Jim's Mining Letter - November 21, 2024

Own a stake in Alaska’s oil reserves.

• Estimated 300 million barrels of recoverable reserves

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Lightning Minerals (L1M.ASX) announced the discovery of spodumene within a lithium bearing pegmatite at the company’s recently acquired Esperança project. The discovery supports the company’s exploration thesis and uplifts the remaining prospectivity across all three project areas: Canabrava, Caraíbas and Esperança. Artisanal excavations revealed a lithium bearing pegmatite with elongate crystalline spodumene crystals up to 50 centimetres in length. Laser induced breakdown spectroscopy results of the spodumene crystals returned up to 18,800 parts per million lithium, or 4.04% Li2O. The discovery provides a walk up drill target for a fully funded drilling campaign to begin Q1 2025. Meanwhile, oil sampling and geological mapping continues across the Esperança, Canabrava and Caraíbas projects with further results due over the coming weeks.

Silver Bullet Mines (SBMI.V SBMCF) announced that it has unexpectedly intercepted a historical mining tunnel, shaft and waste piles, during development of the Super Champ vein structure. The company's field team estimates this zone was mined by unknown persons over a century ago. The historical adit is approximately 4 feet wide by 8 feet high and of unknown depth. It and the shaft were both intercepted under 12 feet of overburden as the company exposed the known vein. The discovery of extensive historical mining activities further validates Silver Bullet's thesis for high grade silver and possibly gold production from Super Champ. The field team reported visible silver in the tunnel zone. Material from this zone is close to surface and is expected to be relatively uncomplicated to extract. Results of samples from this newly intercepted zone at the Super Champ mine showed up to 34,000 grams per ton.

Ascot Resources (AOT.TSX AOTVF BHQ.F) announced that the company has closed the senior secured debt financing, including approximately $7.5 million from Sprott Private Resource Streaming and Royalty (B) Corp. In addition, the company’s secured creditors have extended the waiver and forbearance agreements previously granted until May 31, 2025. Concurrently, Ascot closed its private placement offering, issuing a total of 262,500,000 shares at a price of C$0.16 for gross proceeds of approximately C$42 million.The net proceeds of the financings will be used to advance the development of the Premier Northern Lights mine, restart the mill and restart the Big Missouri mine from the current state of care and maintenance. A focused development program has been agreed with mining contractor, Procon Mining & Tunneling, so that mill operations can restart in Q2 2025. With both the Premier Northern Lights and Big Missouri mines feeding the mill, Ascot anticipates it can sustainably deliver enough ore feed to profitably run the operation.

White Gold (WGO.V WHGOF 29W.F) announced an updated mineral resource estimate for its White Gold project in west-central Yukon. The updated mineral resource includes a significant increase in total gold ounces. The White Gold project now comprises 1,203,000 ounces of gold in the indicated resource category (17.7 million tonnes averaging 2.12 grams per tonne) and 1,116,600 ounces of gold in the inferred resource category (24.5 million tonnes averaging 1.42 grams per tonne). The gold resources at the White Gold project are near surface, almost entirely captured within an open pit, and remain open for expansion in multiple directions with additional opportunities to increase total resources via targets within close proximity. Additional increases to the size of the resource may also be possible through an ongoing analysis of the resource block model and by capturing additional ounces hosted within the target for further exploration area which hosts an additional estimated 10 – 12 million tonnes grading between 1 – 2 grams per tonne gold. These results form part of the company’s work program supported by strategic partners including Agnico Eagle Mines (AEM.TSX AEM) and Kinross Gold (K.TSX KGC).

Piedmont Lithium (PLL PLL.ASX 6S3.F) and Sayona Mining (SYA.ASX SYAXF) announced the signing of a definitive agreement to combine the two companies resulting in Sayona being the ultimate parent entity. The transaction will result in an approximate 50% / 50% equity holding of shareholders of Piedmont and Sayon in the merged company immediately following the closing of the transaction. Piedmont will be undertaking a proposed capital raise of around $27 million. Sayona is undertaking a capital raise of A$40 million (around $27 million). Upon closing, Sayona will also undertake a conditional placement for A$69 million to Resource Capital Fund VIII L.P. The equity raisings, aggregating to approximately $99 million, plan to ensure the merged company is well positioned to accelerate growth within its enlarged portfolio. Per the companies, a combination between Piedmont and Sayona will create a simpler and stronger lithium business that is well-positioned to grow through cycles. It will be the largest producer of hard rock lithium in North America.

Osisko Metals (OM.V OMZNF 0B51.F) announced the expansion of its leadership team along with a C$100 million bought deal financing. The company says it is accelerating its strategy of creating a leading critical metals company in North America. John Burzynski will be appointed to the board of directors as Executive Chairman and will lead the company along with Robert Wares, who will continue as Chief Executive Officer and a director on the board. Don Njegovan and Blair Zaritsky will be appointed as President and Chief Financial Officer respectively. Osisko also has entered into an agreement with Canaccord Genuity together with BMO Capital Markets and National Bank Financial, pursuant to which the underwriters have agreed to purchase, subject to certain conditions, 288,465,000 units at a price of C$0.26 for gross proceeds of C$75 million and 50,000,000 flow-through units at a price of C$0.50 for gross proceeds of C$25 million. The aggregate gross will be C$100 million. The company has also granted the underwriters an option, exercisable in whole or in part, at any time up to the closing date of the transaction, to acquire up to an additional C$15 million in any combination of units. Osisko intends to use the proceeds of the transaction towards the advancement of its Gaspé copper project to a construction decision and for general corporate purposes.

Estrella Resources (ESR.ASX) announced two new in-situ supergene manganese discoveries located within granted exploration licenses at the Lautém manganese project in Timor-Leste. A 3-metre high bed of outcropping supergene manganese was discovered in reconnaissance mapping and portable XRF on crushed field samples graded 57.5% and 63.4% manganese, some of the highest grades seen to date. Estrella’s exploration model is said to have predicted the position of the secondary supergene correctly. Samples will be collected for analysis in coming days and follow-up geophysics are being planned for the prospects and surrounding hills to locate additional in-situ supergene buried below scree material.

ESGold (ESAU.CSE SEKZF Z7D.F) announced updated economic metrics for its Montauban tailings processing project, showing what the company describes as exceptional profitability and reinforcing ESGold’s commitment to sustainable mining and community development in Quebec. The updated preliminary economic assessment of the Montauban project highlights a pre tax net present value of C$57.5 million at a 5% discount rate, with a internal rate of return of 142% and a payback period of less than one year. With a projected four-year mine life, the Montauban project will process 923,000 tonnes of tailings containing valuable metals and mica, generating an estimated revenue of C$111.5 million. The life of mine capital cost stands at C$17.3 million, with operational costs optimized at C$29.83 per tonne, ensuring robust profit margins. Final construction on the Montauban processing circuit is set to commence this month, with production anticipated within nine months. ESGold’s on-site 500 tonne per day mill is said to be ready for operation, requiring only minimal modifications to handle tailings materials, supporting swift cash flow generation and reinvestment into growth and exploration initiatives. ESGold was included as an advertisement in the October 15, 2024 newsletter when the share price was C$0.135. It reached a high of C$0.275 one month later, up over 100%. Here’s another ad from the same group

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Disclaimer: This advertisement is paid content created on behalf of Four Nines Gold Inc. It contains forward-looking statements, which are based on the current beliefs and expectations of Four Nines Gold's management team. These statements involve inherent risks, uncertainties, and other factors that may cause actual results or events to differ significantly from those anticipated. This is not financial advice; we encourage you to conduct your own due diligence. For more details, please refer to SEDAR+ or full disclaimer: https://shorturl.at/cvDsf

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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