Company Interviews

Interview with Arturo Préstamo Elizondo, Exectuive Chairman & Interim CEO of Santacruz Silver Mining (TSX-V: SCZ)

Our previous interview: https://youtu.be/uSMBY6VvSwo

Recording date: 4th September 2023

Santacruz Silver focuses on managing, acquiring, exploring, and developing mineral assets across Latin America. In Bolivia, the company operates the Bolivar, Porco, and Caballo Blanco Group, which includes the Tres Amigos, Reserva, and Colquechaquita mines. Additionally, the Soracaya exploration initiative and the San Lucas ore procurement and trading venture are also based in Bolivia. The Zimapan mine is located in Mexico.

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Interview with Frederick Bell, Executive Director & CEO of Elemental Altus Royalties Corp.

Our previous interview: https://www.cruxinvestor.com/posts/elemental-altus-royalties-tsxvele-rapid-growth-expanding-portfolio-overview-3717

Recording date: 14th September 2023

Elemental Altus Royalties is a growth-oriented precious metals royalty company focused on generating shareholder value through strategic acquisitions and asset generation. With a portfolio of 10 producing royalties and a strong pipeline of pre-production and discovery stage assets, Elemental Altus offers investors exposure to a diversified mix of royalty revenue today and significant upside potential for the future.

The Vancouver-based company actively acquires uncapped royalties on producing and near-producing mines operated by established operators. This provides shareholders with lower risk exposure compared to traditional mining investments. Elemental Altus also originates new royalties by funding exploration on projects generating royalties on any future discoveries. This unique business model provides upside optionality without ongoing expenditures. Led by an experienced management team, Elemental Altus is poised to continue expanding its portfolio of revenue-generating royalties across a range of commodities and mining jurisdictions.

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View Elemental Altus's Company Profile: https://www.cruxinvestor.com/companies/elemental-altus-royalties

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Interview with Alan Carter, President & CEO of Cabral Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-5m-funds-pfs-improves-build-out-timeframe-3315

Recording date: 14th September 2023

Cabral Gold is advancing the Cuiú Cuiú gold project in northern Brazil, with the aim of bringing low-cost oxide gold production online rapidly. In a recent interview, President and CEO Alan Carter outlined plans to complete a pre-feasibility study on the oxide cap by January 2023 and potentially start construction by Q2 2023.

With approximately $7 million in the bank, Cabral is funded to complete the pre-feasibility study on the oxide zone. This oxidized material sits above the primary gold resource and contains over 60 meters of free-digging material that can be processed via simple heap leach methods. By focusing first on the oxide cap, Cabral aims to generate early cash flow with low initial capex requirements.

The larger Cuiú Cuiú project contains 1.2 million ounces of indicated and inferred hard rock gold resources. However, developing the full potential of the project will require substantially more capital investment. Targeting the oxide zone first is a lower-risk, faster route to production and revenue within 12-18 months.

Cuiú Cuiú is located next to G Mining’s large-scale gold project, which recently commenced construction. G Mining’s development has improved infrastructure in the region and heightened attention on the district's potential. During historical gold rushes, streams on G Mining's land produced 200,000 ounces, while 2 million ounces were mined from Cabral's project area.

With a current market cap around $25 million and approximately 15 million ounces in enterprise value per ounce, Cabral believes it is deeply undervalued. The company is engaged in project financing discussions to fund construction of the starter oxide mine, which requires relatively modest capital expenditure given the simple process flow sheet.

Advancing the oxide zone provides a clear pathway to near-term cash flow for Cabral. It also de-risks future development of the full Cuiú Cuiú project and its multi-million ounce potential. For investors, the company offers speculative exposure to high-grade gold development in a proven region of Brazil.
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Interview with Victor Cantore, President & CEO of Amex Exploration Inc.

Our previous interview: https://www.cruxinvestor.com/posts/amex-exploration-amx-5-rigs-turning-at-perron-gold-results-follow-2757

Recording date: 14th September 2023

Amex Exploration is a Canadian junior gold exploration company focused on its high-grade Perron gold project located in northwestern Quebec. In this interview at the 2023 Beaver Creek Precious Metals Summit, Amex President and CEO Victor Cantore provides an update on the company's exploration progress and development plans.

Cantore states that Amex has a full schedule of meetings at Beaver Creek, including retail investors, institutions, funds and strategics. This indicates significant interest in the story as the company advances both exploration and early-stage development work. According to Cantore, Amex recently added a mining engineer, resource geologist and environmental specialist to the team to advance Perron towards maiden resource estimation and a Preliminary Economic Assessment (PEA) in 2023. The exploration team remains fully intact with plans to continue drilling to expand resources and make new discoveries.

Regarding the impact of recent forest fires near the Perron project, Cantore confirms there were no injuries or significant damage. The fires did cause a 7-week delay in drilling, but will also open up new areas for exploration via 65km of new roads being built in the region. Amex still has 5 drill rigs operating focused on infill drilling for the resource and exploration step-outs to expand mineralization.

As of June 30, Amex had C$12.4 million in cash plus another C$4.4 million in flow-through funds to be spent by year-end. This is sufficient to fund continued exploration and development work into 2023. Cantore states Amex can control the burn rate and slow drilling if needed, but there are no immediate financing plans. The company will look to raise opportunistically at better valuations in the future.

Regarding the high-grade gold mineralization, Cantore emphasizes the impressive continuity of the high-grade zones which lends itself well to potential underground mining scenarios. The development team will assess various mining methods and economics to maximize returns in the maiden resource and PEA.

The key members of the development team are mining engineer Steven Cooke, Jonathan Gagne who worked on the Greenstone project, geologist Richard Pierre who worked on the Cisco project, and permitting specialist Jacqueline Leroy who worked on the Elder mine. This experienced team will provide crucial inputs for maximizing the value of Perron's high-grade gold mineralization.

Despite weak equity markets, Cantore remains positive on the gold price long term. He believes high interest rates are cyclical and will eventually decline, which should spur a renewed gold bull market. In the interim, Amex is fully funded to continue delivering results from its dual exploration-development strategy focused on advancing the exciting high-grade Perron project.

In summary, Amex Exploration is actively exploring and de-risking its Perron gold project in Quebec to build shareholder value. The experienced management team is executing a clear strategy by drilling to expand resources, while advancing engineering and economic studies to demonstrate a path towards gold production. With a tight share structure and strong institutional support, Amex Exploration warrants consideration as an emerging producer in a top-tier mining jurisdiction.

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Interview with Marc-Andre Pelletier, President & CEO of Bonterra Resources

Our previous interview: https://www.cruxinvestor.com/posts/bonterra-resources-btr-junior-gold-explorer-in-quebecs-urban-barry-camp-3237

Recording date: 14th September 2023

In a recent interview at the Beaver Creek conference, Bonterra Resources CEO Marc-Andre Pelletier outlined plans to advance the company's Urban Barry gold projects in Quebec. With over 3 million ounces of resources and significant infrastructure already in place, Bonterra sees an opportunity to expand resources and attract a strategic partner.

Pelletier brings over 25 years of hands-on mining experience to Bonterra, having worked on projects across Canada. When he joined Bonterra last year, Pelletier saw the potential to add value by restarting production. The company pursued plans to resume mining at its Barry deposit, completing a PEA and starting a PFS. However, with operating costs escalating 50-100% in the Abitibi region, Bonterra put those plans on hold as they were no longer economically feasible.

Instead, Bonterra has focused on cutting costs, generating revenue by processing old mill tailings, and preparing for a new 13,000 meter drill program. Cleaning up the mill recovered over 600 ounces of gold worth C$1.6 million, providing funds for operations. The drill program aims to expand current resources at depth, follow up on past drill results that lacked follow-up, and test some "wildcat" targets identified through geophysics and geology.

With gold prices around $1,950/oz, Pelletier believes Bonterra's market valuation around C$25 million significantly undervalues its 3 million ounces of resources. He highlights the opportunity for new investors to acquire shares at current lows before the market turns. To better position Bonterra, Pelletier is also looking at strategic partnerships, joint ventures, or other transactions to increase resources towards a potential 6-10 million ounces and unlock more value.

Located in Quebec's Urban Barry camp neighboring zones where Osisko Mining and Cisco Mining recently acquired projects, Bonterra is surrounded by major miners and appealing assets. Its mill, tailings facility, mining leases, and proven resources provide a solid foundation. Drilling offers resource expansion potential, while strategic opportunities could strengthen its position during a tough market. For investors willing to weather volatile markets, Bonterra represents a speculative buy with substantial upside if gold prices rebound.
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Interview with George Bee, President & CEO of US Gold Corp

Recording date: 14th September 2023

US Gold Corp is advancing the CK Gold Project towards production in southeast Wyoming. In this interview at the 2023 Beaver Creek Precious Metals Summit, CEO George Bee provides an update on the progress and next steps for the project.

Three years ago, US Gold pivoted from pure exploration to project development, focusing efforts on the CK Gold Project. CK Gold will be a shovel-ready project with an 8-year initial mine life producing 100,000 ounces of gold equivalent per year. The CEO states the project has robust economics even with inflation, maintaining an $800 per oz AISC based on $1625/oz gold and $3.25/lb copper.

The company has been prudent with expenditures, recently raising $5 million to fund critical work. This includes finalizing permits and feasibility study ahead of project financing. Permitting through the state of Wyoming is at an advanced stage and will be a key derisking milestone. The feasibility study engineering is complete, with final equipment pricing needed to finish the report.

US Gold believes CK Gold requires around $250 million in initial capital to construct. While not large enough to attract majors, it can appeal to mid-tier miners looking to add production in a stable jurisdiction like Wyoming. The company is also exploring creative financing options like equipment leasing and state subsidies to minimize equity needs.

The CEO explains how three years ago the company was spread thin trying to explore multiple early-stage assets. By focusing efforts on CK Gold, they have been able to systematically derisk the project while conserving cash. The company still has prospective exploration ground in Nevada and Idaho that can be revisited when markets improve.

Given weak market conditions, the company is currently undervalued trading around a $35 million market cap. However, the CEO stresses they are in a comfortable position financially and don't need to raise capital at depressed valuations. With permit approval and feasibility study imminent, CK Gold is poised to attract project financing to start construction when ready.

US Gold Corp has leveraged its technical experience to advance CK Gold towards near-term production. The Project demonstrates robust economics even at today's inflationary costs. With permitting and feasibility study on the horizon, CK Gold is advancing rapidly towards a construction decision. The company remains well-funded through this critical phase, and with additional exploration upside, US Gold warrants a closer look by investors seeking emerging US gold production stories.

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Interview with Kevin Bullock, President & CEO of Signal Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/signal-gold-sgnl-expands-goldboro-district-through-aggressive-drilling-financing-pursuit-3242

Recording date: 13th September 2023

Signal Gold Inc. (TSX: SGNL) is focused on advancing exploration and development of its 100% owned Goldboro gold project located in the Canadian province of Nova Scotia. Goldboro hosts a high-grade gold resource amenable to open pit and underground mining, with strong potential for expansion.

The Goldboro gold project covers approximately 200 square kilometers in the emerging gold mining district of eastern Nova Scotia. The project is located just 185 kilometers northeast of Halifax, providing easy access to skilled labor, supplies and infrastructure.

Nova Scotia is considered a top-tier mining jurisdiction, with a stable political environment and straightforward permitting process. The provincial government is supportive of new mine development, highlighting the benefits for job creation and economic growth.

Goldboro hosts an estimated gold resource of 3 million ounces grading approximately 11 g/t. This places it amongst the highest grade undeveloped gold projects in Canada. Over 90% of the resource is in the measured and indicated category.

An NI 43-101 compliant feasibility study outlines production of 100,000 ounces per year over a 7 year mine life from the defined reserves. However, Signal Gold sees strong potential to expand well beyond this through additional exploration and mine optimization.

Recent exploration drilling by Signal Gold has intersected high-grade mineralization extending hundreds of meters outside the current pit shells. This points to the potential delineation of a third open pit, which could substantially increase the tonnage and annual gold production over the feasibility study life of mine.

The deposit also contains an underground inferred resource, which has not yet been incorporated into development plans. Upgrading a portion of this to measured and indicated through additional drilling could allow Signal Gold to add an underground mining component alongside the open pits.

Over the past year, Signal Gold has expanded its land position around Goldboro from 20 sq km to over 200 sq km. This has increased the strike length of known mineralization from 3 km to more than 40 km. Further exploration along this trend offers significant potential for new near-surface discoveries.

With Goldboro’s robust economics and exploration upside, Signal Gold is engaged in discussions with potential strategic partners to advance the project. The aim is to attract the right partner to help optimize the asset while preserving upside potential for shareholders.

A joint venture or partial project acquisition could provide capital for further optimization work and construction. This would leave shareholders with exposure to a de-risked project on the path to near-term production in a premier mining jurisdiction.
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Interview with Segun Lawson, CEO of Thor Explorations Ltd (LSE:THX)

Our previous interview: https://www.cruxinvestor.com/posts/thor-explorations-thx-value-all-round-production-exploration-and-income-3005

Recording date: 13th September 2023

Thor Explorations is an emerging senior gold producer focused on acquiring, exploring, and developing gold projects located in West Africa. With an operating mine generating cash flow in Nigeria, a large-scale development project advancing in Senegal, and early-stage lithium exploration underway in Nigeria, Thor is leveraging its operational expertise and strategic relationships to unlock the vast mineral wealth across the region.

Thor's flagship asset is the high-grade Segilola open pit gold mine, located in the prolific Osun Gold Belt in southwestern Nigeria. Having commenced production in 2021, Segilola forms the cornerstone asset in Thor's portfolio, producing 43,000 ounces of gold in the first half of 2022.

With mining transitioning into higher grade zones, Thor has revised full year 2022 production guidance to a sustainable 85,000 ounces. The long-term goal is to leverage Segilola's central processing infrastructure to consolidate regional resources, extending mine life beyond the current 12-year outlook.

Systematic exploration efforts targeting satellite deposits within trucking distance of the Segilola mill have delivered promising results. Thor is also assessing opportunities to acquire advanced projects from junior explorers to bolster growth.

The most significant near-term growth driver is Thor's Douta Gold Project in southeastern Senegal's highly productive Kéniéba Inlier gold belt. With already defined resources of 1.78 million ounces of gold, Douta offers Thor scale potential in a jurisdiction with an established history of gold mining operations.

Following a recently completed 15,000-meter drilling campaign aimed at upgrading resources and expanding mineralization, Thor is completing a feasibility study positioning Douta to become its second operating mine. With estimated average annual production above 100,000 ounces, Douta could potentially double Thor's total gold output over the next few years.

Leveraging its first-mover advantage and strong government relationships in Nigeria, Thor has also acquired an extensive portfolio of high-grade lithium pegmatite occurrences exhibiting strong continuity in surface outcrops and shallow drilling intercepts.

Through a separate corporate entity, Thor has commenced a 5,000-meter maiden drilling program to delineate resources on its core targets. With lithium demand forecast to grow exponentially to support electric vehicle and battery markets, successful exploration could position Thor to capitalize on surging lithium prices.

Thor Explorations is led by a board and management team with decades of experience successfully exploring, developing, and operating mines across Africa. Having already built Segilola on time and budget, this seasoned team is focused on delivering value for shareholders by executing on a clear growth strategy for its asset portfolio.

Trading at an attractive valuation relative to peers, and with a fully funded plan to substantially grow production, Thor offers investors an opportunity to gain exposure to high-upside gold and lithium assets in mining-friendly African jurisdictions. As Thor systematically unlocks value across its portfolio, shares in the company offer an appealing risk/reward proposition.
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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-permit-approval-for-high-grade-drilling-3284

Recording date: 13th September 2023

Lima, Peru - Chakana Copper Corp. (TSXV:PERU) is rapidly advancing its flagship Soledad project, a high-grade gold-copper-silver discovery located in the prolific Ancash mining province of central Peru. Strategically positioned 35km south of Barrick’s Pierina mine, Soledad hosts near surface mineralization amenable to low-cost open pit mining.

A maiden resource estimate outlines 109,000 ounces of gold equivalent grading 8.8 g/t AuEq within 650,000 tonnes starting at surface. This initial resource is based on shallow drilling at just seven breccia pipes within a 2km by 1km area, representing only 28% of the targets identified to date. Significant exploration upside remains to substantially expand resources by additional drilling at depth and testing new breccia pipes identified across the property.

In 2019 Gold Fields Limited (NYSE:GFI) recognized this potential by investing $12 million into Chakana through a strategic partnership agreement. Gold Fields currently owns a 15% interest in Soledad. Their extensive due diligence validated the potential to delineate a much larger high-grade gold system.

Chakana is now fully permitted to drill across the entire breccia pipe field and test additional compelling targets, most notably the Paloma porphyry target. Measuring 2.5km by 1km, Paloma exhibits a strong geophysical and geochemical signature typical of a mineralized porphyry system. The top of this anomaly starts approximately 125m below surface and provides a readily drillable target.

A 4,000m drill campaign is planned for early 2023, with nine holes dedicated to testing the core of the Paloma porphyry target. Additional drilling will expand the high-grade resources around known breccia pipes. This drill program is designed to significantly increase resources and test the project’s tier-one discovery potential as endorsed by strategic partner Gold Fields.

Renewed political stability in Peru is enticing mining investment back to the country following a volatile period since 2020. Major mining companies are now advancing multi-billion dollar projects, including the $5.3 billion Quellaveco copper mine under development by Rio Tinto and First Quantum. This reinforces Peru’s status as a premier global copper producer and stable mining jurisdiction.

Chakana is currently completing a capital raise to fund its planned 2023 drill program. Strategic partner Gold Fields has signaled their support to follow their investment with additional funding. Drilling is expected to start in early 2023 once financing is secured.

The current depressed market environment provides an opportunity for investors to gain exposure ahead of extensive exploration news flow in the coming year. Chakana offers leverage to high-impact drilling in Peru’s prolific mineral belts through a tight share structure and promising gold-copper project adjacent to multiple major mines.

A significant discovery at the Paloma porphyry target would be transformational for Chakana, transitioning the project to a district-scale opportunity. Prospective investors can position themselves ahead of this potential value-creating event. With drilling slated to start shortly, a clear path to demonstrate the Soledad project’s world-class potential is expected over the coming year.
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View Chakana Copper's Company Profile: https://www.cruxinvestor.com/companies/chakana-copper

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Interview with Jamie Levy, President & CEO of Generation Mining Ltd

Our previous interview: https://www.cruxinvestor.com/posts/generation-mining-genm-talks-20m-draw-down-future-equity-needs-2642

Recording date: 13th September 2023

Generation Mining is on the cusp of transitioning its Marathon palladium-copper project in Ontario, Canada from development to construction. With major milestones upcoming over the next 6-12 months, Generation Mining represents an appealing investment opportunity with near-term re-rating potential.

The Marathon deposit contains a global-scale palladium resource, with reserves of over 7 million ounces palladium and 1.1 million ounces platinum. At full production, it is expected to produce 120,000 oz palladium and 30 million lbs copper per year over a 13-year mine life.

Importantly, Marathon is projected to be a low-cost producer, with all-in sustaining costs of just $814/oz palladium equivalent. This provides resilience even if palladium prices retreat from current levels near $1,300/oz.

Generation Mining has made great strides to de-risk execution risk and minimize capital requirements. $640 million of project financing is already in place, including a palladium stream and debt facility. The company has also completed extensive geotechnical drilling and engineering work.

With these accomplishments, Marathon is on a clear fast-track to production. Major catalysts over the next 6-12 months include:

- Finalizing remaining permits
- Securing additional funding
- Awarding the lead construction contract
- Starting early infrastructure construction works
- Making a full construction decision
- Achieving these milestones would significantly upgrade Marathon's investment case. The start of on-site construction activities in particular would be a major re-rating event.

The company estimates it needs another $200-300 million to fully fund construction. While challenging markets have delayed the raising of this equity financing, the funding gap is manageable given Marathon's scale.

Marathon's robust economics indicate the potential for strong upside at the current share price around CAD$0.80. At base case assumptions, the after-tax NPV is $1.07 billion. The IRR is an impressive 30%.

Further, these economics are based on a palladium price of just US$1,725/oz – nearly $500/oz below the current spot price. There is substantial leverage to any strengthening of palladium prices back towards 2022 highs above $3,000/oz.

Beyond the flagship Marathon project, Generation Mining's property package covers a massive 80-km mineralized palladium-copper belt. This points to potential for mine life extensions or future discoveries that could further improve value.

With construction in sight, Generation Mining offers investors an intriguing opportunity to position for substantial near-term growth. The experienced management team is strongly aligned with shareholders to rapidly advance Marathon and realize its full potential.

For investors seeking leveraged palladium exposure combined with near-term value catalysts, Generation Mining ticks all the boxes. The current valuation continues to provide an attractive discount ahead of pivotal project milestones expected over the coming months.

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View Generation Mining's Company Profile: https://www.cruxinvestor.com/companies/generation-mining

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