Jim's Mining Letter - May 29, 2024

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.

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