BMC’s $1B Kudz Ze Kayah zinc-copper project: design and risk lens for engineers
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Drilling at BMC Minerals’ Kudz Ze Kayah project in Yukon has intersected thick, high-grade massive sulphides in the Krakatoa zone, with hole K26-560 cutting 25.1 metres at 180 g/t silver, 9.7% zinc, 1 g/t gold, 0.3% copper and 3.4% lead from 327.5 metres, confirming 2016 intercepts such as 20.8 metres at 218 g/t silver and 8.6% zinc. The project now has positive Yukon and federal decision documents, a 2023 feasibility study outlining a US$835 million pre-tax NPV (7%), 42% IRR, nine-year mine life and US$492 million pre-production capex, but faces continued opposition from Kaska Nation groups over caribou and environmental impacts as BMC targets a final investment decision in late 2027.
Technical Brief
- Kudz Ze Kayah’s 2025 indicated resource totals 18.3 Mt at 148 g/t Ag, 6.3% Zn, 1.4 g/t Au, 0.9% Cu, 1.9% Pb.
- Inferred resources add 0.8 Mt at 143 g/t Ag, 7.2% Zn, 1.2 g/t Au, 1.0% Cu, 1.7% Pb.
- ABM’s 2023 probable reserve stands at 15.7 Mt grading 138 g/t Ag, 5.8% Zn, 1.3 g/t Au, 0.9% Cu, 1.7% Pb.
- Contained metals in indicated resources include 87 Moz Ag, 1.1 Mt Zn, 827 koz Au, 164 kt Cu, 346 kt Pb.
- The 2023 reserve-based estimate for ABM alone contains 70 Moz Ag, 915 kt Zn, 666 koz Au, 136 kt Cu, 266 kt Pb.
- Current campaign is a 20,000 m drill programme targeting resource and reserve growth around the ABM–Krakatoa area.
- KZK is permitted through Yukon and federal decision documents following YESAB’s 2020 recommendation and subsequent 2022, 2024 decisions.
Our Take
BMC Minerals’ current A$468 million market capitalisation versus the Kudz Ze Kayah pre-tax NPV of US$835 million suggests equity markets are still applying a steep Yukon and permitting discount, leaving room for a potential re-rating if the late-2027 development timeline firms up.
The A$100 million oversubscribed IPO noted in our December 2025 coverage of BMC Minerals indicates that investors have already signalled strong appetite for Yukon zinc-copper exposure, which may ease future equity raises needed to fund the US$492 million pre-production capex at KZK.
With Kudz Ze Kayah and Fireweed Metals’ Macpass both zinc-rich projects in Yukon, the combined indicated resources and contained metal in our database point to this territory emerging as one of the more substantial undeveloped zinc districts in recent Mining–Projects coverage.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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