Jim's Mining Letter - June 27, 2024

Patriot Battery Metals (PMET.TSX PMT.ASX PMETF R9GA.F) announced an update on the 2024 Summer-Fall exploration and development programs at its 100%-owned Corvette Property located in the Eeyou Istchee James Bay region of Quebec. Two exploration rigs are operating at the CV13 Pegmatite, primarily undertaking step-out drilling targeting extensions of the recently discovered high-grade Vega Zone. Two drill rigs are collecting geotechnical and hydrogeological information to support advanced development and economic studies through feasibility. Surface exploration activities are underway, including detailed mapping at CV5 and CV13, channel sampling, and prospecting of prospective trends. Additional rigs are to be added starting in early July, focused on continued infill and geomechanical drilling at the CV5 Pegmatite. The successful commissioning of a 100%-owned exploration camp proximal to the property with all-season road access from the camp to the CV5 Pegmatite is reducing travel time and significantly increasing exploration efficiency and cost effectiveness. Environmental baseline data collection is being undertaken in partnership with First Nations, representing a key milestone in progressing the environmental and social impact assessment, due for submission in September 2025.

Lynas Rare Earths (LYC.ASX LYSDY LYIC.F) announced that the company is targeting first production of two separated heavy rare earths products in the 2025 calendar year. A new process will produce separated dysprosium and terbium at Lynas Malaysia for the first time and will complement Lynas’ existing light rare earths product range. Dysprosium and terbium are both essential to high performance rare earth permanent magnets used in electric vehicles and high-tech applications such as micro-capacitors which are essential to all electronic devices. Currently, dysprosium and terbium and other heavy rare earth oxides from the Mt Weld ore body are sold as a mixed heavy rare earths compound known as SEGH. The reconfiguration of one of Lynas Malaysia’s solvent extraction circuits will facilitate the separate production of dysprosium and terbium. The new circuit is designed with capacity to separate up to 1,500 tonnes of SEGH per year. Front end engineering design has been completed and detailed engineering design is underway, with commissioning and ramp up expected in mid-2025. The approximately $25 million CAPEX for this project will be accommodated within the previously disclosed Lynas Malaysia industrial plan.

Allied Gold (AAUC.TSX AAUCF) announced an update on the ongoing exploration and development activities at its Kurmuk project in Ethiopia. Significant exploration results continue to support the high probability of mineral reserves and mineral resource growth, indicating substantial upside potential. The project, which remains on track for first production in mid-2026, continues to make significant strides in both project execution and exploration activities aimed at increasing mineral inventories, extending mine life, and enhancing overall value and future returns to shareholders. The project is expected to achieve average annual gold production of over 290,000 ounces during the first five years and maintain production of over 240,000 ounces per year for the life of mine at an all in sustaining cost targeted below $950 per ounce and an initial 10-year mine life based solely on current mineral reserves. The ongoing project execution in support of these targets requires development capital of approximately $500 million, funded by available cash on hand and cash flows from producing mines, with the first gold pour expected in mid-2026.

Power Metal Resources (POW.L POWMF 2M50.F) announced the results from drillhole DDH1-14C at its Molopo Farms Complex project, where the company is targeting a district-scale nickel and platinum group element discovery in southwestern Botswana. Diamond core drill hole DDH1-14C was completed to a final depth of 832.6m, with the successful intersection of the targeted steeply dipping geophysical superconductor at the high priority Molopo Farms target area T1-14. The geophysical superconductor, identified by the ground moving loop electromagnetic and audio-frequency magnetotelluric surveys, is determined to be a sulphide mineralised carbonaceous to graphitic mudstone intersected between 760.5m - 813m downhole depth and from 828.4m - 832.6m (end of hole) where it remains open at depth. A total of 8 samples were collected from this interval for laboratory assay testing. Significant sulphur assays of up to 3.46% were identified, alongside one sample which returned anomalous nickel. This shows that the carbonaceous mudstones are a potential source of sulphur which, if mixed with the ultramafic intrusives of the Molopo Farms Complex, could lead to the formation of nickel sulphide deposits. Per the company, the importance of sulphur within these systems cannot be understated, since without abundant sulphur, magmatic sulphide deposits cannot form. With the successful identification of this sulphide rich horizon, the company says it has further confidence in the ability for the Molopo Farms Complex to host a nickel sulphide deposit or deposits. Power Metal now is looking to progress potential commercial pathways with a view to moving Molopo Farms to the next stage in its exploration programme.

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.