Jim's Mining Letter - December 11, 2024

Greatland Gold (GGP.L GRLGF G8G.F) announced an update on operations at its Telfer gold-copper mine. On 8 December 2024, the first gold bars under Greatland ownership were poured at Telfer. Greatland completed its acquisition of Telfer and Havieron from Newmont Corporation on 4 December 2024. Prior to completion, processing operations were utilising only one of the two nominal 10 million tonnes per annum processing trains, preserving Telfer ore and stockpiles for Greatland to process after completion. Shortly following completion of the acquisition, Greatland resumed dual-train processing operations. An estimated 30.5 million tonnes to 34.5 million tonnes of stockpiles were acquired by Greatland on completion. The stockpiles include an estimated 11.5 million tonnes of high-grade run-of-mine grade ore stockpiles, plus a further estimated 19.0 to 23.0 million tonnes of low grade stockpiles. Mining is continuing in the West Dome open pit and Main Dome underground. Greatland has purchased gold put options in respect of 150,000 ounces of Telfer gold production volumes at an average strike price of A$3,905.17 per ounce.

Southern Cross Gold (SXG.ASX) announced drill results from the Apollo prospect at its Sunday Creek gold-antimony project. The discovery includes 186 meters at 8.8 grams per tonne gold, with a peak of 2,541.9 grams per tonne gold over 0.5 meters. These intersections rank among the most impressive gold intercepts reported globally in recent years. Sunday Creek also is on track to become one of the most significant antimony projects in the Western world. China last week increased supply pressure, imposing an ban on exports of antimony to the United States. This positions the project as one of the few significant future antimony sources in the Western world at a time when defence supply chains face mounting pressure sourcing antimony and other critical metals. Further drill results from 14 holes are pending, with a large exploration program ongoing…more

Neo Energy Metals (NEO.L) announced that it has entered into a sale and acquisition agreement with Sibanye Stillwater (SBSW) to acquire a 100% interest in the Beatrix 4 mine and shaft complex, the processing plant complex and associated infrastructure located in the Witwatersrand Basin, in the Free State Province of South Africa. On completion of the transaction, Sibanye-Stillwater will become the company's largest shareholder with an approximate 40% shareholding and have the right to appoint directors to the board. Sibanye-Stillwater will also hold pre-emption rights of first refusal in respect of any proposed new equity issuance by the company, in order to maintain its strategic shareholding. The project, which has total SAMREC code compliant measured uranium and gold resources of 8.5 million pounds and 0.4 million ounces respectively and further indicated resources of 18.3 million pounds of uranium and 0.8 million ounces of gold, has been subject to various pre-feasibility and development studies.

Mithril Silver and Gold (MTH.ASX MSG.V) announced an update for current drilling at the Target 1 area and the program for 2025 at its Copalquin Silver-Gold District project, Durango State, Mexico. The second stage of the 9,000 metre drill program recently commenced on the eastern side of the Target 1 resource area at El Cometa where drill hole CDH-159 intercepted 33 metres from surface at 31.8 grams per tonne gold and 274 grams per tonne silver (including 7 metres at 144 grams per tonne gold and 1,162 grams per tonne silver from 18 metres). Approximately 1,500 metres of core drilling have been completed since restarting in November after a scheduled break for drill maintenance and drill hole location update. The first two holes of this second stage of the campaign are at the laboratory, the next has left site, two more are being logged and sampled and a sixth hole is commencing, all on the eastern side of the Target 1 area at El Cometa where the company is expanding the resource footprint. The Target 1 area maiden resource update is on schedule for end of Q1 2025. The municipal access road upgrade is progressing well and on schedule for completion late March 2025 by which time drilling is scheduled to commence at the first of two further advanced target areas in the district. The road upgrade and current site preparations will facilitate the significantly expanded and fully funded exploration activities (A$12.5m was raised on 28 October 2024), which includes completion of around 40,000 metres of additional drilling by the end of 2025…more

Endeavour Mining (EDV.L EDV.TSX EDVMF 6E2.F) announced that it has recently completed a positive pre-feasibility study for the Assafou-Dibibango project on the Tanda-Iguela property in Côte d’Ivoire. The study results meet Endeavour’s strategic targets and confirm Assafou’s potential to be a tier 1 asset, which justifies advancing the project to the definitive feasibility study stage. Per Ian Cockerill, CEO, the company has defined a large, low-cost and long mine life project, capable of producing 330,000 ounces of gold a year over the first ten years, while remaining in the lowest cost quartile. All in sustaining costs are $892 per ounce. Project economics are said to be robust with an after-tax NPV5 of $1.526 billion and an IRR of 28% at a $2,000 per ounce gold price…more

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These are opinions only of the individual author. The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company. All content is purely subjective and you should do your own due diligence. No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made. Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved. No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece. The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.

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