Jim's Mining Letter - July 13, 2024

Coeur Mining (CDE 0R0U.L CDM1.F) announced that its recently-expanded Rochester silver and gold mine in Nevada successfully completed ramp-up activities at the end of the second quarter by achieving daily throughput rates of over 88,000 tons per day. Approximately 4.3 million tons of ore were placed on the new Stage 6 leach pad during the second quarter bringing the total tons placed to 15.5 million tons. Crushing and placement rates were lighter than initially planned during the second quarter while mining rates exceeded plan. Down days taken during the second quarter have Rochester well positioned to deliver crushing and placement rates of 7 – 8 million tons per quarter during the second half of the year and into 2025. At full capacity, throughput levels are expected to be approximately 2.5 times higher than historical levels, or approximately 32 million tons per year, making Rochester one of the world’s largest open pit heap leach operations and America’s largest source of domestically produced and refined silver. The company will report its second quarter 2024 operational and financial results after the New York Stock Exchange closes for trading on Wednesday, August 7, 2024.

O3 Mining (OIII.V OIIIF 15A.F) announced that it has closed a transaction to sell a 100% interest in its Matachewan and Wydee properties, located within 10 kilometres distance to the Young-Davidson Mine of Alamos Gold (AGI.TSX AGI 0UGS.L 1AL.F), to that company in exchange for cash consideration of C$3.5 million and the retention by O3 Mining of a 1% net smelter returns royalty on all metal production from the claims constituting the Matachewan and Wydee properties. The transaction represents another step that O3 Mining is taking towards simplifying its asset portfolio and enhancing focus on Marban Alliance, which is said to hold significant potential for growth and value creation for shareholders.

Galan Lithium (GLN.ASX 9CH.F) announced a further update on progress at its 100% owned Hombre Muerto West Phase 1 lithium brine project. Lithium inventories continue to build in the 1 ponds, in line with feasibility study expectations, which will provide the feedstock for the processing plant. Over the last month, Galan has re-worked its construction activities to preserve cash with a view to procuring both a definitive sales agreement and an associated funding package for the project in the short term. Overall completion of the project now sits at approximately 40% with the ponds system at 60% capacity. The designed ponds system can allow an inventory, until H2 2025, of up to 10,000 tonnes per annum of lithium carbonate equivalent without the need for processing. Approximately 750,000 square metres of evaporation area has now been built, currently housing 2,800 tonnes of lithium carbonate equivalent contained inventory. This current evaporation area is sufficient to produce a lithium chloride volume of approximately 3,000 tonnes per annum of lithium carbonate equivalent. First production from Hombre Muerto is expected to be within H2 2025.

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