Jim's Mining Letter - June 16, 2024

Power Nickel (PNPN.V PNPNF IVV.F) announced it has started the 2024 summer drill program with 20 holes targeted and over 8,000 metres of drilling as the company continues ramping up exploration for additional mineralized zones of high-grade copper, platinum, palladium, gold, silver and nickel at the polymetallic Lion Zone on its Nisk Property in Nemaska, Quebec. Following up on the successful results recently obtained at the Lion Zone, the summer drilling program will initially keep focus on the discovery, with the aim of demonstrating an even further depth continuity and to test for lateral occurrences of similar polymetallic mineralized sulphides lenses. The first few holes are designed to test the area below PN-24-051, PN-24-059 and PN-24-062; the three deepest intersections to date. The initial discovery was made by drilling an airborne EM survey (electro-magnetic survey) anomaly in association with a surface expression of ultramafic rocks. From this airborne EM survey, two more EM anomalies are yet untested to the east of Lion Zone. A broader ground-based EM survey is now being considered as this would help considerably to identify other anomalies and get a better control on geometries at depth. The company's current understanding of the geometry of the zone suggests a strong structural control as the zone gets transposed into meter-wide high-strain corridors at both of its lateral limits. The resulting geometry is a sigmoidal-shaped lens, that it is plunging steeply along the felsic-ultramafic contact. In such structural context, it is possible that the zone itself is being offset on each side and/or that other distinct lenses have developed in proximity. Subsequent news was the announcement of plans to conduct a flow-through offering for gross proceeds of up to $20 million through the issuance of up to 16,000,000 flow-through units at a price of $1.25 per unit.  Each unit is comprised of one flow-through common share and one-half share purchase warrant, with each warrant exercisable to purchase one common share at a price of $1.25 per common share for three years from the date of issuance. Proceeds from the sale of the units will be used for exploration activities on the company's Nisk property located in Quebec. The financing is expected to close before the end of June...more

Ero Copper (ERO.TO ERO E0B.F) announced that it has received the operational license for the Tucumã Project, the last remaining permitting milestone for commercial operation. With physical completion at approximately 99%, commissioning well advanced, and over 90% of the operational staff hired and trained, first concentrate continues to be expected early in the third quarter of 2024. The total direct capital cost estimate for project completion is approximately $310 million. To date, approximately 110,000 tonnes of ore have been placed on the run-of-mine stockpile with an additional 55,000 tonnes of ore drilled and ready to be blasted in the mine. First ore through primary and secondary crushers as well as screening and conveyance systems have been completed with approximately 10,000 tonnes of ore placed on the crushed ore stockpile to date. Production is set to commence next month…more

Amaroq Minerals (AMRQ.V AMRQ AMRQ.L 72Q.F) announced an operational update. Development activities at the Nalunaq project in Greenland are progressing well with trial mining expected to commence at Mountain Block in H2 2024 and Target Block in H1 2025. The initial mining rate target is 40-60 tonnes per day, ramping up to 130-150 tonnes per day at each block during H2 2025. First gold pour is expected during Q4 2024. Plant recoveries are expected to increase from commencement of production to target levels of 90-94% by the end of 2025. Remaining cash outlay for the gravity and flotation plant is C$25-30m in Q3 2024, C$2.5m in Q4 2024 and C$6m in H1 2025. The broader South Greenland exploration programme is said to continue to target strategic minerals and rare earths under the well-funded Gardaq JV…more

Bradda Head Lithium (BHLI.V BHL.L 8CD1.F) announced drill hole geochemical results for its Basin Project in Arizona. The lithium-in-clay, resource-expansion drilling programme has concluded with the completion of eight drill holes on the Basin North target portion of the Basin Project and all assays have been received. A resource expansion exceeding 2.5 MT of lithium carbonate equivalent would generate a $3 million royalty payment to Bradda Head from Lithium Royalty Company. Upper Clay unit thickness at 103m in the center of the drill pattern discovered in hole BND24-19, encountering nearly 100m (99.82m) at 839 ppm Li with a higher-grade interval of 32.52m at 1,030 ppm Li. Five out of the eight holes contain abundant lithium in the Lower Clay, which is significant as the company is now able to connect the Lower Clay in Basin North with holes drilled at Basin East, 2km to the south. Drill hole BND24-22 encountered 24.05m at 845 ppm Li in the lower clay, ending in 822 ppm Li due to the hole collapsing. Additional surface geological mapping and surface sampling further predict the expansion of clays (Upper and Lower) towards the west onto Basin West, to the East onto a State of Arizona Mineral Exploration Permit, and well to the north where clays have been discovered 1.8km north of hole BND24-20. New surface sampling detects up to 1,241 ppm Li in clays 1.8km to the north of hole BND24-20, interpreted to represent the Upper Clay. The mineral resource estimate is anticipated to be complete within the next few weeks, following which the resource will be announced…more

Ariana Resources (AAU.L 4A6.F) announced the completion of a revised mineral resource estimate of both Dokwe North and Dokwe Central, which now contain a combined 1.83Moz of gold. Ariana has entered into a conditional agreement to acquire 100% of Rockover Holdings via merger, and currently holds circa 2.1% of Rockover. Rockover owns 100% of the Dokwe North and Central Gold Projects in Zimbabwe. The Resource Estimate has been prepared by the Ariana technical team under the leadership of Zack van Coller and is based on a detailed review of all available drilling data acquired from 2004 through to 2023 over ten phases of drilling. Highlights are a global JORC 2012 Resource of 55.9Mt @ 1.02g/t Au for 1.83Moz of gold, with opportunities identified for further resource growth, measured and Indicated resources of 1,341koz (previously 1,202koz) and inferred resources of 490koz (previously 23koz). Per Kerim Sener, Managing Director, in the coming weeks, the company will be commencing a new set of pit optimisations for the Dokwe Project to better constrain the specific part of the resource that could be amenable to extraction via open-pit mining using current economic parameters. The prior optimisations on which the present in-pit resources were constrained were undertaken at a gold price of $1,800 per ounce and are now considered too conservative for long-term planning purposes. The new pit optimisations will be undertaken at $2,000 and $2,500 per ounce, reflective of the current price range of the commodity. Ariana sees opportunities for significant exploration upside to the established resources at North and Central and, ultimately, sees an opportunity to define a multi-million-ounce resource development project at Dokwe. On conclusion of the merger with Rockover, the company will investigate the potential to develop both Dokwe North and Central over an open-pit mine life of up to 15 years to produce at least 1Moz of gold. An ASX listing is planned…more

Karora Resources (KRR.TO KRRGF 5RN1.F) announced further results from gold exploration and infill drilling targeting the growing Fletcher zone at the Beta Hunt Mine. The Stage 2 drill program targeting the northern end of Fletcher South has extended high grade mineralized intersections a further 100 metres north of previously announced drill results; drilling was highlighted by one of the highest grade intersections recorded to date at Fletcher in drill hole WF380ACC-17AE which intersected 17.3 g/t over 14.5 metres with some clusters of fine visible gold observed in the drill core. Drilling over the past 12 months has now defined Fletcher mineralization over 800 metres north of the Alpha Island Fault with potential to extend a full 2.2 km of strike to the northern lease boundary. Fletcher Stage 3 drilling has now commenced targeting the 300-metre strike length between the recently completed northernmost drill line to the 2016 Discovery Hole (WF14-98)…more

Premium Nickel Resources (PNRL.V PNRLF O8S.F) announced that the company is upsizing its previously-announced non-brokered private placement offering from approximately C$15 million to aggregate gross proceeds of up to approximately C$27.5 million, in response to very strong interest in the offering, largely from the company's existing shareholders. Premium Nickel has received committed subscriptions for the entire C$27.5 million. The initial tranche of the offering for aggregate gross proceeds of approximately C$15 million is expected to close on or about June 14, 2024 and the final tranche of the offering is expected to close on or about June 21, 2024…more

Empire Metals (EEE.L NOGN.F) announced a JORC exploration target comprised of two focus areas, the Cosgrove and Thomas mineral prospects, at the Pitfield Titanium Project in Western Australia. The generation of an exploration target is said to be an important milestone, and a first step towards the development of a mineral resource estimate. The total exploration target, covering the Thomas and Cosgrove mineral prospects, is estimated to contain between 26.4 to 32.2 billion tonnes with a grade range of 4.5 to 5.5% TiO2. Snowden Optiro, an Australian based mineral resources consulting and advisory group, completed the QA/QC and geological modelling required in order to develop the JORC exploration target, which covers a combined area of approximately 59km2, extends down to 150m vertical depth only, and has been constrained at a 2% TiO2 cut-off grade. The exploration target covers an area less than 20% of the overall mineral system at Pitfield , which has been mapped by a 40km by 8km by 5km deep magnetics anomaly, supported by other data, and excludes numerous other high-potential prospects along the 40km strike length, which currently lack sufficient drill hole data…more

Stavely Minerals (SVY.AX STVMF )announced that it has received binding commitments for a placement to raise A$3.65 million at A$0.037 per share. One free placement option will be issued for every two placement shares exercisable at A$0.07 with an expiry of 31 December 2025. The intention of the company is to have the options listed. The placement shares to be issued includes director participation totalling A$350,000 in the placement, together with the attaching options. Funds raised from the placement will be applied to exploration at Stavely’s Copper-Gold Project in Western Victoria, the Hawkstone Nickel-Copper-Cobalt Project in the East Kimberley region of Western Australia, commercial viability studies and working capital…more

Solaris Resources (SLS.TO SLSR) reported additional drill results as its 2024 drilling program ramps up plus an expansion of planned meterage from 30km to 60km. The expansion of the drilling program is supported by the closing of its recent financing and productivity improvements from past infrastructure investments and improved logistics and processes at its Warintza Project in southeastern Ecuador. Latest drilling results include SLSE-33, collared on the southern margin of Warintza Southeast and drilled at a steep inclination northeast, returning 81m of 0.73% CuEq from near surface within a broader interval of 544m of 0.50% CuEq from surface and bottoming in mineralization. SLSE-35 was collared from a central platform at Warintza East and drilled east, returning 189m of 0.50% CuEq from surface within a broader interval of 580m of 0.42% CuEq and remaining open in mineralization, with the last 10m averaging 0.41% CuEq. The continued drilling ramp up with six rigs completing 7.7 km in May and a seventh rig expected soon to challenge the prior peak drilling rate achieved with 12 rigs in 2021 primarily as a result of improved logistics from infrastructure investments, construction of on-site facilities and trail networks connecting new drilling platform locations together with process optimization. An updated mineral resource estimate is on track for release early July. Ongoing regional exploration efforts have expanded the footprint of epithermal-style mineral alteration from the Caya area into the adjacent Mateo porphyry target 6km east of the Warintza cluster. Field crews have also been active on the newly-acquired adjacent claims and further details are to be provided in subsequent releases…more

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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.