Interview with Christian Ervin Easterday, Managing Director & CEO of Hot Chili Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/hot-chili-asxhch-2blbs-of-copper-is-achievable-attractive-6668

Recording date: 31st March 2025

Hot Chili Limited has revealed a dual-track strategy leveraging a potential billion-dollar water business to finance its flagship Costa Fuego copper project in Chile. The company recently released prefeasibility studies for both its Huasco Water project and Costa Fuego copper development.

The Huasco Water initiative, a strategic asset developed over 20 months, consists of two stages. Stage one involves seawater supply to Costa Fuego, with an estimated NPV of $120 million and a 19% IRR over a 20-year supply period. The second stage encompasses a scalable desalination business with a potential post-tax NPV of approximately $1 billion, serving the broader Huasco region.

"This is about moving $150 million of capital from our copper project and putting it into that water project," explained Managing Director and CEO Christian Easterday. The company holds a unique position as one of only two companies in the past 18 years to secure maritime concessions for seawater extraction in Chile's water-scarce Atacama region.

The Costa Fuego copper project itself shows promising economics with a $1.2 billion post-tax NPV, 19% IRR, and $1.27 billion initial capital requirement. The project is designed to produce approximately 95,000 tonnes of copper and 50,000 ounces of gold annually over a 20-year mine life, with competitive cash costs of $1.38 per pound.

Easterday highlighted the project's competitive positioning: "We've delivered a top quartile production capacity project outside of the hands of a major and the lowest quartile capital intensity of a developer outside the majors."

The company's financing strategy includes traditional debt, precious metal streaming, offtake agreements, and strategic asset monetization through the water business. The project economics show a 4.5-year payback period, with projected revenues of $17 billion and free cash flow of $4 billion over 20 years.

Hot Chili is actively engaged in discussions with potential strategic partners, benefiting from the scarcity of large-scale copper projects globally. "When there's only five of you, the list gets smaller," noted Easterday, referring to the limited number of comparable projects available for development.

This strategy comes amid record copper prices, which recently hit $5.38 per pound, creating a favorable backdrop for advancing the project in a market characterized by a 4.5 million ton deficit and intensifying competition for high-quality copper assets.

View Hot Chili's company profile: https://www.cruxinvestor.com/companies/hot-chili-limited

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Interview with Shaun Bunn, Managing Director, Empire Metals

Our previous interview: https://www.cruxinvestor.com/posts/empire-metals-loneee-massive-titanium-exploration-target-with-150-year-supply-potential-5528

Recording date: 27th of March 2025

Empire Metals has discovered what it claims is the world's largest titanium deposit in Western Australia, with an exploration target of approximately 26-32 billion tons of ore. The company is positioning itself as an emerging player in the global titanium market with this strategic discovery in a tier-one mining jurisdiction.

A key advantage of the deposit is its weathered surface cap extending 60-80m deep, representing 4-5 billion tons of easily accessible, friable ore that requires no drilling or blasting. This natural feature significantly reduces potential mining costs as there is no overburden or waste to remove.

The company has already achieved early success in metallurgical testing, producing a 92% titanium dioxide product that contains none of the deleterious elements such as uranium, thorium, chromium, or heavy metals that typically plague other titanium sources. This gives Empire's product a significant competitive advantage in the market.

Unlike traditional titanium sources that rely on ilmenite processing, Empire's deposit contains titanium dioxide minerals that require approximately half the acid for processing – about one ton of acid per ton of mineral versus two tons for ilmenite. The company aims to produce high-value, pigment-grade titanium dioxide rather than intermediate concentrates.

Empire Metals is currently working toward a JORC-compliant mineral resource estimate, focusing initially on a smaller high-grade area of the massive deposit. The company recently completed a drilling program in February 2025 with 84 holes on a 100x100 meter grid, which will be expanded in the coming months.

The project benefits from a favorable permitting environment as it's located on private farmland in Western Australia's wheat belt, avoiding native title issues or crown land complications. This location, combined with the strategic importance of titanium for defense and aerospace applications, could enable fast-tracking through the approvals process.

With £4.8 million in cash, Empire Metals is well-funded to advance its development plans. The company expects to move toward production relatively quickly by industry standards, with potential revenue generation possibly beginning by 2026.

As Managing Director Shaun Bunn summarized: "If you wanted to find the perfect source to go and change and disrupt the industry and be able to produce titanium at a lower cost and a higher quality, this is the ore body that you needed to find."

Learn more: https://www.cruxinvestor.com/companies/empire-metals

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Interview with Simon Marcotte, President & CEO of Northern Superior Resources Inc.

Recording date: 28th March 2025

Northern Superior Resources is positioning itself as a key player in Quebec's Chibougamau gold camp, where the company has been leading consolidation efforts in what CEO Simon Marcotte believes will become "the next big gold camp to emerge" in Canada.

The Chibougamau camp currently hosts approximately 12.5 million ounces of gold resources between Northern Superior and IAMGold, with substantial growth potential. What makes this district particularly attractive is the proximity of multiple deposits to each other, creating an opportunity for a hub-and-spoke operation where several deposits could feed a single processing facility.

Northern Superior's flagship Philibert project currently hosts about 2 million ounces at 1.1 g/t gold. Marcotte emphasizes that by increasing the cut-off grade slightly, the grade rises to 1.3 g/t while only losing about 10% of the ounces. This gives Philibert significantly higher grade than IAMGold's nearby Nelligan project, potentially positioning it as the ideal "starter pit" for the district.

The company is currently conducting a 20,000-meter drilling campaign at Philibert, which has already yielded promising results, including a 26-meter intersection grading 2.6 g/t gold located 200 meters east of the current pit design.

Northern Superior sees multiple strategic pathways forward, including possible acquisition by IAMGold, forming a joint venture with IAMGold, attracting another major producer as a partner, or developing a standalone operation. Marcotte believes district-wide consolidation is inevitable, stating it "makes too much sense to wrap all projects together somehow not to do it."

In a separate strategic move, Northern Superior recently spun out its Ontario assets into ONGold Resources while maintaining a 62% ownership stake. ONGold's key assets include the TPK project and the Monument Bay project (3 million ounces at 1.2 g/t), the latter now in partnership with Agnico Eagle.

Management and key investors collectively own 25% of Northern Superior, creating strong alignment with shareholders. The team includes CEO Simon Marcotte, Chairman Victor Cantore (known for success with MX Exploration), and largest shareholder Michael Gentile.

As the gold sector experiences improving market conditions, Northern Superior appears well-positioned to benefit from increasing institutional interest in the junior gold sector and the growing appetite for quality assets in stable mining jurisdictions like Quebec.

View Northern Superior Resources' company profile: https://www.cruxinvestor.com/companies/northern-superior-resources-inc

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Interview with William Sheriff, Executive Chairman of enCore Energy Corp.

Our previous interview: https://www.cruxinvestor.com/posts/wyoming-uranium-companies-at-heart-of-the-us-nuclear-revival-5749

Recording date: 28th March 2025

enCore Energy stands at a pivotal moment in its corporate journey, emerging as one of only two uranium producers in the United States at a time when domestic production capabilities carry increasing strategic importance. The company has recently undergone significant management changes, with the board deciding to replace CEO Paul Dorenson to refocus priorities from the building phase to production efficiency.

Executive Chairman Bill Sheriff characterizes this transition as necessary to instill a greater "sense of urgency" throughout the organization. "We are changing the culture and the culture starts from the top down in any organization," Sheriff explains. "A sense of urgency doesn't mean panic, it means motion. You need to keep things in motion."

The company's In-Situ Recovery (ISR) operations in Texas present an unusual technical challenge – the recovery process works exceptionally well, with over 80% of uranium recovered within just four months. This creates what Sheriff describes as a "double-edged sword" – rapid cash flow generation coupled with the need for continuous drilling to maintain production levels. The company's challenge has been keeping drilling activities paced appropriately to offset the steep production decline curves.

This production profile differs significantly from typical ISR operations, which generally see recovery spread over 12-15 months. Sheriff compares the situation to natural gas from fracking: "You get several months of joy and then it tails off very quickly. You don't get any less product, you just get it a whole lot sooner."

The management reset coincides with enCore implementing several strategic initiatives. The company has eliminated uranium spot market purchases to fulfill contracts – a practice that previously resulted in financial losses when buying at higher prices than contracted sales prices. Sheriff confirms: "Looking forward in 2025, all projections are we will not buy uranium in the spot market to deliver into our contracts this year."

Cost optimization efforts are underway, with the company "rationalizing every position and every expenditure." Production costs were approximately $40 per pound according to recent filings, with management confident in their ability to improve this metric. The company has also divested its New Mexico assets to concentrate resources on production-stage projects in Texas and South Dakota, adding approximately $30 million to its balance sheet through asset dispositions.

For investors, enCore represents a rare opportunity to gain exposure to actual uranium production in the United States. While the company has faced operational challenges, its focus on efficiency, cost control, and production growth positions it to potentially benefit from improving uranium market fundamentals. As Sheriff notes: "If you're looking at it as a race, we've got a heck of a head start over those that aren't in production or those that aren't even permitted yet."

Investors should monitor upcoming quarterly reports for evidence that operational improvements are translating into enhanced financial performance. With many competitors facing significant hurdles to reaching production, enCore's status as an active producer with cash flow provides a meaningful competitive advantage in an increasingly supply-constrained uranium market.

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View enCore Energy's company profile: https://www.cruxinvestor.com/companies/encore-energy

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Interview with Troy Boisjoli, CEO of ATHA Energy Corp.

Our previous interview: https://www.cruxinvestor.com/posts/long-term-uranium-investors-find-value-in-volatility-6766

Recording date: 24th March 2025

ATHA Energy Corp. is making substantial progress on its Angilak uranium project in Nunavut, Canada, which shows promising signs of becoming a major uranium resource. CEO Troy Boisjoli, formerly Cameco's chief geologist, recently outlined the company's exploration success and future plans.

The Angilak project, acquired just over a year ago, already boasts a historic resource of 43.3 million pounds at 0.69% U308. Last year's 10,000-meter drill program expanded the mineralization zones, with all 25 drill holes successfully intersecting uranium. This work helped establish an exploration target range of 62-98 million pounds.

A recently completed structural study has confirmed a 31-kilometer trend across the Angikuni Basin, showing high-grade uranium samples up to 47.6% U308 on surface at multiple locations. This extensive surface mineralization is something Boisjoli claims he has "never seen" in the Athabasca Basin, where he previously worked.

The project shares geological similarities with Saskatchewan's uranium-rich Athabasca Basin but appears to have significantly more surface mineralization. Even sandstone samples within the basin show uranium values of 10-20%, compared to typical Athabasca alteration halos that might show only 10-20 parts per million.

ATHA is focusing most of its resources on Angilak exploration in 2025, with crews already mobilized. The company's strategy includes expanding known mineralization around the Lac 50 trend, testing the previously undrilled "Mushroom Lake" outcrop, and exploring the newly identified structural corridor.

While Angilak is in a remote area, Boisjoli sees Nunavut as a mining-friendly jurisdiction, noting that approximately 50% of its GDP comes from mining activities. The company has secured agreements with local communities and multi-year exploration permits.

In terms of scale, Boisjoli noted that overlaying the Angilak project area on the northeast Athabasca Basin would cover an area stretching from Rabbit Lake to Cigar Lake, encompassing multiple mines. He suggested that a resource in the 80-100 million pound range would make the project "very attractive."

Boisjoli believes the current uranium market fundamentals are strong, describing it as "a generational period" comparable to the 1970s in terms of demand growth. With supply constraints expected as major mines approach the end of their productive lives, he sees a significant opportunity for large-scale projects in favorable jurisdictions like Canada.

View ATHA Energy's company profile: https://www.cruxinvestor.com/companies/atha-energy

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Interview with Elaine Ellingham, President & CEO of Omai Gold Mines Corp.

Our previous interview: https://www.cruxinvestor.com/posts/omai-gold-mines-tsxvomg-unearthing-guyanas-multi-million-ounce-golden-potential-5939

Recording date: 24th March 2025

Omai Gold Mines (TSXV: OMG) is making significant progress developing a past-producing gold property in Guyana that was previously South America's largest primary gold producer. The company has established a substantial resource base of 4.3 million ounces across two deposits – Wenot and Gilt Creek – with 2 million ounces in the indicated category and 2.3 million ounces in the inferred category.

Recent exploration efforts have yielded promising results, particularly at the Wenot deposit where drilling below 350 meters has revealed higher grades, including an exceptional intersection of 4.48 g/t gold over 57 meters. The company is employing both infill and step-out drilling strategies to expand the resource. Infill drilling is targeting areas with spacing exceeding 150 meters, while step-out drilling aims to extend the resource to greater depths.

"We've been drilling about 14,000 meters of additional drilling last year and another 8,000 meters already this year," noted Elaine Ellingham, President and CEO of Omai Gold Mines.

The Gilt Creek deposit, located only 400 meters from Wenot, has also shown promise. Recent drilling intersected 774 meters of mineralized intrusive rock averaging 1 g/t gold. The existing resource at Gilt Creek stands at approximately 1.8 million ounces with an average grade of 3.2 g/t.

A preliminary economic assessment completed last year demonstrated a net present value of $560 million USD with a 13-year mine life and average annual production of 142,000 ounces of gold. However, management considers this a baseline scenario and aims to extend the mine life to 20 years in future assessments.

"It was just a starting point for us but still a very healthy net present value," Ellingham explained.
Omai Gold is well-funded following a recent financing round that raised over $25 million, with current cash reserves exceeding $30 million. This positions the company to continue its exploration and development activities throughout the year.

The project benefits from several operational advantages, including being a brownfield site with known metallurgy, good road access, and proximity to assay labs in Georgetown. All-in drilling costs remain below $200 per meter, considered exceptional in the current environment.

Currently trading at approximately $38 per resource ounce, management believes the company represents a compelling investment opportunity compared to peers in the Guyana Shield region.

View Omai Gold Mines' company profile: https://www.cruxinvestor.com/companies/omai-gold-mines

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Interview with Max Porterfield, President & CEO of Callinex Mines Inc.

Our previous interview: https://www.cruxinvestor.com/posts/callinex-mines-tsxvcnx-drilling-for-high-grade-copper-riches-in-manitobas-flin-flon-belt-6063

Recording date: 24th March 2025

Callinex Mines is developing high-grade copper and gold-rich VMS (Volcanogenic Massive Sulfide) deposits in Manitoba's Flin Flon mining district. The company's flagship Rainbow deposit, coming within 90 meters of surface and drilled to a depth of 900 meters, represents one of the highest-grade copper resources in North America.

Led by President and CEO Max Porterfield, Callinex has submitted an advanced exploration permit that would allow development of a ramp to access Rainbow and extract a 10,000-ton bulk sample. This first phase of permitting, potentially approved by late 2025, could lead to full-scale production after obtaining an environmental license.

"If you're buying Calinex today for less than a $20 million market cap Canadian, you're getting exposure to just shy of 6 million tons of some of the highest grade copper mineralization not just North America but on a global basis," stated Porterfield.

The majority of Rainbow's resource (3.44 million of 4.7 million tons) already falls within the indicated category. The company has consolidated over 10,000 hectares of underexplored land, creating a district-scale opportunity in what it calls the "Pine Bay camp."

Rather than focusing on infill drilling at Rainbow, Callinex is shifting attention to growing resources through exploration at shallow historic deposits. Primary targets include the "Visionary" area containing the Leo deposit and the "General" area with the Alberts deposit. Historical drilling at Visionary intersected significant mineralization, including 8.5 meters of 3% copper in one hole and 3 meters of over 5% copper with gold credits in another.

Callinex is the only junior mining company with a 43-101 copper resource in Manitoba and the only copper resource within 30 kilometers of Flin Flon. The company maintains a tight capital structure with no debt, positioning itself for growth as it pursues a two-pronged approach of resource expansion and permitting advancement.

With copper prices rising amid projected supply deficits by 2030, Callinex's high-grade resources in a stable jurisdiction appear well-positioned. As Porterfield noted, "Being in Canada, being in a safe jurisdiction, being in close proximity to this infrastructure and being in a position to be able to fast track that as our leaders within Canada look to explorers like Kalinex to transition and be the next producers puts us in an ideal place."

View Callinex Mines' company profile: https://www.cruxinvestor.com/companies/callinex-mines

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Our previous episode: https://www.cruxinvestor.com/posts/us-resource-equities-poised-to-rally-on-permitting-changes-and-project-pipelines-6275

Recording date: 24th March 2025

Compass, Episode 9

Gold and copper prices have reached or are approaching all-time highs, creating favorable conditions across the mining industry. This price environment is beginning to positively impact equity valuations, particularly for producers adding cash to their bottom line at these record commodity prices.

A significant indicator of market cycle progression is the accelerating pace of mergers and acquisitions. The M&A trend has evolved from producer-to-producer transactions to producer-to-developer deals, representing a natural maturation in the mining cycle. Recent notable transactions include Calibre-Equinox, Gold Fields' offer for Gold Road, Spartan's acquisition by Ramelius, and Northern Star's purchase of De Grey.

What's particularly noteworthy is the increasing scale of these deals, with several multi-billion dollar transactions resetting expectations for developer valuations. The Australian market appears to be leading this trend.

Several cash-rich producers remain positioned to make acquisitions, including Lundin Gold, Dundee, Iamgold, Barrick, and Centerra. With gold at all-time highs, producers are experiencing improved cash flows, making acquisitions easier to justify.

The current market conditions are especially advantageous for single-asset producers looking to diversify and grow into multi-asset, mid-tier companies. Companies like Lundin Gold and Torex can leverage their strong market capitalizations to acquire additional properties, following a path similar to B2 Gold in previous cycles.

Jurisdiction has become increasingly important, with a growing emphasis on secure Western locations. Recent policy developments in North America are enhancing project attractiveness, with Trump signing an executive order to streamline US permitting and Canada's federal government reducing its role in the permitting process. Finland and Sweden also represent favorable jurisdictions with straightforward regulatory frameworks.

Three companies highlighted as particularly well-positioned in this environment include Troilus (with 13+ million ounces of gold in Quebec), Arizona Sonora (a copper project in the US with Rio Tinto involvement), and Omai (a gold project showing resource growth potential).

As the market matures, investors are advised to position themselves in promising developers and explorers ahead of broader capital flows. While some companies have already seen significant share price appreciation, quality projects in favorable jurisdictions with clear paths to production remain available at attractive valuations.

The progression from producer-focused to developer-focused M&A signals a maturing bull market that should benefit quality development projects, creating opportunities for investors who can identify valuable assets before they're recognized by the broader market.

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Interview with Jason Attew, President & CEO of Osisko Gold Royalties

Our previous interview: https://www.cruxinvestor.com/posts/which-gold-miners-are-primed-for-a-re-rating-5309

Recording date: 21st March 2025

Osisko Gold Royalties has undergone a remarkable transformation under CEO Jason Attew, emerging as a pure-play precious metals royalty and streaming company with a strengthened balance sheet and simplified business model. With its 10th anniversary recently celebrated, the company now boasts a portfolio of 185 assets, including 21 producing properties.

The most significant change has been abandoning the previous "generator/incubator" model, which involved purchasing and developing mining assets. According to Attew, this approach led to "destruction of shareholder value" due to the different skill sets required for development and the challenges of permitting and construction in today's inflationary environment. Instead, Osisko now focuses exclusively on providing capital through royalties and streams on high-quality assets managed by technically skilled teams in premium jurisdictions.

Governance improvements have been another priority, with the elimination of the executive chair position, removal of related party transactions, and complete independence from other Osisko group companies. The company has also significantly reduced its net debt from over $250 million to approximately $35 million, while securing $750 million CAD in liquidity for future transactions.

Osisko's portfolio is anchored by its crown jewel - a 5% royalty on Canadian Malartic operated by Agnico Eagle, representing approximately 37.5% of 2024 cash flow. Approximately 80% of the company's net asset value comes from tier-one jurisdictions in Canada, the US, and Australia, reducing geopolitical risk.

Despite being a mid-tier player with about 5% of the sector's market capitalization, Osisko has captured approximately 10% of royalty deal flow, completing three transactions in 2024. These included acquiring a 1.8% royalty on Dalgaranga in Western Australia and participating in a syndicated transaction with Franco-Nevada for the Cascabel asset in Ecuador.

Looking ahead, Osisko projects 40% growth over the next five years, with production increasing from 81,000 gold equivalent ounces in 2024 to between 110,000 and 125,000 ounces. Half of this growth will come from assets already in production, including Mantos Blancos and Island Gold.

With a disciplined investment approach targeting deals between $50-500 million, strong margins of approximately 97%, and increasing institutional investor support, Osisko has positioned itself as a competitive force in the precious metals royalty sector, outperforming its peers in 2024 despite being a relatively young company in the space.

View Osisko Gold Royalties' company profile: https://www.cruxinvestor.com/companies/osisko-gold-royalties

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Interview with Andrew Cox, President & CEO, and Alex Black, Executive Chairman, of Rio2 Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/erdene-rio2-tsxerd-tsxvrio-two-gold-juniors-battle-market-skepticism-on-path-to-production-6552

Recording date: 20th March 2025

Rio2 Limited is making significant progress on its Phoenix Gold Project in Chile's Atacama Desert, one of the few substantial new gold production developments in an industry dominated by mergers rather than new supply. With 5 million ounces of measured and indicated gold resources, the project is fully funded and on track for first gold pour in January 2026.

Located at elevations approaching 5,000 meters, construction officially began in October 2024 after pre-construction activities were initiated in 2022 with early financing from Wheaton Precious Metals. Currently, approximately 1,130 workers are on site, approaching the expected construction peak of 1,200 workers.

The project features favorable economics with a relatively low capital expenditure of approximately $120 million for 2025. Its simple open-pit mining operation benefits from low strip ratios (0.85:1 initially, 1.2:1 in expansion phase) and minimal pre-stripping requirements, as mineralization outcrops at surface across extinct volcanic peaks.

Initial production will target 1.7 million ounces of the total 5 million ounce resource, with output expected to reach around 70,000 ounces in 2026, ramping up to 100,000 ounces annually by 2027. The company is already planning an expansion to triple production to approximately 300,000 ounces per year.

Current challenges include managing winter construction timelines and water logistics. Initially, Phoenix Gold will operate using trucked water from Copiapó, while evaluating three desalination plant options for the longer term. The company is working collaboratively with Kinross to develop a shared water solution.

After previously facing regulatory delays when a new government came to power in Chile, Rio2 has successfully navigated these hurdles and received its environmental approval with additional monitoring conditions.

Management views the current market valuation (approximately $250 million USD) as substantially undervaluing the project given its scale and near-term production status. They draw comparisons to other recent producers that have grown to multi-billion dollar valuations once reaching production.

The project's remote location minimizes typical environmental and community impact concerns, with no nearby population centers, no surface water to be affected, and limited flora and fauna. Executive Chair Alex Black emphasizes the project's simplicity: "We're confident, I mean this is simple... it's all about simplicity here and it's an earthmoving exercise."

View Rio2's company profile: https://www.cruxinvestor.com/companies/rio2-limited

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