Jim's Mining Letter - September 4, 2024

Emerald Resources (EMR.ASX EOGSF) announced that it has signed a binding term sheet with Golden Horse Minerals (GHML.V) to sell the company’s tenements located in Southern Cross, Western Australia, which comprise the Southern Cross Gold Project. As part of the transaction, Golden Horse will seek a dual listing on ASX. Emerald will receive consideration of 32 million Golden Horse shares at a deemed issue price of A$0.25 per share subject to the satisfaction of a number of conditions precedent including Golden Horse receiving conditional approval from ASX for admission to the official list, all necessary third-party approvals and regulatory consents being obtained in relation to the transfer of assets to Golden Horse, approval of the TSXV of the transaction and issuance of the consideration shares and receipt of shareholder approval. Emerald will also receive deferred consideration contingent on achievement of the following milestones: A$1,000,000 of Golden Horse shares at a 30-day volume-weighted average price at the time of releasing a JORC resource of 250,000 ounces of gold in respect of the Southern Cross Gold Project, A$1,000,000 of Golden Horse shares at a 30-day VWAP at the time of releasing a JORC resource of 500,000 ounces of gold in respect of the Southern Cross Gold Project and A$1,000,000 of Golden Horse shares at a 30-day VWAP at the time of announcing a decision to mine in respect of the Southern Cross Gold Project. While Golden Horse undertakes the ASX listing process, Emerald will provide a secured short-term loan facility to Golden Horse of up to A$2 million, subject to the satisfaction of various conditions precedent. Upon completion of the Transaction Emerald will hold a cornerstone investment in Golden Horse.

Wia Gold (WIA.ASX) announced results from the first phase reconnaissance RC drilling program completed at its Bouaflé Gold project in Côte d’Ivoire. 44 reverse circulation drill holes totalling 5,642 metres which were designed to test multiple targets delivered significant results including one intercept with 4 metres at 87.43 grammes per tonne of gold from 79 metres. Per Executive Chairman, Josef El-Raghy, Bouaflé could prove to be a high-quality project of scale after the identification of a significant mineralised zone which is only 30 kilometres from Perseus’s multimillion ounce Yaoure project and the company now will launch a second phase of this program, aiming to further define its full potential. As a priority, the second phase 2,000 metre RC drilling program is scheduled to begin in October, when access conditions are expected to improve in the area. The objective of this program is to fully explore the potential of this mineralised zone and its surrounding areas.

Great Southern Copper (GSCU.L E9E.F) announced that the scale of the target for the company's maiden drilling programme at the Mostaza mine has increased due to the recognition of significant zones of additional Cu-Ag mineralisation in historical drill-hole assays and surface rock chip samples. Preparations for the start of drilling continue with archaeological and environmental surveys now completed, and the selection of the drilling company via tender. On-going exploration at Cerro Negro also has identified additional copper mineralisation hosted in multiple structures parallel to the Mostaza trend further expanding global copper potential. Per Sam Garrett, Chief Executive Officer, exploration at Cerro Negro is rapidly advancing with three key objectives: drill beneath the historic Mostaza open pit to develop a high-grade copper-silver-gold resource, expand the Mostaza deposit along strike targeting extensions to the mineralised structures, and explore at depth targeting large-scale porphyry copper type deposits…more

Bellevue Gold (BGL.ASX BELGF) announced a maiden net profit after tax of $75 million for the year to 30 June 2024. The result follows a year which saw the company commission its Bellevue gold mine, with commercial production declared in May 2024. Bellevue generated free cash flow of $41 million in the June 2024 quarter from production of 42,705 ounces, highlighting the cash flow potential of the project as production continues to grow. In July, Bellevue announced its five-year growth plan under which production is forecast to increase to 250,000 ounces a year by FY 2028, materially growing the earnings and production profile and reducing the project all in sustaining cost profile to A$1,500-1,600/ounce in FY 2029. Guidance for FY 2025 is 165,000-180,000 ounces at an all in sustaining cost of A$1,750- A$1,850/ounce , with the production expected to be back-ended to the second half of FY 2025 as further development headings and underground advance rates ramp up to a forecast run rate of 1.35 million tonnes per annum by the end of FY 2025. Exploration expenditure of $30m has been budgeted for each of FY 2025 and FY 2026 to drill-test the exploration target of 1.5-2.5 million ounces at 8-10 grammes per tonne of gold to the south of the deposit. This is aimed at increasing the resource base and extending mine life. Cash flows generated from the project combined with the revised capital structure are forecast to self-fund investment in the accelerated underground development, in-mine exploration and infrastructure upgrades outlined in the five-year growth plan.

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