Company Interviews

Interview with Terry Lynch, CEO of Power Nickel

Our previous interview: https://www.cruxinvestor.com/posts/power-nickel-tsxvpnpn-high-grades-give-confidence-that-scale-will-come-3883

Recording date: 26th November 2023

Massive Deficits Forecast as Power Nickel Advances Quebec Asset into Looming Nickel Boom
Nickel has emerged as one of the most crucial commodities supporting the global energy transition and electric vehicle revolution. As demand forecasts call for 4 million tonne annual deficits within a decade, nickel projects with scale potential stand to thrive. Power Nickel presents a unique opportunity to position in a promising emerging developer just as the nickel price launches into a structural bull market.

According to CEO Terry Lynch, Power Nickel’s Nisk project in Quebec holds key similarities to the geological settings that yielded world-class nickel mines like Voisey’s Bay and Sudbury. Yet despite likely superior economics, Nisk carries a fraction of the valuation accorded to nickel peers at comparable stages.

The current resource spans just one million tonnes but initial analysis points to tremendous expansion potential both laterally and at depth. For context, major nickel sulfide mines often tap deposits stretching from 500m down to 2kms underground.

Supported by leading industry partners and Quebec’s generous incentives, Power Nickel recently raised capital to extend its exploration drilling campaign. The goal is proving up an initial 10 million tonne resource capable of supporting a multi-decade operation by the end of 2024.

Yet blue sky potential exists for significantly more. Having identified three additional mineralized pods nearby, Lynch sees scope for 30-50 million tonnes across the 75-square-kilometer land package—in line with the largest nickel mines globally.Such a sizable asset could produce over 10,000 tonnes of nickel annually plus substantial co-products.

At recent prices near $13 per pound, a 10,000-tonne per annum operation would generate almost US$300 million in nickel revenues alone. With copper nearing US$4 per pound and cobalt at $80, Nisk’s concentrate could fetch over US$1 billion annually.

These stellar economics explain strategic partner CM Group’s decision to invest alongside Power Nickel recently. The capital will complete feasibility studies maximizing future revenues.

Lynch expects feasibility to demonstrate Nisk’s robust economics even if nickel prices halve from current levels. With around US$300 million in pre-production capex anticipated, he sees costs getting repaid within 5 years. Attractive returns appear in reach before factoring Quebec incentives, which could fund nearly half the initial capital outlay.

As Power Nickel continues tackling short sellers it blames for depressing share values, strong operations execution aims to lay the groundwork for a dramatic rerating. The stock trades at steep discount to global nickel peers, signaling huge upside for investors positioning ahead of wider market recognition.
—
View Power Nickel's company profile: https://www.cruxinvestor.com/companies/power-nickel

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

Interview with Jean-Paul Tsotsos, Interim CEO of Chesapeake Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/chesapeake-gold-tsxckg-uncovering-a-shallow-oxide-gold-treasure-at-the-lucy-discovery-4174

Recording date: 30th November 2023

Chesapeake Gold Presents Attractive Investment Opportunity with Large Gold Deposit Supported by Proprietary Recovery Technology and Exciting New High-Grade Discovery

Led by newly appointed CEO Jean-Paul Tsotsos, Chesapeake Gold is advancing a dual-asset portfolio centred around its flagship 19 million ounce Metates gold-silver deposit and its high-potential new Lucy gold discovery, both located in mining-friendly Mexico.

The Metates project hosts a world-class resource base, but the mineralization is refractory, requiring innovative processing solutions to unlock the value. Chesapeake believes its proprietary pre-treatment oxidation technology can double gold and silver recoveries compared to standard methods for this type of challenging ore. Recent test work has already demonstrated significantly improved leach kinetics and recoveries. Ongoing optimization continues aimed at further enhancing project economics. Tsotsos sees Metates as a long-term production asset with over 16 years of initially projected mine life from just a quarter of the defined resources in the latest preliminary economic assessment.

However, while steady progress occurs on this large flagship, Chesapeake has also had early exploration success at its Lucy gold project where initial drilling has intersected exceptionally high near surface grades up to 25 meters of 6 g/t gold. Tsotsos highlights how rare it is to find such exceptional mineralization from surface, let alone in areas with established infrastructure like Durango. The oxide gold mineralogy also means simple, low-cost processing options without the complications of refractory ore. Several additional target areas remain untested along strike and at depth, providing considerable resource expansion potential as drilling continues to demonstrate scale and continuity.

With approximately $22 million in cash on hand, Chesapeake is fully financed to accelerate work programs at both Lucy exploration and Metates process optimization without any imminent need to raise additional capital. Tsotsos sees considerable blue sky potential to rapidly progress Lucy and achieve key project de-risking milestones by the end of 2024 to create and crystallize tangible value drivers for investors. Continued positive updates could drive speculative appeal and share price gains as the market recognizes Chesapeake’s success advancing dual high-quality gold opportunities in a tier-one mining jurisdiction like Mexico. The relative undervaluation compared to gold developer peers highlights a compelling risk/reward investment thesis. Tsotsos and his experienced executive team have the technical and financial background to successfully execute on planned growth strategies and elevate Chesapeake to the next stage of corporate development.
—
View Chesapeake Gold's company profile: https://www.cruxinvestor.com/companies/chesapeake-gold

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

Interview with Victor Cantore, President & CEO of Amex Exploration Inc.

Our previous interview: https://www.cruxinvestor.com/posts/amex-exploration-tsxvamx-advancing-towards-maiden-resource-and-pea-3913

Recording date: 29th November 2023

Advancing a High-Grade Gold District in Quebec

Amex Exploration continues systematically developing their wholly-owned Perron gold project in Quebec, Canada. Located in the world-class Abitibi mining region, the 15 kilometer property lies along the prolific Perron Fault and related mineralized structures. Ongoing drilling by Amex has delineated multiple high-grade gold zones that will form the foundation of an initial resource estimate targeted for publication in Q1 2024.

President and CEO Victor Cantore stresses that “not all ounces are created the same” when highlighting Perron’s exceptional grades exceeding one ounce per tonne gold. These high values captured investor interest despite turbulent market conditions, allowing Amex to raise $50 million in early 2022 to accelerate exploration and development initiatives. The current cash position stands between $14-16 million, providing over a year of financial runway.

In tandem with drilling, Amex has commissioned mining studies to determine optimal development plans and economics. While open pit potential exists closer to surface, Cantore believes the remarkably high underground grades could support priority development via ramp access. An economic assessment will analyze various scenarios to determine which unlocks the most value. Permitting and local infrastructure already in place further strengthen Perron’s prospects as an achievable near-term production asset.

In addition to expanding known mineralization, most of the expansive Perron property remains untested and underexplored. Cantore states that of roughly 20 total kilometers with strong discovery potential, early work has only drilled approximately 4 kilometers. Several conceptual targets generated significant results but have yet to be followed up, presenting substantial upside even beyond the project’s existing scale.

Supported by an experienced technical team, Amex offers a unique exposure amongst junior gold developers. In Canada especially, easily capitalized high-grade projects with demonstrated potential for economic viability represent the optimum investment profile. As gold markets stabilize and risk appetite increases, Perron’s compelling fundamentals position Amex Exploration to deliver outsized returns.

—

View Amex Exploration's company profile: https://www.cruxinvestor.com/companies/amex-exploration

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

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