00 |
$20.00 |
$22.00 |
$24.90 |
| USD/CAD |
US$ |
$0.722 |
$0.722 |
$0.722 |
$0.730 |
| LOM Economics |
|
|
|
|
|
| Revenue LOM |
C$ million |
$1,405.2 |
$1,597.1 |
$1,788.9 |
$1,768.9 |
| Operating cash flow |
C$ million |
$498.2 |
$690.0 |
$881.9 |
$864.0 |
| Pre-tax cash flow LOM |
C$ million |
$254.1 |
$445.9 |
$637.8 |
$619.8 |
| After-tax cash flow LOM |
C$ million |
$195.2 |
$326.9 |
$458.4 |
$446.0 |
| Annual averages (commercial production) |
|
|
|
|
|
| Revenue |
C$M/year |
$186.3 |
$211.9 |
$237.4 |
$234.5 |
| Operating cash flow |
C$M/year |
$65.6 |
$91.2 |
$116.7 |
$114.1 |
| Pre-tax cash flow |
C$M/year |
$40.6 |
$66.2 |
$91.7 |
$89.1 |
| After-tax cash flow |
C$M/year |
$31.8 |
$49.3 |
$66.7 |
$64.9 |
| Net Present Value & IRR |
|
|
|
|
|
| Pre-tax NPV(7%) |
C$ million |
$174.3 |
$312.1 |
$449.9 |
$438.3 |
| After-tax NPV(7%) |
C$ million |
$132.3 |
$227.0 |
$321.6 |
$313.6 |
| Pre-tax IRR |
% |
73.8% |
107.7% |
137.4% |
136.6% |
| After-tax IRR |
% |
65.1% |
92.4% |
116.3% |
115.8% |
| Payback |
years |
0.8 |
0.6 |
0.4 |
0.4 |
| After-tax NPV(7%) / Initial Capex |
x |
1.9x |
3.2x |
4.6x |
4.5x |
| After-tax NPV(7%) with PMD |
C$ million |
$136.8 |
$232.1 |
$326.7 |
$318.6 |
| After-tax IRR with PMD |
% |
70.9% |
99.2% |
122.8% |
122.3% |
| |
|
|
|
|
|
Table 5: Base case After-tax NPV(7%) Sensitivity Analysis (C$ million)
| Change |
-20% |
-10% |
0% |
10% |
20% |
| Copper |
$160.3 |
$193.6 |
$227.0 |
$260.3 |
$293.7 |
| Nickel |
$139.5 |
$183.3 |
$227.0 |
$270.7 |
$314.4 |
| Metal prices |
$35.9 |
$132.3 |
$227.0 |
$321.6 |
$416.1 |
| Operating costs |
$315.7 |
$271.4 |
$227.0 |
$182.5 |
$138.0 |
| Capital costs |
$251.2 |
$239.1 |
$227.0 |
$214.9 |
$202.8 |
| |
|
|
|
|
|
Figure 5: Sensitivity Analysis
Mining, Processing and Infrastructure
As illustrated in Figure 6, existing infrastructure at Levack includes the No. 2 production shaft from surface to the 2,900 Level, an internal No. 3 shaft connecting the 1,500 Level to the 3,600 Level, and an internal ramp from the 1,800 Level to the 5,300 Level at historic gradients of up to 18%. Historic lateral development typically used 10 ft × 10 ft track-drift profiles in waste areas and 15 ft × 16 ft profiles in ramps and access ways. The current Levack ramp standard is 15 ft × 15 ft, which is the design basis for new lateral development in the PEA mine plan.
Long-hole open stoping and cut-and-fill are the two mining methods applied in the Levack PEA, consistent with methods used historically at the operation. Long-hole open stoping is the primary method applied to the Footwall Copper, Morrison, and the majority of the Contact Nickel zones. Cut-and-fill is applied to portions of Footwall Copper zones. Appropriate mining dilution and recoveries were applied to the design stopes depending on mining method used.
The PEA mine plan is built around Levack’s existing historic level infrastructure (including the 1200, 1300, 1400, 1500, 1600, 1800, 2450, 2650, 2900 and 3600 Levels). The overall mine layout integrates the Footwall Copper zones, the Contact Nickel zones, and the Morrison Footwall Cu-PGE deposit, the shaft and decline access network, and the material-handling and haulage system into a single operating configuration. Upper zones (No.1, No.2, Main and No.7) are contemplated to be trucked directly to surface through the new decline in 45 tonne trucks. The lower zones (No.3, IOB, 1900 Zone and 20 Pillar) are contemplated to report to a new rock breaker and loading pocket at the 2,650 Level and then hoisted up the No. 2 shaft. Material from the Morrison deposit is contemplated to be trucked up existing ramps to the 2,650 Level pocket. The mine plan applies the scheduled mining recovery and dilution factors and uses paste backfill. Development waste, including 10% overbreak, is retained in the physical and cost accounting; the model does not assume all development waste is retained underground. The paste plant is existing infrastructure retained on site at Levack, with a nameplate capacity of 200 tons per hour.
Once on surface, mineralized material will be reduced to a topsize of 1.5 inches via a contractor-operated surface crusher comprised of a combination of a jaw crusher and cone crusher and then subsampled via the onsite sampling tower with representative subsamples dispatched to the sample preparation and analytical laboratory. Production lots of approximately 2,000 to 4,000 tons of mineralized material will then be shipped to third party milling facilities located in Sudbury, Ontario.
Figure 6: Levack Mine Infrastructure and Geological Zones
Mineral Resource Estimate
The PEA potentially mineable resources are a subset of the current Levack Mine Mineral Resource Estimate (MRE) which were updated from the initial Levack Mine MRE announced on November 18, 2025. Updated resources include additional resources within the No.7 Contact Zone and additional mineralization in the Morrison Footwall deposit. Mineral Resources are based on a CuEq cut-off grade of 2.0% CuEq for Contact Nickel zones and 2.5% CuEq for Footwall Cu-PGE zones. Indicated and Inferred Mineral Resources are summarized in Tables 6 and 7 respectively. Appropriate mining dilution and recoveries were applied to the design stopes depending on the mining method used. Jonathan Cirelli, P.Geo, Senior Geologist of Orix Geoscience Inc. is an independent Qualified Person as defined by NI 43-101 and is responsible for the current Levack Mine MRE which incorporates diamond drill data up to a cut-off of August 31, 2025.
Table 6: Indicated resource summary
| Deposit Type |
Cut-off Grade CuEq % |
Short Tons |
Cu % |
Ni % |
Co % |
Pt (g/tonne) |
Pd (g/tonne) |
Au (g/tonne) |
Ag (g/tonne) |
CuEq % |
| Indicated |
| Contact |
2.00 |
7,455,000 |
0.83 |
1.46 |
0.05 |
0.42 |
0.51 |
0.06 |
0.92 |
3.09 |
| Footwall |
2.50 |
343,000 |
7.40 |
1.86 |
0.01 |
2.88 |
5.25 |
1.29 |
29.15 |
12.40 |
| Total Indicated |
|
7,798,000 |
1.12 |
1.48 |
0.05 |
0.52 |
0.71 |
0.12 |
2.16 |
3.50 |
| |
|
|
|
|
|
|
|
|
|
|
Table 7: Inferred resource summary
| Deposit Type |
Cut-off Grade CuEq % |
Short Tons |
Cu % |
Ni % |
Co % |
Pt (g/tonne) |
Pd (g/tonne) |
Au (g/tonne) |
Ag (g/tonne) |
CuEq % |
| Inferred |
| Contact |
2.00 |
5,294,000 |
0.86 |
1.47 |
0.04 |
0.39 |
0.40 |
0.05 |
0.67 |
3.08 |
| Footwall |
2.50 |
538,000 |
5.28 |
0.78 |
0.01 |
2.53 |
4.78 |
1.36 |
20.56 |
8.78 |
| Total Inferred |
|
5,832,000 |
1.27 |
1.41 |
0.04 |
0.58 |
0.80 |
0.17 |
2.51 |
3.61 |
| |
|
|
|
|
|
|
|
|
|
|
Levack Mineral Resource Estimate Notes:
-
-
- The effective date of the Levack Mine Mineral Resource Estimate is August 31, 2025. This is the close out date for the final mineral resource models and mine-out models.
- The mineral resources are reported at a cut-off grade of 2.00 % CuEq for Contact deposits and 2.50 % CuEq for Footwall deposits.
- Resource CuEq is calculated using metal prices of US$4.65/lb Cu, US$7.30/lb Ni, US$14.85/lb Co, US$1,225/oz Pt, US$1,135/oz Pd, US$3,100/oz Au, and US$39/oz Ag. Metal recoveries considered are 91 % for Cu, 85 % for Ni, 68 % for Co, 64 % for Pt, 69.5 % for Pd, 70.5 % for Au, and 70 % for Ag.
- The mineral resource was estimated by Jonathan Cirelli, P.Geo. of Orix Geoscience Inc. and is an independent Qualified Person as defined by NI 43-101. Two recent site visits were conducted on July 9th (surface) and November 18-20th, 2025 (surface and underground).
- The classification of the current Mineral Resource Estimate (MRE) into Indicated and Inferred mineral resources is consistent with current 2014 CIM Definition Standards – For Mineral Resources and Mineral Reserves.
- All figures are rounded to reflect the relative accuracy of the estimate and numbers may not add due to rounding.
- The mineral resources are presented undiluted and in situ, constrained by diamond drillhole information and previous underground geological mapping, and are considered to have reasonable prospects for eventual economic extraction. The mineral resource is exclusive of mined out material. The drillhole database includes data from 10,525 surface and underground diamond drill holes completed between 1911 and 2025. The drilling totals 4,382,756 ft (1,335,864 m) including 341,394 assay intervals representing 1,393,512 ft (424,742 m) of data.
- Mineral resources which are not mineral reserves do not have demonstrated economic viability. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that most Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
- Grades for Ni, Cu, Co, Pt, Pd, Au, and Ag are estimated for each mineralization domain using ~2.0 ft (0.61 m), 2.5 ft (0.76 m), or 5.0 ft (1.52 m) composites assigned to that domain, depending on the style of mineralization. To generate grade within the blocks, the inverse distance squared (ID2) interpolation method was used for all domains. Samples were capped before compositing when required.
- Reliable density measurements were available for 21 % of the samples in the drillhole database (71,712 measured samples) allowing for zone-specific Ni and Cu-based regression formulas to be created and applied to estimate missing densities.
- The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Additional Opportunities
As the potentially mineable resources in the Levack PEA are a subset of the updated Levack MRE, the R2 Footwall Zone is not included in the PEA mining inventory, production profile, or the economic analysis as it has yet to be included in an MRE. The R2 Footwall Zone represents a new high grade, copper and precious metals-rich massive sulphide footwall vein system located approximately 600 metres northeast of the Morisson Footwall Cu-PGE deposit at Levack Mine. It was discovered via surface drilling in July 2025. Recent drilling at the R2 Footwall Zone has returned assay results up to 9.4% Cu, 2.3% Ni, 28.7 g/t Pt+Pd+Au, 52.9 g/t Ag (29.7% CuEq) over 3.4 metres in drillhole MLV-26-14A W1 (see news release dated June 22, 2026), and 9.5% Cu, 2.6% Ni, 17.5 g/t Pt+Pd+Au, and 24.9 g/t Ag (23.5% CuEq) over 2.1 metres in drillhole FNX2038-W1 (see news release dated September 17, 2026). All lengths are downhole length and true widths are highly variable and estimated to range from 30-80% of downhole length. There are currently three underground drill rigs testing the R2 Footwall Zone, including two on the new 2950 Level exploration drift which extends to within approximately 300 metres of the R2 Footwall Zone. Additional assay results will be released in due course. The R2 Footwall mineralisation may provide an opportunity for future evaluation.
Restart Decision
Based on the results of the PEA prepared in accordance with NI 43-101 Standards of Disclosure for Mineral Projects, authored by independent and experienced Qualified Persons, the Company’s Board of Directors has formally approved the plan to restart production at the Levack Mine. This work will include rehabilitating and recommissioning existing underground infrastructure and equipment, advancing the refurbishment of the production hoist and loading pocket as well as establishing underground access and exploration platforms.
The Company advises that it has not based its restart decision on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit.
Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved.
Failure to commence production would have a material adverse impact on the Company’s ability to generate revenue and cash flow to fund operations. Failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability.
The Company further cautions that the PEA is preliminary in nature. Mineral resources, of which 2.1 million short tons considered within the PEA are classified as inferred mineral resources, are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized.
Technical Report Filing
The technical report in support of the above noted PEA will be filed by Magna Mining within 45 days of this news release.
Qualified Person
The PEA was prepared by AGP Mining Consultants Inc. (“AGP”), with contributions from Orix Geoscience Inc. (“Orix”), Qualitica Consulting Inc. (“Qualitica”), Libertas Metallurgy Limited (“Libertas”) and Magna Mining Inc. The scientific and technical information in this news release has been reviewed and approved by the following Qualified Persons, as defined by NI 43-101, each for the parts of the PEA for which they are responsible:
- AGP Mining, represented by Julian Herbert, P.Eng., Senior Underground Mine Engineer, and Rodrigo Pasqua, FAusIMM, Senior Underground Mine Engineer, and Gordon Zurowski, P.Eng., Principal Mine Engineer are all independent Qualified Persons and are responsible for mining methods, the mine plan and production schedule, project infrastructure, capital and operating costs, economic analysis, environmental studies, permitting and social or community impact.
- Jonathan Cirelli, P.Geo., Senior Geologist, Orix, an independent Qualified Person, is responsible for the geology, exploration, drilling and data verification, and the Levack Mine MRE.
- Chantal Jolette, P.Geo., President, CEO and Principal Geologist, Qualitica, an independent Qualified Person, is responsible for sample preparation, analyses and security.
- David Middleditch, B.Eng., MIMMM, President and Principal Metallurgist, Libertas, an independent Qualified Person, is responsible for mineral processing, metallurgical testing and recovery methods.
Mr. Cirelli conducted personal inspections of the site on July 9, 2025 (surface) and November 18–20, 2025 (surface and underground). Mr. Herbert and Mr. Zurowski conducted a personal inspection of the site on February 9, 2026.
The scientific and technical information in this press release has been reviewed and approved by David King, M.Sc., P.Geo. Mr. King is the Senior Vice President, Exploration and Geoscience for Magna Mining Inc. and is a qualified person under National Instrument 43-101.
Cautionary Statement on Forward-Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this press release constitute “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology, such as “may”, “might”, “potential”, “expect”, “anticipate”, “estimate”, “believe”, “could”, “should”, “would”, “will”, “continue”, “intend”, “plan”, “target”, “forecast”, “prospective”, “significant”, “robust”, “rapid” or other similar words or phrases or variations thereof. Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable by management at the time forward-looking statements are made, are inherently subject to business, market, economic, technical and other risks, uncertainties and contingencies that may cause actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements, including risks and uncertainties relating to the failure of additional drilling and assays to support assumptions, expectations or estimates of potential mineralization, metal tonnes or grade, such as in the R2 Footwall Zone, the failure of additional drilling to support additional expansion or delineation of estimated resources, the failure to have accurately estimated declared mineral resources or mineral reserves, the failure of additional drilling to support production planning or replenish production , the failure to maintain an adequate rate of development or access to stopes to maintain production, the failure to realize expected or anticipated production rates, mine life, operating and capital costs, recoveries, processing methods, economic returns, cash flows, net present value, internal rate of return, payback period, government funding or tax incentives, commodity prices, exchange rates, future production, development and operating plans or expansions, permitting and project schedules or timelines, the lack of availability of drill rigs to implement exploration or other programs or the failure to proceed as quickly as planned with additional exploration, development, production or other drilling, continued delays for assay results, the failure to bring the Levack mine back into commercial production subsequent to the completion of the PEA because of funding or technical issues, and other risks disclosed in the Company’s most recent annual information form for the year ended December 31, 2025, available on the SEDAR+ website (at: www.sedarplus.ca). The PEA is preliminary in nature and there can be no assurance that the conclusions or estimates in the PEA that are subject to further evaluation and refinement or the economic results anticipated therein will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability and, particularly, inferred mineral resources, on which the PEA is based, are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Although the Company has attempted to identify important risks, uncertainties, contingencies and factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, there can be no certainty or assurance that the Company has accurately or adequately captured, accounted for or disclosed all such risks, uncertainties, contingencies or factors. Readers should place no reliance on forward-looking statements as actual results, performance or achievements may be materially different from those expressed or implied by such statements. Resource exploration and development, and mining operations, are highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge will not eliminate. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update any forward-looking statements, whether as a result of new information or future events or otherwise, except in accordance with applicable securities laws.
About Magna Mining Inc.
Magna Mining Inc. is a producing mining company with a strong portfolio of copper, nickel, and precious metals assets located in the world-class Sudbury mining district of Ontario, Canada. The Company’s McCreedy West Mine is currently in production and the adjacent Levack Mine is being restarted. These operations are supported by a pipeline of highly prospective past-producing properties including Crean Hill, Podolsky, and Shakespeare.
Magna Mining is strategically positioned to unlock long-term shareholder value through continued production, exploration upside, and near-term development opportunities across its asset base.
Additional corporate and project information is available at www.magnamining.com and through the Company’s public filings on the SEDAR+ website at www.sedarplus.ca.
For further information, please contact:
Jason Jessup
Chief Executive Officer
or
Paul Fowler, CFA
Executive Vice President
705-482-9667
Email: info@magnamining.com
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