Jim's Mining Letter - July 2, 2024

Endeavour Mining (EDV.L EDV.TSX EDVMF 6E2.F) announced that the first gold pour from the Lafigué mine in Côte d’Ivoire was achieved on 28 June 2024, marking the successful delivery of the project construction on budget and a quarter ahead of schedule. Since the start of wet commissioning on 30 May 2024, approximately 77,000 tonnes of ore has been processed through the Lafigué processing plant, with all circuits operating in line with expectations. The first gold pour included gold from both the gravity and CIL circuits, and yielded approximately 380 ounces of gold. The Lafigué mine is expected to achieve commercial production and ramp up to its nameplate capacity of 4 million tonnes per annum in Q3 2024. Lafigué is expected to produce between 90,000-110,000 ounces of gold at an all-in sustaining cost of between $900-975/ounce in full year 2024, with production increasing to approximately 200,000 ounces in full year 2025…more

Walkabout Resources (WKT.ASX WLKBF N6D.F) announced that a maiden shipment of graphite concentrate from the Lindi Jumbo Graphite Mine is imminent and set for departure to Europe in early July. In addition, pilot orders of between 20-80 tonnes are being received on a regular basis and will be fulfilled from concentrate produced during the commissioning and ramp up phase. Plant throughput is being increased as part of the ramp-up plan to achieve at least one-third of the nameplate production capacity by the end of July. At full production, Lindi Jumbo will be the highest margin producing graphite mine globally. Per the company, it has successfully unlocked a new graphite mining jurisdiction in Tanzania to meet global demand. Set to be the highest margin producing graphite mine globally at full production, at current estimated operating costs it is currently one of the lowest cost producing mines in the world with one of the highest basket prices globally.

Centaurus Metals (CTM.ASX CTTZF) announced the completion of a positive feasibility study for the development of its 100%-owned Jaguar Nickel Sulphide project in the Carajás Mineral Province of northern Brazil, which highlights strong economics from an initial concentrate-only project delivering a long-life production profile at first quartile operating costs. The Jaguar project is said to represent a cornerstone asset for Centaurus that will underpin the company’s ambition to build a diversified Brazilian critical minerals business. The outcomes of the Jaguar feasibility study are stated to demonstrate the potential for Jaguar to become a sustainable, long-term and low-cost producer of low-emission nickel for global markets, generating strong financial returns. Jaguar is currently one of the largest undeveloped nickel sulphide projects globally and a strategic potential source of unencumbered nickel concentrate product, particularly for the EV battery supply chain. The feasibility study only considers open pit nickel sulphide ore over an initial 18-year mine life, delivering nickel sulphide feed to a 3.5 million tonnes per annum conventional nickel flotation plant to produce approximately 18,700 tonnes of recovered nickel metal per year at a low life-of-mine C1 operating cost of $2.30/pound and an all-in sustaining cost of $3.57/pound, on a contained nickel basis. Post tax NPV8 is said to be A$997 million, with an internal rate of return of 31% per annum.

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