Company Interviews

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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Interview with Simon Clarke, CEO & Director, and Laurence Stefan, President & COO, of American Lithium Corp.

Our previous interview: https://www.cruxinvestor.com/posts/american-lithium-tsxvli-uranium-buyers-now-paying-close-attention-3818

Recording date: 3rd November 2023

American Lithium (TSXV:LI) is a lithium exploration and development company focused on two major lithium projects, Falchani in Peru and TLC in Nevada. The company's other asset in Peru is the large-scale Macusani uranium project which is one of the largest uranium projects in the world.

The company recently announced a large increase in measured and indicated resources at Falchani lithium project, with an addition of over 5 million tonnes of lithium carbonate equivalent. This establishes Falchani as one of the largest hard rock lithium deposits globally, and the deposit can produce high-purity battery-grade lithium carbonate without the need for further refining.

At the TLC lithium project in Nevada, the company is also considering strategic partners and equity financing options to advance development as the US government is supporting domestic lithium projects to reduce reliance on China. The company is now focused on completing a pre-feasibility study for Falchani by the end of Q1 2024 and attracting mining partners to assist with funding the large capital costs required.

The company believes both projects can be fast-tracked to production within 2-3 years given supportive jurisdictions. This early mover advantage is key in the lithium market. Longer term, the scale of the deposits provides the potential to establish major new lithium production hubs.

View American Lithium's company profile: https://www.cruxinvestor.com/companies/american-lithium

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Interview with Blake Hylands, CEO of Lithium Ionic Corp.

Recording date: 2nd November 2023

Lithium Ionic is a Canadian mining company focused on hard rock lithium projects in the northeastern part of Minas Gerais, Brazil. The company has completed a preliminary economic assessment (PEA) based on 20-year mine life and 20 million tonne resource, targeting feasibility study in Q1 2024, and plans to continue expanding resource and production capacity over time beyond initial 200,000 tpa to 300,000-500,000 tpa.

Positioning itself to be one of the first new hard rock lithium projects in production, Lithium Ionic highlights its experienced team, strong project economics, and strategic location in Brazil as key advantages to delivering on its fast-track development plan. The company plans to advance quickly to production by 2025-2026 along with the large-scale EV revolution which will require reliable lithium supply on upcoming demand surge.

View Lithium Ionic's company profile: https://www.cruxinvestor.com/companies/lithium-ionic-corp

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Interview with CEO Trey Wasser & President Maura Kolb of Dryden Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/dryden-gold-pre-ipo-contact-company-to-take-part-in-listing-3881

Recording date: 1st November 2023

Dryden Gold is a private company raising capital for an IPO on the TSX Venture Exchange. The company has assembled a large, highly prospective land package totaling over 50km of strike length along the Manitou-Norwich deformation zone in Northwestern Ontario. This region has a history of high-grade gold mining dating back to the early 1900s, but has seen limited modern systematic exploration.

Dryden's flagship project is the 20km long Gold Rock Camp, which accounted for 85% of historic gold mining in the region. Mining occurred at very shallow depths, presenting significant exploration potential at depth. Recent geophysics, geochemistry, and mapping work by Dryden has identified numerous high-priority drill targets along the shear zone both within the historic Gold Rock Camp and at step-outs up to 1km away.

The current financing aims to raise $3-5 million, which will fund an initial drill program at Gold Rock and make option payments on various parts of the land package. The phase 1 drill program will test the continuity of high-grade gold veins along strike and to depths below historic drilling, as well as test new geophysics/geochem anomalies. Success would prove up significant expansion potential and open up a 20km long prospective corridor.

Dryden has assembled an impressive shareholder base including major gold miner Alamos Gold and billionaire investor Eric Sprott. The company is led by a team of experienced mining executives and geologists with deep knowledge of the region. Key advantages are the systematically consolidated land package, comprehensive modern geological datasets, and drill targeting based on a robust geological model.

This financing will be done through a subscription receipt offering priced at $0.25. Investors will receive one share and half a warrant at $0.40 valid for 2 years. The raise is open to accredited investors only. Interested parties in Canada can contact their broker or the company directly. Dryden sees strong demand and oversubscription is expected given the high-grade potential. This could prove to be an exciting new Canadian gold exploration story in a proven mining district.

Learn more: https://cruxinvestor.com

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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-why-mitsubishi-corporation-is-betting-big-on-copper-with-marimaca-3954

Recording date: 1st November 2023

Marimaca Copper offers investors scarce exposure to a near-term construction-ready copper project, with permitting and a definitive feasibility study already underway. The company is rapidly advancing its Marimaca project, located in Antofagasta, Chile, aiming for first production in 2026-2027.

Chile's copper mining heartland provides the ideal jurisdiction for Marimaca to bring its maiden mine into production. Major miners like BHP and Anglo American have successfully operated there for years. While rigorous, Chile's permitting process is well-established and transparent.

To fast-track permitting and de-risk development, Marimaca has appointed Chilean engineering firm Ausenco. Their recent experience building the Mina Justa copper mine will be invaluable. Ausenco is also leading the definitive feasibility study, which will optimize the mine plan and processing flowsheet.

Importantly, preliminary studies reveal that Marimaca will be a financially robust project. By focusing only on the highest grade zones, capital intensity has been minimized. All-in-sustaining costs are forecast between $1.75-$2.15/lb, ensuring healthy margins at current and expected copper prices.

Marimaca's straightforward open-pit mining and conventional copper processing also lend themselves to low operating costs. The economics should attract debt financing while limiting equity dilution.

Keen to maintain momentum, Marimaca has front-loaded permitting activities, targeting submission in mid-2023. Approval is expected within 12 months, though further assessments could add up to one year. This timeline aligns first production with a forecast uptick in the copper market.

To oversee this rapid development schedule, Marimaca has recruited Chilean mining veteran Giancarlo Bruno Lagomarsino. As former CEO of Mantos Copper, Runo led the tremendous growth of that company before its merger into Capstone Copper.

Lagomarsino recently managed the development of Mantoverde for Capstone, making him ideally suited to steer Marimaca's transition to production. His connections will also assist in permitting discussions with Chilean regulators.

Marimaca anticipates kicking off detailed engineering and design work in 2024 after completing its definitive feasibility study. An approved EIA and strong economics would pave the way for a final investment decision on full-scale construction from 2025.

The company's strategic partner Mitsubishi Corporation has committed additional capital to fund activities through this period. Marimaca is also engaged in ongoing financing discussions to ensure sufficient resources.

The timing for first output from Marimaca around 2026-2027 is fortuitous, with the project coming online just as forecast copper shortages emerge. Wood Mackenzie predicts new mine supply will struggle to match rising copper consumption after 2025.

The demand picture also looks promising, with copper usage surging in electric vehicles, renewable power, electricity infrastructure and construction. This supports a bullish price outlook as demand growth potentially outpaces new supply.

As one of only a handful of new copper projects globally that can reach production by the late 2020s, Marimaca offers scarcity value. Investors gain unique exposure to a near-term copper producer poised to capitalize on supportive industry fundamentals.

With permitting progressing as planned, Marimaca remains on track to deliver its first copper from Chile's premier mining district within the next five years. The company's rapid execution provides investors with a timely opportunity to gain leveraged exposure to copper's compelling market dynamics.

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

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Interview with Mark Chalmers, President & CEO of Energy Fuels Inc.

Our previous interview: https://www.cruxinvestor.com/posts/energy-fuels-amexuuuu-white-mesa-mill-central-to-us-uranium-recovery-3820

Recording date: 1st November 2023

Energy Fuels Inc (NYSE: UUUU) is a uranium and rare earth elements mining company with assets located in the western United States. The company holds more in-ground vanadium resources than any other US producer, and its White Mesa Mill in Utah is the only fully-licensed and operating conventional uranium mill in the U.S, and with licensed capacity of 8+ million pounds of uranium per year.

Energy Fuels is currently preparing to resume uranium production at its Pinyon Plain Mine and La Sal Complex, which together have an annual licensed capacity of over 1 million pounds of uranium. With the uranium market showing signs of a structural supply deficit as demand grows and supply declines, the company is well-positioned to benefit from higher uranium prices needed to incentivize new mine production. 

The company is building a critical minerals hub and currently recovers uranium, high-purity vanadium, REE, and potentially radium-226. Energy Fuels has produced small quantities of rare earth elements in the past and is looking to significantly ramp up production. Energy Fuels has a strong balance sheet with over $200 million in working capital and is preparing for potential M&A in both the uranium and rare earth sectors. 

View Energy Fuels company profile: https://www.cruxinvestor.com/companies/energy-fuels

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Interview with Simon Wensley, Managing Director & CEO of Metro Mining Ltd.

Recording date: 31st October 2023

Metro Mining (ASX:MMI) is an Australian pure-play bauxite producer focused on growth and expansion. Metro Mining operates the Bauxite Hills Mine in Northern Queensland, Australia which benefits from simple mining and processing, high-grade ore, and proximity to the coast for shipping. The company produced 2.8 million tons of sales in 2021, and 3.5 million in 2022. The company is expanding production capacity to 5 million tons of sales in 2023.

Bauxite is the only ore used to make primary aluminum which is critical for decarbonization efforts across transportation, construction, and renewable energy. Global demand for bauxite is forecast to grow 8% annually over the next decade. The investment case highlights Metro Mining's leverage to forecast strong bauxite demand growth, successful expansion efforts to improve margins, and relatively low risk with much of next year's production and logistics costs locked in.

Upcoming potential catalysts are hitting the 7 million tonne production target in 2024, completing the low capital intensity expansion in 2023, and realizing expanded margins from the larger production scale.

View Metro Mining's company profile: https://www.cruxinvestor.com/companies/metro-mining-limited

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Interview with Dan Wilton, CEO of First Mining Gold Corp

Our previous interview: https://www.cruxinvestor.com/posts/first-mining-gold-tsxff-advanced-major-gold-projects-seeing-increased-interest-3934

Recording date: 31st October 2023

First Mining Gold is raising $5 million through a non-brokered private placement to advance its Springpole and Duparquet gold projects in Ontario and Quebec. The financing will involve issuing up to 40 million units at $0.125 per unit, with each unit consisting of one common share and one-half warrant exercisable at $0.20 for 3 years.

The funds raised will mainly go towards permitting and feasibility work at the company's flagship Springpole project. First Mining is targeting submission of the final Environmental Assessment (EA) to regulators in mid-2024. The EA has already undergone two rounds of regulatory review and First Mining has addressed over 1,800 comments. CEO Dan Wilton believes that once submitted, confidence in Springpole receiving approval will significantly increase.

The focus over the next year will be on finalizing permitting and consultation with Indigenous communities. According to Wilton, the strategy is to get Springpole construction-ready in time to meet the major gold miners' needs for new Tier 1 assets. Many majors are facing declining reserves starting in 2026-2027.

With reserves of 3.8 million ounces of gold at 0.97g/t, Springpole has the large production profile majors are looking for. The 2021 pre-feasibility study outlined an operation producing 335,000 ounces per year over an initial 9 year mine life. Once permitting is secured, bringing in a partner to finance construction would be the next likely steps.

First Mining's second advanced project is the Duparquet Gold Project in Quebec. An updated PEA released in September outlined a combined open pit and underground mine producing 233,000 ounces per year over a 11 year life. At over 3 million ounces of M&I resources, Duparquet's exploration potential is the key upside.

Over the next year, First Mining will focus on exploration drilling to expand resources at Duparquet. Success growing the resource base would further improve project economics.

According to CEO Dan Wilton, First Mining's portfolio of assets gives it flexibility in accessing capital through additional asset sales and partnerships, compared to junior mining peers. Recent deals include the sale of the Goldlund Project to Treasury Metals for $5 million and an agreement with Pelangio Exploration to advance the Birch Lake and Birch Lake West properties.

With majors facing declining reserves, Wilton sees First Mining's advanced multi-million ounce Canadian projects as attractive M&A targets. Key near-term catalysts will be the Springpole permitting outcome and exploration results showing resource growth at Duparquet.

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

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Interview with Trevor Walker, President & CEO of Frontier Lithium (TSX-V: FL)

Our previous interview: https://youtu.be/FOd27g3uwUc

Recording date: 27th October 2023

Frontier Lithium is a Canadian mining company rapidly advancing one of North America's premier hard rock lithium assets towards production - the PAK Lithium Project located in Ontario's Great Lakes region. PAK contains a top 1% global deposit with probable reserves of 22 million tonnes (Mt) at 1.55% Li2O, a 7.2Mt measured and indicated resource at 1.87% Li2O and a 2.8Mt inferred resource at 2.22% Li2O. In a recent video update, President and CEO Trevor Walker outlines Frontier Lithium’s path to production and growing strategic advantages in the lithium space.

Key highlights include Frontier recently completing a positive Pre-Feasibility Study on PAK, demonstrating robust economics for a two-phased spodumene concentrate operation. The PFS showed a post-tax NPV8 of C$1.7 billion and IRR of 24.1% over a 24 year mine life. With the strong PFS results de-risking the project, Frontier Lithium is now focused on completing a Definitive Feasibility Study and securing strategic partners over the next 12-18 months. This will position the company to make a Final Investment Decision on constructing Phase 1 of the PAK concentrator by 2024.

Crucially, Frontier Lithium is fully funded to production with a current cash balance of C$22.3 million and no debt. PAK provides inherent strategic advantages including top-tier grades, scale, existing infrastructure, and location proximal to U.S. electric vehicle supply chains. The project can produce high-quality low-iron spodumene concentrates to capture premium pricing. With construction targeted in the next 2-3 years, Frontier Lithium represents a unique near-term lithium production investment opportunity. As PAK moves down the development timeline, Frontier’s leverage to surging EV demand and lithium prices will come into clearer focus – making it a compelling lithium developer today.

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Learn more: https://cruxinvestor.com/companies/frontier-lithium

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Interview with Dave Lotan, President & CEO of LHI Capital, and Mark Shelby, CEO of Canada Nickel.

Recording date: 27th October 2023

Navigating the Mining Sector for Outsized Gains
Veteran mining investors Mark Selby and David Lotan reveal key insights on profiting from the sector's boom-bust cycles. By targeting the right opportunities at the right time, substantial gains can be achieved.

Focus on Gold, Copper, Battery Metals
Stick to metals with obvious end demand like gold, copper and lithium. When underlying commodity fundamentals improve, these see the most interest. Exotic minerals rarely attract capital inflows.

Identify Likely Acquirers in Advance
Before investing, consider who may eventually acquire the company or project. With limited buyers, this is crucial. For gold, only a handful of majors and mid-tiers can afford over $1 billion in acquisitions. Ensure your target fits their criteria.

Seek Low-Cost Entries in New Discoveries
The best gains come from new discoveries made by junior explorers. Selby targets quality teams that have delivered discoveries before. A $50 million explorer finding major gold could reach $500 million in takeover valuation.

Avoid “Recycled” Assets
Lotan cautions against old assets being repackaged as new discoveries. Focus on fresh finds revealing major potential where little previous work existed. The narrative must justify turnaround.

Target 10x Potential Upside from Current Value
Ideally, the upside should be 10x or greater. A $500 million company finding 100g/t gold does not move the needle much. But a $50 million explorer could rise tremendously on similar success. Pay close attention to the entry point.

Benchmark Against Historical Takeout Values
Use past transactions of similar assets to benchmark potential value. Is the project large enough to interest majors? If few relevant deals exist, acquirers may not pay premium prices.

Monitor Fund Flows as an Indicator
According to Selby, fund flows reveal when capital is returning to miners. It starts with majors, transitions to mid-tier developers, and finally reaches speculative explorers. Position early before hype builds.

Focus on Prospective Investments as Capital Returns
When generalists re-enter mining, they gravitate to low-risk plays first. Lotan notes they prefer assets with resources, infrastructure and scale. These have clearer value drivers. Exploration upside is harder to quantify.

Allow Time for Commodity Cycles to Develop
Capital flows sustain boom cycles, but require patience. The full rotation from bear to bull can take years. Proper timing is critical to maximize gains. Avoid chasing late-stage momentum.

By targeting high-potential opportunities early, being selective on quality, and exercising patience, substantial wealth can be built riding mining's commodity cycles. Pay close attention to capital flows and position ahead of the crowds.

Learn more: https://cruxinvestor.com

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