Company Interviews

Interview with Bruce Lane, Executive Director of GTI Energy Ltd.

Recording date: 13th November 2023

GTI Energy (ASX:GTR) is an Australian uranium exploration and development company focused on In-Situ Recovery (ISR) projects in Wyoming, USA. The company's flagship project is the Lo Herma project in the Powder River Basin, Wyoming.

GTI Energy has an inferred resource of 5.7 million pounds of U3O8 at an average grade of 630 ppm at Power River Basin and Great Divide assets. The company was able to digitize historic drillings by previous operators into a modern database which provides a strong foundation of data on the project. GTI sees the grades and scale as potentially commercial based on analogs in the region. The company is now permitted and set to commence its own drilling program imminently, with objectives including verifying historic data, testing mineralization trends, and expanding at depth into the Fort Union Formation.

The Powder River Basin has a long history of ISR uranium production and GTI sees a clear permitting pathway. The Executive Director notes the industry tends to collaborate in Wyoming and sees potential for consolidation or partnerships with existing producers as a possible end game. Near term, GTI aims to advance Lo Herma to support a preliminary economic assessment.

The current uranium market presents an attractive environment. GTI is focused on demonstrating it can execute and deliver results in a prudent, stepwise fashion to build value in its projects. The extensive historic data provides a degree of legitimacy and confidence in the potential of its Wyoming uranium assets.

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

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Interview with Alex Langer, President & CEO of Sierra Madre Gold & Silver Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/sierra-madre-gold-silver-tsxvsm-larger-resource-restarting-production-4370

Recording date: 10th November 2023

Mitigating Risk in Mexico's Shifting Political Landscape
With recent political changes in Mexico creating uncertainty around mining policies, Sierra Madre Gold and Silver provide a compelling investment opportunity for investors seeking to gain exposure to silver production while minimizing country risk.

In a recent interview, Sierra Madre CEO Alex Langer explained how the company's strategic approach in Mexico is designed to navigate the challenging political environment and create value for shareholders.

Fully Permitted Asset De-Risks Execution
Sierra Madre's focus is restarting the fully permitted La Guitarra silver mine located in the Mining District southwest of Mexico City. Langer highlights that acquiring a past-producing mine with permits already in place provides a major advantage in the current climate.

"Having that as a leg up really de-risked the project and allows us to focus on just operations and getting the mine up and running vs. permitting," said Langer.

This effectively avoids the potential years-long permitting process required for new mines which would face substantial uncertainty. Sierra Madre can instead devote its capital to sustaining operations and expanding resources.

Fast Track to Production
By targeting near-term production at La Guitarra, Sierra Madre aims to start generating cash flows quickly rather than facing the dilution required to finance extensive exploration. Langer estimates restarting production will cost just $10-12 million, far less than building a new 500 ton per day mine.

"Once we're able to get back into production, generate cash flows, we will be able to use that capital, that excess capital for exploration to explore the rest of the project and make this quite a bit larger," explained Langer.

This strategy offers stability even in uncertain markets by reducing reliance on external capital. As Langer stated, "I want to build wealth here."

Exploration Upside in Prolific District
Beyond the permitted La Guitarra mine, Sierra Madre controls a large district covering over 40,000 hectares with historical high-grade silver production. Langer highlights the property has been the site of extensive past drilling and seven producing mines. This provides tremendous upside for growing into a multi-asset mid-tier producer.

Bullish Long-Term Outlook
Despite current challenges, Langer maintains mining will continue to play a major role in Mexico’s economy. He expects the industry to work with government to adjust policies, noting mining provides significant investment, tax revenue, and high-paying jobs. Sierra Madre’s production may benefit from rising silver demand.

Key Takeaways
- Fully permitted mine de-risks execution risk amid policy uncertainty
- Near-term production allows self-funding growth from internal cash flow
- Large land package provides exploration upside to expand resources
- Tremendous leverage to rising silver prices as primary silver producer
- Sierra Madre offers a compelling opportunity to gain silver exposure with reduced permitting and political risks relative to many explorers in Mexico’s challenging current environment. By targeting quick restart of production at La Guitarra, the company aims to build a strong foundation for long-term growth.
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Interview with Kyle Floyd, CEO of Vox Royalty Corp.

Our previous interview: https://www.cruxinvestor.com/posts/vox-royalty-tsxvoxr-using-unique-sourcing-to-build-high-return-portfolio-3948

Recording date: 9th November 2023

Vox Royalty Corp (TSX:VOXR) is a mining royalty company focused on acquiring royalties globally, especially in Western Australia. CEO Kyle Floyd discussed the company's strong Q3 2022 results, including record gross profit margins and earnings which is 50% more compared to last year. Vox takes a returns-focused approach to buying royalties, aiming to generate meaningful returns beyond its cost of capital in both the short and long term.

Vox Royalty's creative growth strategies, like monetizing its database of coal royalty information, utilizing non-core assets, and reiterating the company's focus on near-term producing assets to provide confidence in revenue generation.

Vox Royalty pays a dividend, currently the highest dividend payout ratio in the precious metals royalty sector, as a way to demonstrate its ability to generate cash flow and allow investors to "get paid to wait." The company is well-positioned to benefit from long-term commodity price tailwinds while insulating investors from mining companies' input cost inflation. With a strong cash position and operating leverage, Vox aims to continue acquiring royalties at favorable valuations to drive shareholder value.

View Vox Royalty's company profile: https://www.cruxinvestor.com/companies/vox-royalty

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Interview with Marcel Robillard, CEO of Puma Explorations

Our previous interview: https://youtu.be/U3ifBYsKwq0

Recording date: 9th November 2023

Puma Systematically Advancing Williams Brook Gold Project
Canadian junior explorer Puma Exploration has made significant progress in expanding its Williams Brook gold project in New Brunswick over the past year. Recent results from drilling and surface trenching continue to demonstrate resource growth potential as the company methodically advances the asset.

Drilling Extends High-Grade Lynx Zone
A core part of Puma's 2022 exploration program was 3,500 meters of drilling focused on expanding the high-grade Lynx Zone. Discovered in 2021, initial drilling returned exceptional grades up to 5 g/t gold over 50 meters from the surface at Lynx. However, continuity remained uncertain.

The latest drilling appears to have confirmed consistent mineralization both at depth and along strike. Puma's CEO Marcel Robillard summarized the success: "We went from 50m depth to 200m depth. The system, if it's an orogenic system, can go up to 800m deep."

In addition, the strike length has grown to over 700 meters and remains open. The consistency of intercepting the main 45-degree mineralized contact validates Puma's geological model, providing confidence for further growth.

Assay results on the final 6 holes will be released soon. Visible gold in 12 out of 24 holes provides visual evidence of continuity.

Surface Trenching Expands Footprint
Complementing drilling, extensive trenching expanded the surface footprint 50% from Lynx to the new northeastern Tiger zone. The total strike length now proven at surface is approximately 1.5 kilometers and open. Additional cost-effective trenching is planned for 2023 to further extend the footprint before renewed drilling.

Early Metallurgy Shows Potential
Initial metallurgical testing of Lynx mineralization returned exceptional recoveries up to 92% via simple gravity concentration with no chemical processing required. These early results showcase the potential for lower-cost processing with reduced environmental impact. Further studies are underway.

Set for Expanded 2023 Exploration
With positive results in hand, Puma plans expanded exploration in 2023 including further drilling, trenching, updated geological modeling, bulk sampling, and initial economic studies. The company is fully financed for these next steps with a solid cash balance and no need for near-term dilution.

Puma's systematic approach is successfully defining a large, high-grade gold system with open pit potential in a premier mining jurisdiction. As exploration continues, Williams Brook appears poised to drive significant resource growth and value creation.
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Interview with Gary Agnew, CEO, Co-Founder and Director of IDEON Technologies

Recording date: 7th November 2023

Overview of IDEON's Novel Subsurface Imaging Technology

IDEON Technologies utilizes a new subsurface imaging technique called muon tomography to help mining companies precisely locate ore deposits and optimize extraction. As explained by CEO GA, muon tomography functions analogously to medical imaging like X-rays or CT scans. It provides a high-resolution 3D model of density variations underground by detecting muons, subatomic particles that constantly bombard Earth.

This technology enables accurate identification and pinpoint localization of mineral deposits and anomalies. In an initial blind trial validation process, IDEON delivers density models for a test area based solely on its muon scanning, while the client provides drill hole data. Matching IDEON's imaging against hundreds of historical drill results establishes accuracy and builds confidence.

Transition to Multi-Year Commercial Relationships
After successful blind trials, IDEON transitions clients like BHP and Glencore to multi-year subscription contracts. The company handles all hardware, software, communications, analysis, and data delivery, providing a streamlined “full stack solution.” This simplifies adoption for the mining company and reduces contractual risks.

Importantly, IDEON does not take equity positions or seek royalties based on resource value unlocked. The company focuses entirely on providing premium subsurface imaging capabilities as an excellent technology partner. Its goal is recurring revenue growth through long-term subscription clients, not competing with or threatening the core business of miners.

Current Commercial Traction
IDEON now has 8 major mining companies as active clients. All have progressed beyond initial blind testing. The company is expanding adoption site-by-site with each customer.

While starting in greenfield exploration, IDEON currently focuses on brownfield exploration and active mining operations. Its data integrates with and enhances legacy gravity, electromagnetic, and seismic data sets through multiphysics inversion. This leverages prior mining investments while providing new, high-value insights.

Unlocking Substantial Value for Miners
By optimizing drilling programs, IDEON reduces clients’ largest operational cost. More accurate targeting also increases ore recovery while leaving waste rock undisturbed. This boosts profitability and minimizes environmental impacts.

Further, faster discovery and analysis accelerates the timeline from initial exploration to production for in-demand resources. With explosive demand growth projected for critical minerals like copper and cobalt, unlocking supply faster creates immense value.

Introduction to IDEON's Novel Subsurface Imaging Technology
Muon tomography provides 3D mineral density data, like medical CT scans
Blind trials validate accuracy against hundreds of drill hole results
Transition to Multi-Year Commercial Relationships

After trials, clients adopt multi-year subscription model
Focus is excellent technology service, not competing with clients
Current Commercial Traction

8 major mining companies now active clients beyond trials
Expanding adoption site-by-site with each existing customer
Unlocking Substantial Value for Miners

Optimizing drilling investment, improving targeting
Increasing ore recovery, decreasing waste rock
Accelerating discovery-to-production timeline
Growth Prospects and Market Potential

While currently focused on brownfield and active mine sites, CEO GA noted muon tomography could provide value across the entire mining lifecycle. IDEON takes a customer-centric approach to identifying the most critical problems to solve across exploration, development, and production.

Rather than seeking a percentage of the immense potential value unlocked, IDEON believes its contribution merits a reasonable premium price point. Maintaining commercial pragmatism and partnerships will enable growth.

If IDEON can leverage its innovative technology to optimize mining operations, unlock supply of key mineral resources, and scale customer adoption through a value-focused approach, the company may present a compelling investment opportunity. Subsurface imaging capabilities that accelerate discovery and extraction of critical minerals could prove valuable for mining companies and decarbonization efforts alike.

Learn more: https://cruxinvestor.com

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Interview with David Kelley, President & CEO of Chakana Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/chakana-copper-tsxvperu-fully-permitted-to-drill-multiple-new-targets-3905

Recording date: 8th November 2023

Chakana Copper (Ticker: PERU) is a junior exploration company focused on the Soledad project in Peru's Ancash province. The company has published a high-grade discovery with a resource estimate on a portion of the project. Chakana recently received a new permit that opens up the southern half of Soledad, providing access to several tier-one exploration targets.

The company is currently raising $2.2 million through a private placement, with lead order from strategic investor Gold Fields who holds 19.9% of Chakana. The funds will support a 2,400 meter drill program targeting the Mega-Gold porphyry target, as well as additional breccia pipe targets. Mega-Gold exhibits classic porphyry signatures including strong geochemical anomalies, quartz-pyrite-chalcopyrite veining, and a large IP chargeability anomaly indicating sulfide mineralization starting at just 125m depth.

Drilling is slated to commence in March 2024 once the rainy season passes. In the meantime, Chakana will continue resource estimation work and geometallurgical studies on the existing high-grade resource. The company believes the Soledad project offers tremendous exploration upside through systematic targeting of the broader mineralized system.

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

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Interview with Michael Collins, Director & CEO, and William Sheriff, Chairman of Nuclear Fuels

Recording date: 7th November 2023

Nuclear Fuels Corporation (CSE:NF) is dedicated to in-situ uranium exploration in the United States, primarily in Wyoming. Their key property is the Kaycee Uranium Project located in the western side of the Powder River Basin, a prolific historic uranium-producing region. The KC project encompasses over 30 miles along trend with almost 4,000 historic drill holes and is the best uranium exploration project in the US.

The company is focused on validating and expanding the half-million pound historic resource at the Kaycee Project. They believe this area has potential for some of the highest grades on the property with an average grade of 0.14% U3O8 based on historical data. The investment case highlights that Nuclear Fuels has assembled the entire 110-mile system of mineralized roll fronts in the district under one company for the first time. The company has an aggressive drilling program underway to step out and expand the known mineralization along the roll-front trends. They are utilizing gamma probe logging for rapid turnaround of assay results over the coming weeks and months.

Upcoming catalysts include a steady flow of drill results from the ongoing program expected over the coming weeks. These results will support the validation and expansion of the historic resources to build investor confidence and support further fundraising. The ultimate goal is to delineate a minimum 10-15 million pound resource to trigger the clawback option by Encore Energy and position Nuclear Fuels on the fast track to uranium production in Wyoming.

Learn more: https://cruxinvestor.com/companies/nuclear-fuels

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Interview with Hayden Locke, President & CEO of Marimaca Copper Corp.

Our previous interview: https://www.cruxinvestor.com/posts/marimaca-copper-tsxmari-permitting-dfs-timeline-fast-tracking-copper-production-by-2026-4348

Recording date: 6th November 2023

Marimaca Copper Corp is rapidly advancing its flagship Marimaca Copper Project in Chile through systematic derisking and optimization. With a recent major metallurgical breakthrough, Marimaca has cemented itself as one of the leading global copper development stories.

The company announced excellent results from Phase 6 metallurgical testing, which yielded a 25% reduction in projected acid consumption for processing its copper ores. This translates into significantly lower operating costs for the project.

Acid consumption is expected to fall from 40.6 kg/t to 30.6 kg/t based on optimized leaching conditions identified in the test work. With acid accounting for 30-40% of cash costs, this reduction provides major upside for Marimaca's cost profile. The company anticipates its C1 operating costs could now come in as low as $1.00-1.10/lb versus previous guidance of $1.30-1.40/lb. This would place Marimaca in the lowest quartile of the global copper cost curve.

At the same time, Marimaca confirmed average copper recoveries of 74.9% from its testing, in line with results from previous programs. It also showed further flexibility to reduce acid usage with minimal impact on overall recoveries.

The metallurgical optimizations significantly de-risk the project and provide multiple economic benefits. Firstly, the project has materially lower life-of-mine operating costs and increased profit margins at conservative copper prices. It has enhanced project economics with a potential NPV upside of 40-50% at the feasibility study stage. There is also an increase in operating flexibility and resilience against spikes in acid pricing. It has also further derisked Marimaca as the project heads into final feasibility study and project financing phases.

With Phase 6 metallurgical testing now complete, Marimaca is on the cusp of releasing its definitive feasibility study in 2025. The company remains on track to submit environmental permits in mid-2024 and break ground on construction in 2025. First copper production is expected in 2026, perfectly aligning Marimaca with the coming copper supply deficit as demand surges from electric vehicles, renewable energy, and global electrification. Marimaca’s large, oxide-only copper resource, straightforward metallurgy, tier 1 Chilean mining jurisdiction, and clean balance sheet further reinforce its position as a top global copper developer.

For investors, Marimaca represents a compelling, de-risked way to capitalize on the copper bull market. It offers world-class discovery potential and near-term production growth just as copper heads into a structural deficit. Few copper developers can match Marimaca’s blend of low operating costs, strong economics, exploration upside and clear path to production in a premier mining destination like Chile. With its latest metallurgical milestone, Marimaca cements itself as a premier copper growth play at the forefront of the electric vehicle revolution.

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

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Interview with Gregory Liller, Executive Chairman & COO of Sierra Madre Gold & Silver Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/sierra-madre-gold-silver-sm-revitalizing-production-at-the-guitarra-mine-3200

Recording date: 3rd November 2023

Sierra Madre Gold & Silver (TSXV: SM) is a precious metals mining company focused on restarting the historic Tepic silver-gold mine in Mexico. Executive Chairman Greg Liller outlines the company's large resource increase, plans to refurbish the existing 500 tons per day with new pumps and plumbing to improve recoveries, and goal of becoming a mid-tier silver producer.

The recent resource estimate increased indicated resources to 3.8 million tons grading 7 oz/t Ag plus inferred resources of 41 million tons grading 153 g/t Ag. This 373% increase was achieved by incorporating historical data from prior operators and includes higher-grade underground material plus lower-grade tailings and backfill mineralization. 

Sierra Madre Gold and Silver aims to become the next mid-tier silver producer in Mexico. The current resource could support the production of 1.5 million oz Ag per year and exploration potential exists to further expand resources. The focus is to restart the mine and increase scale in a capital-efficient manner. Studies are underway to optimize the crushing circuit and increase daily throughput. The goal is to finalize a mine plan by Q2 2024.

View Sierra Madre Gold & Silver's company profile: https://www.cruxinvestor.com/companies/sierra-madre-gold-silver

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Interview with Glenn Jessome, President & CEO of Silver Tiger Metals Inc.

Our previous interview: https://www.cruxinvestor.com/posts/silver-tiger-metals-tsxv-slvr-how-this-junior-miner-could-become-a-major-silver-producer-4175

Recording date: 3rd November 2023

Silver Tiger Metals (TSX-V:SLVR) is a Canadian silver exploration and development company focused on its El Tigre silver project in Sonora, Mexico. The company recently announced a positive preliminary economic assessment (PEA) for their open pit operation containing 87 million oz silver equivalent at El Tigre with an NPV of US$287M.

CEO Glen Jessome highlighted the simple, low-cost nature of the open pit plan with low strip ratios in the first 4 years. The company plans to continue advancing El Tigre with a pre-feasibility study expected in April 2024. They currently have permits in place for an 800 tpd operation and have applied to amend the permits to match the PEA scenario.

The open pit is just the first phase, with significant exploration upside remaining from the deeper high-grade silver zones which host an additional inferred resource. Silver Tiger Metals sees the cash flow from the open pit funding expansion drilling and development of the larger El Tigre resource.

View Silver Tiger's company profile: https://www.cruxinvestor.com/companies/silver-tiger-metals

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