Company Interviews

Interview with Terry Lynch, CEO of Power Nickel (TSX-V: PNPN)

Recording date: 12th September 2023
 
Power Nickel is a Canadian junior exploration company focused on developing its flagship Nisk nickel project in Quebec into Canada's first carbon-neutral nickel mine.

Terry Lynch, CEO of Power Nickel (TSXV:PNPN), discusses the company's high-grade NISK nickel-copper-cobalt project in Quebec. An updated NI 43-101 resource estimate is expected by end of October, which will likely outline 8-10 million tons at 1.5% nickel equivalent. This initial resource from just one mineralized zone should be sufficient to support a commercial mining operation.

NISK has an existing historical resource of 3.1 million tons at 1.6% nickel. Power Nickel has now drilled over 177,000 meters and hit nickel grades above 1% in the majority of holes. Highlights include a recent 300 meter step-out hole that intersected 25 meters of massive and semi-massive sulfides. The deposit remains open and Power Nickel is confident in rapidly expanding the resource along identified mineralized trends.

The goal is to demonstrate sufficient scale at NISK to achieve a sizable revaluation of the company. Comparable nickel projects are currently valued around $400M for ~15M tons of resources. At 8-10M tons, NISK could potentially support a $150-200M valuation. Power Nickel recently secured a $7.5M investment from materials processor CVMR to complete a feasibility study and refine nickel end-products.

In addition to expanding NISK, Power Nickel plans to test several other target areas identified nearby. The potential exists to delineate over 30M tons through systematic exploration of the ultramafic intrusion. Early drilling has also revealed promising platinum group metal intercepts that could provide added value.

With high grades, excellent infrastructure and supportive stakeholders, NISK can be an economically robust mine even at lower nickel prices. The project is well positioned to capitalize on the pending supply shortages in the battery metals sector. Advancing the resource estimate and feasibility study over the next 6-9 months will be key catalysts for Power Nickel.

Interview with Claudia Tornquist, President & CEO of Kodiak Copper (TSX-V:KDK)

Recording date: 12th September 2023

Kodiak Copper is a Canadian mineral exploration company focused on copper porphyry projects in Canada and the United States. The company's flagship asset is the MPD copper-gold porphyry project in south-central British Columbia, which shows potential to host a large-scale deposit. MPD has high-grade mineralization within a wide mineralized envelope and several other untested exploration targets.

Claudia Tornquist, CEO of Kodiak Copper (TSXV:KDK), discusses the company's large-scale exploration program underway at the MPD copper-gold project in southern British Columbia. Unlike previous years focused solely on the high-grade Gate Zone discovery, Kodiak is now systematically testing multiple targets across the 14 km2 property. The goal is to delineate the next big discovery and build significant scale through a methodical exploration approach.

Kodiak has an extensive database of over 50,000 meters of historic, shallow drilling at MPD. The Gate Zone was discovered by drilling deeper below this historic drilling, uncovering high-grade copper-gold mineralization missed near surface. Several large geophysical and geochemical targets have now been identified across the property, presenting an opportunity to replicate this exploration model.

Up to 25,000 meters of drilling is planned for 2023, targeting at least 5 zones. Early results at the West Zone returned long intercepts of 500+ meters grading 0.2-0.4% copper equivalent, including high-grade zones. New copper-gold mineralization was discovered at depth, and importantly, mineralized breccia zones were intersected – indicating proximity to a copper-gold source. Assay results will steadily flow through year-end and into early 2024.

While additional high-grade discoveries are the ultimate goal, Kodiak is also keen to demonstrate scale potential. Lower grade intercepts of 0.2-0.4% copper equivalent help build critical mass. The project is situated in an established mining region, where comparables like Copper Mountain mine lower grades of ~0.23% copper at large scale. Infrastructure, access and skilled local workforce provide low operating costs that support development of MPD's sizeable resource base.

Significant drill results and increasing project scale will aim to attract interest from major mining companies. An intermediate resource target is approximately 10 billion pounds of copper, which requires additional discoveries and resource growth beyond the Gate Zone. Kodiak maintains a strong partnership with Teck Resources, its largest shareholder with 19.9% interest. Teck is supportive of Kodiak's copper-focused exploration strategy in BC.

In summary, Kodiak Copper is advancing a systematic, multi-target exploration program to build on its initial high-grade discovery at MPD and outline the project’s meaningful scale potential. Assay results from the extensive 2023 drill campaign will act as key catalysts in the year ahead.

Interview with Louis-Pierre Gignac, President & CEO of G Mining Ventures (TSX-V: GMIN)

Recording date: 12th September 2023

Louis-Pierre Gignac, CEO of G Mining Ventures (TSXV:GMIN), discusses development progress at the company's Tocantinzinho gold project in Brazil. One year after making a construction decision, the project is now approximately 50% complete and on track to commence production in H2 2023 – an exceptionally fast timeline.

Tocantinzinho benefits from a significant amount of permitting and technical work completed by prior owners. G Mining has optimized the project layout and flowsheet through a detailed feasibility study to maximize economics and expedite development. US$458M in project financing was secured in a competitive process, providing a clear path to production.

Major early works programs were initiated to mitigate schedule risk, including ordering long-lead items like the SAG mill. Locking in the power contract and major equipment also insulates against cost inflation. Project capex remains in-line with feasibility study estimates. Some input cost inflation has occurred, but will be partially offset by higher gold prices.

An experienced build team has rapidly advanced detailed engineering to around 90% complete. 50% of total direct hours have been worked on site lost-time-injury free. Major procurements are complete, earthworks are progressing on schedule, and critical infrastructure is taking shape.

At feasibility parameters, Tocantinzinho is expected to produce 175,000 ounces per year over a 10.5 year mine life, at low all-in sustaining costs of $700-750/oz. There is exploration potential to expand resources along strike and at depth. The project has robust economics at current gold prices, and G Mining’s execution capabilities significantly reduce development risks.

With construction well underway, G Mining offers leverage to a re-rating as Tocantinzinho transitions to production. Comparable gold developers typically trade at higher EV/Resource multiples than G Mining. As project risks are removed, G Mining expects its valuation gap to close.

The company aims to utilize its specialized development skills to acquire and construct additional gold projects. Americas-based assets with technical issues or expansion potential are well-suited. G Mining has proven it can effectively navigate new jurisdictions like Brazil. The goal is to have a second project in feasibility or construction by 2025 to build a multi-asset, mid-tier producer.

In summary, G Mining Ventures is rapidly building the Tocantinzinho gold mine on time and budget to achieve near-term production. The company offers a compelling value proposition as it systematically executes on its strategy and develops into a profitable gold miner.

Nickel had another test of $20,000 and once again it held up and trading in the lower end of range of $20-$22,000 range where it has been sitting since early June. Again, have been expecting several month break below this range but this has yet to happen – trend technically squeezing against this support level and with now seeing some LME inflows (still not much 1,000 tonnes) may finally go through in the next few weeks.

Have seen continued improvements in ore and NPI prices driven by combination of a couple of factors:

Korea trip again interesting. Key piece is how much nickel they will need – just
one of the players at one stage - and there are multiple players at each step (precursor-cathode-battery) will need more nickel.

Indonesia talking about a free trade agreement with the US (make it IRA-eligible) – may see something limited, but Chinese control of most assets would defeat the whole purpose of the IRA to get China out of critical material supply chains.

Nickel Institute published clarification around CBAM in Europe (Carbon Border Adjustment Mechanism) – this is a mechanism which will eventually create a premium for lower carbon products (like Canada Nickel will be producing from Crawford).

From 1st October 2023, FeNi and NPI producers will have to measure the carbon footprint of their products according to the requirements defined in the Annexes of the CBAM Implementation Regulation.

From end of January 2024 onwards, data on the carbon footprint must be reported via a template submitted to the CBAM Portal.

From 2026 onwards, companies importing FeNi and/or NPI will have to purchase CBAM certificates to compensate for the carbon footprint of the imported goods. The amount of certificates that FeNi and NPI importers have to purchase will be gradually increased. In 2026, certificates for only 2.5% of the total carbon footprint of a product have to be surrendered. This will gradually be increased until 2034, when 100% of the carbon footprint has to be covered.

FPX announced solid PFS results – key drivers are low strip ratio below 1, simple process plant driven by magnetic separation, ability to sell awaruite directly to market -

At Canada Nickel, very keen to see this PFS – our Midlothian deposit looks like maybe a primary
awaruite deposit.

Dreadnought – the interesting early stage where First Quantum earning into 51%. Mineralization (no assays) from 14-27 metres wide relatively shallow.

Interview with David Cates, President & CEO of Dension Mines

Our previous interview: https://www.cruxinvestor.com/posts/denison-mines-dml-u-isr-leaders-in-saskatchewan-feasibility-mid-year

Recording date: 8th September 2023

Denison operates primarily in the uranium exploration and development sector, concentrating its efforts in the Athabasca Basin area located in northern Saskatchewan, Canada. The firm holds a substantial 95% stake in the Wheeler River Uranium Project, renowned as the foremost undeveloped uranium project in the infrastructure-abundant eastern part of the Athabasca Basin.

In addition to this, Denison possesses a 22.5% share in the McClean Lake joint venture (MLJV), encompassing several uranium deposits and the operational McClean Lake uranium mill, which is designated to process ore from the Cigar Lake mine based on a toll milling agreement. The company also retains interests in the Midwest Main and Midwest A deposits, standing at 25.17%, and has a majority 67.41% stake in the Tthe Heldeth Túé (THT, previously referred to as J Zone) and Huskie deposits situated in the Waterbury Lake property. Noteworthy is the fact that these deposits are strategically positioned within a 20-kilometer radius of the McClean Lake mill.

Expanding its reach through a 50% ownership of JCU, Denison maintains a strong presence in several other uranium project partnerships in Canada. These include holding a 30.099% interest in the Millennium project, a 33.8118% stake in the Kiggavik project, and a 34.4508% share in the Christie Lake project. Furthermore, Denison is continuously exploring opportunities with an extensive portfolio that encompasses interests in territories spanning approximately 300,000 hectares in the prominent Athabasca Basin region.

View Denison Mines' Company Profile: https://www.cruxinvestor.com/companies/denison-mines-corp

Interview with John Cash, President & CEO of UR-Energy Inc.

Our previous interview: https://www.cruxinvestor.com/posts/uranium-producer-ramping-up-production-in-wyoming

Recording date: 7th September 2023

Ur-Energy's expansive holdings in Wyoming span a remarkable 48,000 acres of mineral property rights, hosting the esteemed Lost Creek Property in the Great Divide Basin and the Shirley Basin Project. The Lost Creek facility has been a stalwart in promoting clean energy, having spearheaded uranium production since 2013 boasting a production of approximately 2.7 million pounds of U3O8 since its establishment.

A significant milestone was achieved in 2021 when Lost Creek successfully amended its license, thereby expanding its operational scope to include the existing Lost Creek Project and the neighboring LC East Project. This pivotal move sets the stage for an increased annual production limit of 2.2 million pounds of U3O8, which encompasses a wellfield production of up to 1.2 million pounds and toll processing capabilities of up to one million pounds of U3O8. Anticipation builds as 2023 approaches, a year earmarked for securing additional approvals for this burgeoning expansion.

In Ur-Energy's pipeline is the forthcoming launch of its second in-situ recovery facility, the Shirley Basin Project, which stands ready for construction, fortified with all necessary authorizations.

The Shirley Basin Project stands on the cusp of inauguration, holding all the major permits and licenses required to commence construction, signaling the onset of a new epoch in sustainable uranium production.

View UR-Energy's Company Profile: https://www.cruxinvestor.com/companies/ur-energy-inc

Interview with James Sykes, President & CEO of Baselode Energy Corp 

Our previous interview: https://www.cruxinvestor.com/posts/baselode-energy-find-focusing-on-promising-ackio-project-3247

Recording date: 8th September 2023

Baselode Energy, a mineral exploration entity, is on a mission to uncover substantial uranium deposits in the northern Saskatchewan's Athabasca Basin region in Canada. Holding sway over an expansive 207,000-hectare basin ripe for exploration, the company stands as a significant player in the region.

At the heart of Baselode's operations is the Hook project, distinguished for its abundant zones teeming with high-grade uranium mineralization both near the surface and deeper areas, spanning a robust 5 km structure. The recent drilling undertakings at Hook have revealed substantial uranium mineralization, reaching peaks of 63.6% U3O8 over a 0.5-metre span, showcasing the potent expansion possibilities both along the strike and deeper down.

Further solidifying its presence, the company fully owns the Shadow and Catharsis projects, strategically situated near renowned uranium mines in the eastern wing of the Athabasca Basin. These projects carry a history of significant uranium explorations, opening avenues for promising subsequent explorations. Baselode leverages contemporary exploration methodologies to foster the growth and development of these valuable assets.

View Baselode Energy's Company Profile: https://www.cruxinvestor.com/companies/baselode-energy

Interview with Keith Bowes, MD of Lotus Resources (ASX:LOT)

Our previous interview: https://www.cruxinvestor.com/posts/lotus-resources-doubles-down-on-african-uranium-with-strategic-botswana-acquisition

Recording date: 8th September 2023

Lotus Resources Limited, publicly traded on the Australian Stock Exchange (ASX: LOT) and also accessible through OTCQB under the ticker LTSRF, holds a significant 85% share in the Kayelekera Uranium Project situated in Malawi, Africa. 

Currently in a care and maintenance phase, Kayelekera boasts a rich history of production, having previously generated roughly 11 million pounds of uranium. Despite its past productivity, the project was halted due to a period of prolonged low uranium prices.

In August 2022, Lotus Resources unveiled the findings of its Re-Start Definitive Feasibility Study (DFS) for Kayelekera. The study shed a positive light on the project’s future, underscoring its position as one of the most economically viable uranium ventures on a global scale with a relatively low capital expenditure requirement of US$88 million. Moreover, the DFS indicated the promising potential for the rapid resumption of operations, estimating a 15-month timeframe for the necessary construction and refurbishment works post the Final Investment Decision (FID). This places Kayelekera in a favorable position to quickly react to favorable shifts in the market, representing a significant step towards Lotus Resources' goal to reboot operations at a pivotal asset in their portfolio.

View Lotus Resouces' Profile: https://www.cruxinvestor.com/companies/lotus-resources-limited

Interview with Rupert Verco, CEO & MD of Cobra Resources PLC

Recording date: 8th September 2023

Cobra Resources is actively delineating a distinctive multi-mineral resource at its Wudinna Project situated in the renowned Gawler Craton of South Australia, a premier tier-one mining and exploration jurisdiction home to several world-class mines. Spanning a substantial area of 3,261 km², the Wudinna tenements showcase orogenic gold mineralization, characterized by potentially open-pit mineable, high-grade gold intersections, all situated with the convenience of ready access to essential infrastructure.

Beyond the confines of the 211,000 Oz JORC Mineral Resource Estimate, the company has identified an additional 22 orogenic gold targets, leveraging a solid foundation for further exploration and development. 2021 marked a significant milestone for Cobra Resources as it unearthed rare earth mineralization in close proximity and above the gold deposits, a finding substantiated to be scalable on a regional level. Building on this success, 2023 saw the publication of a maiden rare earth JORC Mineral Resource Estimate, which reported 20.9 Mt at 658 ppm Total Rare Earth Oxides, laying a strategic groundwork to foster an economically advantageous amalgamation of gold and rare earth resources.

Complementing the endeavors at the Wudinna Project, Cobra Resources is fostering growth through its nascent copper exploration initiative, the Prince Alfred Project, also nestled in South Australia. 

View Cobra Resources' Company Profile: https://www.cruxinvestor.com/companies/cobra-resources

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Interview with Alan Pangbourne, President & CEO of Chesapeake Gold Corp (TSXV:CKG)

Our previous interview: https://www.cruxinvestor.com/posts/ch...

Recording date: 8th September 2023

With over 25 years of experience, Chesapeake's management team has a proven track record of success in the Americas. Their expertise lies in identifying promising geological locations, generating high-quality projects, and financing exploration and development. This strategic vision led to the grassroots discoveries of the multimillion-ounce El Sauzal and Marlin gold deposits, which became highly profitable mines.

Through the recent acquisition of Alderley Gold Corp., Chesapeake is now focused on advancing the world-class Metates project. By utilizing sulfide heap leach technology, they aim to bring this deposit into production.

View our Chesapeake Gold Corp Profile: https://www.cruxinvestor.com/companie...