Company Interviews

Interview with Ernest Mast, President & CEO of Doré Copper Mining Corp.

Our previous interview: https://www.cruxinvestor.com/posts/dore-copper-mining-dcmc-near-term-copper-producer-1702

Recording date: 13th December 2023

Restarting Copper Production in Quebec: Dore's Low-Risk Strategy

Doré Copper Mining, led by mining industry veteran Ernest Mast, is working to restart the formerly producing Corner Bay copper mine in Quebec's Chibougamau district. Utilizing a "hub and spoke" approach, the company plans to truck copper and gold ore from multiple deposits to its centralized Corner Bay mill site which has nameplate capacity of 2,700 tonnes per day.

Leveraging approximately $100 million in existing infrastructure, Doré aims to fast-track production at a fraction of the cost of building a new mine. An updated preliminary economic assessment outlined a 10-year mine life at Corner Bay alone, producing 30 million pounds of copper per year at all-in sustaining costs potentially under $2.25 per pound.

While copper prices have pulled back from record highs this year, Doré's base case economics remain strong. Significant optimization potential exists through the addition of sorting technology and further exploration upside. Recent drilling intercepted high-grade gold mineralization outside current resource pit shells.

Seeking to avoid dilutive financing amid volatile markets, Doré is pursuing government funding earmarked for critical minerals projects. The company is also engaged with potential partners including downstream copper concentrate buyers and strategic investors.

With permits in place and extensive infrastructure already built, Doré Copper offers a low-risk path to copper production in a top mining jurisdiction. Near-term share price catalysts include an updated economic study, exploration success, project financing, and strategic partnerships.

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View Doré Copper Mining's company profile: https://www.cruxinvestor.com/companies/dor-copper-mining

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Interview with Thomas Abraham-James, Co-Founder, President & CEO of Pulsar Helium Inc.

Our previous interview: https://www.cruxinvestor.com/posts/pulsar-helium-tsxv-plsr-upcoming-appraisal-drilling-program-on-exciting-us-helium-discovery-4207

Recording date: 8th December 2023

Pulsar Helium is a dedicated helium exploration and development company with projects in the USA and Greenland. 

A key recent development was the completion of a seismic survey at Pulsar's project site in Minnesota. The results exceeded expectations, clearly imaging a gas reservoir where a discovery well last year intersected gas containing 10.5% helium. This concentration is very high - the industry standard for commercial viability is just 0.3%. The imaged reservoir is open-ended and appears to have significant thickness, indicating substantial resource potential. Site preparation is now complete and an appraisal well will be drilled starting mid-February.

The initial discovery well only sampled the very top of the reservoir. The upcoming appraisal well will be drilled deeper to better delineate reservoir size and flow potential. Additional geophysical data is also being analyzed to refine reservoir modeling. Subsequent drill programs will target new anomalies identified in the seismic data that may indicate thicker reservoir sections.

With the exceptional 10.5% helium grade, Pulsar only needs to delineate a relatively small raw gas resource to be economically viable. The goal is to define a reserve base sufficient to support at least 5 years of liquid helium production. This is viewed as readily achievable given the regional scale of the play.

On the market side, helium prices have risen dramatically over the last decade from around $30 per thousand cubic feet to recent contract prices over $625, reflecting extremely tight supply. There is strong underlying demand but output is constrained by lack of available source gas. Pulsar aims to help close this supply gap. With no quick fix apparent, prices are expected to keep rising.

In summary, Pulsar Helium is advancing an exciting high-grade helium project in a market facing critical shortages. Results from the upcoming appraisal well in February will provide key data on the potential commercial scale of the discovery. Positive results could drive substantial upside for investors.

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View Pulsar Helium's company profile: https://www.cruxinvestor.com/companies/pulsar-helium

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Interview with Ali Haji, Director & CEO of Lithium ION Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/ion-energy-ion-lithium-explorer-brings-strategic-investors-to-site-2587

Recording date: 11th December 2023

Lithium ION Energy (TSX-V:ION) is a lithium exploration company offering investors leveraged exposure to lithium discoveries in the vast, underexplored country of Mongolia. Additionally, the company boasts strategic land positions in Canada's Northwest Territories amidst a rising wave of lithium pegmatite exploration.

In positioning itself to supply the urgent lithium demand in Asian and North American electric vehicle supply chains, Lithium ION Energy has accumulated over 100,000 hectares of prospective lithium real estate. With disciplined exploration and a focus on capital efficiency, strategic partnerships offer strong potential to unlock significant value across the company's asset portfolio over the coming 12-18 months.

Flagship Mongolia Assets Offering Leveraged Exposure

Lithium ION Energy prioritized Mongolia's lithium potential early, recognizing vast tracts of unexplored territory, rapidly expanding infrastructure, and China's proximity as an ideal consumer. The company has since outlined significant lithium mineralization at its two projects - the 20,000-hectare Urgakh Naran brine project and 81,000-hectare Baavhai Uul brine project.

As first movers in the country, unlocking value hinges on validation and strategic partnerships. Lithium ION Energy has suggested that reviews by established lithium producers could accelerate confidence and development. Government entities from China, France, and India have all recently shown interest in Mongolia's mineral potential as demand soars.

Strategic Acquisitions in Canada Offering Consolidation Potential

In Canada, Lithium ION Energy has made strategic land acquisitions in the Northwest Territories, where lithium pegmatite exploration is accelerating rapidly. The company holds the 5,798 hectare Bliss Lake property, located 10km from Yellowknife and positioned amongst peers now drilling out deposits. It also has the 900 hectare Little Nahanni project neighboring an active lithium discovery.

Pathways to Unlocking Value

In Mongolia, validation from lithium experts and potential strategic corporate or government partnerships could transform market perceptions and valuations. Proving out the immense potential by systematically derisking assets likely paves the fastest avenue for shareholders.

In Canada, positive early sampling and reconnaissance drilling has potential to elevate Lithium ION Energy amongst the numerous neighboring explorers vying for attention. However, the primary focus remains advancing the flagship Mongolia assets where scale and first mover status persists.

For investors, Lithium ION Energy provides an intriguing leveraged play on proving up Mongolia’s lithium potential, while maintaining strategic options in Canada. The company’s vast lithium-focused property portfolio, when combined with the structurally tight backdrop for battery metals, leaves tremendous shareholder upside on offer through exploration success and new partnerships aimed at elevating these assets up the value curve.

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View Lithium ION Energy's company profile: https://www.cruxinvestor.com/companies/lithium-ion-energy

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Interview with Peter Akerley, President & CEO of Erdene Resource Development Corp.

Our previous interview: https://www.cruxinvestor.com/posts/erdene-resource-development-erd-aims-for-150000oz-gold-production-2418

Recording date: 11th December 2023

Mongolian Gold Developer Constructing First Mine, Targeting 2025 Production

Erdene Resource Development is steadily building its inaugural gold mine in partnership with prominent Mongolian company Mongolian Mining Corporation (MMC) MMC. The Bayan Khundii project, located in southwest Mongolia, is currently 12-13% complete, with major construction slated to ramp up in Q2 2024. On track for first gold production in early 2025, Bayan Khundii carries low technical risk while offering robust profit margins even if gold prices retreat near-term.

Strategic partner MMC brings critical funding, development expertise, and political clout. Their $40M contribution provides half the required capex, with Erdene arranging senior debt for the balance. MMC’s mining affiliates allow accelerated development.

Bayan Khundii’s Phase 1 consists of an open-pit gold mine averaging 61Koz annual production over an 8-year mine life. Exceptional grades (4g/t Au) and low all-in sustaining costs under $900/oz gold provide protection against market volatility. Significant exploration success around Bayan Khundii and elsewhere in Erdene’s district signals longer-term growth potential as well.

Adjacent discoveries at Dark Horse, Dark Horse Extension and Altan Nar host high-grade, near-surface mineralization within trucking distance of the Bayan Khundii processing plant. These satellites could either extend Bayan Khundii’s mine life or warrant eventual stand-alone development depending on magnitude.

Beyond supporting Bayan Khundii’s development, partner MMC brings critical mass for Erdene’s regional exploration campaign. Beginning in 2025, annual free cash flows from Bayan Khundii (projected at $60M after-tax at $1800 gold prices) will fund this expanded drilling. Priority regional targets exhibit surface gold anomalism across Erdene’s 1,400 square kilometer land package.

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View Erdene Resource Development's company profile: https://www.cruxinvestor.com/companies/erdene-resource-development

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Interview with Claudia Tornquist, President & CEO of Kodiak Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/kodiak-copper-tsxvkdk-20000m-of-drill-assays-coming-soon-3884

Recording date: 11th December 2023

Exploring a Potential Major Copper District in Southern BC

Despite an extensive 2023 drill campaign spanning over 18,500 meters at multiple new regional targets, junior explorer Kodiak Copper has endured a declining share price amid broader junior mining market weakness. While full assay results are still pending, management believes early drilling confirms their working porphyry model at the MPD copper-gold project in British Columbia. Their thesis is that MPD could represent a significant-scale copper system with high-grade mineralized centers surrounded by lower-grade envelope halos.

President and CEO Claudia Tornquist explains that while the market is frustrated by intercepts below 0.2% copper, MPD requires context. Nearby mines like Copper Mountain have demonstrated economic grades at cutoff levels around 0.12% copper. Recent Kodiak holes reporting strong mineralization over kilometer lengths signal a substantial footprint, even at modest grades. Most promising are the emerging high-grade zones found thus far at the Gate Zone, West Zone and elsewhere that hold the key to any production scenario.

With sector sentiment poor but treasury still healthy at $4 million, Kodiak's focus is demonstrating the large scale potential at MPD. An early strategic investment by major base metals miner Teck Resources maintained to this day signals Teck sees district possibilities. Tornquist believes a portfolio of 18 defined regional targets, with most still untested, can drive substantial resource growth through new discoveries. This would bolster Kodiak's case as an attractive project for a future acquirer.

With its exploration model seemingly validated in early drilling, Kodiak plans to stay the course at MPD in 2024. Well funded for now thanks to earlier financing, upcoming exploration will zero in on the next batch of regional targets aiming to show substantial scale. Though dilution risks are real for Kodiak, demonstrating enough mineralized footprint to suggest possible development could mean a substantial upside re-rating when markets strengthen. 

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View Kodiak Copper's company profile: https://www.cruxinvestor.com/companies/kodiak-copper-corp

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Interview with Alan Carter, President & CEO of Cabral Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-targetting-near-term-gold-production-in-brazil-3916

Recording date: 11th December 2023

Fast-Tracking to Gold Production and Cash Flow in Brazil

Cabral Gold is rapidly advancing its Cuiú Cuiú project in northern Brazil to take advantage of extensive near-surface oxide gold mineralization. By targeting initial low-cost open pit mines and heap leach processing, the goal is to establish first revenues within 12-18 months. Recent drilling has continued to expand the existing oxide gold inventory, which already stands at 230,000 ounces in indicated and inferred categories. 

Additional assay results from over 50 completed holes promise to grow this number substantially when the next resource estimate is completed. The proposed starter operation focuses on shallow open-pit mining of soft oxidized material, with simple trucking to a covered heap leach pad just 1km away. After agglomerating the mineralized material using cement, gold can be efficiently recovered through a standard adsorption, desorption and recovery plant. With permitting already in place and minimal technical complexity, the pre-feasibility study is on track for completion in Q2 2024. CEO Alan Carter suggests the initial capital cost, likely in the $15-25 million range, will support a relatively modest but profitable operation. 

Cash flows can then fund extensive ongoing exploration across the expansive Cuiú Cuiú land package. The company is currently evaluating all funding options to avoid excessive dilution, targeting a potential construction decision before the end of 2024. Additional gold deposits have already been identified nearby, with considerable resource expansion upside across the broader district. In challenging markets, establishing self-funded exploration is critical. 

Fast-tracking initial production enables Cabral Gold to control its own destiny by offsetting reliance on external capital alone. With shallow high-grade mineralization and rapid de-risking of a starter operation, shareholders stand to benefit greatly from potential near-term cash flows.

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

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Interview with Siobhan Lancaster, CEO/MD of 92 Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/92-energy-asx92e-parallel-zone-discovery-hints-at-further-significant-uranium-resource-4065

Recording date: 11th December 2023

Australian Uranium Explorer 92 Energy Merges With Two Canadian Peers to Form New Force in Athabasca Basin

Australian uranium junior 92 Energy has announced a three-way all-stock merger with two Canadian explorers - Atha Energy and Latitude Uranium. The deal consolidates land packages, expertise and funding to aggressively explore 92 Energy's flagship Gemini project in the uranium-rich Athabasca Basin during a rising market for nuclear fuel.

Under the agreement, Atha Energy will acquire all outstanding shares of 92 Energy and Latitude. This values 92 Energy at a significant 78% premium to its last traded share price pre-announcement. The merged company will boast over C$64 million in cash, stemming largely from a recent C$60 million raise by Atha. This funding will focus primarily on expanding resources at Latitude's 42 million lb Angilak deposit and accelerating exploration efforts across the 92 Energy discovered Gemini structure's 14 km mineralized trend.

The consolidation creates a singular entity to advance projects in Canada's highest-grade uranium district, the Athabasca Basin. Collectively Atha and 92 Energy hold over 7 million acres of prospective ground for additional discoveries. The entity brings together complementary expertise from project generation and exploration to mine development and finance. This includes Atha CEO Troy Boisjoli's experience leading Cameco's Rabbit Lake Uranium Mine, which bodes well for systematically advancing Gemini. Meanwhile, 92 Energy CEO Siobhan Lancaster lends crucial mergers and acquisitions capability.

For 92 Energy shareholders, the merger provides multiple benefits beyond the upfront 78% premium. It alleviates fundraising pressures, enabling 92 Energy to leverage Atha's stronger balance sheet. This empowers more aggressive exploration at Gemini during a bullish period for uranium markets. It also consolidates the project under unified leadership boasting the ideal blend of technical and financial competencies needed to systematically de-risk and surface value.

The deal must still clear shareholder and regulatory approvals over the next couple of months. But if successful, the currently constituted entities will merge into a single force boasting the projects, people and firepower to thrive in Canada's uranium exploration hotspot amidst market tailwinds. For investors, it consolidates assets and de-risks flagship projects like Gemini into better-funded developers' hands just as a new uranium cycle gains momentum.

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View 92 Energy's company profile: https://www.cruxinvestor.com/companies/92-energy

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

Our previous interview: https://www.cruxinvestor.com/posts/outcrop-silver-gold-tsxvocg-step-out-drilling-on-ag-au-veins-in-colombia-3281

Recording date: 8th December 2023

Outcrop Positioned to Unlock World-Class Silver Potential
Outcrop Silver & Gold stewards a uniquely prospective silver asset in Colombia with newly appointed CEO Ian Harris at the helm boasting pertinent technical and regional expertise to rapidly advance the project. Santana contains 37 million ounces of high-grade silver resources open to immense expansion potential through further drilling of identified mineralized structures.

Bonanza Grades Confirmed
Exceptionally high silver grades position Santana as a global top-tier deposit. The sulfide-hosted mineralization facilitates excellent recoveries, with direct smelting capable of achieving up to 98% versus only 75% from comparable complex concentrates. The sheer magnitude of silver endowment per tonne constitutes commanding project leverage to any uplift in prevailing silver prices.

Resource Growth Imminent
With efficacious veins consistently evidenced across Santana’s footprint, the company has currently defined 21 priority drill targets to systematically upgrade and expand resources beyond the present basis of 7 quantified veins. Despite temporary drilling delays in appointing a new contractor, Outcrop maintains a focused regimen calibrating future growth milestones en route to a 100 million-ounce aggregate resource target crucial to fortifying Santana’s world-class project status.

Compelling Economic Parameters
In parallel with envisaged resource scaling, Outcrop has directed scoping efforts toward a relatively modest pilot plant operational at 50 tonnes per day, capable of demonstrating robust economics even at such diminutive throughput. The venture requires only circa $750,000 in capital expenditure while being able to furnish positive cash flow offsetting approximately 80% of ongoing exploration activity. This establishes a pathway toward de-risking and market re-rating grounded in the tangible creation of value.

Silver Market Primed for Resurgence
While prevailing precious metals investment sentiment remains tepid, silver fundamentals appear increasingly positive looking out into 2024. The time may prove opportune for allocating exposure to highly responsive silver vehicles. In Outcrop’s case, the sheer magnitude of prospective metal at Santana commands superior leverage to any pricing gains in an ascending cycle. The stock consequently warrants consideration among selective junior developer equivalents that offer pronounced sensitivity to silver values.

World-Class Pathway Forward
Outcrop Silver & Gold holds dominion over a potentially transcendent silver orebody. The essential parameters of grade, scale, metallurgy and economics are evidenced to world-leading standards. Near-term goals now concentrate on resource upgrading and materially expanding contingencies. Deft project financing design may layer on modest production to realize material value creation. When silver market tailwinds regain strength, Santana is primed to emerge as one of the global top-tier silver development stories, with Outcrop potentially graduating to headline producer status. The current market discounting of assets in this class could pose a pronounced value proposition for investors with appropriate time horizons.
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View Outcrop Silver & Gold company profile: https://www.cruxinvestor.com/companies/outcrop-silver-gold

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Interview with Dan Noone, CEO of G2 Goldfields Inc.

Our previous interview: https://www.cruxinvestor.com/posts/g2-goldfields-tsxvgtwo-huge-grades-discovered-at-ghanie-south-in-omz-project-4194

Recording date: 8th December 2023

Expanding a High-Grade Gold Discovery in Guyana
G2 Goldfields is focused on rapidly expanding their initial high-grade gold discovery at the OKO project in Guyana's Cuyuni region. With an initial inferred resource of 1.2 million ounces grading 9 g/t gold already outlined, drilling is underway to grow the resource base and make additional discoveries across 20km of prospective mineralized structure.

The current 1.2 million ounce resource is open for expansion, with drilling having encountered even higher grades at depth below the main OKO zone. As CEO Dan Noone explained, "As we drill deeper and we're targeting the higher grade, the average grade of the quartz veining was 22 g/t.” These exceptional grades showcase the potential as mining extends to depth. An updated resource estimate incorporating recent high-grade results will be released in Q1 2024.

While occasional exceptionally high-grade “jewelry box” intercepts generate headlines and showcase upside, Noone stressed that consistency and continuity of the overall mineralization is most important economically. As he cautioned, “You need mining width and you need continuity.” The focus remains on expanding the known zones of economic mineralization through step-out and infill drilling. Still, intersecting occasional spectacular high-grade pockets can provide a significant value boost.

With five drill rigs active, resource expansion drilling is targeting depth and strike extensions of high-grade shoots in the Main Zone and Ganny Zone. At the same time, regional exploration continues testing targets across 20km of highly prospective ground holding potential for new discoveries. As Noone asserted, "The discoveries are what really adds value in the mining industry."

For investors, G2 Goldfields offers exposure to resource expansion and new discoveries around an initial 1 million-ounce high-grade gold deposit in a mining-friendly jurisdiction with district-scale upside. Upcoming catalysts include an updated resource estimate in Q1 2024 expected to demonstrate substantially higher grades from depth extensions of mineralization. The consistently impressive gold grades highlight potential to develop into a high-margin underground mining operation.

Consider building an exposure while the resource is still early stage, allowing investors to ride substantial growth from resource drilling and ongoing exploration upside. Significant news flow should be expected through 2024, with 80,000 meters of drilling completed this year already. As resources grow towards a critical mass, the high grades should command premium valuations. The project's profile appears well-suited to underground mining scenarios which can deliver solid investment returns.

Key Takeaways:

Initial 1.2Moz gold resource at 9 g/t open for expansion through drilling
Updated resource coming Q1 2024 expected to show substantially higher grades
80,000 meters drilled in 2022, huge exploration upside across 20km strike
High grades suggest potential low-cost underground mining scenario
Opportunity to buy into resource growth and new discoveries

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

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Interview with John Jentz, CEO of Latitude Uranium Inc.

Our previous interview: https://www.cruxinvestor.com/posts/latitude-uranium-cselur-unlocking-tier-1-asset-as-prices-take-off-4421

Recording date: 5th December 2023

Latitude Uranium recently provided an update on drilling results from its 18-hole program in 2023. CEO John Jentz highlighted three key takeaways. First, mineralization has been extended and the overall resource has grown, as is visually evident in cross sections. Specific quantification will come when the resource is updated next year. Second, the discovery of a new lens represents what is believed to be hanging wall mineralization. If this geological theory holds up during further testing in 2024, substantial additional mineralization could be added across the broader deposit. Finally, improved understanding relates to cross cutting rock structures that allow ingress of mineralizing fluids. Higher grades frequently occur around these faults, allowing vectoring and targeting methods to become more refined.

With the recent raising of C$6 million, Latitude is fully funded for operations in 2024. The current plan entails reopening drilling in late May, depending on weather conditions. A prioritized list of around 25 targets guides planning, but some flexibility is required based on ground accessibility. Work continues over January to refine the modeling and analysis behind these targets.

Demonstrating resource growth and scale remains key to re-rating Latitude's valuation closer to peers. If the market response lags, alternate strategies like a preliminary economic assessment may be undertaken to showcase the attractive economics. The ultimate goal is cementing a 100 million pound world-class resource status.

While spot price increases are an encouraging signal, contract pricing retains importance for developers like Latitude. Consensus continues to emerge around a new long-term price level. Latitude's project occupies an attractive niche - more advanced than early exploration but not yet requiring massive capital outlays.

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

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