Jim's Mining Letter - June 2, 2024

Aris Mining (ARIS.TO ARMN) announced that it has entered into a binding agreement with MDC Industry Holding, a wholly-owned subsidiary of the Abu Dhabi based investment company Mubadala Investment, whereby Aris Mining will acquire an additional 31% joint venture interest in the Soto Norte gold-copper project in Colombia, bringing its total ownership to 51%. In exchange, Aris Mining will issue 15,750,000 shares to Mubadala, representing an approximate 9.9% ownership stake based on Aris Mining’s issued and outstanding shares as of March 31, 2024 , with an additional 6,000,000 shares to be issued on receipt of an environmental license. Soto Norte is one of the largest undeveloped underground gold projects in South America, set to employ modern and sustainable mining practices.

Argosy Minerals (AGY.AX ARYMF) announced that it has secured a $5 million strategic investment from Amperex Technology via a placement of new shares at A$0.14631 per share, a 15% premium to the 10-day volume weighted average price (as at 21 May 2024). Amperex has agreed to place its shares into a 12-month standstill period. Argosy says it is confident the strategic investment will facilitate a successful relationship with Amperex and provide an opportunity to leverage Amperex’s substantial technical capabilities to support Argosy’s ambitions and near-term growth phase to fully develop the Rincon Lithium Project. Amperex is a world leader in the development and high-volume production of lithium-ion batteries.

Trigon Metals (TM.V PNTZF) announced that it has achieved commercial production from the underground operations at its Kombat Mine in Namibia. Per the company, this marks a major step forward in Trigon’s path to becoming a leading mid-tier copper producer. Trigon defines commercial production status as operating at 70% of production capacity over 30 consecutive days. After restarting mining operations from the open pit in May 2023, the company commenced production from underground ahead of schedule, having announced underground training and the first blast on February 5, 2024. Underground production has resulted in an increase in the company’s metal output, owing to the higher grade of ore. As more high-grade ore tonnes from underground displace lower-grade open pit ore, copper production increases which is expected to translate into lower operating costs.

True North Copper (TNC.AX) announced an update in relation to its fully underwritten A$24.3 million equity raising. The company has now successfully closed: the institutional component (of the entitlement offer, raising a total of A$9.0 million (before costs) at an offer price of A$0.056 per share and the placement to institutional investors raising a further A$7.6 million (before costs). the retail component of the entitlement offer for A$7.7 million is anticipated to open on Friday, 31 May 2024. The equity raising, together with existing cash, will fund True North through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), exploration growth strategy and strengthen the company’s financial position.

Equinox Gold (EQX.TO EQX) announced the first gold pour at its new Greenstone Mine in Ontario, Canada. The mine has achieved its inaugural gold pour on schedule, producing 1,800 ounces of gold from the full recovery circuit, with all equipment operating as expected. The company says it looks forward to ramping up to commercial production in the third quarter of this year. The Greenstone Mine will be Equinox Gold’s flagship asset and largest, lowest-cost producer. When operating at capacity, the mine is expected to produce approximately 400,000 ounces of gold annually for the first five years, and average 360,000 ounces of gold per year for its initial 14-year mine life, making Greenstone one of Canada’s largest gold mines.

Adriatic Metals (ADT.AX ADT1.L ADMLF) announced the successful completion of its institutional placement of approximately $50 million. The offer was said to be strongly supported by both existing shareholders and new investors and, on the back of strong demand, Orion, an existing shareholder, decided to increase the size of its sell down. The funds received from the placement are expected to optimise the company's balance sheet as it continues to progress the ramp-up of the Vares operation and build on recent milestones such as the production of the first saleable concentrate. The company says it is now focused on achieving full ramp up by H2 2024 and delivering on the mine plan.

Collective Mining (CNL.TO CNLMF) announced assay results for three drill holes into the Apollo Porphyry System at the Guayabales Project in Caldas, Colombia. The company presently has five drill rigs operating at the project as part of its fully funded 40,000 metres drill program for 2024. Presently, drill rigs are operating at the Apollo, Box, Olympus and Trap targets. Drill cores from multiple holes are currently being assayed at ALS Laboratory in Lima, Peru with further results expected in short order. To date, Apollo has been expanded by up to 150 metres to the northwest by drilling 513.70 metres at 2.20 g/t AuEq and 825.70 metres at 1.11 g/t AuEq. Drilling over the balance of the year will remain aggressive as the company continues to push the limits of the system while simultaneously targeting high-grade sub-zones within the known mineralization envelope. Elsewhere on the Guayabales Project, CNL has completed the first two shallow drill holes at the Box target with core logging indicating there is a very large hydrothermal fluid system in place with deeper drilling required from the next set of holes, which is now underway. At the Trap target, the company has refined the geological model and now interprets that mineralization is related to a wide deformation zone on the west side of a northwest trending fault. At the Olympus target, steeply dipping veins have been intersected at a shallow elevation and if assays are favourable, would connect Apollo with Olympus in the northeast corner of Apollo. The goal is to outline a series of closely spaced porphyry and porphyry related systems capable of producing at more than 400,000 gold equivalent ounces on an annual basis.

Sheffield Resources (SFX.AX SFFRF) announced a production ramp-up at Thunderbird. For the current quarter to date, the mine has achieved production totalling approximately 1,350,000 tonnes, a significant increase from the previous quarter, and monthly mine production of approximately 750,000 tonnes during May 2024, consistent with the ramp up schedule toward an annualised ore mining rate of 10 million tonnes per annum as contained within the 2022 bankable feasibility study. Modifications to the dry mining unit, successfully undertaken early in the current quarter, have enabled sustained improved availability and production performance. The increase in mine production has resulted in increased production of concentrates, with approximately 65,000 tonnes of ilmenite produced in the quarter to date, and approximately 37,000 tonnes in the current month of May. Production of zircon concentrate totalled 20,000 tonnes for the quarter to date, with approximately 12,000 tonnes produced during May. As Thunderbird advances toward nameplate production capacity and consistent production, additional costs have been incurred, associated with inconsistent mining rates primarily due to observed oversize material. Scope changes to mining and logistics contracts also have resulted in cost increases relative to bankable feasibility study assumptions. Consequently, near term cash operating costs are expected to range between $55 million and $60 million per quarter. During full year 2025, a range of targeted programs including the transition to in-pit tailings disposal are expected to deliver reductions in the cost structure. Thunderbird product shipments for the June quarter to date have continued to grow.

Kincora Copper (KCC.V KCC.AX) announced that it has signed a definitive multiple-phase earn-in and joint venture agreement with a wholly owned subsidiary of AngloGold Ashanti (AU) for the Northern Junee-Narromine Belt Project, comprising the Nyngan and Nevertire licenses. AngloGold has the right to spend up to A$50 million to earn a 80% interest through: A$25 million of exploration expenditure to earn a 70% joint venture interest (Phase I) including a minimum A$2 million expenditure obligation, with Kincora the initial operator for a 10% management fee; and completion of a pre-feasibility study or funding of a further A$25 million of expenditure to earn a 80% joint venture interest (Phase II). Under the agreement a wide range of virgin, large intrusive-related copper-gold targets will be drill tested. The project is said to be a globally significant exploration opportunity.

Endeavour Mining (EDV.L EDV.TO EDVMF) announced that wet commissioning activities are now underway at the Lafigué project in Côte d’Ivoire. The project is on budget, with construction now 94% complete and the first gold pour is expected to take place in late-June, a quarter ahead of schedule. Lafigué is set to become another cornerstone asset in Endeavour’s portfolio, with over 200,000 ounces of annual production at an all-in sustaining cost below $900 per ounce over its initial 13 year mine life. The project was discovered through EDV’s own exploration programme for a cost of $31 million, equivalent to an industry low discovery cost of just $12 per indicated resource ounce. Initial growth capital expenditure for the project is $448 million, of which approximately 97% has been committed to date. The addition of the Lafigué mine to Endeavour’s portfolio, is expected to add average annual production of 203,000 ounces.

Sunstone Metals (STM.AX) announced that it has raised A$3.8 million through its recent institutional share placement and 1 for 9 non-renounceable entitlement offer. The entitlement offer raised a total of A$1.84 million and follows the placement announced on 3 May 2024 that raised A$2.0 million before costs. Both the entitlement offer and the share placement were priced at 1.1 cents per share. The shortfall shares under the offer which total 221,527,375 can be placed at the discretion of the board no later than three months after the closing date of the offer and the company expects to place these shortfall shares at a price no less than the issue price under the offer of A$0.011 per share. Proceeds will be used primarily to accelerate drilling at the Limon gold-silver epithermal discovery within the company’s Bramaderos concession and to fund other ongoing exploration activities on the company’s Bramaderos, El Palmar and Verde Chico gold-copper projects, plus fund corporate running costs and replenish working capital.

Atlantic Lithium (ALL.L A11.AX ALLIF) announced the commencement of geochemical soil sampling, geological mapping and rock chip sampling over the Senya Beraku licence in the eastern portion of the company's Cape Coast Lithium Portfolio in Ghana, which holds the flagship Ewoyaa Lithium Project. Highlights are the commencement of geochemical soil sampling, geological mapping and rock chip sampling over the newly-granted, previously unexplored Senya Beraku prospecting licence, representing 82.11 km2 of prospective tenure within 70 km from the Ewoyaa footprint. Senya Beraku sits 20 km east of the known Egyasimanku Hill-Winneba spodumene pegmatite field, where coarse grained spodumene pegmatites have been observed. 1,344 soil samples were collected as of 26 May 2024, with 5,405 samples planned to be collected in the ongoing programme.

Faraday Copper (FDY.TO CPPKF) announced that it has completed its previously announced bought deal financing, including the exercise in full of the underwriters' over-allotment option, for a total of 28,750,000 common shares sold at a price of C$0.80 per share for aggregate gross proceeds to the company of C$23 million. Faraday intends to use the net proceeds from the offering to fund advancement of the Copper Creek Project, located in Arizona, and for working capital and general corporate purposes. The Copper Creek Project is said to be one of the largest undeveloped copper projects in North America with significant district scale exploration potential.

Perseus Mining (PRU.AX PRU.TO) announced an update on its recently acquired Nyanzaga Gold Project in Tanzania. The compulsory acquisition process of the remaining OreCorp shares was completed on 20 May 2024 and Perseus now owns 100% of the shares in OreCorp Limited. Perseus is implementing three concurrent work streams: implementation of the Resettlement Action Plan, additional drilling of the Nyanzaga mineralisation, and front-end engineering and design. Feasibility level mining studies are being commenced on the Nyanzaga Gold Project with the intention of releasing Perseus’s first mineral resources and ore reserves estimates during the December quarter of 2024. Drilling to increase Perseus’s understanding of the Nyanzaga mineral resources will commence as soon as possible. Studies across the project are underway in order to optimise engineering and capital cost estimates for the project. A final investment decision for the Nyanzaga Gold Project is expected by year end, enabling project development to commence in the new year with the aim of first gold production during the first quarter of 2027. Perseus now has three operating mines currently producing gold at a rate of more than 500,000 ounces per year and two high-quality development projects that when brought on stream, should ensure that Perseus can maintain or exceed its targeted production level well into the next decade. The objective is operating at least four mines simultaneously,

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