Company Interviews

Interview with Stephen Stewart, CEO of QC Copper & Gold

Our previous interview: https://youtu.be/AGIoqUs4BAA

Recording date:18th January 2024

QC Copper Positions for a Copper Breakout in Quebec

With copper supply deficits projected for the coming decade against the backdrop of rising demand from global decarbonization initiatives, few Canadian-listed junior mining companies hold assets boasting grades that could attract major producer interest quite like QC Copper & Gold Corp. The company’s flagship Opemiska Copper Complex in Quebec’s Chapais-Chibougamau region contains an in-pit constrained resource with over 2 billion pounds of copper. With a copper grade of nearly 0.8%, Opemiska’s standalone copper grades run 2-3x higher than comparable large-scale projects. Yet the asset benefits tremendously from existing local infrastructure thanks to over 50 years of prior production history under previous operators.

Now with an updated technical report in hand validating the impressive copper grades, QC Copper turns its focus to demonstrating feasibility for restarting production. Defining infrastructure requirements and pit parameters will clarify potential social or environmental impacts, which remain top of mind given Opemiska’s proximity to the local town center. However, the company maintains excellent relations with local community stakeholders, grounded in transparency of intentions balanced by a track record of creating positive economic opportunities. Regional support from the Quebec government also bodes well for permitting and development timelines while containing jurisdictional risks.

Looking beyond the main deposit, QC Copper views Opemiska as an under-explored district play with several near mine satellite targets already identified but never systematically assessed using modern exploration techniques. Prior owners focused efforts on underground production, leaving substantial discovery potential at depth and more critically for QC Copper, also laterally from open pit friendly zones. The company’s methodical approach towards compiling and analyzing the region’s robust exploration database prior to drilling speaks to both technically and financially disciplined leadership. Any exploration success could meaningfully bolster already impressive copper grades as the company examines a range of scalable mining scenarios.

While a hesitant junior mining investment environment may temper expectations for QC Copper’s valuation in the coming months, the project’s copper endowment and infrastructure advantages position the company exceedingly well for accretive transactions. The notion of majors paying substantial premiums to secure copper production in mining-friendly jurisdictions carries plenty of recent industry precedent. As QC Copper’s exploration and study work progresses further de-risking future production potential, expect Opemiska to attract no shortage of suitors. Sooner or later, one of them will prise this copper-rich asset from the hands of QC Copper’s shareholders – albeit likely at an offer too good to refuse.

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Interview with Francis MacDonald, CEO of Li-FT Power

Our previous interview: https://www.cruxinvestor.com/posts/li-ft-power-advancing-high-grade-lithium-project-quickly-through-the-phases

Recording date: 8th December 2023

This Lithium Explorer is Racing the Clock to Production

While the recent plunge in lithium prices has paralyzed many industry players, one ambitious developer sees the current slump as an ideal opportunity to aggressively advance its large-scale project.

Li-FT Power controls the high-grade Yellowknife lithium pegmatite deposit, which is already visible from satellite imagery. Historic work and initial drilling has revealed both the significant size potential and consistently robust grades of this asset.

With the sector embroiled in turmoil, Li-FT's CEO Francis MacDonald believes now is the optimal time to expedite resource expansion and development. As rivals batten down the hatches, Li-FT is moving swiftly to demonstrate the world-class attributes of its deposit and sprint towards production ahead of the field.

The rationale is clear - establish low operating costs early to ride out periods of oversupply. MacDonald explains, “You want to have built it five years before and have paid off all your capex and captured market share." With future waves of new lithium projects inevitable, early movers will enjoy major cost advantages.

Most crucially, Li-FT has just commenced an aggressive 15,000 meter drill campaign to rapidly expand resources. While peers preserve cash in weaker conditions, Li-FT continues drilling to extend its strategic head start.

The company's bold moves to solidify its early mover status ahead of the competition could reward shareholders handsomely. As markets rebalance and lithium prices recover, Li-FT may have a clear path towards lower-cost production thanks to its foresight and speed.

For investors seeking leveraged upside to the coming wave of lithium demand growth, Li-FT Power presents a unique opportunity - the chance to back a motivated operator urgently developing a large asset ahead of the industry cost curve.

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Interview with Nick Brodie, Director & CEO of Golconda Gold Ltd

Our previous interview: https://www.cruxinvestor.com/posts/galane-gold-gg-addressing-issues-head-on-ready-for-2022-1398

Recording date: 17th January 2024

Golconda Gold Positioned to Unlock Value from Long-Life South African Asset

Gold miner Golconda Gold operates two assets - the Galaxy mine in South Africa and the Summit project in New Mexico. Galaxy is an underground mine with over 130 years of production history and permitted capacity for 50,000 tons per month of ore processing. However, it is only operating at around 15,000 tons per month currently. Through a relatively straightforward expansion plan, Golconda aims to ramp up Galaxy to produce 40,000 ounces of gold per year within the next 3-4 years.

The key enabler for this production growth is a recent $5 million streaming agreement secured from Empress Capital. Golconda will deliver the first 8,000 ounces produced to Empress at 20% of the prevailing gold price. Thereafter, Empress is entitled to a reduced 2% royalty over an additional 12,000 ounces, before dropping down to a 1.5% life-of-mine royalty. This customized and capped gold stream provides non-dilutive funding for Golconda to purchase necessary expansion equipment and undertake development to open up more stoping areas underground.

Importantly, the expansion is completely within the footprint of existing mining works and utilizes Golconda's permitted 2.5 million ounce mineral resource, of which just over 50% has been delineated so far. At the target 40,000 ounce annual rate, Galaxy's current 1.5 million ounce resource could theoretically support over 35 additional years of mine life with further exploration upside from neighboring ore bodies.

Previous technical challenges with flooding and equipment reliability have impacted Galaxy's production consistency. However, Golconda's experienced management team has addressed these issues, putting in place upgraded pumping infrastructure. Meanwhile, new funding will facilitate maintenance and equipment availability improvements to minimize downtime. From this more reliable production base, Galaxy's output is envisaged to double within the next year.

Beyond Galaxy, Golconda also owns the Summit project - a previously producing gold-silver project in New Mexico with significant existing infrastructure. A 2022 Preliminary Economic Study defined a 50,000 ounce gold equivalent potential operation over a 7-year mine life at all-in sustaining costs below $900 per ounce. Subject to sourcing $7-8 million in project financing through an offtake contract or additional streaming, Summit could provide valuable production diversification and cash flow upside for Golconda investors.

With excess process capacity, established resources, and experienced operational management, Golconda Gold presents a unique value investment opportunity. Near term funded growth towards 40,000 ounces per year of low-cost gold production could be just the start of Galaxy's renaissance.

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Interview with Paul West-Sells, President & CEO of Western Copper & Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/western-copper-gold-wrn-mitsubishi-and-rio-tinto-validation-3082

Recording date: 16th January 2024

Western Copper & Gold Steadily Advances Flagship Casino Project, Targeting Copper Supply Shortage

Yukon-based Western Copper & Gold continues methodical progress developing its large-scale Casino copper/gold project. With backing from major mining companies Rio Tinto and Mitsubishi Materials, Western Copper looks positioned to capitalize on anticipated copper demand growth driven by the global energy transition.

In a recent interview, Western Copper CEO Paul West-Sells touted a new $6 million investment from Rio Tinto in 2023. Rio Tinto has now invested almost 10% in the company after extensive due diligence. This reinforces its confidence in Casino’s potential. Western Copper is also collaborating closely with Rio Tinto on issues like permitting, securing green power solutions for the mine, and improving Casino’s economics.

On permitting, Western Copper remains on track to submit its main application in late 2024. While final approval will take over three years, this will mark a major derisking milestone. Successfully advancing Casino through permitting could significantly re-rate Western Copper given looming copper supply shortfalls.

The company had around $28 million in cash reserves entering 2024 – sufficient to reach upcoming milestones. With Rio Tinto and Mitsubishi invested in the project, Western Copper can secure additional financing as needed to maintain progress. The major partners’ backing helps derisk Casino for new investors.

Overall, Western Copper offers leveraged exposure to long-term copper demand growth driven by electrification. Casino’s large scale and favorable economics are rare among new projects. Rio Tinto’s expanding stake signals its confidence in both Casino’s merits and Western’s capacity to steer through approvals.

While Casino’s 8+ year timeline requires patient capital, the project’s upside potential is substantial. As the energy transition accelerates and the copper market enters sustained deficits, Casino is primed to supply the next generation of global copper production. For risk-tolerant investors, Western Copper presents a unique opportunity.

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View Western Copper & Gold's company profile: https://www.cruxinvestor.com/companies/western-copper-gold-corp

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

Our previous interview: https://www.cruxinvestor.com/posts/arrow-exploration-axl-high-margin-oil-production-funds-development-1801

Recording date: 16th January 2024

Colombian Producer Poised for Breakout Growth

Arrow Exploration holds prime acreage in the oil-rich Llanos Basin of Colombia, where it has built steady production growth and proven oil well economics. After doubling 2023 output to 3,280 barrels per day, the company anticipates replicating its success in 2024. "We have doubled production from the beginning of last year to now and we feel we're on a path to double production again by the end of 2024," stated CEO Marshall Abbott.

The current production base generates robust cash flow, funding an active $45 million drilling campaign this year. Arrow will drill 15 new wells, focused on lower-risk development locations, but also testing "a couple of exciting exploration prospects." Prior 3D seismic imaging helps de-risk reservoir targets within the company's core holdings.

Most tantalizing is the shift towards horizontal drilling. Arrow has scheduled six horizontal wells in 2024, with over 1,000 barrels per day expected from each. "The technology is fabulous and geost steering is a fun part of the game," remarked Abbott. By unlocking greater contact with reservoir rock, horizontal completions translate to substantially higher recovery rates and value creation.

Underlining its financial position, Arrow held approximately $15 million in cash exiting 2023, with no debt obligations. Operating cash flow is on track to average $2.5-3 million monthly this year after royalties. The scaled-up drilling program funded through internal resources provides non-dilutive growth. Abbott stressed, "From a financial perspective we're very healthy."

Trading at just 2x cash flow, Arrow remains undervalued relative to near-term production and cash flow expansion. Once the market recognizes Colombia's high-margin barrels and Arrow's consistent execution, shares could re-rate materially higher.

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Interview with Simon Clarke, CEO & Director of American Lithium Corp

Our previous interview: https://www.cruxinvestor.com/posts/american-lithium-tsx-vli-ruling-clears-path-for-lithium-uranium-assets-4462

Recording date: 9th January 2024

American Lithium Corp provided investors an update on recent progress for both its Falchani lithium project and Macusani uranium project in Peru. As electric vehicle and battery markets boom globally, American Lithium aims to establish itself as a premier supplier of the critical raw materials needed to feed this growth.

The company continues working to capitalize on strong lithium market conditions by advancing Falchani towards a 2025 targeted production start. Meanwhile, American Lithium believes Macusani has reached sufficient scale to support a standalone uranium developer company and plans are underway to spin out the asset.

Falchani Economics Solidify Position as Global Leader

An updated Preliminary Economic Assessment (PEA) for the Falchani lithium deposit shows substantially improved economics compared to the previous study. The NPV has more than tripled to $5.1 billion on an after-tax basis, assuming production of lithium carbonate. The company remains on track to deliver a Pre-Feasibility Study (PFS) by end of Q2 2024 as the next step towards potential development.

Importantly, the improved economics are driven by optimization of the processing flow sheet and operating parameters rather than just inflated resource estimates. Initial capex is estimated at $681 million for the 23,000 tpa Phase 1 lithium carbonate project. Critically, operating costs remain exceptionally low versus lithium peers at just over $5,000 per tonne.

The company continues permitting discussions with the Peruvian government, targeting a 2025 final investment decision for potential project development and mine construction. Additional drilling is likely to further expand resources after recent strong results.

Uranium Spinout Unlocks Hidden Value

At the Macusani uranium project, also located in Peru, American Lithium is planning a spin out into a standalone uranium-focused entity. Despite strong prices, the market currently assigns little direct value to Macusani.

Post-spinout, CEO Simon Clarke sees potential for the new company to achieve a $150-200 million market capitalization based on the quality of the advanced project. This would finally provide the project visibility and potential to re-rate towards valuations commensurate with uranium developers.

The company intends to maintain operational leadership during the transition phase to preserve vital local community relationships before transferring full control. Permitting, feasibility study progression, and additional exploration drilling will be areas of focus initially.

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

Our previous interview: https://www.cruxinvestor.com/posts/reunion-gold-rgd-gold-discovery-and-resource-estimate-in-guyana-update-3198

Recording date: 12th January 2024

Fast-Tracking Oko West: Reunion's Path to Gold Production

Reunion Gold has firmly set its sights on reaching gold production at its Oko West project in Guyana by 2027. What sets the company apart is a methodical execution strategy to advance Oko West through studies and permitting to support this aggressive timeline.

With approximately 4.3 million ounces of gold outlined since discovery in 2021, the deposit offers ample scale to underpin a meaningful mining operation. The resource estimate continues growing. While details will be forthcoming in a Preliminary Economic Assessment expected in Q2 2024, Reunion envisions both open pit and underground mine scenarios, affirmed by over $70 million raised last September to fully fund these studies.

President and CEO Rick Howes attributes being sufficiently capitalized to continue advancing Oko West without further dilution as a key accomplishment in 2023, setting the stage for near-term development. The raise came despite volatile markets, aided by key support from La Mancha after extensive due diligence.

Howes highlights 2024 as a pivotal year on the path to production. In addition to the PEA, Reunion is negotiating a minerals agreement to define project fiscal terms and economics. Baseline environmental field studies wrap up this quarter in preparation for submitting a formal EIA report in Q3 2024.

The feasibility study launches in Q3 2024 on the heels of the PEA. Howes stresses exercising prudence defining project parameters and costs at this phase. By maintaining realistic assumptions and detailed engineering, he expresses confidence in keeping Oko West on budget and schedule.

The final pieces include receiving key permits around year-end 2024 while finishing the feasibility study in Q1 2025. This timeline aligns for Reunion to make an official construction decision in 2025. Detailed engineering, confirming development capital, and starting earthworks may quickly follow.

While concentrated on advancing Oko West, Reunion intends to keep exploring. Additional discoveries could further improve project economics. The company also terminated an earlier alliance with Barrick, enabling full focus on its Guyana project.

Reunion Gold demonstrates critical traits for success: quality asset, execution capability, and sufficient capital. Investors seeking a high-grade gold developer positioned to reach production this decade may find opportunity in Reunion Gold.

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

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Interview with Troy Boisjoli, CEO of ATHA Energy Corp.

Recording date: 12th January 2024

Big Vision Explorer ATHA Energy Targets Uranium Riches Across Canada

As uranium fundamentals reach their most constructive levels in over a decade, ATHA Energy is expeditiously building a portfolio spanning over 7 million acres of highly prospective ground focused squarely on tier-one Canadian mining jurisdictions. Anchored by the massive Hook Lake land package in Saskatchewan’s uranium-rich Athabasca Basin, the company also holds key assets in Nunavut and Northern Saskatchewan maturing from early exploration up to historic resources.

“The long-term outlook in the uranium space right now is the strongest I've ever seen it,” said CEO Troy Boisjoli amid a recent company interview. “The time to invest and advance across the exploration risk spectrum is a great time." ATHA Energy is positioning itself as an emergent sector leader, systematically deploying capital to expand resources and make new discoveries against exceptionally constructive uranium tailwinds.

The Hook Lake project immediately thrusts ATHA Energy into rarified air as one of the dominant landholders in the world’s highest grade uranium district. Encompassing over 3 million acres (12,000 square kilometers), Hook Lake offers immense running room to apply modern exploration techniques and capital. Initial survey work and drill testing is already bearing fruit with over 90 million pounds of U3O8 discovered across three zones open in multiple directions.

Beyond Hook Lake, deals announced in late 2023 to acquire 92 Energy and Latitude Uranium provide ATHA a foothold in Saskatchewan’s GMZ uranium district and Nunavut’s past-producing Angilak deposit. Boisjoli sees GMZ as geologically analogous to the prolific 500-million-pound Rabbit Lake trend, with opportunities to expand the existing deposit and test multiple targets along trend. At Angilak, he highlights 60% resource growth from limited drilling by the previous operator.

With commodity prices rising amid shrinking global inventories, Boisjoli contends that now presents an optimal time to deploy risk capital along the exploration curve. ATHA Energy offers investors leveraged exposure to a strengthening uranium bull market underpinned by both high-impact exploration and strategic resource expansion. The company has both the technical chops and access to capital to unearth substantial shareholder value as it works to cement itself as an up-and-coming Canadian uranium leader.

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Interview with Mark Selby, CEO of Canada Nickel

Our previous interview: https://www.cruxinvestor.com/posts/canada-nickel-tsxvcnc-why-we-might-see-a-strong-finish-to-year-end-4510

Recording date: 14th January 2024

Canada Nickel has secured three high-profile corporate backers to help accelerate development of its wholly-owned Crawford nickel-cobalt sulfide project. Located in Timmins, Ontario, the asset has the potential to become one of the world's largest nickel sulfide mining operations.

Given Crawford’s relative proximity to the US border, Canada Nickel believes it can help establish a new nickel supply hub to feed surging demand from electric vehicle battery factories across North America.

Crawford’s world-class credentials have now earned validation through major investments from Korean battery materials manufacturer Samsung, diversified global mining giant Anglo American, and Canadian senior gold producer Agnico Eagle.

Samsung’s strategic investment provides strong customer endorsement. Its participation highlights automakers’ desires for regional nickel production centers close to manufacturing hubs, reducing supply chain complexity.

Meanwhile, Anglo American and Agnico Eagle underscore mining majors’ increasing appetite for top-tier nickel assets to capitalize on the global energy transition. Their backing signals confidence in Canada Nickel’s geological hypotheses around the potential to prove up an entire nickel district.

The recently secured funding puts Canada Nickel in a strong position to fast-track permitting, exploration, and project development. The company anticipates having full financing in place for Crawford before year-end 2024, facilitated by its new corporate allies.

Construction would commence promptly upon receipt of final permits in 2025. This could ultimately make Canada Nickel the leading North American pure-play nickel producer just as regional demand begins accelerating dramatically.

Exploration results across its prospective district continue gaining momentum. Ongoing drilling campaigns aim to unlock what CEO Mark Selby has labeled a “pipeline of significant nickel deposits.”

Success could ultimately support a district-level production hub underpinning 200,000-300,000 tonnes of annual nickel output.

For investors, Canada Nickel provides differentiated leverage to the heart of the energy transition story - meeting fast-growing nickel demand in geo-politically stable jurisdictions. The potential world-scale Crawford anchor and broader district upside make the opportunity particularly compelling.

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View Canada Nickel's company profile: https://www.cruxinvestor.com/companies/canada-nickel

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Learn more: https://cruxinvestor.com

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Interview with Brandon Munro, MD & CEO of Bannerman Energy (ASX: BMN, OTCQX: BNNLF, NSX: BMN)

Our previous interview: https://www.cruxinvestor.com/posts/bannerman-energy-asxbmn-how-uranium-term-contracts-get-signed-3814

Recording date: 12th January 2024

With uranium prices stampeding higher as nuclear power generation expands globally, Bannerman Energy offers a prime avenue to maximize gains from the supply-demand imbalance rapidly unfolding. The company’s advanced-stage Etango project in Namibia presents a near-term production opportunity ideal for this bull run.

Fully permitted and finalizing pre-construction activities, Etango narrowly leads the field of potential near-term uranium mine developers. Featuring a massive resource amenable to low-cost open pit heap leach extraction, the project boasts competitive all-in sustaining costs allowing profitability even at far lower prices. Expandable across its kilometers-long mineralized trend, Etango should maintain low operating costs for decades.

Hefting a construction-ready war chest topping $35 million, Bannerman needs no external funding to reach the final investment decision triggering start of mine development. The company can thus maximize leverage to rising prices by avoiding shareholder dilution. Savvy management has patiently advanced Etango whilst acquiring every needed permit rather than rushing construction when uranium lingered around $30 per pound.

Instead of typical project financing likely requiring metal stream agreements eroding future revenues, Bannerman entertain more flexible structures like partnerships with downstream fuel buyers. Such co-investors’ interests align better with shareholders’ aims of maximizing cash flows. Industry funding offers another means to limit equity dilution if required.

With few other projects sharing Etango’s advanced preparation and massive scale, Bannerman is positioned amongst the vanguard of likely suppliers into a wildly bullish uranium marketplace. As the first surge of unfilled utility demand strikes the market, contract volumes and prices alike look set to vault higher. Inking long-term agreements over coming quarters promises to lock in elevated returns compared to when uranium oscillated listlessly at multi-decade lows.

Rather than chasing explorers hoping to someday discover viable deposits or developers struggling through permitting and studies, savvy investors should consider the near-producers like Bannerman. Poised to swing into production rapidly, such companies offer real leverage to skyrocketing spot prices whilst carrying lower risks inherent in early-stage ventures.

As a seasoned operator in uranium’s premier mining jurisdiction with a straightforward, derisked heap leach project prepared for imminent construction, Bannerman checks all the boxes for investors seeking maximum exposure to the nuclear power industry’s escalating supply deficit. The company appears positioned amongst the likely first recipients of surging investment capital currently pouring into the uranium sector.

Bet on Bannerman Energy to deliver world-class uranium returns as this emerging supply crisis pushes nuclear utilities into bidding wars over scarce uncontracted volumes from Namibia’s next producer.

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Learn more: https://cruxinvestor.com/companies/bannerman-energy

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