Company Interviews

Interview with Catalin Kilofliski, CEO of Canagold Resources Ltd.

Recording date: 29th November 2023

Led by mining veteran CEO Catalin Kilofliski, Canagold Resources is rapidly advancing its 100% owned New Polaris project in British Columbia through feasibility studies and permitting, bringing this high-grade gold asset towards a near-term production decision. With indicated resources of 1.1 million ounces grading an exceptional 11 g/t gold, New Polaris stands out as one of the highest-grade undeveloped gold projects in western Canada.

Supporting potential low-cost, highly profitable operations, these exceptional gold grades persist from surface down to 500 meters depth, ranging from 1.5 to over 20 meters in width. As Kilofliski explained, "We are fortunate that the ore is very consistent top to bottom left to right so we can always kind of mine around 11 grams per tonne." This continuity means no high-grading is required, enabling reliable modeling of costs and mine planning.

Initial studies point to annually producing 100,000 ounces of gold at all-in sustaining costs of $1,000-$1,100 per oz over a 9-10 year mine life. With gold currently trading around $1,800/oz, New Polaris could generate roughly $80-90 million in average yearly free cash flow—tremendous economics for a junior gold developer.

Importantly, Canagold also benefits from a deep-pocketed strategic investor in Sun Valley Investments, owner of two operating gold mines in Colombia. Sun Valley holds 43% of Canagold shares and is fully financing the company through feasibility and permitting work, which recently surpassed the 50% completion mark. This funding support eliminates dilution risks while providing flexibility in weighing construction financing options ahead of a production decision.

Sun Vallery's backing also enables Canagold to chart a consolidation strategy within the struggling gold junior sector, evaluating distressed assets for potential acquisitions. As Kilofliski explained, "There are still some interesting projects out there where we can bring our capital and expertise and make a difference."

Trading at just a $30 million market valuation, Canagold offers substantial upside potential as it systematically derisks New Polaris towards production. The company’s tight capital structure and fully-funded status provide a unique opportunity for investors to position ahead of construction decisions and higher gold prices. With districts-scale exploration upside and sector consolidation plans backed by a strategic investor, Canagold appears poised to create significant value at a pivotal moment in the project development timeline.
—

View Canagold Resources company profile: https://www.cruxinvestor.com/companies/canagold-resources

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Pierre Léveillé, President & CEO of Koryx Copper Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/deep-south-resources-dsm-awaiting-license-for-copper-project-in-namibia-3181

Recording date: 19 November 2023

Koryx Copper Charging Ahead: Unlocking the Value in its Giant Namibian Copper Project

After years of license delays, Koryx Copper (formerly Deep-South Resources) is now aggressively exploring its flagship copper project in Namibia. Recent structural mapping and initial drilling have revealed zones of exceptionally high-grade mineralization cutting through the broad lower-grade porphyry deposit. Koryx is targeting these in a new 5,000m drill campaign, results from which will feed into an updated resource model by early 2024.

The current resource stands at over 1 billion tons at 0.31% copper. While low-grade, initial studies found the scale could support an economic operation using innovative lower-cost processing technologies. However, systematically delineating and incorporating the newly identified higher-grade zones opens up the potential to transform project value. Recent drilling has intersected exceptional grades up to 2.5% copper, nearly 10x the average resource grade.

This next round of exploration drilling and updated resource modeling aims to substantiate the grade-enhancing potential of these structural zones as Koryx charges towards a feasibility study within 2 years. The company has the backing of several potential strategic partners and private equity groups interested in funding the development of the project once de-risked to this next stage.

After years of value-suppressing uncertainty, Koryx offers investors an early entry point into a significant copper project just as critical exploration drilling kicks off. Demonstrating grade improvement could act as a major re-rating catalyst. Investors can position themselves to benefit as Koryx unlocks substantial value at this copper giant ahead of feasibility studies and into a strengthening market.

—

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

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Brandon Smith, CDO of Grid Metals Corp.

Our previous interview: https://www.cruxinvestor.com/posts/grid-metals-grdm-advancing-lithium-project-in-manitoba-3260

Recording date: 29th November 2023

Fast-Tracking Lithium Production by 2025 in Manitoba’s Fertile Ground

Grid Metals is advancing its Donner Lake lithium project at a rapid clip, targeting production by 2025. This aggressive timeline is enabled by Manitoba’s streamlined permitting and access to regional infrastructure, including an existing mill just 35km from the project. By refurbishing the True North gold mill for lithium processing, Grid avoids building a new dedicated facility and capex exceeding $300 million.

Instead, the company estimates a modest $50 million investment—including ample contingencies—could see Donner Lake transformed into a 75,000 tonne per annum lithium mine. The site already hosts a 7 million tonne resource at 1.39% lithium, with expansion potential at depth. Completed economic studies will shed further light on project returns, but early indications point to robust economics.

Notably, Grid Metals has signed an MOU with nearby specialty metals producer Tanco to assess the processing of Donner Lake material. However, the company suggests tolling economics are currently more favorable with the True North option. Either way, this infrastructure access is unique in the lithium development landscape.

Permitting is another critical advantage in Manitoba, where Grid Metals is modeling its application after a predecessor mine that went from discovery to permits in under three years. Approval for Donner Lake is expected in early 2025, dovetailing with feasibility study completion to allow project financing and development for targeted production that year.

Major global forces support Grid’s ambitions, with surging electric vehicle demand supercharging lithium consumption. While prices have recently softened, forecast tightening supplies bode well for producers coming online in the next few years. Donner Lake’s convenient location also unlocks government support, with Grid Metals estimating 30-40% of capex recoverable through grants and tax credits.

With much of the de-risking work already done courtesy of accessible infrastructure and geoscience data, Donner Lake is primed to realize substantial returns as the battery revolution gathers momentum. Grid metyals offers investors a smart way to ride the lithium wave.
—
View Grid Metals' company profile: https://www.cruxinvestor.com/companies/grid-metals-corp

Sign up for Crux Investor: https://cruxinvestor.com

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

Recording date: 29th November 2023

Promising Drill Results Position Baseload Energy to Unlock District-Scale Potential as Uranium Bull Market Accelerates

Junior explorer Baseload Energy believes it has barely scratched the surface of its ACKIO project’s upside potential. Located in the world’s highest-grade uranium jurisdiction, recent promising drill results at ACKIO have CEO James Sykes confident that larger-scale discoveries are in the offing.

“We hit better holes in many different areas on many different pods than we thought previously,” said Sygo, speaking at a recent industry conference. “It just shows that ACKIO has still some room to grow and still needs to be interpreted a little bit better."

The most recent highlight hole at ACKIO intersected high-grade uranium mineralization over 8 meters, demonstrating continuity of the deposit’s structure and alteration. Importantly, this intercept remains open for expansion in all directions.

Earlier drilling was focused on infill drilling for initial resource categorization. However, Baseload Energy has now pivoted to step-out drilling aimed at discovery.

“Our Summer’s drill program to try and complete an NI 43101 resource...that’s still our focus moving forward but it’s not so much of what we didn’t learn not to do,” remarked Sykes. “I think it was more successful on the front that we answered a lot of questions but we also, we hit better holes in many different areas.”

The company also sees clear evidence that the depth potential of ACKIO's uranium-bearing structure remains untested.

Sykes explained: “We were hitting better grades at depth...so there's the plumbing system is there and we haven’t fully investigated the depth potentially yet.”

Such high-grade discovery opportunities are arising just as sentiment and momentum continues accelerating across the wider uranium market. With the uranium spot price up 60% over the past year to $80 per pound, investors are taking notice.

Rather than rest on its drilling success, Baseload Energy is crunching the numbers to assess viability of fast-tracking ACKIO into production. The existence of nearby infrastructure and supportive mining policies enhances the asset’s prospects.

“We’ve started things like mineralogy studies and leachability studies because we want to move this,” Sykes said. “We do believe this is a deposit that can be extracted.”

Even while evaluating development potential, the company remains singularly focused on systematic exploration. A fully funded 2024 drill campaign aims to expand ACKIO's resources while testing new targets across Baseload’s regional land package.

“Next year is nothing but drilling. We hope to be drilling on all four projects,” remarked Sykes. “Make another discovery — that’s what we’re all about.”

With drilling having now validated district-scale mineralization, Baseload Energy looks positioned to thrive in an accelerating bull market for uranium.

—

Learn more: https://cruxinvestor.com

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Sapan Ghai, CCO of Sovereign Metals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/sovereign-metals-asxsvm-kasiya-project-to-capitalize-on-chinas-squeeze-on-graphite-supply-4276

Recording date: 28th November 2023

Giant Graphite and Titanium Deposit Poised for Development
Sovereign Metals is progressing its massive Kasiya project towards production to capture surging global demand for graphite and titanium. Kasiya’s exceptional size and quality give it “strategic” potential to supply these critical ingredients for clean energy technologies according to company executives.

With construction targeted within five years, Kasiya aims to produce over 250,000 tonnes per annum of high-purity graphite and titanium. “We’d be producing more graphite and titanium than anyone else,” said Chief Commercial Officer Sapan Ghai. Initial studies point to globally competitive production costs for these essential minerals.

Strong Economics and Returns
Development costs are forecast at a relatively modest $600 million based on a starter operation, with expansions to follow. Financial modelling shows 25 years of operations generating approximately $400 million in average annual EBITDA. “Forget the NPVs,” Ghai emphasised, “for 25 years this thing would be throwing off over $400 million per year.”

The project’s estimated 67% EBITDA margins demonstrate resilience to weaker commodity pricing. Conservative assumptions have been used, with graphite prices 60% below the levels consultants suggested were viable.

De-Risked Development Plan
Sovereign has completed initial studies and is undertaking further fieldwork and analysis to identify optimisation opportunities. The company aims to finalise a definitive feasibility study in 2025 to pave the way for construction.

Rio Tinto is providing technical input plus the option to assume operatorship when production begins. Ghai said its involvement significantly de-risks funding and development given Rio’s backing. The Malawi government is also highly supportive as it banks on mining to reduce aid dependence.

Massive Scalability Over 70-Year Life
Kasiya’s current defined resource covers just 30% of the land holding, signalling exceptional upside. “I’d still have 70% of the mineralization to go,” noted Ghai on the opportunities for staged expansions over 70-plus years even with the currently envisioned 250,000 tonne per annum throughput.

Sovereign is also evaluating additional clean technology products using graphite and titanium that could provide further diversified revenue streams from the sheer mineral volumes Kasiya offers.

Supply Security in Strategic Minerals
With few competing graphite or titanium projects that can match its enormous scale, low-costs and strategic backing, Kasiya is considered a globally important emerging supply hub. Product from the mine will help supply chain security for Europe, the United States and other jurisdictions focused on onshoring production.

Its advantages have sparked high investor interest, with the company likely to achieve substantial re-ratings as Kasiya transitions into one of only a handful of major producers of these niche minerals worldwide.
—
View Sovereign Metals' company profile: https://www.cruxinvestor.com/companies/sovereign-metals

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Mark Selby, CEO, Canada Nickel Corp (TSXV:CNC)

Our previous interview: https://youtu.be/98nx3HWEhDI

Recording date: 2nd December 2023

Canada Nickel Advancing District-Scale Nickel Opportunity
Canada Nickel has rapidly advanced the Crawford nickel-sulphide project towards production in recent years. Located in a leading mining jurisdiction of Timmins, Ontario, the project's sizable scale was confirmed by a 2023 feasibility study.

This feasibility study demonstrated robust economics for Crawford including an NPV of $2.5 billion and 18% IRR when accounting for monetizable carbon credits. With low projected operating costs in the bottom quartile for nickel sulphide producers, the initial 24-year mine life can potentially generate significant free cash flow through commodity price cycles. At $8.00 per pound nickel Crawford would produce mid-triple-digit annual EBITDA.

Importantly, Crawford represents only a starting point as Canada Nickel controls over 20 regional properties through one of the world’s largest prospective nickel sulphide districts. This extensive and underexplored land package provides substantial upside potential beyond the initial project.

The management team brings deep experience in mine development, project financing, and nickel markets. CEO Mark Selby recently described positive market feedback on Crawford’s feasibility study enabling “partnership discussions to propel forward”. The company appears well-positioned to finalize an off-take agreement with a downstream partner by the end of 2023.

Such a deal would demonstrate project merits and allow Canada Nickel to leverage partner relationships during the development phase. Off-take or joint venture agreements also offer potential funding avenues to minimize dilution, though the asset scale can support large traditional or streaming deals if required.

With a market cap of only $150 million, Canada Nickel trades at a fraction of Crawford’s fundamental value. As de-risking continues towards a 2025 production target, the current share price disconnect presents a compelling risk/reward entry point for exposure to a premier nickel sulphide development project. The additional regional exploration assets provide further optionality underpinning upside potential.
—
Learn more: https://cruxinvestor.com

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Alex Walker, Director & CEO of East Star Resources 

Our previous interview: https://www.cruxinvestor.com/posts/east-star-resources-lseest-pitch-perfect-3404 

Recording date: 28th November 2023

East Star Resources is a London-listed exploration company focused on copper and other base metals projects in Kazakhstan. CEO Alex Walker lives with his family in Kazakhstan, allowing close oversight of operations and helping to drive progress. He cites the low costs and good infrastructure as major advantages.

The company's main focus is on the Rudny Altai volcanogenic massive sulfide (VMS) belt where they have been drilling the historic Verkhuba deposit. Recent drilling aimed to demonstrate potential for an open pit resource that could be fast-tracked to production. Assays are expected shortly and Walker is excited about the potential they demonstrate. Proximity to local processing plants with spare capacity provides a clear development path.

The company raised £540k in October, providing working capital without immediate need for further financing. Focus is on advancing the copper prospects while rationalizing other assets through reduced license sizes and potential farm-outs or sales. The market is tough but Walker stresses considering optionality and cost of capital before giving assets away cheaply.At Verkhuba, historic data points to over 300kt contained copper yet the current market cap is under £3m. First mover advantage in country allows targeting high quality assets. Recent rock chip results also demonstrate potential at another target.

Next steps at Verkhuba include confirming an open pit resource and scoping study to demonstrate a clear low-capex development path, focused on first production within 1-2 years. Small scale, low strip ratio production could truck material 50km for toll treatment or on-site production of a 5% Cu concentrate. These options avoid needing to raise large capex, with potential for low opex in Kazakhstan.

In closing, Walker stresses the quality of the Verkhuba project, the potential value indicated by preliminary studies, the country advantages, and the strategic focus on demonstrating a clear, low-capex route to first cashflow in the near-term. This can help maintain shareholder confidence despite market challenges. 

—

View East Star Resources company profile: https://www.cruxinvestor.com/companies/east-star-resources 

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Dan Wilton, CEO of First Mining Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/first-mining-gold-tsx-ff-5-million-financing-to-advance-springpole-duparquet-projects-4341

Recording date: 24th November 2023

First Mining Focused on Derisking Major Gold Assets While Awaiting Market Turn

Despite an ongoing challenging environment for junior gold developers, First Mining Gold continues efforts to advance its portfolio of Canadian projects. The company aims to have its Springpole and Duparquet assets “shovel-ready” in time to benefit from the next bull market cycle in precious metals.

Insiders including the CEO and Chairman recently backed these strategic plans, contributing over $2 million as part of First Mining’s latest $10 million financing. The raised capital will focus predominantly on critical path permitting and engineering at Springpole and Duparquet over the near-term horizon.

Springpole contains one of the largest undeveloped gold deposits in Canada with existing resources to support a 36,000 tonne per day operation for 14 years. The 2021 pre-feasibility study outlined robust project economics including a net present value (NPV at 5%) of $1.5 billion and internal rate of return (IRR) of 29% at base case $1,500/oz gold.

Meanwhile Duparquet located in Quebec’s prolific Abitibi mining region could support a 15,000 tonne per day underground operation producing over 200,000 ounces per year. The fall 2022 preliminary economic assessment (PEA) generated an NPV of $579 million and 17.5% IRR based on $1,600/oz gold.

Financing and constructing either project remains challenging in the current environment, resulting in First Mining’s market capitalization drastically lagging projected asset values. Nonetheless, achieving de-risking milestones around engineering, permitting, and economic studies aims to enhance attractiveness for partnerships or takeovers.

Management currently targets a key environmental assessment (EA) approval for Springpole by mid-2025 to align with expectations for improving precious metals markets. Similarly, the recently released positive Duparquet PEA sets the foundation for this project’s next stage of due diligence by larger entities.

The insider backing provides sufficient working capital for the interim period where accessing external capital poses difficulties. While dilution still results for existing shareholders at depressed prices, project advancement supports efforts to realize value from Springpole and Duparquet in a multi-year timeframe.

First Mining’s portfolio combined with insider confidence makes it an intriguing leveraged play on the pending turn in sentiment across the gold developer sector. Once bullish tailwinds reemerge, assets of this scale in tier-one jurisdictions could stage pronounced share price rebounds. Starting engineering and design work before costs inflate again seems sensible for positioning the next wave of potential mines.

—

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

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Ari Sussman, Executive Chairman of Collective Mining Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/collective-mining-tsxcnl-advancing-district-scale-copper-gold-discovery-3932

Recording date: 23rd November 2023

Funded for Aggressive Drilling at High-Grade Apollo and Copper Targets in Colombia

Canadian junior explorer Collective Mining is actively drilling their Guayabales project in Colombia, aiming to expand the recently discovered Apollo gold-copper system and test new copper porphyry targets along trend.

With a robust cash balance of $20M as of September 2023 and low $1M monthly burn rate, the company anticipates their exploration budget will fund up to 20 months of drilling activity. Significant assays pending from Apollo illustrate resource growth potential and visual mineralization has already expanded its strike length.

In addition to Apollo follow-up, the focus is rigorously drill testing the Trap discovery showing comparable early indicators to Apollo such as thick mineralized intercepts, intense hydrothermal alteration and a known 1.5 km strike length. Assay results will inform immediate next steps and expansion drilling at Trap.

Collective Mining’s executive chairman Ari Sussman still sees extensive running room for new discoveries in Colombia and considers it one of the most promising global jurisdictions for explorers thanks to permitting taking just 10 months versus 12 years in the US.

The company also continues generating and advancing grassroots targets across the wider project based on methodical data analysis, aiming to replicate the exploration success they had discovering and outlining Continental Gold's Buriticá deposit, the largest gold mine now operating in Colombia.

With metals supply issues and rising demand due to global conflicts and energy transition requirements, Sussman believes now marks the critical time to continue aggressively exploring copper and precious metals projects. As markets eventually recover, funded front-runners like Collective Mining with active discovery drilling stand to emerge as consolidators.

—

View Collective Mining's company profile: https://www.cruxinvestor.com/companies/collective-mining

Sign up for Crux Investor: https://cruxinvestor.com

Interview with Bart Jaworski, CEO of Group Eleven Resources Corp.

Recording date: 23rd November 2023

New High-Grade Zinc Discovery in Proven Irish District

Group Eleven Resources is on to what looks like could shape up to be a major new zinc discovery called Stonepark, located adjacent to one of the world's largest undeveloped zinc deposits held by Glencore. Led by CEO Bart Jaworski, Group Eleven has methodically explored over the past 7 years to zero in on this brand new zone of high-grade zinc mineralization in Ireland’s prolific orefields.

With every single hole drilled at Stonepark intercepting zinc mineralization to date, the consistency points to strong potential for scale. The current strike length stands at 710 meters and is open. However, gravity surveys reveal a 2.9 kilometer long geophysical anomaly on trend, suggesting minable zinc may extend much further. When additional historical drill holes are considered, there is already evidence of mineralization over a 1.7 kilometer distance.

On top of that, regional gravity data outlines a 6 kilometer by 2 kilometer area littered with untested anomalies for Group Eleven to continue exploring. As Jaworski explained, this scale compares favorably in size next to past operating Irish zinc mines.

The highlight discovery hole stands out with an impressive 66 meters mineralized interval including 10 meters at 10% zinc, 100 g/t silver, and 2 meters grading a spectacular 41% zinc with 385 g/t silver. Subsequent holes have continued to demonstrate not only grade but also mineable widths, like 33 meters at 4.4% zinc within a broader 58 meter interval.

As the CEO stated, "What I love about this is the fact that all the red lines up pretty much exactly where you'd want it to be – it's all very consistent, which means tonnage potential. We don't need a lot of drilling."

Beyond the geology, Ireland offers advantages as a stable pro-mining jurisdiction with infrastructure to support development. Globally prestigious mining companies like Glencore seem to recognize the potential - they own 21% of Group Eleven's stock. Meanwhile, valuation remains discounted compared to peers based on the meters drilled so far.

—

View Group Eleven Resources' company profile: https://www.cruxinvestor.com/companies/group-eleven-resources-corp

Sign up for Crux Investor: https://cruxinvestor.com