Company Interviews

Interview with Marcel Robillard, President & CEO of Puma Exploration Inc.

Our previous interview: https://www.cruxinvestor.com/posts/puma-exploration-tsxvpuma-high-grade-gold-intercepts-confirm-scale-potential-4400

Recording date: 25th March 2024

Puma Exploration (TSXV:PUMA) is an emerging gold exploration company with a flagship asset that has the potential to become a major new gold district in Canada. The company's Williams Brook gold project, located in the highly prospective Bathurst Mining Camp of New Brunswick, boasts widespread high-grade gold mineralization at surface across a massive 40,000-hectare land package. With a proven exploration approach, strong financial position, and experienced leadership team, Puma is well-positioned to unlock the value of this exciting discovery for its shareholders.

At the heart of the Williams Brook story is the presence of multiple zones of quartz vein-hosted gold mineralization along a 4-kilometer corridor. The most advanced of these is the Lynx Zone, where initial drilling has defined high-grade gold over 750 meters of strike and to a depth of 200 meters. Highlight intercepts include 5.5 g/t gold over 50.2 meters, demonstrating the robust width and grade continuity of the system. Importantly, mineralization at Lynx remains open along strike and at depth, pointing to strong potential for resource growth.

Looking beyond Lynx, Puma has identified similar styles of gold mineralization at the nearby Jaguar and Cheetah Zones. These discoveries, situated along a 4-kilometer trend, speak to the district-scale nature of the opportunity at Williams Brook. Puma's objective in 2024 is proving up scale and size of the already known mineralization at its Williams Brook property.

To achieve this goal, Puma is embarking on an aggressive exploration campaign in 2024. The company recently commenced a 2,000-meter drill program targeting the Jaguar Zone, with the aim of demonstrating similar high-grade gold continuity as seen at Lynx. This drilling will be supplemented by extensive surface trenching, stripping, and detailed structural mapping to develop new targets across the 4-kilometer corridor. Puma also plans to conduct additional metallurgical studies to optimize the gold recovery process, which has already shown promising results using simple gravity-based methods.

Importantly, Puma is fully funded to execute on its 2024 exploration plans. With approximately C$1.5 million in working capital, the company is well-capitalized to complete the current 2,000-meter drill program and extensive surface exploration through the end of the year. This strong financial position allows Puma to advance Williams Brook aggressively without needing to raise additional capital or dilute shareholders in the near term.

Despite the scale and quality of the Williams Brook asset, Puma currently trades at a modest market capitalization of just C$15 million. This valuation disconnect represents a compelling opportunity for investors to gain exposure to a high-grade gold discovery in a top-tier mining jurisdiction. As the company delivers exploration success and the gold price environment improves, Puma is poised for a significant re-rating by the market.

In conclusion, Puma Exploration offers investors a unique opportunity to participate in the early stages of a potentially world-class gold discovery. With a massive land position, high-grade mineralization, a systematic exploration approach, and a proven leadership team, the company has all the key ingredients in place to unlock the value of the Williams Brook project. As Puma advances this exciting story in the coming months, shareholders stand to benefit from the significant upside potential on offer.

View Puma Exploration's company profile: https://www.cruxinvestor.com/companies/puma-exploration-inc

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Interview with David Reeves, MD of Calidus Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/calidus-resources-cai-23m-growth-capital-to-deliver-130000oz-3120-95632

Recording date: 25th March 2024

Calidus Resources, an emerging gold producer operating in the Pilbara region of Western Australia, has recently taken significant steps to strengthen its financial position and pave the way for substantial near-term production growth. Calidus has completed a $16.5 million capital raise to further bolster its balance sheet, as the company has restructured its financing arrangement with Macquarie Bank, freeing up approximately $31 million in cash flow this year. 

The financing restructure involved rolling 21,000 ounces of hedged gold production into the future and deferring $10 million in debt amortization payments. These measures are expected to provide Calidus with the financial flexibility needed to deliver on its growth objectives. Managing Director David Reeves emphasized the importance of this restructuring, stating that the company's hedge deliveries were the single biggest impediment to its cash flow generation.

Alongside the financial restructuring, Calidus has made notable operational improvements at its flagship Warrawoona Gold Project. With the completion of major cutbacks, the company is now accessing higher-grade ore from the main Klondyke orebody, leading to record gold recoveries in recent weeks. The combination of increased production, lower mining costs, and higher feed grades is expected to drive significant quarter-on-quarter cash flow growth.

Looking ahead, Calidus has a pipeline of high-grade growth projects that underpin its medium-term production target of 120,000 ounces per year within the next three years. The recently acquired Nullagine project, which hosts a historic resource of 1.4 million ounces, presents a near-term opportunity to boost production. The company is evaluating options to either truck ore from Nullagine to its Warrawoona plant or restart the existing 1.8 Mtpa processing facility at Nullagine.

Other key growth projects include the high-grade Blue Spec satellite pit, the over 4 g/t Bulletin underground deposit, and Marble Bar discoveries. With its financial constraints addressed and a clear path to production growth, Calidus appears well-positioned to capitalize on the strong outlook for the Australian gold sector.

The investment thesis for Calidus Resources centers on its enhanced financial flexibility, record operational performance, and robust pipeline of organic growth projects. As the company continues to deliver on its production and cash flow growth targets, it offers investors exposure to an emerging mid-tier Australian gold producer with a significantly de-risked investment proposition.

View Calidus Resources' company profile: https://www.cruxinvestor.com/companies/calidus-resources-limited

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Interview with Rick Howes, President & CEO of Reunion Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/reunion-gold-tsxvrgd-fast-track-from-discovery-to-gold-production-4812

Recording date: 25th March 2024

Reunion Gold, an exploration and development company operating in the Guyana Shield, South America, presents a compelling investment opportunity with its flagship OKO West Project in Guyana. The company has released an updated resource estimate, showcasing a significant increase in total ounces and higher-grade underground resources, further enhancing the project's potential.

The OKO West Project's combined indicated and inferred resources now stand at 5.9 million ounces of gold, a 38% increase from the previous estimate in June 2023. This impressive growth in ounces highlights the deposit's continuity and the company's ability to add ounces through cost-effective drilling. With an average discovery cost of $8 to $10 per ounce, Reunion Gold is well-positioned to create substantial value for shareholders as it advances the project towards production.

One of the key advantages of the OKO West Project is the speed at which it is progressing from discovery to potential production. Reunion Gold is well-funded, with a strong cash position, enabling it to advance studies, permitting, and exploration in parallel. The company expects to reach production in just six years from discovery, significantly faster than the industry average of 16 years. This rapid advancement reduces the time value of money for investors and increases the potential return on investment.

Investors can look forward to several key milestones in the coming months, which are expected to further enhance the value of the OKO West Project. The company is on track to release a Preliminary Economic Assessment (PEA) in May 2024, providing a more detailed understanding of the project's economics and potential. Additionally, Reunion Gold will continue its exploration activities, with eight drills currently active on the site, focusing on expanding the existing resource, converting inferred ounces in the underground resource to the indicated category, and exploring new targets identified through geochemical and geophysical work on the property. 

In conclusion, Reunion Gold's OKO West Project in Guyana presents a compelling case for investors seeking exposure to the gold mining industry. With a growing resource base, rapid project advancement, and the potential for consolidation, the company is well-positioned to create substantial value for shareholders as it progresses towards production in a favorable gold market.

View Reunion Gold's company profile: https://www.cruxinvestor.com/companies/reunion-gold

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Interview with Alex Black, Executive Chairman of Rio2 Ltd. and Hugh Agro, President & CEO of Revival Gold

Recording date: 21st March 2024

As the global economy navigates uncharted waters, gold is once again demonstrating its enduring value and appeal. In a wide-ranging discussion, two top mining CEOs – Alex Black of Rio2 Limited and Hugh Agro of Revival Gold – laid out a compelling case for why investors should be taking a shine to the yellow metal.

Gold prices have been on a tear, notching impressive gains. "In 20 years the gold price has quite tripled. In the last five years it's up some 65%, 10-15% in the last year. So look, the price of gold is performing, no question about it," noted Agro. Black pointed out that gold is trading well above the conservative price assumptions used by many banks, indicating further upside potential.

But this is no flash in the pan. The CEOs see a structural bull market for gold, driven by a combination of rising demand and constrained supply. "We're seeing step changes," explained Agro. "We were at $1,250 there for five years. We went up to $1,850 for about three years and now we breached $2,100 and who knows what the next level is. Gold's doing what it's supposed to be doing."

The supply side of the equation is equally compelling. "15 years of relatively speaking underinvestment, or at least 12 years of underinvestment in the space, and that'll boomerang back," said Agro. As gold prices rise, major producers are expected to scramble to replenish depleted reserves and project pipelines. "They will look to fill those pipelines, those cupboards that have run bare, and they'll scramble around to find projects that are either construction-ready or near to construction-ready," he added.

This is music to the ears of CEOs like Black and Agro, who are advancing high-quality development projects. Black shared that Rio2 has already been approached by potential suitors. "Since we got our approval in December we've had a few corporate approaches - not that we're for sale or anything, but people are starting to wake up to exactly what's going on in the sector."

For investors ready to heed the call, the CEOs offered some sage advice. "Be diversified, choose a portfolio of companies," counseled Agro, adding, "It's okay to have a couple of juniors, it's okay to have a couple of seniors, some royalty companies. Be diversified across the space."

Black emphasized the importance of proven management teams. "It comes down to execution and delivery," he said, pointing to Rio2's success in building Rio Alto Mining into a $1.2B company. "We executed, we delivered, we did as we said we would do, and the rest is history."

Both CEOs are bullish on their respective jurisdictions, with Agro singing the praises of Idaho, USA's mining heritage and Black expressing confidence in Chile's support for mining.

With all the stars aligning, the CEOs painted a picture of a golden opportunity for investors. Agro likened it to past bull markets in uranium and oil & gas, where early investors were richly rewarded. "Everybody's going to look for seats on the bus; there aren't going to be any. And those of us who've been in the industry, soldiered through, preserved our capital structures, we'll have a lot of winnings at the end of our journey," he colorfully remarked.

For investors looking to add some luster to their portfolios, the message is clear: the gold bull market is just getting started, and quality mining equities offer a high-potential way to play. With seasoned management teams, robust projects in mining-friendly jurisdictions, and the wind at their backs from rising gold prices, select companies are poised to deliver the Midas touch. Fortune favors the bold, and in the gold space, that just might mean those who heed the wisdom of these mining industry veterans.
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Learn more: https://cruxinvestor.com/categories/commodities/gold

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Interview with Greg Channon, Chief Geoscientist of Elixir Energy Ltd. 

Our previous interview: https://www.cruxinvestor.com/posts/elixir-energy-asxexr-drilling-for-big-gas-in-australia-3282 

Recording date: 19th March 2024 

Elixir Energy (ASX:EXR) is poised for major success with its gas play in the Bowen Basin, Queensland, Australia. The company's recent drilling of the Daydream 2 well has revealed exciting results that could significantly increase the project's resource potential and commercial viability. Key highlights from the Daydream 2 well include:

• A gross interval of 600 meters, with 245 meters of net pay identified.
• An unexpected permeable sandstone zone between 4,200 and 4,220 meters, which flowed gas without stimulation.
• The presence of clay coatings on the sandstone grains, preserving porosity and permeability at depth, similar to producing fields in the Perth Basin.
• Low CO2 content (around 1%) in the gas, reducing the need for costly treatment.

Elixir Energy is now embarking on a comprehensive testing program over the next two months to further evaluate the well's potential. The program will target six zones, including the permeable sandstone, tight sandstones, and coals. The tests will provide crucial data on flow rates, reservoir characteristics, and the effectiveness of stimulation techniques. 

Success in the testing program could be a key de-risking event for the project, demonstrating its commercial viability and potentially leading to a re-rating of the company's shares. Investors should watch for sustained gas flows from the tested zones, which would indicate the project's long-term potential. 

In addition to the contingent resource estimated in 2022, the Daydream 2 well has also revealed significant absorbed gas content in the coal seams. This could further enhance the project's resource base, with a prospective resource estimate of 3.6 trillion cubic feet of gas across the greater area. 

With the testing program set to commence and the potential for positive news flow in the coming months, Elixir Energy presents an attractive opportunity for investors looking to gain exposure to a high-impact gas play in a promising region. 

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

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Interview with Marshall Abbott, Director & CEO of Arrow Exploration Corp.

Our previous interview: https://www.cruxinvestor.com/posts/arrow-exploration-tsxvaxl-45m-drilling-campaign-to-double-oil-output-4826

Recording date: 18th March 2024

Arrow Exploration presents a compelling investment opportunity as a high-growth junior oil producer focused on the prolific Llanos Basin of Colombia. With a proven management team, attractive asset base, and fully-funded growth plans, Arrow is poised to deliver strong production growth and shareholder returns in 2024 and beyond.

The company's investment thesis is underpinned by its recent exploration success in the Carrizales Norte field Tapir Block where Arrow's 2P reserves has significantly increased from 8 million barrels to approximately 12 million barrels. This provides a solid foundation for future development and production growth.

Arrow is currently producing approximately 3,300 barrels of oil per day (bopd) and is targeting significant growth in 2024. With a board-approved capital budget of US$45 million, the company plans to drill a combination of vertical and horizontal wells, which are expected to drive production to 4,000-6,000 bopd by year-end. This represents potential growth of 20-80% compared to 2023 levels.

Importantly, Arrow's growth plans are fully funded by operating cash flow at current commodity prices with $13-15 million of cash on the balance sheet. This financial strength is supported by a favorable fiscal regime in Colombia, where Arrow pays just a 12% royalty and no taxes while it continues to reinvest capital.

Despite its compelling growth outlook, Arrow's shares currently trade at less than 2x cash flow based on its 2024 projections - a significant discount to junior oil and gas producer peers. As the company delivers on its operational targets and increases market awareness, there is potential for significant valuation upside.

View Arrow Exploration's company profile: https://www.cruxinvestor.com/companies/arrow-exploration

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Interview with Segun Lawson, CEO of Thor Explorations Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/thor-explorations-lsethx-gold-producers-free-option-on-lithium-portfolio-3904

Recording date: 18th March 2024

Thor Explorations, a West Africa-focused gold producer, is poised for a pivotal year in 2024 as it looks to capitalize on strong production, significant cash flow generation, and exploration upside. 

The company is guiding for gold production of 95,000 to 100,000 ounces this year. This production profile is expected to drive robust free cash flow generation, which will be used to strengthening the balance sheet. Thor expects to fully repay its $22 million in debt by the end of 2024, with large debt repayment already at the end of March of $8 million, leaving the company with a clean balance sheet and strong cash flows to fund growth initiatives.

A key focus for Thor is extending the mine life at Segilola through exploration drilling. The deposit remains open at depth, providing potential to expand resources and reserves to support a larger open pit operation or a future underground mine. Thor is mobilizing two drill rigs in Q2 to test these deeper targets, with another rig allocated to explore near-mine satellite deposits. The geology of the area is highly prospective and provides meaningful upside to the company's production and cash flow profile.

At Thor's Douta Gold Project in Senegal, the company is awaiting the results of a preliminary feasibility study (PFS) that has been delayed due to additional metallurgical testing. However, oxide material has shown strong recoveries and will be the focus of a drill program in Q2 aimed at enhancing the project economics. Once the PFS is delivered, Thor plans to rapidly advance the project to a definitive feasibility study to support a construction decision.

The company is also resuming its lithium exploration efforts in Nigeria, with drilling set to commence in Q2 following a comprehensive target generation program. The drill program is expected to generate steady news flow and has the potential to define a significant lithium resource.

With a market capitalization of approximately $95 million, Thor trades at its expected free cash flow at current gold prices. This represents a compelling valuation for a growing gold producer with a strong balance sheet and meaningful exploration upside. As the company delivers on its operational and exploration objectives, there is potential for significant re-rating of the stock to better reflect its fundamental value.

In conclusion, Thor Explorations offers investors an attractive opportunity to gain exposure to a growing West African gold producer at a deeply discounted valuation. With a robust production profile, significant near-term cash flow, and multiple avenues for growth, the company is well-positioned to create value for shareholders in 2024 and beyond.

View Thor Explorations' company profile: https://www.cruxinvestor.com/companies/thor-explorations-ltd

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Interview with Dan Wilton, CEO of First Mining Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/first-mining-gold-tsxff-investment-case-for-top-10-gold-developer-4797

Recording date: 15th March 2024

First Mining Gold (TSX:FF) offers investors a compelling opportunity to gain exposure to two of the largest undeveloped gold projects in Canada. The company's flagship Springpole project in Ontario hosts 4.6 million ounces of gold reserves and is approaching the final stages of a lengthy permitting process. Meanwhile, the Duparquet project in Quebec provides additional optionality and exploration upside with a 5.3 million ounce resource.

First Mining believes the company's projects are scarce, strategic assets that will be increasingly sought after by major gold producers looking to replenish depleted reserves. With several key de-risking milestones on the horizon, Wilton sees potential for a significant re-rating of the company's shares as the underlying asset value is recognized.

At Springpole, First Mining is nearing the end of a comprehensive environmental assessment (EA) process that has been underway since 2018. The company plans to submit its final EA report this summer, incorporating feedback from regulators and local indigenous communities. Approval of the EA, which First Mining anticipates by the end of 2025, would mark a major de-risking event for the project.

Concurrent with the EA process, First Mining is working to advance a definitive feasibility study on Springpole. The company has already completed over 200,000 meters of drilling on the deposit and believes it is well-positioned to deliver a robust study that will highlight the project's economic potential.

At Duparquet, First Mining sees potential for resource growth and a streamlined development path. The project benefits from its location in the Abitibi greenstone belt, a prolific mining district with established infrastructure and several operating mills. First Mining is currently drilling to expand the resource and is evaluating the potential for a smaller-scale, lower capex operation that could leverage existing processing capacity in the region.

Underpinning the investment thesis is a view that advanced-stage gold projects in attractive mining jurisdictions are becoming increasingly scarce. Wilton points to the unprecedented build-out of projects in Canada in recent years and the lack of new discoveries to replace them. As major producers face declining reserves and grades, he believes they will increasingly look to acquire or partner on high-quality development assets like Springpole and Duparquet.

For investors, First Mining offers a leveraged bet on two strategically located, multi-million ounce gold projects in a tier-one jurisdiction. With a market capitalization of just over $200 million, the company appears to be trading at a significant discount to the underlying value of its assets. As First Mining delivers on key de-risking catalysts in the coming months and years, there is potential for a re-rating of its shares and eventual M&A interest from larger gold producers.

View First Mining Gold's company profile: https://www.cruxinvestor.com/companies/first-mining-gold

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Interview with Wojtek Wodzicki, President & CEO of NGEx Minerals (TSX-V: NGEX)

Our previous interview: https://www.cruxinvestor.com/posts/ngex-minerals-ngex-helados-is-now-low-risk-potro-cliffs-filo2-2675

Recording date: 15th March 2024

Copper is poised to be a key player in the global shift towards clean energy, and NGEx Minerals (TSX: NGEX) is well-positioned to capitalize on this opportunity. With two high-quality copper projects in the prolific Vicuña district of Chile and Argentina, a strong management team, and a healthy balance sheet, NGEx Minerals offers investors a compelling opportunity to gain exposure to the growing demand for copper.

As countries around the world set ambitious targets to reduce greenhouse gas emissions and combat climate change, the demand for copper is expected to soar. Renewable energy technologies such as wind and solar require significantly more copper compared to traditional energy systems. The rapid adoption of electric vehicles (EVs) is also driving copper demand, as EVs use up to four times more copper than conventional internal combustion engine vehicles.

Wojtek Wodzicki, CEO of NGEx Minerals, highlights the potential supply gap: "Copper is definitely going to be one of the assets that we need over the next couple of years. Argentina's got some great projects that will be unlocked with some of the changes that he's proposing. We're very optimistic about Argentina."

NGEx Minerals' portfolio includes two main projects: Lunahuasi and Los Helados. Lunahuasi is a new high-grade copper discovery still in the early stages, with potential for significant value creation as the resource is defined. Los Helados is a more advanced copper-gold-silver deposit with a large resource, providing additional value to the company.

The company's management team has a track record of successful exploration and value creation through spin-outs in the Vicuña district. This experience and expertise position NGEx Minerals to maximize shareholder value as they advance their projects.

As of December 31, 2023, NGEx Minerals had approximately $70 million in cash, providing ample resources for exploration and development. This strong financial position allows the company to aggressively pursue its exploration plans and create value for shareholders.

Wodzicki emphasizes the value creation potential in copper exploration: "The inflection point in that curve is really right after you make your initial discovery and... a lot of the value, not just for exploration companies, but really if you look at the overall mining industry, that is where a lot of the value is created, is between that initial discovery hole and when you define the resource and start working on your engineering study."

NGEx Minerals offers investors a compelling opportunity to gain exposure to the growing demand for copper driven by the green energy transition. With high-quality assets, an experienced management team, and a strong balance sheet, the company is well-positioned to create value for shareholders as they advance their projects.

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Learn more: https://cruxinvestor.com/companies/ngex-minerals

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Interview with Gabriel Marcelo Rubacha. Director & CEO of NOA Lithium Brines Inc.

Our previous interview: https://www.cruxinvestor.com/posts/noa-lithium-tsxvnoa-focused-on-fast-tracking-3-argentina-projects-4484

Recording date: 6th March 2024

NOA Lithium Brines is a compelling speculative investment opportunity for investors seeking exposure to the rapidly growing lithium market. The company's flagship Rio Grande project is located in the renowned Lithium Triangle of Argentina, Chile, and Bolivia, which holds over half of the world's lithium resources.

Argentina is quickly emerging as a top jurisdiction for lithium development, with a favorable policy environment and strong government support. NOA Lithium Brines is well-positioned to capitalize on this opportunity, with its lithium brine project in the Salta province, a key lithium hot spot.

The company has made rapid progress since its IPO just a year ago, delivering a maiden resource of 2.3 million tonnes of lithium carbonate equivalent (LCE). Notably, this resource estimate covers only 12% of the company's properties, highlighting the immense exploration upside. NOA plans to aggressively expand the resource in 2024 through a major drilling campaign, targeting a doubling of the current resource base.

As NOA advances the Rio Grande project, it has the flexibility to pursue either traditional evaporation ponds or direct lithium extraction (DLE) technology, given the attractive lithium concentrations in its brines. The company is also proactively securing a sustainable water supply by identifying sources within its own properties.

Looking ahead, NOA is targeting several key milestones in 2024 that could drive a re-rating of the stock. These include significant resource growth from drilling, progress on lithium process engineering, and confirmation of water sources. Drill results will be a key news flow item to watch in the coming months.

The investment thesis for NOA Lithium Brines rests on its exposure to the high-growth lithium market, prospective Argentinian brine assets, substantial exploration upside, flexibility in processing options, and potential for near-term catalysts. While the lithium market's volatility and the company's early-stage nature present risks, the current valuation offers an attractive entry point with significant upside potential.

In conclusion, for investors looking for a speculative play on the lithium market's growth, NOA Lithium Brines presents a timely opportunity. The company's prospective asset base, resource expansion potential, and upcoming catalysts make it a lithium developer to watch. While not without risks, the stock's current valuation arguably reflects limited credit for the company's progress to date and future growth potential.

View NOA Lithium's company profile: https://www.cruxinvestor.com/companies/noa-lithium

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