Jim's Mining Letter - December 8, 2024

Own a stake in Alaska’s oil reserves.

• Estimated 300 million barrels of recoverable reserves

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• Projected 25+ years of reliable, high-margin royalty income

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Amaroq Minerals (AMRQ.V AMRQ.L AMRQF 72Q.F) announced its intention to conduct a placing and subscription to raise gross proceeds of approximately £20 million (C$35.6 million) at a price of 86 pence (C$1.53) per share. Net proceeds from the fundraising will be used for working capital flexibility to progress growth investment opportunities while Nalunaq goes through ramp-up, further resource drilling with the intention to expand the resource and provide mining flexibility, further exploration drilling to define resource potential and the development opportunity and investments in mining equipment, other facilities and green energy production to further optimise operations, plus the advancement of the company’s strategic minerals business, alongside JV partners, with further targeted exploration…more

Collective Mining (CNL CNL.TSX GG1.F) announced that it has discovered an extension to the Apollo system on the northeastern flank at depth and as a result opens the possibility for major expansion growth along the northern side of the system. The Apollo system is the flagship discovery within the company's multi-target Guayabales project in Caldas, Colombia. Collective currently has five drill rigs operating as part of its fully funded and on-schedule 40,000 metre drilling program for 2024. A fully funded 60,000 metre drill program is planned for 2025, which will be the largest drilling campaign in the history of the company. Approximately 101,000 metres of diamond drilling has been completed to date at the Guayabales project, including 67,000 metres at Apollo. There are currently 25 drill holes awaiting assaying with results for the majority of these holes expected prior to year-end 2024…more

Gem Diamonds (GEMD.L GMDMF ZVW.F) announced a revised life of mine plan for the Letšeng mine, significantly reducing waste-stripping costs. The plan features a steeper slope design for the Satellite pit and the new design reduces the ore to waste stripping ratio from 1:6.9 to 1:2.1, cutting future waste-stripping costs by approximately $180 million. The company also is assessing further opportunities to access additional ore with minimal waste stripping and the revised plan includes measures such as catchment fences and rockfall barriers to ensure safer operations. Additionally, the group's revolving credit facilities, totalling $71.7 million, have been extended until December 2026.

McEwen Mining (MUX MUX.TSX) announced new assay results from its Grey Fox deposit, part of the Fox complex located in the Timmins region of Ontario, Canada. Grey Fox is located in the southern part of the Black Fox property and comprises six zones, known as Gibson, Whiskey Jack, Contact, 147, 147NE and Grey Fox South. High-grade drill hole results include: 10.2 grams per tonne gold over 11.1 metres at Whiskey Jack. Geological investigations are said to demonstrate similarities between the Grey Fox deposit and the Hishikari gold mine. An updated mineral resource estimate for the entire Fox complex will be released in Q1 2025, including Grey Fox with a current resource of 1.4 million indicated and inferred gold ounces and Stock with a current resource of 0.46 million indicated and inferred gold ounces. The Hishikari gold mine in Japan to which Grey Fox is compared is one of the richest gold mines in the world, in production since 1985. To date, the mine has produced 8.6 million ounces of gold, with an average grade of 30-40 grams per tonne gold.

Cadence Minerals (KDNC.L RARMF 2REA.F) announced an updated pre-feasibility study for the Amapá iron ore project, increasing the post-tax NPV by 73% to $1.97 billion. The project is expected to generate $9 billion in gross revenues over its 15 year mine life and the revised processing plant design aims to produce 67.5% Fe DR-grade iron ore concentrate. Pre-production capital is estimated at $377 million, with a reduced payback period of 3 years. The project will use 100% renewable energy sources to achieve a low carbon footprint. Cadence Minerals owns a 34.6% equity stake in the Amapá project.

Vox Royalty (VOXR VOXR.TSX) announced the receipt of first revenues from its Castle Hill and Bulong gold royalties in Western Australia from operating partners Evolution Mining and Black Cat Syndicate. Additionally, the company anticipates inaugural royalty revenues from its Otto Bore gold royalty in Q4 2024 or Q1 2025 from Northern Star Resources. These three royalties alone are expected to contribute approximately $3 - $4 million in gold-related royalty revenue in 2025. Vox is a mining royalty company with a portfolio in six jurisdictions. Since the beginning of 2020, the company has announced over 30 separate transactions to acquire over 60 royalties.

Orosur Mining (OMI.V OMI.L UR2.F) announced results from its first drill hole, PEP012, at the Pepas prospect in Colombia. Assays show 66.75 metres at 5.64 grams per tonne gold from surface. The second drill hole, PEP013, has been completed, with samples submitted for assay, and drilling for the third hole, PEP014, is set to commence soon. The company says it aims to assess the continuity of gold mineralization and understand the geological controls at the Pepas prospect. The Anzá project is now fully owned by Orosur after acquiring shares from Minera Monte Aguila, increasing the project area to over 400 km2…more

Sunrise Resources (SRES.L S4D.F) announced an update for its two natural pozzolan projects in Nevada. The CS project, located in south central Nevada, is "mine-ready" with key operating permits already in place covering 14.5 million tons of pozzolan and 1.3 million tons of perlite. An additional area, the Northeast Zone, presents a large additional target for natural pozzolan. Pozzolan extraction from the CS Project is aimed at the cement and concrete markets of southern California. The Hazen project is an earlier stage project and is located close to Reno in northern Nevada and pozzolan extraction from this project is expected to serve markets in northern Nevada and northern California. For some time now, the company has been in discussions with various groups with the objective of securing investment and material offtake agreements for the development of both projects. These discussions usually involve extensive testing programmes to evaluate the performance of a specific pozzolan when blended with proprietary cements and/or cement blends. Currently, discussions and testwork are progressing with four separate groups: a large multinational cement company that has extensive cement and ready-mix businesses in the western USA; an existing multinational industrial minerals producer looking to produce various cementitious materials for the mining industry; an established industrial minerals company which is considering use of Sunrise’s natural pozzolan as a beneficial additive to their existing planned production of cementitious materials; and a private group looking for opportunities to establish a new natural pozzolan grinding facility in Nevada. The nature of the discussions, and possible deal structures, are different in each case, reflecting the different objectives of the interested parties. Ongoing discussions have included simple offtake arrangements, joint production arrangements and the outright sale of the projects. Some discussions relate to just one of the pozzolan projects, others to both.

Lexington Gold (LEX.L XX40.F) announced an update relating to its Ventersburg gold project in the Free State Province, South Africa, based on the findings of a detailed technical report prepared by Shango Solutions, an independent geological consultancy firm based in South Africa. The project's independently calculated exploration target is estimated at 1.39 - 3.55 million ounces of contained gold at grades between 2.82 grams per tonne and 3.44 grams per tonne. Potential uranium and silver by-products also are identified, based on the exploration results of neighbouring projects and consistent with historical data from the Witwatersrand Basin. Lexington Gold says that the company and its BBBE partner, Letsema Holdings, are in discussions with Gold One Africa to explore the potential consolidation of the Ventersburg goldfield, by aligning the adjacent properties to maximise resource and operational efficiencies.

Thesis Gold (TAU.V THSGF 0110.F) announced that due to strong investor demand the company has agreed to increase the size of its previously announced C$7 million best-efforts marketed equity private placement. The offering will now consist of up to 16,666,667 shares at a price of C$0.60 for gross proceeds of up to approximately C$10 million. Thesis intends to use the net proceeds raised from the offering to fund advancement of the company’s mineral projects and for general working capital purposes. The offering is scheduled to close on or before December 17, 2024…more

Power Nickel (PNPN.V PNPNF IVV.F) announced that shareholders have approved the plan of arrangement pursuant to which the company's interest in the Golden Ivan property, along with certain Chilean exploration assets and liabilities, will be spun out to Power Nickel shareholders through the shareholders receiving common shares in Chilean Metals, a wholly owned subsidiary of the company. In addition, the company obtained a final order from the Supreme Court of British Columbia which was a condition to enable closing of the arrangement. The spin-out will provide investors with an ownership stake in two separate specialized companies. Power Nickel will continue to focus on the advancement of the Nisk project, while Spinco will focus on advancing the Golden Ivan property and the Chilean assets. Additionally, the company believes the spin-out will pose challenges to the naked short sellers that it claims have been selling its shares and not closing their share sales by delivery of the stock. Power Nickel says it has been investigating and finding evidence of significant and ongoing stock imbalances, which occur when a broker has fewer shares in its account than its customers own…more

29Metals (29M.ASX) announced that the final investment decision has been made for the Gossan Valley project, the third mining front at Golden Grove, with an IRR of 34%. The project aims to replace declining Scuddles ore production and extend Golden Grove’s life of mine plan with an initial 7 year mine life. Mineral resources at Gossan Valley remain open at depth, presenting opportunities for further extensions. An A$180 million equity raise has been launched through an institutional placement and non-renounceable entitlement offer. Proceeds will refinance senior debt, reducing it by $18 million and extending its maturity to 2028, while enhancing balance sheet strength. Equity funds will also fully finance the Gossan Valley project to reach first ore by the second half of 2026. Additional proceeds will support water reduction efforts at Capricorn Copper and provide for general working capital needs. Major shareholders AustralianSuper and BUMA are committing A$40 million and A$62 million respectively to the equity offer.

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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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