BMC Minerals Obtains 25-Year Type B Water Licence and Exploration Approvals to Propel Yukon ABM Mine Development

Water and Exploration Permits Advance ABM Mine Development

On 21 July 2026, BMC Minerals announced receipt of two crucial regulatory approvals from Yukon authorities that advance the permitting process for the ABM Mine at the KZK Project. The Yukon Water Board issued a 25-year Type B Water Licence authorizing potable water use and wastewater disposal for camp and office facilities throughout construction, operation, reclamation, and closure phases. This licence is a key intermediate regulatory milestone, with the company also pursuing a Type A Water Licence for mining and processing water use.

Simultaneously, the Yukon Government's Department of Energy, Mines and Resources granted a five-year Class 3 Quartz Mining Land Use Approval. This permits exploration drilling of up to 120,000 metres from as many as 400 sites, in addition to ground-based and airborne geophysical surveys such as gravity and UAV magnetics, plus surface geochemical surveys. This approval supports BMC’s strategy to expand the mineral resource base and test additional multi-component targets near the proposed ABM Mine.

KZK Project’s Resource Base and Economic Viability

Located approximately 260 kilometres east of Whitehorse, the 372-square-kilometre KZK Project has been wholly owned by BMC since 2015. The project hosts significant mineral resources at the ABM and copper-rich Kona deposits. Technical studies focus on a nominal 2 million tonnes per annum mining operation, with about 89% of ore reserves extracted via open pit mining and an underground mine accessing deeper zones.

The 2023 Economic Update to the Feasibility Study, based on conservative commodity prices, estimates a pre-tax NPV7% of US$835 million and a capital payback period near two years. Annual production over nine years is expected to average 32.2 million ounces of silver equivalent at All-In Sustaining Costs below US$12 per ounce. Initial capital expenditure is estimated at US$492 million. The mine will produce three concentrates: precious metals, copper, and zinc.

Robust Mineral Reserves and Resource Confidence at ABM and Kona

BMC’s mineral reserves total 15.7 million tonnes across the ABM and Krakatoa zones, including 14.0 million tonnes of open pit reserves grading 136 g/t silver, 1.3 g/t gold, 5.9% zinc, 0.9% copper, and 1.6% lead, plus 1.7 million tonnes underground reserves at 147 g/t silver and 1.3 g/t gold with lower base metals. The ABM deposit also contains 18.3 million tonnes of indicated mineral resources at 148 g/t silver and 1.4 g/t gold, indicating resource potential beyond reserves.

The Kona deposit holds 2.1 million tonnes of indicated and 6.7 million tonnes of inferred copper-rich mineral resources, offering optionality for future development. Total indicated resources for ABM stand at 19.1 million tonnes, with 0.8 million tonnes inferred, underpinning BMC’s exploration and development plans supported by recent approvals.

Binding Offtake Agreements Ensure Market Stability for Concentrate Output

BMC has secured binding offtake agreements covering 95% of the first five years of production for all three concentrate products from the ABM Mine. These agreements provide strong market certainty and mitigate revenue risks during initial operations, validating the project’s economic feasibility and product quality.

The agreements span precious metals, copper, and zinc concentrates, reflecting the polymetallic nature of ABM and diversifying revenue streams. Securing these contracts ahead of the Final Investment Decision signals positive momentum for project financing and development.

Regulatory Milestones Pave Way to Final Investment Decision

The July 2026 approvals for the Type B Water Licence and Class 3 Exploration permit mark significant risk reductions for the KZK Project. These validate BMC’s technical and environmental management and demonstrate effective navigation of Yukon’s regulatory framework. Remaining major permits include the Type A Water Licence, Quartz Mining Licence, Fisheries Authorization, and several ancillary permits.

CEO Michael McClelland emphasized that these approvals "meaningfully de-risk the development pathway at KZK and represent an important step on the critical path towards a Final Investment Decision." The Type B Water Licence issuance confirms independent regulatory endorsement of the project’s water management across its lifecycle.

Exploration Programs Target Resource Growth and Mine Life Extension

The Class 3 Quartz Mining Land Use Approval authorizes an extensive five-year exploration program, including up to 120,000 metres of drilling from 400 sites. This capacity enables definition and step-out drilling to follow up on high-grade intercepts and explore multi-component targets near ABM, aiming to expand resources and extend mine life.

Authorized activities also include ground and airborne geophysical surveys (gravity and UAV magnetics) and surface geochemical sampling to generate additional targets across BMC’s tenure. The five-year timeframe supports systematic exploration to inform resource updates and potential reserve expansions, reflecting confidence in the broader KZK geological prospectivity beyond ABM and Kona deposits.

Yukon’s Regulatory Oversight Ensures Environmental and Community Standards

The Yukon Water Board, an independent tribunal under the Yukon Waters Act, issued the Type B Water Licence, ensuring comprehensive environmental and socio-economic assessments are integrated into water use approvals. This process maintains transparency and stakeholder accountability.

The Class 3 Quartz Mining Land Use Approval was granted by the Yukon Government’s Department of Energy, Mines and Resources, illustrating coordinated multi-agency regulation balancing resource development with environmental and community safeguards. These approvals confirm BMC’s compliance with Yukon’s stringent regulatory standards.

Development Schedule and Pending Permitting Steps

Following the recent approvals, BMC continues advancing key permits including the Type A Water Licence for mining and processing water, Quartz Mining Licence for mineral extraction, and Fisheries Authorization for aquatic impact management, alongside various ancillary permits. The company’s systematic approach indicates a structured timeline toward regulatory compliance.

Progress on these permits is critical to reducing development risk and enabling a Final Investment Decision and project financing. BMC’s timely achievement of the Type B Water Licence and exploration approval demonstrates effective execution in permitting. Investors should watch for updates on the Type A Water Licence and Quartz Mining Licence as near-term milestones. The company has not disclosed timelines for remaining approvals in its latest update.

Strategic Asset with Long-Term Growth and Shareholder Value Potential

BMC’s KZK Project is a prominent junior mining asset featuring 372 square kilometres of tenure with multiple mineralized zones and a clear development path. Since acquisition in 2015, the project has advanced through feasibility and regulatory stages over more than a decade. The 2023 Economic Update’s US$835 million pre-tax NPV and approximately two-year capital payback at conservative prices present a strong investment case for the Final Investment Decision.

The polymetallic ABM deposit, producing silver, gold, copper, zinc, and lead concentrates with binding offtake agreements, offers revenue diversification and market validation. Exploration upside at Kona and across KZK, supported by the five-year drilling approval, provides potential for resource growth and mine life extension. KZK’s positioning as a near-term development project with multi-year exploration optionality offers prospects for both immediate production value and long-term expansion. The company has not provided expected timelines for Final Investment Decision or construction commencement in its latest update.