Blue Moon's VMS Deposit: A Robust Investment Opportunity with 38% After-Tax Base Case IRR

Blue Moon Metals Inc. (TSX-V: MOON, OTCQB: BMOOF) has announced the results of the Preliminary Economic Assessment (PEA) for its 100% owned Blue Moon Project, located in central California. The project hosts the largest known polymetallic volcanogenic massive sulfide (VMS) deposit of its type within the Foothills Massive Sulfide Belt of California, with an indicated resource of 3.51 MT grading 11.07% Zinc equivalent (ZnEq) and an inferred resource of 3.83 MT grading 10.71% ZnEq using a cut-off grade of 4.0% ZnEq. The PEA results are robust, with an after-tax base case IRR of 38% and an impressive 48% IRR using spot prices.

The high IRR can be attributed to several factors, including the project's high-grade resource, low capital intensity, favorable metallurgy, existing local infrastructure, and the potential for fast-track development. The project's similarities to Adriatic Metals plc's Vares deposit and mine, which went into production in 2024 on a fast-track, further validate the potential for accelerated development.

The preliminary ramp design for underground access, as proposed in the PEA, is expected to offer several advantages over the earlier Westmin shaft concept. These advantages include accelerated development, potentially lower cost, and reduced risk. The ramp design allows for faster access to the deposit, enabling accelerated development, and may result in lower construction and maintenance costs. Additionally, the ramp design may significantly reduce the cost and risk of an infill exploration program to upgrade the resources to reserves in due course.

Blue Moon Metals' plan to fast-track the development of the Blue Moon Project, pending a positive PEA result, is supported by the high IRR and the project's similarities to the Vares deposit and mine. The project's potential for significant value creation for shareholders and contribution to the economic development of the region further enhances its attractiveness as an investment opportunity.

In conclusion, the Blue Moon Project's robust PEA results, with an after-tax base case IRR of 38% and an impressive 48% IRR using spot prices, make it an attractive investment opportunity in the region. The project's high-grade resource, low capital intensity, favorable metallurgy, existing local infrastructure, and potential for fast-track development contribute to its strong economic viability. The preliminary ramp design for underground access offers several advantages over the earlier Westmin shaft concept, further enhancing the project's potential for accelerated development and reduced risk. Blue Moon Metals' plan to fast-track the development of the Blue Moon Project, pending a positive PEA result, supports the project's potential for significant value creation for shareholders and contribution to the economic development of the region.