Company Interviews

Interview with Wayne Heili, MD of Peninsula Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/peninsula-energy-asxpen-this-is-a-better-solution-3815

Recording date: 11th January 2024

Peninsula Positions for Uranium Resurgence With 2024 Production Plans

Australian uranium developer Peninsula Energy (OTCQB:PENMF) believes it has addressed the challenges that hindered its production plans in 2023 and can now fast-track efforts to join the ranks of uranium suppliers by late 2024. The company is completing construction of a processing facility at its Lance project in the U.S. to produce yellowcake from an in-situ recovery (ISR) operation in Wyoming. Peninsula aims to ramp up to an initial production rate of 2 million pounds U3O8 per year.

According to CEO Wayne Heili, securing their own backend capability after originally planning for toll processing will enable Peninsula to reduce costs and more than double targeted output relative to the prior satellite approach. The decision did push back first production, but the extended timeline may prove fortuitous if uranium markets continue recent strength.

Following an institutional placement and share purchase plan raising A$60 million, Heili confirmed Peninsula now has adequate funding to finish plant modifications and infrastructure at Lance to achieve production in 2024. The company also structured additional financing options potentially worth around A$40 million to provide further support for the ramp-up phase if required.

Importantly, Peninsula Energy has substantial existing contract coverage inherited from the project’s prior owners that will help de-risk early operations. However, with only about one-third of the expanded production capacity spoken for so far, the company retains significant exposure to rising spot and term prices expected due to uranium’s structural supply deficit.

Heili points to U.S. policies around Russian uranium imports, renewed buying from the Sprott Physical Uranium Trust, and widening supply/demand imbalances as providing multi-year tailwinds. With mines unable to keep pace with reactor requirements globally, he suggests the market could retest all-time highs above $130 per pound in 2024. That would be a major boon for Peninsula coming online.

The Lance ISR technique itself is proven technology, having operated previously, and Heili expressed confidence in bringing production back given his team’s expertise. While timing may trail some other projects, Peninsula anticipates having lower costs than most at around $50 per pound. Thus, profit margins look attractive even on existing contract rates assumed to average $60 to $70.

With Peninsula clearing obstacles that distorted its outlook a year ago, investors now have improved visibility on the company’s capability to deliver yellowcake into a strengthening market. The strategic move to control its own backend processing de-risks operations and allows increased scale. Heili contends that with all key pieces in place, “2024 is about execution and getting the construction done and ready for production.” The coming 18 months will demonstrate whether Peninsula can fulfill its production promises to shareholders.
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View Peninsula Energy's company profile: https://www.cruxinvestor.com/companies/peninsula-energy

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Interview with Dan Wilton, CEO of First Mining Gold

Our previous interview: https://www.cruxinvestor.com/posts/first-mining-gold-tsxff-insiders-buying-signals-confidence-with-projects-4494

Recording date: 10th January 2024

First Mining Gold Positioning Major Gold Assets to Capture Value in Recovering Gold Market

Led by mining veteran CEO Dan Wilton, First Mining Gold continues efforts to optimize and advance its Springpole and Duparquet gold projects amidst recent positive developments. Located in stable, infrastructure-rich Canadian jurisdictions, these assets each contain multi-million ounce gold resources with significant exploration potential.

Recent drilling at Duparquet demonstrated growth potential, with positive results between two existing deposits pointing to a possible addition of over 2 million ounces. This further strengthens the investment case for what is already one of the largest undeveloped gold projects in Canada. Duparquet drilling aims to showcase the strategic value of these assets to potential partners.

Meanwhile at the company's cornerstone Springpole gold project, First Mining is advancing permitting efforts, with Wilton highlighting that "we have some very near-term catalysts there in terms of submitting our final environmental assessment this year.”

Importantly, Springpole’s 5+ million ounces of resources means the project’s value can increase substantially in a rising gold price environment. Successful permitting would further derisk this asset.

First Mining has also shored up its balance sheet, recently raising $11 million dollars alongside establishing a base shelf prospectus providing additional financing capacity if required.

Ultimately, Wilton makes clear these projects have enormous appeal in a consolidating gold industry needing to replace shrinking reserves. Springpole and Duparquet’s scale, exploration upside, and location means they stand to attract major miner interest amidst supportive gold prices. With gold developers trading at historic discounts to producers, partnerships or corporate transactions could unlock significant value.

First Mining’s portfolio offers leverage to an upcycle in gold, with near-term catalysts like permitting and drilling to potentially catalyze reratings. For investors, this represents a discounted exposure to tier-one, strategically important gold assets. Executing prudent steps to advance and de-risk these Canadian projects, First Mining’s foundations are firmly in place to capture a recovery when sector sentiment improves.

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

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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-revitalizing-wyomings-historical-isr-uranium-district-4419

Recording date: 10th January 2024

Australian uranium explorer GTI Energy is aggressively advancing its Lost Creek project towards production in Wyoming's prolific uranium district. Recent confirmation drilling has verified historical data, with mineralization intersected at depth beyond earlier drilling. GTI sees potential to delineate over 10 million pounds of uranium resources, sufficient to support a centralized in-situ recovery (ISR) processing plant in the district.

With capital costs estimated at $75-100 million for the processing facilities and wellfield infrastructure, the project requires additional scale. However major uranium miners active nearby point to robust economics from ISR operations in the region even at conservative long-term prices. GTI's Executive Director Bruce Lane highlights free cash flows ranging from $30-50 per pound based on all-in sustaining costs reported locally.

This potential upside as resources grow has prompted plans for further drilling both at Lost Creek and the company's nearby Green Mountain project. While equity financing remains an option, GTI is also actively engaged with North American institutional investors to broaden funding avenues and awareness amidst rising global uranium prices.

A strengthened on-the-ground presence in Wyoming will reinforce GTI's position amongst local miners and the project's strategic location for development. Past confirmation drilling has already derisked the historical database supporting current resources. Planned drilling aims to unlock the substantial expansion potential remaining from extensive past exploration across GTI's claims during uranium's 1970-80s boom era.

With global nuclear growth driving a pending supply shortfall, GTI Energy offers investors exposure to a potential near-term producer in a premier US uranium district on the doorstep of hungry nuclear utilities. Assuming delineation drilling confirms sufficient volumes, the project's centralized ISR processing plant could reap significant margins to underpin strong investment returns.
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View GTI Energy's company profile: https://www.cruxinvestor.com/companies/gti-energy

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Interview with Bradley Rourke, President & CEO of Scottie Resources Corp.

Our previous interview: https://www.cruxinvestor.com/posts/scottie-resources-tsxvscot-pursuing-high-grade-bc-gold-discovery-3928

Recording date: 9th January 2023

Scottie Resources Pursues Potential Million Ounce Gold Deposit

Despite ongoing challenging market conditions, Canadian gold explorer Scottie Resources remains steadfastly focused on systematically advancing its 100% owned Scottie Gold mine project in British Columbia's prolific Golden Triangle district towards potential delineation of a meaningful maiden mineral resource estimate in the year ahead.

With approximately 60,000 meters of drilling conducted since 2018, Scottie CEO Brad Rourke asserts confidence in ultimately demonstrating resource potential of at least 1 million ounces, underpinned by exceptionally high-grade mineralized zones at the Blueberry Contact target among others. Additional step-out drilling has the potential to substantially expand the current understanding of the project's resource growth upside over time.

However, with muted risk appetite weighing on capital availability, management faces key strategic decisions around prioritizing accelerating initial resource estimation versus continuing aggressive exploration drilling aimed at new discoveries across the vast 145 square kilometer land package.

Despite plans scaled back below original 2024 hopes of over 50,000 meter, Rourke suggests at least 20,000 meters remains achievable this year, affording continued progress particularly as independent consultants work to outline parameters and drilling requirements for reaching the million-ounce resource milestone.

Crucially, maintaining 100% ownership without encumbrances provides Scottie flexibility in capital allocation decisions, although funding ultimately determines the work program scale. With general investor enthusiasm around gold's lagging price strength, the company remains cognizant of the need to convey activity through ongoing exploration updates.

As work continues, several attributes underline Scottie's fundamental appeal. Exceptionally high grades exceeding 36 g/t gold have been intersected in recent drilling, complementing past production averaging over 16 g/t from the formerly operating Scottie mine. Excellent infrastructure exists nearby, with road accessibility and power access enabling straightforward development logistics.

Additionally, metallurgical test work has repeatedly confirmed excellent recoveries for Scottie mineralization using conventional processing techniques employed cost effectively at neighboring operations.

Combined with district scale consolidation activity including Ascot Resource's Premier project just 20km away gearing up for first gold production in 2024, the key elements bolstering mine development potential appear well in place to support Scottie's resource growth ambitions long term.

For opportunistic investors, Scottie Resources presents a unique leveraged exposure opportunity towards potentially fast-tracking delineation of a compelling maiden gold resource estimate centered around systematically expanded high grade showings surrounding an underexplored past producing mine with significant expansion potential remaining at depth and along strike.

While additional drilling meters stand required to reach formal resource definition, early movers backing experienced management could position attractively to capitalize on substantial valuation upside as technical de-risking efforts progress towards demonstrating multi-million ounce potential. For Scottie, laying the groundwork for maiden resource estimation tops 2024 priority lists, promising an eventful year ahead.

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View Scottie Resource's company profile: https://www.cruxinvestor.com/companies/scottie-resources-corp

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Interview with Tim Moody, President & CEO of Pan Global Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/pan-global-resources-tsxvpgz-growth-focused-copper-play-4472

Recording date: 5th January 2024

Pan Global Resources is ramping up efforts to swiftly advance its copper project in southern Spain to production. The company raised over $6 million in October 2024 to fund expansive drilling aimed at outlining an initial resource estimate at its flagship La Romana discovery.

"We're going to hit the ground running with drilling at La Romana to continue delineating the deposit's western extension, with plans for 20-30 holes and around 4,000 meters over the coming months," stated CEO Tim Moody. "An important milestone is fully determining the mineralized zone's scope so we can publish a maiden resource."

Moody sees this initial estimate as a potential catalyst for realizing shareholder value. The priority is expanding La Romana, where additional drilling continues encountering copper mineralization. "It's still growing...we've got to define the full extent of this discovery."

Beyond La Romana, Pan Global is also drilling the new Cañada Honda discovery and progressing earlier-stage exploration targets across its concessions. Discoveries here could supplement a future La Romana mining operation. "Additional discoveries are where you get really big increases in the company's valuation," Moody explained.

Rapid advancement is enabled by Spain's established mining industry and favorable jurisdiction. "Permitting, infrastructure, talent pool - Spain has all the attributes you want to expedite development," described Moody. He highlights straightforward geology and minimal technical complexity at La Romana itself.

Moody says tapping into booming copper demand could be achievable within 3-4 years from maiden resource to production. He's currently showcasing the asset to North American investors.

"We already have a discovery with strong economics. Our Spain location de-risks construction and permitting. And we have tremendous upside from new discoveries across our land package," he relayed.

With ample funding and drilling now re-started, Pan Global has a clear line-of-sight on revealing the full potential of its Spanish copper assets.

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View Pan Global Resources' company profile: https://www.cruxinvestor.com/companies/pan-global-resources

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Interview with Bruce Maluish, MD of VRX Silica

Our previous interview: https://www.cruxinvestor.com/posts/vrx-silica-vrx-learning-about-investing-in-silica-sands-market-2132

Recording date: 4th January 2024

VRX Silica Poised to Capitalize on Favorable Silica Sand Market Dynamics

Western Australian mineral sands developer VRX Silica is nearing key approvals to develop its portfolio of high-grade silica sand projects after extended delays. VRX has completed the final submission for environmental approvals on its flagship Arrowsmith North project and expects the decision from the EPA "anytime soon" according to CEO Bruce Maluish.

Silica sand is a niche industrial mineral with applications across glass manufacturing, foundries for metal castings, and emerging markets like solar panel glass. Demand growth has remained robust with the price for VRX's targeted products rising around 10% over the last three years amid tight supply. VRX is targeting export markets in Asia which should provide a stable customer base along with domestic Australian sales.

Updating its capital and operating costs to account for inflation, VRX believes the fundamentals remain strong. A 30+ year expected mine life enables the amortization of upfront capex while operating costs have crept up a modest 5%, mostly offset by securing cheaper gas-fired power. Attractive debt financing options are also available for the project.

Subject to securing approvals in early 2024, VRX has allowed 6-8 months for plant construction. Initial production in 2025 will be at 1 million tonnes per annum, ramping up over 2 years as customer qualifications and contracts are established. With a global shortage of high-grade silica sand suitable for key manufacturing processes, VRX already has offtake agreements for 200,000 tonnes per annum in place and strong international customer interest.

With five 100+ year projects under development, clear expansion upside, and near-term share price catalysts on the horizon, VRX offers investors an opportune entry point for exposure to specialized industrial mineral supply chains with structurally robust demand trends.
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View VRX Silica's company profile: https://www.cruxinvestor.com/companies/vrx-silica

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Interview with Trey Wasser, CEO, and Maura Kolb, President of Dryden Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/dryden-gold-pre-ipo-3497-gt-gold-over-85-meters-red-lake-20-4417

Recording date: 3rd January 2024

Dryden Gold Sets Out to Unlock Exceptional Gold Grades in Ontario's Overlooked Dryden District

Dryden Gold Corp is focused exclusively on exploring its district-scale Dryden gold project located in northwest Ontario. The company has consolidated over 20 kilometers of strike length covering a major gold-bearing geological formation known as the Dryden shear zone. Despite limited recent exploration, historical drilling has delivered exceptionally high-grade gold mineralization in certain zones.

According to CEO Trey Wasser, "we have a very strategic land package in The Dryden Camp" that is seeing renewed interest given the sheer scale of the consolidated land position and evidence that the project could host world-class high grade mineralization similar to the Red Lake gold district.

The company has already attracted a roster of renowned mining investors and industry experts like Eric Sprott, Adrian Day, and Robert McEwen to support Dryden's exploration efforts. An initial drill program is already underway while Dryden concurrently listed its shares recently on the TSX Venture exchange under the ticker "DRY".

Dryden's exploration is focused on better understanding high grade gold at the historic Gold Rock zone but the company sees potential to significantly expand the broader mineralized system across its 20 kilometer shear zone land position. CEO Wasser notes “we also want to show that this area could get much much bigger” with further systematic exploration.

Early geochemical and geological analysis results from initial field work and drilling in late 2022 is expected shortly which could serve as an important catalyst for the stock if gold grades impress. With a strengthened gold market in 2023, the timing is right for drill-ready high grade exploration stories like Dryden to unlock substantial value.

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

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Interview with Tara Christie, President & CEO of Banyan Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/banyan-gold-byn-4moz-au-in-yukon-restated-resource-mid-yr-drilling-3035

Recording date: 23rd December 2023

Advancing a Multi-Million Ounce Gold Project Towards Near-Term Production

Banyan Gold is methodically building the investment case for its AurMac project in Canada’s prolific Yukon territory. With an existing inferred resource of 6.2 million ounces of gold, AurMac offers coveted scale in a premier mining jurisdiction. Banyan is conducting systematic exploration and technical studies that could fast-track this sizable asset into Banyan’s targeted development window of 2026-2028.

In 2022, Banyan achieved a key milestone in substantially growing the AurMac resource. An aggressive 50,000 meter drill program more than met expectations by elevating the project over 6 million ounces of gold. Demonstrating resource expansion at economic grades was viewed as pivotal in elevating Banyan's investment credentials.

Banyan subsequently connected the project’s two primary gold zones through another 25,000 meters of focused exploration drilling in 2023. Assay results are still pending, offering significant potential share price catalysts as ongoing discoveries are revealed.

With resource expansion established, Banyan has turned attention to equally important economic and technical studies aimed at optimizing conceptual development plans. Metallurgical test work is analyzing upside scenarios spanning simpler heap leaching through to full processing plants. Banyan’s goal is to provide maximum flexibility for the lowest costs, tailoring project design to prevailing gold prices at development. Ongoing studies will feed into a preliminary economic assessment.

Well financed with approximately C$7 million, Banyan is fully funded through 2024. This will support additional targeted exploration focused on expanding high-grade zones. However, the priority is on quality growth rather than quantity, as delivering “smart ounces” with superior economics should translate into major share price gains. Advancing closer to production is seen as the optimal near-term strategy.

Located near supporting infrastructure with an existing heap leach mine next door, AurMac benefits tremendously from its Tier I Yukon address. Banyan can leverage local mining knowledge while positioning itself to meet rising M&A interest in a premier North American gold belt. With systematic de-risking now accelerating towards feasibility, Banyan offers substantial leverage at today’s valuations.

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

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Interview with Stephen G. Roman, President & CEO of Global Atomic Corp.

Our previous interview: https://www.cruxinvestor.com/posts/global-atomic-tsxglo-strong-government-support-development-continues-for-dasa-uranium-project-4258

Recording date: 22nd December 2023

Global Atomic stands out as the most advanced uranium development story, uniquely positioned to capitalize on rising uranium prices. The company is rapidly advancing its Dasa Project in Niger towards a targeted production start in Q4 2025.

With uranium prices currently around $90/lb compared to Dasa's feasibility study cost assumptions of just $35/lb, the project promises extremely attractive profit margins as an low-cost operation. 

Global Atomic is a Canadian development and exploration company focused primarily on bringing its flagship Dasa uranium Project into commercial production. The company also owns a cash-flowing zinc recycling operation in Turkey that provides important diversification.

In addition to Dasa, Global Atomic controls several other uranium exploration projects in Niger that offer future upside potential. However, Dasa remains the clear centerpiece in the company’s efforts to emerge as a new uranium producer amid an increasingly bullish market environment.

Dasa is a large, high-grade uranium deposit discovered by Global Atomic in 2010 located in the Republic of Niger. The company began key site infrastructure work on Dasa this year, overcoming temporary delays following a coup in Niger. Development activities restarting in December aim to have first uranium production in late 2025.

In the next couple of years, as Dasa advances towards production, Global Atomic has several major catalysts that could drive substantial value growth for investors:

Updated Dasa mining plan in Q1 2024 expanding resources and economics; continued exploration drilling to further increase reserves; construction progress driving derisking of operations; advancing project financing arrangements; and ultimately first U3O8 production in Q4 2025.

Dasa promises to strongly leverage strengthening uranium prices given its projected low operating costs and high-grade resource in a proven mining jurisdiction. Global Atomic estimates each $10 rise in uranium increases the project NPV by over $140 million.

With encouraging safety infrastructure now in place underpinned by broad local support, Global Atomic appears to have effectively managed recent stability risks. As it goes about executing on-time/on-budget towards production, Dasa could drive rapid cash flow growth just as the uranium bull market accelerates. This presents a very compelling investment case for speculators.

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View Global Atomic's company profile: https://www.cruxinvestor.com/companies/global-atomic-corp

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Interview with Stephen Stares, President & CEO of Benton Resources Inc.

Recording date: 22nd December 2023

Benton Resources is a Canadian exploration company focused on advancing its high-grade Great Burnt copper-gold project in Newfoundland, Canada. CEO Steven Stares has 17 years experience in the mining industry and comes from a family of prospectors and mining executives. He believes Great Burnt could become a substantial resource.

Benton recently optioned Great Burnt from Spruce Ridge Resources. Benton will earn a 70% interest by spending $2.5 million over 20 months, with the potential to earn 100% interest if Spruce Ridge does not participate in funding. Historical drilling in the 1960s-70s was inaccurate due to poor recoveries. Recent drilling by Spruce Ridge and Benton has uncovered significantly higher grades and widths than previously reported. Multiple zones are open along strike and at depth, with robust exploration potential across the 15km belt.

Benton recently completed 6,000 meters of drilling at Great Burnt, delivering exceptional high-grade copper and gold intercepts. This prompted strong share price performance and a recent $3.5 million financing. A 40,000 meter drill program is planned for 2024 to expand resources. Additional mapping, geophysics, and trenching will aid targeting. The deposit has excellent infrastructure nearby, with a major power dam and port access.

Benton also has early-stage projects in lithium and platinum group elements (PGEs). Its Newfoundland lithium project is being advanced in partnership with Piedmont Lithium. Benton's 24% stake in Clean Air Metals offers PGE optionality at the Thunder Bay North Project.

In summary, Benton's focus is advancing the large-scale potential of its Great Burnt copper-gold discovery through aggressive exploration. The company is well-financed, tightly held, and leveraged to drilling success. The CEO has reiterated his confidence that Great Burnt will become Benton's flagship asset as it works towards delineating a substantial mineral resource.

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View Benton Resources' company profile: https://www.cruxinvestor.com/companies/benton-resources-inc

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