Jim's Mining Letter - September 21, 2024

Blackrock Silver (BRC.V BKRRF AHZO.F) announced a non-brokered private placement of 15,625,000 common shares at a price of $0.32 for gross proceeds of $5,000,000. Eric Sprott subscribed for the entire offering. The shares will have a hold period of four months and one day and the net proceeds of the offering will be used to fund expansion drilling on the company’s Tonopah West property and for general working capital. The company describes itself as backed by gold and silver ounces in the ground and is focused on its 100% controlled Nevada portfolio of properties consisting of low-sulphidation, epithermal gold and silver mineralization located along the established Northern Nevada Rift in north-central Nevada and the Walker Lane trend in western Nevada…more

SolGold (SOLG.L SOLG.TSX SLGGF S8F.F) updated on its 100% owned Cascabel project, regional exploration projects, and additional strategic initiatives. The company says it is making significant progress across its portfolio. Preparations for the geotechnical program at Cascabel's tailings storage facility are progressing, with drilling locations and depths established. In recent weeks, scouting efforts have been completed evaluating current operating conditions and access routes, ensuring readiness for the planned mobilization of drill rigs in the fourth quarter of 2024. Assay results from the soil samples taken at the Cielito Norte target within the Blanca Nieves project in the first half of 2024 have been received and are undergoing detailed analysis to further understand the mineral potential. Cielito Norte covers approximately 6 km2 of variable altered and mineralised intrusive and volcanic rocks hosting previously reported high gold grade quartz veins indicative of a significant intrusive related copper and gold system located approximately 8 kilometres north-northwest of Cascabel…more

Polymetals Resources (POL.ASX) announced it has secured a pre-payment / loan facility to fund the Endeavor mine restart along with favourable offtake terms for delivery of zinc and silver-lead concentrates commencing during H1 2025. A $20 million (~A$30 million) facility has been secured and funds will be applied to the restart. The strategic partnership with global commodity trader Ocean Partners provides flexibility to pursue organic growth in parallel including an exploration growth plan and other inorganic opportunities. Mine restart work has commenced and is on track to deliver cashflow in H1 2025. Free cash flow is said to be A$609m over the 10-year mine plan with an average annual EBITDA of A$89m over the first 5 years…more

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Rainbow Rare Earths (RBW.L RBWRF RR1.F) announced an update on the Phalaborwa project in South Africa. Further to the piloting campaigns carried out to date, Phalaborwa has now produced its first magnet rare earth elements in a saleable form, paving the way for the first commercial recovery of rare earth elements from phosphogypsum. Offtake discussions have commenced with organisations looking to secure what Rainbow describes as a strategic and ethical source of the rare earths critical to the green energy transition. Longer-term, per the company, the honing of the technology will allow Rainbow to access a much larger addressable market in order to develop a long-term, scalable and sustainable business…more

Phoenix Copper (PXC.L PXCLF 5HR.F) announced a complete pre-feasibility report for the proposed Empire open-pit copper, gold and silver mine in Idaho. The project has a discounted net present value at 7.5% of $87.86 million, a 46.4% internal rate of return, $152.98 million cumulative net free cashflow over an 8-year mine life and total cash costs of $2.44 per copper equivalent pound. Life of mine production is estimated at 40,424 metric tonnes of copper, 40,161 ounces of gold and 1.76 million ounces of silver. A newly designed flotation circuit will be capable of processing high-grade sulphide ore, in addition to the open-pit oxide ore, and sulphide exploration planning is in the final stages, with a view to mining high grade sulphide material to augment the open-pit flotation feed. Recently purchased ball mills and additional equipment has been delivered to the site in Mackay.

Foran Mining (FOM.TSX FMCXF 48M.F) announced an update on the regional exploration strategy across its properties in Saskatchewan. Building on two years of detailed geophysical analysis and insights from the Tesla Zone discovery, the company says it is advancing high-priority anomalies to unlock further potential discoveries across its expansive land package. The ~8,000 metre Summer-Fall drill program is said to be progressing well, with a pipeline of targets advancing through exploration. Foran has completed over 17,800 line-kilometres of airborne geophysical surveys during 2023-2024 and permits have been secured to initiate an airborne electromagnetic survey over the Denare West property, targeting new exploration potential along strike from McIlvenna Bay. The regional drill program now underway is focusing on locations of interest such as the Bacchus prospect, aiming to advance exploration success…more

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Mithril Silver and Gold (MTH.ASX) announced results from drilling at its Copalquin District project in Mexico. Drilling has continued at the Target 1 area (El Refugio) in the Copalquin District with what is described by the company as a globally significant drill intercept. CDH-159 was drilled into a structure on the eastern side of the Target 1 area (El Cometa) returning the highest-grade intercept drilled at the property to date: 33.00m @ 31.8 g/t gold, 274 g/t silver from surface, including 7.00m @ 144 g/t gold, 1,162 g/t silver from 18m, including 2.00m @ 495 g/t gold, 3,765 g/t silver from 20m plus, including 1.00m @ 26.9 g/t gold, 201 g/t silver from 28m (g/t = grammes per tonne, m = metres). CDH-159 was designed to test the recently mapped and channel sampled structure that had been previously intersected by CDH-072 (6.8m 74.0 g/t gold, 840 g/t silver from 35.2m) from a different orientation. With this new data, a second hole has been drilled along strike (CDH-161) with assays pending. Three holes have been drilled down dip of the historic Refugio mine workings, where extensive mapping and channel sampling was completed earlier this year also with assays pending. Drilling is currently in progress on the western side of the Target 1 resource area. Per John Skeet, Mithril’s Managing Director and CEO, the company aims to double the 529,000 ounce @ 6.81 g/t AuEq1 resource in Q1 2025.

Oracle Power (ORCP.L 9OC.F) and its farm-in partner, Riversgold (RGL.ASX RGV.F), announced an update on the Northern Zone gold project in Western Australia. The latest aircore drilling, located 25 kilometres east of Kalgoorlie, continues to tag the top of an extensive gold-bearing porphyry system and widths are approaching 600 metres. Drill results from the first 8 of the 30 completed holes have now been received, which the company says are further validating the geological model for the previously announced exploration target at the project of 200 - 250 million tonnes at a grade of 0.4 - 0.6 grammes per tonne gold for 2.5 - 4.8 million ounces of gold. Further drilling results will be announced in due course.

Winsome Resources (WR1.ASX WRSLF 4XJ.F) announced positive results of on its 100% owned Adina lithium project, based on the proposed acquisition of the Renard diamond mine and on a National Instrument 43-101 - Standards of Disclosure for Mineral Projects compliant mineral resource estimate. The preliminary economic assessment is said to provide a compelling case to develop Adina through repurposing the processing facility at Renard, with a processing throughput of 4,650 tonnes per day for a dense media separation operation for the duration of the life of the mine. Stated is a 60.3% pre-tax internal rate of return, a 42.9% after-tax internal rate of return, a C$1.7 billion pre-tax net present value 8 and a C$1.0 billion after-tax net present value 8. The after-tax payback period is 1.8 years from start of life of mine, start-up capital cost is C$394.5 million (including access road construction, direct and indirect costs of C$84.3 million and an overall project contingency of C$67.1 million), reducing to C$350 million including Clean Technology Manufacturing Investment Tax Credit. The project is expected to generate over C$10.0 billion of gross revenue and C$1.6 billion in carbon, provincial and federal taxes and Québec mining duties as well as create over 500 jobs during construction and 600 direct jobs during operations.

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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.