The Northern Miner September 2024 Vol 110 Issue 9

BY BLAIR MCBRIDE

VResources preps for 2027 production at

PwC fires Victoria Gold CEO days after taking control

ictoria Gold (TSXV: VGCX)

CEO John McConnell lost his job on Aug. 19, the third event over five days in mid-August that seemed to seal the company’s fate after it was put into receivership and its board resigned.

PricewaterhouseCoopers, which was made Victoria’s receiver by an Ontario court order, fired McConnell as it moved to organize a cleanup with the Yukon government of the June 24 landslide that triggered Victoria’s demise. Whitehorse said the mine could potentially restart, and the company might have been part of that process.

Victoria Gold declined to comment to The Northern Miner, referring questions to PwC. The accounting firm hadn’t replied to an email by press time and McConnell didn’t respond to a phone message.

The financially crippling heap leach pad accident shut operations while the company struggled to pay down some $233 million in debt. Injuries were limited in the accident. But it unleashed 4 million tonnes of material, with half leaving the pad’s containment and contaminating a local stream with cyanide-infused ore. By mid-August, Whitehorse said it didn’t have faith in Victoria to clean the site.

“The government of Yukon has lost confidence in the management team of Victoria Gold Corporation to take the human health and safety and environmental consequences of the June 24 heap leach facility failure seriously,” said Tracy-Anne McPhee, minister of justice and Yukon’s attorney general. “Or to respond with the urgency the situation demands.”

Contamination

Between 280,000 and 300,000 cubic metres of cyanide-containing solution left the containment, according to government estimates. Groundwater flowing from Eagle was found to be highly contaminated with cyanide, though much of the water was being contained at the site. The regulated drinking water supply isn’t at risk, Yukon government officials reported.

However, a discharge of water from a treatment plant at Eagle from July 31 to Aug. 2 led to the discovery of 68 dead fish near the mine in Haggart Creek, officials said.

Victoria’s share price plum-

VICTORIA GOLD MELTDOWN

“Our intention was absolutely not to put Victoria out of business. The decision by the board of Victoria Gold to resign is their decision.”

Financing needs

McConnell told the CBC in July — in his first interview with media since the accident – that the company was sound financially for at least four to six months but would likely need financing after that.

The week before his dismissal, McConnell said he knew his time was short even though he pledged to help with the accident cleanup. He apologized to employees, Yukoners and the Na-Cho Nyäk Dun First Nation (FNNND).

When the government in July stepped in with its own contractors to build a protective berm under the unstable slope at Eagle, it was becoming clear Victoria wasn’t willingly following all ministerial directives. The company said at the time it didn’t agree with the plan for safety and operational issues.

permanently, or for the company’s board to resign, despite moving to put it into receivership.

“We were very careful to make sure there was a process that would allow a path forward for Victoria Gold and for mining to continue on that site,” McPhee said at an Aug. 16 briefing. “(Our intention was) absolutely not to put it out of business. The decision by the board of Victoria Gold to resign is their decision. They were not directed to resign by the receiver or by the Yukon government.”

PwC, which was appointed receiver of the Minto mine in central Yukon last September after it failed, is being advanced $50 million for the Eagle cleanup. It is to be recovered from Victoria’s assets as a priority over other creditors, according to court documents.

meted more than 90% before its shares were halted in mid-August. They traded for 48¢ apiece at the end. Eagle was the company’s sole asset.

McConnell said he was proud of what Victoria Gold had built over the past 15 years, according to the CBC, which cited a letter from the CEO to PwC.

In March, McConnell accepted this year’s Viola R. MacMillan Award for innovative financing at the Prospectors and Developers Association of Canada. He’d used a combination of private equity and offtake streams when backers for the low-grade mine in the far north were hard to find.

Victoria acquired the site that would become Eagle in 2009 when it took over StrataGold. Production started at Eagle in 2019.

“The significant health and safety concerns because of stability risks with the heap remain,” Lauren Haney, deputy minister for Yukon’s Department of Energy, Mines and Resources (EMR), said then. “It is a result of the company not complying with those directions that we are stepping in to undertake construction of the berm ourselves.”

Then in August the Yukon sought to place Victoria in receivership. A judge denied Victoria’s request to prepare an application under the Companies’ Creditors Arrangement Act. The CEO told the CBC on Aug. 15 that Victoria’s board had resigned and described the company as finished.

Future role

The government said it didn’t intend to shutter the Eagle mine

Full cleanup is expected to cost $100-$150 million, the Yukon says. About $40-$50 million worth of work is needed in the next 90 days. The key immediate tasks include improving water storage capacity at Eagle, assuring geotechnical stability, drilling five groundwater interception wells and installing water treatment systems, Haney said in a briefing.

Building the groundwater wells is particularly important because it will help the government to better assess the full extent of contamination, Haney said. She couldn’t say how long it could take until the site is restored to its pre-June 24 state.

Water samples collected between Aug. 3 and 8 showed cyanide levels in Haggart Creek, which flows out of the Eagle site, had returned to levels similar to those observed before the

discharge. The levels were around the long-term aquatic life guideline of 0.005 mg per litre for cyanide. Officials have emphasized the scale of the cleanup effort at Eagle

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Sandvik’s versatile jumbo bolter improves mining operations at KGHM’s Victoria project

BY NORTHERN MINER STAFF

In June, DMC Mining Services started trialing Sandvik’s DD422i two-boom dual controls jumbo bolter at KGHM’s Victoria nickelcopper project in Ontario, 35 km west of Sudbury.

The multi-purpose dieselpowered jumbo with split feeds allows a single operator to bolt and bore with one machine, which eliminates the traditional need for two machines—a boringonly jumbo and a platform or mechanized bolter.

“The way it really shines is the versatility of it — being able to bolt and drill and perform other ground support tasks,” Jory Dion, a drill trainer at Sandvik Mining and Rock Solutions said. “It can do a lot of jobs that typically in the past have required multiple machines.”

Bolters and drills need substantial spare parts inventory and an additional crew for maintenance, Dion says.

“When each machine requires its own parts and operators, focusing on just one primary machine makes a significant difference.”

Sandvik reports that rationalizing fleet size, parts inventory and maintenance has been a significant reason why many mining companies and contractors are adopting the DD422i-Dual Controls to run their bolting-boring cycle. Utilizing one boom for drilling and the other for bolt installation is also expected to decrease overall cycle times.

Doing more with less Contractors using the DD422i dual control jumbos in Canada have been achieving advances of 10 metres per day or 300 metres each month—a new record in North America, Sandvik says.

Another advantage is that having a single machine streamlines training and troubleshooting by eliminating the need to switch between different contractors and equipment.

Some of the DD422i’s intelligent features include automated ‘recipes’ for the installation of rebar, split sets and mechanical dynamic and mechanical dynamic extra (MD/MDX) rock bolts.

Rebar is an epoxy chemical bolt, and the resin must be mixed and reach a certain temperature before it hardens, so having a ‘rebar recipe’ will control the process and spin the rebar in to mix the resin to set the bolt.

Split sets are friction bolts, and the jumbos can hammer the split set into a smaller diameter hole.

“Older style machines can do this as well but it’s a lot easier to damage the material in the installation process,” Dion says.

In addition, the DD422i can install MD bolts more consistently. The automated recipes will turn the water on, hammer the MD bolt in, and then spin it to its torque specifications in the recipe.

“With a manual machine it would be harder to control what torque the bolt would be tightened to,” Dion explains. “They might over-tighten it and damage it, or not tighten it enough.”

Sandvik designed the MD and MDX bolts, optimizing the design to suit their installation using jumbos.

“The intelligent features help new operators avoid damaging consumables,” Dion says. “They

“The way it really shines is the versatility of it—being able to bolt and drill and perform other ground support tasks. It can do a lot of jobs that typically in the past have required multiple machines.”

— JORY DION

DRILL

SOLUTIONS

help preserve drill steel, rebar, and split sets. I’m receiving positive feedback from our operators. Mining companies and operators often don’t realize the full potential of these machines. We’re still just

scratching the surface of their usefulness.”

Safety first

Most importantly, the jumbo bolters provide significant health and safety benefits. With the enclosed cabin design, operators are protected from high exposure to mining noise, diesel exhaust and rock dust, which improves the working environment for miners.

In addition, Sandvik’s patented boom-feed system allows operators to work further away from unsupported ground.

“In the past, workers used large bars to remove loose rock, a practice that was quite dangerous,” Dion says. “Now, with the bolting jumbo, miners are removed from this hazardous task. Scaling with the bar was a major cause of worker injuries. Furthermore, by distancing operators from the dangerous practice of ground support, the machine protects them from the risk of rock bursts, which are common in deeper mines.”

Canada catching on

The jumbo bolting methodology

has been in use for more than three decades in other parts of the world—particularly in Australia and South Africa. But its use in Canada has been slower to catch on. Now it is picking up speed. More than 30 of the diesel-powered jumbos (and the battery-powered version called DD422iE) are operating at Canadian mines and mining projects this year. KGHM, Vale (NYSE: VALE), B2Gold (TSX: BTO, NYSE-A: BTG), Glencore (LSE: GLEN), Foran Mining (TSX: FOM; US-OTC: FMCXF), Evolution Mining (ASX: EVN), Barrick Gold (TSX: ABX; NYSE: GOLD), Agnico Eagle Mines (TSX: AEM; NYSE: AEM) and Newmont (TSX: NGT; NYSE: NEM) are among the companies either operating the multi-purpose jumbos or using them through contractors, according to Sandvik.

Detailed customer feedback is essential in the development of new equipment and contractors like DMC Mining Services are heavily involved in the trialing of these new methodologies. Sandvik works closely with contractors to collect critical data that is analyzed by its technical team and

is used to optimize performance and address any potential issues.

Data is key

This data is transmitted directly from the machine to the server (depending on underground Wi-Fi capabilities) allowing for real-time (constant) or periodic (when the transceiver passes the logger once a shift) data collection. This same data can be used to predict critical spares and consumables usage (drill bit wear), which ultimately ensures cost and schedule efficiencies for contractors.

DMC Mining Services has been developing a separate data collection system (developed by its own in-house engineering team), which further allows operational data insights, and when combined with Sandvik data, allows for full transparency on cycle timings and potential efficiency improvements. By sharing insights on operational efficiency, user experience, and any technical challenges encountered, Sandvik can work with contractors to ensure their operations are efficient and that equipment technology is improved in future iterations.

Sandvik offers training support with all units to help with the transition to the new controls and methods and DMC workers have found the transition straightforward.

“Continuous improvement is at the core of our culture, driving us to test new technologies,” Michal Jezioro, DMC’s managing director and CEO said. “Embracing autonomy and adopting safer, more cost-effective work methods are crucial to maintaining our competitive edge. We eagerly look forward to seeing how this drill enhances our performance.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Sandvik Mining and Rock Solutions and produced in co-operation with The Northern Miner. Visit: www. rocktechnology.sandvik for more information.

A jumbo bolter working underground. DMC MINING SERVICES

Pre-Work Safety Huddle. DMC MINING SERVICES

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CANADA

opinion

EDITORIAL

Mining-powered rockets vs dockets

BY COLIN McCLELLAND

As we look in the waning days of summer to the United States’ Southwest in this edition, it strikes us that there’s been a staggering number of days that only saw three mines start production in Canada’s southern neighbour.

It’s something like 6,600 days — or 18 years — according to a recent study by S&P Global. The most recent major approval for a new mine now in production is Lundin Mining’s nickel-copper Eagle mine in northern Michigan, which began commercial output in 2013, more than a decade ago.

Northern Star Resources’ Pogo gold mine in Alaska started in 2006 (under a previous operator) and the Ruby Hill gold mine in Nevada started mining a new deposit in 2007 (it’s now a past-producer).

Benefiting from a push for domestic production of critical minerals, construction at Lithium Americas’ Thacker Pass in Nevada is under way, after that project gained approval in 2021 — and a promise of US$2.2 billion in federal funding this year.

Still, the U.S. has the second-longest lead time in the world for developing a new mine from discovery to production: 29 years. Canada isn’t much better than the U.S. at around 27 years. The crown for the dubious honour at 34 years goes to Zambia in Africa’s copper belt, which only recently has been able to unburden itself from US$13 billion in debt thanks to partial refinancing led by China.

The Asian giant also figures in pointing out the lack of mine approvals in the West. In mid-August, Beijing imposed export restrictions on antimony, a critical mineral used in semi-conductors and lots of weapons. These followed limits imposed last year on gallium and germanium, also used in computer chips, as China wields resource nationalism as a form of blackmail.

China produces nearly half of the world’s antimony, a quarter comes from Tajikistan, while Russia and Myanmar source smaller amounts. The U.S. doesn’t produce any.

Now Washington is showering record cash on one antimony project in Idaho, which could be developed into one of the world’s largest.

Perpetua Resources’ proposed revamp of the former Stibnite gold and antimony mine is earmarked for US$1.8 billion in debt financing from the Export-Import Bank and US$60 million from the Pentagon. But the project has been caught in the approvals process since 2016 as the company navigates local, state and federal regulations.

An OK from the U.S. Forest Service could arrive this year, but potential legal challenges – like for most mining applications, including Lithium Americas’ project – loom from conservationists and Indigenous groups. Idaho has prioritized expedited permitting for projects that involve critical minerals for national security and the green economy. The Idaho Department of Lands says it’s making permitting faster, like other Western and Southwestern states such as Nevada, Texas, New Mexico, Arizona and Utah.

Texas Mineral Resources is preparing a prefeasibility study for the Round Top rare earths project near El Paso. The deposit has 16 of 17 rare earths like the ones used in electric vehicle motor magnets and is estimated to be worth US$1.6 billion. Rare earths mining can be dirtier than other types and environmentalists fear it will contaminate the groundwater. It’s a dilemma for the Biden administration that might continue under a president-elect Kamala Harris to fund projects for an electric future while trying to stem the pollution to get there. When the world’s largest military depends on the minerals for some 300 of its munitions and politicians want independence from a China flexing more swagger, it would seem clear that more mines need to be built on this continent. The Pentagon in August even reached across the border to invest US$20 million in Electra Battery Materials’ proposed Ontario cobalt refinery, adding to $10 million from Canada.

Judicial roadblocks

Rio Tinto, which is developing the Resolution copper mine in Arizona with minority partner BHP, could end up in the U.S. Supreme Court if an Indigenous group opposing the project has its way. The Apache Stronghold is fighting the project, which could potentially supply a quarter of the country’s needs for the wiring and plumbing metal, on the basis of religious freedom. It contends the land was used for Indigenous ceremonies for centuries.

Its lawyers say the Supreme Court has heard 25 religious freedom cases since 2011 and sided with those arguments 24 times. However, it remains to be seen if the conservative-leaning bench will take on the case. A federal court of appeals has already declined it.

If the mine were ready to start producing now, it would meet that 29-year average of time from discovery to output researched by S&P.

We’ve already noted Canada isn’t much better at approval times. Still, Natural Resources Canada has vowed to work with provinces to eliminate duplication in regulatory approvals.

Another attribute could be Canada’s perhaps over-hyped reputation for friendliness, to a point, at least. S&P says that even with lengthy approval times, mines are much more likely actually to be built in Canada than face a gauntlet of lawyers like in the U.S.

Even if mines south of the border receive all their permits, they face higher litigation risk, S&P says. It found more mentions of lawsuits against U.S. projects than of ones opposing Canadian and Australian properties combined. It could explain why investors backed 81% more exploration budgets in Canada vs the U.S. over the last 15 years, the researchers said.

Mining, with fewer strings attached could be Canada’s calling card as the U.S. can offer cash to developers, but not the certainty they seek.

COMMENTARY

Is the Asian giant falling? Not so fast

BY JAMES COOPER

In mid-August, warning about the “inevitable” demise of China’s economy once again surged. But is the fear warranted?

Cast your mind back to the Evergrande panic from this time last year. It marked the culmination of bearish sentiment in China’s economy. Imminent fears of a liquidity crisis in the country’s real estate market sprouted after the country’s second-largest development company folded under heavy debt.

According to the media, this was set to become China’s “Lehman Brothers moment.” An event akin to the sub-prime crisis that manifested into a global financial recession in 2008. I disagreed and challenged that narrative in a piece at the time.

And as we now know, fears of a broader economic collapse never materialized in 2023. In fact, to most pundits’ surprise, China finished last year with an impressive 5.2% growth in gross domestic product.

But the bears are back!

And once again, Western media is out in force looking to make its king hit on China’s economy, focused on the country’s maligned real estate market.

Over the last month, a big deal has been made over the lack of new housing starts. But this is old news. Statistics show new constructions fell precipitously during the 2022 pandemic lockdowns and have failed to recover since.

The market has likely priced in any calamitous fallout from this event. That includes iron ore miners, steelmakers and Chinese property developers. But again, the media forgets (or doesn’t understand) that markets are forward-looking.

Another key consideration

While Chinese real estate construction remains an important driver of steel demand, it’s not what it used to be. You see, during China’s rapid growth phase in the early 2000s, construction accounted for almost half the country’s steel demand. Today, it’s less than a quarter, or just 24%.

Interestingly, machinery construction is now the single biggest driver of steel demand in China at 30%. Yet, the media remains fixated on the decade-old idea that iron ore demand depends exclusively on Chinese real estate.

The reality couldn’t be any different; demand drivers within China’s steel industry are today far more diverse.

That said, we can’t ignore the carnage happening across the world’s largest iron ore producers. Fortescue in late August had fallen 25% over the previous four weeks or 40% year-to-date. Meanwhile, Vale has shed around 22% this year. Despite real estate’s diminishing role in Chinese steel demand, the stock market is pricing in ongoing risk.

And with Chinese steelmakers announcing output cuts in

August, the situation is starting to bite especially hard for the miners. The iron ore spot price threatens to break decisively below the key psychological level of US$100 per tonne.

More carnage ahead?

Iron ore serves as a critical barometer for the broader resource market. Given the deep selling that’s taken place in August, there’s valid cause for concern.

On the surface, it’s difficult to be optimistic. Australia’s largest mining firms have reacted severely to poor news on China’s economy. Since steelmakers have announced significant cutbacks, it’s easy to accept that iron ore will fall further. But it might not be so simple.

Consider this: China holds a long track record of manipulating commodity prices to its advantage.

As a major buyer and the world’s largest consumer, why not do all you can to limit the price you pay? Given this authoritarian state’s broad reach across Chinese-owned entities, including steelmakers, it can easily collude with them to drive down iron ore prices whenever it is strategic to do so. Curbing steel production could be part of a coordinated plan by authorities and subservient steelmakers to undermine the price of iron ore.

However, once China deems prices sufficiently depressed, I believe it will shift gears and ramp up stockpiling efforts, just as it did throughout the pandemic years — despite minimal demand for steel at the time.

Paradoxically, today’s bearish sentiment in the iron ore market could signal long-term strength as China attempts to decrease prices and secure more supply. But again, that’s not something you’ll read in the mainstream press. Nothing happens by chance in China. From here, you should be observing iron ore imports. Strong imports (in the face of falling steel production) will confirm my suspicions that China is helping drive down iron ore prices and perhaps positioning for stronger future demand.

Again, that seems like a paradox, given all the negative news about China’s economy. Yet, it’s precisely what a forward-looking authoritarian government will seek to achieve.

If I’m right, that limits the downside risk for iron ore miners. Once prices have fallen sufficiently, China will be ready to buy up big. But at what point will we hit that support?

For now, US$100 per tonne remains in play despite prices dipping slightly below recently. That price held during the April lows after initial announcements of steel cuts among China’s major steel firms panicked the market. But if it fails, we could see a sharp fall to around US$85 per tonne, the low from October 2022. I’ll repeat what I said 12 months ago: I don’t believe the iron ore market is about to fall off a cliff, despite Western fears. 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.

A view of Seabridge Gold’s Mitchell deposit below a receding glacier at its KSM project in BC.

See Story on page 12

CREDIT: HENRY LAZENBY

n Teck Coal fined $221,000

Teck Resources’ former coal unit has been fined about $221,000 for nearly 30 cases of environmental breaches in southeast British Columbia over a two-year period.

On Aug. 8, the B.C. Ministry of Environment issued two fines to Teck Coal Ltd. — now operating as Elk Valley Resources and under new owner Glencore — for unauthorized waste disposals at its Elkview operations near Sparwood during 2021 and 2022.

The larger of the two fines, $168,750, was for 27 waste discharges made without the province’s authorization. More than 109,000 litres of waste were released.

However, the ministry found these releases had little to no impact on the environment because they were “limited to the heavily disturbed area in and around the [Elkview operations] pit and coal processing plant.”

The majority of the 29 instances of unauthorized waste discharge were caused by equipment failures, according to the ministry’s investigations. Teck said it made repairs and monitored the sites.

While the second penalty of $52,000 was smaller, it only covered two incidents. The waste got to nearby creeks supporting animal life, the ministry said. One incident exceeded the province’s guidelines for sulphide and selenium, which can cause deformities in fish and health issues for humans, it said.

BY MINING.COM STAFF

n Friedland’s US$96M buy

Canadian mining magnate Robert Friedland recently bought a large piece of real estate in California from famed American TV host Ellen DeGeneres.

The purchase, first reported by The Wall Street Journal, was made off the market for a final sale price of US$96 million. The land was bought by the now-retired DeGeneres two years ago for US$70 million.

The property is located in Carpinteria, near Santa Barbara, a hotbed for celebrity buyers on California’s coast. It spans 40,000 sq. metres of manicured land, resting atop a bluff overlooking the Pacific, and features a 740-sq.-metre home, according to reports.

This is the second time that Friedland bought one of DeGeneres’ high-end estates. In February, the mining billionaire paid US$32 million for a Mediterranean-style property in Montecito known as Pompeiian Court.

The Ivanhoe Mines chairman himself has been busy with his real estate dealings this year. He recently sold another Carpinteria property for nearly US$50 million.

BY MINING.COM STAFF

n Feds invest $16M in crit-min research

Ottawa has earmarked more than $16 million in new funding to support the Saskatchewan Research Council (SRC) in Saskatoon.

The announcement on Aug. 14 by Natural Resources Minister Jonathan Wilkinson includes $15.9 million through PrairiesCan to enable the SRC to acquire bastnaesite (a type of ore containing rare earth elements) from Canadian sources and develop its processing integrated into an SRC facility.

The ore is to be acquired from Vital Metals‘ Nechalacho operations in the Northwest Territories. SRC will also collaborate with a local educational institution to develop and deliver a training program for Indigenous students to operate bastnaesite processing equipment.

An investment of $209,330 from Natural Resources Canada (NRCan) will help SRC create a publicly available database of mineral characteristics and help identify deposits for sensor-based sorting.

The funding builds on earlier support of nearly $13.5 million from PrairiesCan and NRCan for the SRC to establish its processing plant and develop new rare earth mineral processing

technologies.

The funding comes almost two months after NRCan diverted $3 million of stockpiled rare earths mined at Nechalacho from Chinese firm Shenghe Resources to the SRC, as Canada aims to keep its critical minerals out of China’s hands.

BY MINING.COM STAFF

n Strike ends at Escondida

BHP and union leaders in Chile reached a wage agreement in August to end a three-day strike at Escondida, the world’s largest copper mine.

The union, representing about 2,400 workers, started the strike after failing to reach a pay deal.

A central point in the negotiations was the union’s demand for 1% of shareholder dividends from the mine, or about US$35,000 per worker. The company had offered a bonus of US$28,900 before the strike.

Copper for delivery in September fell 1.2% after the settlement, touching US$4.10 per lb. (US$9,020 per tonne) on the Comex market in New York.

Escondida accounts for about 5% of the world’s mined copper. It produces more than 1 million tonnes a year.

Based on data from the state-run Chilean Copper Commission (Cochilco), Escondida made up 23.7% of the country’s copper production in the first half of the year. This is almost the same amount produced by Chile’s Codelco, the world’s largest copper producer, during the same period.

The mine produced 614,400 tonnes of copper in the first six months of 2024, according to Cochilco. Chile’s total production of the red metal during this period amounted to 2.6 million tonnes.

The last significant strike at Escondida was in 2017, lasting 44 days. The stoppage hurt production, drove global copper prices up, and became the longest private-sector mining strike in Chile’s history.

PHOTO

Power Nickel gains Friedland support in Nisk project expansion to copper, platinum

BY NORTHERN MINER STAFF

Power Nickel (TSXV: PNPN; US-OTC: PNPNF) shares have nearly tripled this year as the company transformed its resource-stage Nisk project in Quebec with a polymetallic discovery attracting billionaire mining investor Robert Friedland and mining magnate Rob McEwen.

The company closed a $20-million financing round in June when Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) founder and co-chair Friedland bought more than half of the share offering and McEwen, founder and CEO of McEwen Mining (TSX: MUX; NYSE: MUX), participated for the second time.

In May, the company reported 15.4 metres at 0.44 gram gold per tonne, 22.04 grams silver, 5.06% copper, 13.12 grams palladium, 3.35 grams platinum and 0.015% nickel in hole PN-24055. It was the first of 16 holes at Nisk’s Lion zone which have hit mineralization 15 times, pushing the project beyond just nickel, CEO Terry Lynch said.

“We knocked it out of the park,” Lynch told an August conference call. “This has become a polymetallic project. They’re super rare and they’re super valuable.”

Shares in Power Nickel rose from 20¢ apiece April 1 to 88¢ on June 21 before easing to 58¢ near press time, valuing the company at $109.8 million. Lynch, who says his company has been targeted by short-sellers, said the company plans to thwart the activity by spinning out five early stage properties in British Columbia and Chile to a private company within the next month or so.

Processing plant

The Lion discovery sidelined plans to take on a major investor for about 10% of the project, Lynch said. Industry talks continue and there’s bound to be a partner at some point, but the company is fully funded for now, he said. Power is considering a nickel powder processing plant in Texas with Toronto-based CVMR, Lynch said. Power is planning to issue a feasibility study on it in September.

“The refinery business is highly attractive to us,” he said. “The polymetallic mine development would be a different animal and most likely that would be something we’d be looking to sell.”

Power Nickel began with the 46-sq.-km Nisk project in Quebec’s James Bay region in 2021 with an earn-in agreement with Critical Elements Lithium (CRE: TSXV). Power now holds 80% after filing a resource on the main Nisk nickel-copper deposit last November. Lion is about 5 km northeast of the Nisk deposit.

The site is 8 km east of Nemaska, which has an airport and is about 2.5 hours by plane north of Montreal. The site is accessed by gravel roads to a Hydro Quebec electrical station, then by a 4-km trail. It lies 283 km northwest of Chibougamau and 425 km northeast of Matagami.

Power says the project could be developed as Canada’s first carbon neutral polymetallic mine by using carbon capture and hydroelectric power. Provincial and federal tax breaks cover half of exploration costs.

Polymetallic peers

The company has brought on Steve Beresford, a polymetallic expert and former chief geologist for First Quantum Minerals (TSX: FM) and China-controlled MMG Mining, as a technical advisor and board member. Beresford says Nisk has attributes similar to giant polymetallic deposits such as Anglo American’s (LSE: AAL) Sakatti in Finland and Russianheld Norilsk Nickel’s Norilsk mine in Siberia that’s estimated to hold US$1 trillion of metal.

“By combining nickel, platinum group elements (PGEs) and copper plus gold and silver, we can end up with these really large copper-equivalent grades,” he told the conference call. “So unlike, say, other copper deposit styles like porphyries or sediment-

Advisor Steve

hosted copper, which are relatively low grade, these systems are very high grade, very small footprint.”

Exploration so far appears to have found copper sulphides on top of nickel sulphides in an intrusion system and further work must use geochemical signatures to determine the best area encompassing all the metals, he said.

“It’s like a Goldilocks zone,” the geologist said. “There’s sort of an ultimate threshold of getting the optimum value of all the metals forming these systems. So rather than trading nickel for copper or for PGEs, we can get these systems that have everything.”

This year’s exploration program includes drilling at both Nisk and Lion as well as ground and downhole electromagnetic surveys, Adam Findley, vice-president for exploration at contract explorers GeoVector Management, said on the call. Drilling aims to increase the strike length and depth while

site in 1962. It drilled 28 holes there that decade. Muscoho Explorations, later Golden Goose Resources, drilled more on the project from 1987. It produced a historical resource in 2008 of 2 million measured and indicated tonnes and 783,000 inferred tonnes.

Site history

Nemaska Exploration conducted geophysical and geochemical work before Resources Monarques acquired the property in 2011 and drilled more. Critical Elements Lithium bought the site in 2014, but little work was done. Power Nickel traced the mineralized main Nisk zone over a strike length of more than 900 metres, about 500 metres vertical depth and 0.5 to 32 metres wide. The deposit remains open at depth and along strike to the east and west.

The Nisk main deposit holds 4.9 million indicated tonnes underground grading 0.78% nickel, 0.05% cobalt, 0.42% copper, 0.78 gram palladium per tonne for 38,300 tonnes nickel, 2,400 tonnes cobalt, 20,500 tonnes copper and 123,100 tonnes palladium, according to Power Nickel’s filing in November. Open-pit resources total 519,000 indicated tonnes at 0.63% nickel, 0.04% cobalt, 0.3% copper and 0.56 gram palladium for 3,300 tonnes nickel, 200 tonnes cobalt, 1,600 tonnes copper and 9,400 tonnes palladium.

In the inferred category, Nisk has 1.8 million tonnes in underground resources grading 0.98% nickel, 0.06% cobalt, 0.45% copper and 1.11 grams palladium for 17,500 tonnes nickel, 1,100 tonnes cobalt, 8,100 tonnes copper and 64,000 tonnes palladium.

Sedimentary basin

Nisk is in the Nemiscau subprovince of the Quebec part of the Archean Superior Geological Province that forms the core of North America. The Nemiscau Subprovince is a large sedimentary basin formed almost 2.7 billion years ago.

stepping out from the successes of the previous program, he said.

Results due

Drilling at Lion is to probe whether mineralization extends beyond a current area of 300 metres deep, 250 metres along strike and thickness ranges from 5 to 10 metres, Lynch said. The first results from the summer program may arrive in September.

Four more drill holes reported in June at the Lion target added perspective at depth, the company said. Hole PN-24-059 cut a highlight intercept of 17.3 metres grading 0.66 gram gold, 27.2 grams silver, 3.33% copper, 2.04 grams palladium, 1.49 grams platinum and 0.18% nickel from 185.1 metres depth.

“We had several holes of 10 metres 10% copper-equivalent, and some greater than 20%,” Lynch said. “These are truly epic numbers, never really seen before, especially in the copper PGE coverage, it just doesn’t come like that.”

Inco, now a part of Vale (NYSE: VALE), discovered nickel on the

The Nisk deposit appears to be a classic magmatic nickel sulphide deposit associated with an ultramafic intrusion, the company says. The sulphide mineralization consists primarily of pyrrhotite, chalcopyrite, pentlandite and pyrite.

The addition of Lion brings a high-grade polymetallic system with nickel of better quality than the metal produced abundantly in Indonesia, the company says. The Nisk project offers rare high grades across several minerals, Beresford and Lynch said.

“The big revelation from a business perspective is the transformation from nickel sulphide to polymetallic is really incredible in terms of the value proposition for investors,” Lynch said. “We’re pretty excited with what we’ve found and it certainly is worthy of a lot more exploration and a lot more discovery.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Power Nickel and produced in co-operation with The Northern Miner. Visit: www.powernickel.com for more information.

An aerial view of the Nisk’s summer drilling platform near Nemaska, Que. POWER NICKEL

Above: A “textbook outcrop” of ultramafic cumulates and their relation with polymetallic mineralizations attracts the Power Nickel exploration team. POWER NICKEL

Left:

Beresford, vice-president of exploration Ken Williamson and Adam Findley of GeoVector Management at one of the four summer drilling platforms. POWER NICKEL

BY HENRY LAZENBY

Adecade ago, Stephen Stewart launched Ore Group with a clear strategy: capitalize on distressed assets from the global financial crisis and develop them into high-potential projects. His approach has yielded successes but not without typical mining industry challenges.

Stewart’s strategy hinges on understanding the industry’s ebb and flow. By acquiring assets during market lows and developing them as prices recover, he’s positioned Ore Group — a privately held holding firm of seven public companies — to capitalize on the inevitable upswings.

“This is a cyclical industry, so you have to play the cycle,” he told The Northern Miner in an interview from Toronto where he’s based. “When gold’s down at US$1,000, buy.”

Two of the group’s biggest successes so far are American Eagle Gold (TSX: AE; US-OTC: AMEGF), which is advancing the promising NAK copper discovery in British Columbia, and Awalé Resources (TSXV: ARIC), which has made five new gold discoveries

people

Arizona Sonoran closing in on permit success at Cactus Stephen Stewart’s tactical moves lift Ore Group

BY NORTHERN MINER STAFF

With 11 billion lb. of contained copper in the ground and a recently rescoped preliminary economic assessment (PEA) that demonstrates 94% of the resources can be mined with open-pit methods, Arizona

Sonoran (TSX: ASCU; US-OTC: ASCUF) has de-risked its Cactus brownfield copper project. It further expects it to be one of the top 10 copper operations in the United States before the end of the decade.

The project, situated at the convergence of three major porphyry copper belts in Arizona, 74 km south of Phoenix, will be a low-cost heap leach and solvent extraction/electrowinning operation producing a domestic supply of LME premium-grade copper cathode. Cactus has a mine life of 31 years with average annual production of 78,260 tonnes of copper at an all-in sustaining cost of US$2.00 per lb. copper, according to an updated PEA in August. The life of mine strip ratio is just over 2.9 tonnes of waste to 0.9 tonne of ore.

Annual production over the first 20 years is expected to run to 105,560 tonnes. At a base case copper price of US$3.90 per lb., Cactus offers an after-tax net present value (8%) of over US$2 billion and internal rate of return of 24%.

Initial capex of US$668 million could be paid back in just under five years, with life-of-mine free cash flow of US$7.3 billion and life-of-mine revenue of US$20.8 billion. The project has direct

PROFILE | Mining entrepreneur on a journey from vision to impact

at its pre-resource stage Odienné property in Côte d’Ivoire. American Eagle’s share price is up 74% year-to-date, while Awalé’s is up 285%.

Stewart, chairman of each of the seven Orecap companies, has employed various strategies including acquiring distressed assets and carefully timing the market. For example, QC Copper & Gold (TSXV: OCI; US-OTC: ORFDF), which Stewart spun out of Orecap Invest Corp. (TSX.V: OCI; US-OTC: ORFDF), an Ore Group subsidiary, has seen significant value appreciation.

The company acquired the Opemiska Copper Complex in

Quebec’s Chapais-Chibougamau District in 2018, and turned what was initially an underexplored project into one with considerable potential. The company raised millions in subsequent financing rounds, and the project’s estimated resource has grown to be Canada’s highest-grade open-pittable copper deposit at 87.3 million tonnes grading 0.77% copper for 1.5 billion lb. of metal in the measured and indicated categories.

“We’re convinced that Opemiska could be a mine with 100 million tonnes at 1% copper,” Stewart said. “And it’s going to get bigger.”

Challenges and setbacks

Not every venture has been an unqualified success. American Eagle’s initial exploration in Nevada didn’t yield the results Stewart had hoped for, leading to a pivot towards British Columbia and the NAK copper-gold porphyry property where its drills have been hitting good grades.

NAK shows strong promise, with a 15,000-metre drilling program active till November revealing consistent mineralization across many holes, hinting at a large, continuous mineralized zone. Just last month, the company announced a discov-

JOINT VENTURE ARTICLE

ery of copper-bearing outcrop porphyry in the IP Embayment Zone, a previously undrilled and highly prospective area.

On Aug. 20, the company reported encouraging assay results, including 175 metres of 1 gram gold per tonne within a 276-metre envelope grading 0.83 gram gold, expanding NAK’s high-grade gold zone.

Company maker

Stewart has high hopes for Awalé’s Odienné property in Côte d’Ivoire.

The exploration team plans to drill another 25,000 meters this year to expand the Charger, BBM, and Sceptre discoveries and to scout prospective pipeline targets. Awalé sees Odienné being developed into a world-class mine camp.

The project benefits from a deal allowing Newmont (NYSE: NEM, TSE: NGT) to acquire a minimum of 65% interest by funding US$15 million in exploration.

Beyond his business ventures, Stewart is deeply invested in nurturing the next generation of mining professionals. In 2017, he co-founded the Young Mining Professionals Scholarship Fund with Anthony Moreau, CEO of American Eagle Gold.

The fund has awarded about

$250,000 annually, addressing the industry’s talent gap and reflecting Stewart’s belief in giving back to the community as his legacy. The scholarship echoes his credo of “perseverance and strategic foresight” that underpins Ore Group.

Stewart’s approach is not just about business; it’s personal. His father, Alexander Stewart, a corporate securities lawyer, and Charles Beaudry, a seasoned geologist, were instrumental in shaping his career. Together, they laid the foundation for what would eventually become the Ore Group, combining legal, technical, and capital markets skills.

Stewart demonstrates personal commitment to his projects, which he says helps align his interests with those of the shareholders, reinforcing his long-term vision for success.

“I’ve never sold a single share of any company I’ve been involved with,” he said.

His ultimate goal is to see the projects he helped discover and develop produce their metals, fulfilling a deep ambition to make an impact in the mining world.

“I want to put every one of our projects into production and put metal into the system,” Stewart said.” That’ll make me happy one day on my deathbed.” TNM

road and rail access among other infrastructure on site.

“It’s looking phenomenal,”

George Ogilvie, the company’s president and CEO says. “On these numbers we’d be currently trading at 1.3¢ enterprise value (EV) per measured and indicated resource in the ground and our peers are currently trading at just over 9¢.

There’s room for uplift.”

Permits in hand, in sight

The company expects to complete prefeasibility and definitive feasibility studies and all permitting in 2025 and produce its first copper cathode in 2027-2028.

Cactus is already permitted for construction on a portion of the

57.2-sq.-km project — the Cactus East and West deposits and the historic stockpile. The company is working to amend those permits to include the Parks/Salyer and Mainspring resources—which are contiguous and add a second pit to the project, in the industrial park of Casa Grande. The company currently has permitted access to an aquifer and on-site water wells for about 4.6 million cubic metres of water per year. Its location on private land streamlines its permitting process with no federal nexus, putting the project at a huge advantage in a state that with the recent exception of Taseko Mines (TSX: TTKO; NYSE: TGB) Florence

copper project, hasn’t permitted a new mine in roughly 15 years, and in a country that has only permitted three mines since 2003.

According to the S&P, permitting times in the U.S. now average about 29 years, the secondlongest in the world behind Zambia.

“We have the best three words in mining: ‘No Federal Nexus’ so we can get a permit or an amendment to an existing permit in a small fraction of the time,” says Travis Snider, the company’s VP sustainability and external relations. “If you read about all the projects in Arizona—the hold-up is typically the federal government, which has no guidelines on when it needs to make a permitting decision. But the state has statutory times that they need to make decisions by.”

Navigating jurisdictions

Snider notes that the company must still comply with all federal requirements on clean air and water, a process administered by the state.

“We know when we put in an application for an aquifer protection permit (APP) we’ll have an answer in three to six months. It won’t be drawn out for 20-plus years by the federal government trying to figure out whether we did enough studies,” he says.

“If you look at Resolution and Rosemont, they have had a very different path seeking federal authorizations—both well past the 10-year mark. It’s a shame for Arizona and a major setback for domestic production. Enough so that Hudbay stopped working on

Rosemont and is now working on the adjacent Copper World project, which is on private land.”

The state also has an incentive to permit Cactus, the company says, as the previous owner, Asarco, did not have sufficient funds to close the mine properly and it was a liability for the state environmental trust.

“We’ve turned this from being a taxpayer liability to become what will be one of the top ten copper producers in the U.S.,” Snider says. “And because we worked with the state to acquire the property, we do have requirements to bring it back into production and they are motivated to see us succeed.”

The company updated its resource in July, outlining measured and indicated resources of 574.1 million tonnes at 0.58% total copper for 7.3 billion lb. contained copper and 430 million inferred tonnes at 0.41% total copper for 3.8 billion pounds.

“We have a very robust and financeable project,” Ogilvie says. “If investors are looking at junior copper development stories that are lower-risk and have a high degree of executability, then I would absolutely say Arizona Sonoran is on top of the list or in the top three given its location, infrastructure, scalability and optionality. I think we’ll see a big uptick in valuation in the next six months.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Arizona Sonoran and produced in co-operation with The Northern Miner. Visit: www.arizonasonoran.com for more information.

Ore Group chairman Stephen Stewart. STEPHEN STEWART

Arizona Sonoran Copper’s legacy Cactus open pit in Arizona. ARIZONA SONORAN

indepth

TSX, TSXV miners raise most cash in a decade

FINANCING | Stats contrary to perception of slow market for miners

BY COLIN MCCLELLAND AND ALISHA HIYATE

The amount of money raised for mining on Canada’s leading stock markets the TSX and its Venture Exchange jumped 62% in this year’s first half compared with 2023’s same period, in a promising sign for the industry, according to data from parent company TMX.

Mining industry companies listed on the indexes sold shares for $6.8 billion in this year’s first six months vs. $4.2 billion in the year-earlier period, figures show. The industry is TMX’s largest sector by capital raising, listed stocks and volume traded, according to monthly reports.

“The first half has been very, very encouraging,” TMX global head of mining Dean McPherson said in a July 25 interview with The Northern Miner. “In terms of financing, that’s a key indicator of investors’ attitude and that’s been trending up.”

The TSX and TSXV hold listings for more miners than anywhere else, including stock markets in London and New York, with some 40% of the industry on the Toronto-based exchanges. This

year’s figures mark another step in a mining sector rebound from a recent low-point of $4 billion raised on the indexes in 2022 and are the highest in at least a decade.

The equity amount raised was $6 billion in 2021, $2.4 billion in 2020, $1.6 billion in 2019, $4.4 billion in 2018 and $3.8 billion in 2017.

Top issuers

First Quantum Minerals (TSX: FM) accounted for nearly a quarter of the mining sector’s total in stock offerings with a more than $1.5-billion raising in February after the Panamanian government shut its Cobre Panama copper mine. The issue was part of debt restructuring that also included US$1.6 billion in bonds.

Capstone Copper (TSX: CS; ASX: CSC) and major shareholder Orion Resource Partners raised $431 million in one of the largest capital raisings this year for a miner on the TSX. The deal helps fund the Mantoverde open-pit mine and the nearby Santo Domingo project in Chile.

New mining listings accounted for 29 of 121 total companies new to the Canadian markets during the year’s first half. The respective figures for the year-earlier period

were 17 of 112. The TSXV had 25 initial public offerings (IPOs) by mining companies this year to June 30 compared with 11 in last year’s period, while the respective TSX figures are four and six.

“We have several IPOs on the Venture, but we haven’t had any real large IPOs yet on the TSX so that part of the market is still not quite there yet,” McPherson said.

“Perhaps with the easing of interest rates that could be the last piece of the puzzle that will bring some pretty large IPOs that have been sitting on the sideline for a while to market.”

Canada’s central bank has cut benchmark interest rates twice this year, in June and July, to 4.5%. The U.S. Federal Reserve is expected to begin cutting rates from 5.5% when

it meets in September.

Across all industries, the TSX and TSXV raised $10.2 billion and $2 billion, respectively, for a total of $12.2 billion during the first half. During the same period last year, the figures were $5.4 billion for the TSX and $2.5 billion on the TSXV for $7.9 billion in total.

Commodity prices

The average financial raising in the year to June 30 was $44 million on the TSX and $3 million on the TSXV, data show. In 2023’s first half the respective amounts were $27.3 million and $3.4 million.

McPherson said he expects commodity prices to help miners, especially with record prices for gold around US$2,500 an oz. The growth of artificial intelligence, which requires vast amounts of energy, could boost uranium, which has eased from more than US$100 a lb. in February, he said.

“Precious metals are hitting record highs and compounded with the whole energy transition thesis,” he said. “When you think about AI as well coming into focus, particularly when you think about uranium, there’s a lot of reasons to be very, very optimistic.” TNM

NexGen’s Rook I uranium project costs soar

SASKATCHEWAN | Costs remain low in global terms

BY COLIN MCCLELLAND

NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) says inflation and improved engineering have pushed construction costs for its permits-stage Rook I uranium project in Saskatchewan nearly 70% higher than a 2021 estimate.

The updated capital cost is $2.2 billion compared with $1.3 billion in a feasibility study three years ago, NexGen said on Aug 1. Using a

long-term uranium price of US$95 per lb., the project is expected to generate an average annual aftertax free cash flow of $1.9 billion in its first five years vs $2 billion in the earlier study.

Operating costs would nearly double to $13.86 per lb. of uranium oxide (U3O8) over the mine’s life from $7.58 per lb. U3O8 in the 2021 study. The project’s after-tax net present value falls to US$6.3 billion from $7.7 billion, both at an 8% discount rate. The internal rate of return is 45% vs. 79%.

“Unsurprisingly, costs have increased vs. the feasibility study estimate in 2021 but, at first glance, are probably slightly higher than market expectations,” Alexander Pearce, a mining analyst at BMO Capital Markets, wrote in a note on Aug. 1. “Despite an increase in cash cost to about US$10 per lb., the asset would remain one of the largest and lowest cost uranium mines globally.”

Shares in NexGen closed 12% lower on Aug. 1 in Toronto at 8.10¢ apiece as wider markets plunged on

Advancing Novador Gold Project in Quebec TSX: PRB

www.probegold.com

recession fears. The stock climbed to $8.17 closer to press time and traded in a 52-week range of $6.61 to $12.14. The company is valued at $4.6 billion.

Federal approval

NexGen is gearing up to start construction once a federal review process completes, perhaps this year. The company is among uranium companies such as Cameco (TSX: CCO; NYSE: CCJ) benefiting from governments embracing nuclear energy to fight climate change while the price of the heavy metal more than doubled from a year ago to US$106 per lb. in January. It has since eased to US$80.60 per lb. near press time, according to Trading Economics.

NexGen says it’s in talks with potential project funders including commercial banks, export credit agencies and alternative sources. Some of them might fully satisfy the project’s capital costs in combination with the company’s current cash and liquid investments, it said.

“The updated capital cost presents an all-encompassing spend to bring the Rook I project into production based on robust, proven mining and construction methodologies, with a payback period of 12 months,” CEO Leigh Curyer said in the release.

“Our commitment to developing this project to the highest environmental standards ensures sustainable and responsible operations from the outset while delivering industry-leading profitability and local community consultation.”

BMO’s Pearce said his base case net present value for the project is $5.1 billion at a 10% discount rate

and US$75 per lb. long-term uranium price, which also assumes a longer mine life of more than 14 years compared with the 2021 study’s 11 years.

Athabasca Basin

The project in Saskatchewan’s northern Athabasca Basin uranium district has provincial environmental approval. Rook I is expected to produce 21.7 million lbs. of U3O8 annually while annual production capacity remains at up to 30 million lb., according to the update. The project holds 3.7 million measured and indicated tonnes grading 3.1% U3O8

Sustaining capital costs are estimated at $785 million, averaging $70 million per year, more than double the $33 million a year in the feasibility study, the update showed.

The new capital costs reflect about $310 million in price inflation since 2020 and about $590 million from enhanced engineering and procurement activity since March 2021, the company said. It attributed $2.65 per lb. of U3O8 more in operating costs due to inflation and an additional $3.63 per lb. increase from advanced design developments, procurement and operational and environmental improvements.

The updated costs reflect the advancement of project engineering from 18% complete when the feasibility study was done to about 45% finished now, the company said. Rook I plans to process tailings underground as it mines to reduce environmental risks and lower closure costs to $70 million at the end of the mine’s life. NexGen says the amount is materially less than other uranium mines in Canada. TNM

The old Toronto Stock Exchange building. ESKYSTUDIO/ADOBESTOCK.

indepth

Glencore scraps coal exit plan on investor pressure

ESG | Lucrative cash generation hard to abandon

BY CECILIA JAMASMIE, MINING.COM

Glencore (LSE: GLEN) followed shareholder opposition and scrapped plans to separate its coal division, which it had announced following its acquisition of Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) assets last year.

Shareholders representing nearly two-thirds of eligible voting shares were consulted, Glencore said Aug. 7. Over 95% of those who expressed a preference supported retaining the coal and carbon steel materials business, primarily because they said it would enhance the firm’s cash generating capacity.

The Swiss miner and commodities trader committed “to continue to oversee the responsible decline of its thermal coal operations over time.” But CEO Gary Nagle said on a conference call to discuss firsthalf financial results, published alongside the coal decision, that the

company might consider purchasing more steelmaking coal assets if the price, quality and location are right.

Glencore’s backpedaling on its coal exit did not come as a surprise to analysts, as investors had been pushing for the company to continue mining coal. The decision highlights the dilemma fossil fuel companies and their shareholders face. They are under pressure to reduce emissions, but doing so would mean giving up on the substantial profits they are still generating.

The Baar, Switzerland-based firm is one of the largest producers and exporters of thermal coal, with an expected output of between 98 million and 106 million tonnes this year.

“Investors appreciate the strong cash flow from coal, particularly if it is channeled to capital returns/ buybacks,” Bank of America analysts said in a July note.

Shares in Glencore closed 3%

higher in London on Aug. 7 at £4.06 apiece, before easing by £1 near press time for a market capitalization of £49.5 billion. They’ve traded in a 52-week range of £3.65 to £5.07.

Thermal coal

Glencore had previously said it planned to run down its thermal coal mines by the mid-2040s, closing at least 12 by 2035. The company said in November it would merge Teck’s steelmaking coal business with its own coal assets, after which it would separate the combined unit.

In its 2024-2026 Climate Action Plan, Glencore noted it was still on track to meet its 15% reduction of carbon dioxide-equivalent emissions for its industrial assets from 2019 levels by the end of 2026, and by half at the end of 2035.

Glencore’s business has long been centred around coal, and the prospect of abandoning it seemed improbable for a company built on

the commodity. Ivan Glasenberg, Glencore’s CEO for two decades, was a former coal trader who frequently highlighted the unquenchable demand from Asia, even as the West sought to distance itself from coal.

“A decision against a coal demerger is a good decision,”

Sebastian Rötters, energy and coal campaigns coordinator at Urgewald, a fossil fuel industry watchdog based in Germany, said in an emailed statement.

“Glencore should keep its coal mines and wind them down in line with the [International Energy Agency] net zero scenario, providing just transition for coal workers and affected communities. This includes of course no more coal mine expansions and no new mines.”

Pro and con

Simon Nicholas, from the Cleveland-based Institute for Energy Economics and Financial Analysis, agreed. He said a coal spin off would

have meant Glencore losing control over its Scope 3 emissions — those generated from assets not owned or controlled by a company.

“Previous divestments of coal assets by diversified miners have put control in the hands of pureplay coal miners that have optimistically bullish outlooks with plans to increase production,” Nicholas wrote in May.

Juan Pablo Gutiérrez, with the National Indigenous Association of Colombia and the Yukpa Indigenous people, said he was dissatisfied with the decision.

“Glencore’s investors only seek to maximize their profits, wanting to keep all coal assets under one roof,” Gutiérrez said in an emailed statement.

“For the Indigenous communities affected by its coal mines, such as the Yukpa and Wayúu [in Colombia], the real solution is for Glencore to close its mines and immediately assume its social and environmental responsibilities.”

Heavy rains to threaten 25% of world’s copper projects

by 2050

ENVIRONMENT | Canada, Australia, DRC face highest risks

BY NORTHERN MINER STAFF

Copper extraction is crucial to the energy transition, but a quarter of sites mining the metal face a rising threat from the impacts of climate change by mid-century, according to new data.

The research, conducted by risk intelligence company Verisk Maplecroft in collaboration with mining analytics platform Costmine Intelligence, shows that 19% of copper mines currently have risk exposure to extreme rainfall. That may increase to 25% by 2050, the companies said.

Already, severe downpours over the past decade have forced copper mines in Chile, Peru and Australia to suspend operations causing several billion dollars in losses. Warming temperatures are only expected to increase the pace and intensity of financial hits, the analysts said.

The most likely emissions scenario will harm major copper producing countries such as Canada, Australia and the Democratic Republic of Congo (DRC), according to Verisk Maplecroft’s Extreme Precipitation Index. It measures the frequency and intensity of heavy rains across seven different time horizons and three emissions scenarios.

“Health and safety risks to workers, damaged access roads and electrical and structural damage at site facilities can all have an impact on production,” says Verisk Maplecroft’s Chief Analyst Jimena Blanco. “Associated landslides can also create widespread disruption, both at the site and within the broader jurisdiction, impacting staff, suppliers and members of neighbouring communities.”

Risks to ‘safer’ jurisdictions

The growing impacts of the climate crisis mean that assessing the long-term viability of copper projects increasingly depends on understanding their future

exposure to natural hazards, the analysts say.

Canada and Australia account for just under half (47%) of the 718 copper projects benchmarked within the analysis, which focuses on mine sites tagged at advanced

exploration stage or further within the Costmine Intelligence platform.

The number of Canadian copper sites facing high or very high risks from extreme precipitation is set to more than double, from 16 projects currently to 42 by mid-century

under an intermediate emissions scenario.

Australia, which hosts the second-highest number of potential sites, is set to see a marginal

Rains P38 >

indepth

Cashed up Skeena pushes Eskay Creek toward 2027 start

BY HENRY LAZENBY

TERRACE, B.C. — Three seconds to blast. Skeena Resources’ (TSX: SKE; NYSE: SKE) president and CEO Randy Reichert focuses on the countdown crackling over the radio. The ground shudders, dust rises, and the mountain exhales with a deep boom.

The detonation at Skeena’s Eskay Creek project, nestled in the rocky slopes of British Columbia’s Golden Triangle, is part of early construction work at what is to become the Main Pit. The company is spending $713 million to revive one of the world’s former highest-grade gold mines by 2027 with an initial 12-year life.

“Each blast is a step closer to realizing the full potential of Eskay Creek,” Reichert told The Northern Miner during a site visit in late July. “It’s not just about moving rock; it’s about laying the foundation for the next chapter in this legendary mine’s history.”

Skeena secured a $1-billion financing package with Orion Resource Partners in June, fuelling the mine’s return to production. The deal, which covers the entire pre-production capex, includes an equity investment, a gold stream, a senior secured loan, and a cost over-run facility. It’s remarkable given that permits are still being finalized, Reichert noted. The Eskay Creek project was an underground mine from 1994 to 2008.

Skeena is finalizing early works and engineering plans, aiming for an impact benefit agreement with the Tahltan First Nation government in early 2025. The company expects to secure the environmental assessment certificate, the Mines Act permit and a construction OK by the end of next year, Reichert said. Building is to start in 2026 with production to follow in the first half of 2027.

“We’ve been diligent in our approach to permitting, working closely with regulators and local communities,” he said. “By anticipating potential roadblocks and addressing them early, we’re reducing the risk that often accompanies projects of this scale.”

Eskay Creek’s redevelopment is one of two sizeable Golden Triangle projects that are making progress on permitting, including Seabridge Gold’s (TSX: SEA; NYSE: SAKSM) KSM copper-gold project. The region, roughly bordered by the towns of Stewart to the west, Dease Lake to the north, and the junction of the Skeena and Stikine Rivers to the south, historically produced about 130 million oz. gold.

Ready to rock

The Eskay Creek project, an underground mine from 1994 to 2008, is set to produce 320,000 gold equivalent oz. per year from throughput of 9,000 tonnes per day using an open pit, according to a November 2023 feasibility study.

The study shows a post-tax net present value of $2 billion at a 5% discount rate and an internal rate of return of 43%. It used a gold price of US$1,800 per oz. and silver at US$23 per ounce. The payback period is expected to be 1.2 years, with life-of-mine all-in sustaining costs at US$687 per ounce.

“Each blast is a step closer to realizing the full potential of Eskay Creek. It’s not just about moving rock; it’s about laying the foundation for the next chapter in this legendary mine’s history.”

— RANDY REICHERT,CEO, SKEENA RESOURCES

Eskay Creek’s proven and probable reserves total 39.8 million tonnes grading 2.5 grams gold per tonne and 68.7 grams silver (3.6 grams gold equivalent) for 33 million oz. of gold and 88 million oz. of silver. Measured and indicated resources total 50.1 million tonnes grading 2.6 grams gold and 63 grams silver (3.4 grams gold-equivalent), with 4.1 million oz. of gold and 101.4 million oz. of silver.

Court ruling

Last month, a federal court decision upheld Skeena’s tailings management plan, allowing the company to use the existing Albino Lake tailings area and confirming its ownership after an individual who had staked claims below it challenged Skeena’s rights.

Meanwhile, the early works at Eskay Creek are progressing under a 10,000-tonne bulk sample permit, which allows the site to prepare for heavy equipment and infrastructure development. At site, the ongoing early stage

groundwork is essential, Reichert said, not just for current operations but also for future exploration. These include studies on steepening pit walls to access more high-grade ore early on and investigating deep porphyry potential at the nearby KSP property.

The tour also included key spots including the mill site, open pit areas, tailings management facility, waste rock storage areas, camp and infrastructure sites, access roads, power supply points, and water

management facilities.

Skeena’s stock gained 50% this year through July 11 when it announced the finance package. Its shares traded at $10.70 before press time, having touched $4.20 and $11.52 over the past 12 months. Skeena has a market capitalization of $1.1 billion.

Silver ‘wild card’ Silver represents about two-thirds of the total mineral content at Eskay Creek, positioning the project as one of the top five primary silver stories currently in develop-

ment worldwide.

While primarily a gold mine, the silver component of Eskay Creek’s resources adds to Skeena’s story. Orion’s gold stream does not extend to the silver component, giving Skeena full access to the upside of the precious metal that’s risen 24% in the past 12 months to US$2,512.10 per oz. at press time.

“Silver is the wild card at Eskay Creek,” Reichert said. “With the right market conditions, it has the potential to significantly boost the project’s returns, making it an even more attractive asset.”

Above: The Eskay Creek camp. Right: Early works are underway on what will become the Eskay Creek Main Pit. HENRY LAZENBY

Above: A map of the Golden Triangle region of B.C. SKEENA RESOURCES

Left: Skeena Resources’ president and CEO Randy Reichert. HENRY LAZENBY

Exploration momentum puts PEA in near-term sight for Snowline Gold

SITE VISIT | Junior

revealed

multi-million-ounce resource in June

BY BLAIR MCBRIDE

EASTERN YUKON — In a re-

mote corner of Yukon, Snowline Gold (TSXV: SGD; USOTC: SNWGF) has moved from the first drill holes at its Valley target to an initial resource in less than three years.

“Snowline is still a fairly new company — this is our fourth summer of operation,” Snowline CEO Scott Berdahl said in a kitchen tent at the main Forks camp, in late June. “In 2021, we got a single drill together and drilled this orogenic target called Jupiter (and Valley). We moved down to Valley, where we’ve now defined a quite substantial, multi-million-ounce resource as an initial resource.”

The highly anticipated resource for Valley, released just one week before the late June tour, showed the deposit is among the largest in size and grade across several projects in the Tombstone gold belt that runs under the Yukon.

This year, the company has raised $72 million to support more than 15,000 metres of drilling at Valley, and 13,600 metres have already been drilled.

Near the border with the Northwest Territories, two drill rigs were turning at Snowline’s flagship Valley target when The Northern Miner visited. The company has completed a new, 50-person camp that will support more exploration.

Cashed up for exploration

The funds Snowline has raised this year add to $19 million B2Gold (TSX: BTO) invested last March for a 9.9% stake. They will also support 10,000 metres of drilling with three rigs at its other regional targets such as Aurelius, northwest of Valley, and Jupiter, north of the Forks camp at the Einarson project.

“Given the scale of the program this year, and the construction (of) our second camp just coming online at Valley, that’s runway for essentially the next season, at the rate we’re exploring,” Berdahl said.

One of the great prizes of Valley is the quality of grades near the surface, Berdahl explained, pointing to hole V-23-039 drilled last summer.

“One thing to note here is the continuity of grades,” he said. “There’s very little low-grade mineralization. That interval, you’ll see the top 132 metres that average five grams per tonne.”

Valley’s initial resource outlined 75.8 million indicated tonnes grading 1.66 grams gold per tonne for 4.1 million oz. of contained metal. It has another 81 million inferred tonnes at 1.25 grams for 3.3 million ounces.

Canaccord Genuity analyst Peter Bell wrote in a note in June that the resource provides a strong base for growth at Valley and in the region. He’s modelled a resource of 212.3 million tonnes at 1.35 grams gold per tonne for 9.2 million ounces.

Snowline’s portfolio covers about 3,600 sq. km and includes the main Rogue, Einarson, Ursa, Cynthia and Olympus projects.

Valley of gold

Out at the Valley target itself, standing amid a landscape thick with shrubs and near a rushing creek, Berdahl gestures at a wooden stake

beside an old drill hole.

“The gold is in these quartz veins and so the more quartz veins you get, generally the higher grades you have,” he said. “Every time you see a piece of flagging tape above the core, someone has noticed physical gold in the drill core and they just mark it with that. Sometimes we get hundreds of instances of visible gold within a single hole.”

He waves his hand again and says the edge of Valley’s mineralization stretches about 500 metres up the valley, more than 400 metres in width, and hundreds of metres in vertical depth.

“That would most likely be accessed by a pit constraint and produced from there,” he said. “Even what we’re standing on is

very well-mineralized right from surface so we’re digging into some of the best material right from day one.”

Infrastructure headwinds While Snowline has only just released its first resource, looking ahead to any potential development reveals some hurdles. The main ones are direct road access and power infrastructure. Its southern Cynthia project is within 8 km of the Plata Winter Trail that links to the North Canol Road, which touches Olympus, though that’s far from Valley. The nearest towns are Ross River, 200 km to the south, and Mayo, 223 km to the east.

The creek at Valley, which runs over a part of the deposit, would

have to be partially diverted if it becomes a mine. It could also be harnessed for its hydro-electric potential to power a camp, Berdahl said.

But there are some potential solutions on the horizon, Berdahl explained. The Yukon government’s proposed resource roads regulations could help by simplifying the process for building private, project-specific roads that can be reclaimed after they’re no longer needed, he said.

For power, he cited the possible connection of Yukon with British Columbia’s green power grid, which the territorial and B.C. governments have been discussing. Yukon premier Ranj Pillai asked

the federal government in June to provide up to $60 million for the connection, and the territory has earmarked $1 million towards the plan. Western Copper and Gold (TSX: WRN; NYSE-AM: WRN) also hopes to link up its Casino project near Carmacks to the grid. Snowline already operates solar cells at the Forks camp, and Berdahl said the company might explore options to cooperate on power with Fireweed Metals (TSXV: FWZ; US-OTC: FWEDF), whose Macpass project is just southeast of Rogue. Fireweed is considering grid power connections with Ross River.

Snowline’s green power project and environmental collaboration work with the First Nation of Na-cho Nyäk Dun (FNNND) won the company the territory’s 2023 Robert E. Leckie Award for Excellence in Environmental Stewardship.

Snowline’s share price slid off the strong trajectory it had until July 19, after which it lost 19% of its value. While it has continued to report strong drill results, the drop came amid jitters that Snowline would shut down exploration, Berdahl said, after the FNNND’s call for a halt to mining in its traditional territory following the June heap leach accident at Victoria Gold’s (TSXV: VGCX) Eagle mine.

Its shares had recovered before press time and traded for $5.48 apiece, for a market cap of $868.3 million.

Drilling towards PEA

Looking ahead to the rest of 2024, Snowline will likely drill more than 15,000 metres at Valley, combining infill drilling to upgrade the resource and expansion drilling, Berdahl said.

He hopes an updated resource can be ready for Valley by the end of the season, with a preliminary economic assessment possible next year.

In the meantime, Snowline has plenty of exploration work to do.

“There’s still data gaps out here,” he said. “Valley was a data gap, initially, when we first staked claims up here in 2008. There’s more to be done. And we want to make sure that there aren’t other Valleys sitting out there that we don’t know about.”

A view of Snowline’s Valley target from a helicopter. BLAIR MCBRIDE

Left: CEO Scott Berdahl stands in the Valley target. BLAIR MCBRIDE Right: Thomas Branson, VP exploration, in the core shack at Snowline’s Forks camp in eastern Yukon. BLAIR MCBRIDE

A dog wanders near workers’ tents at the main Forks camp. BLAIR MCBRIDE

indepth

Permit builds buyout promise at KSM gold-copper project

BY HENRY LAZENBY

TERRACE, B.C. — Seabridge Gold (TSX: SEA; NYSE: SAKSM) has long been seen as a juicy takeover candidate for its huge KSM gold-copper deposit, but its remote, mountainous location in British Columbia, US$6.4-billion price tag, and tough permitting path have impeded a deal.

But with its permitting recently resolved, chairman and CEO Rudi Fronk says the company could be ready to sign on a well-heeled joint venture partner within months to help it develop the mammoth project. He says he was close to signing a deal in 2020 when Covid-19 scuppered talks.

“With six major gold and copper companies currently at the table, we are confident that we will secure a partnership that aligns with our vision and financial strategy,” he told The Northern Miner during a site visit to KSM in late July. “The nice thing right now is for the first time ever, we have competitive tension going on in our process.”

RBC Capital Markets is managing a JV negotiation process, Fronk said. RBC has been brought in to manage and enhance the negotiation process for securing a JV partner, creating a competitive environment to secure the best possible deal for Seabridge.

A day before the permit milestone — a B.C. government designation acknowledging that construction at KSM has ‘substantially started’—Fronk predicted a deal could materialize quickly. That designation confirms the project’s environmental assessment certifi-

cate (issued in 2014) is valid for the mine’s entire lifespan. Seabridge has poured more than $1 billion into the project since getting involved in 2000.

“Once the permit designation has been completed, we could expect a deal within four to six months, perhaps even sooner,” he said.

Besides the permit milestone, the federal and provincial governments’ July 15 commitment of $195 million for local infrastructure

improvements, including upgrades to Highway 37, signals strong governmental backing for the project.

Seabridge secured US$150 million in funding about a year ago in a deal with Sprott Resource Streaming and Royalty, for which it has been conducting early work activities. Seabridge subsidiary KSM Mining gave up a 1.2% net smelter return (NSR) royalty on the project.

Fronk’s sought to advance the

project with staged investments to reduce upfront capital requirements and equity dilution.

“Our goal is to bring in a partner who will fund the bankable feasibility study and subsequent project financing, ensuring that Seabridge’s financial exposure is minimized,” he explained.

Martian landscape

During the July visit, The Northern Miner saw the vast scale of the KSM

deposits from the air, and inspected the progress of pre-construction activities at the Golden Triangle site.

Extensive road networks, bridges, and infrastructure necessary to support future construction and mining operations are already in place.

At the Mitchell deposit, among several at KSM, the tour helicopter touched down in what seemed like a Martian landscape, with outcropping mineralization staining the rocks around the glacial valley bright orange, yellow and turquoise.

With a receding glacier as the backdrop, Elizabeth Miller, vice-president of environment and social responsibility, explained the Mitchell deposit is a cornerstone of the KSM project.

The 2022 prefeasibility study highlights the project’s flexibility, Miller said, allowing for different mining approaches and development plans that can be customized to fit a future JV partner’s skills. Copper or gold?

Both Fronk and Miller stressed that KSM has so much yellow and red metal that it could be developed as either a primary gold or copper operation.

Proven and probable reserves are 2.3 billion tonnes grading 0.64 gram gold, 0.14% copper, 2.2 grams silver per tonne, and 76 parts per million (ppm) molybdenum in the Mitchell, East Mitchell and Sulphurets deposits. Contained metal within the reserves comes to 47.3 million oz. of gold, 7.3 billion lb. of copper, 160 KSM site P38 >

Dolly Varden Silver targets high-grade expansion at Kitsault Valley

SITE VISIT | Junior looks to triple resources along 15-km trend in BC’s Golden Triangle

BY HENRY LAZENBY

TERRACE, BC — Dolly Var-

den Silver (TSXV: DV; USOTC: DOLLF) says its drilling is on pace to triple the Kitsault Valley project’s contained metal in northern British Columbia where the junior is mulling a sale or its own development.

A July site visit showcased several deposits including Homestake Silver, the northernmost along a 15-km trend that also hosts the Moose, Dolly Varden, Torbrit, and North Star deposits. The project hosts an estimated 34.7 million indicated oz. silver and 29.2 million inferred oz. silver, according to a 2023 resource. As part of an initial 25,000-metre drill program this year, Dolly Varden reported in June a hole at Moose that cut 5 metres of 977 grams silver per tonne from, 115.2 metres depth, including 0.8 metre of 3,670 grams silver.

“We’ve hit the ground running this season, starting earlier than ever before, with three rigs testing high-priority targets,” exploration

manager Amanda Bennett told The Northern Miner. “The results so far are encouraging, and we’re optimistic about what this season will yield.”

Dolly Varden is backed with a 15% stake held by 130-year-old Hecla Mining (NYSE: HL) as it

advances Kitsault Valley towards a resource update this year and later a preliminary economic assessment. It’s located in B.C.’s Golden Triangle — an area that has seen about US$5 billion in mergers and acquisitions since 2018. The company is benefiting from investor

interest in silver which has gained about 18% to US$27.04 per oz. in the past year.

The project combines the brownfield Dolly Varden and Homestake Ridge projects. The former holds an indicated resource of 3.4 million tonnes at 299.8 grams silver

per tonne for 32.9 million oz. silver, and the latter 736,000 tonnes grading 74.8 grams silver per tonne and 7.02 grams gold for 1.8 million oz. silver and 165,993 oz. gold. The estimates used a 150 grams silver per tonne cut-off for Dolly Varden and 2 grams gold equivalent for Homestake Ridge.

Inferred resources total 1.3 million tonnes at Dolly Varden grading 277 grams silver for 11.4 million oz. of metal, and 5.5 million tonnes at Homestake Ridge grading 100 grams silver and 4.58 grams gold for 17.8 million oz. of silver and 816,719 oz. of gold.

“If we have over a seven-million-ounce gold-equivalent deposit, we want to triple that based on our fifteen-kilometre strike length,” Bennet said.

Challenges and permitting Despite the promising discoveries, the Kitsault Valley project, 46 km southeast of the deep-water port town of Stewart, faces some challenges. The rugged terrain and com-

Dolly Varden P38 >

With a receding glacier in the background, Elizabeth Miller, vice-president with environment and social responsibility, points out how the Mitchell deposit is a cornerstone of the KSM project. HENRY LAZENBY

Drills are turning at Dolly Varden Silver’s Homestake Silver deposit in B.C.’s Golden Triangle. HENRY LAZENBY

Amanda Bennett at the Wolf adit. She’s credited with expanding the mineralization at depth at the Wolf deposit. HENRY LAZENBY

donedeals

China’s Ganfeng buys Lithium Argentina project stake

BATTERY METALS | Deal builds on established links

BY NORTHERN MINER STAFF

Lithium Argentina (TSX: LAAC; NYSE: LAAC) has completed the sale of a 14.9% stake in its Pastos Grandes lithium brine project in Salta province to China’s Ganfeng Lithium.

The deal, which saw Ganfeng invest $70 million in the company’s Argentina-based subsidiary, was first announced in March.

“Proceeds from the transaction will be used to strengthen our balance sheet, reduce short term debt at Caucharí-Olaroz and provide additional flexibility to support our future growth plans,” Lithium Argentina president and CEO Sam Pigott said in a release on Aug. 16.

The company is positioning itself as a key player in the lithium market, focusing on lithium carbonate production for use in lithium-ion batteries and electric vehicles. Lithium Americas (TSX: LAC; NYSE: LAC) spun out the South American unit last year to focus on its giant Thacker Pass project in Nevada.

Same basin Pastos Grandes is located in the same basin as Ganfeng Lithium’s Pozuelos-Pastos Grandes project.

“The completion of this transaction is an important step forward for the combined efforts of Lithium Argentina and Ganfeng Lithium in Argentina emphasizing the collaboration and shared commitment of both companies,” Pigott said.

Lithium Argentina acquired

Pozuelos-Pastos Grandes in early 2022 through the purchase of Millennial Lithium. The project is also near the Caucharí-Olaroz mine — a joint venture between Lithium Argentina and Ganfeng that began production last year.

Ganfeng holds a 46.7% stake in Caucharí-Olaroz, in Argentina’s Jujuy province, and Lithium Argentina holds 44.8%. The mine is currently operating at 70% of its 40,000-tonne-per-year design capacity, with production reaching 5,600 tonnes of lithium carbonate in the second quarter of 2024, a 24% increase from the previous quarter.

Meeting guidance

The project remains on track to meet its 2024 production guidance of 20,000–25,000 tonnes. During this ramp-up phase, production is primarily sold to Ganfeng Lithium, with the company focusing on producing battery-quality lith-

ium as operations progress.

As of June 30, Lithium Argentina held US$96 million in cash and cash equivalents, with an undrawn $75 million credit facility from Ganfeng.

The formation of Lithium Argentina helped distance Thacker Pass from Chinese involvement due to United States-China relations and to secure U.S. Department of Energy funding. The U.S. and its allies have been cracking down on Chinese investment in mining as they push to compete with China for access to critical minerals.

Lithium Americas secured a US$2.3 billion loan from the U.S. Department of Energy in March to finance the construction of processing facilities at Thacker Pass. Stage one of Thacker Pass is expected to produce 40,000 tonnes of battery-grade lithium carbonate annually and operate for 40 years. TNM

Gold Fields to buy Osisko in US$1.6B cash deal

PRECIOUS METALS | Companies already had Windfall JV in Quebec

BY CECILIA JAMASMIE, MINING.COM

South Africa’s Gold Fields

(NYSE: GFI; JSE: GFI) is buying Canada’s Osisko Mining (TSX: OSK) in a deal valued at $2.1 billion as record-breaking prices for the precious metal fuel acquisitions and expansions.

The takeover, which grants the Johannesburg-based gold miner full ownership of the Windfall project in Canada, is its latest move to diversify abroad. These efforts include an unsuccessful attempt two years ago to acquire another Canadian gold miner, Yamana Gold.

Under the definitive agreement with Osisko, Gold Fields will pay $4.90 per share, a 55% premium to Osisko’s Aug. 9 trading price, it said in a statement Aug. 12. The deal will help the South African producer expand its presence in the Americas, where it already has mines in Chile and Peru.

Gold Fields has been developing the Windfall project in Quebec in a 50/50 joint venture with Osisko.

“Over the past two years, beginning with our initial due diligence in 2022 and throughout our joint

ownership of the project since May 2023, we have developed a strong understanding of Windfall and its potential,” CEO Mike Fraser said.

“We view it as the next long-life cornerstone asset in our portfolio.”

2026-7 start

Gold Fields plans to bring the

Franco-Nevada adds Yanacocha royalty

STREAMING | Pays US$210M

BY CECILIA JAMASMIE, MINING.COM

Royalty and streaming company Franco-Nevada (TSX: FNV; NYSE: FNV) is buying a royalty on Newmont’s (TSX: NGT; NYSE: NEM; ASX: NEM) Yanacocha gold mine, South America’s largest, for US$235 million.

Toronto-based Franco-Nevada is paying Peruvian company Buenaventura in cash and shares for a 1.8% net smelter return royalty on the mine and adjacent properties in Peru.

The transaction covers all minerals and includes a US$210-million cash payment at closing. Buenaventura will also receive US$15 million in Franco-Nevada shares, contingent on future development and commercial production of the Conga copper-gold deposit next to Yanacocha.

As part of the deal, Franco-Nevada also secured a right of first refusal on any future sales of Buenaventura’s royalty interests.

“Yanacocha has been one of the largest gold mines globally and the district covered by the royalty remains highly prospective with over 47 million oz. of gold-equivalent in total reserves and resources,” Franco Nevada CEO Paul Brink said in a statement.

Immediate infusion

The Yanacocha mine, currently operating open-pit oxide production, will immediately contribute gold-equivalent ounces to Franco-Nevada’s portfolio, the com-

pany said.

Newmont, the owner and operator of Yanacocha, expects the mine to produce 290,000 oz. of gold this year.

The royalty acquired by Franco-Nevada also covers the Yanacocha copper-gold sulphides project, which boasts total reserves and resources of 1.2 million copper tonnes and 7.2 million gold ounces.

Earlier this year, Newmont deferred to next year a decision on developing the US$2-billion Yanacocha sulphides project, which would extend the mine life beyond 2040.

As the oxide resources of the open pit Yanacocha mine are close to being depleted, the project is designed to continue mining sulphide material underground.

Oxide operations

The large copper-gold sulphides project hosts 1.2 million tonnes of copper reserves and resources and 7.2 million oz. of gold reserves and resources within the footprint of the current oxide operations. It is expected to produce more than 500,000 gold-equivalent oz per year during its first five years. The first stage focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend operations beyond 2040. The second and third stages, Palmer said, have the potential to extend the mine life for “multiple decades.”

Yanacocha is situated between 3,500 and 4,100 metres above sea level in the Peruvian province and department of Cajamarca. TNM

Windfall mine into production by the end of 2026 or early 2027, eventually ramping up to about 300,000 oz. annually. The project, along with the recently commissioned Salares Norte in Chile, is central to the company’s growth strategy as it

At Lithium Argentina’s Pastos Grandes project in Salta province. LITHIUM ARGENTINA

Osisko’s Windfall project in the James Bay region of Quebec. OSISKO MINING

eye on australia

BHP, Lundin grab Filo in US$3B South American copper deal

M&A | Partners net major red metal projects

BY CECILIA JAMASMIE, MINING.COM

Australian mning giant BHP (NYSE: BHP; LSE: BHP; ASX: BHP) and Canada’s Lundin Mining (TSX: LUN) have teamed up to acquire Filo Corp. (TSX: FIL) in a US$3-billion ($4.1 billion) deal handing them key copper assets in Chile and Argentina.

BHP and Lundin are forming a 50/50 joint venture to hold the Filo del Sol prospect, which is located near the copper-rich Atacama Desert, straddling the border between Argentina and Chile.

The partners will also own the large-scale Josemaría copper-gold-silver project in Argentina’s San Juan province.

BHP and Lundin have offered $33 per Filo share, which represents a premium of 32% to Filo Corp.’s 30-day volume weighted average price on the Toronto Stock Exchange for the period ending on July 11, when rumours of the coming deal were leaked to media. The figure represents a premium of 12% to Filo’s last closing price on the TSX on July 29.

BHP and Lundin are forming a 50-50 joint venture to buy the Filo del Sol copper project in Chile.

Filo shareholders can elect to receive the payout in Lundin shares or a combination of cash and shares to a maximum aggregate cash sum of $2.8 million.

BHP CEO Mike Henry said the companies plan to combine the Filo and Josemaría projects to cut costs, with the Aus-

n WestgoldKarora merger closes

Australia’s Westgold Resources (ASX: WGX) and Canada’s Karora Resources (TSX: KRR) completed their planned merger on Aug. 2,

tralian miner shelling out a larger sum — US$2.1 billion — as Lundin already owned the Josemaría asset. BHP is paying about US$690 million cash for half of the project.

“The proposed transaction builds on a multi-year relationship between BHP and the Lundin Group of companies through which we have developed a strong understanding of

creating a dual-listed miner among Australia’s top five producers.

The combined company is expected to have an annual output of over 400,000 oz. of gold per year, ore reserves of 3.2 million oz. of gold and resources of 13 million oz. of the metal. It also holds a pipeline of exploration prospects across two of Australia’s most productive gold

Dedicated strategy focused on discovering standalone gold projects with > 1 Moz development potential

fields, and a market capitalization of about A$2.5 billion (US$1.6 billion).

“Today marks the next phase of Westgold’s evolution into a larger, unhedged and well-funded Australian gold producer,” managing director and CEO Wayne Bramwell said in a statement.

The transaction saw Westgold take ownership of Karora’s Australian Beta Hunt and Higginsville gold mines. These are both high-performing assets nestled in the same region as Westgold’s iconic Bluebird and Great Fingall mines. Westgold now also owns the Lakewood gold mill near Kalgoorlie.

The merger comes as record-high gold prices have sparked significant activity in the Australian bullion sector. Evolution Mining (ASX: EVN) in December agreed to buy an 80% stake in the Northparkes copper-gold mine in New South Wales from Chinese miner CMOC Group. That followed the high-profile acquisition of Newcrest by gold giant Newmont (NYSE: NEM) for more than US$15 billion.

Red 5 (ASX: RED) was acquired in February by Silver Lake Resources to build a mid-tier gold producer valued at US$1.5 billion, and Perseus Mining (ASX: PRU; TSX: PRU) took over OreCorp in April.

n Batteries sector grapples with costs

Australia’s efforts to establish a downstream lithium sector to match its status as the world’s top lithium miner were dealt another blow in late July when Albemarle (NYSE: ALB) suspended parts of its Kemerton hydroxide plant.

Albemarle planned the facility south of Perth to have four 25,000 tonne-per-year production trains. The first two were completed in 2022, later than expected and over budget.

the resource potential of the Vicuña district and the possible pathways for development of the Filo del Sol and Josemaria projects,” Henry said in a statement.

The world’s largest miner already held a 5% stake in Filo Corp., which it acquired in 2022, while Lundin had a 32% stake.

“Our copper-gold-silver exploration success at Filo has been unmatched since spinning the company out in 2016,” Filo president and CEO Jamie Beck said in a statement. “Now is the right moment to hand the project off to its next stewards to maximize the potential of this remarkable discovery.”

The deal, which is subject to two-thirds of Filo shareholders voting in favour, is expected to close in next year’s first quarter.

Since Henry assumed the top post at BHP in 2020, the company has been seeking copper assets. The quest has seen the miner make its largest acquisition in a decade, Oz Minerals, and recently offer an unsuccessful US$49 billion bid for Anglo American (LSE: AAL).

The price BHP and Lundin are willing to pay for undeveloped mines, which will not be operational for years and will require significant investment to bring into production, shows the importance mining companies place on expanding their copper operations. It’s also a testament to the scarcity of projects of this magnitude available for acquisition. TNM

Following a review prompted by weak lithium prices, Albemarle suspended construction of the A$900 million third train. It plans to idle the second train and shift its focus to ramping up train one.

Other lithium players have had their own challenges. Tianqi Lithium and IGO Ltd. (ASX: IGO) have struggled to ramp up their Kwinana hydroxide plant in an industrial area outside Perth since it was restarted in late 2021.

IGO CEO Ivan Vella told reporters on the sidelines of the Diggers & Dealers Mining Forum in Kalgoorlie in early August that although Kwinana’s performance has improved, it remains a difficult operation.

“If we look into the industry, and obviously Albemarle’s decision, it shows you just how challenged it is,” Vella said. “The margins are very low, and there’s a lot of stress on the industry.”

Canaccord Genuity analyst Tim Hoff told The Northern Miner’s sister publication Mining.com that other downstream sectors, including nickel and alumina, had felt the same stress.

“I think that’s going to remain really difficult in Australia. We simply don’t have the right cost structures,” he said. “We simply don’t have the right industry structures to really succeed and place our players well.”

n Regis takes US$130M hit on project in new heritage zone

Regis Resources’ (ASX: RRL), the third-largest gold miner on the ASX, says its McPhillamys project in Australia has lost almost all of its value after the federal government issued an unexpected environmental protection declaration.

Environment Minister Tanya Plibersek’s Section 10 ruling, intended to preserve Indigenous heritage grounds, means Regis cannot build a tailings dam at the planned spot in New South Wales.

The miner revealed on Aug. 21 the financial hit of Plibersek’s decision, booking a non-cash impairment of A$192 million (US$130 million) against a significant portion of the carrying value of the proposed mine.

Regis Resources also withdrew McPhillamys’ definite feasibility study, scrapping the 1.9-million oz. ore reserve previously reported for the asset. This official estimate is central to how investors value mining companies.

Shares in Regis Resources closed 2.7% higher on Aug. 21 in Sydney at A$1.74 apiece, where they remained near press time, valuing the company at A$1.3 billion. They’ve traded in a 52-week range of A$1.44 to A$2.33.

The company said that choosing a new site would effectively restart the approvals process. This could potentially delay the project by up to a decade, making it unviable in its current form.

“To advance any form of realistic and approvable alternative tailings solution requires further extensive investigations and studies along with the restart of the state and federal approvals processes,” the company said. “This could take between five and 10 years, with no certainty of a viable alternative being realized.”

Regis said the Indigenous group that may have the clearest legal authority to assess the heritage value of the site, the Orange Local Aboriginal Land Council, hasn’t opposed the project.

In a submission to planning authorities last year, the group said the mine wouldn’t put any important heritage sites or artifacts at risk, adding that any potential impacts could be “appropriately managed and mitigated.” TNM

LONDON, UK | DEC 1-2, 2024

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KEITH NEUMEYER PRESIDENT & CEO FIRST MAJESTIC SILVER

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FIND OUT HOW YOU CAN JOIN US:

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projectupdates

Oroco boosts economics at Santo Tomas copper project

MEXICO | New study bumps NPV by almost 25%

BY COLIN MCCLELLAND

Oroco Resource (TSXV: OCO; US-OTC: ORRCF) says a new study makes its Santo Tomas copper project in western Mexico one of the world’s most capital-efficient by hiking its value 23% while trimming construction costs.

The Vancouver-based explorer’s revised preliminary economic assessment (PEA) increases the porphyry project’s net present value (NPV) to almost US$1.5 billion from US$1.2 billion in a PEA from last October, both at an 8% discount rate. The new study issued on Aug. 20 lowers initial capital expenses to US$1.1 billion from US$1.3 billion

in the previous report. The internal rate of return increases to 22.2% from 17.3%.

However, sustaining and expansion capital costs rise to US$1.7 billion from US$1.1 billion over the 22.6-year mine life, 2.6 years longer than originally envisioned. Payback improves to 3.8 years from five.

The 20-stage open pit mine and processing plant in Sinaloa state would start at 60,000 tonnes per day in the first year of production as in the previous PEA. However, expansion to 120,000 tonnes per day would be moved to the eighth year instead of the second. The first PEA envisioned four pit stages.

“A staged approach to the mine expansion and a focus on exploit-

ing the higher-grade near-surface material in the early years of mining has unlocked a considerable increase in value,” Oroco CEO John Lock said in a release.

Case vs peers

The company cited a metric of aftertax NPV per initial capital spending — US$1.48 billion/US$1.1 billion — that ranks Santo Tomas more efficient than other low-cost, largescale copper projects. These rivals include Ivanhoe Electric’s (TSX: IE; NYSE-AM: IE) Santa Cruz project in Arizona, McEwen Mining’s (TSX: MUX; NYSE: MUX) Los Azules project in Argentina and

Electra surges on US$20M funding for cobalt refinery

ONTARIO | Washington invests further in

Canadian supply chain

BY BLAIR MCBRIDE

Electra Battery Materials’ (TSX-V: ELBM; NASDAQ: ELBM) shares jumped 40% on Aug. 19 on news it received US$20 million from the United States’ Department of Defense (DoD) to help develop its cobalt refinery in northern Ontario.

Construction has started on Electra’s US$250 million facility located in Temiskaming Shores about 500 km north of Toronto. It will likely be North America’s only cobalt sulphate refinery once it’s commissioned. It aims to produce 6,500 tonnes of cobalt a year, supporting the annual production of more than 1 million electric vehicles.

“Electra is committed to strengthening the resiliency of the North American battery supply chain,” Electra CEO Trent Mell said in a news release. “We are grateful to the U.S. Department of Defense for its support. On issues of national security, there are no borders between Canada and the United States.”

The investment follows more

than US$10 million funneled to other Canadian companies by the DoD over the past 18 months, as Washington prioritizes local production of critical minerals needed for the green energy transition to reduce reliance on foreign supply chains.

Electra shares traded at 70¢ apiece before press time, valuing the company at $40 million. Its shares traded in a 52-week range of 41¢ and $1.05.

Supply chain strength The funding was made available through the Additional Ukraine Supplemental Appropriations Act, and in line with Title III of the U.S. Defense Production Act (DPA), which aims to strengthen domestic supply chains.

Electra is expanding the plant, with permits ready. It would have the lowest carbon footprint in the world, the company says. LG Energy Solution has signed a three-year deal to buy a supply of battery grade cobalt from Electra for the manufacture of lithium-ion batteries. The South Korean com-

Calibre Mining gets approval for third open pit at Valentine

NEWFOUNDLAND | First gold in second quarter of 2025, company says

Calibre Mining (TSX: CXB) announced on Aug. 6 the approval of a third open pit at its Valentine Gold mine in Newfoundland, known as the Berry Deposit.

The company reported receiving federal environmental assessment approval to include Berry and the related infrastructure changes at Valentine.

“With this approval and the recent issuance of provincial mining and surface leases for Berry and associated infrastructure, we now have the major approvals required for the three-pit mine plan included in the 2022 feasibility study,” Calibre CEO Darren Hall said.

Since Calibre acquired Valentine in January, engineering has progressed to 98%, advanced con-

struction from 50% to 77% and a skilled operations team has been brought on board, Hall said. The company is aiming for first gold in the second quarter of next year, he added.

The approval comes several months after Calibre acquired Valentine with the buyout of Marathon Gold. The deal is expected to nearly double production for Calibre, as well as diversify its near-term production away from Nicaragua, where most of its producing assets are located. Calibre expects Valentine to become the largest gold mine in Atlantic Canada.

14+ year life

Valentine comprises a series of mineralized deposits along a 20-km trend. A December 2022 feasibility study outlined an open pit mining and conventional mill-

ing operation over a 14.3-year mine life with a 22% after-tax rate of return and average gold production profile of 195,000 oz. per year for the first 12 years.

The project has estimated proven and probable reserves of 2.7 million oz. (51.6 million tonnes at 1.62 grams gold per tonne) and 3.9 million measured and indicated oz. (64.62 million tonnes at 1.9 grams gold), inclusive of the reserves. There are also 1.1 million inferred oz. (20.7 million tonnes at 1.65 grams gold).

In a note to clients in mid-August, investment bank Canaccord Genuity said the advancement of the Valentine mine is “very positive” for the company.

Shares in Calibre Mining traded at $2.36 apiece before press time, valuing the company at $1.8 billion. Its shares traded in a 52-week range of $1.16 and $2.36. TNM

Oroco P38 >

Oroco Resources’ Santo Tomas copper project in Mexico’s Sinaloa state. OROCO RESOURCES

The cobalt refinery in Temiskaming Shores, Ont. ELECTRA BATTERY MATERIALS

Calibre Mining’s Valentine gold mine in Newfoundland. CALIBRE MINING

Electra P38 >

mining, metals & markets

18 Global gold funds data

26 Market data 25 Warrants & shorts 19 Capital raisings 24 Drill results

ETF assets

22 EV metals

28 Mining events contents

27 Market news

*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

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.

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

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

1

1

CAPITAL RASINGS | 12-MONTH ROLLING AVERAGE

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

9/23–8/24 9/22–8/23

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

PearTree is a Canadian Securities Dealer and Investment Fund Manager advancing over (CAD) $500 million annually for resource exploration and mine development in a uniquely Canadian structure which results in as much as $2.00 of capital deployed for every $1.00 invested by global institutions and family offices.

Watch our video in English, Français, Deutsch, and Español on our website.

Expanding the universe of exploration capital.

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4

5

7

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evmetals

evmetals

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.

July 16, 2024 – August 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.

Name Symbol Subsciption Terms Expiry Date

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 FMAN.WT.U One warrant to purchase one common 11-29-2026 share at US$0.65 per share.

Mogotes Metals Inc MOG.WT One warrant to purchase one common 01-31-2027 share at $0.30 per share.

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.

Robex Resources Inc RBX.WT One warrant to purchase one common 06-27-2027 share at $2.55 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.

short positions

Aluminum: US$1.12/lb.

Cobalt: US$11.03/lb.

Gold: US$ 2,518.14/oz.

Iron Ore 62% Fe CFR China-S: US$97.

Nickel: US$7.41/lb.

Silver: US$29.97 per oz.

Zinc: US$1.28 per lb.

marketdata

COMMODITY PRICES | Prices current August 26, 2024

Coal: Central Appalachia, 12,500 Btu, 1.2 S02-R,W: US$75.

Copper: US$4.11/lb.

Iridium: US$4,675/tr oz.

Lead: US$0.94/lb.

Rhodium: US$4,750/tr. oz.

Tin: US$14.86/lb.

Coal: Powder River Basin, 8,800 Btu, 0.8 S02-R, W: US$13.95

Copper: CME Group Futures October 2024: US$4.23/lb.;

November 2024: US$ 4.26/lb.

Lithium carbonate: US$10,175/tonne

Ruthenium: US$400 per oz.

Uranium: U3O8, Trading Economics: US$82.40 per lb.

Aug. 19-23, 2024

Markets gain on rate cut outlook

By Colin McClelland

Stocks markets rose modestly for the week ending Aug. 23 as economies slowed and the United States central bank said it would likely cut interest rates in September.

The Dow Jones Industrial Average gained 1.3% to 41,175.08 points and the S&P 500 rose 1.4% to 5,634.61. In Canada, the S&P/TSX Index increased 1% to 23,286.08 while the S&P/TSX Venture Composite Index added 2.1% for 578.03.

The S&P/TSX Global Mining Index gained 1.7% to 121.2, and the S&P/TSX Global Gold Index rose 0.8% to 368.78. Gold added 1.5% for US$2,500.30 per ounce. The S&P/TSX Global Base Metals Index gained 2.9% to 197.64 with copper up 1.4% at US$4.20 per pound.

Hecla Mining was the biggest NYSE percentage gainer, adding 10% to close at

US$6.26. Endeavour Silver gained 9.3% to US$3.37 after it resumed processing at its Guanacevi mine in Mexico. Ero Copper added 7.9% for US$21.66, while Gold Fields fell 13% after cutting its output forecast for the second time in three months.

On Toronto’s S&P/TSX Index, Lucara Diamond rose more than 50% to 63¢ after it reported the world’s second-largest diamond ever mined. Nickel Creek Platinum gained 35% to $2.10 after its one-for-100 share consolidation.

On the S&P/TSX Venture Exchange, Sigma Lithium added $1.04 for $14.52 after it improved second-quarter margins. EnCore Energy rose by 41¢ to $4.90 after increasing uranium production in the recent quarter.

Hecla gains while Gold Fields falls

miningevents

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 26

Navigating Shutdowns, Turnarounds and Outages (STOs) – webinar

VENUE: Virtual

MORE INFORMATION: events.northernminer.com/ prometheus-group-virtual-event-sept-2024/

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/

Integra secures cash flow with $95M deal to acquire Florida Canyon

BY HENRY LAZENBY

A$95-million deal for Integra Resources (TSXV: ITR) to acquire Florida Canyon Gold (TSXV: FCGV) would give it producer status and immediate revenue to fund its pipeline of development projects in a booming gold market.

The new company is to produce 70,000 oz. gold per year from the Florida Canyon mine, a well-established heap leach operation in Nevada. Set to close by year-end, the merger announced on July 29 also includes two key development projects: Integra’s crown jewel, the DeLamar project in Idaho, and the Nevada North project.

They’re both within threehour drives of Florida Canyon in the Great Basin covering most of Nevada and parts of Utah, Oregon, Idaho, and California.

“This merger fulfills our goal to become a gold producer in the western United States, specifically in the Great Basin,” Integra executive chair George Salamis told The Northern Miner in an interview. “The cash flows from Florida Canyon will fund future exploration and permitting initiatives, reducing the need for dilution by returning to the market for financing.”

The deal is set against a backdrop of record gold prices spurring consolidation in the sector, with peers in the Great Basin and beyond pursuing mergers to strengthen their positions. Companies such as Calibre Mining (TSX: CXB; OTCQX: CXBMF), Endeavour Mining (LSE: EDV; TSX: EDV) and Equinox Gold (TSX: EQX; NYSE-AM: EQX), all transitioned from explorers to producers in the past five years through acquisitions, while others have focused on expanding their asset portfolios.

Shares fall

However, Integra and Florida Canyon shares plunged 16% to $1.24 and 13% to 55¢ per share, respectively, on July 29 in Toronto. They were at $1.29 and 56¢ near press time for company values of $113.9 million and $77.3 million.

Florida Canyon Gold shareholders are to receive 0.467 of an Integra share for each share they own, resulting in a 60-40 ownership split between Integra and Florida Canyon shareholders.

The merger requires Integra to replace the surety bond guaranteed by Alamos Gold (TSX: AGI; NYSE: AGI) for Florida Canyon’s operational stability and regulatory compliance. Alamos bought Argonaut Gold’s Magino mine in Ontario and spun out the rest of Argonaut’s assets to form Florida Canyon.

While Florida Canyon’s production costs have been high, recent personnel and operating improvements have turned performance around. The mine produced about 71,000 oz. gold-equivalent last year, with net cash and all-in sustaining costs (AISC) of US$1,368 per oz. and US$1,654 per oz., respectively.

The mine’s AISC for 2022 was about US$1,800 per gold ounce. By integrating Florida Canyon’s existing operations and development projects like DeLamar and Nevada North, Integra can leverage its combined assets to increase production efficiency and scale, Salamis said.

Improved capital access

Salamis emphasized that the merger with Florida Canyon is particularly timely given the cur-

rent record gold prices. Investors such as Wheaton Precious Metals (TSX: WPM; NYSE: WPM; LSE: WPM) and Beedie Capital strongly support the deal, he said. Analysts might consider to re-rate the stock with a higher forecast price that could enhance investor confidence, he added.

“The merger opens up the investment pool, attracting those who only invest in producing assets with cash flow,” Salamis said. “With gold prices at record highs,

this deal positions us for a potential future re-rating as we advance our development projects.”

The leadership structure will remain largely the same, with Integra incorporating board members from Florida Canyon and seeking a chief operating officer with heap leach expertise. The combined company is to benefit from an experienced mining workforce and potential operational enhancements at Florida Canyon.

The improvements include a

recent US$40 million investment in a leach pad expansion and carbon-in-column circuit. This entails a process where gold is extracted from a cyanide solution by passing it through columns filled with activated carbon, which adsorbs the gold from the solution for recovery.

Exploration upside

Besides the operational synergies, Salamis points to the exploration potential that made Florida Canyon an attractive target, even though the main asset hadn’t seen drilling in 20 years. There is “low-hanging fruit” in “obvious” targets adjacent to the open-pit mining operation, Salamis said.

There’s also an historical 300,000oz. gold resource in the area, which the company can start exploring immediately since the area is already permitted. The Great Basin, noted for its mineral wealth, is characterized by its arid climate and flat valleys crossed by mountain ranges. Salamis says DeLamar is advancing through the federal environmental approvals process. It is expected to produce 135,000 oz. gold per year over an eight-year mine life.

The Nevada North project, with the Wildcat and Mountain View deposits, offers a 13-year mine life and a projected yearly output of 80,000 oz. gold. It provides exploration potential and synergies with Florida Canyon. TNM

The Florida Canyon heap-leach gold mine in Nevada. FLORIDA CANYON GOLD

SNAPSHOT: Eight companies advancing projects in the Southwest US

BY NORTHERN MINER STAFF

The southwestern United States is well-known for its rich endowment of silver, gold, copper and lithium, among other minerals. Here are eight companies active in the region.

n Apollo Silver

In March, Apollo Silver (TSXV: APGO; US-OTC: APGOF) received its 2024 drill permit for the Waterloo property at its Calico silver project in California’s San Bernardino County, about 15 km from the city of Barstow.

The company has already defined gold and silver resource estimates at Waterloo, but the property contains significant barite mineralization too, and Apollo plans to update the resource to include the critical mineral for the first time. A historic estimate in 1979 completed by the American Smelting and Refining Company (ASARCO) outlined 33.9 million tonnes grading 13.4% barite for a total of 4.5 million tonnes of barite.

In addition to being a meaningful byproduct credit, barite production has the potential to reduce waste from future silver mining operations, the company says. It’s important for domestic metallurgical use in the energy industry, and 90% of the barite sold in the U.S. is used as a weighting agent in petroleum drilling.

Apollo Silver started a test program in January to determine the optimal assay technique for barite using 79 samples from across the Waterloo property. It now plans a comprehensive re-assay program of select drilling pulps.

Currently, Waterloo hosts 34.2 million measured and indicated tonnes grading 100 grams silver per tonne for 110 million oz. contained silver and 300,000 inferred tonnes averaging 77 grams silver for 720,000 oz silver. It also has 4.5 million inferred tonnes grading 0.5 gram gold for 70,000 gold ounces.

Pan American Silver (TSX: PAAS; NYSE: PAAS) retains a 2% net smelter return royalty on the property.

The second property at Calico called Langtry, contains 19.3 million inferred tonnes grading 81 grams silver for 50 million oz. contained silver.

Apollo Silver has a market cap of $28 million.

n Arizona Metals

Arizona Metals (TSX: AMC; USOTC: AZMCF) expects to release a resource estimate for its Kay polymetallic project in Arizona in the first half of 2025.

The company released assays in July from seven drill holes at Kay. One hole returned among the highest copper and gold grades to date from the volcanogenic massive sulphide deposit.

and 2.9 grams gold (508.5 grams silver-equivalent), using a cutoff grade of 200 silver-equivalent grams.

Ten holes will focus on expansion drilling targeting prospective mineralization in a gap along a vein corridor that spans 1,000 metres. Blackrock says it anticipates the drilling will link up its DPB and NW step-out resource areas together.

Tonopah West’s DPB vein system has been tracked to the property boundary with Blackrock Silver’s Tonopah North lithium property.

Lithium values intercepted at Tonopah North have been as high as 1,660 parts per million (ppm), with zones of mineralization across an area of 7.2 sq. km at surface. The project is adjacent to American Lithium’s (TSXV: LI; NASDAQ: AMLI) TLC project.

In addition, the company is exploring the Silver Cloud gold and silver project, adjacent to Hecla Mining’s (NYSE: HL) Hollister project. Discovery drill hole SBC22-020 in December 2022 cut 52.62 grams gold and 606 grams silver over 1.5 metres starting from 307.5 metres depth.

Blackrock Silver has a market cap of about $61.5 million.

n Century Lithium Century Lithium (TSXV: LCE; US-OTC: CYDVF) recently completed a feasibility study on its Angel Island Mine lithium project in Nevada, immediately east of Albemarle’s (NYSE: ABL) Silver Peak mine, North America’s only lithium brine operation.

The project, formerly known as Clayton Valley, is expected to produce an annual average of 34,000 tonnes of battery-grade lithium carbonate equivalent (LCE) over a life of 40 years, according to the April study.

Phase 1 production capacity of 13,000 tonnes LCE per year comes at a capital cost of US$1.5 billion. Expanding that capacity to 28,000 tonnes per year will cost another US$651 million, and to increase that to 41,000 tonnes per year has a price tag of US$1.3 billion. Phase 1 and 2 production rates are maintained over five years each with the third stage at 30 years.

The study forecast average operating costs of US$8,223 per tonne of LCE produced, an after-tax net present value (at an 8% discount rate) of US$3 billion and an internal rate of return of 17.1%.

Hole KM-24-94B cut 65.2 metres of 1.37% copper, 2.48 grams gold per tonne, 3.82% zinc, 35.1 grams silver and 0.5% lead (4.74% copper-equivalent or 7.77 grams gold-equivalent) starting from 682.1 metres depth. The wide interval included 14.2 metres of 0.73% copper, 5.84 grams gold, 9.17% zinc, 101.2 grams silver and 1.74% lead (9% copper-equivalent or 14.75 grams gold-equivalent) and 10.4 metres of 4.44% copper, 4.34 grams gold, 2.33% zinc, 33.4 grams silver and 0.17% lead (8.29% copper-equivalent or 13.59 grams gold-equivalent).

Arizona Metals also owns 100% of the Sugarloaf Peak gold deposit in La Paz County, about 8 km from the town of Quartzsite. Previous owners reported finding widespread disseminated gold mineralization in a surface anomaly measuring 600-1,200 metres wide and 2,100 metres long. A historic resource estimated 1.5 million oz. gold at a grade of 0.5 gram gold. Arizona Metals has a market cap of about $214 million.

The Kay project in Arizona’s Yavapai County, about 70 km north of Phoenix, sits on private land and Bureau of Land Management claims.

n Blackrock Silver

In what will be its most aggressive drill campaign in two years, Blackrock Silver (TSXV: BRC; USOTC: BKRRF) kicked off in July a

20,000-metre drill program at its Tonopah West project, in western Nevada’s Walker Lane gold and silver district.

The company plans to drill 50 holes over five months with three drill rigs (two core and one reverse circulation), mostly focused on upgrading inferred resources. Forty of the holes will be in-fill drilling in the shallower portions of the Bermuda and Merten vein systems. The two vein systems are expected to be the first structures encountered in the company’s conceptual mine plan.

A resource update last October pegged inferred resources at 6.2 million tonnes in a block diluted grade of 242.6 grams silver

Century Lithium plans to use a patent-pending chloride leaching process combined with direct lithium extraction (DLE). The feasibility study released in April was supported by more than two years of testing at the company’s pilot plant in the Amargosa Valley.

In August, the company reported that it had added a lithium carbonate stage at its pilot plant. The plant treated 200 litres of concentrated lithium solution and produced 20 kg of high-grade LCE on site in the first days of startup.

The lithium clay deposit has 1.1 billion measured and indicated tonnes averaging 966 ppm lithium for 1.1 million tonnes of contained lithium or 5.9 million tonnes of

A drill rig at Apollo Silver’s Calico project in southern California. APOLLO SILVER

LCE. Inferred resources add 187.3 million tonnes grading 820 ppm lithium for 154,000 tonnes of lithium or 817,000 tonnes of LCE. Century Lithium has a market cap of $37.2 million.

n Excelsior Mining

Excelsior Mining (TSX: MIN; USOTC: EXMGF) is working with Rio Tinto’s (ASX: RIO; LSE: RIO;

NYSE: RIO) Nuton LLC to evaluate the use of Nuton’s copper heap leaching technologies to restart the past-producing Johnson Camp in southeastern Arizona.

Nuton’s copper heap leaching technologies are targeted at primary sulphide minerals, including lower-grade mineral deposits, which could not otherwise be processed economically using tradi-

the companies’ agreement, Excelsior will provide the mineralized material, existing plant and infrastructure, permits, people and management, and Nuton the expertise, support, specific equipment and funding.

Nuton copper will be produced in the first half of next year and when Stage 2 is completed, Nuton has the right to form a joint venture at Johnson, giving it an initial 49%. If a JV isn’t formed, Excelsior can use Nuton technology under a licence.

Nuton will pay Excelsior US$5 million for the use of its infrastructure during the second phase 2 work program and Nuton will re-

ceive all operating income less Excelsior’s royalty and stream obligations until the costs are repaid.

In August, Excelsior kicked off construction of its leach pad.

Excelsior’s flagship project is its nearby Gunnison in-situ recovery mine, one of the largest unmined copper resources in the United States. Gunnison is permitted for up to 125 million lb. of copper cathode per year.

Excelsior has a market cap of $54 million.

n Faraday Copper

Faraday Copper (TSX: FDY; USOTC: CPPKF) is continuing to drill at its flagship Copper Creek project after releasing a preliminary economic assessment (PEA) last year. Copper Creek is a 3-km-long porphyry copper deposit in Pinal County, 70 km northeast of Tucson, Ariz.

The current drill program encompasses the American Eagle area, targeting near-surface breccia-hosted mineralization situated above the underground resource at Copper Creek, and the Rum area, 3.5 km to the northwest of American Eagle, targeting porphyry-hosted mineralization exposed at surface.

In June, Faraday released the results of the first two drill holes at American Eagle. Drill hole FCD24-064 returned 20.1 metres of 1.2% copper, 0.1% molybdenum and 6.8 grams silver from 406.6 metres downhole or about 230 metres below surface. The intercept was within a broader 100.3-metre interval of 0.42% copper, 0.02% molybdenum and 1.84 grams silver starting from 395.4 metres. The hole ended in mineralization.

The second hole cut about 23 metres of 0.58% copper from 227.3

tional leaching or sulphide processing technologies.

In May, the two companies proceeded to the second stage of their option agreement at Johnson Camp, in Cochise County.

The second stage work program is expected to take up to five years, and if successful, will demonstrate key elements of Nuton’s technologies at an industrial scale. Under

At Faraday Copper’s Copper Creek project in eastern Arizona. FARADAY COPPER

Nevada King Gold’s Atlanta project in southeastern Nevada. NEVADA KING GOLD

> Snapshot from P31

metres. The intercept was within a 142.7-metre intercept grading 0.31% copper from a depth of 219.3 metres, or less than 150 metres below surface. The results from this hole represent the discovery of copper mineralization at the previously undrilled SK-3 and Prada breccias.

A May 2023 PEA estimated initial capital costs at US$798 million. The study outlined a post-tax net present value (at a 7% discount rate) of US$713 million and an internal rate of return of 16%. Construction would take about two years and the payback period was forecast at just over four years.

The operation, which will initially start as an open pit before going underground, will have a life of 32 years, producing 3.2 billion lb. of copper, plus 45.1 million lb. of molybdenum and 9.7 million oz. of silver.

Copper Creek hosts total open pit and underground resources of 421.9 million measured and indicated tonnes grading 0.45% copper, 0.008% molybdenum and 1.1 grams silver. Contained metals are 4.2 billion lb. of copper, 74.6 million lb. molybdenum and 15.5 million oz. silver. Inferred resources total 83.6 million tonnes at 0.34% copper, 0.007 % molybdenum, and 0.6 gram silver, for 628.2 million contained copper lb., 13.4 million lb. molybdenum and 1.7 million silver ounces.

Faraday Copper has a market cap of $160 million.

n Nevada King Gold

Nevada King Gold (TSXV: NKG; US-OTC: NKGFF) is focused on drilling its past-producing Atlanta gold mine project along the Battle Mountain Trend in southeastern Nevada, 130 km southeast of Ely.

As part of a strategic reorganization in July, it spun out its remaining concessions in the state to Nevada King shareholders in a new company called NV King Goldlands.

The spin-out, which won’t be publicly listed, holds target areas along the Battle Mountain Trend including the Lewis and HorseMountain-Mill Creek projects, both located between the Phoenix and Pipeline mines owned by Nevada Gold Mines, a Barrick Gold (TSX: ABX; NYSE: GOLD) and Newmont (TSX: NGT; NYSE: NEM) joint venture; and the Iron Point project, 35 km east of

Winnemucca.

In addition, NV King Goldlands was granted a 3% net smelter return royalty on all future gold and silver production from the Atlanta gold mine project, including the Atlanta resource area and non-core claims surrounding the project.

The spin-out enables Nevada King to concentrate on the Atlanta project, where it’s in a second-phase drill program. Assay highlights include 54.9 metres

grading 6.3 grams gold starting 148 metres downhole in drill hole AT24-HG-41.

Drillhole AT23WS-44, released in October 2023, cut 108.2 metres of 11.64 grams gold and 17.4 grams silver starting from 215 metres, including a 29-metre interval of 37.16 grams gold and 34.4 grams silver.

The Atlanta mine produced 110,000 oz. gold and 800,000 oz. silver from 1.4 million tonnes between 1975 and 1985. More than

40,000 metres were later drilled by Gold Fields (NYSE: GFI), Kinross Gold (TSX: K; NYSE: KGC) and Meadow Bay Gold starting in the early 1990s.

Nevada King has a market cap of $96 million.

n Surge Battery Metals

In February, Surge Battery Metals (TSXV: NILI; US-OTC: NILIF) completed the first resource estimate for its Nevada North lithium project, 73 km northeast of Wells in Elko County.

At a cut-off grade of 1,250 ppm lithium, Nevada North contains 309.3 million inferred tonnes grading 2,839 ppm lithium for 4.7 million tonnes of LCE.

The company’s most recent drill program began at the end of May. It consists of eight reverse-circulation drill holes testing an area 1 km to the west and up to 1.2 km to the

south of the resource. The results will be used to update the resource model and incorporated into a PEA later this year.

Assay results from four surface holes released in July indicate that thick, high-grade and near-surface mineralization continues to the south of the resource area. Select intercepts include 6.1 metres of 2,696 ppm lithium from surface in drill hole NNL-021, 15.2 metres of 4,661 ppm lithium from 12.2 metres and 26 metres of 3,859 ppm lithium from 32 metres downhole. NNL-022 cut 25.9 metres of 4,605 ppm lithium from 13.7 metres downhole and 42.7 metres of 3,734 ppm lithium starting from 64 metres below surface. Hole NNL024 cut 27.4 metres of 4,043 ppm lithium from surface and 45.7 metres of 3,093 ppm lithium from 35.1 metres.

Surge Battery Metals has a market cap of $52 million. TNM

Drilling at Blackrock Silver’s Tonopah West project in western Nevada. BLACKROCK SILVER

Century Lithium’s Angel Island project in west-central Nevada . CENTURY LITHIUM

Excelsior Mining’s Gunnison in-situ recovery copper mine in Arizona. EXCELSIOR MINING

Arizona Metals’ polymetallic Kay project in Yavapai County. ARIZONA METALS

TOP 10 DRILL RESULTS YTD

— GOLD —

Dundee in Serbia returns best gold assays this year

BY COLIN MCCLELLAND

The Northern Miner has compiled the top 10 drill results year-to-date for major metals, including gold. Here, we present the best gold assays for the year to July 31. Drill holes are ranked by gold grade x width. Drilling from three corners of the world — the Balkans, Canada and Australia — returned the top gold results so far this year.

Dundee Precious Metals’ (TSX: DPM) preliminary economic assessmentstage Čoka Rakita project in Serbia had the strongest result. Alamos Gold’s (TSX: AGI; NYSE: AGI) Island mine in Ontario was second. And Southern Cross Gold (TSXV: MAW; ASX: SXG) followed at the Sunday Creek advanced exploration project in Australia.

Dundee’s Čoka Rakita

Dundee drill hole RIDD052A at Čoka Rakita in Serbia cut 81 metres grading 50.57 grams gold per tonne from 122 metres depth for a width x grade value of 4,096. The result reported Feb. 26 arrived ahead of a PEA in May that forecast the project could produce US$891 million in free cash flow over a 10-year life.

The proposed 129,000-oz.-peryear mine, 160 km southeast of the capital Belgrade, has an after-tax net present value of US$588 million at a 5% discount and an internal rate of return of 33%, according to the study. The mine could cost US$381 million to build and incur all-in sustaining costs of US$715 per oz. of metal, it showed.

Dundee, which has been operating in Serbia since 2004, plans a prefeasibility study in the first quarter of next year, construction by mid-2026 and output two years later. It also has the Timok gold project in the Balkan country.

Čoka Rakita holds 9.8 million inferred tonnes grading 5.7 grams gold per tonne and 1.21 grams silver for 1.8 million oz. gold and 382 million oz. silver, according to an initial resource issued in December.

The company operates the Chelopech and Ada Tepe gold-copper mines in Bulgaria. It forecasts average production of around 240,000 oz. over the next three years.

Island Mine Alamos drilled 2.9 metres grading 1,389.65 grams gold for a width x grade value of 4,030 from 12.5 metres depth at the Island mine in northern Ontario.

The company reported the assay from hole 620-595-02 on Feb. 13, a month before Alamos said it was buying Argonaut Gold’s neighbouring Magino mine for US$325 million. It said the acquisition would make it become Canada’s third-largest gold producer at around 630,000 oz. gold per year.

Magino, only 300 metres away from Island, gives Alamos another producing asset in addition to La Yagui

and

in Mexico and Young-Davidson in On-

plans to use Magino’s larger mill and tailings facilities instead of Island’s and create US$515 million in cost savings over about

two decades of production. The company achieved a record-free cash flow of US$106.9 million in the second quarter, up more than 300% from the first quarter of 2024. Revenue was US$332.6 million, a 27% year-onyear increase, while adjusted net earnings were US$96.9 million.

Alamos has the Lynn Lake development project in Manitoba, which received federal environmental approval last year, as well as others in Turkey and Oregon.

Sunday Creek Southern Cross Gold drilled 455.3 metres grading 7.2 grams gold for a width x grade value of 3,278 in hole SDDSC107 at the Sunday Creek project, the company reported on March. 5. The intercept started at 335 metres depth. Sunday Creek is located in Victoria state, 60 km north of Melbourne.

In June, Southern Cross said it was merging with Mawson Gold (TSXV: MAW) which had spun out Southern Cross in 2022, in a deal valued at A$518.8 million ($472 million). It said it was doubling the amount of drilling at Sunday Creek to 60,000 metres.

The project does not yet have a resource estimate compliant with JORC or National Instrument 43101 standards. However, Southern Cross has outlined an exploration target of 4.4 million to 5.1 million tonnes with grades of 7.2 to 9.7 grams gold-equivalent for about 1 million oz. to 1.6 million oz. of contained metal. It also expects to recover antimony at the site. TNM

Grande

Mulatos

tario. Alamos

Examining drill core at the Č oka Rakita project in Serbia. DUNDEE PRECIOUS METALS Southern Cross Gold’s Sunday Creek project in Australia. SOUTHERN CROSS GOLD

An underground tour of Alamos Gold’s Island mine in June 2023. COLIN MCCLELLAND

BY BLAIR MCBRIDE

Pan American in Mexico tops year’s silver rankings so far — silver —

Our TNM Drill Down features highlights of the top silver assays of the year to July 31. Drill holes are ranked by silver grade x width.

Drilling in North America has returned the best silver assays so far this year.

Pan American Silver’s (TSX: PAAS) preliminary economic assessmentstage La Colorada Skarn in Mexico topped the results.

Hecla Mining (NYSE: HL) was second with results at its Keno Hill mine in Yukon. Hercules Metals (TSXV: BIG) was third with results from its namesake exploration project in Idaho.

Pan American at La Colorada Skarn

Hole U-121-22 at Pan American’s

La Colorada Skarn cut 77.8 metres at 568 grams silver per tonne from 657.3 metres depth, for a width x grade value of 44,218, the company reported on April 7. That hole was part of the highest-grade intersection to date at the Skarn target, said Christopher Emerson, vice-president of exploration and geology.

La Colorada Skarn in Zacatecas, north-central Mexico, is located below and next to the currently producing La Colorada mine, Pan American’s largest. The skarn deposit was discovered in 2018.

The results came almost four months after the company released a preliminary economic assessment for La Colorada Skarn that outlined production potential for a 17-year mine life, with cumulative after-tax cash flow of US$5.6 billion. The early stage study forecast the project could produce 17.2 million oz. of silver, 427,000 tonnes of zinc and 218,000 tonnes of lead annually in its first 10 years.

With initial capital costs pegged at US$2.8 billion, the project’s posttax net present value (at an 8% discount) is estimated at just over US$1 billion, with an internal rate of return of 14%.

The project has a six-year construction period, during which the current La Colorada vein mining operation would continue. Life-ofmine sustaining capital is pegged at US$951 million.

Indicated resources total 173.6 million tonnes grading 33 grams silver, 1.32% lead and 2.79% zinc for 183 million oz. silver, 4.8 million tonnes of zinc and 2.3 million tonnes of lead. Inferred resources come to 103.6 million tonnes grading 35 grams silver, 1.03% lead and 2.47% zinc, for 116 million oz. silver, 2.6 million tonnes of zinc and 1.1 million tonnes of lead.

Pan American plans an updated resources and reserves estimate in

August, based on drilling in the second half of 2023.

Hecla at Keno Hill

Hole BMUG23-105 at Keno Hill cut 12 metres at 1,851.31 grams per tonne from 168.8 metres depth, for a width x grade value of 22,290. That hole, reported on Feb. 13, was drilled into the Bermingham Footwall Vein at Keno Hill in central Yukon.

The results came just over one month before Hecla released an updated technical report for Keno Hill, which is ramping up toward declared commercial production.

The update outlines proven and probable reserves of 34.2 million tons grading 26.6 oz. of silver per ton, for 238.2 million contained ounces. That marks a 45% increase over the reserves identified when it bought Alexco Resources for the asset in 2022.

The report also estimates Keno has an 11-year mine life, with silver production of 52.9 million ounces. That’s expected to produce $420 million in free cash flow, with a post-tax NPV (at 5% discount rate) of $305 million at a silver price of $22 per ounce.

Hecla also operates the Greens Creek mine in Alaska and Lucky Friday in Idaho.

Hercules Metals at Hercules

Hercules Metals drilled 112.2 metres of 193 grams silver from 39.5 metres depth, for a width x grade value of 21,654.59 at its project in Idaho. Hole HER-23-17 was drilled at the Adit zone at the Hercules project, the company reported on Feb. 28.

Hercules has planned this year’s drill program with technical help from Barrick Gold (TSX: ABX; NYSE: GOLD), after its $23.3-million investment last November that

gave it a 12.33% stake in the explorer. The gold giant said its investment in the junior is to help it find copper porphyry deposits.

In May, Hercules started its largest campaign to date: a 20,000metre drill program using three rigs. The program will follow up on

copper porphyry discoveries last year and explore anomalies using IP surveys, CEO Chris Paul said. Mining and exploration at Hercules dates to 1880, with 28,000 metres drilled since 1965 in the Adit zone. Hercules Metals acquired the pre-resource project in 2021. TNM

A haul truck at Pan American Silver’s La Colorada mine in Mexico. PAN AMERICAN SILVER

A drill rig at Hercules Metals’ namesake project in Idaho. HERCULES METALS

Hecla’s Keno Hill silver mine in Yukon. HECLA MINING

BY HENRY LAZENBY

Australia and Argentina tops for copper — copper —

The Northern Miner has compiled the top 10 drill results year-to-date for major metals, including copper. Drill holes are ranked by copper grade x width.

Drilling in the southern hemisphere has produced the best copper assays so far this year to July 31.

BHP’s (ASX: BHP) producing Olympic Dam mine in southern Australia had the best result. Filo Corp. (TSX: FIL) and Aldebaran Resources (TSXV: ALDE) came next with their thousandmetre-plus intercepts at Argentina’s Filo del Sol and Altar projects.

BHP’s Olympic Dam

Known as one of the world’s largest copper, uranium, gold and silver orebodies, Olympic Dam produced the best drill intercept in the year to date. Hole RU50-12091 cut 580 metres grading 2% copper from 516 metres depth, for a grade x width value of 1,287.6.

This intercept, reported on Jan. 18 was from BHP’s ongoing exploration program at Olympic Dam, where it has planned over 62,000 metres of drilling. The goal is to uncover high-grade copper zones along more than 2 km of strike and over 1 km in depth. The resource remains open at depth and along strike.

BHP is progressing with various growth options at its Copper South Australia operations, which include Olympic Dam.

It aims to increase copper production to over 500,000 tonnes per year, or over 700,000 tonnes on a copper-equivalent basis, when considering co-products like gold, silver, and uranium.

A significant part of this plan includes introducing a two-stage smelting process at Olympic Dam, which remains subject to approval. Olympic Dam hosts proven and probable reserves of 634 million tonnes at 1.69% copper for 10.7 million tonnes of metal, and 8.3 billion measured and indicated tonnes at 0.75% copper for 61.8 million contained tonnes.

Filo Corp.’s Filo del Sol Filo del Sol in Argentina showed why it’s the target of a $4.5-billion joint acquisition by BHP (NYSE: BHP; LSE: BHP) and Lundin Mining (TSX: LUN), delivering the second best result on our list. On Jan. 25, its owner, Filo Corp. reported that hole FSDH094 returned 1,289 metres grading 0.6% copper from 192 metres depth for a width x grade value of 765.8. This hole further extended the known high-grade zones within the deposit, contributing to the overall understanding of the project’s mineralization potential, the

company said in a release.

This result was from Filo’s 38,785 metre exploration drilling program completed last year. Nine rigs are still at work at the site, the company said.

Although the company had to pause drilling in the second quarter due to bad weather, recent assays confirm the significant scale of the Filo del Sol deposit. Eight holes were in progress before winter conditions halted operations. The team will restart drilling when conditions improve.

These assays, including impressive intervals from FSDH093 and FSDH094, are thought to expand the known boundaries of the deposit. Filo aims to provide an updated sulphide resource estimate early in the fourth quarter.

BHP and Lundin’s friendly bid for Filo would consolidate the project with the nearby Josemaria project under a new joint venture. The companies say the partnership would provide the financial and technical resources needed to advance development of the worldclass assets.

Filo del Sol holds 432.6 million

indicated tonnes grading 0.33% copper for 3.2 billion lb. of copper metal.

Aldebaran’s Altar

Altar, also in Argentina, delivered the third-best copper intercept of the year so far. Aldebaran reported on June 17 that hole ALD-24-243 returned 1,517 metres at 0.5% copper from 325 metres depth, giving it a width x grade value of 743.3.

That hole cut one of the longest continuous runs of mineralization ever recorded at the site, and expanded known mineralization to the north.

It came from the company’s 20,000-metre program over 202324, which completed 20 diamond drill holes.

Aldebaran has completed more than 50,000 metres since the last resource update in 2021. That estimate outlined 1.2 million measured and indicated tonnes grading 0.42% copper for 1.8 million lb. of metal.

The company plans to release an updated mineral resource estimate in the second half of 2024, followed by a preliminary economic assessment early next year. TNM

• Underexplored

Aldebaran’s Altar project in San Juan province of Argentina. ALDEBARAN RESOURCES

BHP’s Olympic Dam mine in South Australia. BHP

> Victoria Gold from P1 and the narrowing time window before temperatures in Yukon begin to drop markedly in October.

plex permitting processes in B.C. require careful navigation. While the team has successfully amended existing permits, starting new approvals from scratch involves negotiations with local First Nations and compliance with the evolving B.C. Mines Act which the government plans to amend after a court ruling last September urged more Indigenous consultation.

Dolly Varden may face those headwinds with the Big Bulk copper porphyry deposit it acquired last year from Libero Copper & Gold (TSXV: LBC; US-OTC: LBCMF) northeast of Kitsault Valley and wants to drill next year.

“Permitting is always a challenge, but we’ve been able to move quickly thanks to our team’s experience and the support from local stakeholders,” Bennett said. “The topography and the legal terrain are tough, but it’s nothing we can’t handle with the right planning and equipment.”

Build or sell?

Dolly Varden plans a new funding round this year to help finance a drill program expansion with new targets across the property. In addition to financial backing and technical support from Hecla, Fury Gold Mines (TSX: FURY; NYSE: FURY) holds 19% of the

Heap leaching caution

The FNNND, on whose traditional lands the Eagle mine sits, have called for a moratorium on all mining projects on its territory, but the government has rejected that idea.

company and institutional investors 48%

Dolly Varden shares have gained about 34% over the past 12 months to $1.06 before press time, touching 58¢ and $1.29 over the period. It has a market capitalization of $306.2 million.

The company is open to developing its project alone or with a partner, or selling it.

“Whether we continue on our own or partner with a major player like Hecla, our goal is to build substantial shareholder value through resource expansion and discovery,” Bennet said. “Hecla’s input and feedback have guided our exploration strategy, and their commitment to maintaining their stake speaks volumes about the project’s potential.”

High-grade discovery

Drilling at the Moose vein may significantly extend the Kitsault Valley’s mineralization trend, Bennett said. The Chance vein shows expansion potential with drilling that returned 206 grams silver over 23 metres, including 597 grams over 1.4 metres and 749 grams over 0.5 metre.

At the top of the Kitsault Valley lies the Homestake Silver deposit below a receding glacier field.

Dolly Varden acquired it in 2021 from Fury for $39.2 million and it shows promise for expansion after

outcomes incorporated into policy. Terms of reference for that panel have been finalized and sent to the FNNND for their review and feedback, EMR minister John Streicker said.

Western Copper and Gold (TSX: WRN; NYSE: WRN), which plans to use heap leaching at its proposed Casino mine in Yukon, said it was delaying by almost one year its submission of a key environmental per-

mitting document. The company didn’t directly connect the delay with the Eagle accident.

Haney implied the government has spent its own funds on the cleanup at Eagle. Contractors hired for the cleanup and environmental monitoring at Eagle have billed the government for about $300,000 of work, a spokesperson confirmed in an email to The Northern Miner TNM

However, the accident has put heap leaching under the spotlight. Haney said the territory wouldn’t issue new licences for heap leaching operations until an independent review board is conducted and its

recent drilling, the exploration manager said.

“We’re seeing high-grade zones that could significantly add to our resource base,” Bennett said.

At the Torbrit deposit, the largest on the Kitsault Valley property, step-out drilling aims to expand resources by targeting the western extension, with past intersections including 7.5 metres of 345 grams silver from 410 metres depth, including 0.6 metre of 1,510 grams silver.

The Wolf deposit, 1.4 km south of Moose, continues to be a focal point, with drilling revealing highgrade silver at unexpected depths, Bennet said. Hole DV23-375 demonstrated polymetallic potential last year, returning 27 metres of 296 grams silver per tonne, 1.68% lead and 3.01% zinc (461 grams silver-equivalent) from 715.8 metres depth.

“The grades we’re seeing are among the highest in the region,” Bennett noted.

The company could release resource updates for Homestake Silver and Wolf this year, in addition to drill results from the Moose, Chance, and North Star veins.

“We’re just scratching the surface of what’s possible here,” Bennet said. “Every drill hole brings us closer to understanding the true extent of the mineralization.” TNM

million oz. of silver, and 385 million lb. of molybdenum.

The prefeasibility study positions KSM as a gold project costing US$6.4 billion, with an initial mine life of 33 years.

The study uses a base case gold price of US$1,742 per oz. and estimates a payback period of 3.7 years, with an after-tax net present value (at 5% discount) of US$7.9 billion and an internal rate of return of 16.1%.

According to the study, KSM would produce an average of 1 million oz. gold yearly, along with 178 million lb. copper and 3 million oz. silver. The life-of-mine strip ratio is 1:1, and removing block caves has reduced total capital costs.

Block cave potential

In addition to the prefeasibility study, Seabridge’s 2022 preliminary economic assessment (PEA) focused on the opportunity to develop the copper-rich Kerr and Iron Cap deposits through block caving.

This study suggests a 39-year mine life, with the mill feed containing 16 billion lb. copper, 23.2 million oz. gold, and 122 million oz. silver. The base case for the PEA estimates operating costs at US38¢ per lb. copper produced after credits for gold, silver, and molybdenum, and a total cost of US$1.44 per lb. of copper.

Initial capital is estimated at US$1.5 billion, to be funded from cash flows from KSM. The operation could support a 170,000-tonneper-day mining rate and average annual output of 368,000 oz. gold, 366 million lb. copper, and 1.8 million oz. silver.

The PEA forecasts a total aftertax net cash flow of US$18.5 billion, an NPV (at 5% discount) of US$5.8

billion, and an IRR of 18.9%.

A January resource update for Kerr and Iron Cap shows Kerr hosts 384.2 million indicated tonnes grading 0.22 gram gold per tonne, 0.41% copper, 1.2 grams silver, and 5 ppm molybdenum, and 2.6 billion inferred tonnes at 0.27 gram gold, 0.35% copper, 1.7 grams silver, and 21 ppm molybdenum.

Iron Cap contains 471 million indicated tonnes at 0.38 gram gold, 0.21% copper, 4.3 grams silver, and 39 ppm molybdenum. The inferred portion is 2.3 billion tonnes at 0.41 gram gold, 0.27% copper, 2.5 grams silver, and 31 ppm molybdenum.

Glimpse of progress

Miller noted the company has strong partnerships with the Tahltan Nation, Nisga’a Nation, Gitxsan Hereditary Chiefs, and local governments.

“Their support not only reflects the project’s alignment with regional development goals but also our commitment to community engagement and social responsibility,” she said.

Beyond KSM, Seabridge continues to invest in exploration, such as the nearby Iskut gold project, where on June 27, it published an initial resource on the Bronson Slope deposit of 517 million tonnes grading 0.33 gram gold, 0.09% copper and 2.7 grams silver for 5.4 million oz. gold, 1 billion lb. copper and 45 million oz. silver.

It also has the 3 Aces gold project in the Yukon.

Exploration plans this summer include drilling about 15,000 metres at Iskut, with 8,000 metres planned at 3 Aces.

Seabridge shares set a fresh 12-month high of $23.48 on July 30 – up 86% over its period low of $12.62. Before press time they traded at $22.81 apiece, for a market cap of $2 billion.

> Dolly Varden from P12

TNM

> KSM from P12

A gold pour at Victoria’s Eagle mine. COLIN MCLELLAND

Above: The main camp at the Eagle mine in central Yukon. BLAIR MCBRIDE

A drill rig near the open pit at Eagle. BLAIR MCBRIDE

> Osisko from P13

looks to replace output from aging assets in Ghana and Peru.

Gold Fields shares closed more than 6% down in Johannesburg on Aug. 12, at their lowest since June 20. They recovered modestly to 294 rand ($23.38) apiece near press time, valuing the company at 263.5 billion rand.

Osisko’s board has given unanimous approval to the deal, calling shareholders to support it. Chairman and CEO John Burzynski said the transaction represented an early payout for Osisko investors and reflected Windfall’s potential.

“In the span of nine years, we’ve transformed Windfall into one of the largest and highest-grade gold development projects globally,” Burzynski said in a separate statement. “This transaction is a testament to the extraordinary entrepreneurial effort of the Osisko Mining team.”

Gold Fields anticipates completing the acquisition in this

year’s final quarter, with funding sourced from both new and existing debt facilities as well as cash reserves.

In a research note on Aug. 12, BMO Capital Markets analyst Andrew Mikitchook said the strong cash bid of the deal reinforces the quality and scarcity value of Windfall.

“The already existing Windfall JV combined with the strong premium significantly reduces the likelihood of a third party emerging as a bidder,” he said.

Timing questioned

But analyst Raj Ray, also from BMO, questioned the timing of Gold Fields’ move.

“While we acknowledge the transaction rationale behind consolidating the Windfall project and the large exploration potential around it, we are a bit surprised with the timing,” he wrote the same day.

The metals and mining specialist noted that investors will likely

focus on the fact that Gold Fields has “sacrificed a significant portion of its expected cash flows over the next 12 to 24 months,” while taking on development and execution risks.

“This transaction puts even more emphasis on the Salares Norte ramp-up, which has not gone smoothly yet,” Ray said.

Founded in 1887 by Cecil John Rhodes, Gold Fields has reshaped itself over the years. It sold all but one of its South African assets a decade ago, refocusing on newer, more profitable deposits in Ghana, Australia and the Americas.

In early August, the company said it expected a 20% fall in overall production in the year’s first half, as well as the delayed ramp-up of Salares Norte.

The miner had already revised its gold output for the 2024 calendar year in June. It said at the time it expected to churn out between 2.2 million oz. to 2.3 million oz., down from the original range of 2.3 million oz. to 2.4 million ounces. TNM

https://soundcloud.com/northern-miner

> Oroco from P16

Los Andes Copper’s (TSXV: LA; US-OTC: LSANF) Vizcachitas project in Chile.

Shares of Oroco Resource traded for 36¢ apiece before press time, valuing the company at $87.5 million. They’ve traded in a 52-week range of 32¢ to 74¢.

The new PEA keeps Santo Tomas’ total payable copper production of about 4.8 billion lb. while lowering the average annual life-of-mine cash cost to US$1.54 per lb. copper on a byproduct basis from US$1.66 per pound.

Oroco forecasts copper production would average 207.5 million lb. per year over the mine life at an average mill feed grade of 0.51% copper-equivalent. Production byproducts over the mine life are estimated at 138.7 million lb. of molybdenum, 55.2 million oz. of silver and 753,400 oz. of gold.

“The plan starts with the use of smaller equipment to provide rapid entry to the mineralized material and maintains a higher-grade feed profile to delay the requirement of an expansion,” Lock said.

Resource update

The new PEA updates the Santo Tomas resource to 540.6 million indicated tonnes grading 0.33% copper, 0.008% molybdenum and 0.03 gram gold per tonne. It also has 530.3 million inferred tonnes at 0.31% copper, 0.007% molybdenum and 0.002 gram gold.

That compares with 561 million indicated tonnes at 0.37% copper-equivalent and 549 million inferred tonnes at 0.34% copper-equivalent in last year’s PEA.

The new resource was based on prices of US$4 per lb. copper, US$13.50 per lb. molybdenum, US$1,700 per oz. gold and US$22.50 per oz. silver.

Production at Santo Tomas would be preceded by two years of construction and pre-stripping as in the previous study, Oroco said.

The 90-sq.-km Santo Tomas lies in northern Sinaloa and southwest Chihuahua. Oroco holds an 85.5% interest in the 11.7-sq.-km central concessions, plus an 80% interest in the surrounding 78.6 sq. km.

The PEA was based on data from over 43,000 metres of drilling by Oroco and over 21,000 metres of legacy drilling. TNM

> Electra from P16

pany will purchase up to 80% of capacity for the first five years.

Cobalt source material for the facility will come from Glencore (LSE: GLEN) and Eurasian Resources Group (TSXV: ELBM; NASDAQ: ELBM) mines in the Democratic Republic of Congo, material that Electra says would otherwise go to China.

Electra is considering opening a second cobalt sulphate refinery in Bécancour, Que. and a nickel sulphate plant that it says would be strategically located in North America.

Other investments

Fortune Minerals (TSX: FT) received a US$6.4-million grant to help it advance its NICO cobalt-gold-bismuth-copper project in the Northwest Territories; Ucore Rare Metals (TSXV: UCU; US-OTC: UURAF) received US$4 million to help it develop its RapidSX technology; and Fireweed Metals (TSXV: FWZ; US-OTC: FWEDF) has drawn DoD interest for its Mactung tungsten project in Yukon. TNM

increase, from 27 sites currently to 28 in 2050, leaving 17% of the country’s copper projects at risk. Countries such as Mexico and the DRC, which comparatively host fewer potential mines — 17 and 11 respectively — would see the share of assets exposed to extreme precipitation rise significantly. The number of Mexican sites rated high risk is set to grow from two in the current climate to seven by 2050. Three of the projects in the DRC face elevated risks of exposure today, but this could grow to nine by mid-century.

Rainfall impacts vary

The impacts of heavy rainfall on mining sites can be significant, from loss of productivity to higher health and safety risks. They may even create or aggravate risks in relations with local stakeholders, posing a threat to establishing or maintaining a social licence to operate. These impacts will vary depending on factors like type of mine (open pit vs underground), location, operation size, and transport infrastructure used.

Reconstruction efforts following an extreme precipitation event are costly and time consuming –equipment may be submerged and require extensive repairs, while buildings may also become unsafe. Understanding a site’s present as well as future risk profile helps strengthen emergency preparedness and response plans.

Data-driven decision making

To sustain copper’s pivotal role in the energy transition, stakeholders must adopt comprehensive risk mitigation strategies that consider both current and future climate impacts, ensuring the long-term viability and resilience of copper mining operations, the analysis companies said.

“As we look to the future, the integration of data-driven decision making will be crucial for the sustainability and resilience of the mining industry,” Costmine CEO Mike Sinden said. “A holistic approach to risk management that takes into account future threats to production is a necessity.” TNM

> Rains from P9

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