The Northern Miner Nov 14 2022 Issue 23

ONTARIO

Feds crack down on Chinese critical minerals investing in Canada

BY COLIN MCCLELLAND

The federal government has been getting tough with some Chinese companies, forcing some foreign owners of Ca nadian critical mineral projects to divest their holdings in the name of national security.

On a Nov. 2 list of forced dives titures were Sinomine Rare Metals Resources’ holdings in Vancou ver-based Power Metals (CVE: PWM), which has projects in Can ada; Chengze Lithium Internation al’s investment in Calgary-based Lithium Chile (CVE: LITH), whose projects are in South America; and Zangge Mining Investment’s stake in Vancouver-headquartered Ultra Lithium (CVE: ULT), which has projects in Argentina, Canada, and the U.S headquartered in Vancou ver. The junior companies’ assets are focused on lithium, cesium and tantalum.

“We will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad,” François-Philippe Cham pagne, Minister of Innovation, Sci ence and Industry, said in a news release. “Foreign investments are subject to review for national secu rity concerns, and certain types of investment—such as those in the critical minerals sectors—receive enhanced scrutiny.”

China responded by saying Can ada was using national security as a pretext to block trade in a move that’s against international com merce rules.

“China urges Canada to stop unreasonably targeting Chinese companies (in Canada) and provide (them) with a fair, impartial and

business envi ronment,” Chinese foreign minis try spokesperson Zhao Lijian said on Nov. 2.

Ottawa issued new guidelines for foreign investment in the crit ical minerals industry last month after announcing a $3.8 billion crit ical minerals strategy in April to help develop the mining and energy industries needed for a transition to green power in vehicles and elec trical grids targeting net-zero emis sions goals. China already controls large amounts of the rare earth ele ments that are among critical min erals needed for modern technology such as mobile phones, EV batteries and wind turbines.

Colin Hamilton, an analyst based in London for BMO Capi tal Markets, noted China supplies up to 80% of critical metals to the global market.

“Over the last year we have seen a slew of activity intended to bol ster and diversify domestic supply chains for materials critical to the

energy transition, with the United States, Canada and other major economies establishing a new part nership to this effect in June,” he wrote in a Nov. 3 research note.

Canada aims to assess the benefit of a foreign investment by consid ering the power of a state over the company, and the amount of com petition and foreign ownership in the sector, according to the federal guidelines announced Oct. 28 by Champagne and Natural Resources Minister Jonathan Wilkinson.

Agencies will also consider com pany governance and reporting standards, product destinations, and how much investment the company needs to stay competitive.

National security concerns about investments include the company’s size, the strategic value of its output and the amount of control the for eign state could exert, according to the guidelines.

Champagne said the Nov. 2 list was based on security and intel ligence scrutiny. Further foreign direct investment is encouraged from partners who share Canadian interests and values, he said.

“Increasing demand for these all-important minerals are present ing Canada with a generational economic opportunity,” he said. “We are committed to seizing that opportunity while delivering on the country’s ambitious climate goals.”

Spot prices of lithium, used in batteries for electric vehicles and other modern technologies to reduce emissions causing climate change, have tripled in the last year because of supply shortages.

Companies such as tech giant Tesla are racing to secure supplies

‘Bait and switch’: House Committee asks AG to investigate alleged Pebble deception

ALASKA | EPA due to decide project’s fate

BY HENRY LAZENBY

Northern Dynasty Miner als (TSX: NDM; NYSEAM: NAK) has expressed its “extreme disappointment” at a U.S. Transportation and Infra structure House Committee re port that recommends asking the attorney general to investigate al leged false statements by the com pany to Congress.

The Canadian proponent of the controversial Pebble copper-gold project in southern Alaska said in a statement on Oct. 31 that any suggestion that it tried to mislead regulators in any way is “categor ically wrong and misinformed of the realities of the Pebble permit ting process.”

“Here we go again with poli tics replacing ‘reality, science and facts,” said Northern Dynasty CEO Ron Thiessen in a statement.

In releasing their report on Oct. 28, Democratic Reps. Peter DeFazio of Oregon and Grace Napolitano of California, announced they sent evidence of false statements to the U.S. attor ney general’s office based on the report’s findings. The report was leaked to the Associated Press ahead of publication.

The report uses internal com pany documents and communi cations to demonstrate “clear-cut deception” from Pebble L.P. in their push to build an open pit mine in the world’s largest salmon habitat at Bristol Bay.

The chairs will also ask the U.S. Environmental Protection Agency (EPA) and the Army Corps of Engineers to revise their regulations and guidelines to crack down on sham permitting and project segmentation.

According to the committee, its investigation uncovered alleged evidence of Pebble L.P. intending to build a mine with a life span of longer than 20 years; former Peb ble LP CEO Tom Collier lying to Congress that Pebble L.P. had no intention of expanding the mine beyond 20 years; and that Pebble L.P. deliberately sought to mislead regulators regarding the mine’s

planned scope to circumvent the Clean Water Act.

“This report exposes in damn ing detail how Pebble L.P. tried to use a ‘bait and switch’ sham permitting scheme to sneak an environmentally disastrous pit mine project past Congress, reg ulators, and the Native Alaskans whose ancestral land and way of life would be devastated by their greed,” Chair DeFazio said in a statement.

“The report confirms that Peb ble LP CEO Tom Collier was lying in his statement to our subcom mittee concerning the scope and scale of the project, as evidenced by contradictory leaked audio tapes. The truth is, the Pebble L.P. executives deliberately sought to

See PEBBLE / 8

Lithium, precious metals and more | 9-15

non-discriminatory

Gina Raimondo, U.S. Secretary of Commerce, and François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry. FRANCOISPHILLIPPE CHAMPAGNE

Lithium Chile’s Salar de Helados lithium brine project in Chile. LITHIUM CHILE

The Canadian Mining Hall of Fame announces 2023 inductees

TheCanadian Mining Hall of Fame will welcome three new members at a gala dinner and induction ceremony on May 24, 2023 at The Carlu in Toronto. Tickets will go on sale for the event in March of next year.

The Northern Miner is a co-founding member organization of the Canadian Mining Hall of Fame, along with the Canadian Institute of Mining, Metallurgy and Petroleum, The Mining Association of Canada and The Prospectors and Developers Association of Canada. More details about the event can be found at mininghalloffame.ca

As a non-miner in the mining world, Jim Cooney champi oned the concept of sustainable development and pioneered the application of policies and pro cedures to improve the industry’s social and environmental perfor mance. His strongly held convic tions were controversial in the early 1990s, but eventually found acceptance from major compa nies that understood the risks of not adapting to changing times. Among them was Placer Dome (later part of Barrick Gold), which gave Cooney the opportunity to introduce sustainable develop ment across its Canadian and international operations. He intro duced the term “Social Licence to Operate” in 1997, which quickly gained prominence in the mining industry and eventually spread to other industry sectors. From the mid-1990s until his retirement in 2006, he was a thought leader in a broad range of national and international forums that helped mining associations and other organizations draft and adopt sus tainable development policies and practices.

Cooney initially intended to become an academic. He studied philosophy and political science at Georgetown University and East Asian studies at the University of Toronto. In 1976, he decided to leave academia and was hired by Cominco (now Teck) as a research generalist supporting the compa ny’s strategic planning group.

In 1982 Cooney was hired by Placer Development as manager of government affairs. In 1986, he left Placer for an Interchange Can ada assignment as a resource and policy analyst with the office of the Federal Economic Development Co-ordinator. During that time Placer Development merged with Dome Mines. In 1988, he returned

to Placer Dome as director of international and public affairs. His primary responsibility was to assess and help manage social and political risks in the host coun tries and communities of Placer’s exploration and mining invest ments.

In 1987, Cooney was inspired by the Brundtland report, Our Common Future, which intro duced the world to the concept of sustainable development. Yet he noted that while governments and civil society embraced the vision of the report, mining risked being left behind in a changing policy environment. In publications and speeches, Cooney advocated that mining companies should adopt sustainable development as an integrated strategy for managing social and environmental risks.

In 1996, Placer’s CEO, John Will son, agreed with Cooney’s vision and directed him to prepare a cor porate sustainable development policy. During a year of consul tations, Cooney garnered input from key stakeholder groups and from Placer’s managers and pro fessionals around the world. Plac er’s sustainable development policy was thus embedded in the corporate culture as a statement of the values, insights and aspira tions of employees at all levels and locations. In 1998, Placer became the first mining company to fully embrace sustainable development in principle and in practice.

Under Cooney’s guidance, Placer implemented two pathfind ing sustainability initiatives. The company’s Las Cristinas mine in Venezuela conducted a multi-year project of constructive engage ment with artisanal miners, and in South Africa the company under took a multi-year project of pro viding employability and medical support to retrenched minework ers at the company’s South Deep mine. Both projects attracted complementary funding from the Canadian International Develop

ment Agency and both received commendations from the World Bank as innovative and instructive approaches to community devel opment by a mining company.

Cooney helped provide the intel lectual framework for the practical application of sustainable develop ment and this legacy endures today through standard industry prac tices such as stakeholder outreach and Indigenous consultation. In recognition of his leadership and achievements, Cooney received the CIM’s award for excellence in sustainable development (2011) and the AME Robert R. Hedley Award for social and environmen tal responsibility (2016).

Few modern-era geologists have experienced a more produc tive quest for mineral wealth than Alexander (Alex) Davidson. From 1993 to 2009, he contributed to the remarkable success of Barrick Gold as it evolved from its North American base into the world’s leading gold producer. As execu tive vice president of exploration and [later] corporate development, Davidson helped expand Barrick’s gold resources through a series of world-class discoveries and strate gic mergers and acquisitions. Most notably he led the discovery team at the Pascua Lama gold-silver deposit in the Andes, recognized the exploration upside of the Pier ina prospect in Peru, led the team for the grassroots discovery of

Lagunas Norte in Peru and evalu ated and recommended the acqui sition of the Bulyanhulu project in Tanzania. He also maximized the value of assets acquired through takeovers of senior producers such as Lac Minerals, Homestake Min ing and Placer Dome.

Born in Montreal, Davidson graduated from McGill Univer sity in 1976 with a M.Sc. degree in economic geology. Soon after he led an exploration program for a predecessor of Cameco and drilled the discovery hole at the McAr thur Lake uranium deposit in Saskatchewan. In 1980 he joined Falconbridge Copper in Ontario, where he contributed to the dis covery of the high-grade Winston Lake zinc deposit, which produced from 1988 to 1999. He also played a role in the discovery and devel opment of the Samatosum silverlead-zinc mine near Adams Lake,

Below: Pierre Gratton, former CMHF chair and president and CEO of the Mining Association of Canada at the 34th Canadian Mining Hall of Fame Annual Dinner and Induction Ceremony in 2022. CANADIAN MINING HALL OF FAME

HONOURS | Three new members are recognized for their contributions to the mining industry

> Jim Cooney (Born 1942)

> Alexander John Davidson (Born 1951)

ALEXANDER JOHN DAVIDSON

Anthony Vaccaro, CMHF director and president of The Northern Miner Group, at the 2022 Induction Ceremony.

COONEY HELPED PROVIDE THE INTELLECTUAL FRAMEWORK FOR THE PRACTICAL APPLICATION OF SUSTAINABLE DEVELOPMENT AND THIS LEGACY ENDURES TODAY THROUGH STANDARD INDUSTRY PRACTICES SUCH AS STAKEHOLDER OUTREACH AND INDIGENOUS CONSULTATION.

JIM COONEY

British Columbia.

Davidson joined Barrick in 1993 and became part of a top-tier team led by Peter Munk and Robert Smith (both CMHF inductees). He expanded the company’s explo ration efforts outside of North America and devised a system to identify quality projects and share knowledge and talent within the global group. His vision and team leadership skills helped Barrick meet the challenge of expand ing total resources while continu ally replacing mined ounces on an annual basis.

In 1994, Barrick acquired Lac Minerals and began exploring its South American assets. A year later, Davidson’s team discov ered the Pascua deposit in Chile, which led to ground acquisition and exploration across the bor der at the Lama project in Argen tina. Subsequent drilling at Pascua Lama defined reserves of 18 mil lion oz. of gold and 600 million oz. of silver. During this period a joint venture with Argentina Gold led to the discovery of the nearby Valadero mine.

In 1996, Davidson champi oned the US$800-million acquisi tion of Arequipa Resources, based on nine holes at its Pierina dis covery. Pierina opened two years later with 8 million oz. of reserves and produced for 18 years as one of the world’s lowest cost mines. He also urged Barrick to acquire Sutton Resources and its Bulyan hulu gold deposit and led explo ration that quadrupled reserves to 15 million ounces. As part of the deal Barrick gained a domi nant position in the Lake Victo ria greenstone belt and acquired nearby projects later developed into mines. Davidson continued to make discoveries, including Lagu nas Norte in the Alto Chicama district of Peru. In 2005 he spear headed the US$9.2-billion acqui sition of Placer Dome, which gave Barrick a dozen new mines around the world and importantly, con solidated the Cortez Trend which resulted in the Cortez, Goldrush and Fourmile deposits in Nevada. Davidson’s achievements helped elevate the stature of Canadian mining at home and overseas and earned him industry hon ours including the PDAC’s Pros pector of the Year Award (2003), the CIM’s A.O. Dufresne Award (2005) and the SME’s Charles F. Rand Gold Medal (2019).

The career accomplishments of Douglas Silver reflect the close ties between the Canadian and American mining commu nities and the mutual benefits of enhanced exposure to new con cepts and wealth-generating oppor tunities. Silver rose to prominence in the early 1990s as president and owner of Balfour Holdings, which became a leading mineral econom ics and management consulting firm. His training in economic geol ogy (including being involved in a major molybdenum discovery) and rare expertise in mining valuation made him a sought-after consultant and speaker at mining and invest ment conferences on both sides of the border. Silver also launched the Denver Gold Group (DGG), one of the world’s leading invest ment forums for gold producers that features a dominant contin gent of Canadian-listed companies. He has made many other contri butions to Canada’s mining indus try, notably in the mineral royalty and streaming sector. In 2005, he launched International Royalty Corporation (IRC) and grew rev enues from US$400,000 to US$50 million by 2007 and sold the com pany for $749 million in 2010. Sil ver next joined private-equity firm, Orion Resource Partners, and built another large royalty portfolio that ultimately sold for $1.1 billion to Canadian company, Osisko Gold Royalties, and participated in hun dreds of millions of dollars’ worth of Canadian mining investments.

Silver was raised in New Jersey and graduated from the University of Arizona with a masters degree in economic geology. He launched Colorado-based Balfour Holdings in 1987, and soon constructed mul tiple comprehensive databases on mining issues. He developed new valuation techniques for a broad range of mines, mineral depos its and exploration projects. His pioneering expertise in valuations improved the due diligence pro cess, set market values, and ulti mately contributed to the drafting of industry valuation standards, such as the CIMVAL Code.

Silver is a prolific writer and speaker, having given more than 130 presentations, including doz ens of keynote addresses at indus

THE 2023 CMHF GALA DINNER AND INDUCTION CEREMONY TAKES PLACE MAY 24, 2023 AT THE CARLU IN TORONTO

in 2003, with only a small roy alty from the Hemlo gold project, and then raised $190 million to expand the portfolio. IRC was the largest mining-related initial pub lic offering on the Toronto Stock Exchange in 2005. Silver and his team turned IRC into a $749-mil lion company within seven years by acquiring 86 royalties, with a net smelter royalty on Labrador’s giant Voisey’s Bay nickel project being IRC’s flagship asset.

dominated by Canadian-listed companies, and its annual confer ence continues today as one of the world’s principal forums for gold investment discussion.

Early in his career Silver rec ognized the downstream value of royalty investments, and chose Canada as the place to fulfill his dream of creating not one, but two outstanding royalty portfolios. He co-founded IRC as a private entity

After selling IRC to Royal Gold for a 60% premium in 2010, Sil ver joined privately-held Orion Resource Partners and focused on building his second royalty portfo lio. The portfolio included a dia mond stream from Stornoway Diamonds—a Canadian first—and more than a dozen royalties from projects in five Canadian prov inces. The portfolio was ultimately sold in 2017 to Osisko Gold Roy alties for $1.1 billion, which made Osisko the third largest Canadian royalty company.

Silver has received numer ous awards for his many achieve ments, notably from the Society of Mining Engineering, Metallurgy and Exploration (SME), and also was a 2018 inductee into the U.S. National Mining Hall of Fame. TNM

IN 2005, SILVER LAUNCHED INTERNATIONAL ROYALTY CORPORATION (IRC) AND GREW REVENUES FROM US$400,000 TO US$50 MILLION BY 2007 AND SOLD THE COMPANY FOR $749 MILLION IN 2010.

> Douglas Balfour Silver (Born 1955)

DOUGLAS BALFOUR SILVER

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EDITORIAL

Canada draws a line on critical minerals, but leaves unanswered questions

THE VIEW FROM ENGLAND:

COLUMN | New mining idiom; rock, stock and barrel

BY DR CHRIS HINDE Special to The Northern Miner

using an association. Examples include Shakespeare’s “lend me your ears” (meaning pay atten tion) and “suits” as a figurative reference to businessmen.

contact us by one of the following methods: Phone: 1-888-502-3456; Fax: (416) 447-7658; Mail to: Privacy Officer, The Northern Miner, 225 Duncan Mill Road, Suite 320, Toronto, ON M3B 3K9.

BY ALISHA HIYATE

Lessthan a year after the federal government approved the takeover of Neo Lithium by Chi na’s Zijin Mining without a full national secu rity review under the Canada Investment Act, it has signalled an entirely new approach to Chinese invest ment in Canada’s critical minerals sector. The Min ister of Innovation, Science and Industry, FrançoisPhilippe Champagne issued new guidelines on Oct. 28 regarding foreign investment in the sector, which is key to Canada’s competitiveness in a future low-carbon global economy. Had they been in place at the time of the Neo Lithium takeover, which closed in January this year, it’s probable — if not 100% certain — that the deal would have been rejected.

The policy includes guidance on transactions that involve critical min erals assets when the proposed buyer is either a foreign state-owned enter prise (SOE), or assessed as being subject to influence by foreign govern ments – particularly “non-likeminded governments.”

It shuts the door on foreign SOEs acquiring controlling stakes in crit ical mineral assets, and makes clear that deals above a certain threshold, already subject to a net benefit review by the ministry of industry, would now only be approved “on an exceptional basis.”

Investments by SOEs in critical minerals projects at any stage, includ ing greenfield projects, are also subject to a national security review — whether or not they involve a controlling stake. (The review considers factors including the size, scope and location of the Canadian entity; the strategic value of the asset or supply chains involved; and the degree of influence the investment would allow an SOE over the company and sup ply chain.)

Just a few days after this newly assertive policy was released, Minister Champagne ordered three Chinese firms to sell their stakes in three Cana dian juniors, Power Metals, Lithium Chile and Ultra Lithium.

All three juniors have much earlier stage projects than Neo Lithium’s 3Q lithium brine project in Argentina, and it’s not clear why they were flagged on national security grounds over companies with more advanced projects.

Zirjan Derwa, a partner at Bennett Jones with a focus on Canadian com petition law and foreign investment matters, who sees the new approach as a “significant” policy shift, said there was no precedent for the divest ment order.

“Prior to these ordered divestments there hadn’t been a case where a critical mineral asset was ordered to be divested in Canada,” he said in an interview, noting that Shandong Gold Mining’s proposed takeover of TMAC Resources in 2020 was rejected because of the strategic Arctic loca tion of TMAC’s Hope Bay project.

The order caught the affected juniors, which have Chinese ownership ranging from around 5.7% to just under 20%, by surprise.

Lithium Chile, for example, has only counted Chengze Lithium Inter national, which held 19.4% of the company, a shareholder for less than a year. The junior with assets in Argentina and Chile welcomed two new members to its board from Chengxin Lithium Group (Chengze’s parent company) just one day before the divestment order.

While the scope and implementation of the policy is still unclear, Lith ium Chile’s inclusion on the divestment list demonstrates that assets out side of Canada are considered fair game for national security reviews.

The more aggressive stance on who is allowed to invest in the sector is not likely to end with these three companies and could intensify in the future, analysts say.

“While presently limited in scope, we see this announcement as a sig nal of the future landscape for foreign direct investment in Canadian criti cal minerals,” Katie Lachapelle, a mining analyst with Canaccord Genuity, wrote in a Nov. 3 note to clients. “Today’s announcement solidifies Can ada as a jurisdiction where the involvement of the Chinese (and potentially other foreign SOEs) will likely not be permitted to invest whether it be a direct equity investment, minority stake/takeout, etc.”

Sander Grieve, head of the mining team and a partner at Bennett Jones, notes that Canada is a net recipient of foreign direct investment, and as a relatively small economy among the G7, has historically relied on foreign capital to build major projects.

“There appear to be a class of investors that are being cautioned that their investment may not be welcome in Canada at this point,” Grieve said in an interview. “I think the question that industry’s got to have top of mind is if that decision is made by the government that there are certain investors that we don’t want, what will be done to encourage the investors we do want, as we clearly are creating a hole in the Canadian economy for the development of projects?”

On that point, friendly nations could see the red carpet rolled out for them — unlike the cold rejection experienced by China. (A spokesperson for China’s foreign ministry protested that Canada has “overstretched the concept of national security and placed arbitrary curbs on normal trade and investment cooperation between China and Canadian companies,” as reported by the Financial Post.)

However, there is still a question about investment from states other than China, Grieve says.

“There’s been a lot of focus on China in particular in this policy, but it is an SOE policy and there are a lot of SOEs in the broader global economy from various states, so this should be expected to have wider implications for foreign direct investment into Canada and into Canadian companies.”

Lachapelle notes that the new direction could serve to bolster invest ment from countries with similar values and interests.

“We also believe that the Canadian government could play a notable role in investment/financing,” she wrote.

Further announcements related to Canada’s nearly $4-billion Critical Minerals Strategy, unveiled earlier this year, are expected this fall. TNM

Politicians

around the world are focused on growing their national economies. They need to take everything into account; from the secure supply of the necessary raw materials, through the health of the compa nies that will transform this mate rial into fabricated goods, to the cost of the energy that will be con sumed in the process.

The message that comes to mind is “Lock, stock and bar rel,” which is widely used in the U.K. and North America to mean “everything.” The phrase derives from the three constituent parts of a gun, and was first recorded 200 years ago in the letters of the Scot tish poet, novelist and historian Sir Walter Scott (1771-1832). Scott’s phrase would have had imme diate impact as his writing was immensely popular throughout Europe and later North America. Scott’s historical fiction created for the first time a sense of the past as a place where people behaved differently, and his novel Ivanhoe (set in 12th century England and published in 1819) was required reading in many North Ameri can high schools until the end of the 1950s.

“Lock, stock and barrel” reminds us that English grammar is complicated. The phrase can be described as an idiom or (less obviously) a merism.

An idiom (e.g. “hook, line and sinker,” meaning completely or unquestioningly) is an expression whose meaning differs from what the words denote. Idioms should not be confused with metaphors (which evoke an image by use of implicit comparison; e.g. “heart of stone”) or proverbs (which are sayings that express a truth based on common sense; e.g. “better late than never”).

As you will recall from your school days, a merism is a figure of speech that references some thing by using various constitu ents or traits. It is also described as a phrase in which a combina tion of contrasting parts refer to the whole (e.g. “searched high and low,” meaning to look every where).

A merism shouldn’t be mis taken for a metonymy (as if you would), which is a figure of speech where a concept is referred to

Forms of metonymy include metalepsis and polysemy. Meta lepsis is the use of a familiar word in a new context (e.g. “lead foot” may describe a fast driver), while polysemy is a word or phrase with multiple meanings (e.g. “crown” can refer to the object or the insti tution).

Synecdoche is also a type of metonymy, and uses a single part of the object to refer to the whole. For example, “The Pentagon” can be construed as referring to the U.S. Department of Defense and/ or the whole military bureaucracy.

Writing in 1941, American lit erary theorist Kenneth Burke argued that there were four basic rhetorical structures (figures of speech, tropes) by which we make sense of experience. He listed met aphor, metonymy, synecdoche and irony (the surface and under lying meanings are not the same).

All very confusing, and pol iticians can be forgiven for not worrying about their grammar. Instead, they ought to focus on a version of the famous idiom for everything; let’s coin “Rock, stock and barrel” to mean delivery of the whole economic supply chain.

Rather than invoking the mech anism that initiates the firing of a gun, “rock” will remind decision makers to concentrate on secur ing the ore reserves of metals and minerals that will be required to drive our economies forward.

As a reference to corporate equity, rather than the back part of a gun, “stock” will help deci sion makers concentrate on what is required to facilitate the com panies that will mine, process and fabricate these raw materials.

As a measure for oil, rather than the shooting tube of a gun, “bar rel” will remind decision makers to concentrate on what is required for the delivery of energy supplies in a timely and cost-effective man ner.

It is up to us to remind politi cians everywhere; it’s the econ omy, stupid, so remember the miner’s idiom. TNM

—Dr. Chris Hinde is a mining engineer and the director of Pick and Pen Ltd., a U.K.-based consulting firm. He previously worked for S&P Global Market Intelligence’s Metals and Mining division.

Industry groups welcome $10B in Ottawa’s budget update, efforts to speed permitting

GREEN

ENERGY

| Move seen as a response to recent U.S. incentives

BY COLIN MCCLELLAND

Canada’s major mining indus try group and a green ener gy think tank are welcom ing nearly $10 billion spread over tax credits for clean technology, mining project approval improve ments, innovation research and industry training announced in a federal budget update.

Ottawa is offering $6.7 billion in tax credits over five years for up to 30% of investments in clean technologies such as battery stor age, electric industrial vehicles and small nuclear reactors, accord ing to the Liberal government’s fall economic statement issued on Nov. 3.

It also gives $1.3 billion over six years to several federal depart ments, including the Impact Assessment Agency, to speed the project approvals process; $962.2 million over eight years to mod ernize the National Research Council; and $802.1 million over three years for the Youth Employ ment and Skills Strategy.

“This investment tax credit will serve to benefit Canada’s min ing industry in several ways as the deployment of zero emission vehicles and non-green-house gas emission solutions is accelerating across our sector,” Pierre Grat ton, president and chief executive officer of the Mining Association of Canada, said in a news release.

“This tax credit will support our sector in accomplishing its climate action priorities.”

Mark Zacharias, executive director at Vancouver-based Clean Energy Canada, a research group at Simon Fraser Univer sity, said the tax credit was a suit able response to the United States boosting its own clean energy industries with US$1.7 billion in incentives in recent legislation by the Biden administration.

“Canada simply had to respond,” Zacharias said in a state ment after the budget update. “It’s a recognition of a global reality in which our largest trading partners are mapping out their clean indus trial futures and planting flags.”

Canada is among the Western nations trying to boost and pro tect the critical mineral industries it needs for a transition to clean energy that is estimated to cost trillions of dollars globally. Ottawa announced a national critical min erals strategy in April, which it plans to update by year’s end, and toughened foreign investment rules last month. This week it ordered three companies based in China, which controls some 80% of rare earth elements in global markets, to divest from Canadian projects.

Federal Natural Resources Min ister Jonathan Wilkinson had said on Oct. 25 that Canada would respond to the U.S. tax incen tives in its Inflation Reduction Act. Wilkinson, who served on the board of Hydrogen and Fuel Cells Canada, also spoke about the need to promote the hydrogen fuel industry in Canada.

Zacharias and Gratton welcomed the budget update’s increase to 40% of a previously announced invest ment tax credit for clean hydrogen.

Wilkinson and provincial coun terparts such as Ontario Mines

Minister George Pirie have said how Canada must cut its mining approval times. Gratton criticized the federal Impact Assessment Agency for an “unsatisfactory job” reviewing projects.

“It is imperative that more knowledgeable subject-matter ex perts, rather than just more staff, be hired,” Gratton said. “Canada has had tremendous success at tracting new investment into the battery value chain on the prom ise of a reliable supply of battery materials, and now we have to de liver.”

Zacharias said Ottawa’s increased clarity on its policies to foster clean energy innovation and improve training are needed to improve Can ada’s competitiveness.

“The idea that climate action is also economic action has never been truer,” Zacharias said. “We’ve had climate plans with economic benefits. This is economic plan ning with climate benefits.” TNM

Lithium Americas to split into two companies

CORPORATE MATTERS | New entities to focus on North American, Argentine assets

BY COLIN MCCLELLAND

Lithium Americas (TSX: LAC; NYSE: LAC) plans to separate its North American and Ar gentine businesses into two inde pendent public companies by the end of the year, it said on Nov. 3.

The new Lithium Americas company will own the Thacker Pass lithium project in Nevada and investments in Green Tech nology Metals (ASX: GT1) and Ascend Elements, according to a company statement. Lithium Americas’ president and chief executive officer, Jonathan Evans, will stay in that position for the new company.

The other new company, Lith ium International, will focus on the Argentine assets, the parent company said in the news release. These include the 44.8% inter est in the Caucharí-Olaroz lith ium brine project in Jujuy, which is advancing towards first produc tion; the full interest in the Pas tos Grandes lithium brine project in Salta, and the 17% investment in Arena Minerals (TSXV: AN). The CEO of Lithium International wasn’t named.

“Separating the North Ameri can and Argentine businesses will facilitate unlocking the full poten tial of their significant asset base to deliver maximum value to our shareholders and other stakehold ers,” Evans said in the release. “Upon completion of the separa tion, Lithium Americas sharehold ers will retain ownership in two leading lithium businesses.”

Demand for lithium is soar ing as companies try to secure sources of the element for electric vehicle batteries, mobile phones and other modern technology to lower emissions. Tech giant Tesla faces increased competition for

the metal as traditional car compa nies switch over to electric vehicle production. Western nations are promoting and protecting domes tic lithium producers, and other mineral industries deemed critical, from control by countries such as China and Russia.

According to the separation plan, each shareholder is to keep its proportionate interest in shares of the parent company, which would become Lithium Interna tional, and receive newly issued stock of Lithium Americas in pro portion to its then-current owner ship of the parent company.

The separation still needs approvals from the board, share holders, stock exchanges and the Canada Revenue agency, among others, the company said.

Thacker Pass is moving towards production with all of the required federal and state permits having been secured to start construction. However, the project has encoun tered opposition from environ mental and Indigenous groups as well as a local rancher who are challenging its permits. Lithium Americas expects a ruling on the group’s appeal of the record of decision early next year.

The company is planning for the open pit project’s production capacity to reach 60,000 tonnes per year of battery-grade lithium car

bonate over a 46-year mine life, according to a 2018 prefeasibil ity study. Measured and indicated resources at Thacker Pass total 385 million tonnes averaging 2,917 parts per million (ppm) lithium for 6 million tonnes of lithium car bonate equivalent (LCE). Inferred resources come to 147 million tonnes averaging 2,932 ppm for 2.3 million tonnes of LCE.

Lithium International intends to bring lithium carbonate output at Caucharí-Olaroz to 40,000 tonnes per year in the first half of 2023 before a 20,000-tonne-per-year expansion at the site. The mine life is projected at 40 years. The project has proven and probable reserves of 3.6 million tonnes of LCE grad ing 607 mg lithium per litre in 1.1 billion cubic metres brine for 682,920 tonnes contained metal.

The Argentine unit is also work ing to advance Pastos Grandes and a collaboration with Arena Min erals, the company said. Pastos Grandes has proven and probable reserves of 943,000 tonnes LCE grading 439 mg lithium per litre in 734,000 cubic metres brine for 177,000 tonnes contained metal.

Shares in Lithium Americas rose 7% in Toronto on Nov. 4 to $35.89, valuing the company at $4.8 bil lion. The company’s shares have traded within a 52-week range of $24.65 to $53.09. TNM

Canadian Club president Joseph Lo, left, with Federal Natural Resources Minister Jonathan Wilkinson at the Royal York hotel in Toronto, on Oct. 25. COLIN MCCLELLAND

The Thacker Pass lithium project in Nevada. LITHIUM AMERICAS

Top gold assays for the week of Oct 28-Nov 4

BY COLIN MCCLELLAND

Our TNM Drill Down feature highlights the top gold assays of the past week.

Drill holes are ranked by gold grade x width, as identified by our sister company Mining Intelligence (www.miningintelligence.com).

TNM DRILL DOWN

Top gold assays of the week

1 Donlin United States Barrick Gold (TSX: ABX)/ DC22-2068 117.5 42.3 30.68 1297 Novagold Res. (TSX: NG)

2 Granite Creek United States i-80 Gold (TSX: IAU) iGU22-47 295.9 17.7 28.20 499

3 Treaty Creek Canada Tudor Gold (TSXV: TUD) GS-22-158 793.5 592.5 0.73 433

Donlin

Gold LLC, the equal partnership in Alaska of Barrick Gold (TSX: ABX; NYSE: GOLD) and NovaGold Resources (TSX: NG; NYSE: NG), had the top-rated assays of the past week followed by i-80 Gold (TSX: IAU; US-OTC: IAUCF) at Granite Creek in Nevada and Tudor Gold (TSXV: TUD) in British Columbia.

Drill hole DC22-2068 at the Don lin project in southwest Alaska cut 42.3 metres grading 30.68 grams gold per tonne (starting at 117.5 metres depth) for a grade x width of 1,297. It included a sub-interval of 23.16 metres grading 54.22 grams gold per tonne.

Greg Lang, NovaGold president and CEO, called the hole “one of the most significant intercepts in terms of grade-thickness ever reported at the Donlin gold project.”

Donlin reported results from about half of this year’s 141-hole drill program of 42,331 metres. Final assays are due in early 2023.

The Donlin project, one of the world’s largest and highest grade gold projects, would extract 30 mil lion oz. gold over the 27-year mine life with sustaining costs of US$1.7 billion. Proven and probable

4 Jerritt Canyon United States First Majestic Silver (TSX: FR) SMI-D10-EXP22-1076 239.9 20.9 19.97 417

5 Murchison Australia Meeka Metals (ASX: MEK) 22SARC005* 172.0 4.0 87.50 350

6 Silverstrike Bolivia New Pacific Metals (TSX: NUAG) DSSk0002 8.6 223.5 0.97 217

7 Los Ricos South Mexico GoGold Resources (TSX: GGD) LRGAG-22-035 69.0 110.6 1.64 181

8 New Luika Tanzania Shanta Gold (LSE: SHG) CSR637* 7.0 11.0 15.35 169

9 Bendigo-Ophir New Zealand Santana Minerals (ASX: SMI) MDD079 168.0 22.0 7.40 163

10 Hualilan Argentina Challenger Exploration (ASX: CEL) GNDD684 209.0 65.3 2.30 150

All data supplied by Mining Intelligence for the period of Oct. 28 — Nov. 4, 2022 for public companies from exploration stage to production. * indicates reverse circulation; otherwise all holes are diamond drill holes. Reported lengths are not necessarily true widths. Only the best hole per property is shown.

reserves are 504.8 million tonnes grading 2.09 grams gold per tonne for 33.8 million ounces.

The partnership is working towards preparing an updated fea sibility study and a development decision, it said last month in its third-quarter results.

However, the project, located 450 km northwest of Anchorage, faces opposition from Indigenous peo ples over concerns about potential mercury and cyanide pollution of the Kuskokwim River. A state hear ing review of clean water permits granted to the project is expected to

last six months, Donlin said. Second for the week was drill ing in the Ogee zone at i-80 Gold’s Granite Creek project about 320 km northeast of Reno, NV.

Hole iGU22-47 cut 17.8 metres grading 28.2 grams gold per tonne for a grade x width of 499. Hole iGU22-43B returned 7 metres of 10.7 grams gold.

“Drilling in the Ogee Zone con tinues to intercept impressive high-grade mineralization over substantial widths,” senior geolo gist Tyler Hill said in a news release. “The Ogee and South Pacific zones

remain open at depth, providing substantial upside.”

A preliminary economic assess ment released last November envi sioned output of 1.2 million oz. gold over a nine-year mine life at an all-in sustaining cost of US$963.40 per oz.

Completing the top three of the week is hole GS-22-158 at Tudor Gold’s Treaty Creek in northwest ern B.C. It cut 592.5 metres grad ing 0.73 gram gold per tonne for a grade x width of 433.

“This hole confirms the consis tency of mineralization throughout the porphyry system and that no

boundary on the northern side of the system has been encountered,” Tudor said in a release. “Future exploration will target the north erly extension of this system.”

The project, 12 km east of the past-producing Eskay Creek gold mine, has measured and indicated resources of 815.7 million tonnes at 0.66 gram gold per tonne, 3.6 grams silver and 0.06% copper for 17.3 million oz. contained gold and 93.4 million oz. contained sil ver. Tudor says it is one of the larg est gold discoveries in the last 30 years.

Pan American, Agnico Eagle clinch Yamana deal

M&A | New US$4.8B offer will keep Canadian Malartic gold mine in Canadian hands

BY CECILIA JAMASMIE AND COLIN MCCLELLAND

Pan American Silver (TSX: PAAS; NASDAQ: PAAS) and Agnico Eagle Mines (TSX: AEM; NYSE: AEM) have won Ya mana Gold’s (TSX: YRI; NYSE: AUY) support for their rival offer for the gold miner, after Gold Fields’ (NYSE: GFI; JSE: GFI) waived its right to match the bid.

The new cash-and-stock offer valued at about US$4.8 billion sur passes Gold Fields’ bid, which was worth US$6.7 billion when it was originally made in May.

Gold Fields’ initial all-stock offer valued the target at US$5 billion (C$6.8 billion), but a decline of the

miner’s share price driven by inves tor disappointment at the deal and weaker gold prices brought the deal value down to about US$4.2 billion as of markets closing on Nov. 3.

Pan American and Agnico announced their bid on Nov. 4.

Yamana’s board now unani mously recommends shareholders to reject the Gold Fields takeover at a vote scheduled for Nov. 21.

Gold Fields responded to Yama na’s change in recommendation on Nov. 8 by saying it was disap pointed by the outcome.

“We continue to believe that the transaction was a financially and strategically superior offer for shareholders of both Gold Fields and Yamana,” it said.

The Johannesburg-based miner added it was terminating its arrangement agreement with Yamana, which will have to pay a $300 million break fee to Gold Fields for walking out of their deal within two business days.

Agnico and Pan American’s rival stock and cash deal proposes to split Yamana’s assets in Latin America and Canada between them.

The Gold Fields-Yamana trans action would have created the world’s fourth-largest gold miner, surpassing Agnico Eagle.

With the acquisition of Yamana Gold, Pan American will strengthen its position as a top precious metals producer in Latin America, while Agnico Eagle would consolidate

its ownership of one of the world’s biggest gold mines, the Canadian Malartic in Quebec.

‘Clear synergies’

The new offer would see Pan Amer ican and Agnico Eagle acquire all the issued and outstanding com mon shares of Yamana. It would sell certain interests in its Canadian assets to Agnico Eagle, including a stake in the Canadian Malartic gold mine it doesn’t already own, keep ing it in Canadian hands.

from the combined portfolio of 12 operations in the region, based on the companies’ guidance this year.

The deal would give Yamana shareholders US$1.0406 plus 0.0376 share in Agnico Eagle, and 0.1598 share in Pan American for each share of Yamana held. The binding offer is not subject to financing con ditions or additional due diligence. The cash part of the deal is about $1 billion.

NOTICE is hereby given that on October 31, 2022 the Supreme Court of British Columbia issued an initial order pursuant to the CCAA in respect of Pure Gold Mining Inc. (the “Petitioner”) declaring the Petitioner to be a company to which the CCAA applies (the “CCAA Proceedings”).

KSV Restructuring Inc. (“KSV”) has been appointed as the Monitor in the CCAA Proceedings. Information regarding the CCAA Proceedings is available on the Monitor’s website at https://www.ksvadvisory.com/insolvency-cases/case/pure-gold and may also be obtained from Christian Vit of KSV at cvit@ksvadvisory.com or 647-848-1350.

DATED at Toronto, Ontario this Monday, 14th day of November, 2022.

KSV RESTRUCTURING INC.

MONITOR

150 King Street West, Suite 2308 Toronto, Ontario M5H 1J9

That offer has “clear operational synergies” for Agnico Eagle, ana lysts at Berenberg said in a note on Nov. 4.

“Yamana shareholders are likely to be attracted to the cash element of the deal, alongside the offering of Agnico-Eagle shares,” they said.

Pan American would take over four of Yamana’s mines, according to the new offer, making it a major precious metals producer in Latin America. It would be producing almost 30 million oz. of silver and about 1.1 million oz. of gold per year

Agnico Eagle bought Kirkland Lake Gold for US$11 billion last year and Pan American bought Tahoe Resources for almost US$1.1 billion in 2019.

A major shareholder in Gold Fields, Redwheel Capital, described the company’s offer to buy Yamana as a “major error” in a letter to the board that the investor published on Nov. 3.

Walking away from the deal could impact Gold Fields’ long-term growth outlook. The miner faced investor criticism for the 33.8% pre mium it offered when its US$6.7-bil lion bid was announced. TNM

COURT FILE NO. S-228723 IN THE SUPREME COURT OF BRITISH COLUMBIA IN THE MATTER OF THE COMPANIES’ CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36, AS AMENDED (“CCAA”) AND IN THE MATTER OF PURE GOLD MINING INC. PETITIONER NOTICE PURSUANT TO THE CCAA (Section 23 (1)(a))

RANK PROPERTY COUNTRY OWNER

DRILL HOLE DEPTH WIDTH GRADE WIDTH ID FROM (m) (m) (G/T GOLD) X GRADE

Yamana Gold’s Yamana Minera project in Chile. YAMANA GOLD

Americas Gold and Silver eyes extending decades-old Galena mine life as discoveries keep coming

BY BLAIR MCBRIDE

Driving through the forest ed hills of northern Idaho, one could be forgiven for assuming the growing recreational city of Coeur d’Alene brings all the buzz and value to the region.

After all, it offers year-round recreational activities in stunning natural landscapes, serves as a com mercial hub for the northern part of the state, and its adjacent Lake Coeur d’Alene hosts shoreline homes for a few Hollywood A-listers.

However, decades before the celebrities showed up, its own Silver Valley — just east of Coeur d’Alene — hosted numerous mines that pro duced millions of tons ore contain ing gold, lead, zinc and silver.

And if past exploration trends at Americas Gold and Silver (TSX: USA; NYSE-AM: USAS)’s Galena Complex mine are any guide, it could have many more years of production ahead of it.

The mine primarily produces the lead sulphide mineral galena, from which silver is eventually extracted in the purification process.

The Toronto-headquartered company also has its 100%-owned, producing Cosalá operations in Sinaloa state, Mexico, where it mines copper, lead and zinc con centrates. Its Relief Canyon gold project in Nevada is under devel opment and the San Felipe sil ver-zinc-lead project, located in Mexico’s northwestern Sonora state is under care and mainte nance. rocess.

Six decades of production “We’ve carried five years of mine life for the last 40 years,” said chief geologist Sadae Lortz during a recent visit. “There are so many areas we haven’t touched and we have a large land package.”

Even in this quiet corner of the Silver Valley, Galena is in a busy mining neighbourhood. About 30 km to the north is Idaho Strate gic Resources’ (NYSE: IDR) pro ducing Golden Chest mine and about 15 km down the Interstate 90 highway is Hecla Mining’s (NYSE: HL) producing Lucky Friday silver mine. Bunker Hill Mining (CSE: BNKR; US-OTC: BHLL) is also working on the outskirts of Kellogg to restart its historically important namesake mine.

Located just a short drive south of the I-90, silver deposits were first dis covered at Galena in the late 1800s. From 1953 until August of this year it has produced 238 million oz. of silver, 72 million tons of copper and 63 million tons of lead, according to figures provided by Lortz.

Silver-lead to silver-copper

In 2021, total ore production came to 132,250 tons, for a weekly output of 11,020 tons. Just over 1 million oz. of silver at 7.91 oz. per ton was produced, and 18.7 million lb. of lead at a grade of 7.6%.

The current monthly mine plan targets the operation averaging 11,000 tons of silver-lead ore at a grade of 15-20 oz. per ton, with the onsite mill’s throughput at 700 tons per day. Lortz said the operation isn’t currently running at its max imum capacity.

Galena shifted from mainly min ing silver-copper to silver-lead in 2016, Lortz said. Its nearby Galena mill processes the ore that is then sent to Teck Resources (TSX: TECK.A/TECK.B; NYSE: TECK)’s refinery in Trail, B.C. The company hopes that its Coeur mill, which has been on care and maintenance since

2015, will eventually be restarted.

“Our hopes are that we can… segregate the silver-lead and sil ver-copper ore and send silver-cop per to Coeur, and from there to a smelter in Quebec,” said Lortz. “[But] we don’t have enough sil ver-copper now to send it there. This is dependent on exploration success and added development.” .

New stopes are currently being extended, and at the 3,200-ft. level The Northern Miner observed slushing work in a stope that was recently blasted through the Upper Country Silver-Lead zone. The sul phur-tinged odour from the explo sives was still hanging in the air.

2019 turnaround plan

Galena only reached its current output a few years ago. Explora tion and development was under funded for many years, Lortz said, with fleets of old equipment inter rupting production. The hoist was decommissioned in 2018, leading to bottlenecks in moving muck and supplies through its No. 3 Shaft.

Things began to turn around in 2019 when Americas Gold and Sil ver launched an improvement plan. Aging equipment was upgraded. It entered a 60/40 joint venture with financier Eric Sprott, and the joint-venture pledged up to US$20 million to fund capital improve ments and operations.

In 2020, the company started an 18-month exploration and defi nition drill program consisting of 118,000 ft. of drilling and it has sur passed its targeted silver ounces by 80%, adding 59.4 million oz. across the proven and probable reserves, and measured and indicated and inferred resources.

A second, ongoing exploration phase has completed 73,000 ft. of drilling to date and is scheduled to wrap up in December.

As a result of the improvement plan, proven and probable reserves at Galena went from 12.4 million oz. of silver in 2019, to 12 million in 2020, before rising to 16.6 mil lion oz. in 2021. Its current reserves are at 12.5 million oz. for 980,000 tons of ore grading at 397 grams silver per ton, according to a June 30 resource statement.

Measured and indicated resources also grew from 27.4 million oz. in 2019, to 37.3 million oz. in 2020, 64.2 million oz. in 2021 and 77.3 million oz. in 2022.

Significant among those discov eries was the silver-copper extension of the Silver Vein that extends from 2,400 feet down to 5,500 feet. That extension comprises 1,010 feet of 5.4 million oz. silver in proven and probable reserves contained within 111,802 tons grading 44.72 grams silver per ton.

Observing a diamond drill rig working a tunnel face on the ground level during the site visit, Lortz noted how significant it could be if assay results from that spot show the underlying deposits are economic.

“We could just portal right in from the parking lot,” she said. “It would be so much cheaper.”

Increasing mine life Americas Gold and Silver has ambi tious targets for Galena, includ ing increasing silver production to more than 2.5 million oz. per year for 2023 and beyond, and dou bling that production by the end of 2027. It also aims at increasing its reserves and mine life past 2030.

Lortz said the company is opti mistic its new hoist can be installed by the end of the fourth quarter of this year, and getting that opera

tional will be necessary if silver pro duction is to be doubled. But the global inflationary environment has raised costs for materials and services, and the capital costs for the new hoist have jumped by about US$2.2 million to US$8.9 million. She estimates that operations and drilling costs have also gone up by 12% and 15%, respectively.

And even though Galena makes do with its workforce of 250 people, there is still a labour shortage.

“We used to receive stacks of applications but lately we’re at least 20 people short. It’s been that way for the last two years,” Lortz said. “With a full staff, operations would run more efficiently, but we still make do. The labour shortage is not unique to the Galena mine.”

But in the long history of the Sil ver Valley, Galena might still prove to be a solid route to its glittery resources.

“Our deepest resource is cur rently 6,400 feet below the surface and is open at depth,” Lortz said. “We have only tested about 20% of our 68 reported veins to depth. There is great potential for expan sion.” TNM

SITE VISIT | Company aims to double silver production by end of 2027

Chief geologist Sadae Lortz. PHOTO COURTESY OF SADAE LORTZ

as traditional automakers are ramping up their EV offerings.

Tesla is building a lithium refin ery in Texas and had considering buying mineral claims.

U.S. President Joe Biden has required domestic automakers to use non-Chinese minerals for their electric vehicles in order for consumers to qualify for gov ernment price subsidies, further spurring calls of critical mineral production in Western countries.

The issue of national control of resources has become more acute since the Russian invasion of Ukraine in February high lighted Europe’s dependence on imported energy. But it’s not the first time Ottawa has blocked Chinese investment.

In late 2020, the Canadian gov ernment rejected state-owned miner Shandong Gold Mining’s $150-million bid to buy TMAC Resources, now owned by Agnico Eagle Mines (TSX: AEM; NYSE: AEM), and its Doris gold mine in Nunavut, following a national security review.

The critical minerals strategy from April will be updated by year’s end with funding catego ries, Wilkinson said in an inter view with The Northern Miner on Oct. 25. The fine tuning will help future talks between Ottawa and the provinces and territories, regarding areas such as Ontario’s Ring of Fire, he said.

“There will be money for infra structure, money potentially for investment in projects them selves, for additional geological work,” Wilkinson said. “There will be a number of different pockets of money and we will draw out of those what is required for specific projects.” TNM

mislead regulators in order to avoid more robust environmental pub lic review processes. This conduct is shameful and likely criminal,” added Chair Napolitano.

Meanwhile, Thiessen defended the organization and its Pebble L.P. subsidiary, saying they had been consistent in their disclosure for over a decade. The company had, from the outset, guided the ini tial permit would cover the first 20-year mine plan.

Given the world-class size of the Pebble resource, the company stressed it had been saying all along that any additional work, exten sion or expansion would require the same level of extensive permitting, planning and approvals as the initial phase before it could be undertaken.

“For anyone to conclude that anything materially different from what was in our proposed mine plan could be built and operated with out an entirely new permit approval process fundamentally fails to understand how the permitting pro cess works in the U.S.,” he said.

“The T&I committee is play ing a risky, short-sighted politi cal game in D.C., with a misguided goal of inhibiting domestic mining. According to Thiessen, the current administration’s persistent oppo sition to mining and mine devel opment in the U.S. is bad for local economic development in Alaska, bad for the energy transition and for the vast majority of the U.S. popula tion,” according to Thiessen.

Mired in controversy

Opponents and supporters of North ern Dynasty’s long-stalled project are putting pressure on the EPA to decide on the proposed mine.

Alaska Natives, conservationists and commercial fishermen seem

confident the EPA will announce a final ban on disposing mining waste near Bristol Bay, where the project is located, effectively kill ing the copper and gold mine esti mated to be worth US$350 billion.

Northern Dynasty recently said two letters supporting the proj ect had been submitted to the EPA in September. One by the state of Alaska and the other one signed by a total of 14 states, including Alaska, Kentucky, Louisiana, South Carolina, Texas, Utah, West Vir ginia and Wyoming.

“[EPA’s attempt to block Peb ble] diminishes the importance of resource development to Alaska and its people. It also disregards the State’s ability to — and history of — ensuring protection of its own fish ery resources through the State’s permitting system,” the Alaska government statement reads.

The document calls the EPA’s

move an “unprecedented abuse of its perceived authority” and warns about its implications for the future.

“If finalized… it would impose a blanket prohibition on all future, similar mining projects over a 309-square-mile area, which is 23 times the size of the proposed proj ect footprint and comprises lands owned by the State of Alaska. This veto sets a dangerous precedent,” the letter reads.

The Pebble project has been pur sued for more than a decade and faced environmental opposition from the onset. Its development has been surrounded by contro versy and delays, including the EPA’s decision in 2014 to propose restricting the discharge of min ing waste and other material in the Bristol Bay area, home to one of the world’s largest salmon fisheries.

Building the Pebble gold mine in southwest Alaska would include

the construction of a 270-mega watt power plant and 165-mile natural-gas pipeline, as well as an 82-mile-long road and large ponds for the tailings. It would also require dredging a port at Iliamna Bay.

If built, it would be the largest mine in North America. The cur rent resource estimate includes 6.5 billion measured and indicated tonnes grading 0.4% copper, 0.34 gram gold per tonne, 240 parts per million (ppm) molybdenum, 1.7 grams silver and 0.41 ppm rhenium for 57 billion lb. copper, 71 million oz. gold, 3.4 billion lb. molybde num, 345 million oz. silver and 2.6 million kg. rhenium.

The deposit also holds 4.5 billion tonnes in the inferred category at lower grades.

Northern Dynasty’s Toron to-quoted equity is down 39% over the 12 months at 33¢, giving it a market cap of $172 million. TNM

Frontier Lithium aspires to become Canada’s ‘lithium champion’

BY HENRY LAZENBY

Witha project focused on one of the hottest com modities tied to mass adoption of EVs, Frontier Lithi um (TSXV: FL; US-OTC: LITOF) is working towards completing a resource update and prefeasibility study for its PAK project in north western Ontario by the first quarter of 2023.

The prospective lithium pegma tite project is 170 km north of the famed Red Lake gold camp in an emerging lithium mineral district in the Canadian Shield dubbed the ‘Electric Avenue.’

Having already outlined one of the largest and highest grade spodu mene resources in North Amer ica, the project has the potential to transform Frontier into Cana da’s ‘lithium champion,’ as signif icant investor (owning a 20% plus stake), president and CEO Trevor Walker tells The Northern Miner in an interview.

The company’s exploration effort have traced the deposit over a strike length of 500 metres and to a depth of 300 metres, with the actual width varying between 10 and 125 metres.

In March, the company reported a resource update, quadrupling the indicated resource at Spark to 14.4 million tonnes grading 1.4% lithium oxide, up from the previously esti mated 3.3 million tonnes grading 1.59%, after the company conducted two drill programs last year cover ing 3,269 metres. Spark also hosts an inferred resource of 18.1 million tonnes grading 1.37% lithium oxide (the current average global resource grade).

Frontier is currently completing delineation and infill drilling, with two drill rigs deployed to the Spark deposit. The company has com pleted 11,150 metres of drilling in 34 holes as of Sept. 11.

The junior’s exploration pro gram continues to report drill inter cepts that rank among the widest and highest-grade globally. On Oct. 11, it said that results from another four holes demonstrated grades well above the current mineral resource estimate of 1.38% lithium oxide.

The Oct. 11 results averaged 1.57%, 1.92%, 1.74%, and 1.55% lith ium oxide over significant widths ranging from 124.1 to 326.6 metres.

“We continue to cut long inter vals of high-grade lithium in infill drilling on the Spark pegmatite,” Walker says. “The current drill campaign is focused on upgrading inferred open-pittable resources at Spark as we work towards complet ing the prefeasibility study.”

As with previous results released in July, some holes ended in peg matite. As the current two-drill rig program is focused on the central portion of Spark at depth while the company prepares the upcoming prefeasibility study, Frontier plans to extend those holes later.

The project has a measured and indicated resource of 21.64 million tonnes averaging 1.56% lithium oxide and an inferred resource of 20.87 million tonnes averaging

1.42% lithium oxide. The deposit remains open at depth and along the strike.

In addition to the PAK deposit, the project also hosts the Spark deposit, estimated to contain 14.4 million indicated tonnes at 1.4% lithium oxide and 18.1 million inferred tonnes at 1.37% lithium oxide. Two other pegmatite occur rences — Bold and Pennock — have been found in the area. Channel sampling returned 1.51% and 1.96% lithium oxide, respectively.

In a note to clients, Canaccord Genuity Capital Markets min ing analyst Katie Lachapelle said Frontier’s high-grade hits point to a higher overall indicated grade when the company updates the resource early next year.

She also expects inferred re sources will grow, with drilling in dicating that the Spark deposit is still open in all directions.

Management’s focus has now shifted to defining the limits of the pegmatite and deepening some ini tial holes (from earlier in the pro gram).

Based on the consistency of infill drilling to date, Lachapelle said she expects the majority of Frontier’s existing mineral resource at Spark to be upgraded and included in the mine plan in the future, which could result in a mine life extension of about 14 to 18 years. The analyst only includes 18 million tonnes of the current resource in her mine plan at a 1million tonne per year processing capacity.

Phased approach

In response to a tight lithium mar

ket and positive outlook for the energy metal, Frontier plans to accelerate production via a phased approach. Initially, it plans to sell spodumene concentrate from a mine and mill operation, followed by a second phase of expanded pro duction to produce lithium chem icals.

The phased approach will be reflected in the upcoming prefeasi bility study, Walker says.

In February 2021, Frontier released a preliminary economic

assessment for PAK, forecasting a 26-year mine life with the potential to establish a hydrometallurgical chemical plant at an unidentified port in the Great Lakes.

At an 8% discount rate, the study projected PAK would gen erate a post-tax net present value of US$974 million and an inter nal rate of return of 21% using a base price of US$13,500 per tonne of lithium hydroxide. The study envisioned an initial capital cost of US$685 million, a strip ratio of 3.6 to 1 and an average annual pro duction of 23,174 tonnes of lithium hydroxide.

“There’s a significant upside to the project, given the rising demand for lithium and the record price levels of US$70,000-plus per tonne for certain lithium prod ucts,” said Walker.

Frontier’s PAK property is one of Canada’s more advanced lith ium projects. Last May, it received $363,000 in funding from the Ontario government to help the company demonstrate its lithium extraction process through a pilot project.

NATURAL RESOURCES

Five months later, the com pany said that the pilot produced battery-quality lithium hydrox ide monohydrate from the PAK deposit.

Earlier this year, Frontier con cluded a pilot-scale campaign to produce 500 kg of spodumene con centrate that will be used to pilot a hydrometallurgical conversion pro cess. It used a 7,800-kg sample of composite material from the Spark (89%) and PAK (11%) deposits.

It averaged 1.57% lithium oxide and 0.8% iron oxide. The Spark material is fine-grained, necessitat ing desliming, magnetic separation and gravity concentration before flotation.

Late in October, Frontier announced a $20-million bought deal financing to be underwritten by a syndicate led by RBC Capital Markets and Goldman Sachs.

“Canada has never seen Goldman Sachs come in on a small financing like this. So that speaks to the impor tance of the project and the strategic nature of the asset in the Great Lakes region,” Walker said.

It further highlights the impor tance of building the local supply chains with PAK positioned in the Great Lakes region of North America, close to the northern U.S. and southern Ontario, which are vital manufacturing hubs on the continent.

The executive complains the enterprise is undervalued com pared to pegmatite competitors in Australia.

“We’re really about a quarter of the in-situ resource values. We see tremendous upside for our com pany. Frontier is Canada’s lithium champion controlled out of North America by local hands,” Walker said.

Despite coming off its recent high of $3.89, at $1.99, the compa ny’s shares are still up 59% over the past 12 months. It has a market cap of $422.5 million. TNM

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

CRITICAL MINERALS | PAK project in Ontario’s ‘Electric Avenue’ headed for prefeasibility study in Q1

Frontier Lithium president and CEO Trevor Walker looking over a channel at the Spark deposit. FRONTIER LITHIUM

“THERE’S

TREVOR WALKER, PRESIDENT AND CEO, FRONTIER LITHIUM

Ontario Mines Minister Pirie targets red tape for Ring of Fire

BY COLIN MCCLELLAND

Ontario Mines Minister George Pirie, a 35-year min ing industry veteran before his election in June, says he plans to consider cutting project red tape “fairly shortly” while encouraging more federal investment in the Ring of Fire.

Pirie, who served as head of Placer Dome Canada in the years before its acquisition by Barrick Gold (TSX: ABX; NYSE: GOLD) in 2006, says Ontario has potential to displace the foreign output of some minerals needed in the multi-tril lion-dollar global transition to clean energy. But projects can’t take 12 to 15 years for approval.

“A big part of what we’re doing is looking at the red tape that’s inher ent in our system,” Pirie said in a recent interview. “We’ll be talking about that fairly shortly.”

Pirie declined to elaborate on tim ing or details, but a ministry spokes man said Pirie is “hopeful” about federal Natural Resources Minis ter Jonathan Wilkinson suggesting recently that provincial and federal project approvals processes should run simultaneously to save time. Ottawa and the provinces and terri tories are starting meetings soon to hammer out mining policies.

At stake for Ontario is the devel opment of the Ring of Fire, 540 km northeast of Thunder Bay. Estimates of its economic potential vary wildly and depend on basic infrastructure being developed, but the potential is real and Pirie suggests it could be worth up to $1 trillion.

The province wants to develop the area to feed southern Ontario manufacturing hubs with miner als such as lithium, cobalt, copper and nickel needed for electric vehi cle batteries and other industries in renewable energy.

The area’s most advanced proj ect is Ring of Fire Metals’ Eagle’s Nest. According to a 2012 fea sibility study, it has an 11-year mine life and an estimated cost of US$609 million. Proven and proba ble reserves are 11.1 million tonnes grading 1.68% nickel, 0.87% cop per, 0.87 gram platinum per tonne, 3.09 grams palladium and 0.18 gram gold.

“The Ontario government’s agenda is all about decarboniz

ing the economy,” the minister said. “There have been billions of dollars in projects that have been announced in southern Ontario in the battery minerals sector. We’ve got minerals in northern Ontario and Ring of Fire is a big part of it.”

South Korea’s LG Energy Solu tion is involved in several projects, including with automaker Stellantis (NYSE: STLA) on a $5 billion elec tric vehicle battery plant in Wind sor, and buying cobalt from Electra Battery Materials’ (CVE: ELBM) refinery at Temiskaming Shores.

Despite all the talk about billions of dollars in play from the Ring of Fire, developing in the remote muskeg-filled James Bay Lowlands remains extremely difficult. There are no all-season roads and com munities are served by airfields.

U.S.-based Cleveland-Cliffs (NYSE: CLF) pulled out of the area in 2013 despite having already spent half a billion dollars to advance chromite deposits there.

Infrastructure hasn’t progressed much in the decade since, even though giant BHP (NYSE: BHP; LSE: BHP; ASX: BHP) and Ring

of Fire Metals (then called Wyloo Metals) fought for assets.

“The Ring of Fire could be worth millions of billions, or nothing,” Patrick Ryan, who runs the Min ing for Facts consultancy, said by email. “BHP and Wyloo came in and excited everyone. However, no other major mining compa nies touched it and BHP bailed out of a trillion-dollar return? So, in my book it’s a flyer and Wyloo bought it relatively cheap with lots of promises.”

Federal partner Ottawa announced a $3.8-bil lion critical minerals strategy in

April, though it remains unclear how much of it will be directed to Ontario and its Ring of Fire area, Pirie said.

“It would be great if we had an equal partner in the federal gov ernment,” Pirie said. “The respon sibility for the Indigenous people is federal. The province is responsi ble for the resources in the ground. From my point of view, the federal government has got to have a big portion of what’s happening in the Ring of Fire.”

Pirie, Ontario’s first dedicated mines minister in more than half a century after the portfolio had con tained northern development, nat

ural resources and forestry over the years, said he’s had “excellent con versations” with federal counter part Wilkinson.

“He shares the sense of urgency if we’re going to meet our climate goals, if we’re going to decarbonize our economy,” Pirie said. “We need these minerals out of the ground. We’ve got to be masters of our des tiny.”

Pirie, who was mayor of Tim mins before he ran provincially, was also pleased after meeting local Indigenous leaders of the Webequie and Marten Falls First Nations.

“They’re very, very progressive,” Pirie said. “They want the develop ment to happen. They’re doing a great job with consulting the com munities in there.”

The communities are conduct ing environmental assessments for three all-weather roads running a total of 362 km to serve the area. Terms of reference should be set by the end of the year, he said, with the goal of completing the studies next year.

However, developments face opposition from other Indigenous bands, such as the Neskantaga and several western James Bay commu nities such as Attawapiskat. The minister said he is open to speaking with all groups.

The minister recounted the for mative experience of working among Indigenous miners in Wau baushene, Ont., as a young man. Later as an executive at Placer Dome in the 1990s, he realized the com pany hadn’t included Indigenous communities enough in its projects.

“We initially thought we were doing a good job as miners. It didn’t take too long to unpack that to real ize the generation we had excluded was the Indigenous peoples,” he said. “We had to take responsibility for what was going on in society.”

Education of a slightly differ ent sort is needed for Ontarians to realize the potential and neces sity of the local industry, he said. The province should be the world’s top mining destination because its miners have industry-leading proj ect design and environmental skills, but the length of the approvals pro cess shows the mandate from the people to allow mining has been lost, he said.

“We’re complete miners. We’ve got to sell that message,” Pirie said. “Certainly, my children, my grand children are all on-board about climate change and our responsi bility to change it. Tied into that, to achieve this we have to mine. And we can do it sustainably.”

INTERVIEW | Former mayor of Timmins has 35 years of experience in the mining sector

“WE NEED THESE MINERALS OUT OF THE GROUND. WE’VE GOT TO BE MASTERS OF OUR DESTINY.”

GEORGE PIRIE, ONTARIO’S MINES MINISTER

Above: Ontario Mines Minister George Pirie, left, greets Premier Doug Ford at the opening of Vale’s Copper Cliff South Mine in Sudbury on Oct. 13. GEORGE PIRIE Left: Ring of Fire Metals’ Esker camp in Ontario’s Ring of Fire. RING OF FIRE METALS

Magna plans drilling at Denison nickel-copper project after ‘considerable’ resource estimate

BY COLIN MCCLELLAND

Magna Mining (TSXV: NICU) says its first resource for its Denison nickel, copper and platinum group metals project in Ontario’s Sudbury basin shows “significant potential.”

Magna is exploring the restart of a past-producing underground mine and the development of an open-pit operation to the site, also known as Crean Hill. As well, Magna owns the advanced-stage Shakespeare, a similar project in the same region.

Denison’s indicated resource for both underground and open pit totals more than 31 million tonnes, Magna said.

“The Denison project has con siderable remaining mineraliza tion and has the potential to, once again, become a significant produc ing mine,” Magna chief executive officer Jason Jessup said in a news release. “We plan to commence our maiden exploration program at Crean Hill and commission a new technical study to demonstrate the potential synergies between Crean Hill and Shakespeare.”

The indicated open-pit resource is 16.8 million tonnes grading 0.53% nickel, 0.49% copper, and 0.02% cobalt (1.08% nickel equivalent). It also has 0.48 gram platinum, 0.37 gram palladium and 0.25 gram gold per tonne, the company said.

The underground indicated resource is 14.5 million tonnes grading 0.56% nickel, 0.84% cop per and 0.03% cobalt for 2.07% nickel equivalent. It also has 0.88 gram platinum, 1.02 gram palla dium and 0.54 gram gold.

Magna and other project devel opers and explorers are taking advantage of the rising demand for metals needed for the global clean energy transition to make past-producing mines profitable again. Nickel, copper and plati num group metals are important for making all kinds of new tech nology such as electric vehicle bat teries, mobile phones and wind turbines.

Paul Fowler, a senior vice-pres ident at Magna, said the Denison project could rival discoveries by FNX Mining in the Sudbury basin nearly two decades ago.

“There remains a lot of explora tion potential in the footwall zone where we are going to re-commence drilling immediately,” Fowler said by email. “There are a lot of histor ical high-grade hits in the footwall with phenomenal long intersec tions.”

Magna acquired Denison with the $16-million purchase of Lon min Canada in August. Denison operated as Crean Hill for Inco for about 80 years in three periods from 1906 to 2002. Vale (NYSE: VALE) ran the site as a joint ven ture with Lonmin before they closed the mine in 2017.

The Shakespeare project, 37 km west of Denison, also hosts a past-producing nickel-copper-plat inum group metals mine. It has an indicated resource of 20.3 mil lion tonnes grading 0.33% nickel, 0.36% copper, 0.32 gram plati num per tonne, 0.35 gram palla

dium and 0.19 gram gold. Magna has permits for the construction of a 4,500-tonne-per-day mill and the re-start of open pit mining at Shakespeare.

“The proximity of our other proj ect, the permitted mine and mill site at Shakespeare, means that this asset is a natural fit for our com pany and gives us a unique advan tage in exploring and developing Crean Hill,” CEO Jessup said. TNM

BATTERY METALS | Past-producing Crean Hill site operated for 80 years

Visiting the Crean Hill nickel-copperPGM project near Sudbury, Ont. MAGNA MINING

Ring of Fire Metals explores wind power and atmospheric carbon removal

BY MARILYN SCALES

Ring of Fire Metals has begun two studies to explore using wind power and atmo spheric carbon removal as part of planning for a net-zero emissions operation at the Eagle’s Nest nick el-copper-PGM mine in northern Ontario’s Ring of Fire. The remote region is located about 540 km northeast of Thunder Bay.

“Our primary focus in the devel opment of Eagle’s Nest is to imple ment low emissions technologies throughout the operation, wher ever possible,” said Stephen Cro zier, RoF Metals VP sustainability.

“We are encouraged by the results of the initial wind study and believe there is good potential to generate clean energy using wind turbines in the area, which we will further define with additional study in the near term.”

Ring of Fire Metals changed its name from Noront Resources in September. The company was bought by privately owned, Aus tralia-based Wyloo Metals in a $616.9-million acquisition that closed in April.

Following the wind power study, RoF Metals installed a Vaisala WindCube LiDAR to collect more detailed data. Such devices collect measurements throughout the air

column from the base to the top of the turbine blades, rather than only at the hub. The data will be used to track weather variability.

“Other options for comple mentary low and no-emission generation, including biomass, pumped hydro, and solar are also being investigated to supplement clean wind energy production if needed,” Crozier added.

RoF Metals is also participating in the Details project with Geosci ences Barcelona to investigate the

potential to use mine tailings to remove carbon dioxide from the atmosphere. Tailings from ultra mafic nickel deposits have been shown to absorb carbon dioxide. The project aims to tackle the chal lenge of speeding up the rate at which that happens.

Geosciences Barcelona is eval uating samples from the Eagle’s Nest project. After the tailings have been used to absorb carbon diox ide, they would be stored perma nently underground. TNM

Argonaut Gold on target for April start at Magino

PRECIOUS METALS | Reports Q3 loss on ‘challenging’ conditions at its producing mines

BY COLIN MCCLELLAND

Argonaut Gold (TSX: AR) is advancing its over-bud get Magino project east of Lake Superior with a new financ ing and royalties deal at the same time as it reports a net loss for the recent quarter when revenue sank by nearly a third.

The gold miner slid into a US$1.3-million net loss for the quarter ended Sept. 30 after “chal lenging” conditions at its La Col orada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, and selling less gold than it produced due to the timing of sales, it said.

Production came to 45,939 gold-equivalent oz. for revenue of US$75.3 million for the threemonth period. It marked a 22% decline from output of 58,777 gold-equivalent oz. and a 31% drop in revenue from US$108.6 million during the same period last year.

“The challenges at these two mines were due to the block model performance and seasonal rains at La Colorada that are expected but were heavier than normal,” Argonaut president and chief executive officer Larry Radford said in the results fil ing on Nov. 3. “With infill programs ongoing in support of revised block models, we expect improved recon ciliations in the future.”

Mining analyst Brian Quast of BMO Capital Markets noted how decades-high inflation required Argonaut to increase its cost fore casts for the second consecutive quarter. It raised its annual all-in sustaining cost to US$1,650-1,725 per oz. from US$1,500-1,600 per oz. and its cash cost guidance to US$1,300-1,350 per oz. from US$1,200-1,300 per oz. The com pany maintained its 2022 produc tion estimate of 200,000 to 230,000 gold-equivalent ounces.

Argonaut is set to increase gold production by some two-thirds with next April’s targeted startup of the Magino open pit mine in northern Ontario. The company has raised nearly half a billion dollars in debt and equity deals this year as it seeks to cover development costs that have nearly doubled since construc tion began two years ago at the site less than 1 km from Alamos Gold’s (TSX: AGI; NYSE: AGI) Island gold mine.

BMO’s Quast said new financing is keeping the Magino project — 40 km northeast of Wawa, Ont. — on schedule.

“As of September 30th, it is esti mated that the project is 70% com plete,” Quast said. “The company

has obtained the required liquidity to continue progressing on track for first pour.”

Last month, Argonaut drew US$80 million from a US$250-mil lion loan to repay outstanding revolving credit, the company said. The US$250 million in debt, funded this year by a syndicate of lenders including BMO, RBC and Scotia bank, consists of a US$200-million term loan and US$50 million in revolving credit.

The same day, Argonaut said Toronto-based Franco-Nevada (TSX: FNV) bought a 2% net smelter return royalty on Mag ino for US$52.5 million and a US$10-million equity stake equal to 4.3% in the miner.

In June, Argonaut raised $195.3 million for the project with the sale of 434 million common shares at 45¢ apiece.

The Magino project showed “sig nificant progress” during the recent quarter, Radford said.

“We remain focused on the longterm strategic objective to generate increasing cash flow through lowcost production growth,” the CEO said. “Magino is a key driver of our future growth.”

The company is targeting annual production of 142,000 oz. over the first five years of Magino, with 19-year life-of-mine cash costs of US$907 per oz. Estimated develop ment costs almost doubled to $920 million in May from $510 million when construction began two years ago. Argonaut bought the prop erty, which hosts a past-producing underground mine, in 2012.

Magino has proven and probable reserves of 58.9 million tonnes grad ing 1.13 grams gold per tonne for 2.14 million oz. of contained gold. Measured and indicated resources, inclusive of reserves, stand at 144 million tonnes grading 0.91 gram gold for 4.2 million gold ounces.

The US$250-million debt financ ing requires Argonaut to hedge part of its gold production, including 25,000 oz. gold per quarter for six quarters starting in the third quar ter of 2023 at a price of US$1,860 per oz. and 15,000 oz. per quarter for 10 quarters starting in the first quarter of 2025 at the same price. The forward contracts also include 10,000 oz. per quarter for the 10 quarters starting in the first quar ter of 2025 at a price of US$1,763 per ounce.

At press time in Toronto, Argo naut was trading at 40¢ per share within a 52-week range of 34¢ and $4.09. The company has about 801 million shares outstanding and a valuation of $319.9 million.

Installation of the WindCube LiDAR unit at the Eagle’s Nest project in northern Ontario. RING OF FIRE METALS

Argonaut Gold’s Magino site in northern Ontario. ARGONAUT GOLD

ONTARIO SNAPSHOT: EIGHT COMPANIES TO WATCH

BY NORTHERN MINER STAFF

Ontario is one of the world’s premier mining jurisdictions. Here’s a look at eight companies exploring the province for gold, PGMs, lithium and more.

n FIRST MINING GOLD

First Mining Gold (TSX: FF; US-OTC: FFMGF) has gold proj ects in Ontario and Quebec. In northwestern Ontario, the company is advancing its flagship Springpole project, which it describes as “one of the largest undeveloped gold assets in North America,” and expects to complete a feasibility study in the second half of 2023. It has begun metallurgical and engineering work and in June 2022 it submitted a draft environmental assessment to com munities and government.

A prefeasibility study completed in January 2021 envisioned an open-pit mine producing 287,000 oz. gold annually over a mine life of 11.3 years (335,000 oz. per year in years one through nine. Initial cap ital costs were estimated at US$718 million with an after-tax payback of 2.4 years. The study forecast an after-tax net present value (5% dis count rate) of US$995 million at a gold price of US$1,600 per oz., and an internal rate of return of 29.4%.

The prefeasibility was based on proven and probable reserves of 121.6 million tonnes grading 0.97 gram gold per tonne for 3.8 mil lion oz. of contained gold and 5.23 grams silver per tonne for 20.5 mil lion silver ounces.

The company also owns the 528-sq.-km Cameron gold proj ect in Ontario’s Kenora mining division, about 88 km from New Gold’s (TSX: NGD; NYSE-MKT: NGD) Rainy River mine. Cam eron encompasses the Cameron gold deposit and the East and West Cedartree deposits.

In Quebec, the company’s Duparquet, Pitt and Duquesne projects are a collection of assets on the Abitibi’s Destor-Porcu pine Fault. The company acquired 100% of Duparquet in September 2022 and updated the resource esti mate to 3.4 million measured and indicated ounces and 1.6 million inferred ounces.

First Mining has a portfolio of 21 royalties in four countries; joint ventures at Pickle Crow with Auteco Minerals (ASX: AUT) and at Hope Brook with Big Ridge Gold (TSXV: BRAU); and is the largest shareholder in Treasury Metals (TSX: TML).

First Mining Gold has a market cap of about $160.3 million.

n GENERATION MINING

Generation Mining (TSX: GENM; US-OTC: GENMF) is developing its 100%-owned Marathon pal ladium-copper project in north western Ontario, near the town of Marathon. The company says it is the largest undeveloped palladium project in North America.

A feasibility study completed in March 2021 estimated Mara thon would produce an estimated 245,000 palladium-equivalent oz. per year over a 13-year mine life at an all-in sustaining cost of US$809 per palladium-equivalent ounce. Over its mine life Marathon will produce an estimated 1.91 million oz. palladium, 467 million lb. cop per, 537,000 oz. platinum, 151,000

oz. gold and 2.82 million oz. silver. The study forecast upfront capital costs of $665 million, net of equip ment financing and pre-comple tion operating costs and revenues.

At US$1,725 per oz. palladium and US$3.20 per lb. copper, the study outlined an after-tax net present value (6% discount rate) of just over $1 billion, an internal rate of return of 30%, and a base case pay back period of 2.3 years.

In August, the company signed an agreement with Hycroft Min ing to acquire an unused, surplus SAG mill and ball mill for US$12 million. The same month, the Joint Review Panel issued its Environ mental Impact Statement report to the federal and provincial ministers of the environment. Generation Mining said ministerial decisions are expected to follow on or before Nov. 30.

In March, the company closed a $240 million precious metal purchase agreement with Whea ton Precious Metals (TSX: WPM; NYSE: WPM; LSE: WPM) for a stream on all gold production and 22% of palladium production from the Marathon project. Of the $240 million, $40 million will be paid on an early deposit basis prior to con struction, with the remainder pay able in four staged installments during construction.

Generation Mining has a market cap of about $112 million.

n GOLDSHORE RESOURCES

Goldshore Resources (TSXV: GSHR; US-OTC: GSHRF) owns the Moss Lake gold project in northwestern Ontario, about 100 km west of Thunder Bay. The northern boundary of the project lies about 1 km from Highway 11.

The 142.9-sq.-km property hosts gold and base metal rich deposits, including Moss Lake, East Cold stream, the historically producing North Coldstream mine, and the Hamlin Zone, all of which occur over a mineralized trend of about 20 km.

Moss Lake and East Coldstream are shear-hosted disseminatedstyle gold deposits that outcrop. The North Coldstream mine report edly produced significant amounts of copper, gold and silver, and the Hamlin Zone contains copper and gold mineralization.

The company is undertaking a

100,000-metre drill program at the project and has been releasing drill results all year. At the Moss Lake deposit, it reported 58.85 metres grading 6.30 grams gold per tonne from 103.3 metres in drill hole MMD-21-008 in March, and 78.35 metres of 1.17 grams gold from 170.35 metres in hole MMD-22020 in June. At the East Coldstream deposit, 13 km northeast of Moss Lake, Goldshore reported in Sep tember an intercept of 23 metres grading 1.34 grams gold from 244 metres in CED-22-004; and in Octo ber at North Coldstream, Goldshore reported 62.8 metres grading 0.36% copper, 0.06% cobalt, 0.30 parts per million gold and 3.1 parts per mil lion silver (0.88% copper-equiva lent) from a depth of 8.2 metres in drill hole CND-22-006.

Wesdome Gold Mines (TSX: WDO) is a large shareholder in the company with an equity stake of about 27%.

Goldshore Resources has a mar ket cap of about $25.7 million.

n GREEN TECHNOLOGY METALS

Australia-listed Green Technology Metals (ASX: GT1) is focused on lithium projects in Ontario.

The company holds an 80% interest in the Seymour, Root and Wisa lithium projects under a joint venture with Ardiden (ASX: ADV) and owns 100% of the Allison lith ium project.

Seymour, its flagship asset, has a JORC-compliant global resource of 9.9 million tonnes grading 1.04% lithium oxide (Li20). The company is undertaking a preliminary eco nomic assessment of the project, which sits on a claim base of 410 sq. km. In January the company reported an intercept of 40 metres of 1.54% Li20 in drill hole GTDD-21004. Field activities include ongoing drilling with two rigs; ground test ing interpreted geophysical targets, ground geophysics to test targets under glacial cover, and Lidar inter pretation to delineate surface expo sure of pegmatites.

The company has started drill ing at the Root project, a dense peg matite swarm on a granted mining lease. The project contains three areas of key interest: the McCombe deposit; pegmatites at Morrison, and the Root Bay pegmatite pros pect, about 5 km east of Morrison.

Wisa is a large, under-explored tenement base covering 19 sq. km, and the 350-sq.-km Allison project is a prospective Archeon Green stone tenure.

According to the company’s lat est corporate presentation in Octo ber, it has partnerships with several companies in the lithium space, including Primero, a founding cor nerstone investor holding a 6.4% stake; AMCI, a 9.9% shareholder and also founding cornerstone investor; and Lithium Americas (TSX: LAC; NYSE: NAC) (a 5.2% shareholder).

Green Technology Metals has a market cap of about A$176.4 mil lion ($153 million).

n GRAYCLIFF EXPLORATION

Graycliff Exploration (CSE: GRAY; US-OTC: GRYCF) is focused on gold exploration with two projects in Ontario: Shakespeare, 88 km west of Sudbury, and Baldwin, located just east of Shakespeare.

The company began its ini tial exploration and drill program in the third quarter of 2020, and kicked off its phase four drill pro gram in March. As of August, the company had completed more than 12,000 metres of drilling.

In May it reported an intercept at Shakespeare of 2 metres grading 20.52 grams gold per tonne start

First Mining Gold’s Springpole project in northwestern Ontario. FIRST MINING GOLD

Is your mine design based on sound geology?

ing from 202 metres in drill hole J-31 and in September a 9-metre intercept grading 10.93 grams gold from 156 metres in drill hole J-48. Other highlights, released in Octo ber, were drill hole J-49, which cut 10.09 grams gold over 6 metres starting 189 metres downhole; and J52, which intersected 14.39 grams gold over 3 metres starting from 175 metres.

The Shakespeare property is located in the area of the historic Shakespeare gold mine, which operated from 1903 to 1907 and reportedly produced about 2,959 oz. gold from six underground lev els. In its fall corporate presenta tion, Graycliff noted that it intends to re-open the adit into the third level of the former mine to carry out exploration and drilling from underground upon the receipt of permits.

It also noted that completed air borne geophysics over both Shake speare and the Baldwin project, have identified new gold explo ration target areas as well as new copper and nickel-copper and plat inum group element target areas.

Management and strategic investors in Graycliff own roughly 25% of the company.

Graycliff has a market cap of about $2.7 million.

n MAYFAIR GOLD

Mayfair Gold (TSXV: MFG; US-OTC: MFGCF) is focused on its flagship, 100%-owned Fenn-Gib gold project, about 80 km east of the city of Timmins in northeast ern Ontario.

In mid-October, the com pany updated Fenn-Gib’s pit-con strained resource estimate to 118.07 million indicated tonnes grading 0.81 gram gold per tonne

for 3.06 million contained oz. gold and 13.83 million inferred tonnes grading 0.70 gram gold for 311,000 gold ounces. The resource estimate also included an initial underground resource of 1 million inferred tonnes grading 3.22 grams gold for 103,586 ounces.

The resource update included assay results up to July 31 for about 67,000 metres drilled, or 61% of its current drill program. The com pany says it expects to complete its 110,000-metre drill program in January 2023 and update the resource again in the second quar ter of next year.

The deposit has a strike length of about 1.25 km with varying widths of up to 300 metres, and the gold mineralized zones remain open at depth and along strike to the east and west. Recent metallurgical tests indicate the deposit can deliver gold recoveries of up to 94%.

Mayfair’s timeline includes a pre-feasibility study in the first half

of 2023, and a feasibility study in the second half of 2023.

The project, now 48 sq. km in size, was discovered by Pangea Goldfields in 1990. Mayfair com pleted its acquisition in Decem ber 2020 with its first drill turning in January 2021. Previous own ers included Barrick Gold (TSX: ABX; NYSE: GOLD), Lake Shore Gold, Tahoe Resources and Pan American Silver (TSX: PAAS; NASDAQ: PAAS).

Mayfair Gold has a market cap of about $92 million.

n MONETA GOLD

Moneta Gold (TSX: ME; US-OTC: MEAUF) is advancing its wholly owned Tower gold project in northeastern Ontario, about 100 km east of Timmins.

A preliminary economic assess ment of the project completed in September envisioned a 19,200 tonne-per-day combined open pit and underground operation with a 24-year mine life. The study fore cast average annual gold produc tion of 261,014 oz. in years one to 11 (192,666 oz. per year over the life of the mine) at cash costs of US$910 per oz. and all-in sustaining costs of US$1,073 per ounce.

Moneta Gold’s Tower project in northeastern Ontario. MONETA GOLD

TSX-V: NOB | FWB: NB7 | OTCQB: NLPXF

Above: Core samples at Goldshore Resources’ Moss Lake project.

Right: Airborne geophysical survey over Moss Lake.

GOLDSHORE RESOURCES

BELOW: A drill shack at Mayfair Gold’s Fenn-Gib project.

RIGHT: Examining core from Fenn-Gib MAYFAIR GOLD

The open pit mine will be respon sible for 158.2 million tonnes at a grade of 0.81 gram gold over a mine life of 24 years, and the under ground mine will contribute 8.2 mil lion tonnes at a grade of 3.42 grams gold over a mine life of 12 years.

Initial capex was pegged at $517 million with an after-tax payback of 2.6 years. At a gold price of US$1,600 per oz., the project would yield an after-tax net present value (5% discount rate) of $1.07 bil lion and a post-tax internal rate of return of 31.7%.

Tower’s total open pit and under ground indicated resource stands at 150.57 million tonnes grading 0.92 gram gold for 4.46 million oz. contained gold and 235.63 million inferred tonnes grading 1.09 grams gold for 8.29 million gold ounces.

Gold will be extracted from two separate areas: Golden Highway and Garrison. Golden Highway consists of the Westaway, South west, 55 and Windjammer depos its, and Garrison contains the Garrcon, 903 and Jonpol deposits.

In mid-October the company released results from infill drill ing on the Windjammer deposit, with highlights of 158 metres grad ing 0.55 gram gold in drill hole MGH22-298 from 264 metres downhole. In early November, drill results from Westaway included 70 metres grading 1.82 grams gold from 232 metres in drillhole MG22-310 and from South West of 56.50 metres grading 1.1 grams gold starting from 976 metres in MGH22-293

Moneta Gold has a market cap of about $143.4 million.

n TRILLIUM GOLD MINES

Trillium Gold Mines (TSXV: TGM; US-OTC: TGLDF) controls over 886 sq. km of property in Ontar io’s Red Lake mining district and its three biggest projects there are Confederation Belt (100% owned); the Newman Todd complex (100%) and Gold Centre (80%).

At Newman-Todd, about 26 km from Evolution Mining’s (ASX: EVN) Red Lake operations, Tril

lium has drilled 17 holes (7,665 metres) since January. At Gold Centre, adjacent to Evolution Min ing’s Red Lake operations, Trillium has drilled five holes (4,950 metres) since January.

The company reported drill results in late September from New man-Todd including 40.56 grams gold per tonne over 4.18 metres in drill hole NT22-211 starting from 307.5 metres; and 90.38 grams gold

over 1.01 metres starting 30.64 metres downhole in NT22-212.

The company has been busy this year acquiring more ground directly and through option agree ments. The deals have included the Uchi Gold and Satterly Lake Gold properties in April, which extended Trillium’s holdings to the north east in proximity to First Mining’s Springpole project; and the East ern Vision projects, which closed

in late June. In June it picked up the Wenasaga property, contiguous to Eastern Vision, about 35 km to the west of Kinross Gold’s (TSX: K; NYSE: KGC) Dixie project and 55 km southeast of Red Lake; and the Panama Lake properties, about 80 km from Dixie.

Management and insiders own about 40% of the company.

Trillium Gold Mines has a mar ket cap of about $14.4 million. TNM

Above: Inspecting core samples from Generation Mining’s Marathon palladium-copper project. GENERATION MINING

Trillium Gold’s Newman Todd project in Red Lake, Ont. TRILLIUM GOLD

SNAPSHOT from 14

ABOVE AND INSET: A site tour of Green Technology Metals’ Root project, 300 km northwest of Thunder Bay. GREEN TECHNOLOGY METALS

B2Gold, AngloGold put Gramalote JV up for sale

COLOMBIA | Sale of US$925M project to allow partners to focus on other projects

BY CECILIA JAMASMIE

B2Gold (TSX: BTO; NYSE-AM: BTG) and South Africa’s AngloGold Ashanti (NYSE: AU; ASX: AGG) have de cided to put their US$925-million Gramalote gold project in Colom bia up for sale before year-end.

Canada’s

After completing a comprehen sive review of the alternatives for the gold project in the northwest ern department of Antioquia, the joint venture (JV) partners deter mined it would be in the best interest of all stakeholders to find a buyer, B2Gold said in its third quarter results report.

Gramalote was put on hold in August, as preliminary results from an optimized feasibility study sug gested the project did not meet the JV’s investment thresholds for mine development.

Vancouver-based B2Gold said that now, with the feasibility study completed, it was clear that the dis posal of Gramalote was the best option for both companies.

Gramalote was B2Gold’s first project when it was an exploration company starting out. In 2015, it received the first environmental licence awarded in Colombia in 35 years.

The permit gave it three years to work through social aspects related to the open pit project, including relocating artisanal miners and some nearby residents.

During that time, Grama lote became the centre of a min ing rights dispute with Canada’s Zonte Metals (TSXV: ZON), which remains active.

The project, B2Gold highlighted, continues to enjoy the support of the government as well as from local communities.

Eyes on Quebradona

AngloGold Ashanti’s chief exec utive Alberto Calderón, who assumed the top job in Septem ber 2021, recently said that selling the gold project was the compa ny’s preferred option. He added the move would allow AngloGold

to focus on bigger assets, includ ing its US$1.4-billion Quebra dona gold-copper project, also in Colombia.

In May, the country’s environ mental regulator, ANLA, refused to reopen the miner’s application to the environmental licence for the asset. It cited lack of information on the project’s area of influence as the main reason for the refusal.

AngloGold, however, has said it plans to resubmit its environmen

tal permit application for Quebra dona in 2023.

The mine is expected to be Colombia’s largest copper develop ment, with production estimated at 137 million lb. copper concentrate annually over a 22-year mine life in its first phase.

AngloGold has been shifting focus from its home country to more profitable mines in Ghana, Australia and Latin America as the industry in South Africa dwin

dles amid power cuts, soaring costs and the geological challenges of exploiting the world’s deepest deposits.

Commenting on news of the sale, BMO mining analyst Brian Quast noted that “the joint sale process is expected to begin in Q4/2022 which will most likely be viewed as a positive develop ment, as it allows B2Gold to focus its exploration and developmental efforts elsewhere.” TNM

Pure Gold seeks creditor protection

BY NORTHERN MINER STAFF

Vale (NYSE: VALE) has signed three memoran dums of understanding (MOUs) to jointly study the feasi bility of developing industrial com plexes or ‘mega hubs’ in the King dom of Saudi Arabia, the United Arab Emirates, and the Sultanate of Oman.

The hubs will produce hot bri quetted iron (HBI) and steel prod ucts, Vale says, noting that “the production of HBI using natu ral gas emits around 60% less CO2 than the pig iron production through the integrated BF-BoF [blast furnace-based oxy gen furnace] route.”

Vale says it plans to build and operate iron ore concentration and briquetting plants to produce pellets within the hubs and “local parties are expected to promote the construc tion of the required logistics infrastructure.”

The company explained in a press release that “investors and/or clients are expected to construct and operate the direct reduc tion plants and be off takers of HBI for either the export or domestic markets. These Mega Hubs shall supply different markets across the globe supporting the decarbonization of the steelmaking industry.”

Vale CEO Eduardo Bartolomeo noted that the partnerships “will be key to support the decarbonization of the steelmaking industry.”

Marcello Spinelli, the company’s exec utive vice president, said that with iron ore production, he sees “great potential” in the direct reduction route, estimating that demand for high-grade agglomerated prod

ucts will grow by 100 million tonnes over the next 15 to 20 years.

Spinelli also said the Middle East offers many advantages as a place to invest. “We strongly believe that the Middle East, with its competitive energy prices, strategic location and entrepreneurial mindset, has a unique set of conditions to successfully develop these integrated hubs.”

The agreements were signed in the last week of October with Saudi Arabia’s National Industrial Development Center; the Emirates Steel Arkan; and the Sultanate of Oman’s Ministry of Commerce, Industry and Investment Promotion.

Commenting on the MOUs in a research note, Colin Hamilton of BMO Capital Mar kets, said he sees “strong potential for DRI as an established lower-carbon transition technology to aid the steel industry,” adding that, “with developed markets likely to see reduced ferrous scrap exports these facilities could be crucial in supplying emerging mar ket electric arc furnaces.” TNM

BY CECILIA JAMASMIE

Canadianprecious metals miner Pure Gold Mining (TSXV: PGM.H; LSE: PUR) has applied for an initial order for creditor protection from the Supreme Court of British Columbia, having consid ered its cash position, debt repayments and forecast revenue.

The cash-strapped miner kicked off in July a corporate review that sought to decide whether to sell the company, merge with a peer, divest its flagship gold mine in Ontario, or find other long-term financing options.

Pure Gold had to place its namesake mine under care and maintenance in late Octo ber, as it failed to secure funds to keep oper ations going, despite increasing production and cash flow.

The Vancouver-based firm said the initial order seeks a stay of creditor claims and pro ceedings and authorization to borrow under an interim financing credit facility from its lending partner, Sprott Private Resource Lending II. It also comprises the appoint ment of KSV Restructuring as a court-ap pointed company monitor.

While under creditor protection, Pure Gold would consider all available transac tional and restructuring options with a goal of maximizing value for the company and its stakeholders, the company said. On Nov. 2 its TSX Venture listing was downgraded to the NEX Board.

The PureGold mine, in Red Lake, will remain on care and maintenance and the company’s management will remain respon sible for day-to-day operations, under the oversight of KSV.

The company poured first gold at the

mine by the end of 2020 and announced the start of commercial production in August 2021. The operation, however, has strug gled to consistently produce at its name plate capacity of 800 tonnes per day, despite mill upgrades that were intended to increase capacity to 1,000 tonnes per day.

The miner noted the operation, a past pro ducer formerly known as Madsen, has also failed to achieve consistent positive site-level cash flow and expected additional funding had not materialized.

Construction delays, bad scheduling, problems with equipment, and “strategic misalignments,” were cited by the miner to explain production shortfalls. The mounting issues triggered a change in leadership early this year.

PureGold’s equity was at its lowest level of the past year at press time in Toronto, hitting 1¢, down from a high of $1.08 last Decem ber. It has a market cap of $10.9 million.

B2Gold and AngloGold Ashanti’s Gramalote gold joint venture project in Colombia. B2GOLD

Vale’s S11D iron ore complex in Brazil. VALE

MARKET NEWS

TORONTO STOCK EXCHANGE / OCTOBER 31 –NOVEMBER 4, 2022

The Oct. 31 to Nov. 4 trading week saw the S&P/TSX Composite Index close 21.4 points or 0.1% lower, at 19,449.81. The S&P/TSX Global Mining Index lost 4.3 points or 4.6% to 95.88 and the S&P/TSX Global Base Met als Index fell 12.7 points or 8% to 170.3. The S&P/TSX Global Gold Index fell by 3.5 points or 1.4% to 239, and spot gold ended the week US$26.4 per oz. or 1.6% higher, at US$1,674.40 per ounce.

Leading the charge this week in terms of value gained, First Quantum Minerals added $4.60 to close at $29.30. First Quan tum on Oct. 26 reported third-quarter head line earnings fell 72% quarter-on-quarter from US$337 million in the second quar ter to US$96 million. Copper C1 cash costs increased by 8¢ per lb. to US$1.82 per lb. The company cited a declining copper price, cost inflation, and challenged performance from its Kansanshi copper mine in northwest ern Zambia as factors pressuring its mar gins downwards. Total copper output for the three months was at 194,974 tonnes, up 2,306 tonnes from the prior period. The increase was mainly attributable to Sentinel, also in Zambia, which achieved a record output of 64,120 tonnes of copper. However, chal lenges at Kansanshi prompted First Quan

tum to lower its guidance for 2022.

Hudbay Minerals was the week’s top percentage gainer, adding 28.4% to close at $6.82. On Nov. 2, the company reported a quarterly headline loss of US5¢ per share compared to nil per share a year earlier. Hud bay produced 24,498 tonnes of copper during the September quarter at an 11% improved consolidated cash cost per lb. of copper pro duced, net of byproduct credits, of US58¢ per pound. The company is realizing benefits from recent brownfield growth investments, including the successful ramp-up of the highgrade Pampacancha satellite deposit in Peru and higher throughput and gold recoveries at its New Britannia mill in Manitoba.

TSX MOST ACTIVE ISSUES

VOLUME WEEK

(OOOs) HIGH LOW CLOSE CHANGE

Barrick Gold ABX 56345 21.03 17.88 19.13 1.69

Suncor Energy SU 41969 50.37 45.44 48.70 + 2.84

Lundin Mng LUN 20713 8.36 7.10 8.04 + 0.76

Kinross Gold K 19386 5.25 4.63 5.23 + 0.25

B2Gold Corp BTO 19035 4.38 3.93 4.24 + 0.04

Yamana Gold YRI 17826 6.77 5.55 6.59 + 0.51

First Quantum FM 16634 30.37 23.69 29.30 + 4.60

Argonaut Gold AR 15668 0.41 0.34 0.40 0.01

HudBay Min HBM 13399 6.87 5.16 6.82 + 1.51

K92 Mining KNT 11045 6.70 6.01 6.70 + 0.43

This week’s most active issue was Barrick Gold which saw 56.1 million shares change hands before closing $1.69 lower on Nov. 4 at $19.13 per share. It reported on Nov. 3 a sharp drop in earnings as lower production and higher costs weighed on its third quar ter results. The gold major reported headline earnings of US$224 million, compared with

TSX GREATEST PERCENTAGE CHANGE

VOLUME WEEK

(OOOs) HIGH LOW CLOSE CHANGE

HudBay Min HBM 13399 6.87 5.16 6.82 + 28.4

Century Global CNT 3 0.12 0.00 0.12 + 27.8

Silver Bull Re SVB 305 0.23 0.00 0.21 + 23.5

NextSource Mat NEXT 584 2.99 2.34 2.95 + 22.9

Capstone Mng CS 10872 3.96 3.10 3.78 + 20.4

Nevada Copper NCU 1209 0.31 0.25 0.31 + 19.6

First Quantum FM 16634 30.37 23.69 29.30 + 18.6

Verde AgriTech NPK 712 7.54 6.09 7.20 + 17.3

Arizona Metals AMC 966 4.38 3.42 4.12 + 17.0

Wallbridge Mng WM 2690 0.21 0.16 0.19 + 15.6

Sabre Gold SGLD 809 0.03 0.03 0.03 16.7

St Augustine SAU 732 0.07 0.06 0.06 15.4

Gold Mountain GMTN 823 0.15 0.12 0.13 13.8

Novo Res NVO 447 0.42 0.35 0.36 13.4

Scandium Intl SCY 1121 0.08 0.06 0.07 13.3

Treasury Metal TML 302 0.33 0.28 0.28 12.5

Goldgroup Mng GGA 192 0.15 0.11 0.11 12.5

Equinox Gold EQX 8776 4.70 3.23 4.06 12.1

Nutrien NTR 10265 117.38 95.49 98.79 11.9

Sulliden Mng SMC 55 0.05 0.00 0.04 11.1

TSX VENTURE EXCHANGE / OCTOBER 31 –NOVEMBER 4, 2022

The S&P/TSX Venture Composite Index ended the Oct. 31-Nov. 4 trading session at 593.70, just 3.23 points or 0.5% lower.

Critical Elements Lithium shares rose by 31¢ to $4.75 after the company announced it had received its last major environmental approval for its Rose lithium-tantalum proj ect in Quebec. The certificate of authoriza tion granted by the province follows a federal environmental approval in summer 2021, and the release of a positive feasibility study this June. The study outlined a US$357-mil lion, 17-year mine that would process 1.6 million tonnes of ore annually to produce 224,686 tonnes of technical and chemical grade spodumene concentrates, plus 441 tonnes of tantalite concentrate each year.

“Rose has now passed key permitting and de-risking milestones that will allow Crit ical Elements to advance project financing discussions and clear the path to the mine’s construction,” Matt O’Keefe, a mining ana lyst at Cantor Fitzgerald wrote in a note to clients. “We see this as a major catalyst and should drive a strong re-rating of the stock upwards towards a valuation that is in-line with its peers.”

New Found Gold shares rose 25¢ per share to $4.98 on the release of shallow, highgrade assays from its Lotto North discovery

at its Queensway gold project in northeast Newfoundland.

Highlights from Lotto North, part of the Lotto zone, include 2.1 metres of 37.36 grams gold per tonne from 69.5 metres depth in NFGC-22-690, 2.4 metres of 33.79 grams gold from 74.6 metres in NFGC-22-661, and 2.2 metres of 22.18 grams gold from 49.8 metres depth in NFGC-22-717. So far, New Found has only received assays from four holes at Lotto North. The company says that the Lotto-Lotto North segment of the Apple ton Fault zone now has a strike length of 1 km, within a 3.2-km Keats-Lotto corridor at the project. New Found has completed about 74% of a planned 400,000-metre drill pro gram at Queensway.

TSX-V MOST ACTIVE ISSUES

VOLUME WEEK (OOOs) HIGH LOW CLOSE CHANGE

Pure Gold Mg PGM 88985 0.02 0.01 0.02 0.01

Vision Lithium VLI 12418 0.18 0.11 0.16 + 0.03

Nevada Expl NGE 10282 0.02 0.01 0.01 0.01

Santacruz Silv SCZ 9762 0.49 0.40 0.49 + 0.06

Surge Battery NILI 8325 0.13 0.10 0.10 0.03

Angold Res AAU 7459 0.07 0.03 0.05 0.03

Aurcana Silver AUN 6724 0.01 0.01 0.01 0.01

Bear Creek Mng BCM 5773 0.44 0.37 0.39 0.01

Critical Elem CRE 5276 2.39 1.86 2.19 + 0.31

Dore Copper DCMC 4365 0.36 0.29 0.32 + 0.01

U.S. MARKETS / OCTOBER 31 –NOVEMBER 4, 2022

U.S. markets fell last week after the U.S. Fed eral Reserve increased its benchmark inter est rate by 75 basis points and Fed chairman Jerome Powell said talk of a pause in rate hikes to control decades-high inflation was “very premature.”

The Dow Jones Industrial Average fell 458.58 points or 1.4% to 32,403.22 and the S&P 500 dropped 130.51 points or 3.35% over the week to 3,770.55.

Potash producers were among the hard est hit mining stocks over the week, appar ent victims of too much of a good thing: high prices. Intrepid Potash, the biggest potash producer in the United States, fell the most, down 20% to US$36.21. Saskatoon, Sask.based Nutrien, the world’s largest fertilizer maker, dropped 11% to US$73.29.

High prices for potash are the result of lower global supplies because of sanctions against Russia and Belarus, the number two and three producers after Canada, respec tively. North American farmers, hit by high inflation that is also raising costs for other inputs such as diesel, reduced their fertilizer buying. That hurt third-quarter sales at both companies.

“During the third quarter, we saw a tempo rary reduction in potash purchasing in North America and Brazil, which has impacted our

sales volumes and realized prices in the sec ond half of the year,” Nutrien president and CEO Ken Seitz.

Bob Jornayvaz, Intrepid’s executive chair man and CEO, also noted in comments with Intrepid’s results that “the second half of 2022 has been slower than we previously expected. Both CEOs said they expected the market to remain constrained by limited supplies and they lowered their sales projec tions this year, while forecasting a rebound in sales next year. Nutrien said it would expand its Canadian potash output by 20% by 2025.

Southern Copper was among the lead ing gainers for the week, adding 14% to end at US$53.70 after rival Chinese-con trolled MMG said it would reduce output

VOLUME

WEEK (OOOs) HIGH LOW CLOSE CHANGE

Vale* VALE 309998 14.57 12.57 14.39 + 1.75

Yamana Gold* AUY 181122 5.00 4.04 4.89 + 0.42 Barrick Gold* GOLD 171382 15.50 13.01 14.20 1.11 Gold Fields* GFI 102547 8.95 7.28 8.51 + 0.34

Kinross Gold* KGC 102384 3.90 3.37 3.86 + 0.20

Freeport McMoR* FCX 94865 35.77 30.28 35.19 + 2.99 Cleveland-Clif* CLF 88041 13.58 11.83 13.02 0.43 Newmont Corp* NEM 51877 43.24 37.45 40.99 1.87

United States S* X 51343 21.24 18.92 20.62 + 0.11

Rock Tech Lithium lost 23¢ per share to $3.21 after the company released the results of a bankable project study outlining sub stantially higher capital and operating costs for its proposed lithium hydroxide con verter in Guben, Germany, than previously projected. Capital costs are now forecast at US$683 million, up from US$560.2 million estimated in a previous converter engineer

TSX-V GREATEST PERCENTAGE CHANGE

King Global KING 920 0.02 0.01 0.02 +200.0

iMetal Res IMR 1891 0.16 0.08 0.16 +158.3

Churchill Res CRI 1940 0.22 0.07 0.14 +115.4

Tombill Mines TBLL 1944 0.01 0.01 0.01 +100.0

MacDonald Mns BMK 630 0.01 0.00 0.01 +100.0

Waseco Res WRI 701 0.05 0.00 0.04 +100.0

Halcones Prec HPM 552 0.10 0.00 0.09 + 70.0

Sun Peak Metal PEAK 937 0.27 0.14 0.24 + 67.9

Southstone Min SML 39 0.03 0.00 0.03 + 66.7

X-Terra Res XTT 1402 0.03 0.00 0.03 + 66.7

Ross River RRM.H 84 0.08 0.00 0.06 78.8

Millennium Sil MSC 548 0.01 0.01 0.01 50.0

RT Minerals RTM 3 0.01 0.00 0.01 50.0

Aurcana Silver AUN 6724 0.01 0.01 0.01 50.0

Galore Res GRI 10 0.01 0.00 0.01 50.0

District Mines DIG.H 5 0.02 0.00 0.02 50.0

Bonanza Mining BNZ 16 0.06 0.00 0.06 42.1

Hanstone Gold HANS 67 0.10 0.00 0.06 40.0

Angold Res AAU 7459 0.07 0.03 0.05 40.0

Canadian Silv AGH.H 45 0.04 0.00 0.03 37.5

from its Las Bambas copper mine in Peru. Local Indigenous peoples have blockaded the mine, reducing supply into an already tight global market.

Southern Copper also benefited from sig nals that China will ease its strict Covid19-fighting policy, freeing up demand for industrial metals. Cohorts such as Vale and Rio Tinto also gained on the developments,

$419 million in the previous and correspond ing quarters. Adjusted net earnings per share fell to US13¢ apiece from US24¢ per share a year earlier, missing average analyst forecasts of US15¢ per share. Barrick said lower real ized gold and copper prices, lower gold sales volume, and higher gold cost of sales per ounce weighed on quarterly performance.TNM

TSX GREATEST VALUE CHANGE

VOLUME WEEK (OOOs CLOSE CHANGE

First Quantum FM 16634 29.30 + 4.60

Turquoise HIl TRQ 8316 41.60 + 3.32

Teck Res TECK.B 10643 45.61 + 3.19

Teck Res TECK.A 6 46.55 + 3.05

Suncor Energy SU 41969 48.70 + 2.84

MAG Silver MAG 1309 19.80 + 2.06

Labrador IOR LIF 1657 30.20 + 2.02

Altius Mnrls ALS 525 22.85 + 1.79

HudBay Min HBM 13399 6.82 + 1.51

Franco-Nevada FNV 2213 171.36 + 1.50

Nutrien NTR 10265 98.79 13.30

Newmont Corp NGT 1039 55.30 3.05

Agnico Eagle AEM 8093 58.51 2.93

Cameco Corp CCO 9135 30.76 2.23

Pan Am Silver PAAS 4731 20.10 1.99

Barrick Gold ABX 56345 19.13 1.69

Ero Copper ERO 1933 14.83 1.11

Energy Fuels EFR 2294 9.30 0.62

Equinox Gold EQX 8776 4.06 0.56

Endeavour Mng EDV 2824 24.31 0.28

ing study, released in late 2021. Rock Tech attributed higher capital and operating costs to inflation and tight global supply chains. The new study gives the project, which would be designed to produce 24,000 tonnes of lith ium hydroxide monohydrate annually, a pretax net present value of US$1.2 billion using an 8% discount rate and an internal rate of return of 24%. TNM

TSX-V GREATEST VALUE CHANGE

Comet Inds CMU 3 4.75 + 0.35

Critical Elem CRE 5276 2.19 + 0.31

Foran Mining FOM 2355 2.55 + 0.26

New Found Gold NFG 394 4.98 + 0.25

Goliath Res GOT 1048 1.59 + 0.25

NGEx Minerals NGEX 475 2.64 + 0.25

Atlas Salt SALT 1577 1.99 + 0.19

Nickel 28 NKL 169 1.05 + 0.18

Pac Booker Min BKM 57 1.25 + 0.17

Tudor Gold TUD 666 1.25 + 0.17

Sigma Lithium SGML 155 46.70 2.97

Metalore Res MET 17 2.25 0.75

EnCore Energy EU 412 3.30 0.37

Los Andes LA 27 14.32 0.33

IsoEnergy Ltd ISO 163 3.40 0.32

Rock Tech Lith RCK 344 3.21 0.23

E3 Lithium ETL 658 1.86 0.23

Uranium Roylty URC 662 2.92 0.22

Eloro Res ELO 383 3.08 0.22

Ross River RRM.H 84 0.06 0.21

adding 14% and 10% to close Nov. 4 at US$14.39 and US$58.34, respectively.

And investors priced in calls by alumi num maker Alcoa and others for the Lon don Metal Exchange to ban Russian metals from trading on the platform. Traders fear LME warehouses will become stockpiles of sanctioned material, while a ban would buoy prices. TNM

VOLUME WEEK (OOOs) HIGH LOW CLOSE CHANGE U.S. GREATEST VALUE CHANGE Arch Resources* ARCH 2066 161.95 +

VOLUME WEEK (OOOs) CLOSE CHANGE

11.83

HIl* TRQ 19371 31.56 27.43 30.90 + 9.9

Buenaventura* BVN 6816 7.37 6.36 7.37 + 9.2

Teck Res* TECK 34008 34.61 29.75 33.83 + 8.5

Intrepid Pots* IPI 2605 46.88 32.91 36.21 20.0

Nutrien* NTR 20149 86.32 69.16 73.29 11.0

Barrick Gold* GOLD 171382 15.50 13.01 14.20 7.3

Mosaic* MOS 22977 55.16 46.14 49.29 7.2

Nexa Resources* NEXA 2606 5.23 4.27 4.81 7.1

Cameco Corp* CCJ 28572 24.55 22.34 22.80 5.9

Ero Copper* ERO 505 12.30 9.56 11.05 5.4

Newmont Corp* NEM 51877 43.24 37.45 40.99 4.4

Agnico Eagle* AEM 20685 46.24 40.81 43.41 3.9

Alcoa* AA 32060 42.40 + 2.91

TRQ

Turquoise HIl*

Nutrien* NTR 20149 73.29 9.07

Intrepid Pots* IPI 2605 36.21 9.05

Mosaic* MOS 22977 49.29 3.85

Newmont Corp* NEM 51877 40.99 1.87

Agnico Eagle* AEM 20685 43.41 1.76

Cameco Corp* CCJ 28572 22.80 1.44

Black Hills* BKH 3095 64.74 1.13

Barrick Gold* GOLD 171382 14.20 1.11

MartinMarietta* MLM 2792 337.16 1.00

Metal

METALS, MINING AND MONEY MARKETS

LME WAREHOUSE LEVELS

Aluminium Alloy 2120 (0)

Aluminium 587,425 (19150)

Copper 119,375 (-17325)

Lead 28250 (-975)

Nickel 52884 (-1026)

Tin 4450 (-45) Zinc 47400 (-3,525)

PRODUCER AND DEALER PRICES

Coal: Central Appalachia, 12,500 Btu, 1.2 S02-R,W: US$182.10

Coal: Powder River Basin, 8,800 Btu, 0.8 S02-R, W: US$17.15

Cobalt: US$23.25/lb.

Copper: US$3.41/lb.

Copper: CME Group Futures December 2022: US$3.61/lb.; January 2023: US$3.61/lb.

Iridium: NY Dealer Mid-mkt US$3,940/tr oz.

Iron Ore 62% Fe CFR China-S: US$88.10

Lead: US$0.90/lb.

Rhodium: Mid-mkt US$13,990/tr. oz.

Ruthenium: Mid-mkt US$488 per oz.

Silver: Handy & Harman Base: US$20.62 per oz.; Handy & Harman

Fabricated: US$25.77 per oz.

Tin: US$8.21/lb.

Uranium: U3O8, Trading Economics spot price: US$51 per lb. U308

Zinc: US$1.22 per lb.

Prices current Nov. 6, 2022

TSX VENTURE SHORT POSITIONS

Short positions outstanding as of Oct 15, 2022

Short

Largest short positions

Ivanhoe Mines IVN 21307432 1045302 9/30/2022

Cameco Corp CCO 20207664 14119606 9/30/2022

Suncor Energy SU 15953854 949038 9/30/2022

Kinross Gold K 14474647 -1627037 9/30/2022

Barrick Gold ABX 13562873 -4860856 9/30/2022

New Gold NGD 11910168 -331509 9/30/2022

IAMGOLD IMG 11889095 -440069 9/30/2022

Lundin Mng LUN 10945805 116511 9/30/2022

Fortuna Silvr FVI 10903033 -283687 9/30/2022

Copper Mtn Mng CMMC 10397278 863751 9/30/2022

First Quantum FM 10046055 1015268 9/30/2022

B2Gold Corp BTO 9992191 947743 9/30/2022

Taseko Mines TKO 8745290 112529 9/30/2022

Nexgen Energy NXE 8742895 -279261 9/30/2022

Denison Mines DML 8512046 -1156184 9/30/2022

Largest increase in short position

Cameco Corp CCO 20207664 14119606 9/30/2022

Centerra Gold CG 5024714 1290440 9/30/2022

Ivanhoe Mines IVN 21307432 1045302 9/30/2022

First Quantum FM 10046055 1015268 9/30/2022

Suncor Energy SU 15953854 949038 9/30/2022

Largest decrease in short position

Sandstorm Gold SSL 2433851 -8893862 9/30/2022

Barrick Gold ABX 13562873 -4860856 9/30/2022

Kinross Gold K 14474647 -1627037 9/30/2022

Equinox Gold EQX 4394719 -1156338 9/30/2022

Denison Mines DML 8512046 -1156184 9/30/2022

(with changes from Sep 30, 2022)

Largest short positions

Gabriel Res GBU 14783517 14707405 9/30/2022

GoviEx Uranium GXU 5614103 2861995 9/30/2022

Pure Gold Mg PGM 2996400 885128 9/30/2022

Silver Mount AGMR 2753776 -187971 9/30/2022

Standard Uran STND 2456321 -37591 9/30/2022

Artemis Gold ARTG 2335834 961212 9/30/2022

Blackrock Silv BRC 2151630 -11581 9/30/2022

Blue Sky Uran BSK 2055240 -68144 9/30/2022

Reunion Gold RGD 1841262 1605224 9/30/2022

Silver Tiger SLVR 1601955 1102192 9/30/2022

New Found Gold NFG 1252170 -5207 9/30/2022

C3 Metals CCCM 1201000 -274213 9/30/2022

Giga Metals GIGA 1179065 -10286 9/30/2022

Guanajuato Sil GSVR 1152881 22598 9/30/2022

Nevada Expl NGE 992290 905050 9/30/2022

Largest increase in short position

Gabriel Res GBU 14783517 14707405 9/30/2022

GoviEx Uranium GXU 5614103 2861995 9/30/2022

Reunion Gold RGD 1841262 1605224 9/30/2022

Silver Tiger SLVR 1601955 1102192 9/30/2022

Artemis Gold ARTG 2335834 961212 9/30/2022

Largest decrease in short position

Aston Bay BAY 138723 -1064027 9/30/2022

Jourdan Res JOR 68136 -881902 9/30/2022

Norse Gold VKG.H 441 -835000 9/30/2022

Lion One Mtls LIO 135407 -832086 9/30/2022

Ultra Resource ULT 45010 -801920 9/30/2022

Alio Gold Inc. (ALO.WT) - 10 Warrants to purchase one common share of the Issuer at $7.00 until expiry

Alio Gold Inc. J (ALO.WT.A) - One Warrant to purchase one common share of the Issuer at $8.00 until expiry

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

Aris Gold Corporation (ARIS.WT.A) - One Warrant to purchase 0.5 of one Common Share of the Issuer at $2.75 until expiry

Aris Gold Corporation (ARIS.WT.B) - One Warrant to purchase of one Common Share of the Issuer at $2.21 until expiry

eCobalt Solutions Inc. J (ECS.WT) - One Warrant to purchase one common share of the Issuer at US$1.95 per share until expiry

Excellon Resources Inc (EXN.WT.A) - One warrant to purchase one common share of the Issuer at $2.80 until expiry

Excellon Resources Inc. (EXN.WT) - One Warrant to purchase one common share of the issuer at $1.40 per share until expiry

Excelsior Mining Corp. (MIN.WT) - One Warrant to purchase one Common Share of the Issuer at $1.25 until expiry.

ABE Resources Inc. (ABE.WT) - One warrant to purchase one common share at $0.15 per share.

Alpha Lithium Corporation (ALLI.WT) - One warrant to purchase one common share at $1.10 per share.

Alpha Lithium Corporation (ALLI.WT) - One warrant to purchase one common share at $1.10 per share.

American Cumo Mining Corp. (MLY.RT)2 rights and $0.07 are required to purchase one share

American Lithium Corp. (LI.WT) - One warrant to purchase one common share at $0.30 per share.

Antioquia Gold Inc. (AGD.RT) - One (1) Right and $0.042 are required to purchase one share.

Aurania Resources Ltd. (ARU.RT)Fourteen (14) Rights exercisable for one common share at $2.70 per common share.

Aurania Resources Ltd. (ARU.WT) - One warrant to purchase one common share at $5.50 per share.

Aurania Resources Ltd. (ARU.WT.A) - One warrant to purchase one common share at $4.25 per share.

Aurania Resources Ltd. (ARU.WT.B) - One warrant to purchase one common share at $2.20 per share.

Avidian Gold Corp. (AVG.RT) - Three rights and $0.11 are required to purchase one Share.

Boreal Metals Corp. (BMX.WT) - One warrant to purchase one common share at $0.50 per share.

Boreal Metals Corp. (BMX.WT) - One warrant to purchase one common share at $0.30 per share.

TSX WARRANTS

Gran Colombia Gold (GCM.WT.B) - One warrant to purchase one common share of the Issuer at $2.21 until expiry.

Karora Resources Inc. (KRR.WT) - One Warrant to purchase one common share of the Issuer at $0.50 until expiry.

Liberty Gold Corp. Wt (LGD.WT) - One Warrant to purchase one common share of the Issuer at $0.90 until expiry may 16, 2019

Lithium Americas Corp (LAC.WT) - One Warrant to purchase one common share of the Issuer at $0.90 until expiry

Lydian International Limited (LYD.WT)One Warrant to purchase one additional ordinary share of the Issuer at $0.36 per share until expiry

Nevada Copper Corp. (NCU.WT) - One Warrant to purchase one common share of the Issuer at $0.20 until expiry Nevada Copper Corp. (NCU.WT.A) - One Warrant to purchase one common share of the Issuer at $0.22 until expiry

Nomad Royalty Company Ltd. (NSR.WT)One Warrant to purchase one common share of the Issuer at $1.71 until expiry.

Novo Resources Corp. (NOVO.WT.A) - One Warrant to purchase one common share of

TSX VENTURE WARRANTS

Equinox Gold Corp (EQX.WT) - One warrant to purchase one common share at $3.00 per share.

Eros Resources Corp. (ERC.WT) - One (1) Right exercisable for (1) Unit at $0.05 per Unit.

Falco Resources Ltd. (FPC.WT) - One warrant to purchase one common share at $1.70 per share.

Firefox Gold Corp. (FFOX.WT) - One warrant to purchase one common share at $0.60 per share.

Firefox Gold Corp. (FFOX.WT) - One warrant to purchase one common share at $3.00 per share.

Freeman Gold Corp (FMAN.WT.U) - One warrant to purchase one common share at US$0.65 per share.

Giga Metals Corporation (GIGA.WT) - One warrant to purchase one common share at $0.60 per share.

Giga Metals Corporation (GIGA.WT.A)One warrant to purchase one common share at $0.45 per share.

Giyani Metals Corp. (EMM.WT) - One warrant to purchase one common share at $0.60 per share.

Goldstar Minerals (GDM.RT) - One Right to purchase one common share at $0.03 per share.

Goldstar Minerals Inc. (GDM.RT) - One (1) Right and $0.05 are required to purchase one common share.

Hot Chili Limited (HCH.WT) - One warrant to purchase one common share at $2.50 per share.

Kaizen Discovery Inc. (KZD.RT) - One warrant to purchase one common share at $0.51 per share.

the Issuer at $3.00 until expiry.

Novo Resources Corp. (NVO.WT.A) - One Warrant to purchase one common share of the Issuer at $3.00 until expiry.

Platinum Group Metals Ltd. (PTM.WT.U)One Warrant to purchase one common share of the Issuer at US$0.17 until expiry

Royal Nickel Corporation (RNX.WT) - One Warrant to purchase one common share of the Issuer at $0.50 until expiry.

Sandstorm Gold (SSL.WT.B) - One Warrant to purchase one common share of the Issuer at US $14.00 until expiry.

Sherritt International Corporation (S.WT)Each whole Warrant entitles the holder to acquire between 1.00 and 1.25 additional common shares (as bulletin 2018-0062 table ) determined based on the Applicable Reference Cobalt Price at an exercise price of $1.95 per Warrant at any time prior to the Expiry Date

Treasury Metals Inc. Wt (TML.WT) - One Warrant to purchase one common share of the Issuer at $1.50 until expiry.

Trevali Mining Corporation (TV.WT) - One Warrant to purchase one common share of the Issuer at $0.23 until expiry.

Millennial Lithium Corp. (ML.WT) - One warrant to purchase one common share at $4.25 per share.

Millennial Lithium Corp. (ML.WT) - One right to purchase one common share at $4.80 per share.

Millennial Precious Metals Corp. (MPM. WT) - One warrant to purchase one common share at $0.50 per share.

Mineworx Technologies Ltd. (MWX.RT)For every one (1) Share held, Shareholders will receive one (1) Right exercisable for One (1) Share at $0.015 per Share.

Mineworx Technologies Ltd. (MWX.RT)One right to purchase one common share at $0.015 per share.

Northern Vertex Mining Corp. (NEE.WT)One warrant to purchase one common share at $0.80 per share.

Novo Resources Corp. (NVO.WT) - One warrant to purchase one common share at $4.40 per share.

Orezone Gold Corporation (ORE.WT) - One warrant to purchase one common share at $0.80 per share.

Orezone Gold Corporation (ORE.WT) - One warrant to purchase one common share at $0.80 per share.

Osisko Development Corp. (ODV.WT) - One warrant to purchase one common share at $10.00 per share.

Rock Tech Lithium Inc. (RCK.WT) - One warrant to purchase one common share at $4.50 per share.

Sandfire Resources America Inc. (SFR.RT)

- Forty one (41) Rights exercisable for One (1) Share at $0.15 per Share.

Al Alloy 1690/1690 1640/1640 1640/1640 1590/1590 1590/1590

Aluminum 2158/2178 2170/2190 2265/2260 2296.5/2300 2225.5/2235.5

Copper 7660.5/7560 7534/7445 7762/7666 7775/7705 7663/7605

Lead 1935/1913 1891/1875 1898/1888 1883/1878 1940/1929

Nickel 22130/22250 22070/22025 22250/22445 22225/22370 22250/22350

Tin 18345/18350 18050/18050 18600/18600 18750/18500 18250/18250

Zinc 3010/2962 2918/2880 2976/2936 2983/2951 2912/2876

Gold AM 1646.35 1642.85 1670.80 1663.30 1649.25 Gold PM 1649.15 1659.25 1666.75 1659.75 1648.05 Silver 19.21 18.88 19.59 19.37 19.22 Platinum 930 911 935 952 950 Palladium 2002 1890 1965 1944 1908

Cabral Gold Inc. (CBR.WT) - One warrant to purchase one common share at $0.80 per share.

Caldas Gold Corp. (CGC.WT) - One warrant to purchase one common share at $2.75 per share.

Cascadero Copper Corporation (CCD.RT)One right and $0.015 are required to purchase one Share.

Cordoba Minerals Corp (CDB.WT) - One warrant to purchase one common share at $1.08 per share.

Cordoba Minerals Corp (CDB.WT) - One warrant to purchase one common share at $1.08 per share.

Cordoba Minerals Corp. (CDB.RT) - One (1) Right exercisable for One (1) Rights Share at $0.05 per Share.

Cordoba Minerals Corp. (CDB.RT) - One right to purchase one common share at $0.54 per share.

Denarius Silver Corp. (DSLV.WT) - One warrant to purchase one common share at $0.80 per share.

Elevation Gold Mining Corporation (ELVT. WT) - One warrant to purchase one common share at $4.80 per share.

Empress Royalty Corp. (EMPR.WT) - One warrant to purchase one common share at $0.75 per share.

LaSalle Exploration Corp. (LSX.WT) - One warrant to purchase one common share at $0.15 per share.

Lion One Metals Limited (LIO.WT) - One warrant to purchase one common share at $2.75 per share.

LithiumBank Resources Corp. (LBNK.WT)One warrant to purchase one common share at $2.00 per share.

LSC Lithium Corporation (LSC.RT) - One (1) right exercisable for One (1) Unit at $0.40 per Unit.

Mako Mining Corp. (MKO.RT) - Rights exercisable for One (1) share at $0.10 per share.

Mako Mining Corp. (MKO.WT.A) - One warrant to purchase one common share at $0.60 per share.

Manganese X Energy Corp. (MN.WT) - One warrant to purchase one common share at $0.15 per share.

Maple Gold Mines Ltd. (MGM.WT) - One warrant to purchase one common share at $0.40 per share

Maple Gold Mines Ltd. (MGM.WT) - One warrant to purchase one common share at $0.40 per share

Mexican Gold Corp. (MEX.WT) - One warrant to purchase one common share at $0.12 per share.

Sandfire Resources America Inc. (SFR. RT) - Eight (8) Rights exercisable for One (1) share at $0.06 per unit.

Silver Mountain Resources Inc. (AGMR. WT) - One warrant to purchase one common share at $0.70 per share.

Star Royalties Ltd. (STRR.WT) - One warrant to purchase one common share at $1.00 per share.

Three Valley Copper Corp. (TVC.WT) - 20 warrants to purchase one Class A common share at $6.66 per share.

Tintina Resources Inc. (TAU.RT) - Nine(9) Rights exercisable for one share at $0.06 per share.

Ucore Rare Metals Inc. (UCU.RT) - One (1) right exercisable for one share at $4.00 per share.

Vision Lithium Inc. (VLI.WT) - One warrant to purchase one common share at $0.15 per share.

Vizsla Silver Corp. (VZLA.WT) - One warrant to purchase one common share at $3.25 per share.

Westhaven Gold Corp. (WHN.WT) - One warrant to purchase one common share at $1.00 per share.

Yellowhead Mining Inc. (YMI.RT) - One (1) Right and $0.12 are required to prchase one Share

Re-Publishing

(short) tons 1 gram per (metric) tonne = 0.02917 troy ounces per (short) ton = 0.03215 troy ounces per (metric) tonne

1 kilometre = 0.6214 miles 1 hectare = 2.47 acres