Interview with George Sakalidis, Managing Director of Magnetic Resources

Recording date: 20th December 2024

Magnetic Resources (ASX: MAU) has emerged as a significant player in Western Australia's gold sector with a major discovery in the Laverton region, approximately 300km north of Kalgoorlie. The company has delineated nearly 2 million ounces of gold since staking the ground in 2017, achieved through an extensive drilling campaign comprising 170,000 meters across 1,900 holes.

The company's flagship Lady Julie North 4 deposit currently hosts 1.5 million ounces, with a resource upgrade expected in January. Recent drilling results have been particularly impressive, featuring high-grade intercepts including 76m @ 2.5 g/t and 24m @ 5 g/t gold. The deposit has demonstrated considerable depth potential, extending up to a kilometer down dip, supporting plans for both open pit and underground operations.

A feasibility study, due in March, will examine development scenarios targeting initial production of 150,000 ounces per year. The project's economics appear robust, with preliminary studies based on a A$3,200/oz gold price showing an NPV of A$925 million, EBITDA of A$1.4 billion, and an impressive 135% Internal Rate of Return with a 12-month payback period.

The project's strategic location presents significant advantages, sitting just 10-15km from two major processing plants operated by Gold Fields and Genesis. Both facilities are currently operating below capacity, opening potential opportunities for toll treatment arrangements or corporate transactions. The site also benefits from existing infrastructure, including access to a gas pipeline and proximity to established mining roads.

Magnetic Resources, led by Managing Director George Sakalidis, has achieved these results at a remarkably low discovery cost of $9 per ounce. The company is well-funded with A$12 million in the bank, sufficient to complete its feasibility study, and is engaged in discussions with banks regarding project financing.

The project's development path appears to have two potential routes: either advancing to production independently or pursuing a corporate transaction with neighboring producers seeking additional feed for their processing facilities. The company has established a data room and is entertaining potential M&A interest, though management emphasizes they are equally prepared to proceed with development independently.

With its combination of scale, grade, strategic location, and robust economics, Magnetic Resources represents a significant new development in Western Australia's gold sector. The upcoming resource upgrade and feasibility study in early 2025 will be crucial catalysts in determining the project's ultimate development path.

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Interview with Gwen Preston, VP Investor Relations of West Red Lake Gold Mines Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/west-red-lake-gold-mines-tsxvwrlg-near-term-gold-production-6264

Recording date: 19th December 2024

West Red Lake Gold Mines (WRLG) is on the cusp of reviving the historic Madsen gold mine in the renowned Red Lake district of Ontario, Canada. The company acquired the previously producing high-grade asset out of bankruptcy and has spent the last 18 months aggressively de-risking and advancing it back towards production.

The flagship Madsen project boasts a robust indicated resource of 1.7 million ounces grading 7.4 g/t gold, with the potential for further growth. WRLG's phased restart plan centers on initially mining the easily-accessible high-grade Upper 8 Zone deposit. A new Pre-Feasibility Study (PFS), due out in early 2025, is expected to showcase an operation producing 60-65,000 ounces of gold annually. At current gold prices, this should generate significant free cash flow.

Over the past year, WRLG has checked off several key de-risking milestones at Madsen. This includes completing over 80,000 meters of infill drilling to better define resources, developing additional underground access to support future mining, and finishing key surface infrastructure projects. The company also constructed a new Connector Drift which will allow for ore and waste haulage from the larger West Portal, greatly enhancing operational efficiency.

Looking ahead, major upcoming catalysts for WRLGM include the PFS in early 2025, processing of an 8,000 tonne bulk sample to confirm grade continuity, and a construction decision underpinned by a recently secured $35M project debt facility. Madsen benefits from extensive existing infrastructure and a relatively modest go-forward capex profile.

From a macro perspective, gold looks poised for a strong run in 2025 as the U.S. dollar weakens, real rates remain in negative territory, and safe haven demand picks up steam. This should provide a favorable backdrop for advancing assets like Madsen. Many analysts see the yellow metal retesting its all-time high above $2,000 per ounce in the coming year.

Despite its advanced stage and near-term path to production, WRLG still trades at a discount to peer gold developers. However, this valuation gap is expected to close as Madsen hits key de-risking milestones in 2025 and the market gains confidence in the company's ability to execute. With a market capitalization of over C$150 million, WRLG looks to have ample room to re-rate higher as it transitions into the producer ranks.

In a precious metals bull market, single-asset developers in premium jurisdictions with near-term growth tend to command premium valuations. WRLG has positioned itself to join this club in 2025 through the disciplined advancement of the Madsen gold project. With a clear path to first production, a robust high-grade resource base, and multiple exploration targets, WRLG offers a compelling opportunity for investors seeking gold exposure via an emerging Canadian producer.

View West Red Lake Gold Mines' company profile: https://www.cruxinvestor.com/companies/west-red-lake-gold-mines-inc

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Interview with Chris Showalter, Director & CEO of Lifezone Metals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/lifezone-metals-nyselzm-powering-the-ev-revolution-with-clean-nickel-technology-in-tanzania-6232

Recording date: 20th December 2024

Lifezone Metals has strengthened its position in the nickel market with a significant resource upgrade at its Kabanga project in Tanzania. The company recently announced a 20% increase in contained nickel in measured and indicated resources, reaching 46.8 million tons at 2.09% nickel grade, including over 3 million tons grading above 3% nickel.

The Kabanga project, which has seen over $200 million invested in drilling to date, has emerged as one of the highest-grade undeveloped nickel deposits globally. The project's resource base is notably well-defined, with more than 80% classified in the measured and indicated categories – an uncommon achievement for a development-stage project.

Lifezone has made substantial progress in securing financial backing for Kabanga's development. Mining giant BHP has joined as a strategic partner, while discussions are advancing with the U.S. International Development Finance Corporation (DFC) for political risk insurance. The company has also signed an MOU with Japan's JOGMEC to facilitate nickel marketing to Japanese end-users, potentially opening doors for additional strategic partnerships.

On the technical front, Lifezone has successfully demonstrated its processing capabilities, producing high-purity battery-grade nickel and cobalt products from Kabanga ore samples. This achievement marks the first time Kabanga's nickel has been processed to a final refined end-product, validating the company's hydromet processing technology.

Beyond Kabanga, Lifezone is diversifying through its recycling business. The company has formed a 50/50 joint venture with Glencore to recover valuable metals, including PGMs, nickel, cobalt, and copper, from recycled batteries and end-of-life vehicles in North America. This venture aims to streamline the currently fragmented battery recycling supply chain through vertical integration.

CEO Chris Showalter emphasizes the strategic importance of Kabanga's high-grade resource in an increasingly competitive market, particularly given Indonesia's dominant position in global nickel supply. The project's superior grade is expected to enable lower-cost production and reduced environmental impact compared to peers.

The investment case for Lifezone Metals centers on its exposure to growing nickel demand from the electric vehicle sector, anchored by a high-grade resource and clear financing strategy. With both the Kabanga project and recycling business advancing, near-term catalysts include the completion of Kabanga's definitive feasibility study, financing milestones, and recycling business developments.

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Interview with Ben Turney, CEO of Kavango Resource PLC

Our previous interview: https://www.cruxinvestor.com/posts/kavango-resources-lsekav-unlocking-southern-africas-gold-copper-potential-through-exploration-5078

Recording date: 19th December 2024

Kavango Resources (LSE:KAV) is advancing a two-pronged strategy in southern Africa, combining near-term gold production in Zimbabwe with copper exploration potential in Botswana. The company has recently secured £6.5 million in funding to accelerate its transition to becoming a cash-generating producer in 2025.

In Zimbabwe, Kavango is fast-tracking two gold projects toward production. Prospect 4, their high-grade underground project, has shown promising initial results with drilling intersecting 2.5m at 29 g/t gold. The company plans to implement a spiral decline mining method with an initial target of 200 tonnes per day at 3 g/t gold, projected to generate $500,000 in monthly free cash flow. Within three years, the company believes this single 90-hectare block could generate between $2.5-3 million in monthly free cash flow.

Their second project, Prospect 3, is being developed as an open-pit heap leach operation. The company aims to process 30,000 tonnes monthly, targeting 15 kg of gold production per month for approximately $1.2 million in monthly revenue, with estimated free cash flow of $200,000 per month by mid-2025.

Kavango's strategy differs from traditional mining development approaches. Rather than building up a large resource before seeking project finance, the company is pursuing a staged development approach, starting small and using cash flow to fund expansion. This strategy is designed to avoid the pitfalls that have led to failures among larger London-listed mining companies.

The company sees significant potential in Zimbabwe's underexplored greenstone belts, comparing the opportunity to Western Australia 50 years ago but with the advantage of modern technology and mining methods. Their ultimate goal is to prove up a 10-million-ounce gold resource in this virgin terrain.

In Botswana, Kavango holds what it describes as the last large remaining land package in the Kalahari Copper Belt, neighboring projects operated by major mining companies including Rio Tinto, BHP, and Sandfire. While still at the grassroots stage, the company's exploration results are showing promise, with drilling vectoring in on several prospective targets.

The company has brought in an experienced Australian mining engineer to oversee the implementation of modern mining methods, particularly the mechanized spiral decline approach, which they believe will provide significant advantages over traditional shaft mining in Zimbabwe.

This strategy is to have both near-term production potential in gold and longer-term exploration upside in copper, with management focused on creating value through an aggressive but staged development approach.

View Kavango Resources' company profile: https://www.cruxinvestor.com/companies/kavango-resources

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Revival Gold (TSXV:RVG) is strategically assembling a sizable gold portfolio across two historically productive U.S. projects, with a phased development approach designed to maximize value creation and mitigate risk for investors.

The company's 2024 acquisition of the 1.6Moz Mercur project in Utah was transformative, complementing Revival's existing 4.6Moz mineral resourced flagship Beartrack-Arnett project in Idaho. The deal boosted Revival's total resource base to an impressive 6.2Moz, with both assets located in attractive brownfield jurisdictions.

Revival's disciplined strategy focuses on leveraging existing infrastructure to fast-track development timelines and reduce execution risk and capex. CEO Hugh Agro emphasized, "We've got infrastructure, power line, road, water access, lots of technical data which saves us money but importantly it also saves us time."

Agro, a 35-year industry veteran, is taking a page from the Australian mining playbook in carefully staging Revival's development plans. Initial capex is estimated at a relatively modest $200M or less for Mercur, with the project now advancing through a PEA. "We can grow sequentially into the next and subsequent phases for lower capital through self-generated cash flow and for lower risk," he explained.

This measured approach stands in contrast to many single-asset developers struggling to finance mega-projects relative to their market caps. Agro put it bluntly: "A billion dollar project on a $60 million market cap is an awful tough thing to deliver." Revival is targeting initial production within approximately three years.

Importantly, Revival has maintained significant exploration upside across its portfolio. The company bolstered its exploration team in 2024 with the addition of proven mine-finder Dan Pace as Chief Geologist. "Scale matters because scale is what attracts larger institutions and corporates to companies like ours," Agro noted, adding that this expanded technical capability will be going to vault Revival's exploration story and business case into a new paradigm.

Institutional investors have taken notice, with top resource funds accumulating a combined 40% ownership stake in Revival. Agro credits the company's compelling portfolio and disciplined strategy for attracting sophisticated long-term backers who understand the opportunity.

Looking ahead, Agro believes Revival is well-positioned for a rising gold market with a number of bullish fundamental drivers emerging. He sees substantial value in Revival's growing, developable resource base in secure U.S. jurisdictions. "Our asset just goes up in value with time. The value of the gold in the ground only goes up. We're not producing something that will depreciate in value. Time is really on our side."

While acknowledging the challenges of raising capital in the current market, Agro is confident that Revival's unique attributes will continue to attract investors. "If we mind our knitting, do good work with putting these projects together, we will be rewarded. I feel very excited about 2025, not just because of the steps we've taken in 2024 to adapt to market conditions, but really from the foundational steps when we first got Revival Gold started - this phased approach, staying in good geography, focusing on scale."

Overall, Revival Gold appears to be systematically executing a focused strategy to build a sizable U.S. gold company anchored by a 6.2Moz resource base across two historically productive projects. With a veteran CEO, growing institutional backing, and a disciplined phased development approach, Revival is positioning itself to generate significant returns for investors in a rising gold market.

Interview with Adam Kiley, CEO of Frontier Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/frontier-energy-asxfhe-powering-up-western-australia-with-strategic-solar-battery-project-5619

Recording date: 17th December 2024

Frontier Energy (ASX:FHE) is progressing its Waroona renewable energy project in Western Australia, positioned to capitalize on the state's ambitious renewable energy transition. Western Australia aims to increase its renewable energy capacity from the current 37% to 82% by 2030, creating significant opportunities for renewable energy developers.

The company recently updated its definitive feasibility study (DFS), revealing improved project economics. Capital costs have decreased from $304 million to $282 million, benefiting from falling equipment prices amid a global oversupply of solar panels and batteries. This cost reduction, combined with a 10-15% increase in forecast energy prices over the past six months, strengthens the project's return potential.

Despite facing setbacks in its original debt financing strategy due to changes in Western Australia's capacity market dynamics, CEO Adam Kiley maintains a positive outlook. The company is now pursuing a diversified financing approach, including equipment supplier financing, European credit markets, and potential power purchase agreements (PPAs).

Market conditions strongly support the project's development. Peak energy prices in Western Australia have surged 110% over the past two years, while average prices have risen by 70%. The project's strategic location, with existing grid connections and expansion potential, positions it well to benefit from increasing energy demand and the broader electrification of the economy.

"We're demanding more energy every day. In my opinion, it doesn't make a difference if you're coal or gas or renewable, you want energy going onto that grid because it's becoming so valuable," stated Kiley, emphasizing the project's strong market fundamentals.

The investment thesis for Frontier Energy centers on several key factors: exposure to Western Australia's rapidly growing renewable energy market, reduced project costs, strategic location with existing infrastructure, multiple financing options, and significant market tailwinds from rising energy prices and economy-wide electrification.

The company sees potential to attract strategic investment, particularly from larger players interested in the project's expansion capabilities. "What a lot of bigger players are looking for is how big can this project get - and that's really what we believe the attraction will be for a lot of people," Kiley explained.

As the renewable energy sector continues its transformation, Frontier Energy's Waroona project represents a strategic opportunity in Western Australia's evolving energy landscape, backed by strong market fundamentals and improving project economics.

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

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Interview with Paul Barrett, CEO of Rome Resources

Our previous interview: https://www.cruxinvestor.com/posts/rome-resources-aimrmr-high-grade-hits-at-drc-tin-project-6292

Recording date: 18th December 2024

Rome Resources Plc (LSE:RMR), a tin explorer focused on the Democratic Republic of Congo (DRC), has secured £4.2 million in funding through a strategic investment from Stanvic Mining SARL to accelerate its exploration programs.

The company is currently conducting drilling campaigns at two primary tin prospects - Kalayi and Mont Agoma - using four drill rigs. At Kalayi, the drilling program is nearing completion, with visual indications of tin mineralization observed in the drill core, though assay results have only been received for two holes so far. The company is optimistic about establishing a maiden resource estimate at this prospect.

At Mont Agoma, drilling continues to test the depth extent of known tin mineralization, with plans for an additional six to eight holes targeting the core of the prospect. Early indicators show presence of tin, copper, and zinc mineralization.

CEO Paul Barrett commented on the financing: "It's a good endorsement of our business that [Stanvic] is happy to put in over 4 million." He emphasized the cost-effectiveness of the raise, noting that "99% of that money will use putting in the ground."

The funds will support expanded exploration efforts, including high-resolution topographic mapping using LiDAR technology to provide detailed imaging of the bedrock beneath the jungle vegetation. Additional plans include soil geochemistry sampling and regional geological work, potentially including magnetic surveys.

Looking ahead, Rome Resources aims to delineate resources at both prospects. Barrett outlined the strategy: "I think intuitively we would put out the Kalayi resource because we're pretty much finished drilling there right now. Mont Agoma, I think, we really need to put in another 6 to 8, maybe more holes before we can confidently come up with a bigger number."

The investment strengthens Rome's position in the DRC's tin sector, where the company sees significant exploration upside and regional potential. With the global demand for tin growing, driven by its use in electronics, electric vehicles, and renewable energy infrastructure, Rome Resources is positioning itself to capitalize on the increasing market opportunity in this critical technology metal.

View Rome Resources' company profile: https://www.cruxinvestor.com/companies/rome-resources

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Interview with Bradley Langille, President & CEO of GoGold Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/gogold-resources-tsxggd-advancing-district-scale-silver-production-3931

Recording date: 17th December 2024

GoGold Resources, a Canadian silver and gold mining company, is strategically positioned to expand its operations in Mexico under the country's new pro-mining political environment. With President Claudia Sheinbaum's election in 2024 and her anticipated support for mining development, including open pit mines, the company sees significant growth opportunities ahead.

The company operates the Parral tailings project, an environmental remediation initiative that reprocesses historical mine waste. Following the implementation of a new zinc recovery circuit, the project now generates monthly free cash flow of US$1.5 million. The project's innovative agglomeration heap leaching technology has caught the attention of Mexican mining authorities, potentially opening doors for future opportunities.

GoGold's growth strategy centers on developing two mines at its Los Ricos property. The Los Ricos South project, currently completing its Definitive Feasibility Study, is expected to produce 8 million ounces of silver equivalent annually at an all-in sustaining cost of $12 per ounce. With a capital cost estimate of just over $200 million and an after-tax net present value of $350 million, the underground mine is poised for development. The company, holding $72 million in cash and access to debt financing, plans to break ground in Q1 2025.

The second development project, Los Ricos North, shows potential for another 8 million ounces of annual production from an open pit operation, according to its Preliminary Economic Assessment. If both projects are developed as planned, GoGold's total production could reach 16 million ounces annually, elevating it to mid-tier producer status alongside companies like First Majestic Silver and Hecla Mining.

Adding to its growth potential, GoGold is conducting exploration drilling 300 meters below the Los Ricos South deposit, where historical records suggest high-grade silver mineralization. The company is investing $3 million in this program, planning approximately 20,000 meters of drilling.

CEO Bradley Langille emphasizes the company's strong position, noting that Sheinbaum's administration understands the importance of a strong mining sector to support Mexico's environmental and social initiatives. With a solid balance sheet, near-term production growth prospects, and exploration upside, GoGold appears well-positioned to capitalize on Mexico's improving mining environment and contribute to the country's mineral development while maintaining environmental and social responsibilities.

View GoGold Resources' profile page: https://www.cruxinvestor.com/companies/gogold-resources

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Interview with Rudi P. Fronk, Chairman & CEO of Seabridge Gold Inc.

Recording date: 16th December 2024

Seabridge Gold (NYSE:SA, TSX:SEA) is advancing KSM, the world's largest undeveloped gold-copper project, located in British Columbia. After investing over $1 billion and 20 years of development work, the company has secured key permits and indigenous support, positioning KSM for its next phase of growth.

The project's 2022 prefeasibility study demonstrates impressive economics, with a planned 33-year mine life producing over 1 million ounces of gold and 178 million pounds of copper annually. The projected all-in sustaining cost of $600/oz gold (after copper credits) sits well below the industry average of $1,500/oz. With 47.3 million ounces of gold and 7.3 billion pounds of copper in reserves, KSM represents a strategic asset in the global energy transition.

In July 2024, Seabridge achieved a crucial milestone by securing "substantially started" status for KSM, completing a major de-risking step. The company has engaged RBC Capital Markets to secure a joint venture partner, with discussions ongoing with major mining companies capable of developing a project of KSM's scale.

Seabridge's proposed joint venture structure involves a two-phase approach: potential partners would first fund a bankable feasibility study to earn a minority interest, followed by an option to increase to a majority stake by funding construction. This structure aims to protect shareholder value while securing necessary development capital.

Beyond KSM, Seabridge's portfolio includes the Courageous Lake project in Northwest Territories, hosting 11 million ounces of indicated gold resources. A 2024 PFS outlined a 12-year mine producing 200,000 ounces annually at $1,000/oz all-in costs. The company is also advancing the Iskut project in BC's Golden Triangle, which shows potential to become another significant gold-copper deposit.

Under CEO Rudi Fronk's leadership, Seabridge has maintained a disciplined approach to capital allocation, with only 92 million shares outstanding despite extensive development work. Management's alignment with shareholders is demonstrated by significant insider ownership exceeding 20%.

The company is well-positioned to benefit from favorable gold market dynamics, with gold reaching all-time highs in 2024. While central bank demand remains strong, Fronk notes the absence of Western investors in gold equities presents a significant opportunity for re-rating as these investors return to the sector. With gold mining stocks trading at multi-decade lows relative to bullion prices, Seabridge offers investors exposure to a world-class asset portfolio in an improving market environment.

View Seabridge Gold's company profile: https://www.cruxinvestor.com/companies/seabridge-gold-inc

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Interview with Michael Hodgson, CEO of Serabi Gold PLC

Our previous interview: https://www.cruxinvestor.com/posts/serabi-gold-lsesrb-doubling-production-by-2026-6040

Recording date: 16th December 2024

Serabi Gold (LSE:SRB), a Brazil-focused gold producer, is positioned for significant growth in the coming years as it executes on its three-stage strategy to optimize operations and expand production at its high-grade Palito and Coringa mines.

In 2024, Serabi achieved several key milestones, putting it on track to meet its production guidance of 38,000 ounces, a 67% increase from the previous year. The successful commissioning of an ore sorting plant at the Coringa mine in December was a game-changer, enabling the company to upgrade the feed grade to its processing plant from around 5  to 15 grams per tonne. This will allow Serabi to boost gold production without having to expand its milling capacity.

CEO Mike Hodgson outlined the company's three-stage growth plan: Stage one, now complete, was the construction of the ore sorters. Stage two is increasing production from 40,000 to 60,000 ounces per year over the next 18 months as the benefits of ore sorting are realized. Stage three involves an aggressive exploration program aimed at doubling resources from 1 to 2 million ounces to support a further expansion to 100,000 ounces per year.

To fund this growth, Serabi is budgeting $8 million for brownfields exploration in 2025, a significant increase from recent years. The 30,000 meter drill program will focus on growing resources around the Palito and Coringa mines, which currently host 500,000 ounces each. If successful in doubling the resource base, Serabi would look to expand processing capacity either by building a second plant at Coringa or expanding the existing Palito plant.

Serabi is well-funded to carry out its plans, with $20-25 million in cash expected by year-end 2024. This strong balance sheet provides flexibility to advance organic growth initiatives while also considering potential share buybacks, dividends, or accretive M&A.

Investors have several reasons to be bullish on Serabi. The company is delivering strong production growth in the near-term through the successful implementation of ore sorting technology. Looking ahead, the exploration upside is significant, with the potential to double resources and expand production to 100,000 ounces per year. Serabi's high-grade mines, recently renewed mining licenses, and focused management team further derisk the story.

In the context of the current market environment, Serabi's strategy is well-timed. With the gold price at elevated levels, the economics of optimizing high-grade mines are highly attractive. By deploying capital efficiently and using new technologies like ore sorting, Serabi is positioned to grow production and cash flow rapidly, with potential re-rate opportunities as the market recognizes the value of its assets.

Overall, Serabi Gold presents a compelling investment case for those seeking exposure to a growing gold producer with a proven management team, strong financial position, and significant exploration upside. As the company continues to execute on its well-defined growth strategy, shareholders could be well-rewarded in the years ahead.

Learn more: https://cruxinvestor.com/companies/serabi-gold

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