Jim's Mining Letter - January 29, 2025

Skeena Resources (SKE SKE.TSX RXF.F) announced a strategic investment into TDG Gold (TDG.V 34M.F) to advance the Greater Shasta-Newberry project in the Toodoggone District, British Columbia, Canada. The project is situated on the boundary of the recent discovery announced by Freeport-McMoRan (FCX) and Amarc Resources (AHR.V AXREF) on their new gold-silver-copper AuRORA target and lies directly alongside the same mineralized trend. The investment in TDG is consistent with the company's approach of making strategic equity investments in projects with high geological potential. Upon closing, Skeena will have purchased 22 million TDG common shares in exchange for the sale of the Sofia property and payment of C$7 million. Skeena will then hold approximately 13% of the issued and outstanding common shares on a post-closing non-diluted basis. The Sofia property consists of approximately 9,000 hectares of mineral claims and is of particular interest to TDG as it borders the northern edge of the TDG concession boundary.

Collective Mining (CNL CNL.TSX GG1.F) announced that it has commenced drilling at the San Antonio project located in Caldas, Colombia. The company plans to drill a minimum of 2,500 metres and test three large gold-copper porphyry targets located within a well-defined 2.5 kilometre mineralized corridor. Collective currently has five drill rigs operating as part of its fully funded 60,000 metre drill program for 2025. Two additional rigs have been contracted, with drilling anticipated to begin in late January and February, respectively. In 2021, the company announced a grassroots discovery at the San Antonio project by drilling two high-risk holes on the same section line at different dips into the Pound target with each hole cutting more than 700 meters of mineralization from surface. Immediately thereafter, Collective shifted to the Guayabales project, leading to the discovery of the Apollo system, which has remained the chief focus. With a strong treasury and an expanded operating team, the company is now revisiting San Antonio, where it believes there is a legitimate chance of finding a major gold-copper porphyry system…more

GT Resources (GT.V CGTRF 7N1.F) announced that several bore hole electromagnetic conductors have been identified on the North Rock copper-nickel-platinum group element project located in Northwestern Ontario, Canada. The North Rock project encompasses an underexplored 13 kilometre long mineralized basal gabbroic contact along the Grassy Portage Gabbroic Complex. The limited, approximately 12,000 metres, of historic drill testing demonstrates copper-nickel-palladium and platinum mineralization throughout the tested zones of the favorable basal contact. A historic resource estimate of 1 million tons grading 1.2% copper was outlined by Noranda in 1958 on the Beaver Pond zone. The company views the North Rock project as a copper exploration project with meaningful polymetallic enhancement opportunities, in a highly favorable environment with proven mineralization. Q4 2024 exploration highlights included 8.2% Copper in a grab sample from the historic Beaver Pond zone.

Discovery Silver (DSV.TSX DSVSF 1CU0.F) announced that it has entered into a definitive agreement to acquire from Newmont (NEM NGT.TSX NEM.ASX NMM.F) a 100% interest in the Porcupine operations based in and near Timmins, Ontario, Canada for a total consideration of $425 million, consisting of $200 million in cash and $75 million payable in common shares of Discovery, plus $150 million of deferred consideration to be paid in four annual cash payments of $37.5 million commencing on December 31, 2027. To fund the transaction and provide liquidity in support of operating and growing the Porcupine complex, Discovery has entered into binding commitments for approximately $555 million of financing, including $400 million related to royalty and debt agreements with Franco-Nevada (FNV FNV.TSX 3FO.F) and approximately $155 million from a bought deal public offering of subscription receipts…more…more

Mandalay Resources (MND.TSX MNDJF R7X2.F) announced high-grade drill results at its True Blue prospect adjacent to the operating Costerfield gold-antimony mine in Victoria, Australia. Highlights include 578.0 grams per tonne gold and 20.5% antimony over 0.47 metres, 16.8 grams per tonne gold and 2.4 % antimony over 3.98 metres (including 172.0 grams per tonne gold and 19.2% antimony over 0.37 metres) and 161.0 grams per tonne gold over 0.19 metres. Drill testing and soil geochemistry indicate an extensive system with the potential to replicate Costerfield's Central Corridor which has sustained mining the past 15 years. Structural continuity has been interpreted on 600 metres of strike, leaving 3.4 kilometres of the system yet to be tested. Follow-up drilling at True Blue has commenced with two rigs now mobilizing to further define mineralization and increase deposit confidence…more

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