Company Interviews

Interview with Ian Harris, President & CEO of Outcrop Siver&Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/outcrop-silver-gold-tsxvocg-unlocking-high-grade-silver-potential-4692

Recording date: 3rd March 2024

Outcrop Silver & Gold (TSXV:OCG) is advancing one of the highest-grade undeveloped silver projects globally with its flagship Santa Ana asset in Colombia. With 37 million silver equivalent ounces grading over 600 g/t in the current resource, Santa Ana is a true silver play, deriving 75% of its value from the metal.

The company is taking an innovative, multi-pronged approach to creating shareholder value. First, aggressive exploration aims to multiply the resource from the current 37 Moz to over 100 Moz silver euivalent. Secondly, Outcrop is looking to develop a small-scale pilot mine to demonstrate the economic and technical viability of the asset while maintaining its exploration upside in the market.

CEO Ian Harris emphasized that the exceptionally high-grade nature of Santa Ana, along with the excellent metallurgy, de-links the project from scale and doesn't require that economy of scale to be able to have the margin. Simple flotation recovers over 93% of the silver into a high-grade concentrate, which can be directly smelted to produce saleable silver doré bars without the need for cyanide. This gives Outcrop multiple options to maximize payability.

Colombia is shaping up to be an attractive mining jurisdiction with a government eager to encourage development of silver and critical metals projects to diversify from oil and coal. Outcrop's key is strong engagement with local communities, which the pilot mine would foster through training and capacity building.

While the current tough market conditions are challenging for junior miners, Outcrop sees a big picture opportunity in silver as solar, EVs, and electrification are expected to be major demand drivers while ongoing economic uncertainty supports silver's safe haven status.

In summary, Outcrop Silver & Gold offers investors compelling exposure to a high-grade silver asset being advanced by a highly experienced management team. The company is well-positioned to create value through a hybrid approach of resource expansion and de-risking through a pilot mine. With 75% of the resource value in silver, Outcrop is highly leveraged to a rising silver price environment that appears likely in the coming years based on the macro fundamentals.

View Outcrop Silver & Gold's company profile: https://www.cruxinvestor.com/companies/outcrop-silver-gold

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Interview with Dan Pace, Chief Geologist, and Hugh Agro, President & CEO of Revival Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/revival-gold-inc-tsxvrvg-significant-resource-uptick-and-the-road-to-production-by-2028-3901

Recording date: 29th February 2024

Revival Gold is advancing the Beartrack-Arnett gold project located in Idaho, USA. With an existing resource base of 4.6 million ounces of gold, Beartrack-Arnett represents one of the largest undeveloped gold discoveries made in the western United States over the past decade.

Recent exploration drilling by Revival Gold has successfully discovered new high-grade mineralized zones outside of the project's current resource areas. This highlights the strong potential to significantly expand resources through further targeted drilling.

Structural modeling and geophysical analysis have outlined high-potential exploration targets across 5 km of untested strike length south of the known deposit. This presents a substantial opportunity to add new discoveries and grow resources along the mineralized trend.

The project benefits from excellent surrounding infrastructure in a premier mining jurisdiction, including access to water, power, transportation, and a skilled local workforce. A heap leach pad is already permitted.

According to a pre-feasibility study, the project can be developed in phases with low-cost heap leach mining focused on near-surface oxidized ore initially. This provides a clear, low-risk pathway to restart production and cash flow generation.

The Revival Gold team is focused on exploring efficient partnerships, joint ventures, and mergers and acquisitions to strengthen its position and supplement internal growth initiatives.

With its large gold resource, upside exploration potential, and straightforward path to production start-up, the Beartrack-Arnett project offers investors upside exposure to a potentially world-class gold development asset.

View Revival Gold's company profile: https://www.cruxinvestor.com/companies/revival-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-lse-srb-on-track-to-double-gold-production-with-no-share-dilution-4190

Recording date: 3rd March 2024

Serabi Gold (LSE:SRB, TSX:SBI) presents a compelling investment opportunity for those seeking exposure to the gold sector. The company's recent success in renewing its mining license for the Coringa project, combined with its plans to increase production and focus on high-grade ore, positions Serabi Gold for significant growth in the coming years.

The successful renewal of its mining license for the Coringa project provides the company with the confidence to move forward with its plans to expand production from 30,000 ounces to 60,000 ounces over the next 18-24 months. To achieve this production growth, Serabi Gold is employing a capital-light approach, focusing on high-grade ore and ore sorting to maximize the efficiency of its existing facilities. This approach allows the company to increase production while minimizing capital expenditure and dilution for shareholders.

Central to Serabi Gold's strategy is its focus on high-grade ore. By targeting higher-grade material, the company can improve margins and profitability, even with a relatively small production base.  In addition to its focus on the Palito and Coringa projects, Serabi Gold is exploring growth opportunities through its exploration alliance with Vale. This alliance, which focuses on copper and gold prospects, provides Serabi Gold with exposure to potential new discoveries without the need for significant capital investment. The company is also actively exploring satellite deposits around its existing operations intending to identify new resources to support future production growth.

Serabi Gold's operations are well-positioned from an environmental, social, and governance (ESG) perspective. The company's underground mines have a small footprint, and the planned transition to hydroelectric power will significantly reduce diesel consumption and improve the company's carbon footprint. With a strong ESG profile, Serabi Gold is well-aligned with the growing demand for sustainable and responsible mining practices.

The current macro environment, characterized by economic uncertainty, low interest rates, and potential inflationary pressures, has renewed interest in gold as a safe-haven asset and a hedge against inflation. In this context, junior gold miners like Serabi Gold, which focuses on high-grade, low-cost operations, are well-positioned to benefit from the increased demand for gold and the potential for rising prices.
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View Serabi Gold's company profile: https://www.cruxinvestor.com/companies/serabi-gold

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Interview with Mark Chalmers, President & CEO of Energy Fuels Inc.

Our previous interview: https://www.cruxinvestor.com/posts/energy-fuels-amexuuuu-americas-top-uranium-producer-primed-to-capitalize-on-surging-prices-4724

Recording date: 2nd March 2024

Energy Fuels (AMEX:UUUU) is an integrated uranium and rare earths producer uniquely positioned to capitalize on opportunities in both critical mineral sectors.

The company had a breakout year with its uranium business in 2023, generating $100 million in net income after producing over 560,000 pounds of uranium. Energy Fuels is now focused on ramping up output to 1.5-2 million pounds annually at its licensed mines in the U.S. This profitable uranium production provides cash flows to support Energy Fuels’ growth.

The White Mesa Mill in Utah gives Energy Fuels flexibility to process uranium from its own operations and third-party producers. Buying agreements and toll milling contracts allow the company to optimize feed for the mill and lower costs. As uranium prices rise amid growing nuclear power demand, this operating leverage offers profits.

Energy Fuels also has substantial rare earths upside. While uranium prices are high, rare earths prices have fallen dramatically. This creates an opportunity for Energy Fuels to acquire undervalued rare earths projects and assets. The company’s strong balance sheet, with over $250 million in cash, gives it firepower for acquisitions.

Energy Fuels is on track to complete its rare earth separation facility at White Mesa Mill. This will further boost its integrated rare earths capabilities, helping offset pricing risks. When rare earth prices eventually rebound, Energy Fuels will be primed to benefit.

With diversified critical mineral production and assets, technical expertise, and financial strength, Energy Fuels is in an enviable position relative to mining peers. As decarbonization accelerates demand for uranium and rare earths, Energy Fuels offers unique exposure supported by real assets and cash flows.
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Energy Fuels' company profile: https://www.cruxinvestor.com/companies/energy-fuels

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Interview with Thomas Lamb, CEO of Myriad Uranium

Our previous interview: https://www.cruxinvestor.com/posts/myriad-uraniums-forgotten-uranium-deposits-offer-substantial-potential

Recording date: 4th March 2024

Myriad Uranium offers investors a compelling opportunity to gain exposure to the strengthening uranium market through its prospective projects in Niger and the United States.

The company's flagship asset is the Copper Mountain project in Wyoming, acquired in 2022. Extensive historical work by Union Pacific in the 1970s identified six uranium deposits with an estimated 15-30 million pounds of resources, as well as an exploration target of over 63 million pounds across two of the deposits. Importantly, recent analysis by Myriad has identified high-grade zones that were largely overlooked in the historical estimates, with grades up to 0.3% U3O8. These high-grade areas could drive a significant increase in the project's value.

Myriad CEO Thomas Lamb commented, "There's high grade there - instead of 200 to 600 parts per million (ppm), there's thousand ppm up to 3,000 ppm if you focus on the veins." The company is working to bring the historical estimates up to current standards, with a focus on delineating the high-grade mineralization.

In addition to the known resources, Copper Mountain offers substantial exploration upside. Myriad plans to aggressively drill the project to expand the resource base. The extensive historical database will allow for rapid and cost-effective advancement of the project towards development.

While Copper Mountain is the near-term focus, Myriad also holds a significant land position in Niger, Africa's top uranium-producing nation. The company's 1,800 square kilometer portfolio is located in the heart of the Tim Mersoi Basin, home to some of the world's largest and highest-grade uranium deposits. These projects provide long-term optionality on a world-class uranium district as Niger's political situation stabilizes following a coup in 2023.

The outlook for the uranium industry is robust, driven by growing demand for carbon-free baseload power and supply constraints caused by years of underinvestment. Utilities are increasingly looking to secure long-term supply contracts, but are finding a lack of shovel-ready projects to fill their needs. This is creating a widening structural deficit in the uranium market, which should put continued upward pressure on prices.

Myriad is well-positioned to capitalize on the uranium bull market. With a market cap of just C$12 million, the company is significantly undervalued based on the potential of its assets. The combination of near-term production potential at Copper Mountain and long-term optionality in Niger makes Myriad a unique investment opportunity in the uranium space. As the company advances its projects and the uranium price continues to rise, Myriad has the potential to deliver substantial returns for shareholders.

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Learn more: https://cruxinvestor.com/companies/myriad-uranium

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Interview with David Baker, CFO of Elemental Altus Royalties Corp.

Our previous interview: https://www.cruxinvestor.com/posts/elemental-altus-royalties-tsxvele-high-quality-revenue-generating-4929

Recording date: 3rd March 2024

Elemental Altus Royalties (TSXV:ELE) offers investors a compelling opportunity to gain exposure to precious metals and copper through a diversified portfolio of cash-flowing royalties. The company recently reported record revenue of $17.8 million for 2023, marking its sixth consecutive year of record results.

The strong performance is underpinned by high-quality royalties on long-life assets like the Karlawinda gold mine in Australia and the Caserones copper mine in Chile. These royalties not only deliver cash flow but also offer significant exploration and expansion upside.

With over $30 million of available liquidity, Elemental Altus is well-positioned to continue acquiring new royalties and streams at attractive valuations. CFO David Baker highlighted the company's flexible approach, spanning from early-stage exploration assets to producing mines. By prioritizing asset quality and management strength, Elemental Altus has demonstrated an ability to source accretive deals at discounts to net asset value.

Elemental Altus presents a unique investment opportunity in the junior royalty space with a proven business model, a portfolio of high-quality cash-flowing assets, and significant dry powder for new deals. As capital remains constrained for operators and developers, the company is well-positioned to continue sourcing accretive growth opportunities and driving per-share value. With a proven track record, a robust growth pipeline, and a committed management team, the company is well-positioned to deliver attractive returns in 2024 and beyond.

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View Elemental Altus Royalties' company profile: https://www.cruxinvestor.com/companies/elemental-altus-royalties

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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-reigniting-a-gold-mine-giant-4749

Recording date: 2nd March 2024

Omai Gold Mines offers investors exposure to restarting production at a historic gold mine in the mining-friendly jurisdiction of Guyana. The company's flagship Omai project was a large-scale producer from 1993-2005, churning out over 3.7 million ounces of gold from open pit and underground mines.

Shuttered since 2005, extensive infrastructure remains in place, including a camp, access roads, and power. Omai has completed feasibility-level engineering and mining studies on the asset, providing a strong technical foundation.

The project hosts robust resources, with a recently updated estimate outlining 1.9 million ounces indicated grading 1.48 g/t gold and 0.5 million ounces inferred grading 1.99 g/t gold. Additional exploration upside exists, as mineralization remains open along a 2.5 km shear zone.

Omai is led by an experienced mining team focused on restarting production, beginning with open pit mining to generate early cash flows. A PEA study is upcoming. The Guyanese government is supportive of redevelopment efforts given the previous economic benefits of the mine.

With its permitted, past-producing project, existing infrastructure, and exploration upside, Omai offers investors exposure to reactivating a high-grade gold mine with compelling economics. As feasibility studies advance, Omai's systematic de-risking of the project could yield substantial shareholder value.
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View Omai Gold Mines' company overview: https://www.cruxinvestor.com/companies/omai-gold-mines

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Interview with George Ogilvie, President & CEO of Arizona Sonoran Copper Company Inc.

Our previous interview: https://www.cruxinvestor.com/posts/arizona-sonoran-tsxascu-more-copper-in-new-resource-update-pfs-coming-soon-4250

Arizona Sonoran is rapidly advancing the Cactus Mine project in Arizona to capitalize on forecast copper supply deficits within the next few years.

ASCU President George Ogilvie outlined plans to reach commercial production at the historic brownfield site in 3-4 years. A recently completed Pre-Feasibility Study models a 21-year mine life producing 55,000 tonnes of copper cathode annually. This doubles the outdated 2019 Preliminary Economic Assessment's 28,000 tonne per year plan, reflecting resource expansion.

The PFS generates robust economics at a $3.80/lb copper price, including a $665M NPV and 15.3% IRR with a 2.4 year payback. The $515M initial capex ranks at the low end globally, enhancing the project's advantage versus competing copper projects requiring intensive capital.

Beyond the base case, Arizona Sonoran is testing a proprietary leaching technology (called "Newton") to boost the recovery of copper sulfides. This could significantly increase production at a fractional capital cost uplift. Initial tests suggest Newton could achieve 70-85% recovery from sulfide minerals versus nil in the base case.

ASCU also has a partnership with Rio Tinto funding Newton's optimization. This provides $33M upfront to ASCU plus the option for Rio to earn a 40% project interest on favorable, non-dilutive terms. The structure drastically reduces ASCU's equity needs and facilitates debt financing.

With analysts widely forecasting large copper deficits emerging within 2-3 years as electrification drives demand higher, ASCU is positioned to capitalize on the pending supply-demand imbalance. As copper prices rise, the project's strong fundamentals and leverage to higher prices make it an attractive copper investment.

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View Arizona Sonoran's company profile: https://www.cruxinvestor.com/companies/arizona-sonoran

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Interview with Shane Williams, President & CEO of West Red Lake Gold Mines

Recording date: 29th February 2024

West Red Lake Gold Mines acquired Pure Gold Red Lake mine out of creditor protection for $65 million, a substantial discount to over $350 million spent by the prior owner. This distressed valuation reflects past challenges but provides opportunity for WRLG's experienced leadership to revitalize the asset.

Located in Ontario's Red Lake district, the project benefits from extensive existing infrastructure, including an operational mill and underground mine. However, the previous owner faced high debt levels and pressure for rapid production. Insufficient investment in drilling and orebody knowledge resulted in difficulties.

The plan is to first spend 12-15 months on extensive underground drilling and development. Around 50,000 meters of tight-spaced drilling will improve geological knowledge and mine planning. This will allow optimization of stope dimensions, mining methods, and scheduling tailored to the orebody's characteristics. Updated feasibility studies incorporating the new drilling will guide economically viable mine plans.

Sprott's investment and involvement in converting debt to equity provides confidence. The project's infrastructure, existing development and location in a gold-rich district support upside potential. For risk-tolerant investors, WRLG represents a promising turnaround story in a historic gold jurisdiction. The systematic approach could unlock substantial value from an asset acquired at a fraction of its replacement cost.

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

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Interview with Marc Henderson, President & CEO of Laramide Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/laramide-resources-tsxlam-moving-assets-through-growth-phases-3813

Recording date: 27th February 2024

Uranium Developer Positioned to Supply Fuel for Nuclear Growth

With global electricity demand projected to rise 50% by 2050, nations face immense challenges reconciling surging consumption with climate change commitments under the Paris Agreement. This urgency has thrust nuclear power back into mainstream policy debates given reactors emit no greenhouse gases during operation. Against this backdrop, uranium mining firms with the potential to deliver new production offer investors direct leverage to benefit from nuclear’s resurgence.

Toronto-based Laramide Resources represents one prospect to capitalize on the compelling fundamentals taking shape. While not a household name, the company holds a portfolio of advanced uranium assets in the United States and Australia that could be contributing up to 10 million pounds per year of low-cost output by the end of this decade. Two core projects form the crux of this strategy - the permitted Church Rock ISR deposit in New Mexico capable of initial production in 12-18 months, and the potentially massive Westmoreland project in Queensland pending policy changes.

In the U.S., Laramide is set to provide domestic utilities much needed supply diversity through its flagship New Mexico asset containing 31 million pounds amenable to in-situ recovery methods. With permits essentially in place, Church Rock offers investors near-term exposure to higher uranium prices once $50 million of capital expenditure brings the mine online at a million pounds per year. Importantly, the modular design facilitates scalability to 3 million annual pounds utilizing existing infrastructure. Beyond Church Rock, the company owns a handful of other early-stage ISR projects that ultimately could contribute 5 million combined U.S. pounds annually.

However, Australia is where Laramide offers asymmetric upside potential through its Westmoreland deposit, one of the largest and highest grade undeveloped uranium resources held by a junior miner globally. With an initial 16 year mine life extracting 51 million pounds through conventional open pit methods, the capital outlay to deliver first production is comparatively modest circa $300 million. Pending a widely expected change in government leadership, Westmoreland appears poised to realize its world class potential. Exploration drilling underway aims to both expand the resource and delineate additional satellite zones that ultimately could support an operation generating over 5 million pounds per year.

Attractively, Laramide has constructed a multi-prong growth pipeline requiring less than $700 million peak financing to power both the U.S. and Australian assets toward a 10 million pound overall company production target. With nuclear energy finally gaining momentum after a lost decade post-Fukushima, uranium fundamentals exhibits increasing tightness as demand steadily outpaces languishing supply, heightening the sector’s appeal. As market conditions continue strengthening, Laramide offers investors quality leverage with sound projects located in favorable and stable jurisdictions.

The strategic roadmap appears clearly defined - bring Church Rock online to establish a track record, fund expansions from internal cash flow, and ultimately seek to develop Westmoreland into a cornerstone asset befitting its world class credentials. Execution comes with standard mining risks, but the measured approach provides exposures across the capital structure for investors betting on the global nuclear build-out accelerating.

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View Laramide Resources' company profile: https://www.cruxinvestor.com/companies/laramide-resources

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