Jim's Mining Letter - June 18, 2024

Today: Japan Gold, Barrick Gold, Robex Resources, Founders Metals and Kavango Resources

Japan Gold (JG.V JGLDF) announced the advancement of the Mizobe, Ebino, Togi and Hakuryu projects in Japan currently under the Barrick Alliance Second Evaluation Phase. The four projects have been prioritised and are being advanced to testing through drilling. The two remaining projects that will not proceed under the Barrick Alliance will be included in Japan Gold's portfolio of assets and the company will continue to advance these two projects independently. The Mizobe and Ebino projects are located within the Hokusatsu region of the Southern Kyushu Epithermal Gold Province, Japan's largest gold producing region with a recorded production of over 12 million ounces, including the world-class Hishikari deposit, which has produced approximately 8.5 million ounces with an average grade exceeding 30 g/t. At the Mizobe project, exploration completed to date has defined an extensive and largely concealed, multi-phase hydrothermal system, with current dimensions of approximately 2.5km by 1.5km, with evidence of multiple alteration and mineralization events. The Ebino project is centred on a series of hydrothermal alteration zones located approximately 10km north of the Hishikari deposit. Target generation work is presently underway comprising geological mapping, soil sampling and ground magnetics across multiple alteration zones to rapidly advance drill targeting. The Hakuryu project is located at the southern end of the 18km long Konomai epithermal gold district. Japan's third largest past producing gold mine, the Konomai Mine, produced 2.35 million ounces of gold at an average grade of 6.4 g/t, between 1915 and 1973. Within the Hakuryu project, area mapping has identified an underexplored area of epithermal quartz veins. Planned work programs include a magnetic survey, and four drill holes later in 2024, pending permits. The Togi project is located in the central west part of Honshu Island on the Noto Peninsula, centred on the historic Togi goldfield. A similarly oriented graben-gravity feature and Miocene host rocks are noted 160km along strike to the northeast on Sado Island, which hosted Japan's second largest gold mine, the Sado Mine, which produced 2.5 million ounces of gold until its closure in 1974. CSAMT geophysical survey and detailed mapping has identified a series of epithermal drill targets which will be advanced in Q3, 2024. Japan Gold has an alliance with Barrick Gold (GOLD ABX.TO ABR.DE) to jointly explore, develop and mine certain gold mineral properties and mining projects with the potential to host Tier 1 or Tier 2 gold ore bodies in Japan.

Robex Resources (RBX.V RSRBF RB4A.F) announced a strategic plan, subject to a successful equity financing, designed to allow it to realize its goal of becoming a leading gold producer in West Africa. The plan includes an equity financing of C$55 million, an extension of the company’s $35 million bridge loan with Taurus Mining Finance to April 22, 2025, the board of directors of Robex being refreshed with the appointment of James Askew, as incoming Chairman, and the appointment of Matthew Wilcox, as Managing Director and Chief Executive Officer, the sale of all the company’s Malian assets, and an intention to explore a listing on the Australian Stock Exchange for Robex’s shares. Conditional upon the successful closing of the planned equity financing, the company will become a new Guinean pureplay in order to accelerate the development of the Kiniero Gold Project with expected first gold poured in Q4 2025. The ASX listing process is anticipated to take up to six months.

Founders Metals Inc. (FDR.V FDMIF 9DL0.F) announced preliminary metallurgical testing results from the Froyo zone at the Antino Gold project in southeastern Suriname. Four fresh rock samples and one saprolite sample totalling over 400 kilograms with head grades ranging from 1.55 grams per tonne gold up to 20.22 grams per tonne gold were collected from across the Froyo zone as representative samples. Baseline metallurgical testing began with a whole-ore leach process using sodium cyanide and a 48-hour leach period at a 75-micron grind for each sample. Gold recoveries ranged from 90.9% to 96.2% with no indication of preg-robbing, refractory gold or deleterious elements. The company views the initial metallurgical results as extremely positive and in agreement with its expectations based on the mineralogy and geology the team has observed, providing additional confidence on the project as it continues exploration.  Further metallurgical testing at Antino on the historical tailings is ongoing, which has the potential for a low-cost mining scenario in the future. The next stage of testing will involve a stepwise approach to optimizing the grind size, reagent consumption and leaching kinetics to further improve recovery and optimize cost. Antino is 20,000 hectares and has produced over 500,000 ounces of gold from surface and alluvial mining to date. The Company drilled 10,000 metres in 2023 and says it is fully financed for drilling in 2024.

Kavango Resources (KAV.L KVGOF) announced that the company has commenced drilling its first high priority targets at the Karakubis Copper project in Botswana's Kalahari Copper Belt. Kavango has identified 15 high priority targets for its first phase of drilling; drill holes have been designed to check favourable trap sites modelled from geophysical data, confirm stratigraphy, and assess the potential to host large scale copper-silver mineralisation. The company's high priority targets are all located above interpreted, doubly-plunging fold structures over gravity highs where associated faulting is thought to be favourable for trap site development. The first phase of drilling, totalling approximately 5,000 m, will test relatively shallow targets between 150 m and 350 m below surface. The driller is set up on site and prepared to begin drilling this week. Further priority targets are anticipated as data processing and interpretation are completed for survey results from Survey Blocks 1A and 1B.

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