Jim's Mining Letter - October 22, 2024

Thesis Gold (TAU.V THSGF 0110.F) announced an updated preliminary economic assessment technical report for its wholly owned Lawyers-Ranch project located in British Columbia, Canada. The updated PEA results support a 12,600 tonnes per day open pit mining operation over a 14-year mine life with strong economics. The pre-tax internal rate of return is 45%, pre-tax net present value at a 5% discount rate is C$1.99 billion- The after-tax IRR stands at 35.2% with an after-tax NPV5% of C$1.28 billion, using US$1,930 per ounce of gold and US$24 per ounce of silver. The project remains robust at a wide range of gold prices from US$1,750 to US$2,500 with an after-tax IRR of 28.8% to 52.8%. Annual average production is seen as 215,000 gold-equivalent ounces, including an average 273,000 gold-equivalent ounces annually over the first three years, with life-of-mine production of 3 million gold-equivalent ounces, extending mine life to over 14 years. Life-of-mine all-in sustaining cash cost is US$1,013 per ounce of gold equivalent and the project offers a quick after-tax payback of 2 years. Significant mineral resource growth potential is said to remain across both the Lawyers and Ranch projects and there are over 20 unexplored targets that hold potential for further discoveries…more

Boss Energy (BOE.ASX BQSSF B8Y.F) reported more strong drilling results from its 30% Alta Mesa in-situ recovery uranium project in South Texas. The results of the drilling, which was designed to expand the producing well field capacity, continue to significantly exceed the cut-off grade thickness requirements for in-situ recovery of uranium. The results were reported by Alta Mesa’s 70% owner enCore Energy (EU EU.V 6TU.F). EnCore also reported that production from its first well field continues to progress with increases in the number of Alta Mesa production and injection wells on schedule for 2024 and continuing into 2025. The Alta Mesa well field drilling operations, which commenced in March 2023, are advancing rapidly with 80 holes drilled since March 2024. In total, 749 drill holes have been completed through mid-September 2024. At present there are seven drill rigs in full operation at Alta Mesa, with plans to double that number over the next 12 months.

Cornish Metals (CUSN.V CUSN.L ZYR1.F) announced that it has entered into a non-dilutive £7 million ($9.1 million) secured credit facility with Vision Blue Resources to support the continued development of its 100% owned and permitted South Crofty tin project in Cornwall, United Kingdom. The proceeds of the facility are expected to be used for the company's general operating and corporate purposes. Per Don Turvey, CEO, Cornish Metals plans to generate value by unlocking the project's potential as a long-term supplier of tin needed for electrical applications in the UK and Europe. The company says it has been engaging with investment entities interested in financing the development of the project and the Vision Blue credit facility, combined with the recently completed non-core asset sales, provides capital to advance these discussions further and develop optionality as the company continues to further derisk the project ahead of securing project financing for the construction of South Crofty…more

MetalNRG (MNRG.L) announced that it has signed a binding sale and purchase agreement to acquire for an initial consideration of $30 million the entire issued share capital of Compagnie Minière de Oumejrane from Managem, a mining company listed on the Casablanca Stock Exchange in Morocco, with mining operations throughout Africa. The acquisition will include 100% ownership of the Oumejrane copper mine, which is in production, cash generative and a profitable operation, located in the Eastern Anti-Atlas of Morocco.  OMF Fund IV SPV K LLC, a fund managed by Orion Resource Partners, has entered into a $25 million convertible loan note with MetalNRG, the proceeds of which will be used to complete the acquisition. The company will change its name to Atlas Metals Group on completion of the acquisition and a new management team will be put in place. The company is exploring funding options for the remaining $5m of the initial consideration.

Mayfair Gold (MFG.V MFGCF 9M5.F) announced that the company has completed a non-brokered private placement of 3,340,000 common shares at a price of C$1.80 per share for aggregate gross proceeds of C$6,012,000. The funds will be used by Mayfair for permitting and feasibility studies, general and administrative expenses and working capital. Insiders of the company subscribed for an aggregate of 1,640,000 shares representing approximately C$2.95 million of the gross proceeds of the offering. Mayfair is focused on advancing the 100% controlled Fenn-Gib gold project in the Timmins region of Northern Ontario, which currently hosts an NI 43-101 open pit constrained mineral resource estimate with a total indicated resource of 181.3 million tonnes containing 4.313 million ounces at a grade of 0.74 grammes per tonne of gold and an inferred resource of 8.92 million tonnes containing 0.14 million ounces at a grade of 0.49 grammes per tonne of gold at a 0.30 grammes per tonne of gold cut-off grade. The Fenn-Gib deposit has a strike length of over 1.5 kilometres with widths ranging over 500 metres . The gold mineralized zones remain open at depth and along strike to the east and west. Per the company, recently completed metallurgical tests confirm that the Fenn-Gib deposit can deliver robust gold recoveries of up to 94%.

Sanu Gold (SANU.CSE SNGCF L73.F) announced its phase 1 drilling plans for the Diguifara project in Guinea. The project is located 20 kilometres from the Siguiri gold mine, owned and operated by AngloGold Ashanti (AU HT3.F), which along with Capital DI, the investment arm of the drill contractor, has fully funded the drilling. The Diguifara permit features three undrilled high priority targets that cover a cumulative strike length of 3.2 kilometres where anomalous auger-in-soil samples reach as high as 4.8 grammes per tonne of gold. The company has formed a joint technical committee with AngloGold Ashanti to plan all exploration at Diguifara and benefit from AngloGold’s experience in Guinea. A minimum of 2,000 metres of air core and RC drilling in 19 holes is planned with equipment currently being mobilized and drilling is expected to begin in the second half of October…more

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