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...

The World Nuclear Association conference in London last week provided some valuable insights into the current state of the uranium market. There was a noticeable shift in sentiment among participants compared to previous years. The mood was more somber among uranium producers as they recognize the challenges ahead to raise capital and ramp up production after years of low prices. However, there is also an underlying tone of quiet confidence that higher prices are coming due to looming supply shortages.

On the demand side, there is broad consensus that nuclear power capacity needs to expand significantly, possibly even triple by 2050, to meet carbon reduction goals and energy security concerns. This would require ramping up annual uranium demand to 500 million pounds from current levels of less than 200 million pounds. Utilities are starting to take concrete steps like accelerating contract activity and making requests for future fuel deliveries for small modular reactors coming online in the late 2020s. This is shifting nuclear from a theoretical climate solution to an actual growth industry again.

However, the supply side remains uncertain. While over 450 "zombie" projects popped up during the last price spike, very few actually reached production. The existing developers face challenges raising the hundreds of millions in capital now required while also competing for experienced talent. Experience matters when unavoidable problems arise with complex projects. Consolidation via M&A deals is likely as smaller developers get taken out before reaching production. However, the current high valuations may be disconnecting company values from their actual ability to produce future pounds. Utilities are increasingly scrutinizing suppliers' track records and future pound production potential.

In the term contracting market, the shifts are subtle but telling. Terms like allowing utilities to vary annual delivery quantities, extension options, and reactor operations clauses are disappearing or becoming more restricted. This reflects suppliers' stronger leverage to demand stricter terms. However, base term prices remain in the $50s range for now. The floor prices in collar contracts are rising though, indicating utilities' acceptance of higher long-term pricing. Overall, the availability of sub $60 contracts is declining quickly while $60-70 contracts are increasing. Some early movers have signed initial deals to gain credibility, but the broader long-term market still has significant contracting ahead.

In the spot market, there is very limited material available. Major bids for a few million pounds could easily move prices up by several dollars very quickly. Traders expect spot prices to rise into the $65-75 range in the next year absent a change in buyer behavior. Much depends on how quickly new financial buyers deploy their capital and how aggressively they purchase material. Unlike utilities, their investment mandates could change suddenly as market conditions shift.

Overall, experts believe this is the period where the excess uranium inventory that has depressed the market for years will finally be depleted. Despite doubling over the past two years, prices need to rise significantly higher to incentivize required production growth. The confluence of demand growth, lack of primary supply, financial buyers entering, and utilities becoming more concerned about long-term security of supply points to continued upside in uranium prices. However, the timing remains uncertain. While higher prices are widely anticipated, it will likely take strong contracting and field development progress to transition sentiment from expectation to realization in the uranium market.

View All Energy Show Episodes: https://www.cruxinvestor.com/categories/themes/the-energy-show

Interview with Marc Henderson, President & CEO of Laramide Resources (TSX: LAM)

Our previous interview: https://youtu.be/n4qLWNy5o8A

Recording date: 6th September 2023

Laramide is dedicated to the exploration and development of top-tier uranium assets in Australia and the western US, holding a collection of prime uranium projects in areas known for historical production or promising geology. These projects, including the significant Westmoreland Project in Queensland with a 13-year mine life projection, and the adjacent Murphy Project in Australia's Northern Territory, demonstrate strategic asset acquisition, emphasizing scale and potential. In the US, Laramide's holdings feature the NRC-licensed Crownpoint-Churchrock Uranium Project, anticipated to utilize in-situ recovery (ISR) methods, the La Jara Mesa Project in New Mexico's Grants mining district, and the underground La Sal Project in Lisbon Valley, Utah.