Jim's Mining Letter - July 11, 2024

Orezone Gold (ORE.TSX ORZCF OEX.F) announced that the company has secured binding commitments totalling over $105 million to fully finance the construction of the Phase II hard rock expansion at its Bomboré Gold Mine. With early works complete, engineering and procurement well-advanced, and major works expected to commence shortly, the Phase II expansion remains on schedule for first gold in late 2025. The financing package comprises a $58 million senior secured term loan with Coris Bank International, a leading West African bank and the company’s current senior lender, and a $47 million non-brokered private placement of 92,743,855 common shares of Orezone at C$0.70 per share with Nioko Resources. No gold hedging, offtakes, or cost overrun reserve is required by Coris Bank and the Bomboré mine remains free of any hedging, gold stream or private gold royalty, thereby preserving upside for shareholders. Orezone states it remains well-positioned to deliver this next stage of project growth, which will see annual gold production increase to over 170,000 ounces in 2026, an approximate 50% increase from current levels. There is also a clear path forward now for Bomboré to realize a substantial hard rock life of mine. The path forward includes renewed focus on exploration and discovery, and with a greater than 14 kilometre long mineralized trend, drilled to an average depth of approximately 200 metres, the company sees substantial upside to further expand the project’s current stated mineral resources of 4.5 million ounces in measured and indicated, and 0.6 million ounces in inferred…more

Cornish Metals (CUSN.V CUSN.L SBWFF ZYR1.F) announced it has commenced the second phase of shaft refurbishment at the South Crofty tin project in Cornwall, United Kingdom. Refurbishment of the New Cook’s Kitchen shaft is progressing as planned with the on-schedule installation of the Phase 2 work platform, enabling faster replacement of old shaft timbers with new steel guides. The water level in the shaft continues to be maintained at approximately 280 metres below surface, with the treated water being discharged to the Red River. The 14-hole Wide Formation exploration drilling programme has been completed with final assays to be reported when available. Initial payment has been received for the announced sale of the Nickel King asset in Canada and the company is progressing discussions for the sale of other non-core assets located outside of the UK. Market fundamentals remain supportive of the tin price, which has traded above $30,000 over the last three months and is presently up nearly 40% year-to-date to approximately $35,000. Shaft refurbishment and mine dewatering is anticipated to reach the 195-fathom level (approximately 350 metres below surface) in Q4 2024 and refurbishment of the 195-fathom pump station and installation of permanent pumps is scheduled to be completed in Q1 2025. The company maintains guidance to complete the New Cook’s Kitchen shaft refurbishment and dewatering of the South Crofty Mine to the 400-fathom level (approximately 730 metres below surface) in Q3 2025. South Crofty is a historical, high-grade, underground tin mine that started production in 1592 and continued operating until 1998 following over 400 years of continuous production. It is one of the highest grade tin mineral resources globally and benefits from existing mine infrastructure including multiple shafts that can be used for future operations. The 2024 preliminary economic assessment for South Crofty validates the project’s potential with a $201 million after-tax NPV8 and a 29.8% internal rate of return, giving a 3 year after-tax payback. Total after-tax cash flow is said to be $626 million from start of production.

Core Lithium (CXO.ASX CXOXF 7CX.F) announced that drilling has commenced at the company’s 100% owned Shoobridge project, located 130 kilometres south of Darwin, as part of its FY 2025 exploration program. Core is the first company to explore and drill the prospective, potentially spodumene-rich, pegmatite systems at Shoobridge for lithium. The project is also considered prospective for gold, with known gold anomalism extending over a strike length of 4.5 kilometres. Commencement of field activities at Shoobridge marks the start of the primary drilling component of the FY 2025 exploration program across the company’s prospective, multi-commodity portfolio of tenements. The aim is to identify substantial deposits within trucking distance of the Finniss lithium processing plant. The balance of the budget will be used to generate and advance multi-commodity targets across Core’s broader tenement holdings, which have undergone limited exploration activity in the past five years. The company’s Central Australia tenements are prospective for a range of commodities.

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