Blue Moon Metals signs Springer tungsten mill refurbishment contract
RAM's work includes electrical upgrades and commissioning support, with mill refurbishment targeted for the fourth quarter of 2027.
Theo Marchetti
Blue Moon Metals Inc. CVEMOON NASDAQBMM, listed on the TSX Venture Exchange and Nasdaq, contracted RAM Enterprise Inc. to refurbish Nevada's Springer tungsten mill, targeting fourth-quarter 2027 completion, it said Monday. Blue Moon is targeting a late-2027 restart at the tungsten-molybdenum project.
The Oct. 26 release does not disclose the refurbishment contract's price or payment schedule. Management's April 27 preliminary internal estimate put the broader Springer restart cost at US$50 million, distinct from the newly announced contract.
Shares closed 1.65 per cent higher at C$5.55 on the TSX Venture Exchange at 4 p.m. EDT on Oct. 26, according to Google Finance's CVEMOON snapshot.
Blue Moon also announced an agreement to buy nearby worker accommodations for US$1.7 million in cash. The purchase agreement was executed on Oct. 5, with closing expected in December 2026.
Refurbishment Includes Commissioning Support
The announced contractor scope covers assessment and refurbishment of the processing plant and supporting infrastructure. It includes electrical and instrumentation upgrades, along with commissioning and start-up support.
Blue Moon also engaged an owner's engineer to provide independent review and oversight of design, procurement and construction. That role includes reviewing contractor deliverables, costs, schedules, quality and commissioning readiness.
The accommodations property currently operates as a recreational vehicle park, with 31 RV sites and five mobile home sites serviced by septic, power and water systems. Blue Moon intends to house employees and contractors there during construction.
The company will evaluate further expansion, including a previously permitted addition of 14 RV sites. The property is approximately seven miles from the mill by road.
"Springer is being advanced to help restore that domestic supply of a metal vital to industry and national defense," Blue Moon president and chief operating officer Skott Mealer said in the release.
Earlier Approvals Allow Construction
Blue Moon reported on Aug. 20 that Nevada's Division of Environmental Protection had transferred the project's water pollution control and reclamation permits into its name. It also said its reclamation closure bond had been approved and posted, authorizing construction activities, including refurbishment of the existing mill.
The company said approval of the tailings facility's Notice of Construction arrived on Aug. 18, allowing tailings dam construction to begin.
In its April 27 release, Blue Moon cautioned that the production decision was made without a current feasibility study of mineral reserves demonstrating economic and technical viability. It warned that projects advanced on that basis carry a higher risk of economic and technical failure.
Elsewhere in the Western tungsten restart pipeline, Tungsten West plc LONTUN said on Sept. 15 that ore processing had begun at its Hemerdon tungsten and tin mine in Devon, Britain. It said operations would progressively ramp up toward targeted steady-state production.
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Blue Moon expects to close the accommodations purchase in December 2026, securing the property intended to house construction crews. Mill refurbishment completion is targeted for the fourth quarter of 2027.
