Company Interviews

Interview with Chris Frostdad, President & CEO of Purepoint Uranium

Our previous interview: https://www.cruxinvestor.com/posts/purepoint-uranium-tsxvptu-costs-reduced-portfolio-optionality-maintained-3525

Recording date: 26th January 2024

With uranium prices rising off decade lows, Canada's Athabasca Basin is attracting renewed attention from investors eager to profit from the next exploration success story. Purepoint Uranium ticks all the boxes for a premier uranium junior. Strategically positioned next to recent high-profile discoveries like Fission Uranium’s Triple R and NexGen’s Arrow deposits, Purepoint’s flagship Hook Lake project lies on-trend with these world-class assets boasting grades over 5% U308.

Supported by funding agreements with two industry heavyweights in Orano and Cameco, Hook Lake exploration is systematically testing similar geology to these neighboring multi-million pound uranium occurrences. Purepoint only carries 21% of expenditures here while benefiting from any exploration upside. Recent results reveal “we’re starting to step into something bigger” says company President Chris Frostad. He sees intensive activity coming in the region longer-term as deposits eventually consolidate into larger production centers.

Purepoint supplement this flagship with wholly-owned uranium projects offering blue sky potential for new discoveries as the uranium investment case strengthens. Frostad believes "this is the time to take advantage of a hot market and actually put your hands on a proper resource.” The company has defined drilling targets ready to test. Having raised $4 million in recent months, Purepoint is fully financed to push forward.

Uranium demand is clearly outstripping supply as new nuclear reactors come online. Fifty units are now under construction including next-gen SMR designs. With most analysts forecasting widening shortfalls, higher uranium prices over the next few years seem assured. This bodes well for juniors like Purepoint holding drill-ready projects in tier-one jurisdictions. As the sole listed pure play explorer in the Athabasca region, the stock offers unrivaled exposure here.

The current $50 million valuation leaves substantial upside once markets grasp Purepoint’s potential.Savvy uranium investors should have this overlooked name on their radar.
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View Purepoint Uranium's company profile: https://www.cruxinvestor.com/companies/purepoint-uranium-group-inc

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Interview with Keith Bowes, MD of Lotus Resources Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/lotus-resources-asxlot-unpacking-the-future-lots-strategic-moves-in-the-uranium-space-3854

Recording date: 25th January 2024

Lotus Positions for Uranium Resurgence Through Timed Mine Restart

With uranium prices now over $100/lb, more than triple recent lows below $30/lb, Lotus Resources sees fresh potential in restoring production at its previously operating Kayelekera uranium mine in Malawi. Shut down in 2014, Kayelekera has extensive historical data that de-risks projections of smoothly and profitably restarting operations. Lotus bought the mine in 2019 aiming to eventually benefit from recovering uranium market dynamics. That long-expected recovery now appears underway.

Targeting production restart by end 2025, Lotus is moving rapidly on technical and funding fronts. Updating past studies supports a 15-month post-FID timeline to refurbish facilities and enable the first new uranium output. Lotus’ leadership explains “With higher prices...there could be even higher prices 2026-2029...so we are focused on getting Kayelekera operating by end 2025” to fully capitalize on tightening supplies industry-wide.

Kayelekera carries modest $35M capital costs thanks to existing infrastructure. Higher prices also expand debt capacity which allows optimizing the project financing mix. Lotus sees far greater scope for debt now versus past assumptions. This lowers costs while reducing dilution. Added financing sources come from utilities newly willing to discuss upfront uranium purchase prepayments to guarantee future supply.

Crucially, Lotus enjoys a first-mover advantage over scores of competing projects. As management assessed, many overly optimistic plans likely “lack substance”. Kayelekera's real operational track record de-risks its commercial restart proposition. This engenders confidence in both product buyers and investors. Starting in 2025 while widespread deficits emerge gives Lotus priority customer access and best prices. Scarcity favors early responders - so reliable execution is key.

With fundamentals aligning neatly - low costs, solid production platform, advantageous timing, financing upside - Lotus offers investors well-timed leverage as uranium enters a pronounced recovery cycle. Past success positions the company for future outperformance. Kayelekera's swift reboot may propel Lotus shares higher as dramatically improving sector economics take hold through mid-decade.

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

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Interview with James Sykes, President & CEO of Baselode Energy Corp.

Our previous interview: https://www.cruxinvestor.com/posts/baselode-energy-tsxvfind-junior-sitting-on-a-district-scale-uranium-jackpot-4517

Recording date: 24th January 2023

Baselode Energy is an aggressive uranium explorer assembled by sector veterans to capitalize on rising uranium prices. The company boasts a commanding land position targeting shallow, high-grade ore bodies in Saskatchewan’s uranium-rich Athabasca Basin. Its properties cover interpreted basement geology with structural similarities to existing major deposits, like McArthur River and Key Lake.

Unlike most competitors fixated on incredibly high-grade unconformity deposits buried 500+ meters downhole, Baselode deliberately pursues much shallower 350 meter or less targets in basement rocks beyond the Basin’s edges. This Athabasca 2.0 strategy prioritizes finding near-surface open pit amenable ore bodies with lower mining costs and faster development timelines.

The thesis already yielded a hit in September 2021 with Baselode uncovering its ACKIO prospect. ACKIO revealed 9 discrete high-grade uranium pods over a zone more than 375 meters long and 150 meters wide. Mineralization starts as shallow as 28 meters below surface. Assays graded up to 5.08% U3O8 over 0.35 meters, including 24.4% U3O8 over 0.1 meters.

CEO James Sykes believes plenty more near-surface deposits await discovery on Baselode’s properties, citing Athabasca’s extensive and largely untapped basement potential. He draws comparisons to Cameco’s Fox Lake deposit and NexGen’s Arrow discovery proving major mineralized basement systems exist beyond perceived basin boundaries. Integrating modern interpretations of basement structural controls with geophysics and drilling helps pinpoint targets.

To test ideas systematically, Baselode fields one of the basin’s largest exploration plays at 250,000+ hectares all consolidated into a single package. Properties encompass 80 kilometers of favorable stratigraphy with walk-up drill targets and expansion potential around older discoveries. The portfolio offers immense running room to pursue Athabasca 2.0 discoveries.

Well funded after a November 2023 capital raise, Baselode has aggressive 2024 plans. A 2,000 meter drill program launches mid-February, testing 5 basement targets exhibiting compelling geophysical signatures of structurally disrupted corridors like ACKIO. More programs will follow evaluating deeper targets and regional prospectivity.

With superior leverage to rising uranium prices through cost-effective mining optionality and buyouts, Baselode presents a compelling risk/reward opportunity. Its impressive exploration package and credentials also suggest rival takeover potential as basin consolidation accelerates. Upside remains substantial for investors buying at current levels.

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

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Interview with Bruce Lane, Executive Director of GTI Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-aiming-for-10mlb-uranium-mine-in-us-4798

Recording date: 24th January 2024

Uranium explorers with assets located in the United States stand poised to benefit enormously from the major supply-demand imbalances in the global uranium market. America’s nuclear electricity generators currently require 50 million pounds of uranium annually to fuel reactors, but over 85% of this supply is imported. With ambitions to triple nuclear capacity to 100 GWe while also facing limitations on supply from major producers like Canada, Australia and Kazakhstan, uranium mining within the US is returning in earnest.

Against this backdrop sits ASX listed GTI Energy, aggressively exploring and developing insitu recovery (ISR) uranium projects focused exclusively in Wyoming. Their properties in established mining districts benefit greatly from nearby technical and infrastructure validation from current ISR operations owned by Ur-Energy and Energy Fuels. GTI's Managing Director Bruce Lane explains this favorable position stating that “we’re dealing with the same sort of geology, same sort of thicknesses and depth...which will give us great confidence that the economics shouldn't be too crazy".

Their Lo Herma property contains an existing uranium resource with ample expansion potential, while the newly acquired Lance project also comes with historic resources that can likely be grown considerably. With the global uranium price having tripled in just the past two years on the back of intensifying supply shortages, Lane notes that the economics of historical Wyoming deposits prove viable again, explaining “we know with this uranium price that projects are economic...that's why they're switching them all back on”.

Unlike hard rock or open pit mines, the ISR mining method utilized by GTI requires very little surface infrastructure or ground excavation, using injection solutions sent down drill holes to dissolve underground uranium ores. This makes permitting and development easier and more cost effective. The company estimates that a 1 million pound per year operation would require only $30-40 million in capital using ISR techniques.

With uranium demand showing no signs of shrinking in America even before the more than 30 new reactors under construction come online, the window is open for GTI Energy to demonstrate sizeable low-cost uranium resources that can assist in reviving domestic nuclear fuel production. The proven ISR geology de-risks the path forward as an aggressive drilling campaign aims to expand resources rapidly amid an incredibly bullish environment for uranium prices into the foreseeable future. Nuclear utilities would welcome these future US-mined pounds to reduce import reliance and increase domestic energy security.

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

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Interview with David Cates, President & CEO of Denison Mines

Our previous interview: https://www.cruxinvestor.com/posts/denison-mines-tsxdml-de-risking-activities-delivered-excellent-results-for-the-phoenix-project-3867

Recording date: 24th January 2024

With the uranium market swinging back into deficit conditions after years of oversupply, prices have embarked on a major bull run since early 2023. Spot prices have soared from below $30 per pound to over $100 recently. Higher prices will be needed to incentivize new mine development capable of rebalancing the market. This structural backdrop points to a prolonged period of strength ahead. 

Denison Mines finds itself well positioned to capitalize as it advances its flagship Wheeler River project in Canada towards production later this decade. The company has invested significantly in recent years to derisk Wheeler River operationally and permit it for development. The technical viability of the project utilizing the in-situ recovery (ISR) mining method was demonstrated via a field test recovering over 14,000 pounds of uranium. Regulatory approval remains on track for 2025. 

Concurrently, Denison has built up a strong balance sheet including a strategic uranium inventory worth over $300 million that provides funding flexibility. This enviable financial position enables the company to progress towards a development decision without substantial dilutive financing. 

Production at Wheeler River could commence by late 2027 at an initial rate of 8-9 million pounds per year. Beyond the flagship asset, Denison's portfolio includes minority interests in operating mines like McClean Lake, which offers leverage to Denison's additional pounds. The company also holds earlier stage exploration projects that provide investors with added upside exposure.

Denison finds itself perfectly positioned to ride the crest of a strengthening uranium market. As it de-risks and develops its assets into production this decade, investors have an opportunity for substantial returns over a multi-year investment time horizon.

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View Denison Mines' company profile: https://www.cruxinvestor.com/companies/denison-mines-corp

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Interview with Alex Pernin, CEO and Kevin MacLean, CIO of Star Royalties Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/star-royalties-strr-first-mover-originating-carbon-offset-royalties-1670

Recording date: 23rd January 2024

Star Royalties (TSXV: STRR) offers a compelling mix of deeply undervalued existing assets plus high-growth potential in the booming carbon credit market. Despite flying under the radar, this royalty company delivers an attractive value proposition for investors seeking commodities exposure coupled with steady cash flows.

Green Star Valuation Disconnect Represents Near-Term Windfall

The real prize lies in Star's wholly-owned Green Star Royalties subsidiary, focused on financing high-quality carbon offset projects. A recent $21M strategic investment from energy giant Cenovus values Green Star at $82M - 3x Star's entire current market cap.

Star Royalties retains 45.9% ownership of Green Star, presenting an enormous upside as the market eventually re-rates the stock to match this appraised value.

Major Partners Validate Business Model

Alongside Cenovus Energy, mining leader Agnico Eagle owns 26% of Green Star after conducting extensive due diligence. Their backing signals confidence in management's proven pedigree and the tremendous market potential as carbon credit demand accelerates.

First-Mover Advantage in High-Growth Market

Green Star deploys capital into agriculture, forestry and clean technology projects generating certified carbon offsets. With a specialty in high-integrity credits and a North American focus, Green Star dominates a fragmented space poised for massive growth.

Their low-cost production model also ensures strong profitability even if market carbon prices decline substantially from ~$50 per ton currently.

Precious Metals Exposure Provides Asset Backing

Star Royalties retains royalties on advanced exploration-stage gold assets plus plans to spin these out upon achieving fair value. This provides stable backing plus optionality for precious metals upside.

Compelling Risk-Reward for Growth and Income

For investors, Star Royalties offers a compelling mix of deep value (Green Star disconnect), strategic partners validating the opportunity, exposure to booming carbon credit demand, inflation protection from carbon pricing/gold, experienced and capable leadership, and planned Green Star IPO unlocking further growth funding.

It's a high-upside play merging growth and income for a commodity market recovery. This overlooked royalty company shines bright among plenty of overvalued stocks across sectors today.

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View Star Royalties' company profile: https://www.cruxinvestor.com/companies/star-royalties-ltd

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Interview with Dan Noone, CEO of G2 Goldfields

Our previous interview: https://www.cruxinvestor.com/posts/g2-goldfields-tsxvgtwo-expanding-high-grade-gold-discovery-in-guyana-4693

Recording date: 22nd January 2024

High-Grade Gold Developer Demonstrates Rapid Path to Production

G2 Goldfields is focused exclusively on advancing its high-grade gold discovery in Guyana, South America towards near-term production to crystallize value for shareholders.

With an initial resource of 1.2 million ounces grading 9 g/t gold, this deposit boasts exceptional grades setting the stage for low cost, highly profitable mining operations. Ongoing drilling aims to rapidly expand resources while also derisking the pathway to bring this ore into production within a condensed 2-3 year timeframe.

The project area covers significant strike length along a gold-fertile structural corridor with multiple mineralized zones identified across 17km. Continuity of high-grade ore shoots and consistent geological features confirm resource upside as exploration continues systematically testing the various targets.

Validating the world-class pedigree and district scale possibilities, major gold producer AngloGold Ashanti recently made a strategic investment into G2 Goldfields at a 40% premium to prevailing share prices. This provides a strong vote of confidence in the project.

The company's experienced leadership team brings substantial expertise both discovering and developing multimillion ounce gold deposits around the world. Their strategic focus beyond simply outlining larger resources sets them apart - systematic drilling also aims to de-risk the pathway for rapidly achieving commercial production.

With continued exploration success over the coming year, G2 Goldfields is positioned to emerge as an advanced stage, low cost gold developer in a premier mining jurisdiction. Near term catalysts include an updated resource estimate in Q1 2023 expected to show substantial growth.

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View G2 Goldfields' company profile: https://www.cruxinvestor.com/companies/g2-goldfields

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Interview with David Kelley, President & CEO of Chakana Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/chakana-copper-tsxvperu-financing-ready-ready-to-drill-4736

Recording date: 22nd January 2024

Chakana Copper is focused on demonstrating the sizable copper exploration upside at its Soledad project in Peru through an upcoming 2400 meter drill campaign. Having raised over $3 million from renowned resource investor Rick Rule and Goldfields to fund this work, Chakana aims to prove up what it believes could be a major high-grade copper discovery.

Situated in a prolifically mineralized tourmaline breccia pipe-hosting region of Peru, Soledad contains exceptionally high-grade copper at surface in pipes analyzed thus far. One intercept graded an impressive 27% copper and nearly 1 kilogram per tonne silver. Mineralization observed has also been continuous, with a drill hole returning 485 meters at over 1% copper from surface.

While precious metals like silver and gold predominate near surface, Chakana President and CEO David Kelley views Soledad as fundamentally a premier copper asset. The primary Solita Norte target exhibits clear discovery potential, with Kelley stating if exploration efforts hit mineralization there, “we’re going to hit it out of the park for sure.”

The Solita Norte target encompasses a 2.5 square kilometer copper and molybdenum anomaly central to surrounding breccia pipes and resides beside key indicators of a significant copper-bearing intrusive center.

Positive characteristics notwithstanding, shares in Chakana Copper trade around all-time lows, presenting a compelling risk/reward opportunity. Chakana provides leveraged exposure ahead of both extensive drilling on its copper assets and expectations for multi-year copper supply shortfalls signaling substantially higher prices by 2025. Exploratory success could rerate Chakana considerably higher.

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View Chakana Copper's company profile: https://www.cruxinvestor.com/companies/chakana-copper

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Interview with Terri Anne Welyki, VP Corporate Communications

Recording date: 19th January 2024

Strategic Copper Asset Next to Major Mine Presents Growth Potential

Barksdale Resources offers investors compelling leverage to surging copper demand through its strategically positioned Sunnyside project in Arizona. Located immediately adjacent to South32’s Hermosa-Taylor mine, a $2.1 billion copper operation, Sunnyside is likely geologically contiguous to this world-class deposit.

Historic drilling within project boundaries during the 1980s intersected high-grade copper, confirming mineralization extends into Barksdale’s holdings. However, low copper prices at that time meant Sunnyside was never advance. Barksdale believes the project warrants an updated drilling campaign using modern techniques to thoroughly explore and define the copper resources available.

After a 5-year intensive permitting process, Barksdale has secured authorizations for extensive drilling activities, including along the border with South32’s mine site. This drilling aims to confirm and expand the scale of copper mineralization identified historically.

The first phase comprises 7,000 meters with expedited assay lab analysis expected in early 2024. Additional drilling to earn a 67.5% project interest will continue thereafter.

In addition to proving up an independent copper resource, success at Sunnyside could have strategic implications. South32 may assess integrating any discoveries into their existing Hermosa-Taylor infrastructure given the ease of access from underground workings mere meters away. Barksdale’s drilling permits notably provide flexibility for the company to pursue mineralization across into South32’s own tenure.

Major miners including Teck Resources and Osisko Gold Royalties have recognized this value proposition, becoming key Barksdale shareholders. Their industry expertise validates district potential.

Sunnyside offers exceptional leverage to both the upside of exploration breakthroughs and opportunities for partnerships with senior miners positioned nearby. Barksdale represents a unique copper investment in what could emerge as one of America’s preeminent copper districts.

With approximately C$7 million raised in recent months, Barksdale has the capital to accelerate drilling activities to drive near-term catalysts. Expect a consistent news flow throughout 2023 that could substantially rerate Barksdale as assays demonstrate the grades and scale available at this storied past-producing project. Barksdale offers investors looking to ride the copper supercycle a prime opportunity to capitalize on a recovering market, surging sustainable energy demand, and scarcity of development-ready copper projects in first-world mining jurisdictions. Position accordingly with shares appearing meaningfully undervalued at current levels.

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Learn more: https://cruxinvestor.com/companies/barksdale-resources

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Interview with American Eagle Gold's CEO, Anthony Moreau, and Geologist Anthony Greig.

Our previous interview: https://www.cruxinvestor.com/posts/american-eagle-gold-a-promising-junior-explorer-in-bcs-golden-triangle

Recording date: 19th January 2024

Overlooked Explorer Ready for Takeoff After BC Copper Breakthroughs

American Eagle Gold has remained largely under the radar amongst investors, despite posting a series of exceptional high-grade copper drill results last year from its flagship project in British Columbia. With copper supply constraints causing prices to soar, the red metal has become one of the hottest commodities for investors. Yet few seem aware of American Eagle’s potential as an emergent copper developer.

The company’s 100% owned Nak project, located near Smithers BC, offers easy accessibility that enables cost-efficient year-round drilling. American Eagle has utilized modern geophysical targeting and geological modeling techniques to penetrate deeper than past operators at Nak. The latest inclined drill holes have delivered stunning grades over exceptional widths that were missed by earlier shallow holes focused along narrow mineralized structures.

Recent results include 304m at 1.09% copper equivalent and 800m at 0.59% copper equivalent. The headline copper grades alone place American Eagle amongst the top peer explorers globally. Just as significantly, the long continuous mineralized intercepts clearly indicate a very extensive system – with tremendous scale potential as drilling continues to delineate and expand the known zones of high-grade material.

With cash funding fully in place, no need to return to markets in the near term, and an experienced technical team aiming to systematically build out a premier asset in a tier-one jurisdiction, American Eagle checks all the boxes for investors seeking maximum leverage to copper prices.

Yet the company's modest $40M valuation fails to reflect the remarkable exploration progress achieved so far. American Eagle insists it is only a matter of time before peer explorers, institutional investors and major copper producers take notice of what has been uncovered at Nak. Prime drill targets remain wide open for expansion, promising further game-changing discoveries in future drilling campaigns.

For risk-tolerant copper bulls, American Eagle may represent the ultimate overlooked exploration bargain opportunity. Several fundamental factors underscore the investment case:

Robust Economics: Recent results confirm broad zones of higher-than-average copper grades from surface that could enable simple low-cost mining operations to be established early to generate initial cash flows.

Infrastructure Advantages: Year-round drilling access via paved roads dramatically cuts exploration costs and provides inherent development benefits over remote peers. Proximity to town/workforce also boosts efficiencies.

Strategic Backing Validates Potential: Major mining investment firm Tech has already invested in American Eagle multiple times - confirming technical merits of asset.

Systematic Success Mitigates Risks: 17 holes drilled so far have all intersected mineralization from surface - establishing extensive mineralized footprint. Metallurgy of nearby analogous deposits reflects highly favorable recoveries.

As American Eagle continues unlocking the full extent of its areas of high-grade mineralization in a premier jurisdiction with key infrastructure advantages, the investment opportunity around this overlooked copper explorer promises to only grow more compelling.
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Learn more: https://cruxinvestor.com/companies/american-eagle-gold

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