Company Interviews

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.

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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.

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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.

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Interview with Gabriel Marcelo Rubacha, Director & CEO of NOA Lithium Brines Inc.

Recording date: 23rd November 2023

Lithium Veteran Quickly Advancing Argentina Projects

Gabriel Rubacha brings over 30 years of relevant industry experience to his new role as CEO of junior lithium explorer NOA Lithium. After helping develop projects across South America for major mining companies and serving as an independent director at Lithium Americas, Rubacha is now focused on advancing NOA's portfolio of three lithium brine projects in northwest Argentina's lithium triangle.

Thanks to Rubacha's extensive connections and negotiation skills, NOA has swiftly assembled a 100,000-hectare property package spanning Salta and Catamarca provinces. The company moved with urgency after going public in March 2023, quickly initiating drilling at the Rio Grande project. Assay results from the first phase of drilling are expected by year-end, keeping NOA on pace to deliver a maiden resource estimate in Q1 2024.

Rubacha sees particular promise at Rio Grande based on previous exploration by LSC identifying lithium concentrations up to 370 mg/L. He believes these concentrations provide flexibility regarding production methods, with solar evaporation ponds presenting a potentially low-cost extraction route. Rubacha expects an initial Rio Grande resource in the range of 1 to 1.5 million tonnes LCE, targeting shallow brine aquifers before assessing deeper potential.

With lithium demand forecasts predicting sustained tightness in coming years, Rubacha stresses that numerous projects will be needed to satisfy market growth. He notes that development timelines often face delays, providing a favorable window for NOA to advance Rio Grande. Once initial milestones are met, Rubacha envisions introducing a strategic partner to provide engineering expertise and potential funding support.

Rubacha highlights strong support for resource development from provincial authorities governing lithium regulation in Argentina. This localized oversight helps streamline permitting for companies like NOA. With backing from mining-friendly districts and nationally from a new pro-business presidential administration, NOA appears well-positioned to continue on its rapid early trajectory.

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Interview with Dr. Mike Jones, MD of Impact Minerals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/impact-minerals-asxipt-pitch-perfect-3608

Recording date: 22nd November 2023

Impact Minerals Poised to Help Fill Booming HPA Market through Low-Cost Production
High-purity alumina (HPA) remains a niche commodity today, but surging lithium-ion battery and LED lighting demand is fuelling the rapid market growth. With existing HPA producers already struggling to supply global requirements, Impact Minerals could enter the scene at an ideal time to help fill the widening supply-demand gap.

Impact controls substantial mineral resources in Western Australia capable of low-cost HPA production through a straightforward leaching process. Recent scoping studies validate the project’s world-class economics. Targeting operating expenditures under $10/kg HPA would establish an impact among the industry’s lowest-cost producers. Below $15/kg is considered competitive. Coupled with factors like full permitting and modular scale to minimise initial capex needs, Impact is positioned to capitalise on the HPA market’s unprecedented expansion.

Strategic Priorities Aligning to Reach Commercialisation
Impact has systematically focused its latest work programs on optimising HPA production flowsheet design and costs. Successfully generating larger-scale HPA samples remains key to qualifying product specifications with potential customers next year. Concurrently, management aims to accelerate critical mining agreements, project feasibility studies, and engineering reviews required for commercialisation. These coherent strategic priorities over the next 18-24 months are targeted to de-risk the project’s commanding upside potential.

Attractive Valuation with Over 5X Upside to Peer
Despite outstanding economics and strategic momentum, Impact Minerals still trades 70% below its 2021 highs. But successfully executing its development milestones in the period ahead can re-rate the company substantially higher. The project’s current discounted valuation contrasts significantly with HPA developer peer Alpha HPA, for example, which reached over a $1 billion market cap and trades at 5 times Impact’s current price, despite holding less advanced projects.

Ultra-High Margins Beckon Amid Deepening HPA Shortage
Impact’s projected production costs potentially half that of existing HPA producers set the company up to achieve ultra-high profit margins from selling into supply-short markets. Customer demand is clearly demonstrated, with multiple lithium-ion gigafactory and LED manufacturing investments driving HPA requirements higher every year. In a commodity market with distinctive supply pressures, Impact’s production scalability and low-cost output advantages provide a prime opportunity to generate major shareholder value. The bull case appears intact for substantial upside revaluation potential as strategic priorities advance toward targeted production within the next 3 years.

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Interview with Andrew Dornan, Executive Director of James Bay Minerals

Recording date: 22nd November 2023

James Bay Minerals is on a hunt for lithium, and this early-stage explorer has pegged Quebec’s underexplored James Bay region in its crosshairs. With surging demand for lithium to feed the electric vehicle and battery storage revolution, juniors like James Bay Minerals aim to tap emerging districts to supply critical minerals.

Strategically Positioned Among Significant Discoveries
The company boasts nearly 35,000 hectares spanning three properties – Arrow, Jewel, and Aqua. These land packages sit on the Eastmain greenstone belt, part of the Superior Craton known to host lithium pegmatites within its ancient geological structures.

Importantly, James Bay Minerals’ projects neighbor recent significant discoveries that sparked a staking rush. Lithium leader Patriot Battery Metals saw high-grade drill intercepts at its nearby Corvette property in 2022, while other explorers unearthed minerals just over the fence. “We’re looking for similar large structures,” says Executive Director Andrew Doran.

Experienced Team to Propel Exploration
Supporting the company’s exploration efforts is a proven leadership team. Non-Executive Chairman Gerardo Fernandez co-founded Battery Mineral Resources and opened Pilbara Minerals’ first lithium mine. Fellow Non-Exec Judy Baker discovered a major Quebec lithium deposit. These valuable veterans provide technical and capital markets guidance to aid rapid success.

Maiden Field Program Yields Pegmatite Discoveries
James Bay Minerals used its team’s regional expertise to launch fast-paced field work shortly after its August 2022 ASX listing. Prospecting across its tenure uncovered two significant pegmatite structures with visual spodumene crystals. These early lithium confirmations will help target ongoing exploration activity across the three properties.

Well-Funded to Advance Priority Targets
A healthy treasury fuels next exploration steps. The company completed a successful $5.5M IPO and holds approximately C$4.3M to deploy. Strategically leveraging data from surrounding mines and explorers to identify targets, James Bay Minerals can unlock value both through new discoveries and potential partnerships on district development.

Scalability to Supply Regional Processors
Zooming out, Quebec offers fertile ground for discovery, especially as resource nationalism impacts South American lithium investment. Supportive policies even incentivize regional exploration. Doran sees further advantage relative to Australia in James Bay’s proximity to North American markets. Lithium producers are actively looking to establish domestic supply chains in Quebec to feed ramping battery gigafactory capacity over the coming decade.

James Bay Minerals recognizes this convergence of relative under-exploration compared with Pilbara, constructive policy frameworks, and rising battery industry demand signals future opportunities. Its vast property package and regional team relationships provide the tools to supply Quebec lithium production, should economic deposits be delineated.

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Interview with Tim Harrison, Managing Director of Ionic Rare Earths

Our previous interview: https://www.cruxinvestor.com/posts/ionic-rare-earth-ixr-battery-recycler-ahead-of-the-pack-3252

Recording date: 21st November 2023

Building Europe’s Rare Earths Supply Chain from Mine Through Recycling
Rare earth elements may lack mainstream name recognition, yet they play irreplaceable roles across electric transport, renewable power, robotics, and defence sectors. Despite such critical applications, Europe sources over 90% of its rare earths from China, creating a major strategic vulnerability. However, determined policy action coupled with private sector innovation could soon change this landscape.

Australian firm Ionic Rare Earths is advancing projects on two fronts to onshore rare earths into Europe and build more resilient supply chains. The company is finalizing permitting to develop the Makuutu rare earths deposit in Uganda, while simultaneously commissioning a novel rare earths recycling plant in Northern Ireland this January.

Makuutu could become one of few large-scale rare earths mines outside China meeting European standards for responsible and transparent mineral development. Containing a large ionic clay deposit, metallurgical breakthroughs allow rare earths at Makuutu to be extracted via simple processes already proven successful in Southern China.

With over 94% of land access agreements secured and continued positive drill results, Ionic believes necessary approvals are nearing completion to allow initial production of mixed rare earth carbonate samples by Q1 2024. Director Tim Harrison explains that establishing this early output will let potential customers complete their own assessments as full-scale development continues.

In tandem, Ionic’s Artic Technologies joint venture is preparing for 24/7 operation at its Belfast rare earth recycling plant. This ground-breaking facility can extract rare earths from not just end-of-life magnets but also manufacturing scrap and other waste residues containing them. This greater feedstock flexibility bolsters supply security.

Already tied to a European supply agreement with Less Common Metals and Ford Motor Company, initial outputs from Belfast will showcase Artic’s technologies to other manufacturers. Supporting Europe’s goal for 25% of rare earth magnets to come from recycling by 2030, Artic aims to undertake feasibility studies in 2023 for commercial-scale development.

Getting both the Makuutu mine and Artic recycling plant successfully online would showcase Ionic Rare Earths’ capacity to deliver end-to-end rare earths supply chains on European soil. Integrating complementary primary and secondary production with regional manufacturing can help the continent minimise dependence on Chinese imports over the long-term.
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View Ionic Rare Earth's company profile: https://www.cruxinvestor.com/companies/ionic-rare-earths-ltd

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Interview with Shaun Bunn, Managing Director of Empire Metals Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/empire-metals-eee-massive-high-grade-titanium-mineral-system-explores-copper-potential-3202

Recording date: 21st November 2023

Massive Titanium Discovery in Western Australia
Empire Metals has announced a major titanium discovery at their 100% owned Pitfield Project in Western Australia. Initial drilling intercepted significant mineralization over a 30km strike length, with exceptional grades up to 20% TiO2 sampled at the surface. This points to a very large mineralised system with world-class potential.

As Managing Director Sean Burger stated, “We found titanium we found titanium over 30km strike length, we found it now 300-400m below surface, every meter full of titanium minerals.” The company believes Pitfield has uncovered a unique sedimentary-hosted titanium deposit not seen globally before. The scale and richness show similarities to giant discoveries like the Carlin Trend in Nevada.

Strategic Importance of Titanium
Titanium has faced structural supply deficits with accelerating demand from aerospace, defence, automotive, and other key industries. This backdrop provides strong incentives for new projects, especially those with clear scale advantages. With market size expected to reach $26 billion by 2030 and steady 6% annual growth, Pitfield offers exposure to these dynamics.

Empire’s Focus on Delineating High-Grade Areas
While the sheer district-scale mineralised footprint is proven, Empire is prioritizing drilling and metallurgical analysis to pinpoint higher-grade zones. As Burger explained, “we need to narrow down our scope, focus on where the grades are...then that translates to metallurgical investigations.” Defining optimised mineralization and processing flowsheets will drive commercialisation plans. By targeting high-purity titanium compounds rather than bulk minerals, Empire can substantially boost potential revenues per tonne of ore.

Attracting Strategic Partners
Empire recognises it will require strategic partnerships and cornerstone investments to develop a project of this magnitude. But they want to control and drive the upside. As Burger asserted, “I don't imagine us as a seller, I don't imagine a situation where we get there and flip it, give it away.” The company is actively building connections across the industry and shoring up technical capabilities to advance Pitfield.

The Coming Months

With over 12,000m of additional drilling starting in Q1 2023, Empire expects to significantly advance resource modelling and metallurgical analysis over the next 6-12 months. The work programs are fully funded and will feed into initial development planning. As results further validate Pitfield’s remarkable credentials, interest from majors and strategic investors is expected to accelerate. Titanium assets this significant rarely come to market. Exposure today represents exceptional leverage as Empire transitions into the development cycle to potentially build a multi-billion dollar project in a Tier 1 location.
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Interview with John A. McCluskey, President & CEO of Alamos Gold Inc.

Recording date: 21st November 2023

Driving Returns Through Operational Excellence and Focused Growth
Alamos Gold is a growth story and represents a unique investment opportunity within the gold mining space, combining steady free cash flow generation with extensive visible production growth. Since its founding in 2003, the company has created significant value for shareholders by converting high-margin assets into expanding low-cost gold output.

Led by mining veterans, management has systematically built a portfolio of Tier 1 operating mines during periods of market dislocation. These high-grade cornerstone assets in mining-friendly North American jurisdictions provide sector-leading cost performance. Supported by peer-low All-In Sustaining Costs (AISC) of around $1,000 per ounce, the company generates substantial cash flows throughout metal price cycles.

Unlike most mid-tier peers focused nearer-term on mine site exploration or marginal acquisitions, Alamos’ growth trajectory centers around fully-funded low-risk expansions. These construction projects add scale while lowering costs through operational leverage. The largest endeavor currently underway involves expanding Island Gold underground operations, which promises to increase output over 115% by 2026 once complete. Supporting further growth, existing infrastructure provides processing flexibility, extensive tailings capacity, and lower capital intensity for future development.

Beyond current mines, the company also controls what it believes is the best undeveloped gold deposit in Canada at Lynn Lake. Taken together, management targets boosting total production capacity 60% over coming years from 500,000 ounces currently to 800,000 ounces in 2028. Such growth promises significant cash flow expansion as gold prices rise.

Alamos Gold appears primed for future rerating as the market recognizes both high-quality assets and sector-leading growth. Exposure to rising gold prices with less risk forms a compelling opportunity for precious metals investors.

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

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Interview with Luis Azevedo, Chairman & CEO of Bravo Mining Corp.

Our previous interview: https://www.cruxinvestor.com/posts/bravo-mining-tsxvbrvo-strategy-successes-in-unlocking-value-in-brazils-luanga-project-3695

Recording date: 21st November 2023

Rapid Progress Positions Bravo Mining to Capitalize on Impending PGM Supply Crunch
Bravo Mining has rapidly advanced its Tier One Luanga PGM project in Brazil since the company's IPO 15 months ago. Located in mining-friendly Brazil, the project stands to benefit from low energy and operating costs. The company discovered high-grade nickel mineralization on the property and is focused on scale, low costs, and optionality.

In the 15 months since going public, Bravo increased its mineral resource estimate from 5.5M oz to over 10M oz PGM. This came from an aggressive 45,000-meter drill program that expanded the deposit at depth. 

The project requires only a $4M grid power connection to meet needs, with electricity at $0.025 per kWh. Extensive metallurgical test work has de-risked potential recoveries. The existing open pit project shows potential for low-cost production at scale.

Timing is Key
PGM supply is concentrated in South Africa and Russia. Aging South African mines are closing rapidly as the country faces power constraints. Meanwhile, auto demand is only transitioning slowly from internal combustion engines to EVs.

Azevedo sees the impending supply declines supporting prices: "The price cannot support this situation today." With hybrid vehicle growth still requiring substantial PGMs, Bravo is working to capitalize on this pending supply crunch. By targeting 2025 production, it aims to hit the market ahead of peak mine closures.

Additional Upside
Beyond its 10M oz PGM deposit, Bravo discovered high-grade nickel mineralization on the property. Surface trenching also revealed potential low cost gold production from oxidized material. The asset offers commodity leverage and production upside.

Proven Mine Builders
Azevedo notes his team built a $45M 1M ton plant for a planned $120M budget previously. The tight ownership structure of 52% management and 45% institutions ensures alignment. The focus is on value delivery over dilution.

Key Takeaways:
For investors seeking PGM exposure, Bravo Mining offers a unique combination of supply/demand dynamics meets world-class deposit meets proven operators. The team has skillfully executed exploration and development since IPO, expanding resources by 83%. Their location, existing infrastructure, scale and mine plan position the project in the lowest global quartile by costs. Commodity leverage meets production upside equals value creation.

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