Company Interviews

Interview with Thomas Abraham-James, President & CEO of Pulsar Helium Inc.

Our previous interview: https://www.cruxinvestor.com/posts/pulsar-helium-tsxvplsr-tapping-into-helium-shortages-with-flagship-us-project-4705

Recording date: 14th January 2025

Pulsar Helium, a dedicated helium exploration company, is advancing its flagship Topaz project in Minnesota, which has shown exceptional potential with helium concentrations up to 14.5%. The project, acquired in 2021 from a nickel exploration company that made the initial helium discovery, represents a significant opportunity in the North American helium market.

The company recently completed deepening its Jetstream-1 discovery well from 2,200 feet to 5,100 feet, encountering additional helium-bearing reservoir rock. In parallel, Pulsar is drilling a second well, Jetstream-2, to further delineate the resource. The company employs air drilling technology, which allows faster penetration through the crystalline basement rock, though this method provides conservative estimates of helium concentrations due to dilution.

Pulsar has partnered with Chart Industries, a multi-billion-dollar U.S. company, to design and engineer the processing facilities. The planned helium plant will be modest compared to typical natural gas facilities, focusing on separating carbon dioxide before processing helium through cryogenic distillation. The separated carbon dioxide could provide additional value, given the current U.S. shortage.

The company aims to reach a final investment decision (FID) within 24 months, followed by an 18-month construction period before commencing production. This timeline aligns with favorable market conditions, as global helium demand continues to grow, driven by semiconductor manufacturing, MRI scanners, and space launch applications.

A key market challenge Pulsar aims to address is the current industry's reliance on helium as a byproduct of natural gas production, which accounts for over 95% of global supply. This dependency creates inflexibility in the supply chain, as helium production is tied to natural gas extraction rather than market demand. When customers don't need the product, it's often wasted, venting into the atmosphere.

Pulsar's strategic advantage lies in being a pure-play helium producer, offering dedicated production that can respond to market demands. With the U.S. Federal Helium Reserve winding down sales and domestic production declining, the company is positioned to capture market share in the evolving helium landscape.

The project benefits from its location in Minnesota, a stable jurisdiction, and the high concentration of helium discovered. These factors, combined with the partnership with Chart Industries and the company's focused development strategy, present Pulsar Helium as a significant player in addressing the growing supply-demand gap in the U.S. helium market.

View Pulsar Helium's company profile: https://www.cruxinvestor.com/companies/pulsar-helium

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Interview with
Alex Black, Executive Chairman of Rio2 Ltd.
Peter Akerley, President & CEO of Erdene Resource Development Corp.

Recording date: 13th January 2025

Two junior gold companies are approaching a significant transition from developers to producers, marking a rare success in the challenging mining sector. Erdene Resource Development and Rio2 Limited are both fully funded and on track to begin gold production, with their projects in Mongolia and Chile respectively.

Erdene Resource Development is advancing its Bayan Khundii project in southwestern Mongolia, with first gold expected in Q3 2025. The company has partnered with Mongolian Mining Corporation to fund and develop what CEO Peter Akerley describes as a "multi-million ounce camp." With an after-tax NPV of US$170 million at $1,800 gold, the project shows strong economics despite Erdene's current market cap of around US$146 million.

In Chile's Atacama Desert, Rio2 Limited is developing its Fenix Gold Mine, backed by Wheaton Precious Metals through a comprehensive funding package that includes $25 million in stream money, $100 million in pre-pay financing, $45 million cash in bank, and a $20 million cost overrun facility. The project hosts a substantial 5 million ounce gold reserve, with clear expansion potential.

Both companies face similar market challenges despite their progress. Rio2's Executive Chairman Alex Black notes that despite their project's NPV of about $800 million at current gold prices, the company's market value remains under $200 million. However, Erdene has seen some market recognition, with its share price doubling since September 2024.

Several factors support a positive outlook for gold mining development. Geopolitical instability, including Russia-Ukraine conflict and China-Taiwan tensions, reinforces gold's safe-haven status. Rising inflation and currency risks make gold an attractive hedge, while operating in countries with weaker currencies provides margin benefits for miners.

The sector also faces supply constraints as miners struggle with depleting reserves and limited new discoveries. Environmental, social, and governance (ESG) pressures add another layer of complexity, as evidenced by Rio2's experience with environmental permitting in Chile.

Both companies have positioned themselves for success through strategic partnerships and experienced management teams. While risks such as cost overruns, delays, and permitting challenges remain, their projects are largely derisked and fully funded. As they transition to producer status, both companies could see significant share price appreciation, though management emphasizes the importance of taking a longer-term view on these investments.

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Interview with Morgan Poliquin, President & CEO, Almadex Minerals

Our previous interview: https://www.cruxinvestor.com/posts/almadex-minerals-tsxvdex-prospect-generator-with-16m-cash-nsrs-5276

Recording date: 10th of January, 2025

Almadex Minerals, under the leadership of President Morgan Poliquin, is positioning itself to discover large-scale copper-gold porphyry deposits in the Western United States. The junior exploration company has assembled a portfolio of six early-stage porphyry projects across Nevada, Arizona, Colorado, and New Mexico in 2024, marking a strategic shift from its previous 25-year focus in Mexico.

The company employs advanced exploration techniques to identify potential porphyry deposits, focusing on detecting large zones of clay alteration that typically overlie these mineral systems. These clay alteration zones, known as lithocaps, can be identified from space and serve as markers for potential deposits beneath the surface. The company has already delineated such zones at its six key projects.

A distinguishing feature of Almadex is its ownership of diamond drilling equipment and an experienced drilling team. This in-house capability provides both cost advantages and operational flexibility, allowing the company to conduct proof-of-concept drilling programs without the constraints of contractor agreements. The company can adapt its drilling plans based on results and execute shorter, targeted campaigns when needed.

Entering 2025, Almadex is well-positioned with over $13 million in working capital. The company plans to drill one to two projects itself while seeking joint venture partnerships to advance other properties. Target refinement will continue through the first half of 2025 using mapping, sampling, and geophysical surveys.

The company's exploration strategy aligns with current market conditions. With copper being crucial for clean energy transition and electrification, and gold serving as a safe haven in uncertain times, the demand for new discoveries remains strong. The scarcity of major copper and gold discoveries in recent years, combined with the strategic value of deposits in stable jurisdictions like the United States, enhances the potential value of Almadex's portfolio.

Poliquin sees increasing market recognition of the sector's importance and expects growing interest in the company's verifiable portfolio of copper-gold targets in the United States. The company's investment thesis rests on its potential for world-class discoveries, technical expertise, cost-effective drilling capabilities, and strong financial position. As exploration activities ramp up in 2025, Almadex aims to capitalize on the favorable macro environment for copper and gold exploration while maintaining the flexibility to advance projects either independently or through partnerships.

Learn more: https://www.cruxinvestor.com/companies/almadex-minerals

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Interview with Judy Baker, Director & CEO of Argo Gold Inc.

Recording date: 9th January 2025

Argo Gold, a Canadian junior oil producer, has successfully transformed from a gold exploration company into a profitable oil producer in Alberta's Lloydminster region. The company currently generates $2.8M in revenue and $1.8M in net operating cash flow from its oil operations, which produce approximately 120 barrels of oil per day.

Originally founded in 2016 as a gold exploration company in Ontario, Argo Gold pivoted to the oil sector in 2023, recognizing significant opportunities in the Canadian oil patch due to lack of capital investment. The company deployed $1.8 million to participate in three successful heavy oil development wells in the Lloydminster area, where major producers like CNRL and Baytex also operate.

The economics of Argo's heavy oil business are particularly attractive, with all-in costs averaging $25 per barrel while realizing sale prices of $71 per barrel over the past two years. The company maintains low corporate overhead at $400,000 annually and leverages expert consultants rather than maintaining a full-time technical team, allowing for operational flexibility and cost efficiency.

Looking ahead, Argo Gold plans to pay down its $1 million debt in 2025 and aims to initiate a dividend of approximately one cent per share in 2026. The company maintains a dual focus, continuing its oil development drilling while also holding strategic mineral claims, including a 200 square kilometer land position near the Rottenstone discovery in Saskatchewan and uranium claims in the Athabasca Basin.

CEO Judy Baker emphasizes the company's advantageous position in the Canadian heavy oil market, noting strong demand from US refineries and reliable export infrastructure via pipelines and rail. Despite federal government policies creating headwinds for the Canadian oil industry, Argo benefits from supportive provincial regulations in Alberta.

With a market capitalization of approximately C$6M, Argo Gold represents a unique investment opportunity in the Canadian resource sector. The company combines current cash flow from oil production with potential upside from its mineral claims, which it hopes to develop through exploration partnerships. Its strategy focuses on maintaining low costs and high margins in its core oil business while providing investors with exposure to strategic minerals through a prospect generator model.

The company's evolution showcases an opportunistic approach to resource development, adapting to market conditions while maintaining a focus on generating shareholder value through both operational cash flow and strategic asset development.

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

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Interview with Alfred Stewart, Chairman, Director & VP Corporate Development of Searchlight Resources

Recording date: 8th January 2025

Searchlight Resources (TSX-V:SCLT), a Canadian exploration company, is advancing a diverse portfolio of rare earth, uranium, and gold projects in Saskatchewan's premier mining districts.

The company's Kulyk Lake rare earth project in the Athabasca Basin has emerged as a significant discovery, with a 12-kilometer radiometric anomaly yielding surface samples grading up to 50% total rare earth oxides (TREO). According to Chairman Alfred Stewart, "Northern Saskatchewan is blessed with a large number of rare earth pegmatites and we have established a regional play in the Athabasca Basin area. All of these pegmatites are undrilled."

The project's strategic value is enhanced by its proximity to the Saskatchewan Research Council's rare earth processing facility in Saskatoon, specifically designed to process monazite, the primary rare earth mineral found at Kulyk Lake. Recent exploration has identified a mineralized zone measuring 450 by 600 meters, with rock values exceeding $1,000 per tonne.

Beyond rare earths, Searchlight controls the Bootleg Lake Gold project, which hosts four past-producing mines that historically produced around 10,000 ounces per year. The project, located just 5 kilometers from Flin Flon, benefits from existing infrastructure including a mill and tailings facility currently on care and maintenance. Historic work from 1989 outlined a resource of approximately 150,000 ounces.

The company's uranium portfolio is anchored by the Duddridge Lake deposit, Saskatchewan's most southerly uranium deposit, acquired during the post-Fukushima uranium bear market. The project hosts a modest resource that remains open for expansion.

Operating as a prospect generator, Searchlight aims to minimize shareholder dilution while advancing multiple projects simultaneously. The company maintains a low burn rate with just two key personnel, who are also major shareholders. Currently, Searchlight is in discussions with three different groups regarding their gold and uranium properties.

The prospect generator model allows Searchlight to leverage its technical expertise in acquiring prospective ground, then seek larger partners to fund development in exchange for project interest. This approach provides investors with exposure to multiple commodities and discovery opportunities while managing exploration risk.

With properties secured in one of the world's top mining jurisdictions, existing infrastructure advantages, and multiple pathways to value creation, Searchlight offers investors a unique opportunity to participate in Saskatchewan's resource sector resurgence.

View Searchlight Resources' company profile: https://www.cruxinvestor.com/companies/searchlight-resources-inc

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Interview with Rajesh Sharma, President & CEO of Fancamp Exloration Ltd.

Recording date: 8th January 2025

Fancamp Exploration, a Canadian mineral exploration company, stands out in the junior mining sector with its robust financial position and diverse asset portfolio. The company currently maintains over $20 million in cash and marketable securities against a market capitalization of $17-18 million, effectively trading at a discount to its liquid assets.

A cornerstone of Fancamp's portfolio is its 2.7 million share position in Champion Iron, valued at $15-17 million. The company has also secured a strategic position in the Ring of Fire region through a convertible debt instrument with KWG Resources, which earns 6% interest and can convert into a 10% equity stake, along with a 2% NSR royalty.

In the critical metals space, Fancamp holds a 96% stake in The Magpie Mines Inc., which hosts what the U.S. Geological Survey recognizes as one of the world's largest undeveloped hard rock titanium deposits. This position aligns well with growing demand for titanium in aerospace, defense, and electronics applications.

The company's recent focus has turned to copper-gold exploration in New Brunswick, where it has established a joint venture with Lode Gold Resources. This project is strategically located near Puma Exploration's property, where Kinross Gold has committed to invest $15-20 million in exploration. Fancamp has already raised $4 million in early 2024 to advance this initiative.

Under CEO Rajesh Sharma's leadership, Fancamp has adopted a long-term value creation strategy, differentiating itself from peers who focus on short-term market movements. The management team and directors demonstrate their commitment through significant insider ownership, holding 24% of the company's shares.

Fancamp's business model combines direct project ownership with equity investments and royalty interests, creating multiple potential value drivers. The company has structured its portfolio to maintain exposure to both precious and critical metals, positioning itself to benefit from growing demand in these sectors.

With its strong balance sheet, diverse asset base, and experienced management team, Fancamp offers investors exposure to both established mining operations through its investments and exploration upside through its project portfolio. The company's focus on methodical development and strategic partnerships suggests a measured approach to creating shareholder value in the junior mining sector.

View Fancamp Exploration's company profile: https://www.cruxinvestor.com/companies/fancamp-exploration

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Interview with Dan Blondal, CEO at Nano One Materials Corp.

Our previous interview: https://www.cruxinvestor.com/posts/nano-one-materials-tsxnano-disrupting-global-cathode-production-with-modular-plant-strategy-6413

Recording date: 9th January 2025

Nano One Materials Corp (TSX: NANO) is a Canadian clean technology company that is revolutionizing the production of cathode active materials for lithium-ion batteries. Their patented "one-pot" process offers significant reductions in cost, energy usage, and environmental impact compared to existing production methods. With applications in electric vehicles, energy storage systems, and consumer electronics, Nano One is positioned to play a critical role in the rapidly growing battery market.

China currently dominates the lithium iron phosphate (LFP) battery material market, producing around 99% of global supply. However, recent Chinese export restrictions on LFP processing technology have highlighted the risks of over-reliance on Chinese supply chains. This policy shift has created an urgent need for alternative LFP production methods and supply chains outside of China.
Nano One's technology and licensing strategy is ideally suited to address this need. The company's one-pot process is decoupled from China's supply chains and provides a cleaner, more cost-effective production solution. With 48 global patents and a waste-free process, Nano One's technology is immune to China's trade and technology controls. This positions the company to enable localized LFP production and help battery manufacturers de-risk their supply chains.

The company has already proven the scalability of its technology with a pilot demonstration facility in Quebec - the only one of its kind outside Asia. Nano One has garnered support from the governments of Canada, the U.S., British Columbia, and Quebec, along with strategic investments and collaborations with major players such as Rio Tinto, Sumitomo Metal Mining, and engineering firm Worley.

As CEO Dan Blondal explains, "We were already doing everything to decouple from China anyways. But what [China's policy] does do is it changes really the appetite, the impetus and the speed at which our potential customers want to move." The current geopolitical tensions are expected to accelerate the adoption of Nano One's technology, as battery and car makers seek secure, domestic supply chains for critical battery materials.

Nano One's value proposition is not only geopolitically relevant but also economically compelling. The company's one-pot process provides an estimated 30% reduction in capital and operating costs and uses 80% less energy than traditional methods. While near-term margins may be higher due to supply chain disruptions, the long-term competitiveness of Nano One's technology lies in its ability to enable high-volume, low-cost LFP production.

Investors have a timely opportunity to gain exposure to the burgeoning LFP battery market through Nano One Materials. The company's innovative technology, strategic partnerships, and strong government support position it as a key player in the global transition towards localized, sustainable battery production. As the world seeks to reduce its dependence on Chinese supply chains, Nano One is poised to play a pivotal role in shaping the future of the lithium-ion battery industry.

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View Nano One Materials' company profile: https://www.cruxinvestor.com/companies/nano-one-materials

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Interview with Jay Chmelauskas, President & CEO of Camino Minerals Corp.

Recording date: 8th January 2025

Camino Minerals is advancing its copper portfolio through a strategic acquisition in Chile while pursuing exploration success in Peru. The company has announced the acquisition of the fully permitted Puquios copper project in Chile through a 50/50 partnership with Nittetsu Mining, where Nittetsu will contribute cash for their half while Camino will pay in shares.

The Puquios project is positioned for near-term production, with a timeline of 2-3 years from purchase to first copper output. The project will require 6-12 months for debt financing followed by a 24-30 month construction period. Based on historical definitive feasibility study work, Puquios is expected to produce 9,000 tonnes of copper per annum over a 10-14 year mine life, utilizing SX-EW processing to mine an enriched chalcocite-oxide resource.

The project's development is significantly de-risked through the partnership with Nittetsu Mining, who will take over as operator once a production decision is made. Nittetsu brings valuable operational synergies, as they are currently building their own $400M copper mine just 50 kilometers from Puquios.

In parallel, Camino is advancing its Los Chapitos copper project in Peru, where Nittetsu has already invested $7 million to earn a 35% stake. The company plans to resume drilling in January, targeting 11 high-priority targets. The property shows significant exploration potential, with two major deep-seated structures identified across its 12-kilometer length. The project's prospects have been further validated by mining giant Rio Tinto's recent staking of ground along the same structural extensions.

CEO Jay Chmelauskas, who is personally taking a 10% stake in the company's current financing round, sees significant opportunity in the copper market. The company is positioning itself to capitalize on projected copper supply deficits driven by increasing demand from electric vehicles and renewable energy infrastructure.

Puquios offers expansion potential beyond its initial mine plan, with a substantial sulphide deposit beneath the oxide resource that could be exploited through new leaching technologies. The company is also exploring opportunities to incorporate mineralization from local Chilean miners to extend the mine life.

The project benefits from its location in Chile's copper-rich Antofagasta region, with excellent access to power, water, and transport infrastructure. With DFS updates expected by January 2025, Camino is on track to potentially begin construction in 2026, targeting first production by late 2027 or early 2028.

View Camino Minerals' company profile: https://www.cruxinvestor.com/companies/camino-minerals

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Interview with Shane Williams, President & CEO of West Red Lake Gold Mines

Our previous interview: https://www.cruxinvestor.com/posts/west-red-lake-gold-mines-tsvxwrlg-nears-2025-production-at-flagship-madsen-gold-project-6485

Recording date: 7th January 2025

West Red Lake Gold Mines (WRLG) offers a rare and attractive investment opportunity as a near-term gold producer with a clear path to low-cost, high-margin production. The company's flagship Madsen Mine in the world-class Red Lake district of Ontario, Canada is on track to pour first gold in mid-2025 based on a recently completed pre-feasibility study (PFS). At a conservative gold price of US$2200 per ounce, the PFS demonstrates exceptional economics including an after-tax NPV5% of $315 million, average annual free cash flow of $70 million, and a rapid payback driven by a robust 255% IRR.

One of the key differentiators for the Madsen project is the substantial infrastructure already in place. Previous operators invested over $450 million in underground development, a 600 tonne per day mill, and surface facilities prior to West Red Lake Gold's acquisition. As a result, the remaining capital to first production is estimated at only $95 million, a fraction of what comparable stand-alone development projects require. This unique aspect significantly de-risks the project from a financing standpoint and translates to a much quicker path to positive cash flow for investors.

West Red Lake Gold Mines' management team has taken a disciplined and pragmatic approach to advancing the asset. Over the past 18 months, the company has effectively been operating in a pre-production environment, putting all the necessary systems and processes in place to ensure a smooth transition to commercial operation. The team's focus on operational readiness and proactive de-risking initiatives such as test mining, bulk sampling, and detailed definition drilling set West Red Lake Gold apart from many of its junior mining peers.

While the PFS outlines an initial seven-year mine life at an average production rate of 67,500 ounces per annum, this only scratches the surface of the geological potential at Madsen. The mine plan is confined to three main zones near existing infrastructure and does not include a number of high-grade satellite deposits or the deeper 8 Zone which management views as a potential game changer. These areas offer ample opportunity to both expand the production profile and extend the mine life in the years ahead.

West Red Lake Gold's strategic focus is on margin over volume. With all-in sustaining costs estimated at $1100 per ounce, Madsen is expected to generate robust 57% operating margins at current gold prices. Management sees tremendous opportunity to drive margin expansion over time by blending in high-grade feed from the 8 Zone and selectively toll milling ore from satellite deposits like the Rowan target which grades over 10 g/t gold. The company is also evaluating the use of ore sorting technology which has the potential to significantly upgrade head grades while reducing material movement and processing costs.

The macro backdrop for gold is increasingly constructive. A faltering global economy, persistent inflation, and a reversal in the US dollar and real interest rate cycle are all supportive of higher bullion prices going forward. At the same time, the gold industry is facing a dearth of new development projects due to a lack of new discoveries, ESG permitting challenges, and inflationary capital pressures. Against this backdrop, West Red Lake Gold Mines represents a scarce and timely investment opportunity - a high-margin, fully-permitted development asset in a tier-one jurisdiction with a clear path to near-term cash flow.

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Learn more: https://cruxinvestor.com/companies/west-red-lake-gold-mines

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Interview with Bo Sears, CEO of Helix Exploration

Our previous interview: https://www.cruxinvestor.com/posts/helix-exploration-lsehex-drilling-for-helium-to-commence-in-montana-targets-production-by-2025-5753

Recording date: 7th January 2025

Helix Exploration is positioning itself as a pure-play helium producer at a time when the market faces critical supply constraints. The company recently acquired a helium processing plant for $500,000, representing a significant discount to the $4 million cost of building a new facility.

The company's flagship Rudyard field in Montana has proven reserves of at least 300 million cubic feet of helium, valued at approximately $200 million at current market prices of $400-500 per thousand cubic feet (mcf). This valuation starkly contrasts the company's current market capitalization of £20 million. The field's production features a commercially attractive helium concentration of 1.1%, with inert nitrogen balance, simplifying the processing requirements.

Helix plans to bring its first well into production by mid-summer 2025, with the recently acquired pressure swing adsorption (PSA) plant being relocated to Montana. The company also plans to drill 2-3 additional wells in 2025, each costing $1.2 million to drill and complete.

The broader helium market context makes this development particularly timely. Helium is a critical, non-substitutable element for high-tech manufacturing, particularly in semiconductor production and MRI machines. Over the past two decades, the market has experienced several severe shortages, with prices spiking to $1,000/mcf during supply constraints.

Current market dynamics suggest these supply challenges may intensify. Major industrial gas companies, which historically controlled helium production as a byproduct of natural gas operations, are already operating at maximum capacity. Meanwhile, Russia's exclusion from Western markets has removed a significant supply source, while Algeria and Qatar remain the primary international producers.

The U.S. CHIPS Act is expected to drive increased domestic demand as new semiconductor manufacturing facilities are built. These facilities require substantial helium volumes for silicon wafer production, adding pressure to an already constrained market.

CEO Bo Sears said, "Without helium, we are living in the Stone Age. It is so valuable in chip manufacturing and in MRI scanners. The high-tech list goes on and on." The company's strategic advantage lies in its focus on primary helium production, rather than helium as a byproduct, and its ability to scale production through its modular PSA plant design.

This combination of proven reserves, near-term production capability, and favorable market dynamics positions Helix to capitalize on the growing demand for domestic helium supply in an undersupplied market.

View Helix Exploration's company profile: https://www.cruxinvestor.com/companies/helix-exploration

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