Jim's Mining Letter - May 11, 2025

Gold Road is initiating a C$2 million seed equity raise for the launch of its fully permitted gold mine in Arizona, USA. The current low company valuation offers near-term potential for a significant re-rating: production start, plus public quotation, plus a one million ounce exploration upside. Gold Road plans to grow production to 20,000 ounces of gold per year in 2025/26, which in a strong gold price environment is expected to lead to a US$40+ million annual profit/EBITDA in 2026. Management has a proven track record and the company currently is in talks with various shell vehicles in both Australia and Canada for a public listing.

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McEwen Mining (MUX MUX.TSX) announced Q1 2025 drilling results at its Grey Fox Project, featuring high-grade intercepts at the Gibson Zone and discovery of a new deep exploration corridor at Grey Fox South. Follow-up drilling is underway to expand and refine the indicated and inferred resource base. Grey Fox hosts 1,538,000 ounces of gold indicated at 3.64 grams per tonne and 458,000 ounces of gold inferred at 3.30 grams per tonne, with Q1 drilling targeting resource growth. The Gibson Zone returned 12.4 grams per tonne over 10.7 metres (including 27.9 grams per tonne over 4.5 metres) and 4.0 grams per tonne over 30.1 metres, suggesting potential thickening of mineralization. A new deep exploration corridor at Grey Fox South yielded 6.2 grams per tonne over 7.8 metres and 4.4 grams per tonne over 16.0 metres, open along strike and dip. Additional intercepts include 48.5 grams per tonne over 0.8 metres at the 147 Zone and 5.2 grams per tonne over 11.6 metres near the Whiskey Jack geophysical anomaly; follow-up drilling is underway…more

Ivanhoe Mines (IVN.TSX IVPAF IYAA.F) announced that it has entered the Flatreef polymetallic orebody after 30 years of development. The company’s underground crews have reached the 26 metre-thick Flatreef, a milestone en route to first commercial production in Q4 2025. Construction of the Flatreef Mine’s Shaft #2 is advancing, set to boost annual hoisting capacity above 12 million tonnes per annum upon completion. Mining crews drove 5.5 kilometres of underground tunnels and entered the Flatreef orebody at the 850 metre level with the first high-grade ore blast on May 7, 2025. The Flatreef deposit contains 59 million ounces of precious metals in indicated resources and 94 million ounces in inferred resources at a 1 gram per tonne cut-off. Ore from underground development will be stockpiled on the surface ahead of Phase 1 concentrator feed, targeted for Q4 2025. Raiseboring of Shaft #2 to 950 metres depth is complete and expansion to a 10 metre diameter headframe starts in early 2026…more

Freegold Ventures (FVL.TSX FGOVF) announced the final 2024 drill results from its Golden Summit project in Alaska, showing strong high-grade intercepts across multiple zones. With drilling now underway for 2025, the company is focused on resource conversion, further exploration, and metallurgical optimisation as it moves toward a pre-feasibility study by year-end. High-grade results in multiple zones include 6.84 grams per tonne gold over 20.6 metres (incl. 115.5 grams per tonne gold over 0.8 metres) in the Wow Zone and 1.17 grams per tonne gold over 253.3 metres in the Dolphin Zone. Final 2024 drillholes also returned broad mineralisation: 1.01 grams per tonne gold over 216 metres in GS2435, 1.73 grams per tonne gold over 111 metres in GS2431, and 1.84 grams per tonne gold over 61 metres in GS2434. The 2025 program has now commenced, aiming to convert inferred to indicated resources and expand mineralisation through exploration drilling. An updated mineral resource estimate is due end-Q2 2025, incorporating the 2024 drilling. Pre-feasibility study preparations are underway, including metallurgical and trade-off studies to support development scenarios…more

Blackrock Silver (BRC.V BKRRF AHZO.F) announced 4.2 metres of 700 grams per tonne silver equivalent (including 0.3 metres of 3,182 grams per tonne silver equivalent) and multiple +1 kilogram per tonne silver equivalent intercepts at Tonopah West. Assays remain pending for ten conversion and seven expansion holes, with resource modelling underway. Infill drilling of 62 holes in the M&I Conversion Area aims to convert up to 1 million tonnes of inferred resources to measured and indicated, with ten holes pending assays. Seven drillholes from the Resource Expansion Program are awaiting assays as part of expansion across a one-kilometre trend linking key vein groups. Modelling of the M&I Conversion Program data is underway, with an updated mineral resource estimate on track for Q3 2025…more

Gemfields (GML.JSE GEM.L PLLHF 5PH.F) announced that Kagem, the emerald mine in Zambia which is 75% owned by the company and 25% owned by the Government of the Republic of Zambia, will shortly recommence a programme of focused open-pit mining to recover more premium emeralds. Alongside other cost cutting measures, Kagem suspended all mining from 1 January 2025 to focus on processing ore from Kagem’s significant ore stockpile utilising the upgraded processing plant. Emerald production from the processing plant in 2025 so far, in terms of carats recovered, has been in-line with the company’s expectations, producing a lower proportion of higher-quality or premium emeralds than direct open-pit mining methods. Kagem’s recent auction results have increased management confidence in the current emerald market and the decision has therefore been taken to recommence mining of two key production points in the Chama pit, with minimal waste mining, to recover premium emeralds for Kagem’s future higher-quality auctions. The decision to recommence full scale mining will continue to be assessed as market conditions develop…more

Larvotto Resources (LRV.ASX K6X.F) announced a definitive feasibility study for its Hillgrove Antimony-Gold Project in New South Wales, confirming robust economics, high margins and rapid payback. Production is targeted for Q2 2026, with average annual output of 80,400 ounces of gold equivalent and a post-tax NPV8 of A$694 million. The December 2023 acquisition of the Hillgrove Project was followed by exploration results including 31 metres at 65.8 grams per tonne gold and a 1.7 million ounce gold equivalent resource. The study confirms an 8-year mine life with an IRR of 102% and an 11-month payback. A seven-year antimony offtake has been secured with Wogen Resources; the project is to supply ~7% of global antimony demand and target first ore in Q2 2026. Significant exploration upside exists with over 20 kilometres of antimony-rich strike, ongoing drilling and potential to extend mine life and convert resources to reserves…more

Wishbone Gold (WSBN.L 7N6.F)announced that it has identified 11 fresh gold targets at its Mosquito Creek Crescent Project in Western Australia, based on an extensive geological review and high-grade historical assays. Independent consultants will now assess shear-hosted mineralisation to guide detailed follow-up exploration. The targets have been defined at the 157 km2 Crescent Gold Project in Mosquito Creek following an extensive geological review. Historical rock chip samples from within the project area returned high-grade gold assays, including results up to 117 grams per tonne gold. Independent exploration consultants will advise on targeted on-ground investigations and drilling locations. The 100% owned project comprises two granted licences (E46/1463 and E46/1464) and one licence application, with further systematic sampling planned along identified structural trends…more

Challenger Gold (CEL.ASX CLLEF) announced that it has secured an investment protection agreement with the Ecuador Government for its El Guayabo Project. The agreement secures legal and regulatory stability for the 100 %-owned project and covers $75 million of investment through 2027, guarantees stable mining and fiscal terms, title security, and dispute resolution via ICC arbitration. Regulatory stability is guaranteed by locking in the current legal framework if more favourable and shields the project from adverse legislative or fiscal changes, also securing rights including non-discriminatory treatment, property protection, legal certainty and international arbitration under ICC rules in London. Fundamentally, the agreement supports Challenger’s strategy to monetize its Ecuador assets following a resource upgrade at El Guayabo from 4.5 million ounces to 9.1 million ounces gold equivalent…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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