Company Interviews

Interview with Justin Black, CMO, and Jean-Paul Tsotsos, Interim CEO of Chesapeake Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/chesapeake-gold-tsxvckg-innovative-technology-new-gold-ounces-5163

Recording date: 7th April 2025

Chesapeake Gold has developed a groundbreaking oxidation technology that could revolutionize how refractory gold deposits are mined globally. The company's Metates deposit in Mexico, containing 17 million ounces of gold and 423 million ounces of silver, was previously considered too challenging to develop economically due to its refractory nature, where gold is trapped in sulfide minerals.

The proprietary technology transforms sulfide ore into oxide ore through an accelerated oxidation process, making previously unrecoverable gold accessible through conventional heap leaching. This innovation essentially compresses what would naturally take "100 million years" into just months, by applying special reagents that strip sulfur from pyrite crystals and replace it with oxygen.

The economic impact is dramatic. Previous development plans for Metates required pressure oxidation autoclave technology with a capital expenditure of approximately $3.5 billion for a 90,000 ton per day operation, yielding a sub-10% internal rate of return (IRR). With the new technology, Chesapeake can start with a 15,000 ton per day operation at a capital cost of just $360 million, achieving a 35% IRR and all-in sustaining costs of approximately $750 per ounce.

Justin Black, Chesapeake's Chief Metallurgical Officer who previously worked with the technology at Hycroft Mining, demonstrated its effectiveness on a commercial scale with a 150,000-ton test pad. Material that initially had only 20% recoverable gold achieved 80-90% recovery after treatment. For Metates specifically, tests showed that material oxidized for 204 days reached nearly 75% gold recovery compared to just 33% for untreated ore.

Beyond economics, the technology offers significant environmental advantages over traditional methods for processing refractory ores, including lower water consumption, reduced energy usage, and lower greenhouse gas emissions.

According to CEO Jean Paul Tsotsos, this technology could unlock a market worth approximately $1.5 trillion in currently inaccessible gold resources. McKinsey estimates approximately 580 million ounces of gold globally are considered refractory, with these deposits typically offering higher grades (averaging 2.25 g/t versus 1.21 g/t for non-refractory deposits).

The company has identified over 200 deposits globally where the technology could apply and is advancing on multiple fronts, including continuing test work, analyzing samples from other companies, and planning to establish a pilot plant to further demonstrate the technology's effectiveness.

View Chesapeake Gold's company profile: https://www.cruxinvestor.com/companies/chesapeake-gold

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Interview with President & CEO, Paul Huet & Eric Sprott

Our previous interview: https://www.cruxinvestor.com/posts/americas-gold-silver-the-turnaround-team-6588

Recording date: 3rd April, 2025

Americas Gold & Silver is positioning itself as a compelling turnaround opportunity in the silver mining sector under new leadership. The company operates two primary assets - the Galena mine in Idaho's historic Silver Valley and the Cosala mine in Mexico - with a renewed focus on operational improvements and efficiency.

Led by CEO Paul Huet, who brings successful experience from previous turnarounds at Klondex and Karora Resources, the company is implementing a straightforward "mining 101" strategy. This approach focuses on strengthening management, updating equipment, introducing more efficient long-hole mining methods, installing a paste plant, improving shaft capacity, maximizing mill utilization, and recovering valuable byproduct metals.

The company faces significant operational inefficiencies that present clear improvement opportunities. At Galena, current mining methods yield only 80-100 tons per blast compared to neighbors' 10,000-ton stopes, while mill utilization is limited to just three days per week. Management has already increased shaft hoisting rates from 42 to 60 tons per hour and targets 110 tons per hour by year-end.

A major untapped opportunity involves recovering copper, antimony, and gold currently present in concentrate but not being monetized. By capturing these metals, the company believes it can potentially reduce silver production costs to below $10 per ounce.

Financially, Americas Gold & Silver recently raised $50 million and has eliminated approximately $43 million in liabilities. The company is seeking debt financing to fund 24 months of operational improvements without equity dilution. Capital allocation priorities include exploration ($3-5 million per asset), waste development, equipment upgrades ($7 million), a paste plant ($8 million), and shaft improvements ($7 million).

Eric Sprott, who owns 20% of the company, maintains a bullish outlook on silver prices. He cites a persistent 200 million ounce annual supply deficit and growing industrial demand. Sprott believes silver could reach $50-200 per ounce from its current $30 level, noting the current gold-to-silver ratio of 90:1 is far from the historical 15:1 ratio or natural mining ratio of 8:1.

Despite doubling since September, management considers the stock significantly undervalued at 0.4-0.5 times NAV compared to peer silver producers at 1-1.5 times NAV. With institutional ownership increasing from 8% to 60% in just 75 days and management holding significant positions, Americas Gold & Silver offers investors leverage to rising silver prices while operational improvements potentially drive substantial value creation.

Learn more: https://www.cruxinvestor.com/companies/americas-gold-silver-corporation

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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-pfs-reveals-low-capex-starter-gold-mine-with-47-irr-6439

Recording date: 7th April 2025

Cabral Gold (TSX-V: CBR) is rapidly advancing its district-scale Cuiú Cuiú gold project in northern Brazil, with recent high-grade drill results significantly enhancing the project's potential. The company's latest discovery at Machichie Northeast delivered an exceptional intercept of 12 meters at 27.7 g/t gold, following previous results including 11 meters at 33 g/t gold. These represent "two of the best holes we've ever drilled on the project," according to President and CEO Alan Carter, indicating substantial resource growth potential beyond the current 1.3 million ounce estimate.

The company is pursuing a strategic two-phase development approach that addresses the capital constraints typically facing junior miners. The initial phase targets shallow, oxidized material amenable to heap leach processing, minimizing capital expenditure while establishing cash flow to fund further exploration of the property's district-scale potential. This approach allows Cabral to "get off this hamster wheel" of dilutive financing, as Carter describes it, and "be in control of our own destiny" through self-generated revenue.

Economics for the project appear compelling, particularly in the current gold price environment. The Preliminary Feasibility Study (PFS) completed in October 2024 projected a 47% post-tax rate of return based on a conservative gold price of $2,250 per ounce. With gold currently trading above $3,000 per ounce, the potential returns could be substantially higher. All-in sustaining costs of approximately $1,000 per ounce suggest potential operating margins exceeding $2,000 per ounce at current prices.

An updated PFS expected in May 2024 will incorporate the Machichie Main deposit, potentially enhancing the already robust economics. While the recently discovered high-grade Machichie Northeast zone won't be included due to insufficient drilling density, its proximity to planned mining areas (approximately 650 meters from the initial MG deposit) makes it a compelling target for rapid development. The high-grade material may require a supplementary gravity plant alongside the planned heap leach facility, with metallurgical work currently underway.

The exploration upside at Cuiú Cuiú is particularly noteworthy, with over 50 gold targets identified across the property. Carter highlights the project's scale by comparing it to G-Mining's neighboring operation, noting that "Cuiú Cuiú has a much bigger footprint... it's sort of seven to ten times larger" based on soil anomalies and historic production. Some targets include boulder fields with material "averaging sort of 75 grams, 90 grams a ton. Gold, not silver."

Financing discussions for the initial production phase are advancing, with interest from "all sorts of different parties" including traditional lenders, streaming companies, end users, and strategic investors. The company aims to secure financing by July 2024, with construction potentially beginning in the third quarter. With a 12-month build time and simplified processing approach requiring "no drilling and blasting, and no crushing and grinding," Cabral could be positioned for production by late 2025.

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Interview with Allen Sabet, CEO of Mogotes Metals Inc.

Recording date: 1st April 2025

Mogotes Metals Inc. is positioning itself as a significant player in copper-gold exploration, with strategic holdings directly adjacent to Filo Mining's Filo del Sol discovery in Argentina's prolific Vicuña District. The Filo del Sol property was recently acquired by BHP-Lundin for C$4.5 billion, highlighting the district's exceptional mineral potential.

Led by CEO Allen Sabet, Mogotes has taken a methodical approach to exploration, focusing on comprehensive data collection before drilling. "To mitigate the risk of drilling into nothing, we take a step back and do a full property-wide systematic program," explains Sabet. This approach has allowed the company to identify multiple exploration targets across its Filo Sur Project.

The company has invested over $10 million in exploration work, utilizing advanced techniques including MT geophysics, IP surveys, and high-resolution satellite imagery for alteration mapping. These methods have revealed compelling targets with geological signatures similar to neighboring discoveries.

Key exploration targets include Meseta, located on the Mogotes-Filo property boundary with rock chip samples showing up to 1.48 g/t gold; Camino, featuring phyllic alteration with copper, molybdenum and arsenic in surface soils; Rincon, a newly identified trend with promising trench results; Cruz del Sur, with magnetic chargeable targets close to surface; and Colorida Zone, showing large conductive anomalies.

Mogotes recently optioned additional claims that secure the projection of the Filo del Sol trend, strengthening its strategic position. "We've locked up strategically over the last two years any open ground that was there and now we've closed that with our most recent transaction," Sabet notes.
The company plans to begin its first comprehensive drilling program in October 2025, with current work focused on further defining targets through trenching and additional geophysical surveys.

With a market capitalization of approximately C$33 million and C$8 million in cash as of February 2025, Mogotes represents a leveraged opportunity for copper exposure. Management and insiders hold 18% of the company's 247.5 million outstanding shares, with institutional investors holding 36%.

As global copper demand is projected to double by 2035 while mine supply faces constraints, the Vicuña District offers rare potential for multiple world-class discoveries. Mogotes provides investors access to this promising trend at a fraction of the valuation of its neighbors.

View Mogotes Metals' company profile: https://www.cruxinvestor.com/companies/mogotes-metals

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Interview with Gavin Ferrar, CEO of Central Asia Metals PLC

Our previous interview: https://www.cruxinvestor.com/posts/central-asia-metals-lsecaml-plugging-into-profits-and-growth-in-the-base-metals-sector-6334

Recording date: 1st April 2025

Central Asia Metals PLC (CAML), an AIM-listed base metals producer with operations in Kazakhstan and North Macedonia, has reported strong financial results for 2024. The company generated $214 million in revenue and nearly $102 million in EBITDA, achieving an impressive 47% EBITDA margin that CEO Gavin Ferrar described as "super respectable" for a mining company.

CAML ended the year with approximately $68 million in cash after generating just under $66 million in free cash flow. This strong financial position enabled the company to pay a generous full-year dividend of 18 pence per share, representing about 63% of free cash flow—significantly exceeding their stated policy of 30-50%. Ferrar explained this generous distribution as compensation to shareholders for the lack of completed M&A transactions.

Despite actively pursuing acquisition opportunities (with 13 NDAs and 6 site visits last year), CAML remains selective in its M&A strategy, focusing on base metals assets that would generate at least $50 million in EBITDA. The company's strong balance sheet provides flexibility for future acquisitions without necessarily requiring shareholder dilution.

Operationally, CAML has made significant progress at the Sasa mine in North Macedonia, where its paste backfill plant successfully operated for the full year in 2024, placing 240,000 tons of tailings back underground—approximately one-third of the total produced. The company is also completing a dry stack tailings plant, which will handle another 30-40% of tailings, eliminating the need for additional wet tailings facilities.

In Kazakhstan, the Kounrad operation continues to outperform expectations. The Eastern dumps, which according to the original 2012 plan should have ceased production years ago, contributed approximately 27% of the company's copper last year. With production costs of 80 cents per pound against a copper price around $5, the operation maintains impressive margins.

CAML has developed significant expertise in its operating regions, with Ferrar strongly defending Kazakhstan as an investment-grade country with increasing Western capital inflows. The company's established presence provides strategic advantages in navigating permitting processes and accessing regional opportunities.

Beyond operational efficiency, CAML maintains a strong commitment to ESG initiatives, particularly in community engagement. The company operates its own foundation in Kazakhstan, making targeted investments including a center for disabled children, a facility for victims of domestic violence, and a recently refurbished youth center.

As CAML continues to seek transformative M&A opportunities, it remains focused on maximizing returns from existing assets, controlling costs, and maintaining operational efficiency to remain profitable throughout market cycles.

View Central Asia Metals' company profile: https://www.cruxinvestor.com/companies/central-asia-metals

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Interview with Adam Kiley, CEO of Frontier Energy Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/frontier-energy-asxfhe-grid-connected-developer-eyes-major-role-in-was-82-renewable-push-6479

Recording date: 31st March 2025

Frontier Energy is advancing its Waroona Renewable Energy Project in Western Australia after being selected as one of four successful applicants for the federal government's $67 billion Capacity Investment Scheme (CIS). The scheme provides a crucial 15-year revenue floor guarantee, underwritten by the federal government, which helps secure debt financing by ensuring minimum revenue levels even during market downturns.

CEO Adam Kiley explained the significance: "What CIS does overall for projects such as ours is essentially an underwriting by the federal government for a contract of up to 15 years which provides a revenue floor for the project moving forward." The arrangement also includes a profit-sharing mechanism where Frontier would share 50% of profits with the government if energy prices exceed a certain ceiling.

The company is currently selecting a strategic partner from shortlisted candidates to help cover the equity gap and secure favorable debt terms. Kiley emphasized this would be "a partnership on the way through," not a takeover by a larger entity.

The initial Stage 1 project consists of a 120-megawatt solar facility combined with an 80-megawatt/4.75-hour battery storage system, expected to begin production in late 2027. This hybrid approach maximizes revenue by fully charging the battery daily and discharging during peak demand periods when prices are highest.

Frontier has substantial expansion potential on its 820-hectare land holding, with Stage 1 utilizing only about 300 hectares. Environmental spring surveys have been completed for the additional land, with Stage 2 potentially doubling the project size.

The project's timing aligns strategically with Western Australia's energy transition, as coal (currently 30% of the grid) is scheduled to be phased out by 2029. This creates an energy supply gap that Frontier is positioned to help fill. Additionally, grid limitations restrict how quickly new renewable energy projects can be developed, giving Frontier an advantage with their already approved connection points.

Frontier recently appointed Guy Chalkley as Chairman, bringing valuable energy sector experience from his roles as former CEO of Western Power and current CEO of Endeavor Energy.
The company sees 2025 as pivotal, with securing the strategic partnership representing "the big rerating event for this company," transforming it from a speculative renewable developer to a funded project with a clear path to revenue.

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

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Our previous interview: https://www.cruxinvestor.com/posts/record-metal-prices-creating-mining-acquisition-wave-6893

Recording date: 31st March 2025

Resource nationalism and political risk have emerged as critical considerations for mining investors, particularly as jurisdictional differences in permitting timelines create significant competitive advantages. According to industry executives Samuel Pelaez and Derek Macpherson of Olive Resource Capital, these factors are reshaping investment strategies in the gold-copper sector.

Western Australia stands out as a premier mining jurisdiction globally, with permitting processes taking just 1-2 years compared to the 5-10 years historically required in the United States. This efficiency creates substantial economic advantages for projects in favorable regions.

Recent developments in the U.S. mining sector could transform this dynamic. President Trump's Mineral Production Order aims to expedite mining permits, potentially triggering what experts describe as a "renaissance in U.S. mining" over the next 3-4 years. Companies including Mako Mining, Minera Alamos, and Trilogy Metals are already positioning themselves to capitalize on this regulatory shift.

While rule of law is considered a binary factor in investment decisions, executives emphasize it can change unexpectedly. Mali, Panama, and Bolivia demonstrate how previously favorable jurisdictions can quickly become challenging. As Macpherson notes, "We want things to stay the same," highlighting investors' fundamental desire for stability.

Beyond the U.S., several jurisdictions are gaining favor. Guyana's recent oil discoveries have funded infrastructure improvements while creating demand for job-producing mining projects. Brazil continues demonstrating reasonable permitting timeframes, while Morocco has emerged as a surprising new mining destination.

The discussion emphasizes that resource nationalism impacts strategic metals like copper and rare earths even more significantly than gold, creating opportunities for projects in western jurisdictions as nations seek to secure domestic supply chains.

For investors, the implications include prioritizing projects in stable jurisdictions with efficient permitting, considering the timing advantage for U.S. projects under the current administration, evaluating management teams for jurisdiction-specific experience, and distinguishing between risks to developers versus producers.

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Interview with Paul Atherley, Chairman of Pensana PLC

Our previous interview: https://www.cruxinvestor.com/posts/pensana-pre-confident-funding-is-imminent-2582

Recording date: 28th March 2025

Pensana PLC, chaired by Paul Atherley, has secured financing to begin construction on one of the world's largest undeveloped rare earth projects in Angola. The project will process 20,000 tons initially, eventually scaling to 40,000 tons, placing it in the same league as industry leaders Lynas and MP Materials.

The financing package comes from three key institutions: Angola's sovereign wealth fund (FSDA), Absa Bank from South Africa, and the African Finance Corporation. The structure consists of approximately 60% debt and 40% equity spread across these institutions. The equity component is expected to be drawn down within weeks, while the debt documentation will take 6-9 months to finalize.

What distinguishes Pensana's approach is its focus on creating a non-Chinese rare earth supply chain. Rather than simply mining and exporting raw materials to China, the company plans to produce a mixed rare earth carbonate (MRE), a midstream product that can be processed further outside China. The company is in discussions with potential partners who have separation capacity outside China, which Atherley describes as "a very important step" in creating an independent global supply chain.

The Longonjo project contains over 100,000 tons of valuable neodymium and praseodymium in its top 30 meters, with an exceptionally low strip ratio of 0.2:1, indicating efficient mining potential. Technical validation has been completed through extensive testing at laboratories in Western Australia, confirming the quality of their product.

Construction is now beginning, with first production targeted for the end of 2026, followed by a six-month ramp-up period to reach full production in 2027. The financing will dilute Pensana's ownership from 84% to 70% initially, with potential further dilution to 52% if certain mezzanine financing is not refinanced.

Atherley sees significant growth potential as the company is "building a project at the bottom of the rare earth price cycle," contrasting their current $100 million market cap with Lynas at $4 billion. He highlights future demand drivers including electric vehicles, wind turbines, and emerging technologies like humanoid robotics.

As Atherley notes, "It's an electric future based on electromagnetics and we will be a producer going into that rising thematic."

View Pensana's company profile: https://www.cruxinvestor.com/companies/pensana-plc

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Interview with Charlie Regan, Director & CEO of NerdsOnSite

Recording date: 28th March 2025

Nerds On Site (NOS) is a publicly traded Canadian technology services company with a U.S. subsidiary that provides comprehensive tech and cybersecurity services to small and medium enterprises (SMEs). Led by Charlie Regan as CEO, the company currently generates approximately CAD $11-12 million in annual revenue.

Operating with a lean structure of only 7-8 employees, NOS leverages a network of 150 independent contractors who deliver services to approximately 13,000 clients annually across over 117 industry verticals. The company's client base is divided into three main segments: small office/home office (20% of revenue), SMEs (50%), and enterprise clients (20%), including Canadian Tire with 550 locations and a Florida-based bank chain.

NOS's primary offering is a cybersecurity solution with a preventative approach that distinguishes it from competitors. According to Regan, "We fortify the house so that nobody can get in," rather than removing threats after breaches occur. This solution has been deployed for 13 years across millions of devices without a single successful ransomware attack, and is sold with a 60% markup margin.

The company recently launched NOS Technical Services, a U.S.-based division targeting state governments and pharmaceutical companies with specialized technical talent placement. Regan expects this division to match the revenue of their core business within 2.5 years, projecting $4-5 million in revenue by the end of 2025.

NOS's sales approach includes real-time demonstrations of security vulnerabilities, showing clients data being transmitted to countries like North Korea and Russia. The company also recently launched "Nerds Online," a 24/7 support service priced at CAD $39.99 per month, targeting both existing clients and prospects who couldn't afford their higher-priced offerings.

Currently, NOS reports 7.5% revenue growth over the previous year and aims for 10% growth this year. Management is targeting a gross profit margin of 32.5% (currently about 3 points away) to become "comfortably profitable" by the end of 2025.

The company's growth strategy includes pursuing acquisitions of managed service providers (MSPs) in the U.S. whose owners are approaching retirement age. NOS plans to upgrade these clients to a higher-level managed security service provider model by implementing their cybersecurity offerings, with at least one acquisition planned before the end of 2025.

As cybersecurity concerns grow and organizations shift toward specialized technical contracting, NOS appears positioned to capitalize on these market trends with its preventative security approach and flexible service model.

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Interview with Hugh Agro, President & CEO, and John Meyer, VP Engineering & Development of Revival Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/revival-gold-tsxvrvg-positioned-for-a-rising-gold-market-in-2025-6478

Recording date: 31st March 2025

Revival Gold recently released results from the Preliminary Economic Assessment (PEA) for its Mercur gold project, showcasing strong economic potential with projected annual gold production of 95,000 to 105,000 ounces over a 10-year mine life. At a gold price of $2,175 per ounce, the project demonstrates a Net Asset Value (NAV) of $294 million and a 27% Internal Rate of Return (IRR) after tax. These figures improve dramatically at current gold prices of $3,000 per ounce, with NAV increasing to $752 million and IRR to 57%.

The project features modest upfront capital costs of $208 million and competitive operating costs with Cash Costs of $1,205 per ounce and All-in Sustaining Costs of $1,363 per ounce. The resource base consists of approximately 1.4 million ounces of gold, with over 50% in the indicated category, an average grade of 0.6 grams per ton, and metallurgical recovery rates averaging 75%.

A significant advantage of the Mercur project is its location on private patented claims just an hour from Salt Lake City, Utah. This allows for permitting through a state process rather than federal, potentially streamlining the timeline to approximately two years. The strategic location provides ready access to equipment, services, and skilled labor without requiring a camp or remote-site logistics.

The company has outlined a two-phase development approach, with the first phase involving drilling to convert inferred resources to measured and indicated categories, along with collecting metallurgical samples. The second phase will focus on completing a Pre-Feasibility Study and advancing permitting. The combined budget for these phases is approximately $8 million, with potential construction beginning within 2-2.5 years.

Technical risks are mitigated by the project's brownfield status, as the site has been previously mined. Environmental factors appear favorable with no perennial streams, deep groundwater, and no threatened or endangered species identified. The heap leach processing method eliminates the need for tailings facilities, reducing environmental footprint.

Revival Gold's overall portfolio now includes both the Mercur project and the Beartrack-Arnett project, representing a combined resource of approximately 6 million ounces of gold. With a current market capitalization of approximately $50 million, the company is trading at just 0.1x NAV and $8 per ounce of gold resource, suggesting significant potential for value appreciation as the projects advance.

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

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