The Northern Miner August 2024 Vol 110 Issue 8

Canada

Victoria Gold worker caught in landslide recounts ‘violent ride’

EXCLUSIVE | Heap leach accident, landslide halt operations at Eagle mine

BY BLAIR MCBRIDE

Aheavy equipment operator

who was caught in the June 24 heap leach pad accident at Victoria Gold’s (TSXV: VGCX) Eagle mine in Yukon says he’s

shaken up and has filed a workers’ compensation board claim for neck injuries and post-traumatic stress disorder.

Injuries were limited in the heap leach pad accident that dislodged 4 million tonnes of ore, with about 2 million tonnes going over the pad’s

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“I needed to hold on because when I

sliding

started

down

the

mountain it was very steep. I braced for impact and slid down the side of the mountain about 200 metres.”

OPERATOR

embankment, according to estimates by the Yukon government. Between 280,000 and 300,000 cubic metres of cyanide-containing solution escaped the pad.

The operator is one of several current and former Victoria Gold workers who have told The Northern Miner about alleged unsafe practices at the mine. These include the company trying to subvert Workers’ Safety and Compensation Board (WSCB) claims, pushing off repairs, and failing to enforce drug and alcohol policies, they claim. (See story on page 13.)

The Northern Miner has agreed not to name the employee, however the company would be aware of his identity through his WSCB claim. According to paperwork shown to the publication, the claim was filed on June 25 after the worker saw an onsite doctor on June 24 and 25.

As of press time on July 29, Victoria had issued three news releases since the accident. It has not responded to multiple requests for comment by The Northern Miner Operations were suspended at Eagle, Yukon’s only producing gold mine, after the company reported that a failure at the pad caused

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SPECIAL SECTIONS » Canada’s Top 10 35 » US Top 10 39

n US lags in mine timelines

According to a new report by S&P Global, the United States has the second-longest lead times in the world for developing a new mine.

Mines in the U.S. go from discovery to production in an average of 29 years, longer than in any other country except Zambia at 34 years. Canada is not much better at around 27 years.

“The long U.S. lead times stand in contrast to the country’s sizeable resource base,” the report reads. “The U.S. copper endowment (more than 275 million metric tons in reserves and resources) is comparable to those of Canada and Australia combined and sufficient to satisfy domestic demand for the foreseeable future.”

The report also shows that the United States receives less mining exploration budgets than its advanced economy peers. Investment has been 57% higher in Australia and 81% higher in Canada over the past 15 years. There’s greater certainty that mines can be developed in both countries, S&P said.

The report examines 268 mines worldwide to determine average development times from discovery to production.

Only three mines have come into production in the United States since 2002.

Ghana, the Democratic Republic of Congo, and Laos had some of the shortest development times in the world, at roughly 10 to 15 years, while Australia had an average of 20 years.

The report found that a high rate of litigation against U.S. mining projects has dampened exploration budgets in the country.

BY

The central-Asian country plans to raise the rate to 9% from 6% starting Jan. 1, according to state mining company Kazatomprom.

Then in 2026, a graduated structure based on output would see the tax rate increase to 18% for more than 4,000 tonnes of uranium concentrate U3O8 produced and as little as 4% for less than 500 tonnes, the miner said July 10.

An additional rate of 0.5% is to be charged if market prices are more than US$70 per lb., to as much as 2.5% more at greater than US$110 per lb., Kazatomprom said. The government introduced the measures July 1, the miner said.

The price of uranium was at US$82.45 per lb. near press time, according to Trading Economics. The heavy metal’s price roughly doubled to US$106 per lb. in January from last July.

The country’s tax rates are among the lowest in the world and can be raised by 10-20%, economy minister Alibek Kuantyrov said at the time, according to Brussels-based Nucnet news.

Cameco also has exposure to Kazakstan via its Inkai joint venture with Kazatomprom.

Stock prices in most uranium producers rose after the tax announcement on concerns of supply disruptions in the leading producer after it already reported a shortage of sulphuric acid to process ore.

BY NORTHERN MINER STAFF

n Grassy Narrows court claim

A northern Ontario First Nation that has fought pulp and paper mercury poisoning for decades is taking the province to court for more consultation on all mining claims.

The Grassy Narrows First Nation, formally known as the Asubpeeschoseewagong Anishinabek, filed papers on July 12 with the Ontario Superior Court against the provincial Min-

ing Act because it allows claims without Indigenous consent.

That violates Canada’s Constitution and the United Nations Declaration on the Rights of Indigenous Peoples, the community says.

Grassy Narrows wants the court to issue an order preventing Ontario from approving further mining claims in or around its territory, rescind those it’s already granted and establish a timeline for consultation.

There are some 10,000 mining claims in Grassy Narrows’s interim area of interest for mining over more than 2,850 sq. km in the province’s far northwest, according to the court filing.

“We will protect our land and we just want to reiterate that any activity that’s in Grassy Narrows territory, we should be consulted, we should sit down together, and we should be informed,” Grassy Narrows Chief Rudy Turtle said in a news conference at Queen’s Park on July 12.

“These practices have to change. It’s damaging our land. We want our land to remain intact because of our cultural practices, our way of life.”

The case follows a British Columbia Supreme Court ruling last September saying that province must change its rules to ensure First Nations are consulted before prospecting claims are granted to explorers. The court gave B.C. 18 months to change its law.

In a separate move in early July, Grassy Narrows pressed its case about pulp and paper mercury poisoning dating from the 1960s and ’70s to the Inter-American Commission on Human Rights.

In 2018, it declared that mining, staking and exploration was banned on its territory without consent. That followed the community’s 2007 moratorium on any industrial activity without its approval.

BY NORTHERN MINER STAFF

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EDITORIAL

Confusion and consternation on critical minerals

BY ALISHA HIYATE

What started out as optimism two years ago when the federal government turned its eye to critical minerals, introducing a strategy, incentives, and funding, and pledging faster permitting for mines, has turned into confusion and consternation.

In a classic case of ‘be careful what you wish for,’ the industry fears the government’s new attentions could actually end up hurting the sector.

“We’ve always been asking for (the federal government) to become more involved and recognize the importance of mining,” Dean McPherson, head of global mining with the TMX Group told The Northern Miner in July. “But we didn’t anticipate that they would be taking so many unilateral decisions and policies that lacked consultation and sort of provided more uncertainty to the industry.

“I would say over the past two years we’ve had a lot of reasons to be concerned about the future of Canada’s dominance in the mining space.”

What are these unilateral changes?

Investment overhaul

The industry has complained about surprise changes to the capital gains tax and flow-through funding rules this year. But the most consequential are changes to the Investment Canada Act (ICA) that allow Ottawa to restrict funding from foreign state-owned enterprises or companies connected to them.

Seemingly, no deal involving Chinese critical minerals has been too small to escape the feds’ notice under the ICA. Fed scrutiny and the prospect of a drawn-out approvals process forced SRG Mining and Solaris Resources to cancel their respective $16.9-million and $130-million deals with Chinese companies.

The deals would have given Carbon ONE New Energy Group and Zijin Mining equity stakes of under 20% and representation on the juniors’ boards (two seats in SRG’s case and one in Solaris’). SRG, now known as Falcon Energy Materials, has since redomiciled to the United Arab Emirates where it anticipates fewer barriers to financing.

Meanwhile, Chinese funding has in the past given Teck Resources and First Quantum Minerals — both among Canada’s largest miners – a lifeline in tumultuous commodities markets, plugging the funding hole at times when interest from other investors has flagged.

It’s not as though Ottawa hasn’t warned repeatedly that Chinese investment in critical minerals, at a time when the West is trying to build capacity lost to China decades ago, is a no-go.

“We’ve been pretty clear that we are not interested in investment generally from state-owned enterprises,” Jonathan Wilkinson, minister of natural resources said at this year’s PDAC in response to a question from The Northern Miner’s Colin McClelland.

That was just after changes to the ICA, which can be applied regardless of transaction size, came into force in March. At the conference, Wilkinson extended that further, saying the feds would be looking at all deals with Chinese SOEs and related companies, including offtake agreements.

Need for clarity

McPherson and others say that while Canada has to protect its national interests, it’s unclear why the feds are applying national security regulations to projects outside of Canada.

“After Solaris, it became a different discussion because that was an example which nobody could understand,” Krisztian Toth, a partner at law firm Fasken said, noting the project’s location in Ecuador. “It was not a controlling position, it was a very simple investment.”

More recently, Minister of Innovation, Science and Industry FrançoisPhilippe Champagne introduced even more uncertainty when a July 4 statement he issued seemed to cast doubt on the approval of any foreign takeovers of large Canadian miners with critical minerals assets.

Champagne’s statement, intended to clarify Canada’s stance on foreign investment in the sector, instead provoked more questions.

While Wilkinson clarified in a press conference a day later that this would apply to “a very few” Canadian companies — those that are headquartered here, carry out research and development in-country, and have large-scale operations in Canada — McPherson notes that the guidance hasn’t yet been formalized.

“Being someone who has worked in the in the industry for a while, I do know that something that’s not put on paper and recorded officially cannot be taken to the bank,” McPherson said. “So while I take this clarification with goodwill,it would be great to see Minister Champagne come out and provide the clarification that the market is asking for.”

The Northern Miner has emailed Champagne’s office to ask whether it plans to issue additional guidance, but had not received a response by press time.

It’s not too late for Ottawa to address the industry’s concerns. After a tough 2023, financing figures for this year on the TSX and TSXV are looking up, according to TMX Group figures.

But if the sector is really as strategically important to Canada’s economic, climate and national security goals as the government says, it needs to do a better job of communication and coordination with the industry it’s depending on to deliver. TNM

COMMENTARY

Best resource investing bets for a Trump or Harris win

BY JAMES COOPER

Since the July 13 assassination attempt on former president and current presidential candidate Donald Trump in Pennsylvania, there’s been a proliferation of ‘Trump Trade’ ideas circulating across the media.

Up until recently, a Trump re-election in November was seemingly baked in. Investors rushed to align their portfolios for a Republican victory.

But now that U.S. President Joe Biden has withdrawn from the presidential race — an announcement that came on July 21 — Vice-President Kamala Harris, a younger candidate, looks set to inject new vigour into the scuttled Democratic Party.

With that, the ‘Trump Trade’ is cooling.

Early polls already hint that a Harris vs. Trump election will be tight. That’s according to Reuters on July 23.

So, what does that mean?

Investors are now as clueless as ever regarding who might win in November.

It comes back to what Warren Buffett says about mixing politics with your investment strategies… Don’t do it!

And it looks like the Oracle of Omaha was spot on again.

Volatility into November

In Australia, we’re somewhat sheltered from the spectacle unfolding in the States. But as commodity investors, we can’t ignore it altogether.

The world’s largest economy leads the Western rhetoric on war, geopolitics, renewables, nuclear power, and trade tariffs. All of these ‘big issues’ impact the commodity market.

Take lithium. A Democratic win will likely lead to further development of renewables, EVs, and lithium-ion batteries. That could cause a rally in lithium stocks on the ASX.

However, under a Republican administration, fossil fuel companies would flourish, given Trump has been a vocal supporter of domestic oil and gas production.

Echoing former Alaskan Governor Sarah Palin, Trump’s energy policy can be summarized in three words: “Drill, baby drill!”

Trying to guess who might win in this coming election and aligning your portfolio accordingly is a fool’s game.

Each candidate has diverging policies with varying implications for commodity markets, particularly those linked to energy.

Yet, through the fog, some political agendas look far more certain regardless of who wins in November.

Temperature rises on China-US relations

At the Republican National Convention in mid-July, Trump and his newly minted running mate, J.D. Vance, ramped up the “America First” narrative. Not surprisingly, both politicians were keen to parade China as the bad guy.

There’s little doubt that a

Trump-Vance leadership would seek to intensify trade wars against China, something Trump initiated when he took office in 2017.

Nothing rallies a nation like a common enemy, and Trump looks set to juice this strategy again. But amping up hostilities could be very good for one area of the commodity markets – critical minerals.

China holds a firm grip on supply of rare earths, graphite, and cobalt thanks to its mining and processing dominance. So, why would these types of stocks do well under rising tensions?

Critical minerals remain China’s most effective tool against Western trade hostilities. For the most part, it’s kept this ace up its sleeve.

However, as pressure mounts on the Middle Kingdom, the probability of China weaponizing its trade dominance over these key materials grows. These minerals are crucial for modern-day manufacturing, from defence, tech and renewables.

After a 12-month hiatus, stocks tied to this group of commodities could return with a vengeance if Trump raises the temperature on U.S.-China relations.

The key stocks to watch will be companies already in production or with capacity to supply the West with an alternative supply within three to five years.

A few names pop out here, including Lynas (ASX: LYC), Arafura Rare Earths (ASX: ARU) or the advanced graphite developer Renascor (ASX: RNU).

What about the other side of the political divide?

This is where you don’t need to apply much political guesswork.

The hardline stance against China is one of the few bipartisan policies among Republicans and Democrats.

While the world barely knows what to expect from Harris, so far, it looks as though she’ll follow along with Trump’s Chinabashing style.

Here’s an extract from one of her speeches in late 2022 after visiting Japan:

“China is undermining key elements of the international rules-based order. China has challenged the freedom of the seas. China has flexed its military and economic might to coerce and intimidate its neighbours.”

“We will continue to fly, sail, and operate undaunted and unafraid wherever and whenever international law allows.”

And in 2019, she co-sponsored the Hong Kong Human Rights and Democracy Act, which aims to promote human rights in Hong Kong and sanction officials involved in “undermining Hong Kong’s fundamental freedoms and autonomy.”

These statements certainly aren’t winning any friends in Beijing.

As far as I can tell, the U.S.’s ramp-up against China is as close to a sure bet as you can get, regardless of who wins.

TNM

— James Cooper is a geologist based in Australia who runs the commodities investment service Diggers and Drillers. You can also follow him on X @JCooperGeo.

BY BLAIR MCBRIDE

The Klondike Gold Rush and later exploration and production elevated the Yukon as a legendary source of gold. But the territory always hosted large critical mineral deposits, and it’s now emerging as a hot spot for energy transition metals. As market conditions and government incentives increasingly favour critical mineral development, exploration companies’ resources for copper, nickel and zinc are reaching parity and even overtaking gold and silver.

Using data from the Yukon Geological Survey, The Northern Miner illustrates how resources of four critical metals sought in the territory have grown over the last 20 years relative to the precious metals.

Barrick consistently delivers sectorleading returns to its shareholders while the benefits it generates for all stakeholders drives economic development and social upliftment in its host countries. Its ability to sustain the profitability which enables this is secured by the world-class growth projects embedded in its asset portfolio. Organic growth alone is expected to increase its attributable gold and copper production by some 30% by the end of this decade, a likely peerless achievement.

commentary &analysis

Friedland warns of copper ‘crisis’ as mine costs soar

RULE SYMPOSIUM | Investors wait for worm to turn in cyclical commodities sector

BY HENRY LAZENBY

Boca Raton, Fla. — Miners and analysts gathered in a sweaty beach city in southeast Florida last month to ponder why the industry gets the cold shoulder from most investors.

Copper in particular faces a forecasted supply chasm, mining mogul Robert Friedland told the Rule Symposium via a pre-recorded video interview from Telluride, Colo.

“The world is suffering from a shortage of copper metal,” the founder and executive co-chair of Ivanhoe Mines (TSX: IVN) said. But copper prices “fall woefully short” of supporting the development of new projects. The current price is around US$4.60 per pound.

“We see a crisis coming in physical markets and a requirement for much higher prices to enable most of the copper projects that are in development to have a prayer coming in.”

Humanity would have to mine more copper in the next 20 years than we have in human history to meet surging global demand on the back of the energy transition, Friedland told the conference, organized by resource speculator and founder of Rule Investment Media, Rick Rule.

Meanwhile, the cost of new mines has soared. Friedland said recent copper mine builds in Chile and Peru, jurisdictions once credited for having among the biggest and cheapest copper mines, have seen costs soar to about US$45,000 per tonne of daily installed capacity due to inflation, steadily falling grades and dropping output.

While some analysts see nearterm respite for soft copper prices, developers need a sustained price gain to make long-term investment decisions. Last week, BMO Capital Markets and Citigroup analysts

“Gold has rallied 24%, copper 27%, silver 49%, and uranium 60% — indicators of a massive transition regardless of economic ground realities.”

NOMI PRINS FOUNDER OF PRINSIGHTS GLOBAL

said copper prices may rise past the US$10,000-per-tonne (US$4.54 per lb.) mark again in the near term due to a Chinese smelter supply shortage and grid investments in China. Copper posted a record high of US$5.11 per lb. in May.

The International Energy Agency projects that copper demand will increase to 36.4 million tonnes by 2040 from 25.9 million tonnes last year, driven by its growing application in clean technology and electric grid expansion. However, analysts have warned for years that copper prices aren’t high enough to support new builds.

Friedland underlined the critical role of copper in the global economy, given its significance in electrification and renewable energy, and major new demand for modern warfare.

“The global economy needs to find five or six new Kamoa-Kakulasized projects yearly to maintain a 3% gross domestic product growth rate over the next two decades,” Friedland estimated.

Ivanhoe is doing its part to address the copper deficit chal-

lenge with its world-class KamoaKakula copper project in the Democratic Republic of Congo (DRC). The mine is ramping up, producing over 100,000 tonnes of the red metal in the June quarter. The company’s guidance for 2024 is 440,000-480,000 tonnes, with the outlook set to top 600,000 tonnes next year.

Contrarian approach

The current state of the copper market is a consequence of chronic historical underinvestment in production, compounded by increasingly scarce resources, the conference heard.

Symposium host Rule noted that’s a repeated pattern in natural resources that will continue to lead to more boom-and-bust cycles.

Rule pointed to dramatic increases in commodity prices during the 1970s due to underinvestment: oil prices rose from US$2.50 to US$30 per barrel, gold from US$35 to US$850 per oz., and copper from US30¢ to US$1.60 per pound.

Drawing parallels to the present, Rule pointed out that the U.S.

dollar lost 85% of its purchasing power in the 1970s, a situation he believes is re-emerging due to US$6 trillion in quantitative easing in recent years and federal on and off-balance sheet debt of more than US$100 trillion.

“Investing in underappreciated sectors presents an opportunity to invest in high-quality companies at a discount,” Rule said.

“The cure for high prices is high prices. The cure for low prices is low prices,” he said, repeating one of his favourite mantras.

Rule stressed the importance of being a contrarian investor, suggesting that attendees look for value in areas where others see risk or disinterest.

He pointed out that generally, the current sentiment around sub-$2 billion market cap mining companies is notably poor, presenting an opportunity to invest in high-quality companies at a discount.

“You can buy the serially successful companies at a small discount to the serial losers. That’s a really good deal if you think about it. The market has been completely

undiscriminating with regards to the quality of leadership,” he said.

Commodities rally

The concentration in the U.S. stock markets poses a big risk to economic stability as a small number of issuers are driving most gains, James Rickards of Paradigm said in the closing session at the conference. About 70% of the stocks in the S&P 500 are down for the year despite the index hitting new highs, driven by a handful of tech stocks.

Still, commodities have seen big gains this year, macroeconomist Nomi Prins of Prinsights Global said during the panel.

“Gold has rallied 24%, copper 27%, silver 49%, and uranium 60% — indicators of a massive transition regardless of economic ground realities,” she said.

Perhaps preaching to the converted, she noted natural resources have a critical role in future economic stability and growth.

“These assets have a tremendously positive trajectory from here, driven by modern geopolitical and energy-related needs.” TNM YMP

aims to bridge the mining talent gap

EDUCATION | 45 scholarships up for grabs with deadline to apply set for Aug 31

BY HENRY LAZENBY

When Stephen Stewart first joined the mining world in the early 2000s, he stepped into an industry facing a yawning generational talent gap.

“Back in the day, I looked around and realized everyone was either heading to retirement or had stories older than my entire career!” he said in an interview.

Hoping to meet similar-aged peers, Stewart, who’s now chair of Canadian exploration and development company The Ore Group, realized he might need to start his own organization. His lightbulb moment led him to get involved with the Young Mining Professionals networking group, which originated in Vancouver. Stewart helped establish a Toronto branch in 2015.

In 2017, Stewart and Anthony Moreau, CEO of American Eagle Gold (TSX: AE; US-OTC: AMEGF) started the Young Mining

Professionals (YMP) Scholarship Fund. Now in its sixth year, the scholarship attracts 23 sponsors offering 45 scholarships rang-

“The talent gap is the mining industry’s number one concern. Addressing this issue is critical for the aging industry’s future.”

STEPHEN STEWART, CHAIR OF THE ORE GROUP

ing between $1,000 and $10,000, including a $5,000 award by The Northern Miner, to exceptional mining students.

For the industry

Barrick has been the fund’s staunchest supporter since its inception, Stewart noted. Driven with a ‘by the industry for the industry’ mindset, the broad corporate backing amplifies the fund’s financial capacity

Other top-tier opportunities with major miners are available such as $10,000 awards by Agnico Eagle Mines (TSX: AEM; NYSE: AEM) and Barrick Gold (TSX: ABX), and several $5,000 awards from Equinox Gold (TSX: EQX), O3 Mining (TSXV: OIII; US-OTC: OIIIF), Alamos Gold (TSX: AGI; NYSE: AGI), B2Gold (TSX: BTO, NYSE-A: BTG) and Kinross Gold (TSX: K; NYSE: KGC), among others.

The closing panel at the Rule Symposium, from left Rick Rule, James Rickards, Albert Lu, Nomi Prins, and Adrian Day.

HENRY LAZENBY

Former Anglo American CEO Mark Cutifani with Ore Group chairman Stephen Stewart at a recent YMP event. STEPHEN STEWART

Versatile,

commentary&analysis

Is BC’s Haida agreement another ‘legal morass’ for mining?

INDIGENOUS ISSUES | Constitutional questions swirl around province’s April move

BY HENRY LAZENBY

British Columbia’s formal rec-

ognition of the Haida Nation’s Aboriginal title over a group of islands near the Alaskan panhandle is a reconciliation milestone. But it’s raising legal and economic questions that experts say could end up in the Supreme Court.

On April 14, the B.C. government officially gave the Haida Aboriginal title over Haida Gwaii, formerly the Queen Charlotte Islands. The title confers hereditary rights that predate the arrival of Europeans and include rights to possession, use, and economic benefits of the land.

The Haida say the pact just puts in writing how the First Nation has always asserted sovereignty over the islands. Constitutional lawyers contend the province has exceeded its authority, and the issue could lead to a constitutional challenge.

“The province has created considerable uncertainty regarding the long-term viability of Crown land tenures on Haida Gwaii and elsewhere in British Columbia,” Thomas Isaac, a Vancouver-based partner specializing in Aboriginal law at Cassels Brock & Blackwell, said in an interview.

Recognizing Aboriginal title over fee simple lands — also known as full private property ownership rights and a fundamental component of B.C.’s real property system — while maintaining private property rights is legally contradictory, Isaac said.

The Haida agreement is particularly concerning for the mining industry. It’s wary that B.C., ranked second in Canada in terms of exploration and development spending, with the largest gold major, Newmont (TSX: NGT; NYSE: NEM), investing in the Red Chris and Brucejack mines in its northwest Golden Triangle, could

“This situation creates significant uncertainty for businesses, especially in the mining sector, which relies on stable Crown land authorizations.”

export the concept and tensions across the country.

Progressive BC

B.C. has been a leader in encouraging First Nation participation in projects, passing the United Nations’ backed Declaration on the Rights of Indigenous Peoples Act into provincial law in November 2019, before other jurisdictions. However, not all of its legislation has been progressive. In September, the BC Supreme Court ruled that the province’s mineral claimstaking regime didn’t meet its duty to consult with Indigenous groups. That ruling triggered an 18-month legal review to include a consultation framework.

The Haida First Nation declined several requests for comment in June, saying Haida President Gaagwiis Jason Alsop was unavailable. The Nation said it stands by comments it made in April at the time of B.C.’s move.

“We have always asserted our sovereignty to Haida Gwaii and the surrounding waters,” Alsop said then. “With this agreement in place, we can work toward imple-

menting our title without conflict, based on yahguudang/yahgudáng (respect), with our ownership being properly recognized.”

The B.C. Ministry of Indigenous Relations and Reconciliation says the recognition, known as the Gaayhllxid • Gíhlagalgang “Rising Tide” Haida Title Lands Agreement, encourages negotiation over litigation.

“Recognition of Aboriginal title has been on a trajectory in the courts for 40 years,” communications director Leanne Ritchie said in an email to The Northern Miner “Governments have been advised to stop litigating and to negotiate — find solutions that work for people.”

BC template

Haida Gwaii has seen historical mining for gold, copper, and coal. Most activity occurred in the late 19th and early 20th centuries around the community of Tlell on Graham Island, where gold mining occurred. Coal mining centred around the Skidegate Inlet area.

Premier David Eby appears to support spreading Aboriginal title across the province and the country.

“The stars are aligned in this moment, and if we can — on both sides — demonstrate that this is successful, then I think it makes it more possible to do it in other places in British Columbia, and also in Canada,” Eby told Canadian Press in April. “It’ll provide a bit of a template for everybody about what the world of the possible is.”

Vancouver-based lawyer Robin Junger, counsel on Indigenous law at McMillan, says the precedent set by recognizing Aboriginal title is unclear. There are still issues following the Supreme Court’s recognition of some Tsilhqot’in Nation territory in 2014, which raised the bar on the Crown’s duty to consult and accommodate Aboriginal interests on traditional lands, he

noted. These include operational uncertainties for businesses struggling with permit delays and confusion over regulatory authority. He predicts the Haida islands will fall into a “legal morass” of complexity like the Tsilhqot’in Nation.

“Nobody knows who’s in charge and who’s doing what, Junger told The Northern Miner. “Ten years later, it’s a mess. Nobody knows. It’s completely unclear, and people are losing their businesses… now they can’t get their permits in a timely way or on the same terms.”

Question of consent

The Haida title agreement states that B.C. will maintain jurisdiction over natural resources until transferred, meaning current exploration and mining projects will continue. Still, future projects will likely require the Haida Nation’s consent. Privately owned land is to remain under provincial jurisdiction, with no changes to local government control or public services. Existing interests on Crown land in Haida Gwaii will continue under current terms for two years, but their future is unclear, Isaac says.

“Where a private property owner seeks an approval or authorization from the Crown over fee simple lands, given the recognition of Aboriginal title to those lands, the province will be required as a matter of law to obtain the consent of the Aboriginal title holders,” Isaac explained. “This situation creates significant uncertainty for businesses, especially in the mining sector, which relies on stable Crown land authorizations.”

Junger criticized the legislation requiring provincial authority under the Land Act to be exercised in a way that is “consistent with Aboriginal title” for introducing significant ambiguity into governance and regulatory processes.

The Haida Nation will gain deci-

sion-making power that alters the legal and economic landscape in ways that may not be immediately clear to the public or even fully understood by those affected, Junger said.

Constitutional authority

The government says the co-existence of fee simple and Aboriginal title is possible because the Haida Nation has consented to fee simple interests and other interests and rights in relation to land. The province asserts it is wholly within its constitutional authority to enter the agreement and to bring forward legislation to implement it.

“The Haida Title Lands Agreement was developed with leading legal minds in constitutional, Aboriginal and treaty law,” Ritchie said. “This agreement and legislation demonstrate how creative approaches can solve longstanding issues.”

There will be no change to private property rights, she said.

“The province and Haida Nation will negotiate how different aspects of land and resource governance shift to Haida Nation, starting with protected areas and forestry.”

The B.C. public are generally in favour of the agreement, with a June Angus Reid poll showing 55% support. However, only 30% said it should be a precedent for future land transfers.

While the B.C. government said the unique conditions of Haida Gwai justify the agreement – there aren’t any overlapping Aboriginal rights claims, half of the population is Haida, and the community has a 50-year record of self-governance –Junger says others will try to copy the agreement.

“However unique the province may claim Haida is, other Indigenous governments will likely demand the same type of agreement.”

The Pesuta shipwreck on Haida Gwaii’s Graham Island. IMAGE COURTESY OF KYLE GRAHAM.

Nickel price to see steady rise on EV demand — after a flat 2024: Fitch

CRITICAL METALS | Analysts forecast US$18,000 per tonne

BY MINING.COM STAFF

Nickel prices won’t recover this year, but neither will they tank, according to a new report by BMI, a unit of Fitch Solutions.

Analysts with the credit risk consultancy have maintained their price forecast for 2024 at US$18,000 per tonne (US$8.16 per lb.) as excess supply continues to drag prices down from 2022 levels. At press time, the price was around US$15,516 per tonne (US$7.03 per pound).

Despite the current pressures on nickel prices, Fitch expects upside risks — including potential supply disruptions and a weakening of the U.S. dollar later in the year — to place a floor under prices through 2024. After that, the research and data firm sees a steady rise in prices to 2028 backed by EV battery demand.

Price volatility

Nickel prices plummeted last year,

On the supply side, Fitch anticipates that a significant increase in 2024 (as seen in 2023) fed by production growth in Indonesia and China, will be the core driver of price declines.

with the 2023 average annual price dropping by 15.3% to US$21,688 per tonne from US$25,618 per tonne in 2022. The decline was attributed to an oversaturated market coupled with lacklustre demand.

Fitch expects similar dynamics to cap price growth in 2024 as production in key producers mainland

China and Indonesia surges ahead.

Despite a brief rally earlier in the year that pushed prices to a year-todate high of US$21,615 per tonne on May 20, nickel prices closed at US$17,291 per tonne on June 28, weighed down by deteriorating investor sentiment, Fitch noted.

This level represents a year-todate increase of 4.3% but also a 15.5% month-on-month contraction as market optimism eases. The dramatic reversal in market sentiment since early June has the potential to pressure nickel prices further over last year’s third quarter.

On the supply side, Fitch anticipates that a significant increase in 2024 (as seen in 2023), fed by production growth in Indonesia and China, will be the core driver of price declines. Fitch projects a surplus of 253,000 tonnes in the global nickel market in 2024, up from a surplus of 209,000 tonnes estimated for 2023.

This glut is primarily attributed to Indonesia’s increased production of nickel pig iron and intermediate nickel products, a direct

consequence of heightened investment in its nickel sector following the imposition of a nickel ore export ban in 2020, Fitch noted.

In the first quarter of 2024, Indonesia’s refined nickel production rose 24.7% to 383,000 tonnes, up from 307,000 tonnes during the same period in 2023. Fitch expects production to grow by 17% this year. Outside Indonesia, the world’s second-largest producer of refined nickel, mainland China, registered 2.3% year-over-year growth in the first quarter to 220,000 tonnes.

LME investments

The LME in May approved new Asian nickel brands as a strategic response to address low inventories and reduce the threat of price volatility, Fitch pointed out.

“Along with the unraveling of Xiang Guangda’s short position that led to prices momentarily breaching US$100,000/tonne, low stocks were a factor that contributed to the price spike in March 2022 and which continue to pose upside price risks,” Fitch reported.

To correct low inventory levels and build up liquidity, Fitch noted, the LME resumed Asian trading hours on March 20, 2023, after halting them last year following the price surge in March 2022. This came alongside other measures aimed at stabilizing the market, such as setting daily trading limits and accelerating the process by which new nickel brands can be delivered on LME contracts.

Long-term outlook

Beyond 2024, Fitch expects nickel prices to rise steadily to 2028 to around US$21,500 per tonne as the market surplus narrows and EV battery demand for nickel surges. Upward pressure on prices will be partially offset by the continued ramp-up of output in Indonesia, driven by technical advances in converting lower-grade Class 2 nickel ore into higher-grade Class 1 nickel that can be used in batteries. Fitch forecasts prices to reach US$26,000 per tonne in 2033 as the market surplus shrinks to 24,500 tonnes. TNM

Lithium price boom unlikely to return, analysts say

METAL

OUTLOOK | Fitch sees consolidation ahead

BY HENRY LAZENBY

The lithium market has entered a “new normal” period of stability, with sustained price surges a thing of the past, analysts at FitchSolutions BMI said in a webcast in late June.

“This stabilization is primarily due to a rapidly expanding global supply, which has already pushed the market into surplus,” Sabrin Chowdhury, head of BMI commodities analysis, said from Singapore. “We expect no return to previous highs for lithium. Prices will remain below the peaks of 2022 and 2023 for at least five to 10 years.”

Prices are expected to remain downcast for the next decade, Chowdhury said, an outlook that’s reshaping the industry landscape.

For this year, BMI forecasts mainland Chinese 99.5% lithium carbonate prices to average US$15,500 per tonne, increasing to US$20,000 per tonne in 2025. This starkly contrasts with the over US$72,000 per tonne average in 2022. Similarly, BMI predicts lithium hydroxide monohydrate (56.5% grade) to average US$14,000 per tonne this year and US$20,500 in 2025, down from about US$70,000 per tonne in 2022.

The upshot of extended low lithium prices could be a boon for cost-saving methods and industry M&A, the analysts said. Juniors and developers may have to incorporate new technology, such as direct lithium extraction for brine projects, while the industry’s scores of operators will likely face consolidation.

“Out of 164 total operations in our database, 126 individual com-

panies own these projects,” BMI metals and mining analyst Amelia Haines said on the call. “This creates an optimal environment for mergers and acquisitions, with larger, well-funded miners looking to acquire promising lithium assets to meet growing demand.”

Competitive edge

Technological advancements are poised to impact supply and demand and are fundamental in gaining a competitive edge for entrants to the cutthroat market, the analysts said.

“Relatively new direct lithium extraction technology can potentially reduce production times and environmental impact compared with traditional methods,” senior metals and mining analyst Olga Savina said.

Despite the price decline, many

major producers continue to remain profitable. This is mainly owing to their ability to maintain low production costs. In Australia, for instance, the production cost of mining spodumene is significantly lower for projects like Tianqi Lithium and IGO’s (ASX: IGO) joint Greenbushes mine and Pilbara Minerals’ (ASX: PLS) Pilgangoora. Higher-cost producers Galaxy Resources, Altura Mining and in Canada, Nemaska Lithium, had to curtail production or go bust.

Lithium demand is set to continue its vigorous growth, driven mainly by the electric vehicle (EV) sector. However, advancements such as the rise of lithium –iron phosphate batteries and potential breakthroughs in solid-state batteries, could influence needs, the analysts said.

Global lithium demand from

“We expect no return to previous highs for lithium. Prices will remain below the peaks of 2022 and 2023 for at least five to 10 years.”

SABRIN CHOWDHURY, HEAD OF BMI COMMODITIES ANALYSIS

EVs is expected to increase by about 14% in 2024 and 2025. Worldwide passenger EV sales are forecast to reach 17.6 million units in 2024, up 21.3% year-on-year.

Meanwhile, global lithium production growth is forecast at 16.4% year over year in 2024 to 1.1 million tonnes lithium carbonate equivalent (LCE). It should rise another 19.7% in 2025 to 1.4 million tonnes LCE, Savina said.

By 2028, global lithium mine production and demand are projected to reach an equilibrium at about 1.9 million tonnes, with demand set to overtake supply thereafter.

Australasia

Australia and mainland China will be the primary drivers of produc-

tion growth. Australia, already a leading hard-rock lithium producer, will continue to dominate due to its strong project pipeline, BMI said. Mainland China will keep importing lithium for its battery industry while expanding its domestic production capacity and securing supplies by developing projects overseas.

Emerging players like Argentina and Zimbabwe are also expected to contribute significantly to the global supply.

“Argentina’s growth in the lithium sector looks promising as several major projects begin operation,” Savina said.

Government tailwinds Major economies, including the United States and the European Union, are racing to establish and safeguard critical mineral supply chains. Legislation like the Inflation Reduction Act in the U.S., which provides tax credits for EVs that use critical minerals mined domestically or by free-trade partners, has spurred investment in lithium projects across North and South America.

The European Union’s Critical Raw Materials Act similarly aims to boost onshore production capacity and diversify imports.

“Onshoring mineral production and processing capacity, enhancing recycling capabilities, forming strategic partnerships, and diversifying supply chains are crucial strategies,” Haines said. “These measures aim to reduce external risks and ensure a stable lithium supply for the green energy transition.” TNM

Lithium-rich salt material used for lithium-ion battery manufacturing in the electric vehicle industry. ZETHA_WORK/ADOBE STOCK

indepth

Dead Solaris deal has cash-strapped Canadian miners considering the door

FINANCING | Fed clampdown on Chinese investment could backfire

BY ALISHA HIYATE

Some of Canada’s leading mining law firms say their clients are considering leaving the country because the federal government’s clampdown on Chinese investment has closed off an important funding lifeline.

While deals involving China have been more closely scrutinized for several years — notably since the federal government forced Chinese investors to divest from several lithium juniors with assets outside of Canada in 2022 — the tipping point came just this May.

That’s when Solaris Resources (TSX: SLS; NYSE; SLSR) cancelled a $130-million financing with Zijin Mining after it got hung up in a national security review for four months.

Solaris, which is advancing the Warintza copper project in Ecuador towards a prefeasibility study, pulled the deal after the company’s share price rose well above the transaction price and no longer made sense.

“That this transaction cannot be completed in a reasonable timeframe signals that Canada’s critical minerals policy is counterproductive in relation to foreign assets,”

Fallout

The deal may have died quietly, without the government having to make a decision under the Investment Canada Act (ICA), but the fallout may be far-reaching.

“Clients are asking, ‘Should I

get out of Canada? Should I redomicile?’ Is it within my fiduciary duties to look at changing jurisdictions?” Krisztian Toth, a Torontobased partner at Fasken told The Northern Miner. “They’re wondering, ‘Could this happen to me?’”

While on one hand the federal government has been trying to kickstart investment in critical minerals supply chains needed for

the energy transition, its inconsistent moves on Chinese investment have been damaging, he noted.

Toth questions the government’s definition of national security, noting that Zijin’s investment would have bought a minority 15% stake in the company, just one of five board seats, and involved an asset located outside of Canada.

In March, Montreal-based SRG

Mining (TSXV: SRG) cancelled a $16.9-million deal with China’s Carbon ONE New Energy Group to take 19.4% of the graphite miner. The company completed a process to redomicile to the United Arab Emirates in July, while keeping its TSX Venture listing and changing its name to Falcon Energy Materials.

Canada’s not the only one shutting out Chinese investment as Western nations try to compete with the Asian giant, which controls most critical minerals processing and supply chains. Australia recently forced Chinese investors to divest from rare earth developer Northern Minerals (ASX: NTU). The United States is also trying to sideline China with rules that will eventually exclude electric vehicles made with Chinese-sourced materials from EV tax credits.

Closed door Chinese companies have emerged as a key funding source for cash-hungry developers in South America and Africa, where Western miners, investors and governments are missing in action, McMillan lawyers wrote in a bulle-

Solaris P41 >

‘We can raise more money in the Middle East,’ says junior that left Canada for UAE

INVESTMENT | Canadian firms weigh perils, pluses of redomiciling abroad

BY ALISHA HIYATE

The graphite junior that redomiciled to the United Arab Emirates to access funding amid Canada’s clampdown on Chinese investment in critical minerals says it’s the first junior to do so, but it may not be the last.

SRG Mining, now Falcon Energy Materials (TSXV: SRG), completed its move to the Middle East in early July, after first disclosing its plan to relocate in November, and choosing UAE as its new home in February. It’s the first TSX-listed company to redomicile to the Emirates.

“We believe we can raise more money in the Middle East than we can in Canada. So that’s why we just decided to move on,” Bos said.

The London, U.K.-based executive, who spent eight years with Ivanhoe Mines (TSX: IVN) including a stint as EVP Africa advancing its Kamoa-Kakula copper mine, says “more than several” companies have contacted Falcon to ask questions about its redomiciling experience.

SRG decided to make the move after it became clear that a $16.9-million financing that would have given China’s Carbon ONE New Energy Group (C-One) a 19.4% stake in the company wouldn’t necessarily receive a timely approval. The deal was originally announced in June 2023.

Foreign investment scrutiny

Under the Investment Canada Act (ICA), a federal national security review can take up to 200 days.

“In the end, the minister has discretion on what they approve of and what they want to keep reviewing.”

Bos said. “But for a junior company, we don’t always have the time to wait for several quarters, a year, to get these kind of approvals.”

The irony is that SRG Graphite had planned – and still plans – to serve Western markets with production from its Lola project in Guinea, and planned anode facility

in Morocco.

China’s control of both primary mined graphite supply and downstream processing of the battery material is as extensive as its dominance in rare earths, Bos says.

“That’s why there’s a need for a company like ours that can decouple part of the supply chain from China.”

SRG turned to C-One because the funding and expertise it needed to execute those plans wasn’t available from North American markets. A feasibility study update last year showed the project would cost US$185 million to build and could

produce 94,000 tonnes of graphite flakes in concentrate over a mine life of 17 years.

“It’s the funding, it’s the technology, it’s the offtakes, it’s the expertise. It’s a very complicated supply chain, way more complicated than people actually appreciate,” Bos said.

Although based in China, C-One’s investment and technical expertise would have helped the company to build capacity outside of China. With the lowest-cost production in China, any anode plant based elsewhere would have to serve Western markets, he notes.

Risk to Canada’s capital markets

According to the TSX, 40% of the world’s mining companies are listed on either the TSX or TSX Venture exchanges.

But the fed crackdown could encourage other juniors that need similar access to Chinese funding or expertise to redomicile and to a decline in Canada’s status as a top destination for mining listings and mining funding.

That’s especially so for companies with preproduction assets outside of Canada, warns John Turner, a partner in Toronto at Fasken and leader of the law firm’s global mining group.

“If we start losing these companies to the Middle East or Australia or (elsewhere), we’re killing one of

the few industries where we have a global presence,” he said.

Turner noted that Canada’s got an extensive ecosystem of technical and environmental professionals, investment bankers, legal and accounting firms that support mining and are also sustained by the sector.

Sasa Jarvis, a Vancouver-based partner at McMillan whose practice focuses on corporate and securities law, says Canada could risk being removed from the equation for new companies choosing where to incorporate.

“It undermines the Canadian capital markets,” she said. “It encourages those companies with global assets to redomicile and, with other restrictions in Canadian securities regulation that discourage incorporation in non-traditional jurisdictions, makes Canadian stock exchanges less attractive for new projects when they’re selecting jurisdictions of incorporation.”

“So, with the ability to accept Chinese funding reduced or essentially eliminated, and no new alternative to that capital presented, companies will look at other jurisdictions to incorporate in,” Jarvis added.

“If capital is shifting away from Canada, it’s going to impact Canada’s mining industry, our capital markets, our investment

Solaris president and CEO Daniel Earle said in a news release at the time.

A drill platform at Solaris Resources’ Warintza project in Ecuador. SOLARIS RESOURCES

The Dubai skyline. ADOBESTOCK/TTSTUDIO

indepth

Would Canada allow Rio Tinto to buy Teck?

Miners aren’t so sure

M&A | In wake of Glencore’s Teck Coal buy, the ‘net benefit’ bar has been raised

BY ALISHA HIYATE

The federal government’s attempt to clarify its rules for foreign investment in mining is instead causing more confusion as the industry grapples with changing rules under the Investment Canada Act (ICA).

But Rio Tinto’s (NYSE: RIO; LSE: RIO; ASX: RIO) interest in buying Teck Resources (TSX: TCK.A/ TCK.B; NYSE: TECK), as reported by Sky News in July, could serve as a test for what the feds will allow as it tries to keep critical minerals available for Canada.

As the federal government formally approved Glencore’s (LSE: GLEN) purchase of a 77% stake in Teck’s coal business in July, Minister of Innovation, Science and Industry François-Philippe Champagne issued a statement saying the government would only greenlight future foreign takeovers of “important Canadian mining companies engaged in significant critical minerals operations... in the most exceptional of circumstances.”

Most such transactions would not pass the “net benefit” test under the ICA, he said.

“This high bar is reflective of the strategic importance of Canada’s critical minerals sector and how important it is that we take decisive action to protect it,” he added.

To meet the net benefit test, Glencore agreed to what Champagne called “strict conditions” intended to protect Canadian jobs and investment in Elk Valley Resources. Those include setting up and maintaining a head office for the subsidiary in Vancouver for at least 10 years and reserving the majority of senior and director roles for Canadians for the same period. It also agreed to earmark an extra $350 million over five years for closure and reclamation, and to maintain Teck’s commitments to First Nations.

While the July 4 statement appears to warn off potential bidders for the rest of Teck’s business, now focused on copper, John Turner, a partner at Fasken and co-leader of its mining group, isn’t sure that’s the case.

“The announcement was not very clear. And if we really are closed to foreign takeovers, the TSX may as well pack its bags and go home,” he said, referring to the importance of mining listings to the exchange.

“In a sense, I’m pleased that this is coming up. If a company like Rio can’t take a run at Teck, then we’ve got real problems.”

Rio Tinto, which bought Canada’s Alcan in 2007 in a $38-billion deal that was subject to a less stringent net benefits test, already has a major presence in Canada, and is headquartered in Australia.

‘Confusing and vague’

The Prospectors and Developers Association of Canada (PDAC) agreed Champagne’s statement was confusing.

“Although the statement was intended to provide clarity, we believe it will only increase opacity in our markets. The mineral industry is struggling to understand the government’s motives regarding the net benefit and national security reviews,” Jeff Killeen, PDAC’s

director of policy and programs said in an emailed statement.

“It has taken nearly a century for Canada to build a highly accessible and transparent capital market, attracting listings from mineral exploration and mining companies worldwide. This dynamic is being put at risk when we hear that net benefit will only be found in transactions that involve large companies with critical minerals ’in the most exceptional of circumstances.’

“This phrase lacks a formal definition, and no regulations have been proposed to clarify how the Investment Canada Act amendments in Bill C-34 will apply to public issuers,” he said.

The amendments were first announced in late 2022 and came into force earlier this year. Killeen noted that part of the rationale for investing in miners is the potential for M&A premiums.

“The uncertainty we have now will put Canadian-listed companies at a strategic disadvantage and create headwinds for valuations when compared to other marketplaces.”

The government has signalled for the past two years that Chinese investment in critical minerals is a non-starter. That became clearer after Solaris Resources (TSX: SLS; NYSE: SLSR), a junior with a development-stage copper-gold project in Ecuador, cancelled a $130-million investment from China’s Zijin Mining after it got hung up in a national security review.

Other development-stage juniors with assets outside the country are now considering redomiciling — packing up and leaving Canada — to avoid ICA reviews, lawyers at Fasken and McMillan have said.

Graphite junior SRG Mining — now Falcon Energy Materials (TSXV: SRG) — completed its move to the

United Arab Emirates last month rather than go through a national security review for a $16.9-million financing with a Chinese firm that it had to cancel anyhow in order to redomicile.

But the new statement appears to put any foreign investment in question.

“If this actually happens it will make us uncompetitive globally in an industry where we are a world leader,” Turner says.

‘Affects only a very few’

A day after Champagne’s statement, Natural Resources Minister Jonathan Wilkinson dismissed the idea that the tougher ICA require-

ments could limit investment in critical minerals in Canada.

“The new formulation of net benefit applies only to mining companies that actually have large-scale operations in Canada that are currently Canadian companies,” he said at the Energy Ministers Conference Calgary, responding to a question from The Globe and Mail

“It doesn’t affect exploration, it doesn’t affect early development, it doesn’t affect investments coming into the country to develop critical minerals,” he said.

“But what it says is those companies that are headquartered in Canada, their head offices are in Canada, their research and development is done in Canada, are important. It’s important for Canada to have flagship enterprises in an area that is strategic. So, it affects only a very few companies in Canada and I don’t think it will have any impact on investment flows.”

Teck is clearly one of those companies, and any potential acquirer of the miner now knows to expect a takeover could come with onerous or expensive conditions.

Despite Wilkinson’s assurances, mining capital may play it safe until investors are certain about the new rules of the game, both the net benefits test for major deals and national security reviews for all deals.

Rather than cut off foreign sources of capital and risk no new mines getting built, Krisztian Toth, another partner at Fasken specializing in mining M&A, says the feds could consider regulating what comes out of the mine instead.

“As part of an ICA review, they (could) say, ‘we’ll let your deal go through, but fifty per cent has to go to North American markets,’” he said.

That way they could use the ICA as a tool to get the product they want in Canada, he added.

“What they’re doing now is actually protectionism, and I think history has shown protectionism is not strategy, it’s fear-based.” TNM

Teck’s Highland Valley copper mine in British Columbia. TECK RESOURCES Right: Natural Resources Minister Jonathan Wilkinson. COLIN MCCLELLAND

indepth

Big Oil seizes lithium opportunities

FINANCING | Partnerships an option for brine projects

BY COLIN MCCLELLAND

Mining companies could benefit in cash and technology as major fossil fuel companies such as ExxonMobil (NYSE: XOM), Occidental Petroleum (NYSE: OXY) and Equinor (NYSE: EQNR) invest in lithium, a potential lifeline amid the battery metal’s low prices and oversupply.

ExxonMobil, which has produced some lithium in a pilot project, signed a preliminary agreement in June to send lithium to South Korea-based SK On, a battery maker that’s building plants to supply Hyundai and Ford in the United States. That followed the oil giant’s US$100-million purchase of drilling rights on 485 sq. km of lithium brine assets in Arkansas’ Smackover Formation from Galvanic Energy.

Also in June, Occidental Petroleum said it’s forming a joint venture with a unit of Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) to produce battery-grade lithium from the brine of 10 geothermal power plants in California. It’s begun feasibility testing.

Chevron (NYSE: CVX) says it’s exploring lithium extraction, and Reuters reported the third-largest petroleum company by market value was speaking with International Battery Metals (CSE: IBAT; US-OTC: IBATF) about licensing brine technology.

Norwegian state oil company Equinor said in May it could pay as much as US$133 million for a 45% stake in Standard Lithium’s (TSXV: SLI) projects in Arkansas and Texas. Standard started a commercial-scale demonstration plant in April. Vulcan Energy Resources (ASX: VUL) told The Northern Miner by email it has oil majors, but wouldn’t say which ones, investing in its €1.3 billion ($2 billion) Zero Carbon lithium project in Germany.

‘Makes sense’

“The move into lithium makes a lot of sense for these large international energy companies,”

Rhidoy Rashid, a senior associate at London-based data and analysis firm Energy Aspects, said by email.

“Unlike some other niche metals, lithium is relatively abundant, so the resource needed to match rising demand for batteries is there, it just needs to be efficiently extracted. The expertise these companies can bring may also help to ramp up lithium supplies from areas where it was previously uneconomic to extract the metal.”

Oil companies are investing exclusively in brine projects (as opposed to hard rock) that may use direct lithium extraction (DLE) methods, which resemble pumping crude in some aspects. They’re tapping their own core capabilities in subsurface exploration, drilling and chemical processing. They have much deeper pockets, with market values that dwarf their mining cousins. Their diversification into green metals can help lift a mining sector that attracted stock market investors when the metal price was high but have since abandoned it.

“Oil companies offer the technology and skills need to identify, characterize and produce lithium-bearing brines from deep underground,” Terry Braun, president of North American opera-

tions for SRK Consulting, said by email. The firm has 45 offices globally and has operated in more than 150 countries.

“The challenge of economically extracting a marketable lithium product once the brine is at the surface is formidable,” Braun said. “Even with the technical expertise of most major oil companies.”

US$1B move

ExxonMobil is aiming to supply enough of the battery metal to power 1 million vehicles by 2030.

It has said a “material” part of its US$20-billion budget for low-carbon projects through 2027 will be spent on lithium.

“It has to be over US$1 billion if it is going to be material,” chairman and CEO Darren Woods said on an April 30 conference call. “We are looking at very large markets into the billions.”

Lithium brines are often found in depleted or abandoned oil wells, like the Leduc field in Alberta where E3 Lithium (TSXV: ETL; US-OTC: EEMMF) is advancing its US$2.5-billion Clearwater project on Canada’s largest resource of the battery metal. The project between Calgary and Edmonton could produce 32,250 tonnes a year of lithium hydroxide monohydrate over half a century, according to a prefeasibility study issued on June 26.

ExxonMobil’s Canadian subsidiary, Imperial Oil (TSX: IMO), has invested $6.4 million for stock and warrants equal to 4.3% of E3.

There is only one commercial DLE operation so far outside of China after companies struggled to lower costs and improve technologies. Arcadium Lithium (NYSE: ALTM; ASX LTM) has been using DLE at its Hombre Muerto operations in Argentina since the 1990s. Most brine operators like Albemarle (NYSE: ALB) and SQM (NYSE: SQM) the world’s two largest lithium producers, use traditional evaporation ponds.

“The challenge of economically extracting a marketable lithium product once the brine is at the surface is formidable. Even with the technical expertise of most major oil companies.”

TERRY BRAUN, PRESIDENT OF NORTH AMERICAN OPERATIONS FOR SRK CONSULTING

Pros and cons

However, DLE is gathering pace because it can produce lithium in hours or days vs months or years on a fraction of the land, and process brines with lower lithium concentrations.

US Magnesium is using DLE from International Battery Metals for a project in Utah and CleanTech Lithium (AIM: CTL) started a DLE pilot plant in Chile. In Canada besides E3, Volt Lithium (TSXV: VLT), EMP Metals (CSE: EMPS; US-OTC: EMPPF) and LithiumBank Resources (TSXV: LBNK; US-OTC: LBNKF) have all started DLE testing. These operations, which in E3’s case, would siphon lithium-laden water from the same wells that used to produce oil, then pump it back into the reservoirs after extract-

ing the battery metal. Even permit requirements and the separation process using water and reinjecting it into wells are more akin to the oil industry than hard rock mining. However, some experts have expressed concerns about the environmental impact of oil companies extracting lithium, likening the process to fracking because it injects liquid underground that could potentially enter water supplies. Marco Tedesco, a climate scientist at Columbia University, has said high water usage and potential pollution are linked to DLE. Some environmentalists have criticized oil companies for greenwashing their operations.

“It pains us to even cover a company like ExxonMobil, as its history in environmentalism is as filthy as the oil it drums up,” Scooter Doll at energy transition website Electrek wrote when the oil giant started lithium drilling. “While this is welcomed news to an extent, it’s not difficult to see the motive behind ExxonMobil’s expansion into lithium, and it sure as hell isn’t about saving the planet.”

Oversupply

While companies use long-term metal pricing to gauge project economics, the surge in oil major investing comes as battery-grade lithium carbonate has plunged to around a three-year low. It was US$11,825 a tonne near press time, down from US$40,675 a year ago, according to The Wall St. Journal. It had been approaching US$76,000 a tonne in January last year.

“The commercial scale economics for the majority of DLE projects are unknown at the present time,” SRK’s Braun said. “DLE technologies or other non-conventional metallurgical flow sheets present a technical risk that could negatively impact project economics and the ability of the mining company to pay the lender.”

A glut in lithium is expected to

continue for close to a decade even as demand increases because of more electric vehicles hitting the market, analysts at FitchSolutions BMI said on a June 27 webcast. The oversupply will force scores of companies to adopt cost-saving technology like DLE and/or face takeover threats, they said.

Demand

Global lithium production increased 23% last year to 180,000 tonnes, according to Statista. Energy Aspects’ Rashid says oil major investments in lithium are key for the world to meet rising demand and climate-change fighting goals.

“It is crucial that lithium supplies are unlocked if the world is to keep pace with net zero ambitions,” the analyst told The Northern Miner “We think global lithium production needs to almost triple by 2030 to keep up with the level of electric vehicle adoption required to maintain pace with decarbonization targets.”

The lower price has caused some producers such as Albemarle, which has both hard rock and brine operations, to slash costs and delay projects. That could expose some assets to M&A and provide more opportunities for oil companies to invest. Miners may seek out oil companies as their projects face funding and other headwinds.

Braun says success in DLE technology suits oil companies because of their resources for tests on brines from projects and their capacity to build large projects, starting with DLE pilot programs to assess economic feasibility.

“Oil companies invest significant capital and time to develop, test and deploy new technologies at commercial scale,” Braun said. “This is a strategic advantage over companies that have less capital or time to prove a commercial scale DLE application.”

TNM

With files by Henry Lazenby.

CleanTech Lithium is developing DLE technology for its projects in northern Chile. CLEANTECH LITHIUM

In shadow of Victoria Gold accident, workers claim lax safety culture at site

YUKON | Workers’ safety board says ‘no benefit’ for employers to suppress claims

BY BLAIR MCBRIDE

Alandslide that’s stopped production at Victoria Gold’s (TSXV: VGCX) Eagle mine in the Yukon may have been inevitable due to the company’s weak approach to safety protocols, current and former employees say. .

Individuals who approached The Northern Miner to share their experiences of working at Eagle told of neglected incidents and repairs, attempts to subvert injury reports and unchecked drug and alcohol use in a supposedly dry camp, confirming what a heavy equipment operator had previously said. They asked not to be named to avoid career repercussions.

“I would see workers constantly complain about specific safety issues,” said a former member of the health, safety and security department, who worked at Eagle for four years. “And it was just pushed off on the backburner. ‘Oh, we’ll get around to it. You know, we don’t have parts, we don’t have time.’”

He said production came first.

The lax safety culture may have contributed to Victoria’s difficult position. No one was seriously injured in the accident, but with operations at Eagle suspended after the June 24 heap leach spill and landslide, the company has no cash flow. It holds $232.5 million in debt. The incident tanked Victoria’s share price by more than 85%, leaving the single-asset company

with a market cap of $42.3 million.

As of press time on July 29, Victoria had issued only three news releases since the accident. It has not responded to multiple requests for comment. The cause of the accident is being investigated.

Avoiding insurance claims

The workers agreed Victoria’s alleged safety negligence stands out in its approach towards Workers’ Safety and Compensation Board (WSCB) claims.

When a worker was injured, the company was supposed to report the incident to the Yukon WSCB. But instead, the worker would be kept on wages, told to stay home and company records wouldn’t show any injuries, the sources said.

“We were directed to send them computers and give them online training so they could stay at home and stay on the payroll, which wouldn’t show any time loss,” the former safety department member said.

The department holds less than a dozen guards, supervisors, emergency response technicians and paramedics, but it lost 14 people over three years from turnover, he said.

A heavy equipment operator, who has worked at Victoria for more than two years, but who was injured more than a year ago, suggested the company avoids WSCB claims to limit payments and to keep insurance rates from increasing. The details of his injuries are being withheld because he’s still

employed by Victoria.

“I got injured there and they do pay you to keep you from WSCB, but only for six or seven months, and then they said they don’t have the (technology) to accommodate you working from home, like administrative work or training work,” he said. “I’ve been fighting with the WSCB and the company because they didn’t give me any support whatsoever.”

But Heather Avery, a spokesperson for the Yukon WSCB, said in response to emailed questions that injured workers who made claims for compensation benefits received them. She also confirmed that Victoria Gold accommodated the workers’ injuries and continued to pay their salary. When employers continue paying the salaries of injured workers, WSCB reimburses them.

“There is no benefit for employers to suppress claims in the Yukon,” she said.

“The number of claims for compensation at any individual employer does not impact their rates,” she added. “When a worker is injured and a claim is submitted, the Claimant Services branch works with the employer to determine the best approach for the injured worker on a case-by-case basis (including accommodating the injured worker with alternate work).”

Companies report lost-time injury statistics publicly, and investors and lenders may use safety metrics as part of their decision-making processes.

According to Victoria Gold’s 2023 sustainability report, posted to its website, its lost-time injury frequency rate rose to 0.70 in 2023 from 0.13 the year before.

‘They went to lunch’

The June 24 accident was the second landslide to occur at Eagle this year, the Yukon government confirmed in a news briefing in late June. The incident in January involved a smaller failure than the recent event and was on a stockpile that wasn’t being leached. In heap operations, ore pads are applied with a solution containing cyanide that separates gold from ore.

Two equipment operators told The Northern Miner that production continued after the January slope failure even though by regulation a safety stand-down, or pause in operations, must follow such events.

“We drove down from the top of the pad (towards) the lunchroom,” said the operator, who was pulled down by the landslide on June 24 while inside his bulldozer. “Before I got out of the truck, I asked (the mine manager) ‘is this a safety standdown or is this a regular lunch?’ He said it’s a regular lunch. I said, ‘I don’t agree with that.’”

Another operator, who wasn’t working on the pad at the time, said there was no pause in operations.

“It’s true that the lock-out procedure didn’t happen there, everyone

Yukon hires contractors to aid Eagle cleanup

ACCIDENT | First Nations worry about cyanide impact

BY BLAIR MCBRIDE

The Yukon government is taking over more tasks in the cleanup effort at Victoria Gold’s (TSXV: VGCX) Eagle mine, as the company has missed more conditions of the remediation plan.

The government has hired contractors to build a protective berm under the unstable slope at Eagle to make a safe area to drill groundwater wells, Lauren Haney, deputy minister for Yukon’s Department of Energy, Mines and Resources (EMR), said in a news briefing on July 26. Those wells are needed for monitoring groundwater for potential contamination.

“I wouldn’t frame this as a repercussion, but it is a result of the company not complying with those directions that we are stepping in to undertake construction of the berm ourselves,” Haney said.

The move came one month after a heap leach pad failure unleashed 4 million tonnes of material in a landslide, with half leaving the pad’s containment. Between 280,000 and 300,000 cubic metres of cyanide-containing solution left the containment, according to government estimates. The company has issued three news releases since the accident. It has not responded

to multiple requests for comment from The Northern Miner Yukon Premier Ranj Pillai on July 26 appointed Dennis Berry, president of the Yukon Liquor Corporation, as interim deputy minister of EMR to assist Haney in her role to focus solely on the response to the Eagle accident.

Mum

on costs

The Yukon government couldn’t confirm how much the cleanup

work is costing, though Haney implied the government has spent its own funds.

“We’re certainly keeping track of the money spent,” she said during the briefing. “We will make every effort to recover the costs we’re incurring.”

The Northern Miner asked Haney what would trigger the use of a $104-million surety bond the government holds with Victoria Gold for reclamation.

She responded that the government is considering its use but didn’t detail the triggers.

Asked how long Victoria can continue to fund the cleanup, Haney said she doesn’t know, though said the government is aware of Victoria’s low share price.

“It’s not a positive outlook. For now, the company remains on site and is paying its contractors. We’re pleased to see them doing that.”

Cyanide in groundwater

Although groundwater monitoring near the mine site has revealed an increase in contaminants during week of the briefing, the risk to aquatic life and drinking water is low, said Tyler Williams, a water resources scientist with Yukon’s department of environment.

“We’re observing an increase of cyanide in the water,” Williams

Containment dam construction. YUKON GOVERNMENT

Southwest section of the collapsed pad. YUKON GOVERNMENT

indepth

Can Western Copper and Gold rise to its green challenges?

SITE VISIT | $4.4B Casino could become Canada’s ‘largest critical minerals project’

BY BLAIR MCBRIDE

Near Carmacks, Yukon — Western Copper and Gold’s (TSX: WRN; NYSE-AM: WRN) Casino project sits at the potential junction of a trans-Canadian green power conduit while promising metals needed for the energy transition.

The company, which calls Casino the world’s fifth-largest copper-gold project controlled by a junior miner, got a vote of confidence in November when Rio Tinto (LSE: RIO; ASX: RIO) upped its stake in the junior to 9.7% from about 8%. There are also tailwinds as governments push to connect Yukon to British Columbia’s green power grid and the national grid, CEO Sandeep Singh told The Northern Miner in Casino’s hilltop kitchen tent in late June.

“We’re being dragged. The government of Yukon wants this to happen. The First Nations want it to happen,” said Singh, who took the reins at Western Copper and Gold in February.

“It comes with that application to the critical mineral infrastructure fund,” he said referring to the federal government’s $1.5-billion pot to support mining projects, announced last November.

Yukon premier Ranj Pillai asked the federal government earlier in June to provide up to $60 million towards the grid connection. Yukon has already earmarked $1 million towards it. The interconnection would include 763 km of power lines.

“That would reduce our costs from about 18 to 19 cents (per kilowatt hour) to about half that and it would also make the copper coming out ESG-friendly, green copper so it’s a pretty big mover for the project overall.”

That possible connection, which is under discussion between B.C. and the Yukon would allow Western to move away from its planned liquefied natural gas (LNG) power source for Casino and also from dirtier diesel generators, widely used for remote projects across the territory.

Casino, located 380 km northwest of Whitehorse, which also counts Mitsubishi Materials as a 4.1% shareholder, is now focused on preparing environmental studies to submit to the Yukon government this year. It’s about four years away from completing its entire environmental assessment, company president Paul West-Sells said.

Mineral claims at Casino date back to 1917. Western took over the project in 2006 from Ross Beaty’s Lumina Resources.

‘1.2B tonnes’

The copper-gold-molybdenum project holds 1.2 billion proven and probable tonnes grading 0.2% copper, 0.22 gram gold per tonne and 0.02% molybdenum for 5.1 billion lb. copper, 8.5 million oz. gold and 572 million lb. molybdenum, according to a feasibility study released in 2022. The deposit is about 46% copper, 34% gold and 17% molybdenum.

“We are the largest critical minerals project in the country,” Singh said.

While the grades are low, Singh

“We are the largest critical minerals project in the country.”

— SANDEEP SINGH, CEO, WESTERN COPPER AND GOLD

said the 0.43:1 strip ratio in the feasibility study, as well as the 1.2 billion reserve tonnes puts Casino ahead of other copper porphyry projects.

The feasibility study gave Casino a $2.3-billion net present value (at an 8% discount), after taxes, an internal rate of return of 18.1% and a three-year payback period. Development won’t be cheap. Total capital costs are estimated at

acceptance of its project.

He responded it would be irresponsible to comment before more information is known about the incident.

Water and caribou

Closely related to tailings are water systems, a crucial issue considering Casino sits just 16 km south of the Yukon River.

West-Sells explained that Casino is designed to divert all drainage into small local creeks and away from the Yukon River. Any drainage would have to travel about 200 km until it makes contact with the river.

Another risk is caribou populations, an issue West-Sells says he’s aware has caused friction between mineral development and Indigenous groups in the Yukon, such as with BMC Minerals’ Kudz Ze Kayah project to the southeast.

“The herd is healthy in this area. We co-fund a collaring program with the Yukon government,” he said. The program involves collecting baseline information on the population and habitat ecology of the Klaza herd.

$4.4 billion, with sustaining capital pegged at $751 million.

Casino can help respond to the energy transition’s need for 12 million tonnes of copper over the next 10 years if climate change is to be kept under 1.5 degrees, Singh said.

But as excited as company managers are about Casino’s green credentials, there are several risks. And like the tasks of supplying energy transition metals and passing an environmental assessment, they are green challenges in themselves.

Cautionary tailings tales

Among the biggest ones is tailings.

Speaking on a hilltop that overlooks the main camp, West-Sells recalls that about a decade ago tailings “were viewed as weapons of mass destruction.” Communities and regulators were alarmed after B.C.’s Mount Polley and Brazil’s Samarco tailings accidents.

The company conducted a study

on best available tailings technology in 2017, and went through about 40 tailings dam designs before reaching agreement on one that uses a limited amount of water. Neighbouring First Nations, the Yukon government and an independent engineering review panel accepted that proposal in 2018.

“I talked about nothing but tailings for probably three or four years,” he said. “And now that we’re sort of wrapping everything up again, I don’t talk about it anymore. Which is good. It just says that’s something that’s been dealt with.”

However, it’s possible the company could face similar issues — but this time with its heap leach plans — after the collapse of a heap leach pile at Victoria Gold’s (TSX: GCX) Eagle mine in June. With a gold heap leach facility also envisioned as part of Casino, The Northern Miner asked Singh if the company fears the accident could damage public

Infrastructure momentum Infrastructure-wise, 80% of the road that would lead from the village of Carmacks to Casino has already been built, and the federal government is expected to chip in 30% of the cost of the last portion, $130 million. Yukon is adding $21 million.

While the feasibility study pegs the mine life at 27 years, Singh says that accounts for only a third of the resource. It could last 60 to 80 years as a “generational asset,” he says. And Singh, like West-Sells, emphasizes the project is the right one for the energy transition.

“Part of the reason that the Rios and Mitsubishis of the world like this asset is because it (has) lots of copper, molybdenum (and critical) metals that the world wants,” West-Sells said. “And it’s in Canada and it’s in Yukon — not in a (difficult jurisdiction).” TNM

Western Copper and Gold plans to locate the open pit of the potential mine in the bottom of the valley. BLAIR MCBRIDE

Western Copper and Gold CEO Sandeep Singh. BLAIR MCBRIDE Company

president Paul West-Sells. BLAIR MCBRIDE

indepth

Fireweed closes in on Far North critical minerals boom

SITE

VISIT

| Two Yukon projects host big zinc, tungsten resources

Remote eastern Yukon —

The snow-peaked mountains and green valleys of eastern Yukon may seem like a place that would attract only wily old prospectors and extreme hikers.

But on a gentle mountain slope, a camp full of young geologists armed with the latest exploration technology are searching for metals needed for the green energy transition.

On the border with the Northwest Territories, Fireweed Metals (TSXV: FWZ; US-OTC: FWEDF) is advancing two projects with potential to supply critical minerals. The company is working to grow resources at its Macpass zinclead-silver project and courting U.S. government assistance at its Mactung tungsten project, which it’s advancing toward a feasibility study next year.

Unrealized zinc potential Macpass, made up of the Tom, Jason, Boundary and End zones, could produce 32.7 million tonnes of output over an 18-year life, according to a 2018 preliminary economic assessment (PEA), which included only the Tom and Jason targets.

But the project has room to grow.

“(There’s a huge) exploration opportunity here in terms of how under-explored the Yukon is for zinc,” Fireweed’s chief geologist Jack Milton said in a tent office in late June. “This is one of the most prolific zinc districts on Earth and has some of the largest zinc deposits known, including many of the largest undeveloped zinc deposits.”

Zinc, included on Canada and the United States’ lists of critical metals, is used in galvanized steel and to make zinc-ion batteries.

While the “critical” designation is new, Fireweed is looking to tap into Yukon’s well-established zinc mining heritage. Macpass sits on the Selwyn Basin that stretches from western Yukon and down into northeastern British Columbia. It hosts the past-producing Faro leadzinc mine, about 185 km northeast of Whitehorse, which produced from 1969 until 1988.

Just 60 km south of Fireweed, Chinese firm Selwyn Chihong Mining operates Howard’s Pass, a

project that hosts 186 million indicated tonnes grading 5.2% zinc and 1.79% lead for 21.3 billion contained lb. zinc and 7.3 billion contained lb. lead, according to a 2012 resource estimate.

The market recognizes Fireweed’s value, even though its projects are remote: the nearest town of Ross River is 200 km south by road. The company, with a $211.7-million market cap, raised more than $50 million last year and this June raised another $43 million in a private placement.

Major backers hold more than one-third of Fireweed’s shares: Lundin Holdings has an 18.8% interest, Larry Childress 12.5% and Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) 6.7%.

Adam Lundin, chair of Lundin Mining was appointed strategic adviser in May, the same day that outgoing CEO Brandon Macdonald was replaced by interim chief executive Peter Hemstead. Macdonald had been CEO of Fireweed since 2016, when it was known as Fireweed Zinc. The company did not explain the reason for his departure but in a release, board chair John Robins thanked Macdonald for helping to build “one of Canada’s leading base metal exploration companies.”

Macpass mine life

Tom and Jason at Macpass host 11.2 million indicated tonnes grading 6.9% zinc, 2.48% lead and 21.33

grams silver per tonne; and 39.4 million inferred tonnes at 5.84% zinc, 3.14% lead and 38.15 grams silver.

The company plans resource updates for Tom and Jason this year, as well as an initial resource in the third quarter for Boundary, where Fireweed has drilled more than 32,000 metres across about 100 holes.

Milton notes the success of drilling at Boundary, pointing to one hole that hit 230 metres of 4.5% zinc from surface.

“Imagine that was a gold project and you put out a hole like that,” he said. “Some of the drill holes that we’ve put out at Boundary have been the best holes for any zinc project globally that’s not already in construction or production in the last ten to fifteen years.”

But Boundary isn’t yet road accessible. The nearest target to the main camp is End zone, about 5 km down a road that branches off from the Canol Road. A rough trail that extends 12 km from End zone to Boundary would need to be upgraded and maintained before vehicles can use it.

The 2018 PEA gave Macpass an after-tax net present value (at an 8% discount) of $448 million at capital costs of $404 million.

The study outlined liquefied natural gas or diesel power options for Macpass, but Milton said the company is looking into a grid power connection with Ross River, or

even wind power options. Fireweed installed a solar array at the camp last year.

Globe’s largest tungsten deposit

Flying in a helicopter over snow covered mountains and about 13 km north of the Tom zone, a set of ramshackle buildings on a plateau comes into view. They could be mistaken for a long-since abandoned trekking camp or even a remote research station.

They are in fact old core shacks built by previous owners of Mactung, the world’s largest highgrade tungsten deposit that straddles the Yukon-N.W.T. border.

Fireweed acquired the project from the N.W.T. government last year for $15 million. Exploration at the 37.6-sq-km property dates back to 1962.

Just up the Canol Road from Macpass, Mactung is further along in its development, and when Fireweed bought it from the N.W.T. it already had a completed environmental assessment.

“The last step there is licensing, which is a one-to-two-year process,” Milton said. “We’re currently looking at project optimizations to deliver a mine within the scope of the approved environmental assessment.”

Fireweed expects to complete a feasibility study for Mactung next year, with final licensing and permitting in 2026, construction start-

ing in 2028 and production as soon as 2030.

US support for Mactung For its next steps at Mactung, the company is looking into government support to advance the project from both sides of the Canada-United States border.

From Canada and the Yukon governments, it wants help to upgrade the Canol Road.

U.S. support could be more substantial, and might include help with the feasibility and environmental studies, Hemstead says.

“The U.S. Department of Defense is quite interested in the tungsten coming from Canada, as opposed to the current market that’s controlled by China,” he added. “With (tungsten’s) military usage, it’s pretty critical in that regard.”

Hemstead said the company expects to have more news about U.S. support in the near future.

Mactung hosts open pit and underground indicated resources of 41.5 million tonnes grading 0.73% tungsten trioxide (WO3) for almost 301.6 million kg of WO3, and 12.2 million inferred tonnes at 0.59% WO3, for 72.1 million kg of WO3, according to a resource estimate released last year.

Fireweed also holds a less advanced critical minerals asset –the Gayna zinc-lead-gallium-germanium project in the N.W.T., about 180 km west of Norman Wells. TNM

Work tents at Fireweed Metals’ main camp near its Macpass project in eastern Yukon. BLAIR MCBRIDE

BY BLAIR MCBRIDE

Fireweed’s chief geologist Jack Milton. BLAIR MCBRIDE

Geologist Kaitie Purdue shines a black light on cores of tungsten. BLAIR MCBRIDE

eye on australia

BHP halts Western Australia nickel mines on weak prices, glut

MINING MELTDOWN | Influx of cheap Indonesian nickel hammers industry

BY CECILIA JAMASMIE, MINING.COM

BHP (NYSE: BHP; LSE: BHP; ASX: BHP) is halting its Western Australia nickel operations starting in October, as the world’s largest miner struggles to navigate challenges posed by a substantial decline in nickel prices and a global oversupply.

The mining giant, which had warned the market about this potential outcome earlier this year, said it will review its decision affecting both the Nickel West operations and the West Musgrave project by February 2027.

“Like others in the Australian nickel sector, we have not been able to overcome the substantial economic challenges driven by a global oversupply of nickel,” BHP Australia president, Geraldine Slattery, said in July. BHP noted it would offer redeployment opportunities to the company’s other operations or a redundancy payout to the 2,500 employees in the division.

The company will establish a A$20-million (US$13.3 million) community fund to support local communities and business impacted by the suspension.

Resources Minister Madeleine King called the decision “disappointing,” noting that the federal government had worked with BHP and the broader nickel sector on policy responses to support ongoing Australian nickel production.

n Anglo American kicks off coal sale

Anglo American (LSE: AAL) is said to have formally kicked off a process to divest its coal assets, enlisting the services of three top banks as part of a broader plan to offload some of its legacy assets.

The idea to sell its steelmaking coal assets, which analysts value at as much as US$5 billion, is part of a sweeping restructuring program born from a botched takeover attempt by larger rival BHP (NYSE: BHP; LSE: BHP; ASX: BHP).

Chief executive Duncan Wanblad said in May it was too soon to start selling the company’s five operating coal mines, development projects and joint ventures in Australia. An explosion and subsequent fire at Anglo’s Grosvenor coal mine in Queensland seems to have made Wanblad change his mind.

Anglo American has, in the meantime, hired Goldman Sachs, Morgan Stanley and Centerview Partners, all of whom were previously involved as brokers for the company, to assist in the sale of the assets, Reuters reported on July 9.

Besides its coal business, Anglo is also working on a strategy to separate its controlling interest in Anglo American Platinum (JSE: AMS) and in diamond giant De Beers.

It is said the company’s perspective is that De Beers should be priced in a way that reflects its status as an heirloom asset.

n Indonesian firm pays $361M for Hillside

Rex Minerals (ASX: RXM), which holds Australia’s largest permitted and shovel-ready copper project, Hillside, is being bought out by Indonesia-based MACH Metals Australia for A$393 million ($361.1 million).

“We added nickel to the critical minerals list in February, making nickel projects eligible for consideration under the A$4 billion critical minerals facility,” King said in a statement.

Tough Indonesian competition

Higher costs at mines in Australia have made it hard to compete with cheaper supply from Indonesia, which is more pol-

Rex shares closed 56% higher on July 8 at A43¢ apiece in Sydney on the news. MACH, a unit of the Salim Group and one of Indonesia’s largest conglomerates, already owns a 15.8% stake in Rex, or 121.5 million shares. It will acquire the remainder of Rex shares for A47¢ each, a 98% premium over the 90-day average trading price. Rex had a market capitalization near press time of A$340.8 million ($308.6 million).

The Hillside copper-gold project is 12 km south of Ardrossan. A 2022 resource estimate shows 337 million tonnes grading 0.56% copper and 0.14 gram gold per tonne for 1.9 million tonnes copper and 1.5 million oz. of gold, across all ore types and categories.

BHP’s (LSE: BHP; NYSE: BHP; ASX: BHP) recent, albeit unsuccessful, US$49-billion bid to acquire Anglo American (LSE: AAL) was motivated by the strategic need to secure copper mines. Analysts have warned for years that copper prices aren’t high enough to support new builds.

Hillside has a 13-year mine plan and needs A$854 million ($784.2 million) to build, according to a 2022 feasibility study.

The transaction needs regulatory and Rex shareholders’ approval. Rex’s board supports the deal, which should close by late October.

n Karora shareholders OK Westgold buy

Shareholders of Canada’s Karora Resources (TSX: KRR; US-OTC: KRRGF) voted nearly unanimously in favour of a A$1.23-billion (US$817 million) cash-and-shares acquisition by Australia’s Westgold Resources (ASX: WGX).

The final step for the creation of a Western Australian gold producer with an annual output of over 400,000 oz. of gold per year is obtaining approval from the Ontario Superior Court of Justice,

which was expected to hear the case in late July.

The scheme of arrangement required at least 66.6% of votes supporting the deal and got 99% approval from shareholders.

Westgold managing director and CEO Wayne Bramwell said the overwhelming support shown by Karora investors in the July vote confirmed “the independently verified value and the compelling commercial rationale behind this transaction.”

“With the integration of the Karora assets, the expanded Westgold will have strategic footprints across two of Western Australia’s most prolific goldfields,” Bramwell noted.

The transaction, slated to close on Aug. 1, will see Westgold taking ownership over Karora’s Australian Beta Hunt and Higginsville gold mines. These are both high-performing assets nestled in the same region of Western Australia as Westgold’s iconic Bluebird and Great Fingall mines.

Westgold will also own the Lakewood gold mill near Kalgoorlie.

The combined company will have combined ore reserves of 3.2 million oz. of gold and resources of 13 million oz. metal and a market capitalization of about A$2.2 billion (US$1.5 billion).

n Rio Tinto puts $16.9M into Sovereign

Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) is investing A$18.5 million ($16.9 million) to increase its stake in Australia’s Sovereign Metals (ASX: SVM; LSE: SVML), which is advancing the Kasiya rutile-graphite project in Malawi.

The move by the world’s second largest miner will boost its shareholding in Sovereign to 19.76% as it continues to raise its exposure to battery minerals.

The investment builds on a previous deal one year ago, when Rio

luting and carbon-intensive. It’s one of the factors behind recent calls for ESG-related pricing for metals.

Prices for nickel, a crucial metal for electric vehicle (EV) batteries, dropped 40% last year and have continued to experience declines in the past weeks.

Experts, including Macquarie Financial Services, say prices have likely hit a floor mainly due to the growing amount of the metal coming from top producer Indonesia. This oversupply has pushed the industry into a critical situation, as half of all nickel mines are unable to turn a profit at current prices.

BHP also said it would add another US$300 million to the US$3.5-billion non-cash impairment charge against the carrying value of the business that it announced in February.

Other nickel producers worldwide have also been forced to act. Anglo American (LSE: AAL) is exploring options to either divest or close down its nickel division, while Glencore (LSE: GLEN) has decided to suspend and sell some of its operations in the islands of New Caledonia.

BHP and other Australian producers have long been key suppliers of refined nickel, which influences prices on the LME. In January 2023, Australia accounted for 72% of the nickel in the exchange’s warehousing network, but by June this share had dropped to 29%. TNM

Tinto spent A$40.4 million to take an initial 15% interest in the owner of the world’s largest rutile and second-largest flake graphite deposit.

The Kasiya orebody contains 1.8 billion tonnes at 1% rutile and 1.4% graphite, resulting in 17.9 million tonnes of contained natural rutile and 24.4 million tonnes of contained graphite. Rio not only is one of Sovereign’s top shareholders, but also offers

the Australian junior support and guidance on the technical and marketing aspects of the Kasiya project through a joint technical committee set up by the two companies. The mining giant already produces titanium dioxide from rutile at its operations in Madagascar, South Africa and Canada.

Shares in Sovereign Metals traded for A66¢ near press time, valuing the company at A$394 million. TNM

BHP’s Nickel West operation in Western Australia. BHP

donedeals

Paladin Energy eyes growth after Langer Heinrich restart

URANIUM | $1.1B Fission deal could lift Aussie miner to No. 3 spot

BY ALISHA HIYATE

Just months after rejoining the uranium producers’ club with the March restart of its Langer Heinrich mine in Namibia, Paladin Energy (ASX: PDN; US-OTC: PALAF) has set its sights on a second mine that could catapult it to one of the world’s largest uranium producers.

In late June, the Australian miner launched a friendly, $1.1-billion bid for Fission Uranium (TSX: FCU; US-OTC: FCUUF) and its highgrade Patterson Lake South development project in Saskatchewan. The acquisition comes as a strong push for nuclear power around the world runs into the reality of more than a decade of underinvestment in new uranium supply.

“There’s a shortage of primary production coming out of the ground today and into the future,” Paladin CEO Ian Purdy said during a mid-July visit to Toronto.

“We’ve seen very strong demand for our Langer Heinrich product. And we expect that when we’re ready to bring our customers to underpin PLS later this decade, that demand (will) be extremely strong.”

Paladin expects the merger to lift it to the third largest listed uranium miner in the world, with production potential of 15 million lb. ura-

“The uranium market is very tight at the moment. What that means is every small change in the status of supply globally has significant relevance to the market.”

IAN PURDY, CEO OF PALADIN ENERGY

nium oxide (U3O8) annually by the end of the decade.

Premium, but no cash

The all-share deal doesn’t give Fission shareholders a cash payout. Paladin has only just started to receive cash flow from Langer Heinrich, idled in 2018 due to low

uranium prices, and which cost US$125 million to restart. The mine is expected to produce 4 million lb. U3O8 this year, and up to 6 million lb. annually at peak capacity.

But Paladin’s offer for Fission, valued at $1.30 per share, does

Montage Gold raises $180M from Zijin, Lundin for Koné

AFRICA | Construction to start next year

BY COLIN MCCLELLAND

China’s Zijin Mining Group and the Lundin family are part of a $180 million capital raising to increase their stakes in Montage Gold (TSXV: MAU; US-OTC: MAUTF) and advance its fully permitted Koné gold project in Côte d’Ivoire to construction early next year.

Zijin is investing $57.3 million for a 9.9% stake while the Lundin trust is increasing its holding to 19.9% from 17.7% with a $43-million purchase of shares, Vancouver-based Montage said on July 16.

Montage increased the total offering first announced a day earlier by $10 million. The shares are priced at $1.75 apiece, a 1.1% discount to July 15’s close, in a private placement expected to end around Aug. 12. Management and other insiders are investing about $20 million, the company said.

“These investments strengthen our ability to deliver on our strategy to become a premier multi-asset African gold producer and validate the potential of our Koné gold project in Côte d’Ivoire,” Montage CEO Martino De Ciccio said in a release.

“With a strengthened balance

SolGold signs US$750M gold stream deal for Ecuador project

FINANCING | Most funds earmarked for construction

BY CECILIA JAMASMIE, MINING.COM

Franco-Nevada (TSX: FNV NYSE: FNV) and Osisko Gold Royalties (TSX: OR, NYSE: OR) have agreed to provide US$750 million in funding to SolGold (TSX: SOLG; LSE: SOLG) for its Cascabel copper-gold project in Ecuador in exchange for a portion of the gold produced there.

The two Canadian firms will provide the cash in two phases. The first US$100 million will help SolGold conduct feasibility studies and secure permits needed for a final investment decision.

The bulk of it, US$650 million, will be allocated for the construction of the mine in the northern Ecuadorean province of Imbabura, SolGold said.

Franco-Nevada and Osisko will contribute 70% and 30% of the overall investment, respectively. This will entitle them to a total of 20% of the extracted gold until SolGold’s production hits 750,000 ounces.

After reaching this target, the percentage will decrease to 12% for the duration of the mine’s operation.

“We are pleased to once again partner with SolGold with this gold stream, which complements our existing 1% royalty acquired in 2020,” Paul Brink, Franco-Nevada president and CEO said. “Cascabel

ranks amongst the best copper-gold development projects in the world and has the potential to add significant GEOs (gold equivalent ounces) to our growth pipeline.”

Osisko president and CEO, Jason Attew, said in a separate release the deal will enhance Osisko’s growth profile at an attractive rate of return. It has an existing 0.6% net smelter return royalty on

Cascabel, signed in 2022.

The news follows SolGold’s commitment to invest US$3.2 billion in the project, which would be the largest mining investment in Ecuador’s history, and a loan of $10 million it obtained in May.

The Ecuadorian government inked a contract with SolGold in June for the development of Cascabel, which is expected to gener-

ate an investment of over US$4.2 billion during its 28 years of operation, according to figures from the country’s energy ministry.

Major miners have invested in SolGold, including BHP (NYSE: BHP; LSE: BHP; ASX: BHP), Newmont (NYSE: NEM; TSX: NGT) through the acquisition of Newcrest Mining, and China’s Jiangxi Copper.

Multi-generation asset

SolGold released in February a new prefeasibility study for Cascabel in which it managed to slash upfront costs to US$1.6 billion, from US$2.8 billion in an April 2022 prefeasibility.

According to SolGold, the size of the resource indicates the mine’s potential to be a multi-generational asset, with potential to become one of the 20 largest copper-gold mines in South America.

Investors have been skeptical of SolGold management’s ability to deliver the project to its potential. The company’s share price has halved over the past year, while the miner has had to cut spending to stay afloat, prompting a strategic asset review.

SolGold’s shares traded at 20¢ apiece before press time., valuing the company at £337.9 million (about US$435.2 million). TNM

Koné is slated to produce 300,000 oz. of gold annually over the first half of a 16-year mine life.

sheet, we will be well positioned to rapidly continue unlocking value for our stakeholders by progressing the Koné project towards an anticipated construction launch by first quarter 2025.”

The West African country granted the final mining permit for Koné, which is about 600 km north of the capital, Abidjan, in early July. Montage has said it’s aiming the US$712-million project to be among the largest and least expensive mines in the region.

It’s slated to produce 300,000 oz. of gold annually over the first half of a 16-year mine life with all-in sustaining costs of US$998 per oz., according to an updated feasibility study released in January.

Foreign investment

Zijin is backing Montage after Vancouver-based Solaris Resources (TSX: SLS; NYSE: SLSR) in May pulled out of a $130-million funding deal that would have given China’s largest producer of copper and gold a 15% stake. Solaris, which is developing the Warintza copper project in Ecuador, blamed a fourmonth Canadian national security review for the move.

The Montage investment differs in that gold isn’t considered a critical mineral. Shear zone

The Koné property sits in the same shear zone hosting Fortuna Silver Mines’ (TSX: FVI; NYSE: FSM) Seguela gold mine 80 km south, and Barrick Gold’s (TSX: ABX; NYSE: GOLD) Fonondara, Cassere and Caribou advancedstage targets to the north.

The government also issued an eight-year mining permit for Koné’s satellite Gbongogo deposit, one of several within trucking distance that could form the core of a new gold district with processing at a central mill, Montage has said. Montage says it’s aiming to drill 90,000 metres this year on about 15 satellite targets across its 2,259-sq.-km land package and outline a resource on several by year-end.

Preliminary drill results show 14.1 metres grading 8.04 grams gold per tonne and 17.45 metres at 2.74 grams at the Diouma North target, the company said July 9. Others include 12 metres grading 6.6 grams at Lokolo Main, 19 metres at 3.08 grams at Sissédougou, and 14 metres at 1.62 grams at Yeré North. Koné has a US$1.1 billion after-tax net present value at a 5% discount rate and a 39% internal rate of return at a US$2,050 per oz. gold price, the feasibility study showed. Shares in Montage Gold traded at $1.68 near press time, valuing the company at $405.7 million. They’ve traded in a 52-week range of 51¢ to $1.87. TNM

Fission Uranium’s Patterson Lake South project in Saskatchewan. FISSION URANIUM

SolGold’s Cascabel project in Ecuador. SOLGOLD

Paladin P41 >

donedeals

ACG opts for US$290M copper mine after dead US$1B nickel deal

TURKEY | Aims to build mid-tier copper miner

BY COLIN MCCLELLAND

ACG Acquisition (LSE: ACG), founded by a mining executive who helped create aluminum giant Rusal, is taking another stab at green metals after a US$1-billion deal last year failed to close.

The special purpose acquisition company (SPAC), run by Artem Volynets, is funding the US$290-million purchase of a copper, gold and silver mine in Turkey with cash, shares and debt, Volynets told The Northern Miner by phone from London on July 18.

The target is the Gediktepe mine held by Lidya Madencilik Sanayi ve Ticaret Anonim Şirketi, a subsidiary of Istanbul-based conglomerate Çalık Holding. This first asset for ACG, which started in 2022, is expected to be active before Aug. 31 as the SPAC is renamed ACG Metals.

Last September, ACG and London-based private equity firm Appian Capital Advisory ended a massive deal for two mines, one copper the other nickel, that was to be backed by equity investments from Glencore (LSE: GLEN), Stellantis and Volkswagen.

That deal collapsed because the

nickel price had plunged about 35% in last year’s first nine months and investors wanted revised arrangements, Volynets said. In contrast, the new effort concerns less-volatile copper and seller Lidya is maintaining a 30% equity stake, he said.

“They will be our strategic partner and our interests here are aligned, unlike last time which was a cash-out for the seller,” the chairman and CEO said. “The vision for us is to consolidate the copper sec-

tor through a roll-up strategy buying individual assets.”

Mid-tier target

ACG Metals wants to acquire more assets to build a London-listed copper producer of around 300,000 tonnes a year that would fill a gap under Antofagasta (LSE: ANTO), which produced 660,600 tonnes last year. Volynets says he’s reviewing about eight targets with intentions to buy about three in the next

Heliostar buys Argonaut mines

MEXICO | Company grows to a multi-asset producer

BY COLIN MCCLELLAND

Heliostar Metals (TSXV: HSTR; USOTC: HSTXF) is again buying assets from the former Argonaut Gold to expand in Mexico.

Vancouver-based Heliostar is negotiating with lenders for a loan to pay for the $5 million purchase, it said on July 17. The acquisition includes the San Agustin and La Colorada mines; and the San Antonio and Cerro del Gallo projects, it said.

The deal also cancels US$20 million in payments linked to Heliostar’s US$30-million acquisition of the Ana Paula project from Argonaut last year, and US$150 million in contingency payments on San Antonio from a previous option agreement, Heliostar said.

“The company transitions from single asset developer to a multi-asset producer,” CEO Charles Funk said in a release. “The addition of the two producing gold mines provides cash flow to bring new production online.”

Mexican assets

Heliostar aims to reach production of more than 500,000 oz. of gold a year by 2030, the company said in May, from around 200,000 oz. now. It secured $20 million in debt financing for Ana Paula’s development in May.

Argonaut sold its main asset, the Magino gold mine in northern Ontario, to neighbour Alamos Gold (TSX: AGI; NYSE: AGI) for US$325 million. Argonaut then spun out its Mexican assets to Florida Canyon Gold, which led to Heliostar’s Ana Paula deal and the newly announced transaction.

The company said it would continue to focus on Ana Paula, which is in the Sierra Madre del Sur mountain range halfway between Mexico City and Acapulco in Guerrero state.

Ana Paula contains 710,920 measured and indicated oz. of gold in 3.4 million tonnes grading 6.6 grams gold per tonne. It also has 4.2 million indicated tonnes grading 4.24 grams gold for another 447,512 ounces.

Heliostar aims to reach production of more than 500,000 oz. of gold a year by 2030.

The new deal expands Heliostar’s measured and indicated resources to 3.5 million oz. of gold plus the Cerro del Gallo historical resource, the company said. It pegged the acquisition cost of measured and indicated resources at less than US$1.80 per oz. of gold.

Management team

“Perhaps of most value is the addition of a strong management team in Mexico that expands our capability to deliver on Heliostar’s growth goals,” Funk said. He called the deal transformative.

The La Colorada mine, located in Sonora, produces gold from residual leaching while on care and maintenance, the company said. It produced about 140,000 oz. a year from 2012 to last year, it said. First-quarter output this year was 3,922 oz. gold and 6,848 oz. silver.

The San Agustin mine, formerly the El Castillo Complex in Durango state, holds the San Agustin open-pit heap leach gold mine, and the closed El Castillo open-pit heap leach gold mine. The San Agustin mine produced 7,568 oz. gold and 39,319 oz. silver in this year’s first quarter.

Cerro del Gallo in Guanajuato state and San Antonio in Baja California Sur state are advanced gold development projects, Heliostar said. The deal, which is due to close in October, also cancels the issuance of a 2% net smelter return royalty on the San Antonio project.

Heliostar Metals shares traded at 32¢ near press time, valuing the company at $65.6 million. They’ve traded in a 52-week range of 18¢ to 40¢. TNM

few years.

Gediktepe’s success in gold and silver — it produced 34,000 oz. of gold and 361,000 oz. of silver last year — bodes well for a pivot into copper and zinc output by adding US$145 million in sulphide processing, he said. The mine, about 250 km south of Istanbul in the Bigadiç district of western Turkey’s Balıkesir province, started in 2021.

ACG is funding the purchase and capital spending with US$100 million in cash, US$37 million in ACG shares for Lidya, and US$67.5 million in equity investments, ACG said in a release.

Financing also includes US$40 million in gold prepayments, US$110 million of senior debt, US$22.5 million of mezzanine debt and US$13 million in cash flows from the existing oxide operation, it said.

The expansion project targets annual production of up to 25,000 tonnes copper-equivalent over an 11-year initial mine life from 2026 with all-in sustaining costs of US$2.49 per lb. copper-equivalent. It has an after-tax net present value of US$318 million at a 10% discount rate, ACG said.

Shares in ACG Acquisition traded atUS$7.50 near press time,

valuing the company at US$30.8 million. They’ve traded in a 52-week range of US$2 to US$20.50.

Traxys

The copper processing initiative is to be financed by senior debt and equity of US$135 million from a leading global mining private equity fund that Volynets said he would name later.

Also, metals trader Traxys Europe is funding up to US$25 million in mezzanine debt and equity, while a group of investors led by ACG’s cosponsors and a European family office are financing US$60 million in equity, the CEO said.

Volynets’ M&A strategy avoids auctions and focuses on relationships he and his team built up over decades in mining, he said.

His vision is to build a large pure-play copper company recalls how he led the merger among Sual Group, Rusal and Glencore’s alumina assets to create UC Rusal and its US$2.2-billion initial public offering in Hong Kong in 2010.

“Last time, I was consolidating the sector for aluminum and it resulted in a US$20-billion company (in total assets),” he said. “I see no reason why we should set ourselves goals which are smaller.” TNM

Marimaca Copper gets $68M injection from South Africa’s Assore

CHILE | Funding to advance Marimaca

BY MINING.COM STAFF

Chile-focused Marimaca Copper (TSX: MARI) said on July 16 that South Africa’s Assore Group is investing $68 million in the company through its subsidiary Assore International Holdings. Marimaca, which owns the namesake project in Chile’s Antofagasta region, said the strategic investment was divided into two parts. One is Assore’s acquisition of 9.4 million Marimaca shares from Ndovu Capital, an affiliate of Tembo Capital Mining, at a price of $4.50 per share, for a total of $43.4 million to Tembo Capital.

The second part involves Assore’s participation in a non-brokered private placement by subscribing to 5.7 million units for a total of nearly $25.8 million.

After these two transactions, Assore’s ownership of Marimaca would be 14.99% on a non-diluted basis and 18.07% on a partially diluted basis. Prior to the Tembo acquisition and the Assore private placement, the mining investment group had no holdings in Marimaca.

The Canadian copper explorer and developer also revealed that another, unnamed investor would participate in a private placement, subscribing for 1 million units at the same pricing terms as the Assore funding. This will bring in an additional $4.5 million.

The funds raised will be used to advance Marimaca’s flagship project, including a definitive feasibility study for the mine. They will also be allocated to cover exploration work at important targets within Marimaca’s regional land holdings.

“When conflicting investment and project development timelines meet, especially with one of a company’s key investors, it can create challenges for management,” Marimaca’s president and CEO, Hayden Locke,

said in a statement. “With this transaction, Tembo has introduced a new investor that is perfectly aligned with the company’s longer-term objective, to be a copper producer.” Since its discovery in 2016, Marimaca has more than doubled the deposit’s resource, most recently estimated at 200 million tonnes grading 0.45% copper for 900,000 tonnes of metal in the measured and indicated category. It also contains 37 million inferred tonnes grading 0.38% copper for 141,000 tonnes.

During the first six years of mining, the open-pit, heap-leach project is expected to deliver 40,000 tonnes of copper cathodes annually, according to a 2019 preliminary economic assessment. Total recovered copper over its 12-year life is about 430,000 tonnes.

Shares in Marimaca jumped 6.3% to $4.08 apiece on the news on July 16, before settling at $3.98 apiece at press time. The company has a market capitalization of $375.1 million. TNM

The Gediktepe mine in Turkey is ACG Acquisition’ first step to build a mid-tier copper producer. ÇALIK HOLDING

Marimaca Copper’s namesake project in Chile. MARIMACA COPPER

projectupdates

Ramp Metals surges on Sprott backing for Sask project

EXPLORATION | Geologists track trend from old Rottenstone mine

BY COLIN MCCLELLAND

Ramp Metals (TSXV: RAMP) shares gained more than a quarter of their value on July 17 after gold bug Eric Sprott invested in the Saskatchewan explorer.

Sprott is the lead investor in a $4.5-million stock offering due to close around Aug. 8, Ramp said in a release. It has the Rottenstone SW project that in June reported the Ranger-01 hole result of 7.5 metres of 73.55 grams gold and 19.5 grams silver starting at 227 metres downhole.

The shares, which the company has said are held 60% by management and directors, rose by 16% to close at 80¢ apiece in Toronto on July 17. Closer to press time, the shares were at 82¢, up nearly 340% since listing in March at 19¢. The company is valued at $27.4 million.

About 3.8 million shares are to be offered through Canada’s charity flow-through regime at a price of 78¢ apiece for gross proceeds of around $3 million, Ramp said. Another 2.7 million shares are to be priced 55¢ each to raise about $1.5 million, it said.

Rottenstone mine

CEO Jordan Black commented on how a second set of drill results at Rottenstone SW, which is on the same trend as the historic Rottenstone mine, hit mineralization 3 km away from the June Ranger result.

CanAlaska posts uranium discovery West McArthur JV

SASKATCHEWAN | July drilling highlights Pike zone grades

BY CANADIAN MINING JOURNAL STAFF

CanAlaska Uranium (TSXV: CVV; US-OTC: CVVUF) announced a new discovery in July at the Pike zone of its West McArthur joint venture project with Cameco (TSX: CCO; NYSE: CCJ) in Saskatchewan’s eastern Athabasca Basin.

Drillhole WMA082-8 revealed an intersection of 6.87% radiometric equivalent uranium oxide (eU3O8) over 16.9 metres, including a high-grade core of 11.62% eU3O8 over 9.3 metres, CanAlaska said on July 16. The find is a milestone as the first hole to extend drilling to the zone’s east, it said in a release.

“For the team, this is a clear indication they are on the right path to successfully expanding the Pike zone ultra high-grade uranium footprint during the summer program,” CanAlaska CEO Cory Belyk said.

The summer drilling campaign of about 9,000 metres aims to further delineate and expand this high-grade uranium discovery both at the unconformity and within the upper basement, the company said. It’s targeting 10 to 14 unconformity intersections with two diamond drills. CanAlaska holds 83.35% of the project, operates it and is funding

this year’s West McArthur exploration program.

Share bump

A week previously, CanAlaska shares jumped by more than 10% on a rich hit of 21.6 metres grading 3.44% eU3O8 at Pike.

The intercept in drill hole

WMA082-7 included a 5.4 metre section at the unconformity grading 10.9% eU3O8

“The continuation of ultra high-grade uranium mineralization at the unconformity and over significant width in the first drill hole of the summer program is a very encouraging indication that the Pike zone discovery will incrementally grow as drilling continues through the summer,” Belyk said in a release.

In February, hole WMA082-4 returned even stronger mineralization from the Pike zone. It cut 16.8 metres of 13.8% eU3O8, including 4.7 metres of 40.3% and 2.4 metres of 13.5% eU3O8

CanAlaska Uranium holds about 5,000 sq. km of ground in the Athabasca Basin. The company also has the Moon Lake South joint venture project in the eastern Athabasca Basin with Denison Mines (TSX: DML; NYSE: DNN).

CanAlaska has a market cap of $96.3 million. Its shares traded at 62¢ in late July, within a 52-week range of 30¢ and 79¢. TNM

“It shows a cross-regional strike,” the executive said by phone July 8. “Hitting gold in all four holes on our first four holes ever on the property is something people dream of their whole life.”

However, the market knocked

Ramp’s stock at the time when the newer results showed hole Rogue01 cut 4.5 metres grading 0.66 gram gold per tonne from 14 metres depth. Hole Rogue-02 returned 1.5 metres at 0.6 gram from 216.5 metres downhole; and Rogue-03

cut 1 metre at 1.22 grams from 243 metres depth.

The Ranger and Rogue holes comprise Ramp’s first drilling at the 325-sq.-km project about 700 km north of Regina. It’s on the same geological trend as the former Rottenstone open pit mine 30 km to the northeast. It produced nickel, platinum group metals (PGM) and gold from 1965 to 1969 and is now held by Fathom Nickel (CSE: FNI).

Eye structure

Ramp also compares its project with the eye structure of the NovaBollinger nickel-copper mine in Western Australia that Sirius Resources sold to IGO (ASZ: IGO) for A$1.8 billion ($1.7 billion) in 2015. Mark Bennett, who led Sirius, is an adviser to Ramp.

“That’s why we staked this eye structure here because I found it had very close similarities to the Nova-Bollinger structure,” Garrett Smith, vice-president for exploration, said by phone on July 5.

“When we flew our magnetic and electro-magnetic surveys, we got these textbook nickel sulphide

Snowline drills 4.67 grams gold per tonne at Rogue

YUKON | Two holes’ results match and exceed block model forecasts

BY CANADIAN MINING JOURNAL STAFF

Snowline Gold (TSXV: SGD; US-OTC: NWGF) says the first two holes of this year’s drilling returned high grades from the Valley deposit at the Rogue project in eastern Yukon.

Hole V-23-072 cut 404.8 metres averaging 2.27 grams gold per tonne, including 100.8 metres averaging 4.67 grams from surface, the company said on July 24. The result is consistent with the block model prediction overall and slightly outperforming the model near surface, the company said in a release.

Hole V-23-071 returned 449.7 metres grading 1.77 grams gold from surface, including 169.2 metres of 2.89 grams gold, surpassing initial resource block model grade predictions by 36%. Snowline collared the hole in a large gap in the deposit’s coverage.

“We are encouraged by such a strong start to our 2024 exploration campaign and excited to have regional drilling underway,” CEO Scott Berdahl said. “Our first two holes of the season at our Rogue project’s Valley deposit underscore the strength and consistency of the deposit, particularly when it comes to high-grade, near-surface gold mineralization.”

Snowline Gold has returned strong results at Rogue ever since it began drilling in 2021.

The company posted an initial

resource estimate in June. It outlined 76 million indicated tonnes at 1.66 grams gold, containing about 4.1 million oz., and 81 million inferred tonnes at 1.25 grams containing about 3.3 million oz. of gold.

Tombstone belt

Major B2Gold (TSX: BTO) invested into Snowline early last year. The companies are seeking success in the Tombstone gold belt arcing across the region that includes Kinross Gold ’s (TSX: K; NYSE: KGC) Fort Knox mine in Alaska. Victoria Gold ’s (TSX: VGCX) troubled Eagle mine is also on the belt.

Additional assay results from

more holes within and adjacent to the Valley deposit are pending. Three drills are active.

Snowline is also drilling the nearby Einarson project’s Jupiter target. The company says mineralization, including visible gold, has been encountered there in large step-outs in the first holes of the stage two program.

Both projects are located east of Mayo, Yukon, near the border with the Northwest Territories, in the traditional territory of the Na-Cho Nyäk Dun First Nation. Shares in Snowline Gold traded for $4.36 apiece at press time, valuing the company at $690.6 million.

The stock has traded in a 52-week range of $3.95 to $6.40. TNM

Ramp’s Rottenstone SW project is located in northern Saskatchewan. RAMP METALS

Ramp Metals P41 >

Snowline CEO Scott Berdahl at the Rogue project in Yukon. BLAIR MCBRIDE

projectupdates

Rio Tinto ready to build Simandou after almost 30 years of setbacks

GUINEA | Initial costs at iron ore JV pegged at US$11B

BY CECILIA JAMASMIE, MINING.COM

Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) says it has all the regulatory approvals needed to resume construction at its vast Simandou iron ore asset, the world’s biggest mining project, which it’s co-developing with a Chinese consortium (WCS) in Guinea.

Set to be the world’s largest and highest grade new iron ore mine, the project will add around 5% to global seaborne supply when it comes online. Rio Tinto owns two of the four Simandou mining blocks as part of its Simfer joint venture with China’s Chalco Iron Ore Holdings (CIOH) and the government of Guinea. Rio Tinto holds a 53% stake, while CIOH holds the rest.

A second mine, the WCS project, will be built by Baowu — the world’s largest steel producer — in partnership with a consortium led by the Singapore-based Winning International Group.

Rio Tinto first secured an exploration licence for Simandou in 1997. Since then, the country has experienced two coup d’états, seen four heads of state and undergone three presidential elections.

The project involves the construction of a 552-km rail line to transport high-grade iron ore from two new mines in the Simandou mountains — one to be built and operated by Rio Tinto — to a new deep water port on Guinea’s Atlantic coast.

‘Only’ US$11.6B

Rio Tinto estimates initial development costs of about US$11.6 billion. The company’s total annual capital investment from 2024 to 2026 has been pegged at about US$10 billion, with the majority going to Simandou as spending winds down at the Oyu Tolgoi project in Mongolia beyond this year.

The company noted that CIOH has fulfilled its financial obligations by making two payments to cover its share of capital spending for critical works carried out by Simfer.

Rio said the first payment of

Centamin boosts Doropo economics

CÔTE D’IVOIRE

| Gold project boasts 35% IRR

Rio Tinto first secured an exploration licence for Simandou in 1997. Since then, the country has experienced two coup d’états, seen four heads of state and undergone three presidential elections.

around US$410 million in June covered expenses up to the end of 2023. A second payment of about US$575 million, for 2024 costs, was made on July 11. Infrastructure costs will be split equally between Simfer and WCS, with Simfer focusing on blocks 3 and 4 for a 60-million-tonne-per-year mine, and WCS developing blocks 1 and 2 of Simandou.

The mine is slated to begin commercial production by the end of next year, adding an annual supply of around 120 million tonnes of high-quality iron ore after it reaches full capacity.

Rio Tinto, which reported second-quarter iron ore shipments below analyst estimates earlier on July 16, said its share of expected capital investment remaining to be spent in Simandou now sits at US$5.7 billion, counting from the beginning of 2024.

Simandou has faced construction delays due to legal disputes, local political changes, and the challenges and expenses of building a 600-km rail and port infrastructure. TNM

BY MINING.COM STAFF

Centamin (TSX: CEE; LSE: CEY) says its definitive feasibility study improves the Doropo gold project in Côte d’Ivoire by reducing community impacts while returning capital to investors in about two years.

The project has a post-tax net present value of US$426 million, a 34% internal rate of return and a 2.1-year payback period, according to the study issued on July 18. The potential return jumps the company’s hurdle rate of 15% at the US$1,450 per oz. gold price used for mineral reserve estimation, Centamin said in a release.

The mine’s new plan would resettle 500 people instead of 2,000-3,000 as envisioned in last year’s prefeasibility study, lowering execution risk, CEO Martin Horgan said. No relocations will be required during construction and the mine’s first two operating years, he said.

“The results of the (feasibility) demonstrate a robust project that meets Centamin’s investment criteria,” Horgan said. “The project shows a strong first five years with production in excess of 200,000 oz. per annum at an all-in sustaining cost below US$1,000 per oz. delivering an accelerated payback on investment.”

US$373M capex

Total construction capital costs are estimated at US$373 million, an increase of less than 7% from the prefeasibility study. The new study keeps the former’s mining and processing operations, Centamin said.

Over the 10-year mine life, Doropo’s annual gold production is estimated at 167,000 oz. at an all-in sustaining cost of US$1,047 per ounce. The production is supported by 1.9 million oz. of probable mineral reserves at an average grade of 1.53 grams gold per tonne.

The 1,850-sq.-km Doropo project comprises seven exploration permits. Centamin first began work on the project in 2016.

The Côte d’Ivoire government granted Centamin its environmen-

tal permit for the project in June following submission of an impact assessment. The company plans to apply for a mining licence this quarter, then make a final investment decision if it earns the licence. Doropo would become the gold miner’s second producing asset after the Sukari mine in Egypt. It produced 456,625 oz. last year, up 4% from 2022.

Sukari is the country’s only modern gold mine, with a projected life to 2035. It holds 194 million proven and probable tonnes grading 1.23 grams gold for 7.7 million oz. of contained gold, the company said this year.

Centamin shares traded at $2.11 apiece before press time, for a market cap of £1.4 billion. TNM

Vizsla Silver’s Panuco ‘blows past’ analyst estimates

MEXICO | New study forecasts 86% return

BY COLIN MCCLELLAND

Vizsla Silver’s (TSXV: VZLA; NYSE: VZLA) preliminary economic assessment (PEA) of its main Panuco silver-gold project in Mexico shows it to be a global contender, according to Raymond James.

Panuco has a US$1.1 billion after-tax net present value at a 5% discount rate, an 86% after-tax internal rate of return and a ninemonth payback period, according to the study issued on July 24. It could cost US$224 million to build.

“Panuco blows past our estimates,” mining analyst Craig Stanley at Raymond James said in a note. The PEA “confirms Panuco as one of the top undeveloped silver projects,” he said.

The proposed underground mine in Sinaloa state could produce 162.1 million silver-equivalent oz. over an initial 10.6-year life, the study showed. It was based on prices of US$26 per oz. silver and US$1,975 per oz. gold.

A feasibility study is scheduled for the second half of next year and the company is well-funded with $38 million in cash and $53 million in working capital as of April 30, Stanley said.

“We continue to model construction commencing in first quarter 2026 and first production in third quarter 2027,” he said.

Vizsla proposes contractor mining to reduce upfront capital costs and achieve higher productivity.

Panuco may have all-in sustaining

costs of US$9.40 per oz., according to the early-stage study. Total capital costs including sustaining capital, expansion, contingencies and closure among other items amounts to nearly US$500 million.

The study envisions a 3,300-tonnes-per-day production rate for the first three years before expanding to 4,000 tonnes a day.

It could produce 9.3 million oz. silver and 78,000 oz. gold per year, equalling 15.2 million oz. silver-equivalent, Vizsla said. The first two years would average 13.8 million oz. silver and 85,000 oz. gold for 20.2 million oz. silver-equivalent, it said.

The “high margin” project would provide “exceptional free cash flow, particularly in the early years, allowing for a very rapid payback of the estimated low capital spending,” president and CEO Michael Konnert said in a release.

Two areas Panuco is a collection of silver-gold

deposits from surface to depths of more than 600 metres. The deposits range in thickness from 1.5 metres to greater than 20 metres, Vizsla said.

The study considers two contiguous underground mines, Copala and Napoleon. Copala, the larger of the two, would access the Copala, Cristiano and Tajitos deposits. Napoleon, west of Copala, would mine the Napoleon, La Luisa, Cruz Negra and Josephine deposits.

The plan calls for a a combination of long-hole stoping and driftand-fill mining methods.

Ore is to be processed through a three-stage crushing and grinding circuit, along with a leach and Merrill Crowe circuit to produce silver-gold doré bars, according to the study.

Mineral resource

In January, Vizsla updated Panuco’s indicated resource to 7.5 million tonnes grading 243 grams silver per tonne, 2.12 grams gold, 0.23% lead and 0.71% zinc for contained metal of 58.3 million oz. of silver, 508,000 oz. gold, 17,000 tonnes lead and 53,300 tonnes zinc. Less than a third of Panuco’s land package, which is in a 72-sq.-km. district hosting past producing mines, has been explored, CEO Konnert said.

“It’s important to note that this PEA represents only a snapshot of the potential value of Panuco,” he said.

Vizsla Silver shares traded at $2.70 near press time for a market capitalization of $653.3 million. TNM

Simandou in Guinea. GUINEA MINISTRY OF MINES AND GEOLOGY

Centamin’s Doropo gold project in Côte d’Ivoire. CENTAMIN

Vizsla Silver’s Panuco project in Mexico. VIZSLA SILVER

> Victoria Gold from P1 says. An ambulance picked him up and drove him down to the main camp below. He said he had some scratches and bruises and was given light medical attention. He said he’s not concerned about cyanide exposure because his skin didn’t contact the ore.

a landslide that damaged some infrastructure. Damage was sustained to the pad’s embankment, piping, pumping, liner conveyors and some electrical infrastructure, Victoria said in a news release on July 12, its last since the accident. The mine is about 375 km north of Whitehorse.

‘I braced for impact’

The operator, who has been working at Eagle for two years, says he was inside his bulldozer and on top of the leach pad around 5:30 a.m. on June 24. The primary leaching pad can accommodate as much as 90 million tonnes of ore, and about 38.9 million tonnes was stacked on the pad since production started, Victoria said.

A haul truck was driving on the pad towards him, when he felt the ground move and saw to his right that the ore under the pad was splitting and cracking, he says.

He tried reversing the bulldozer, but the collapsing pad pulled him down.

“I needed to hold on because when I started sliding down the mountain it was very steep. I braced for impact and slid down the side of the mountain about 200 metres,” he said.

When his bulldozer stopped sliding, it was tipped 45 degrees on its side. He grabbed his backpack and cell phone and got out.

He tried clambering across the slope, but more gravel-size ore slid down, almost burying him. He managed to scramble to a small rock shelf. He radioed his supervisor and, fearing his crew was killed, was relieved to hear that everyone was accounted for.

He climbed further up the slope to a second shelf and sat down. When it began to slide, he continued climbing until he reached an intact part at the top of the pad.

Company didn’t ask’ Another supervisor radioed him and said he saw him on the pad, he

> Safety from P13

just went to lunch,” he said.

Drug and alcohol use

The WSCB’s Avery confirms that policies prohibiting drug and alcohol were enforced at the mine.

However, this contradicts with what some workers told The Northern Miner. They claim that drinking and drug use were tolerated.

“In the garbage can I saw a whole bunch of beer cans and bottles and a couple bottles of whiskey at the camp by the incinerator,” one operator said. “You’re not allowed to have booze there. It’s a dry camp.”

Drug-testing only happened if there were metal-on-metal accidents involving machinery colliding with other machines, the safety department member said. The three sources, who worked at the site as far back as four years ago and as recently as the day of the accident, said they never had bags and clothing checked when they arrived on site. They said they had heard about drug-sniffing dogs, but didn’t see them.

The former health and safety worker said there were no further investigations after housekeepers gave security staff drug paraphernalia they found in the camp buildings.

“Unless they were caught and tested, it was basically open range,” he said. “We just turned a blind eye to it because nobody wanted to dig into the deeper problem of how to control it.” TNM

“I was tossed around in the dozer,” he said. “It was a violent ride on the way down.”

He wasn’t taken to a hospital and no one from Victoria Gold asked him if he was okay, he said.

The Yukon government reported in late June that one person sustained non-serious injuries in the accident, and two received first aid treatment. Victoria said in its release on July 4 that there were no injuries in the accident. The operator said he’s not aware of anyone else who was injured.

When he returned to his trailer and tried to text his family, he found the internet was out, and most of the land lines. He eventually found a working line and reached his family.

Default notices

Victoria acknowledged on July 12 there’s no assurance it will be authorized to resume production or that it will have enough cash to repair the damage at Eagle, remediate the accident’s effects or restart production. The company has received notices of default from its lenders under a credit agreement from Dec. 18, 2020, it said in early July. Its first quarter financial report this year states it held debt totalling $232.5 million as of March 31.

In operation, the mine employs about 500 people.

The operator is now at home in British Columbia.

He received his latest pay from Victoria on July 11, but said he’s missing almost 18 hours’ worth of wages.

He said he doesn’t plan to return to Victoria Gold.

“I’m going to take the summer to decompress,” he said. “I’m not myself. I’m not at the gym or trail running. I don’t know if I ever want to go back to mining.” TNM

> Cleanup from P13

said. “This is consistent with what we would expect to see for groundwater, which takes longer to seep into the environment and surface water.”

Drinking water in the area near Eagle remains safe to consume, Dr. Sudit Ranade, Yukon’s Chief Medical Officer of Health said, adding that it’s also still safe to go hunting. Yukon-based company Core Geoscience took over responsibility for testing water samples on July 20.

First Nation concerns

The cyanide results worried members of the First Nation of Na-cho Nyäk Dun (FNNND). Eagle is located on FNNND traditional territory.

“We have high concerns that (cyanide is) sitting in the ground water,” FNNND Chief Dawna Hope told The Northern Miner “We’re not sure where those numbers are coming from in regards to the groundwater. We’re not sure how deep the wells are.”

Teams from the First Nation have tested surface water after the accident and sought evidence of damage to plants and wildlife. Hope said one dead fish has been found.

It also conducted LiDAR testing using drones to monitor ground water, and its technical team is reviewing 17,000 images, Adrienne Hill, from the FNNND’s Treaty Implementation Department said.

Hill expressed concern about the immediate cleanup at Eagle.

“Re-circulating contaminated

water back onto the pad as an emergency measure because there’s nowhere to put it, is not ideal,” she said. “We don’t think the Yukon government is being transparent about how dire the situation is.”

FNNND called for an independent investigation of the accident in early July, calling the incident “deeply serious.”

The Yukon says terms of reference for a probe have been shared with FNNND, and work on forming a panel is underway.

The FNNND wants a temporary pause on mining in its traditional territories while the cumulative effects of the accident can be assessed. It says it supports sustainable mining activities.

In addition to the 500 people employed at Eagle, several companies associated with the FNNND held contracts there, and the suspension of operations there has forced them to seek work elsewhere. Hill said the economic loss from the end of royalty payments after the accident is “significant.”

Annual fees, production entitlements and bonuses paid by Victoria to the FNNND and Yukon government are substantial. Last year, Victoria paid the territorial government $1.8 million in taxes, Yukon workers compensation, property assessment and other expenditures. The FNNND received $1.3 million in fees, according to company disclosures. Victoria also has a comprehensive cooperation benefits agreement with the First Nation.

Victoria’s contracts with Yukon companies are worth $300 million,

according to a company presentation, with its workforce comprising 32% Yukoners, 17% women and 16% Indigenous. The mine contributes $18.8 million in wages.

Falling short

Another purpose of the berm build is to take action while the status of the slope is being investigated, Haney said. The Yukon government said earlier in July the slope isn’t stable enough for heavy machinery.

Pelly Construction and Hecla Mining (NYSE: HL) have been contracted to build the berm. Hecla operates the Keno Hill silver mine, about 35 km east of Eagle.

Victoria is currently irrigating stored water through the heap leach to open up more storage capacity, which it calls a temporary, 10 to 15-day measure, the government confirmed in an email to The Northern Miner. It’s also building more storage capacity on site.

Other ongoing actions include bringing the mine water treatment facility on-line according to an updated water treatment plan so it can discharge treated water as soon as possible. Although contaminated water is being treated on site, the treated water doesn’t meet the mine’s water licence requirements to be released to the environment. Victoria has hired Linkan Engineering to help with water treatment on site and with those upgrades.

In an inspector’s direction letter issued on July 20 and posted on the Yukon Water Board’s website, Sevn

Bohnet, a natural resource officer in the EMR department outlined various directions Victoria Gold had failed to satisfy.

They include insufficient detail in its July 9 water treatment plan regarding its ability to treat drain down volumes from the heap leach facility, or contaminated water kept in storage ponds and within the heap, or on how existing water treatment facilities could be expanded to treat 15,000 to 20,000 cubic metres per day.

Victoria was directed on July 10 to build a lined water storage facility to securely hold contaminated water, but as of July 17 had constructed an unlined excavation pond.

Bohnet set out several conditions Victoria was to meet by July 22. The miner was told to increase capacity of water storage facilities by July 22, procure reagents necessary to treat contaminated water, and provide an update on reagent supplies.

It was also to start installing groundwater monitoring wells outside the slide-impacted area by July 25.

Failure to follow the directions is an offense and the company may have to pay any costs incurred in carrying out the directions, Bohnet added.

In a news release on July 23, EMR Minister John Streicker said the additional directions issued on July 20 were an example of the government’s “progressive enforcement approach” to the Eagle cleanup response. TNM

The Eagle mine in June, days before the accident. BLAIR MCBRIDE

An aerial view of the Eagle mine, with the collapsed heap leach pad in the centre. BLAIR MCBRIDE

mining, metals & markets

ETF assets 24 Global gold funds data

Warrants & shorts 25 Capital raisings

28 EV metals

34 Mining events contents

Drill results

22 Market news 32 Market data

*Data may not be comprehensive and is provided on a best-efforts basis as of press time. Investors are responsible for their own due diligence.

Delivering fit-for-purpose solutions across the entire project life cycle

Delivering fit-for-purpose solutions across the entire project life cycle

Delivering fit-for-purpose solutions across the entire project life cycle

Our fit-for-purpose solutions encompass the skills of qualified geologists, geostaticians, analytical chemists, mineralogists, metallurgists, process engineers and mining engineers and inspectors brought together to provide accurate and timely mineral and process evaluation services across the entire project life cycle.

Our fit-for-purpose solutions encompass the skills of qualified geologists, geostaticians, analytical chemists, mineralogists, metallurgists, process engineers and mining engineers and inspectors brought together to provide accurate and timely mineral and process evaluation services across the entire project life cycle.

Our fit-for-purpose solutions encompass the skills of qualified geologists, geostaticians, analytical chemists, mineralogists, metallurgists, process engineers and mining engineers and inspectors brought together to provide accurate and timely mineral and process evaluation services across the entire project life cycle.

WWW.SGS.COM/NATURALRESOURCES NAM.NATURALRESOURCES@SGS.COM Delivering fit-for-purpose solutions across the entire project life cycle

Our fit-for-purpose solutions encompass the skills of qualified geologists, geostaticians, analytical chemists, mineralogists, metallurgists, process engineers and mining engineers and inspectors brought together to provide accurate and timely mineral and process evaluation services across the entire project life cycle.

WWW.SGS.COM/NATURALRESOURCES NAM.NATURALRESOURCES@SGS.COM

WWW.SGS.COM/NATURALRESOURCES NAM.NATURALRESOURCES@SGS.COM

WWW.SGS.COM/NATURALRESOURCES NAM.NATURALRESOURCES@SGS.COM

1

1

CAPITAL

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

8/23–7/24 8/22–7/23

Note: Trended capital raising activity may differ from the previous months as we have switched data providers in order to expand our coverage of market activities.

Investing in the Canadian Resource Sector at Reduced Cost of Capital

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Expanding the universe of exploration capital.

8

evmetals

evmetals

drillresults

TNM DRILL DOWN: TOP ASSAYS OF THE MONTH

Our TNM Drill Down features the top 10 gold, copper and silver assays of the past month. Drill holes are ranked by grade x width.

June 15, 2024 – July 15, 2024

warrants&shorts

TSX WARRANTS

Aris Gold Corporation ARIS.WT One Warrant to purchase one Common 07-29-2025 Share of the Issuer at $2.75 until expiry.

Giga Metals Corporation GIGA.WT.A One warrant to purchase one common 02-08-2025 share at $0.45 per share.

LithiumBank Resource LBNK.WT One warrant to purchase one common 02-16-2025 Corp. share at $2.00 per share.

Total Helium Ltd. TOH.WT.A One warrant to purchase one common 05-01-2025 share at $0.75 per share.

Caldas Gold Corp. CGC.WT One warrant to purchase one common 07-29-2025 share at $2.75 per share.

Rock Tech Lithium Inc. RCK.WT One warrant to purchase one common 08-19-2025 share at $4.50 per share.

Lion One Metals Limited LIO.WT One warrant to purchase one common 11-11-2025 share at $1.25 per share.

Silver Mountain AGMR.WT.A One warrant to purchase one common 02-09-2026 Resources Inc. share at $0.45 per share.

Osisko Development ODV.WT.B One warrant to purchase one common 03-02-2026 Corp. share at $8.55 per share.

Denarius Silver Corp. DSLV.WT One warrant to purchase one common 03-17-2026 share at $0.80 per share.

West Red Lake WRLG.WT One warrant to purchase one common 05-16-2026 Gold Mines Ltd share at $1.00 per share.

Aurania Resources Ltd. ARU.WT.B One warrant to purchase one common 10-21-2026 share at $2.20 per share.

Freeman Gold Corp

Osisko Development ODV.WT.A One warrant to purchase one common 03-02-2027 Corp. share at $14.75 per share.

Integra Resources Corp. ITR.WT One warrant to purchase one common 03-13-2027 share at $1.20 per share.

Elevation Gold Mining ELVT.WT.A One warrant to purchase one common 03-24-2027 Corporation share at $0.70 per share.

Osisko Development ODV.WT.U One warrant to purchase one common 05-27-2027 Corp. share at US$10.70 per share.

Silver Mountain AGMR.WT.B One warrant to purchase one common 04-24-2028 Resources Inc. share at $0.135 per share.

Bear Creek Mining BCM.W One warrant to purchase one common 10-05-2028 Corporation share at $0.42 per share.

POSITIONS Short positions outstanding as of Jul 15, 2024 (with changes from Jun 30, 2024) Largest short positions

Aluminum: US$1.01/lb.

Cobalt: US$11.76/lb.

Gold: US$2,383.14/oz.

Iron Ore 62% Fe CFR China-S: US$99.70

Nickel: US$7.02/lb.

Silver: US$27.81 per oz.

Zinc: US$1.18 per lb.

marketdata

COMMODITY PRICES | Prices current July 26, 2024

Coal: Central Appalachia, 12,500 Btu, 1.2 S02-R,W: US$74.00

Copper: US$4.04/lb.

Iridium: US$4,725/tr oz.

Lead: US$0.91/lb.

Rhodium: US$4,650/tr. oz.

Tin: US$13.19/lb.

Coal: Powder River Basin, 8,800 Btu, 0.8 S02-R, W: US$13.90

Copper: CME Group Futures September 2024: US$4.09/lb.;

September 2024: US$4.11/lb.

Lithium carbonate: US$11,790/tonne

Ruthenium: US$410 per oz.

Uranium: U 3O 8, Trading Economics: US$82.25 per lb.

July 22-29, 2024

Markets mixed on US election uncertainty

By Colin McClelland

U.S. markets varied for the week ending July 26 after cooling inflation countered a pullback in tech stocks and President Joe Biden exiting the election. The Dow Jones Industrial Average gained 0.7% to 40,589.34 points and the S&P 500 fell 1.2% to 5,430.7. In Canada, the S&P/ TSX Index rose 0.5% to 22,814.81 while the S&P/TSX Venture Composite Index eased less than one point to 579.33.

The S&P/TSX Global Mining Index slid 0.5% to 120.4, and the S&P/TSX Global Gold Index declined 1.1% to 347.38. Gold fell 1.7% to US$2,374.55 per ounce. The S&P/TSX Global Base Metals Index dropped 0.5% to 199.75 with copper at US$4.12 per lb., down almost US$1 from

its May 21 high of US$5.10 per pound. Seabridge Gold was the biggest NYSE percentage gainer, adding 12% to close at US$16.22 after British Columbia approved KSM project permits under a special designation. Intrepid Potash, United States Steel and Rio Tinto followed.

In Toronto, Seabridge, Nutrien and Teck Resources’ B shares led the S&P/ TSX Index by value gains. Wheaton Precious Metals, Cameco and Pan American Silver topped the downside.

On the S&P/TSX Venture Exchange, Founders Metals added 58¢ for $2.81 after reporting Suriname drill results. Homerun Resources and Colonial Coal followed.

Gold, copper prices ease

miningevents

2024

n August

August 5-7

Diggers and Dealers Mining Forum — Kalgoorlie, Australia

VENUE: TBA

MORE INFORMATION: www.diggersndealers.com.au

August 7-9

2024 Beijing International Coal and Mining Exhibition — Beijing, China

VENUE: China International Exhibition Center

MORE INFORMATION: www.en.ciceme.com

August 19-22

63rd Annual Conference of Metallurgists — Halifax, N.S.

VENUE: Halifax Convention Centre

MORE INFORMATION: www.metsoc.org/2024

August 26-28

Critical Minerals Conference 2024 — Brisbane, Australia

VENUE: Brisbane Convention and Exhibition Centre

MORE INFORMATION: www.ausimm.com/ conferences-and-events/critical-minerals-2024/

n September

September 2-4

International Future Mining Conference — Sydney, Australia

VENUE: TBA

MORE INFORMATION: https://int.ausimm.com/ conferences-and-events/future-mining/

September 2-6

Electra Mining Africa 2024 — Johannesburg, South Africa

VENUE: Johannesburg Expo Centre

MORE INFORMATION: www.electramining.co.za

September 10-13

Precious Metals Summit — Beaver Creek, Colo.

VENUE: Beaver Creek Resort

MORE INFORMATION: www.precioussummit.com/ event/2024-precious-metals-summit-beavercreek/

September 11-14

Mining Indonesia — Jakarta

VENUE: Jakarta International Expo

MORE INFORMATION: www.mining-indonesia.com

September 15-18

Gold Forum Americas 2024 — Colorado Springs, Colo.

VENUE: Broadmoor Hotel and Resort

MORE INFORMATION: www.goldforumamericas.com

September 17-19

Central Asian International Exhibition — Almaty, Kazakhstan

VENUE: Atakent International Exhibition Centre

MORE INFORMATION: https://miningworld.kz/en/ exhibition/about-the-exhibition

September 24-26

International Conference on Deep and High Stress Mining — Montreal

VENUE: Hotel Bonaventure

MORE INFORMATION: www.acgdeepmining.com

September 24-26

MINExpo International — Las Vegas

VENUE: Las Vegas Convention Center

MORE INFORMATION: www.minexpo.com

September 25-27

Rare Earth Mines, Magnets and Motors 2024 — Toronto VENUE: Fairmont Royal York

MORE INFORMATION: www.adamasevent.com

September 25-27

MINExpo 2024 — Dar-es-Salaam, Tanzania

VENUE: Diamond Jubilee Expo Center

MORE INFORMATION: www.expogr.com/ minexpotanzania/

September 29-October 3

International Mineral Processing Congress — Washington, D.C.

VENUE: TBA

MORE INFORMATION: www.smeimpc.org

n October

October 9-10

Western Australia Mining Conference and Exhibition – Perth, Australia

VENUE: Perth Convention and Exhibition Centre

MORE INFORMATION: www.waminingexpo.com.au/ en-gb.html

October 10-11

TNM International Metals Symposium — London, U.K.

VENUE: ETC Venue

MORE INFORMATION: https://events.northernminer. com

October 22-24

MiningMetals Uzbekistan — Tashkent

VENUE: Uzexpocentre NEC

MORE INFORMATION: www. mining.uz/en/

October 28-31

Xplor 2024 — Montreal

VENUE: Le Westin Montreal

MORE INFORMATION: www.xplor.aemq.org/en/

October 29-30

Mining Tech North America Expo — Vancouver

VENUE: Delta Hotels Burnaby Conference Centre

MORE INFORMATION: www. miningtechnorthamerica.com

October 29-31

IMARC — Sydney, Australia

VENUE: ICC Sydney

MORE INFORMATION: www.imarcglobal.com

n November

November 6-7

Mining Investment North America — Toronto

VENUE: DoubleTree by Hilton Toronto Downtown

MORE INFORMATION: www. mininginvestmentnorthamerica.com

November 10-13

Tailings and Mine Waste Conference 2024 — Colorado

VENUE: TBA

MORE INFORMATION: www.thetailingsnetwork. com/tailings-conferences/tailingsminewaste2024

November 14-15

121 Mining Investment — London, U.K.

VENUE: TBA

MORE INFORMATION: www.weare121.com/events/#

November 17-20

Yukon Geoscience Forum and Trade Show — Whitehorse

VENUE: Kwanlin Dun Cultural Centre

MORE INFORMATION: www.yukonminers.org/ geoscience/

November 25-26

Peru Rocks, the Awakening of a Giant — Lima, Peru

VENUE: Country Club Lima Hotel

MORE INFORMATION: www.chilexploregroup.cl/ PERU_ROCKS/

n December

December 1-2

International Metals Symposium — London, U.K.

VENUE: ETC Venues

MORE INFORMATION: events.northernminer.com/ international-metals-symposium-2024/

December 3-5

Mines and Money — London, U.K.

VENUE: TBA

MORE INFORMATION: www.minesandmoney.com/ london/index

December 11-14

International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles — Delhi, India

VENUE: India Expo Centre

MORE INFORMATION: www.bcindia.com/en/tradefair/current-information/

TOP 10 CANADA

Agnico, Barrick dominate top Canadian miners

BY COLIN MCCLELLAND

Agnico Eagle Mines (TSX: AEM; NYSE: AEM), which tops our list of Canadian miners by market value at $51.4 billion at the time of writing in late July, runs the country’s biggest gold mines by output: Detour Lake and Canadian Malartic.

The company is second on our list of Canadian miners by last year’s net income at US$1.9 billion. It attributed this year’s first-quarter net income of US$347.2 million to cost control, nearly 880,000 oz. in output and a record gold price.

“Some of the highlights include our second consecutive quarter of record operating margins and our second consecutive quarter of record free cash flow (US$395.6 million),” president and CEO Ammar Al-Joundi said on an April conference call.

“We remain focused on capital discipline,” he said. “We are absolutely determined at Agnico that increases in gold price go to our owners.”

Agnico is advancing the former Hope Bay gold mine project in Nunavut, where it also operates the Meadowbank and Meliadine gold mines, number three and four in Canada by production. It’s planning a $1-billlion underground expansion at Detour Lake that would increase annual output to 1 million oz., making it one of the world’s top-five gold mines.

Upper Beaver

The company expects to give an update in August on developing the Upper Beaver project near Kirkland Lake in northern Ontario as an underground gold and copper mine with a small open pit and processing facility.

“WE ARE ABSOLUTELY DETERMINED AT AGNICO THAT INCREASES IN GOLD PRICE GO TO OUR OWNERS.”

Underground at Agnico Eagle’s Canadian Malartic mine in Quebec. AGNICO EAGLE MINES

AMMAR AL-JOUNDI PRESIDENT AND CEO, AGNICO EAGLE MINES

Agnico’s Meliadine gold mine in Nunavut. AGNICO EAGLE MINES

Agnico Eagle Mines’ Meadowbank mine in Nunavut. AGNICO EAGLE MINES

> Canada Top 10 from P35

In July, Agnico pledged $93 million for a 9.9% stake in Foran Mining (TSX: FOM; US-OTC: FMCXF), which is advancing the McIlvenna Bay copper-zinc-goldsilver project in Saskatchewan. The major invested $8.2 million for 13% of First Nordic Metals (TSXV: FNM) in Finland and boosted its holding in Ontario-focused Maple Gold Mines to 19.9%.

Barrick Gold (TSX: ABX; NYSE: GOLD) leads our list of Canadian miners by net income at US$1.95 billion and is second according to market value at $44.7 billion.

The company produced 1.9 million oz. gold and 83,000 tonnes of copper in this year’s first half, the company said in July. That compares with 1.1 million oz. gold and 102,058 tonnes copper in last year’s second half, according to its annual report.

Barrick says costs should decline as output increases during this year’s second half. The global miner, which has only the Hemlo mine in Canada, expects increased production at Turquoise Ridge in Nevada after maintenance at the Sage autoclave in the first quarter. It continues to ramp up output at Porgera in Papua New Guinea and posted increases at Tongon in Ivory Coast, North Mara in Tanzania and Kibali in the Democratic Republic of Congo (DRC).

Those increases were partially offset by planned lower production at Cortez and Phoenix in Nevada. Pueblo Viejo production in the Dominican Republic was flat as the miner plans to increase throughput and recovery rates in the year’s second half, it said.

Barrick is also contending with the junta in Mali that wants more taxes from the Loulo-Gounkoto operation that produced 683,000 oz. of gold last year. Rights groups say the mine is funding Russia because its Wagner Group mercenaries are backing the military government.

“Barrick has been engaging with the National Directorate of Geol-

Barrick Gold leads our list of Canadian miners by net income at US$1.95 billion and is second according to market value at $44.7 billion. The company produced 1.9 million oz. gold and 83,000 tonnes of copper in this year’s first half. That compares with 1.1 million oz. gold and 102,058 tonnes copper in last year’s second half, according to its annual report.

ogy and Mines to grow our exploration footprint here, securing our ability to deliver real value to Mali,”

CEO Mark Bristow said in July in rare comments since the junta took power a year ago. “We continue to work constructively towards a global resolution of our differences.”

Dealmaker

Wheaton Precious Metals (TSX: WPM) is number three in market

Bristow has a history of working with governments in troubled areas as it develops the US$7-billion Reko Diq project in Pakistan after reopening Porgera, both with deals giving locals about half the profit.

capitalization at $37.9 billion and sixth in net income at US$538 million. Its streaming and royalties model reduces exposure to operational risks for its own shareholders while offering alternative capital raising for companies that may be thwarted by stock market valuations.

From August last year, the company notched up eight deals valued at more than $1 billion in potential payments, according to president and CEO Randy Smallwood. He’s targeting 850,000 gold-equivalent oz. of annual production.

Nutrien (TSX: NTR; NYSE: NTR), the world’s largest potash

Barrick Gold’s Hemlo mine in Ontario. BARRICK GOLD

Barrick Gold’s North Mara mine in Tanzania. BARRICK GOLD

producer, clocks in at number four on both lists, with a market value of $34.5 billion and net income last year of US$1.29 billion. The company said in July it’s reviewing strategic options for its half ownership of Argentine fertilizer company Profertil and said it’s no longer pursuing the US$2-billion Geismar

clean ammonia project in Louisiana.

Teck Resources (TSX: TECK.B), is sixth on our list of market values at $32.6 billion after it sold three-quarters of its Elk Valley coal assets to Glencore (LSE; GLEN) and the rest to Nippon Steel of Japan and POSCO of South Korea. Formerly Canada’s largest diversified miner, the company is now focused on copper.

Future growth

“Completion of this transaction refocuses Teck as a Canadian-based critical minerals champion,” she

Canada Top 10 on P38 >

Teck doesn’t make our top 13 in net profit for last year, but BMO Capital Markets is upbeat about the company’s future. Going forward, the company will be a cleaner investment story as a simplified copper investment vehicle, mining analyst Jackie Przybylowski wrote in a July 15 note.

Wheaton Precious Metals is number three in market capitalization at $37.9 billion and sixth in net income at US$538 million. From August last year, the streaming and royalties company notched up eight deals valued at more than $1 billion in potential payments, according to president and CEO Randy Smallwood. He’s targeting 850,000 goldequivalent oz. of annual production.

We are focused on growing our gold reserves and production in mining-friendly jurisdictions that offer rich geological potential and where we have built a competitive advantage. We add value through our exploration and mine-building expertise, and we are well positioned to continue building on our existing asset s and pipeline of high-qualit y projects.

> Canada Top 10 from P37

said. “The proceeds from the coal sale will fund future growth — either from Teck’s existing portfolio of copper growth options or through acquisition of new assets.”

Cameco (TSX: CCO; NYSE: CCJ) ranked seventh with $22.7 billion in market value and 10th in net income with US$263 million

as it rode a uranium price surge that peaked in January at US$106 per lb., the highest in 17 years. Lower-than-expected sales hurt first-quarter results, but the company said it expects metal revenue to rebound and its 49%-owned Westinghouse nuclear plant services division to have a stronger second half.

Ivanhoe Mines (TSX: IVN;

US-OTC: IVPAF) in the DRC in July restarted the century-old Kipushi mine which aims to be the world’s fourth-largest zinc producer. The company founded by co-chair Robert Friedland is eighth on the market cap list at $24.8 billion, and ninth in net income at US$303 million.

Also in Congo, the Kamoa-Kakula complex, which holds the

world’s fourth-largest copper resource, produced 186,925 tonnes of the wiring and plumbing metal in this year’s first half. It’s ramping up its stage three concentrator capacity this quarter to more than 600,000 tonnes a year. Ivanhoe owns 39.5% of Kamoa-Kakula, which aims to produce 440,000 to 490,000 tonnes of copper in concentrate this year.

The company benefits from United States funding of a rail line across Angola to the Atlantic from the Zambia-DRC copper belt. The company, metals trader Trafigura and Angola are considering a 2,000-megawatt high-voltage line from northern Angola hydro-electric plants to the copper region. TNM

Nutrien’s Allan potash mine in Saskatchewan. NUTRIEN

Lithium Americas (Argentina) holds 44.8% of the Cauchari-Olaroz brine operation. LITHIUM AMERICAS ARGENTINA

Teck Highland Valley Copper BC. TECK RESOURCES

At Teck Resources’ QB2 copper mine in Chile. TECK RESOURCES

TOP 10 US MINERS

Freeport-McMoRan, Southern Copper lead US miners in size, profits

BY HENRY LAZENBY

Freeport-McMoRan’s copper-gold Grasberg

Freeport-McMoRan (NYSE: FCX) and Southern Copper (NYSE: SCCO) top the list of U.S. mining companies by market capitalization and net income as two titans of the copper sector.

Freeport-McMoRan is the leading U.S. miner by net income, posting US$3.7 billion for 2023 in its results released in January. The company attributed its success to high copper prices and efficient cost management.

Former CEO and current chair, Richard Adkerson, said at the time the company’s commitment to strong operational performance and returning value to shareholders underpinned the performance.

The company is also second in market capitalization, valued at US$66 billion as of mid-July. On July 2, the copper and gold miner announced the June start of commissioning at the 2-million-tonne-

Southern Copper leads the market cap rankings with a valuation of US$81.2 billion. It holds the largest copper reserves of any public company. At the end of last year, its reserves, based on a copper price of US$3.30 per lb., amounted to 97 billion lb. of metal.

per-year Manyar smelter in Gresik, Indonesia, with full capacity expected by year-end.

The company has guided for 4.2 million lb. of copper and 2 million oz. of gold sales this year.

Southern Copper ranks second in net income with US$2.4 billion in 2023. The company’s extensive operations in Peru and Mexico and high copper prices have significantly bolstered its finances.

Southern Copper leads the market cap rankings with a valuation of US$81.2 billion. It holds the largest copper reserves of any public company. At the end of last year, its reserves, based on a copper price of US$3.30 per lb., amounted to 97 billion lb. of metal.

Southern Copper’s 2023 revenue was driven by increased production levels, as well as strong copper prices. In 2023, the company produced about 1 million tonnes of the red metal.

According to Southern Copper’s latest projections, it will produce about 1.1 million tonnes of copper this year, driven by expansion projects at the Buenavista mine in Mexico and the Tia Maria project in Peru.

Other metals

Albemarle (NYSE: ALB), the largest U.S.-based lithium producer with its flagship Silver Peak brine operation in Nevada, in 2023 reported a net income of almost US$1.6 billion. The growing demand for lithium-ion batteries in electric vehicles and renewable energy storage drove the company’s strong performance, even with weaker lithium prices.

The company comes fourth in market capitalization, with US$11 billion.

Albemarle’s next significant catalyst involves completing the Meishan lithium conversion facility in China and the Kemerton conversion facility in Australia. It also aims to implement strategic cost-cutting measures such as reducing capital and administrative expenses to give it more financial flexibility to capitalize on future growth opportunities in the volatile lithium market.

Vertically integrated iron ore producer Cleveland-Cliffs (NYSE: CLF) in 2023 reported a net income of US$450 million (fifth place), continuing to strengthen its position as a leading supplier in the North American steel industry. It has a market cap of US$7.4 billion

mine that it operates in a joint venture with the Indonesian government, in Central Papua, Indonesia. FREEPORT-MCMORAN

Freeport-McMoRan’s El Abra copper mine in Chile. FREEPORT-MCMORAN

MP Materials, focusing on rare earth elements from the mountain pass mine in california, achieved a net income of US$24 million in 2023.

The company’s flagship asset is the only major rare earth mining and processing facility focusing on neodymiumpraseodymium in the western hemisphere, giving it a strategic advantage in the market.

> US Top 10 from P39 (sixth position) as of mid-July.

Cliffs, founded in 1847, is North America’s largest flat-rolled steel producer. It operates iron ore mines in Michigan and Minnesota and serves diverse markets, including automotive and infrastructure.

Arcadium Lithium (ASX: LTM) was formed by the merger of Livent and Allkem completed in early 2024. Livent reported a net income of US$330 million in 2023. Postmerger as of mid-July, Arcadium has a market cap of US$3.9 billion (seventh).

U.S.-based Livent brought its brine production expertise in Argentina, and lithium refineries in the U.S. and China into the combined company, while Australia-based Allkem brought its Sal de Vida mine in Argentina, hard rock production in Australia and a chemical conversion facility in Japan.

Arcadium expects to start commercial production from an expansion of its Salar del Hombre Muerto brine operation in Argentina in September. The company plans to achieve a production capacity of 170,000 tonnes of lithium carbonate equivalent (LCE) by 2026 through expansions in Argentina and Canada. It forecasts production of 50,000 to 54,000 tonnes LCE this year.

With key assets on Mount Milligan, Andacollo, and Pueblo Viejo, Royal Gold (NASDAQ:

RGLD) reported record revenue of US$239.4 million in 2023, marking its role as a key player in the precious metals streaming and royalty sector. The company’s diversified portfolio of high-quality global assets has contributed to its strong financial performance.

Royal Gold’s market cap of US$9.1 billion, fifth among the U.S. miners, shows the company’s streaming and royalty model provides stable and predictable cash flows, appealing to long-term investors.

MP Materials (NYSE: MP), focusing on rare earth elements from the Mountain Pass mine in California, achieved a net income of US$24 million in 2023. The com-

pany’s flagship asset is the only major rare earth mining and processing facility focusing on neodymium-praseodymium in the Western Hemisphere, giving it a strategic advantage in the market.

MP Materials has a market capitalization of $2.4 billion (tenth), reflecting its importance in the supply chain for high-tech and green energy products.

Looking for profit

The following three companies also deserve a mention as they feature in the top 10 by market cap but reported losses in 2023: Newmont (NYSE: NEM), Hecla Mining (NYSE: HL), and Coeur Mining (NYSE: CDE).

With its market cap of US$54.8 billion (ranked third), gold miner Newmont (TSX: NGT; NYSE: NEM) reported a net loss of US$2.5 billion in 2023, driven by US$1.9 billion in impairment charges, US$1.5 billion in reclamation charges, and US$464 million in transaction and integration costs related to its acquisition last year of Newcrest Mining. Excluding these significant, but one-time charges, it reported an adjusted net income of US$464 million.

Hecla stands out with a market capitalization of US$3.8 billion (eighth) despite not making the net income list for 2023. The company, primarily focused on silver and gold production, holds key

assets such as the Greens Creek and Lucky Friday mines in the U.S. — among the world’s largest and highest-grade silver mines.

With its market cap at US$2.5 billion (ninth), Coeur Mining reported a net loss for 2023 due to

operational challenges and development investments.

It retains significant growth potential through its Rochester mine expansion in Nevada and ongoing efficiency improvements across its asset base. TNM

Southern Copper’s Tia Maria project in Peru’s Arequipa region. SOUTHERN COPPER

represent a 25.8% premium to the junior’s closing share price before the deal was announced. And it will give Fission shareholders immediate access to cash flow from Langer Heinrich while PLS moves through permitting and construction with first production anticipated in 2029.

Fission expects to receive provincial environmental approval this fall, but will still need to work through the Canadian Nuclear Safety Commission licensing process. Purdy expects Paladin’s ability to deliver the $1.2-billion project will be a key selling point when Fission shareholders vote on the deal in late August.

“We will have significant cash flows out of Langer Heinrich over the forthcoming years as well as being a larger company with deep relationships with debt providers,” he said. “We’ve got the largest customers in the world supporting us at the Langer Heinrich mine. So we have the firepower and the optionality to comfortably fund this project when it’s ready.”

The PLS mine is expected to produce 9.1 million lb. U3O8 per year over a 10-year life.

The deal will require support from two-thirds of Fission shareholders. They’ll hold just under one-quarter of the combined company’s shares, which will be re-listed on the TSX.

Fission CEO Ross McElroy, who shared The Northern Miner’s Mining Person of the Year award in

> Ramp Metals from P20

targets,” Smith said. “Everything was just kind of fitting the model and we pretty much just decided to drill it straight off magnetic and electro-magnetic results.”

The Canadian junior sees an opportunity since most prospectors in northern Saskatchewan are focused on uranium and the world-class Athabasca basin for the nuclear fuel, but not other metals.

“Saskatchewan is very underexplored,” the exploration chief said. “Everybody just seems to have blinders on for uranium in the basin. So, we always saw that as a huge opportunity for us to build a land package, or pretty much any-

> Solaris from P10 tin in June.

“The Canadian federal government’s apparent refusal to permit a minority investment into Solaris appears to close the door on these investments, even where none of the operating assets are in Canada,” McMillan partners Joshua Krane, Michael Taylor and Sasa Jarvis wrote.

Moreover, McMillan says miners should anticipate national security review periods of seven to nine months — longer than the 200-day maximum outlined in the ICA.

“Faced with this regulatory environment, Canadian incorporated mining companies with global, non-Canadian projects need to consider whether maintaining their status as Canadian companies is feasible in view of the long-term financing prospects for their projects.”

Until 2009, when Canada adopted a national security regime, the ICA only applied to takeovers of big Canadian businesses, the McMillan lawyers said. Amendments passed earlier this year gave the government more power to limit foreign investment.

2013 for the PLS discovery, will continue to shepherd the project as leader of Paladin’s Canadian operations.

“It isn’t us selling the company. It’s us combining the companies together and that keeps us heavily involved,” he said.

“We’re backing Ross and his team to deliver this project,” Purdy added. “They’ve done exceptional feasibility work of the highest quality and we look forward to moving the project forward to production

thing we wanted, because nobody was out there looking for anything else.”

Strange hill

Rottenstone was named by local First Nations for the appearance of the hill where the mine was dug.

It produced 26,057 tonnes with an average grade of 3.28% nickel, 1.83% copper and 9.63 grams per tonne of palladium, platinum and gold from resources estimated to range from 45,000 tons (40,800 tonnes) to 60,000 tons, Fathom Nickel says.

“To get those grades, and in the quantity that they did get them, it really speaks to a much larger regional system,” Smith said. “If they can trace back maybe a long

National security

Companies looking to tap foreign direct investment without fear of a drawn-out national security review or potential rejection can consider picking up and moving, the firm said.

Redomiciling a company could shelter it from the ICA, but it is a drastic step, as outlined by McMillan.

“To sever the application of the ICA, Canadian miners need to take steps to ensure they do not have an entity in Canada that has a place of business, employees or assets in Canada.”

The move has tax implications that companies will need to mull.

Fasken’s Toth says Bermuda is one jurisdiction clients are considering.

His advice to the federal government?

“Don’t kill every company touched by China at an early stage. Development companies don’t pose a risk.” Toth said, suggesting the government could regulate where production goes for producing companies instead.

“There are better ways to deal with it than the sledgehammer of national security.” TNM

with Ross leading the process.”

The “world class” PLS project, with a reserve grade of 1.41% U3O8, is expected to be among the lowest cost uranium producers globally with operating costs of US$13.02 per lb. U3O8. That compares with Langer Heinrich’s mid-range costs of around US$28 per lb. expected once ramped up next year. The larger-tonnage open pit mine has a 17-year life and a head grade of around 0.08% or 800 parts per million U3O8

structure or find out where the feeder zones are for this thing, then you really could be on to something.”

Ramp’s first assay, for the Ranger hole, appeared deceiving because the cores resembled granite kitchens, but closer inspection showed zones with more foliation or strain, Smith said.

“We joked around when we first drilled it was countertop-looking rock for 170 metres — it’s not where you would expect to find PGMs or even gold for that matter,” he said. “The mineralization appears to be very, very subtle. It’s not super obvious. If you’re looking at this core, it’s easily missed.” TNM

Under pressure

Strong uranium demand coupled with a tight market pushed uranium spot prices to 17-year highs over US$100 per lb. U3O8 earlier this year. They’re now at under US$85 per lb. — still up dramatically from around the US$30 mark in mid-2021. World Nuclear Association figures released last year projected demand will rise 28% by 2030, then 51% over the following decade.

Customers for nuclear fuel also face new geopolitical and practical obstacles in sourcing supply as the market has been split along Russian-friendly jurisdictions on one hand and Western-friendly jurisdictions on the other.

“The complexity of contracting and receiving pounds in the Western market is getting more complex and harder,” Purdy said.

Factors like the United States ban on Russian uranium and Niger’s military government suddenly revoking Orano’s permits for its Imouraren mine in June, have disrupted European supply. Producers in Kazakhstan, which in July announced increases in its mining tax on uranium starting next year, have warned shortages in sulphuric acid could mean lower production for the next two years.

“The uranium market is very tight at the moment. What that means is every small change in the status of supply globally has sig-

its Vision 2030 plan.

community.”

It’s a concern shared by Dean McPherson, head of global mining at the TMX Group. While McPherson says he hasn’t seen an effect yet on financings or new listings from Canada’s tightened restrictions on foreign capital, the impact could come a couple of years down the line.

“That’s the fear,” he says, noting that Canada’s mining sector is global. Over half of the projects held by Canadian-listed companies are located outside of the country.

“I can tell you that this is a conversation that is brought up at the very start of every conversation I have now in Latin America, in Africa, in Australia. Because people are concerned and as a result, people will seek ways to protect themselves.”

While the federal government has been targeting Chinese capital in hopes of chipping away at its dominance in critical mining, metals and refining, the industry is concerned about other large pools of capital also being cut off — like Saudi Arabia, which has recently been investing in mining as part of

nificant relevance to the market,” Purdy said. He expects the market to remain tight for “years to come.”

Critical question

While the Fission deal will have to go through an Investment Canada Act review at a time when the federal government has been tightening up rules about foreign acquisitions of critical minerals projects and companies, Purdy doesn’t expect any snags.

“We’re very comfortable with the process here in Canada,” Purdy said, adding it’s similar to Australia’s. He noted that meetings with the federal government in mid-July went well.

The deal has already been approved under the Canadian Competition Act.

Purdy said that government discussions have focused more on ownership of projects than who will buy the end product. The federal government has targeted Chinese investment in Canadian critical minerals companies, but the country is a large and growing customer for nuclear fuel. Paladin has offtake deals with customers in China as well as Europe and the U.S., and a subsidiary of China National Nuclear Corp. holds a 25% interest in Langer Heinrich.

A selling point for the Paladin-Fission deal for Ottawa is that it will dilute Chinese ownership in the junior. CGN Mining, which is controlled by Chinese state-owned enterprise (SOE) China General Nuclear Power Corp., currently holds a 12% stake and a seat on the board.

“Under the mechanics of this acquisition by Paladin Energy, the ownership of the SOE is diluted to a minimal amount and the board seat will fall away,” Purdy said. CGN’s stake has already been diluted from 19.99% in 2016. It will still have an offtake for uranium production from the mine, but that will also be diluted as it includes thresholds for equity ownership.

McElroy says CGN has always been supportive of the project and management, and the merger will bring a mine at PLS closer to being realized.

“I think what’s important to them is to see that the project will get it built,” McElroy says.

“China has an insatiable appetite for nuclear fuel, so from that perspective, this certainly derisks the project.” TNM

“The risk is that in the future this could extend to other jurisdictions,” he said.

Before you go...

For juniors considering redomiciling, there are a few things they should know.

Redomiciling to avoid the ICA isn’t practical for established companies with operations and a significant workforce in Canada.

Companies would be subject to the ICA if they have full-time or part-time employees in Canada, including management, even if they move to another jurisdiction.

That could be a deal breaker for some executives who don’t want to uproot their lives or their families.

Working with Canadian-based consultants and contract employees who don’t work exclusively for the firm could be a workaround.

“Companies that are housed in Canada, run by Canadians, that have Canadian employees and operations in Canada, those are going to be more intertwined or interwoven into Canada, so it’s going to be a lot harder to fully move outside of the jurisdiction,” McMillan’s Jarvis said.

For publicly listed companies, redomiciling will also require shareholder approval.

In some cases where a stock has had a big runup, redomiciling could trigger capital gains for shareholders that are taxable, Fasken’s Turner said.

“A lot of the critical minerals stocks have been beaten up over the last couple of years, so that may actually make it easier for some of these companies to move,” Turner said.

There are tax implications for companies, too. In Falcon Energy’s case, for example, the UAE has double taxation and bilateral investment treaties with Guinea, which hosts its Lola graphite project.

Falcon’s Bos advises companies will need a good law firm that has experience in both jurisdictions.

He also notes that some jurisdictions are more compatible than others.

“If we were to move to France, it’s a different legal system, legal framework that would make regulation there while maintaining a TSX listing much more challenging,” he said. “This was a relatively smooth process because both legal systems are compatible.” TNM

> SRG Mining from P10

Paladin Energy CEO Ian Purdy. ALISHA HIYATE Fission Uranium CEO Ross McElroy. ALISHA HIYATE

projectupdates

Founders hits new high on Antino results

GOLD | First resource slated for 2025

BY MINING.COM STAFF

Shares of Founders Metals (TSXV: FDR; US-OTC: FDMIF) surged to a record intra-day high on July 22 after the company announced promising assay results from its 2024 drill program at its flagship Antino gold project in southeast Suriname.

The new results are highlighted by an interval of 6 metres grading 5.31 grams gold per tonne, including 10 metres of 12.05 grams and 4 metres of 29.36 grams, Founders said in a release. A separate hole also returned 28 metres grading 3.35 grams, 7 metres of 13.52 grams and 6 metres of 6.89 grams. Founders’ stock reached as high as $2.45 on the news. At press time its shares were at a 52-week high

> YMP from P6

and ability to connect students with real-world mining opportunities, Stewart noted.

The YMP Scholarship Fund has grown to nearly $250,000 from just $12,000 in its first year, and up from $200,000 last year. In the beginning, it was supported by a few companies and personal contributions from industry leaders.

This year’s YMP Scholarship application process is already open, with a closing date set for Aug. 31. Applications will be reviewed by volunteers who ensure the scholarships are awarded to the most deserving candidates.

About 3,000 students applied for the 45 scholarships offered last year.

of $2.85, giving it a market capitalization is $200 million. The stock traded as low as 31¢ a year ago.

The two holes have expanded the previously identified gold mineralization 150 metres to the east of the main Froyo shear, the company said. This area has been known for near-surface intervals of extensive, high-grade gold mineralization including historical grab samples of up to 28.5 grams gold, it said.

Founders Metals CEO Colin Padget said these results confirm the multiple, robust gold-bearing structures parallel to the main Froyo shear, and continue to demonstrate the potential for growth. Drilling results from late June also reported intercepts that pointed to a new gold-bearing shear farther east of Froyo.

Competing for talent

The talent gap is the mining industry’s “number one concern,” Stewart says, pointing out that addressing this issue is critical for the aging industry’s future. Mining faces competition for talent from other sectors like technology that are often more appealing to youth. Initiatives like the YMP Scholarship Fund help connect young people with an industry that badly needs them, he said, offering not just financial support, but learning and mentorship opportunities with companies.

Many of the scholarships target students in mining programs, while others are available specifically to women, Indigenous students, new Canadians or residents of a region or province. Applicants are selected

First resource Founders says it’s planning to release an initial resource for the Antino project next year, having only entered the project in late 2022. It started drilling last year.

The 2024 drilling campaign, which is fully funded for up to 30,000 metres, began in January with the objective of expansion and resource definition within the Froyo gold zone. In late 2023, the company had reported a gold interval of 10 metres grading 24.61 grams in this area.

Founders is the project operator and is eligible to earn up to a 75% interest for a combined payment of roughly US$3.2 million and exploration spending of up to US$26 million, as well as completing a bankable feasibility study. TNM

based on a combination of academic achievement, extracurricular activities, and submissions such as essays demonstrating innovative ideas and a commitment to the mining industry.

Applicants who don’t win scholarships are automatically enrolled in a lottery sponsored by YMP Toronto, Sprott and Resource Talks, for six $500 prizes.

The YMP Scholarship Fund, a registered Canadian charity offering tax receipts to donors, is always open to new sponsors both for this year’s program and future years. Companies and individuals interested in sponsoring a scholarship are encouraged to email scholarships@youngminingprofessionals. com. TNM

Gold miners back juniors Brixton, First Nordic

EXPLORATION | BC, Finland projects attract funds

Mid-tier producer Eldorado Gold (TSX: ELD) has signed an option deal for Brixton Metals’ (TSXV: BBB; USOTC: BBBXF) Atlin Goldfields project that comes with $6.5 million in initial spending and payments. In Finland, Agnico Eagle Mines (TSX: AEM; NYSE: AEM), Canada’s largest miner by market value, is investing $8.2 million to advance First Nordic Metals’ (TSXV: FNM) Oijärvi gold project.

In July, Eldorado signed a deal with Brixton that will see it spend $5.4 million on exploration at Atlin Goldfields in B.C.’s far northwest over five years. Eldorado is also to make staged payments totalling $1.1 million to Brixton.

Brixton is focused on locating the hard rock source of placer gold within the Atlin mining camp, near the Yukon and Alaska borders. The area has been producing gold for 125 years and has the province’s second-largest placer gold output.

Eldorado can buy the project at the end of the option period for $7 million, have of which Brixton can elect to receive in shares. Brixton would be granted a 1% net smelter return royalty, half of which Eldorado could buy back.

During the option period, Brixton will serve as the project operator with Eldorado approving funding and work programs.

Located 9 km east of the town of Atlin, the project comprises a 579-sq.-km claim group that includes Spruce Creek, in the Atlin gold camp, where B.C.’s largest gold nugget weighing 85 oz. was discovered, Brixton said.

To date, its team has completed more than 39,500 metres of drilling across the property. Drilling in 2023 returned 35 metres of 0.77 gram gold including 19 metres of

1.34 grams gold and 0.45 metre of 38.10 grams gold at the Yellowjacket target. In 2019, the company drilled 8.53 grams gold over 2 metres at the LD showing.

Brixton Metals shares traded for 10¢ apiece at press time, valuing the company at $46.3 million.

Agnico ups First Nordic stake

Agnico’s financing upped its stake in First Nordic to 13.25% from 0.75%. It bought about 28 million common shares at 29.25¢ apiece.

First Nordic is finalizing its roughly $6.6-million acquisition of Oijärvi, which it announced in December.

The project includes the Kylmäkangas gold-silver underground deposit with an indicated resource of 1 million tonnes grading 4.6 grams gold-equivalent per tonne for 159,000 oz. of gold-equivalent and 1.6 million inferred tonnes at 2.9 grams gold for 152,000 oz. of gold equivalent, according to a 2022 report.

“Oijärvi has all the key attributes First Nordic looks for in a high-quality project — high grades, significant growth potential and a great location,” president and CEO Taj Singh said in a release.

Agnico and First Nordic are to establish an investor rights agreement granting Agnico the option to participate in future equity financings and potentially nominate board members. The junior, which changed its name in March from Barsele Minerals, bought Oijärvi from Agnico in 2021.

First Nordic’s main asset, the Barsele gold project in Sweden, operates as a joint venture with Agnico as the Canadian major expands its European portfolio. Shares in First Nordic traded for 34¢ apiece before press time, valuing the company at $65.2 million. TNM

Founders Metals’ Antino gold project in Suriname. FOUNDERS METALS

BY NORTHERN MINER GROUP STAFF

At Brixton Metals’ Atlin Goldfields project in B.C. BRIXTON METALS

CORP. RICK RULE Founder RULE INVESTMENT MEDIA LONDON, UK | DEC 1-2, 2024

ROSS BEATY Chairman EQUINOX

MICHAEL STEINMANN DIRECTOR, PRESIDENT & CHIEF EXECUTIVE OFFICER PAN AMERICA SILVER

ROBERT MCEWEN CHAIRMAN AND CHIEF OWNER MCEWEN MINING