Magna Mining has approved a C$70 million restart of the Levack nickel-copper mine near Sudbury, Ontario, with commercial production targeted for mid-2028. The project is intended to join Magna’s producing McCreedy West mine and build a two-mine operation around Sudbury’s existing infrastructure.
A preliminary economic assessment values Levack at $227 million after tax using a 7% discount rate and forecasts a 92% after-tax internal rate of return.
Levack last operated in 2018, but much of its infrastructure has been maintained because it provides secondary access for McCreedy West and nearby mines. Restart work includes rehabilitating underground workings and equipment, refurbishing the production hoist and loading pocket, and creating access and drilling platforms. Magna plans to send material to third-party mills in Sudbury.
The investment exceeds Desjardins analyst Bryce Adams’ C$44 million capital estimate, while the project’s after-tax value is below his $497 million estimate at comparable metal prices. Adams said the production plan for the Contact nickel zones was stronger than modeled, while the assessment excludes R2, a copper and precious-metals discovery without a resource estimate. Three underground rigs are testing R2, and further drilling and resource conversion could extend the mine life and improve economics.
Magna ended June with C$40 million in cash and equivalents before Alpayana invested C$140 million for a 20% stake. The company says it can fund Levack’s initial capital from its balance sheet, but it is proceeding without a feasibility study or mineral reserves demonstrating economic viability, leaving technical and economic execution risk in the restart plan.