The Northern Miner October 31 2022 Issue 22

Biden hands out

battery metals funding

BY COLIN MCCLELLAND

Albemarle (NYSE: ALB), Piedmont Lithium (NAS DAQ: PLL) and Talon Metals (TSX: TLO) are among the companies marked for US$2.8 bil lion in funding grants announced by U.S. President Joe Biden’s ad ministration this month to help the critical minerals industry meet electric vehicle and other green en ergy targets.

The White House selected 20 U.S. manufacturers and proces sors across 12 states for some of the first green metals funding from the US$135-billion pool initially approved almost one year ago in the Bipartisan Infrastructure Act.

The U.S. is among countries in the West that want to lessen depen dency on China, Russia and other countries like the Democratic Republic of the Congo that con trol global supplies in key miner als or mineral processing facilities needed for transitions to sustain able energy and widespread mod ern tech gadgets.

Charlotte, N.C.-based Albe marle will receive US$149.7 mil lion to build an initial processing facility for lithium that it plans to mine locally. The mineral would be further processed at another of the company’s plants to reach electric vehicle battery grade of more than 99% purity. The company says it is targeting annual output of 100,000 tonnes of lithium from what would be the largest plant in the U.S. The material would be enough to build some 1.6 million electric vehicles.

“Expanding our U.S. footprint also increases the speed of lithium processing and reduces greenhouse gas emissions from long-distance transportation of raw minerals,”

Albemarle chief executive officer Kent Masters said in an Oct. 19 press release. “We hope this proj ect spurs additional investment by others in the domestic EV bat tery supply chain, such as cathode manufacturers, battery makers, and auto manufacturers.”

The funding was routed through the Department of Energy after a White House steering commit tee selected the companies with input from the Energy and Inte rior departments, the White House said. The funding is part of a wider government package to give incen tives to buy electric vehicles, which has spurred companies themselves

to invest US$100 billion in elec tric vehicles, their batteries and charging stations, the administra tion said.

Also headquartered in North Carolina, Piedmont Lithium said it plans to use the US$141.7 mil lion from the program to build a US$600-million processing plant in Tennessee for material mined in Quebec — at its 25%-owned North American Lithium project — and Ghana. It aims to produce 30,000 tonnes a year, doubling current U.S. output of lithium hydroxide.

“This funding will enable us to accelerate detailed engineering and place orders for long-lead items,” Piedmont chief operating offi cer Patrick Brindle said in a press release.

Piedmont has a contract to sup ply Tesla but has yet to secure per mits for an US$840 million open pit mine in North Carolina due in 2026, according to Reuters.

Talon Metals is to receive US$114.8 million to build a pro cessing plant in North Dakota for

ore mined at its Tamarack nickel project in Minnesota.

Though on a cost-share basis and still subject to final negotia tions, the funding will go towards the project’s construction and exe cution and comprise about 27% of its total cost.

The proposed separation of mine and processing operations will create a new domestic bat tery-grade nickel and iron produc tion capability designed to meet the timelines set in the Biden Admin istration’s national blueprint for lithium batteries, Talon says.

Some US$661 million in federal funding went to various battery, lithium and graphite projects by Ascend Elements, Lilac Solutions, Cirba Solutions and a unit of Syrah Resources (ASX: SYR).

Biden wants half of the vehi cles sold in the U.S. by 2030 to be electric or hybrid plug-ins, and able to charge at half a million new charging stations. But the domes tic industry is constrained by low battery minerals production. Also, the administration set tough new requirements in August that US$7,500 EV buying incentives for consumers only apply to vehi cles without components sourced in foreign countries such as China.

“The lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle devel opment and adoption,” the White House said. “The projects will have positive impact on their own and also catalyze a whole U.S. industry in the critical phases of the battery supply chain.”

Bob Quartermain on respect, equality and ‘creating a good outcome’ for all

reflects

out

BY AMANDA STUTT

At the most recent Min ing Legends Speaker Se ries event at the Fairmont Pacific Rim in Vancouver, indus try veteran Bob Quartermain, re cently inducted into the Canadian Mining Hall of Fame, walked the audience through the milestones of a life’s work well worthy of the honour.

Organized by The Northern Miner, the Canadian Mining Hall of Fame and Young Mining Pro fessionals, the Mining Legends Speaker Series pairs CMHF induct ees with accomplished young talent (in this case, Andree St-Ger main, CFO of Integra Resources) and gives the audience a chance to ask questions to bridge the knowl edge gap in the industry — with eyes on the future of mining.

Quartermain was a founder and chairman of Pretium Resources, whose famed Brucejack, one of the highest grade gold mines in the world, was acquired in a $3.5-bil lion deal by Newcrest Mining (TSX: NCM; ASX: NCM) last year.

That trajectory originally began when Quartermain was a field geologist at Teck and made key resource discoveries at the Hemlo mine in Ontario.

“We could start to assay with our eyes,” he remembered. “I could look at a piece of drill core and tell you ‘that’s gonna run 10 grams or that’ll run 20 grams.’”

By visual indications alone, Quartermain thought the deposit hosted at least 2 million oz. gold. The mine has now produced more than 21 million ounces.

He went on to set up Silver Standard Resources for Teck, a company that evolved from a $2 million market cap startup into Pretium Resources, a company valued at over $2.5 billion.

Speaking eloquently and openly about coming out publicly as a gay man only this year, after a career spanning over 40 years, Quarter main said it was “a challenging commentary when you’ve actu ally spent much of your life in the closet.”

His perspective was that the mining industry wasn’t the most

comfortable place to come out as a gay man. He noted that in a world whose borders he traversed regularly as a field geologist for

Bob Quartermain. THE NORTHERN MINER

“WE HOPE THIS PROJECT SPURS ADDITIONAL INVESTMENT BY OTHERS IN THE DOMESTIC EV BATTERY SUPPLY CHAIN.”

KENT MASTERS CEO, ALBEMARLE

Talon Metals will receive a grant of US$114.8 million. TALON METALS

Marimaca Copper resource update confirms 2017 Chile discovery as one of decade’s largest

BY HENRY LAZENBY

Developer Marimaca Cop per (TSX: MARI; US-OTC: CROJF) has released an updated resource estimate for its namesake project in the Antofa gasta region of northwestern Chile, confirming it as one of the biggest copper discoveries of the past 10 years.

The Vancouver-based company reports a 98% increase in the mea sured and indicated resource ton nage of the Marimaca Oxide Deposit (MOD). The updated resource out lines 139.6 million tonnes grad ing 0.48% total copper (0.3% acid soluble copper) for about 665,000 tonnes of contained metal.

The inferred resource grew by 92% to 82.7 million tonnes grading 0.39% total copper (0.16% acid-sol uble copper) for about 323,000 tonnes of metal. The company used a US$4 per lb. copper price to esti mate the new resource.

The project has grown since its discovery in 2017 by Sergio Rivera, Marimaca’s VP of exploration.

President and CEO Haydn Locke told The Northern Miner in an interview that the significant

project milestone opens the door to increase the development produc tion scale in future development studies. He suggests the company will consider higher production cases of 50,000 and 60,000 tonnes per year of copper cathode in its feasibility study for the project, compared with the 36,000-tonneper-year life-of-mine average laid out in the August 2020 preliminary economic assessment (PEA).

Importantly, Locke says the high-grade core, which comprises the first six years of the PEA mine life, is expected to remain intact and accessible in a scaled-up devel opment scenario. It includes about 50 million tonnes grading 0.7%

total copper starting from surface with green oxide (the colour has been helpful in guiding exploration drilling) for about 350,000 tonnes of contained metal.

The mine plan calls for a low strip ratio of 1:1 maintained in constraining the pit shell, with all resources captured in a single con tinuous pit. “Low pre-strip and LOM strip ratio drive significant cost advantages,” said Locke.

“Our economic studies to date showed relatively low sensitivity to changes in the underlying cop per price assumption, indicating a high return on investment of 2021 and 2022 drilling campaigns as they pertained to resource growth for

the MOD,” Locke added.

The company’s 2020 PEA for Marimaca confirmed its potential to be a low capital cost, high-mar gin copper mine, aided by its location with easy access to infra structure, including power, trans port and water, as well as a highly skilled local workforce and simple logistics, says Locke.

The PEA pegged initial capital costs at US$285 million. Operating costs also fall in the bottom 15% of the all-in sustaining cost curve at US$1.29 per lb. over the mine life, which provides a cash margin of 65% at US$3.70 per lb. copper.

Exploration upside Locke sees opportunities for addi tional resource expansion at the project. Marimaca says mineral ization at the MOD remains open to the east, southeast, and downplunge, while satellite targets dis covered in 2021, less than 5 km away from the open pit — Mer cedes, Cindy, and Robles — pro vide solid targets for further mine life extension.

A significant amount of 2022 drilling remains to be captured in another resource update planned

in early 2023, targeting tonnage in the measured and indicated cat egories to support the eventual upgrade to reserves.

Importantly, Locke says the team has identified the poten tial for a new, higher-grade green oxide zone in the shallow north and north-eastern areas of the MOD, which could have positive grade implications for the next resource estimate.

“We have completed another 28,000 metres of drilling for which we are waiting on results. These will be released over the coming months and incorporated into a final (resource estimate) in early 2023, which will form the basis of our development plans for the project,” said Locke.

Early in September, Osisko Gold Royalties (TSX: OR; NYSE: OR) acquired a 1% net smelter return royalty covering the then-known mineralization and prospective exploration areas that constitute the project for US$15.5 million.

At press time in Toronto, Mari maca shares traded at $3.33 apiece in a 52-week range of $2.45 and $4.56. The company has a market cap of $293 million.

Left: Historical artisanal workings on high-grade portions of the Marimaca copper deposit. Right: A view towards the Marimaca Oxide Deposit in Chile. HENRY LAZENBY

“WE HAVE COMPLETED ANOTHER 28,000 METRES OF DRILLING FOR WHICH WE ARE WAITING ON RESULTS. THESE WILL BE... INCORPORATED INTO A FINAL (RESOURCE ESTIMATE) IN EARLY 2023, WHICH WILL FORM THE BASIS OF OUR DEVELOPMENT PLANS FOR THE PROJECT.”

— MARIMACA PRESIDENT AND CEO, HAYDN LOCKE

Left: Marimaca Copper president and CEO Hayden Locke (left) and Paola Kovacic, Marimaca’s exploration manager on site.

Right: Paola Kovacic, Marimaca’s exploration manager, performs a nail test on high-grade black oxide. HENRY LAZENBY

China’s Zijin to buy Rosebel from Iamgold for US$360M

BY CECILIA JAMASMIE

Canada’s

Iamgold (TSX IMG; NYSE: IAG) has agreed to sell its stake in the Roseb el gold mine in Suriname to Zijin Mining in a deal valued at US$360 million.

The Chinese miner will acquire Iamgold’s 95% interest in Rosebel Gold Mines, which owns the Rosebel operation and a 70% par ticipating interest in the Saramacca mine, a satellite operation.

Under the agreement, announced on Oct. 18, Zijin is also assuming Iamgold’s equipment lease liabilities amounting to about US$41 million.

The Toronto-based miner re vealed in January it was evaluat ing options for Rosebel and said the mine required a material capital in vestment to address certain chal lenges.

Iamgold said the proceeds of the sale would be invested in the ongo ing construction of the Côté gold project in northern Ontario, which is $1.9 billion over its original cost estimate of between US$879 mil lion and US$925 million. The com pany’s share of the cost overrun is US$1.3 billion.

Côté is expected to produce an average of 489,000 oz. of gold per

year in its first five years and an annual average of 367,000 oz. over 18 years of its planned mine life. It would be the company’s fourth mine.

Chairperson and interim pres ident and CEO Maryse Bélanger said that the transaction with Zijin was a significant step forward in pursuing Iamgold’s strategy of dis ciplined portfolio management.

“Rosebel has been an important contributor to Iamgold and we are pleased that a company with the

capabilities and reputation of Zijin will be taking over this operation,” she said.

The transaction is expected to close early in the first quarter of 2023 or earlier, subject to closing conditions being met.

On the news, Bank of America analysts upgraded Iamgold stock to a ‘buy’ rating from ‘underperform,’ saying the deal de-risks near-term capital funding needs for Côté. BofA estimates the transaction reduces Iamgold’s Côté funding

gap to an estimated US$288-388 million from US$648-748 million.

“In our view, the funding gap is very manageable now and could easily be addressed with further asset sales (such as the Boto proj ect, IAG’s other West African greenfield exploration/resourcestage properties) or with a stream on Côté. We see limited risk to the transaction closing/getting regula tory approvals given China (Zijin Mining domicile) and Suriname have good bilateral cooperation,”

the analysts wrote in a note on Oct. 19.

The value of the deal — US$360 million plus the equipment liabil ities of US$41 million — is well above the US$177-million carry ing value BofA analysts attribute to Rosebel and Saramacca.

Iamgold’s stock rallied 20% on the news to as high as $1.76 per share, amid a 52-week range of $1.26$4.74. At press time, shares traded at $1.81, giving Iamgold a market capi talization of $870 million. TNM

VENTURE ARTICLE

Sanu Gold intersects significant gold mineralization in pro-exploration Guinea

BY NORTHERN MINER STAFF

Sanu Gold (CSE: SANU), a Vancouverbased exploration company, isn’t wasting time or money. Three months after listing on the Canadian Securities Exchange, the company has announced assay results from the first holes of an initial reversecirculation (RC) drill program on its Daina gold exploration permit in Guinea’s prolific Siguiri Basin.

Sanu has three properties in northeast Guinea totalling 280 sq. km and is building on a significant termite-mound and rock-chipsampling campaign that was followed by 35,000 metres of shallow auger drilling. The Daina 2 Main Zone RC campaign began in mid-August.

Drilling has returned highlights of 5.48 grams gold per tonne over 15 metres, including 78.4 grams gold over 1 metre; 4.75 grams gold over 21 metres, including 85.5 grams gold over 1 metre; 1.99 grams gold over 37 metres, including 32.6 grams gold over 1 metre; 15 grams gold over 1 metre; and 1.23 grams gold over 15 metres, including 12.3 grams gold over 1 metre.

“Drilling has begun to define a moderately dipping mineralized structure intersected on the three 65-metre spaced lines drilled to date,” said Martin Pawlitschek, president, and CEO of Sanu. “As we progress through this first and subsequent phases of drilling, we will continue to test the downdip extent of the Daina 2 Main Zone, as well as lateral extensions along its potentially 4-km-long strike extent.”

Other results include 5.5 grams gold per tonne over 11 metres, including 56.6 grams gold over 1 metre.

“Using termite mound sampling and shallow auger drilling, we have defined gold bleeding out of kilometer-scale structural trends on all three permits,” said Pawlitschek, who has over 20 years experience working in West Africa – noting the company has an experienced team in West Africa and Canada.

Sanu plans on 10,000 to 15,000 metres of drilling from mid-2022 to early 2023, starting with the Daina permit followed by drilling at its Diguifara and Bantabaye properties.

“What I really love about this area is that once you have exploration permits, you can go on the ground and drill holes,” Pawlitschek said.

“You don’t have to wait six to nine months for permit access to a small drill pad, which you must do in many other parts of the world. Guinea is pro-exploration, investment, and development. That doesn’t mean

you behave like a cowboy. There are industry standards for environmental management and community engagement that Sanu applies.”

West Africa is a prolific gold mining region, said Pawlitschek. The Siguiri Basin hosts several multi-millionounce gold mines and deposits, including AngloGold Ashanti’s (NYSE: AU) Siguiri mine, Hummingbird Resources’ (LSE: HUM) Kouroussa development project and Predictive Discovery’s (ASX: PDI) recently discovered Bankan deposit.

Mapping and sampling of artisanal gold workings have helped Sanu understand important structural trends and geological parameters.

In some places, local residents strip the top layer of laterite and dig small pits – providing a convenient window into the bedrock. In most cases, though, artisanal miners dig 10- to 15-metre vertical shafts, then tunnel

horizontally along paystreaks.

“The artisanal workings tend to fall within the trends we’ve mapped out,” said Pawlitschek. “They are broadly coincident, but they are much smaller scale than what we’ve defined with the geochemistry. Most of our RC drilling will take place under auger-drill defined anomalies. Although, there’s one site where we are drilling reversecirculation holes under a larger set of artisanal workings, which is right on trend with our auger anomalies.”

In terms of raising additional funds for exploration, drilling the correct targets early on is Sanu’s largest challenge.

“The size of the gold anomalies that are being outlined means the company must carefully consider prioritized targets because you only have so many dollars for exploration and drilling,” said Fiona Childe, a geologist and Sanu’s vice-president

of corporate development and communications. “When you have multi-kilometre gold anomalies, you must decide where you’re going to get the best return with the meterage available.”

The company has expanded gold anomalies identified by other companies in previous exploration programs, said Pawlitschek. The prior work facilitated fundraising before Sanu’s IPO, and enabled the company to drill shortly after listing in July.

“Normally a company will spend one or two years working up the targets before they get to drilling, which is difficult even in a good market, let alone in a challenging one,” he said. “Other than that, we are following the typical approach for West Africa. It’s the same methodology that was used to discover the Bankan deposit, which is now over 4.2 million ounces.”

Assembling a large West African land package with quality targets on reasonable terms is challenging, said Childe, noting the Sanu team has been able to advance the project rapidly and systematically.

“Having a 4.2-million-ounce discovery in the same geological area and region is very attractive in terms of Sanu’s modelling,” she said. “Being able to point to a success story like that very nearby is another incentive for people to be interested in our potential.”

The preceding Joint Venture Article is PROMOTED CONTENT sponsored by SANU GOLD CORP. and produced in co-operation with The Northern Miner. Visit www.sanugoldcorp.com for more information.

GOLD | BofA upgrades Iamgold from ‘underperform’ to ‘buy’ as sale reduces Côté funding gap

Reverse-circulation drilling underway on Sanu Gold’s Daina gold exploration permit in Guinea, West Africa. SANU GOLD

Left: Iamgold’s Rosebel open pit gold mine in Suriname.

Right: Inside the processing plant at Rosebel. IAMGOLD

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Indigenous-led EAs are on the horizon

At the recent Indigenous Led Projects Forum in Toronto in late September — the first event of its kind — co-host Michael Fox shared some of the big changes that he’s seen in Canada’s Indige nous communities over his lifetime.

BY DR CHRIS HINDE Special to The Northern Miner

The 54-year-old said it wasn’t until the 1980s that an Indigenous family member owned a car — a sym bol of success. Later, the high water mark was the first Indigenous person he knew who owned their own house.

BY ALISHA HIYATE

Fast forward to today, and Fox, the founder and president of consul tancy Indigenous Community Engagement (ICE), and co-chair of PDAC’s Indigenous Affairs Committee, sees an entirely different level of economic possibility emerging.

“I think the new Indigenous ecosystem is about Indigenous-led envi ronmental assessments, Indigenous-led projects, Indigenous-led econo mies,” he said.

Fox contrasts that with historic public policy, which created an Indig enous ecosystem of “complete dependency by design,” and “created the socioeconomic conditions you see across Canada” in many Indigenous communities. “It’s only (recently) that there’ve been efforts to try to create inclusive mechanisms to overcome the exclusionary practices of the past,” he says.

Fox says that the ecosystem has started to evolve towards Indigenous participation, Indigenous partnerships and beyond, as communities seek to take control of their economic destiny. In other words, something well past mere consultation and the now-standard impact benefit agreements.

That includes new developments in Indigenous finance, ownership, and in one of the most important trends with regard to resource development, the emergence of Indigenous-led environmental assessments.

Two of ICE’s clients, the Ring of Fire First Nations communities, Marten Falls and Webequie, are advancing their vision for an all-sea son road leading into the Ring of Fire and their communities (the road is being advanced in three sections, with each community leading EAs for their own section, and co-leading an EA for a third section). In a first for Ontario, Indigenous proponents are leading the environmental assess ment process — without a government or private sector partner, although it is being funded by the province.

Fox says the process shows the clear benefits to Indigenous-led environ mental processes.

“They know their land,” he says, adding they’ve used that knowledge, including their understanding of the landscape, the location of sacred sites or other sites of cultural significance, and land utilization patterns, to plot the proposed route into the Ring of Fire and their communities.

“When you’re designing a road and if the community is leading it, it’s going to save you time and energy in the future. If you’re just an outside third party and you’ve got this conceptual route ‘cause you think it’s the most technically feasible based on your own desktop train analysis, you may end up spending a lot of time re-routing it as you’re interacting with the communities. When a community helps or is leading it, they can actu ally help shape that project (so it’s) socially acceptable by the community.”

While Indigenous-led EAs are a recent development, there are a hand ful either under way or completed. Those include the Squamish Nation’s EA for the Woodfibre LNG project in B.C., which resulted in the First Nation being the first non-treaty Nation to be recognized as a regulator.

Given that fear of negative environmental impacts are often the num ber one concern for Indigenous communities in assessing resource devel opment on their traditional lands, Indigenous-led EAs offer companies a chance to build trust and earn buy-in from communities, while demon strating a commitment to reconciliation.

Although there are clear benefits in terms of greater project certainty, there are also potential drawbacks: Cost, and complexity could increase while timelines could be either shortened or lengthened, depending on the project and community.

And how this will fit in with the apparent new urgency of the Canadian and U.S. governments to get projects built more quickly — as evidenced particularly by recent comments by Canada’s Natural Resources Minis ter Jonathan Wilkinson about the need to streamline federal and provin cial processes in order to meet clean energy requirements — is an open

Withannual financial budgets looming, the end of October is a frightening time in the calen dar. This year is especially scary because of the considerable polit ical and financial uncertainty. Soaring inflation, energy supply concerns and exchange rate vol atility mean that the macroeco nomic environment is weighing on all metals prices, regardless of fundamentals.

Halloween is also upon us, and darker forces than accoun tants and analysts might be at work. Scotland is to be thanked for a word derived from a mid18th century term for the evening before All Hallows’ Day, which is itself an English phrase from the mid-16th century for All Saints Mass Day. Nov. 1 is the day in the liturgical year dedicated to remembering the dead, including saints (hallows), martyrs and all of the departed faithful.

The rituals are easily explained, as humour and ridicule have long been brought to bear in confront ing the power of death.

In England, Halloween is closely followed by Guy Fawkes Night.

In 1605, a group of Catholics plotted to blow up the House of Lords during the state opening of Parliament on Nov. 5. The plan was to assassinate the Protestant King James I and replace him with his nine-year-old daughter, Princess Elizabeth Stuart (15961662).

Guy Fawkes (1570-1606), who had 10 years of military expe rience fighting for the Spanish during the 80-year Dutch revolt, was given charge of the explo sives, but was discovered after an anonymous letter exposed the conspiracy. Although not the leader, Fawkes became synony mous with the Gunpowder Plot, the failure of which is popularly commemorated annually with bonfires and fireworks.

For the mining industry, it’s not just ghosts and papist plots to be worried about. According to the latest price forecasts from S&P Global Market Intelligence (SPGMI), the consensus amongst commodity analysts is for the price of most metals to average less this year and next than they did in 2021.

The only exceptions amongst the major metals are gold (which averaged only US$1,799 per oz. last year), aluminum, cobalt, nickel, zinc and uranium. The latter is the big winner from the energy crisis caused by Rus sia’s invasion of Ukraine, with a consensus average price of over US$48 per lb. this year and almost US$54 in 2023, compared with an average of barely US$36 per lb. in 2021.

Despite this gloomy scenario, SPGMI reports that global non ferrous exploration expenditure this year is likely to be up 16%, compared with annual budgets last year, to US$13 billion.

Exploration budgets for almost all commodities have increased, with gold and ‘green’ metals (including copper, lithium and nickel) leading the way. SPGMI notes that budget allocations across all stages of exploration have posted increases, although companies are still focusing mostly on exploration at, and

around, existing mine sites. Nevertheless, with metals prices and financings having fallen during the second half of 2022, it seems likely that explo ration budgets for next year will decline. This likely restriction on exploration spending has already been seen in capital expenditure patterns and equipment budgets.

By some measures, capex by commodity producers is at an alltime low, and barely one-quarter what it was 10 years ago. At the end of September, Otavio Costa (a portfolio manager at Cres cat Capital) wrote that capex for commodity producers has “just hit new lows when adjusted for GDP levels,” and observed “Fed tightening and capital availability drying up certainly doesn’t help.”

Commodity producers with market capitalization of over US$1 billion (on U.S. and Cana dian stock exchanges) currently have barely US$100 billion of capex (aggregate past 12 months, based on Bloomberg data). This contrasts with over US$450 bil lion in 2012-14 and 2008 (all adjusted for GDP).

As Costa noted, this capex data suggests “supply constraints are likely to stay with us for a long time.” It is also reflected in equipment orders. The Penn sylvania-based market research company Parker Bay recently reported that unit shipments of mining equipment increased 1.7% in the three months to the end of June. However, the mix shifted to smaller, lower value products such that second-quar ter deliveries actually declined 7.4% overall compared with valu ations in the first quarter.

Geographically, Parker Bay reports that the most significant change was for mines in Russia/ CIS. The region has surged for several years with deliveries sec ond only to Australasia during the expansion that began in late 2020. In this year’s second quar ter, however, this changed dra matically, with shipments down over 30%, “mostly likely reflect ing a myriad of economic dislo cations brought on by the war in Ukraine.”

Shipments to Australasian mines likewise declined, but by a more modest 15% (and this fol lowed an extremely strong first quarter, where shipments rose by one-third). Latin America was the third region to decline during the quarter but by only 10%. The other four regions showed increases in quarterly equipment shipments; Africa and Asia were up by 88% and 53% respectively (following very weak first quarter totals), North American mines took deliveries of machines val ued at 9% more than in the first quarter (and exhibited a gain of over 30% compared with yearago deliveries), and equipment shipments to Europe and the Middle East were up 16%.

Parker Bay’s Surface Mining Equipment index (in real dollars) is back below 90, compared with the peak of over 170 a decade ago. It remains to be seen whether the latest results represent the begin ning of a market contraction, or merely a pause in a soon to resume expansion. Frightened? 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.

THE VIEW FROM ENGLAND: COLUMN | A scary time for everyone as gloomy mining and exploration forecasts show

New Pacific advances Silver Sand in Bolivia

BY TOM AZZOPARDI ORURO, BOLIVIA

Looking down into the deep ravine in the centre of New Pacific Metals’ (TSX: NUAG) Silver Sand project in central Boliv ia, one does not have to be a geol ogist to spot its potential. Up and down its steep sides, the landscape is pockmarked by adits and tunnels dug by miners almost 500 years ago as well as their houses, a smelter, a church and even a bank.

The miners may have left after the discovery in 1545 of Cerro Rico, Bolivia’s legendary mountain of silver, just 35 km away, suggests New Pacific ’s VP exploration Alex Zhang. That’s been to New Pacific’s gain. After acquiring the project six years ago, the company has under taken the first modern exploration of the site, identifying silver min eralization that could soon support the country’s next major silver mine.

An initial resource published in early 2020 pegged measured and indicated resources at almost 156 million oz. of silver in 35.4 million tonnes at an average grade of more than 137 grams silver per tonne. Since then, despite the restrictions imposed by the pandemic, the company has continued to explore, expanding Silver Sand, located about 180 km southwest of the city of Oruro, and adding new projects to its portfolio.

A first mover into Bolivia, New Pacific Metals is building on its early success. And backed by major share holders Silvercorp Metals (TSX: SVM) and Pan American Silver (TSX: PAAM), which together own almost 40% of the company, New Pacific could now be on the cusp of realizing the gains of its early bet on Bolivia’s potential.

Despite a proud mining heritage, investors had largely avoided land locked Bolivia following a spate of nationalizations under leftist leader Evo Morales who served as presi dent until 2019.

But with natural gas reserves dwindling — threatening its main revenue source — a new govern ment realizes it needs foreign cap ital and knowhow to revitalize the mining sector. President Luis Arce’s economic plan calls for five new mines to be brought into pro duction by the time he faces elec tions in 2025. That will be a tall order, but Silver Sand is well-posi tioned to be in the first rank.

Upcoming PEA

With an updated resource estimate about to be published, New Pacific is planning to complete a prelimi nary economic assessment by the end of the year which should lead to a prefeasibility study during 2023. In parallel, the company has begun applying for an environ mental permit which it expects to obtain by next year, allowing con struction to start in 2024.

The team has also identified pos sible locations for the mill and tail ings facility.

New Pacific is no longer the only company pursuing Bolivia’s considerable mineral potential. Since it acquired Silver Sand, more than half a dozen mining compa nies have moved into the country acquiring both operating mines and exploration projects. Earlier this year Santacruz Silver Min ing (TSX: SCZ) closed a deal to buy three operating zinc mines and a trading station from Glencore, Andean Precious Metals (TSX: APM) has bought the San Bar tolome mine on the slopes of Cerro Rico, while Eloro Resources (TSX: ELO) is exploring the Iska Iska

project in southern Bolivia.

But while competition has increased for assets, New Pacific is taking advantage of its first mover status.

In 2021, the company staked the Carangas project in the arid plains of western Oruro Department, close to the border with Chile. Like Sil ver Sand, the site shows widespread evidence of colonial-era mining, including shafts and slag piles.

Unlike Silver Sand, which is located in Bolivia’s silver-tin belt, Carangas sits in the Andean epith ermal belt which runs up the Chil ean Andes and into southern Peru, hosting some of the world’s larg est copper-gold deposits, including Quebrada Blanca and Collahuasi. However, the belt has seen little exploration on the Bolivian side of the border.

Following Spanish mine work ings, Zhang and his team initially concentrated drilling on the large hill, named West Dome, which dominates the site, establishing the existence of a wide area of near-sur face silver mineralization, measur ing 700 metres wide and 1 km long.

But drilling in the valley inter cepted a broad area of high-grade gold mineralization underlying the silver zone. One hole intercepted almost 600 meters of mineralized rock grading 1 gram gold per tonne.

“Once we started drilling, we couldn’t stop because every hole hit a very long intercept of mineraliza tion,” explained Zhang. Last year’s 3,000-metre campaign quickly expanded to 13,000 metres.

Encouraged by the find, the company is drilling 40,000-metres at Carangas this year with the aim of building up its knowledge of the

discovery as quickly as possible. New Pacific now has five rigs turning round the clock at the site, two assessing the size of the silver mineralization and three chasing the gold. To test the depth of the gold mineralization, the company has drilled the deepest hole ever in Bolivia.

The company is planning to publish a first resource for the site as soon as the middle of next year.

“Some exploration companies would spend years and years get ting to a mineral resource. We want to create value for sharehold ers fast,” explains Zhang.

Although the project remains at

an early stage, New Pacific’s success at Carangas has already attracted the praise of authorities in Bolivia.

Visiting the site in early Septem ber, Mining and Metallurgy Minis ter Ramiro Villavicencio welcomed the company’s positive results and the impact of the project on the local economy.

“This is going to bolster mining in Oruro and not only in tin. We are talking about mining continu ing until 2050,” he said. TNM

Left: A site tour of New Pacific Metals’ Silver Sand project in Bolivia.

Below: Drill core from New Pacific’s Carangas project. SERGIO BASTANI

Royalty firm Ecora plans transition to green metals despite lucrative coal contract

BY COLIN MCCLELLAND

Ecora Resources (TSX: ECOR), a mining royalties company, is betting its shift to green-economy investing in proj ects by giants such as Vale (NYSE: VALE) and Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO) will propel it through a looming recession.

The London-based company formerly called Anglo Pacific has a US$200-million war chest in revolving credit from lenders such as CIBC, Scotiabank and RBC while on track to double last year’s revenue.

Ecora began revamping its strat egy away from coal in 2017 to invest primarily in copper, nickel, and cobalt projects among other commodities key to electric vehi cles, environmental power genera tion and modern tech gadgets.

“If someone is keen to get exposure to these commodities and wants to do it in a relatively de-risked way, i.e., the royalty model, Ecora is a pretty unique proposition,” chief executive offi cer Marc Bishop Lafleche said in an Oct. 18 interview in Toronto. “We’ve built a company that is fun damentally positioned to a more sustainable world.”

The alternative financing pro vided by streaming and royalties companies has grown from US$2.1 billion in 2010 to more than US$15 billion in 2019 although it’s less than 3% of the mining industry’s debt and equity financing, accord ing to McKinsey & Co. Mining companies appreciate the option’s longer payment terms than tradi tional debt while being less dilutive than equity deals. There’s “room for significant growth” as the roy alty concept spreads beyond its concentration in North America and miners adopt it to fund oper ation by-products like cobalt, the consultant said in a 2021 report.

Ecora, which bills itself as the largest LSE-listed royalty com pany that doesn’t focus on precious metals, is tapping into the surging trends of smart technologies and electrification. Still, Ecora’s record revenue in this year’s first half was based on coal.

Royalty income through June of US$92.8 million was greater than its entire income last year of US$85.6

million, as it gained from soaring prices for coking coal from the Kes trel mine in northeastern Australia.

The operation run by Hong Kongbased EMR Capital and PT Adaro Energy of Indonesia accounted for US$70.9 million or 76% of Ecora’s half-year income. Ecora’s 7%-to40% (depending on the value of the coal) gross revenue royalty expires in 2026 when Ecora moves entirely out of coal.

The company started as Diversi fied Bank Shares in 1967, changed its name to Anglo Pacific Group in 1997 - although it had no con nection with the Anglo American group - before it adopted Ecora this month. The name combines letters from the words energy, commodi ties and royalties.

South32 royalty buy

In July, Ecora paid US$47.6 mil lion and 17% of its shares, valued at US$82.4 million, to Perth, Aus tralia-based miner South32 (ASX: S32) for its royalties portfolio. The acquisition of four streams from early or development stage cop per and nickel projects reflects the company’s new strategy, Lafleche said.

“It really changed the complex ion of our business and portfolio,”

the 38-year-old former investment banker for Citigroup said. “We have a growth-style portfolio, so assets that are not in production yet, which in the medium term are expected to come into production.”

With its 17% of shares, South32 is Ecora’s largest shareholder, fol lowed by London-based Schro der Investment Management with 11%, Aberforth Partners of Edin burgh holding 7.4% and Van couver-based Canaccord Genuity Wealth Management with 4.7%, Ecora said.

One key, green economy com modity eluding Ecora for now is lithium — used in electric vehi cle batteries — because its price has rocketed almost seven-fold since August last year to around US$74,889 per tonne this week.

“Could it stay at these levels?” Ottawa native Lafleche said. “How long, where does it end up, what’s the right long-term price? That’s a bit less clear, it’s a rapidly growing market.”

Ecora could add lithium by investing in the growth of early or development stage projects. It is already doing that with BHP’s (NYSE: BHP; LSE: BHP; ASX: BHP) Pilbara iron ore project in western Australia, chromite from

Ring of Fire Metals’ Eagle’s Nest deposit in northern Ontario, and Capstone Copper’s (TSX: CS) Santo Domingo mine in Chile.

Lafleche, who joined Ecora nine years ago and became CEO in April, sees a clear trend in how downstream mineral buyers, such as Tesla (NASDAQ: TSLA) and General Motors (NYSE: GM), are keen to secure lithium sources of their own. Tesla boss Elon Musk had considered buying 40 sq. km of lithium-bearing clay in Nevada. GM invested US$69 million last week in a Queensland Pacific Met als’ (ASX: QPM) nickel and cobalt project after buying a stake last year in Controlled Thermal Resources’ Hell’s Kitchen lithium project 260 km southeast of Los Angeles.

While most economists are fore casting a slowdown if not recession early next year as rising interest rates to control decades-high infla tion bite into economies, Ecora chief financial officer Kevin Flynn sees opportunities.

“The royalty and streaming model works best in times of vol atility and to some degree down turns in equity markets, where our capital is required more,” Flynn said in the same interview. “We’re very well capitalized and generating

a lot of cash flow and that puts us in a strong position to act opportu nistically.”

Mining royalty companies have been considered lenders of last resort, but Ecora’s executives say the stigma has lifted over the past 15 years as the concept has become more common among growth-fo cused explorers and miners. Also, Ecora sees greater opportunity in the less competitive space of sus tainable industries fighting climate change compared with precious metals.

Ecora’s share price touched $3.23 in April and closed at $2.25 on Oct. 20, valuing the company at $580 million. This year’s interim dividends totalled 4.59¢ per share, a yield of about 5%, Lafleche said. Part of the appeal to investors is exposure to commodity price gains without suffering high-inflation operating costs, he said.

Half of Ecora’s 18-stream portfo lio is producing, including its 23% slice of cobalt from Vale’s Voisey’s Bay nickel mine in Labrador. Ecora earned US$13.9 million gross rev enue in this year’s first half from the streaming royalty after invest ing US$205 million in the proj ect, according to the company. The mine life is projected to 2035, although Ecora says the stream will decline by half when delivery tar gets are met.

Vancouver-based Capstone is third in generating income for Ecora. Its Mantos Blancos open-pit mine in northern Chile’s Antofa gasta Region supplied US$3.1 mil lion to Ecora’s first-half gross revenue from a 1.5% net smelter return (NSR) royalty, filing doc uments show. A total of US$2 million in the same period came through a 2% NSR from the Maracás Menchen vanadium mine in Brazil run by Toronto-based Largo (TSX: LGO).

“Look at the Canadian assets in our portfolio and some of the non-Canadian assets in the hands of Canadian operators,” CFO and Dublin native Flynn said. “We feel like we’re probably the largest Canadian royalty company that a lot of people in Canada have never heard of.”

question.

Most of all, mining companies fear a loss of control if they agree to hand over the EA process to be led or co-led by an Indigenous com munity, says Hans Matthews, a geologist, founder of the Canadian Aboriginal Minerals Association, and a member of Wahnapitae First Nation in northern Ontario.

“There’s still a lingering lack of trust,” says Matthews, who also recently joined Odonaterra, an Ontario-based consultancy special izing in supporting communities with Indigenous-led impact assess ment, environmental community planning, and socioeconomic mon itoring in resource development.

“That’s been the barrier to (part nering on) this full-blown environ mental assessment process. The company would rather put their trust in their VP of Environment to manage a big company like Stantec or Golder, or Wood....” Matthews says.

“They won’t go to a commu

nity and say, ‘Hey, we’ll fund the EA process like we would normally have to do, and you guys man age the Stantecs, the Golders, the Woods and work with their scien tists and merge traditional knowl edge with Western knowledge. And at the same time, we can be partners in the development.”

Matthews, who was involved in the joint review panels for the Grassy Mountain coal project in Alberta and the Northern Gateway Pipeline — believes the outcomes for those failed projects could have been different if Aboriginal groups had more ownership over the envi ronmental assessment process.

He adds that in addition to avoiding delays, greater Indigenous involvement in EAs can help build capacity in communities — some thing that will benefit the resource industry, too.

“It’s not necessarily going to be a cakewalk, but it’ll be certainly a lot easier for companies to communi cate with (communities) and for Indigenous groups to communi cate with them.”

EDITORIAL from 4

Vale’s Voisey’s Bay nickel mine in Labrador. VALE

TNM

Top gold assays for the week of Oct. 14-21

HENRY LAZENBY

Our TNM Drill Down feature highlights the top gold assays of the past week. Assays are ranked by gold grade x width, as identified by our sister company Mining Intelligence (www.miningintelligence.com).

Freegold Ventures (TSX: FVL) reported this week’s top gold assay when it released on Oct. 18 the latest six assay results from an ongoing drilling campaign on the Golden Summit project near Fairbanks, AK. Diamond drill hole GS2221 intersected 420.7 metres, grading 1.36 grams gold per tonne from a depth of 294.7 metres, giv ing it a width x grade value of 527. Along with a second hole, GS2136, drilled in the project’s emerg ing Tolovana Area, the company interprets the holes as demon strating the potential for broad zones of higher-grade mineraliza tion. The company aimed GS2221 towards intercepting the down dip of the high-grade mineraliza tion intersected in GS2121, where the bottom 62.4 metres from 492.9 metres depth averaged 4.54 grams gold per tonne and included sev eral other high-grade intercepts. GS2221 intersected 73.1 metres,

TNM DRILL DOWN

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grading 4.26 grams gold per tonne within the lower part of a broader mineralized zone.

The week’s second-best drill hole comes from K92 Mining (TSX: KNT) and its Kainantu proj ect in Papua New Guinea. The company also announced on Oct. 18 that diamond hole KUDD0017

in the Judd South Zone returned 25 metres grading 18.53 grams gold per tonne from 188 metres depth, for a width x grade value of 463. K92 said the hole recorded several intersections in a dilatant zone. The company explains Dila tant zones have the potential to deliver significant endowments at

Lithium producers in ‘generational challenge’ to meet 2050 demand, Benchmark Intelligence report finds

BY HENRY LAZENBY

The world will need to pro duce 11.2 million tonnes of lithium carbonate equiv alent (LCE) by 2050, or 20 times the 2021 output, to meet growing demand from automakers and energy storage applications, new data from Benchmark Mineral Intelligence (BMI) shows.

By that time, the bulk of demand would come from energy storage applications, accounting for about two-thirds of the battery market.

In the nearer term, 2.9 million tonnes of LCE will be needed by 2032, more than the 2.7 million tonnes of cumulative global lith ium output between 2015 and 2022, according to Benchmark’s Lithium Forecast.

According to the critical met als analyst, the data highlights the challenge of scaling up lith ium production from new mining projects, which can take over five years to bring online.

“The long-term path for lith ium is set, yet the supply chain scaling challenge has just begun,” says BMI CEO Simon Moores in a statement.

“This data shows that we are at just the beginning of a gener ational challenge, not one that’s going to be solved in the 2020s.”

2040, all of the lithium

mined last year will only meet one month’s demand, even with the supply from recycled batteries.

BMI’s analysis highlights the emergence of lithium recycling as an increasingly important piece of the supply puzzle. Without recy cling, the world will need 234 new lithium mines by 2050 to meet this staggering demand. BMI currently tracks just 40 mines which pro duced lithium this year.

Benchmark forecasts that in 2040, nearly 20% of lithium chem icals will be produced from recy cled batteries or process scrap.

Leading up to 2050, many countries will transition their fleets to EVs. This has been the primary driver of growth in recent years. In 2015, EVs rep

resented just 39% of battery demand, increasing to 79% this year, as assessed by Benchmark’s Lithium-ion Battery Database.

Meanwhile, The Northern Min er’s sister publication, MINING. com, reported that BMI’s latest price assessment shows lithium prices in China hit an all-time high on Oct. 12 as battery manu facturers scramble to secure sup ply amid booming demand from the electric car market.

According to the battery sup ply chain researcher and pricing agency, Chinese battery grade lith ium carbonate rose by more than 1.7% in the second half of October to reach an all-time high exceed ing US$74,475 a tonne, more than doubling in 2022.

even moderate strike lengths. The company reports the potential for Kainantu to host several more of the prospective dilatant zones.

The third-best assay result of the week came from Arras Min erals (TSXV: ARK), which on Oct. 19 reported that hole Bg21007 drilled at its Beskauga project in Kazakhstan hit 1,124.1 metres grading 0.4 grams gold per tonne from 46 metres depth, giving a width x grade value of 449. The hole assayed 0.61% copper-equiv

alent, including 0.25% copper, 1.7 grams silver per tonne and 28.2 parts per million molybdenum. According to the company, the hole demonstrated the continuity of the copper-gold mineralization over broad intervals, with highgrade mineralization dipping to the south-southwest of the deposit. The host diorite is said to be con tinuously mineralized through out, and the hole remains open at depth, ending in high grades up to 0.78% copper-equivalent.

ANALYSIS | Research consultancy shows that the world needs to produce 20 times more LCE by 2050 than in 2021

Freegold Ventures reported the highest-grade assays during the week of Oct. 14-21 from its golden Summit project in Alaska. FREEGOLD VENTURES

The Salinas Grandes in Argentina. ADOBE STOCK

Stillwater Critical enjoys ‘sweet spot’ in Montana’s Lower Stillwater PGMs Complex

BY HENRY LAZENBY

Stillwater Critical Miner als (TSXV: PGE; US-OTC: PGEZF) is “rewriting the book” on the Lower Stillwater Igneous Complex in Montana, says presi dent and CEO, Michael Rowley.

The company’s evaluation of the flagship Stillwater West proj ect continues to confirm more par allels to South Africa’s Bushveld Igneous Complex, and positions the company as the second-largest landholder in the Stillwater Com plex, with a 100%-owned position next to Sibanye-Stillwater’s (JSE: SSW; NYSE: SBSW) PGE mines in south-central Montana.

“Given global geopolitical ten sion on several fronts, the world is increasingly looking towards North America and other first-world jurisdictions to supply the criti cal minerals such as PGMs, nickel, cobalt, copper and gold [that] the modern economy requires,” Row ley said in an interview with The Northern Miner

“With Stillwater West, we’re at a remarkable sweet spot. It’s got a lot of data, a supportive U.S. Geo logical Survey backing, but it’s, remarkably, not well understood,” Rowley said. “We’re rewriting the book on the Lower Stillwater Com plex, quite literally. And there’s a lot of potential there. It’s a big and well-mineralized system.”

Since acquiring the project in 2017, Stillwater Critical, then known as Group 10 Metals, has focused on the potential for Still water West to host large-scale Platreef-style nickel and copper sulphide deposits, enriched in pal ladium, platinum, rhodium, gold and cobalt.

The company’s work to date has confirmed Stillwater West’s location in the Stillwater Igneous Complex relative to Sibanye-Still water’s productive J-M Reef deposits as comparable to Ivan hoe Mines’ (TSX: IVN; US-OTC: IVPAF) Platreef deposit and Anglo American’s (LSE: AAL) PGE-nick el-copper Mogalakwena mine in a similar geologic setting in the U.S.

Stillwater’s most important milestone yet was the release in October 2021 of an initial inferred resource estimate encompassing five Platreef-style deposits totalling 1.1 billion lb. of nickel, copper and cobalt, and 2.4 million oz. of palla

dium, platinum, rhodium and gold.

The constrained model totals 157 million inferred tonnes averaging 0.45% total nickel-equivalent (or 1.2 grams palladium-equivalent per tonne), using a 0.2% nickel-equiva lent cut-off.

Since then, Stillwater Critical has reported several wide, highgrade battery and precious metal intercepts in wide step-outs from known mineralization in expan sion drilling.

Notable comparables

The strength of those results, and the larger potential shown by the full 32-km length of the Stillwa ter West project, enabled the com pany to attract Danie Grobler and Albie Brits, two of the world’s top geologists with a combined 40 years of high-level experience advancing world-class mines in the Platreef district in South Africa.

In collaboration with the exist ing Stillwater team and the U.S. Geological Survey, Grobler is lead ing a comprehensive review of the substantial project database that is expected to be transformative in guiding further expansion and drill campaigns.

The Stillwater Igneous Complex is a well-known analogue to South Africa’s Bushveld Igneous Com plex, and Grobler says their geologic similarities have aided explora tion in the Stillwater. For example, Sibanye-Stillwater’s high-grade J-M

Reef deposit was discovered by the direct application of geologic mod els developed during the discovery of the high-grade Merensky reef deposit in the Bushveld.

“More recent developments on the Bushveld have focused on the Platreef deposits in the northern limb of the Bushveld, which departs from the conventional narrow reeftype mines that dominate global PGM mining. These occurrences of thick mineralized horizons that support bulk mining techniques also include a much higher battery metal content,” said Grobler from his office in South Africa.

The mines of the Platreef are among the largest and most profit able in the world, and their mix of commodities offers an attractive internally hedged suite of in-de mand critical minerals that are glob ally very rare. Starting with Anglo’s PGE-nickel-copper Mogalakwena mines in 1993 and continuing today with Ivanhoe’s underground Pla treef mine, these mines have demon strated the world-class nature of these bulk-tonnage, critical mineral systems within the Bushveld com plex, notes Grobler.

To get a better sense of the enor mity of the discovery potential, it’s worth noting these two deposits’ established resource endowments. According to Anglo’s 2021 ore reserves report, Mogalakwena held measured and indicated resources of 1.7 billion tonnes grading 2.18

grams palladium, platinum, rho dium and gold (4E) per tonne for 153.7 million oz. of metal.

Ivanhoe reports Platreef’s indi cated resources alone contain an estimated 41.9 million oz. 4E, plus 2.4 billion lb. of nickel and 1.2 bil lion lb. copper, at a 2 grams per tonne cut-off. It has a further 52.8 million oz. 4E and 3.4 billion lb. of nickel and 1.78 billion lb. of copper at the same cut-off.

A further plus for the project in today’s heightened market sensi tivity to environmental issues is that Platreef-style deposits contain nickel sulphide mineralization. The style of mineralization can produce nickel metal with a much smaller footprint than that recovered from laterite deposits, which currently represent most of the global supply.

Additional environmental bene fits are possible through a reaction of atmospheric carbon dioxide with certain ultramafic rocks present in Platreef-style deposits. Test work is underway to evaluate the poten tial for commercial-scale carbon sequestration as part of a possible mining operation at Stillwater West.

North American focus So far this year, Stillwater Criti cal has completed a channel sam pling program in the D.R. deposit area and the Bald Hills target area of the Chrome Mountain resource region. The work was meant to expand drill-defined mineraliza

tion while also allowing a detailed study of surface geology in con junction with expanded geologic mapping.

The company has also com pleted surface sampling across the mineralized shear zone at the high-grade Pine target, which will help underpin a formal resource for this area.

Meanwhile, a gravity geophys ical survey is planned in the near term, based on the success of this technique in targeting mineral ization in a similar geologic set ting on the Platreef deposits of the Bushveld.

Grobler said completing the comprehensive review and update of existing project data and the deposit model is a critical catalyst to move the needle forward on Still water West, including an upcoming resource update later this year. The update will incorporate the results of a successful 14-hole 2021 drill campaign, which returned many wide and high-grade battery and precious metal intercepts in wide step-outs from known mineral ization at the three most advanced deposit areas within the 12-km core of the project.

The company expects the drill ing will significantly expand and enhance the existing resource.

Rowley underlines that Still water is aiming to become a world-class source of low-carbon, sulphide-hosted nickel, copper, and cobalt, critical to electrifica tion, as well as platinum, palladium and rhodium, used in catalytic con verters, fuel cells, and the produc tion of green hydrogen.

He said the company had attracted the attention of several major PGM companies from the outset, which has translated into several nondisclosure agreements.

“We gave several asset tours this summer that were very positive. They’re there, looking.

“And I guess the key point about mergers and acquisitions is that these big players really cannot find projects of scale and poten tial in jurisdictions that they like. The world has gotten smaller. The focus on North America is remarkable,” says Rowley.

At 16¢ per share, Stillwater Crit ical’s Toronto-quoted equity is down about 50% over the past 12 months, giving it a market cap of $28.3 million.

Pure Gold suspends operations at troubled

stock

BY JACKSON CHEN

Pure Gold Mining (TSXV: PGM; LSE: PUR) is placing its flagship PureGold mine in Red Lake, Ont., on care and maintenance, as the mine has yet to achieve the consistent cash flow needed to alleviate the company’s financial problems.

Currently, Pure Gold has a cash balance of around $2 million and a net working capital deficit of about $13 million, excluding amounts owing under the company’s debt

obligations to Sprott Resource Lending Corp.

In its second quarter finan cial report, Pure Gold had booked an operating loss of $18.5 mil lion despite a 30% reduction in costs compared to the first quarter. Net loss and comprehensive loss totalled $20.8 million. Both figures were higher than their comparative periods in 2021.

The miner had previously noted that it expected at least some addi tional funding in 2022 to come from the exercise of warrants issued

in conjunction with its May 2022 financing. However, the warrants are currently priced to be exercised at 18¢ per share, and given cur rent market conditions, it no lon ger expects to receive any proceeds from warrant exercises prior to their expiry on Nov. 25-27.

To date, none of the warrants have been exercised, and the com pany has so far been unable to obtain alternative outside financ ing in order to continue operations, complete its ongoing prefeasibil ity study and life-of-mine plan,

and continue its ongoing strategic review process.

If additional outside financing is not obtained in the short term, Pure Gold says it will not be able to meet its debt obligations as they become due, which would result in a default.

Pure Gold has also withdrawn its production guidance for the fourth quarter of 2022, which was previ ously set at 9,000-12,500 ounces.

The company had achieved its third quarter guidance, producing just over 9,000 oz. gold.

The PureGold mine, a historic producer formerly known as Mad sen, first began production under Pure Gold in 2021 after the junior completed construction of an 800-tonne-per-day underground mine and processing facility.

Shares of Pure Gold Mining con tinued to plunge on the latest devel opment. The stock crashed 83% to trade at 2¢ a share on the announce ment on Oct. 24, compared to a 52-week high of $1.08 on Nov, 12, 2021. The company’s market value now sits at $14.6 million.

Stillwater Critical Minerals’ evaluation of the flagship Stillwater West project in Montana continues to confirm more parallels to South Africa’s Bushveld Igneous Complex. STILLWATER CRITICAL MINERALS

BY COLIN MCCLELLAND

Probe Metals (CVE: PRB) says drilling at its Val-d’Or East project’s Monique deposit in Quebec has returned “significant” gold intercepts that are likely to expand the area of the strike and increase its resource update due by year’s end.

Highlights from the results of 45 new holes showed “continued strike and depth expansion with significant gold intercepts along the Monique gold zones,” Probe, a Toronto-based explorer, said in a news release on Oct. 18.

Infill drill hole MO-22-419 intercepted 18.2 grams gold per tonne over 7.4 metres from 465.7 metres depth, the company said. Infill hole MO-22-414 cut 1.5 grams gold over 54 metres from 83 metres.

Expansion hole MO-22-418 intercepted 3.9 grams gold over 11 metres from 66 metres down, Probe said, while expansion drill hole MO-22-397 cut 2.5 grams gold over 16.5 metres from 16.3 metres.

The site, 25 km east of Val-d’Or, hosts three past-producing mines, Beliveau, Monique and Bussiere. The intercepts are helping define continuous gold mineralization over 2 km of strike length along a structure extending for some 10 km across the property, Probe chief executive officer and pres ident David Palmer said in the release.

“The consistency of Monique mineralization has been remark able,” Palmer said. “Drilling has confirmed thick, continuous gold

zones and the deposit has contin ued to grow and improve rapidly during this phase of drilling.

“We will be increasing our focus on untested targets and regional exploration surrounding the de posits. This exploration upside is what first attracted us to Val-d’Or East and we are looking forward to expanding our exploration pro grams to capture some of the po tential we see in these other areas on our property,” Palmer said.

BMO Capital Markets said Probe has narrowed the space between drill holes to 30 metres in places as it seeks to validate resources for an update due this year while other drilling shows the Monique deposit has room to expand.

“Drilling from Probe’s infill and expansion campaign at the Monique deposit provided strong results with infill intercepts con tinuing to confirm grades and thicknesses,” analyst Andrew Mikitchook wrote in a note on Oct. 18. “Expansion drilling (is) identifying mineralization outside the existing resource where the deposit remains open.”

The results of 130 other holes

at Monique are pending as Probe continues with geotechnical, met allurgical and other research to complete a prefeasibility study due in one year. A resource update on the property’s other zones is due in the first quarter of 2023.

Probe’s Val-d’Or East prop erty, which includes the Monique, Pacalis and Courvan deposits, has 29.8 million measured and indi cated tonnes at 1.81 grams gold per tonne for 1.7 million oz. gold, according to a July 2021 esti mate. The project’s other proper ties, Lapaska, Senore and Sleepy, contain 2.7 million tonnes at 3.19 grams gold per tonne for 273,900 oz. gold in an inferred resource estimate from the same time.

Probe also controls the Detour Quebec gold project across 777 sq. km about 190 km north of RouynNoranda, the 7.5-sq.-km Dubuis son property just west of Val-d’Or, the Timmins West project near Timmins, Ont., the Casa-Cam eron gold project across 171 sq. km in northwest Quebec, and the Black Creek chromite project in the Ring of Fire area of northern Ontario.

Laurentian Bank Securities said Probe’s drilling validated its 3-D model and highlighted a signifi cant resource increase potential.

“We believe the high hit-ra tio of drilling suggests a resource increase of +20%,” analyst Barry Allan wrote in a note on Oct. 18. Allan has a buy rating on the stock and a $5 price target.

Probe shares were trading at $1.13 at press time. The stock touched a high of $2.31 this year in March and April. The company has a market cap of $171 million.

Endeavour Mining starts building Lafigué gold mine in Côte d’Ivoire

WEST AFRICA | Production anticipated to begin in Q3 of 2024

BY CECILIA JAMASMIE

Endeavour Mining (TSX, LSE: EDV) has kicked off construction at its 80%owned Lafigué gold project in Côte d’Ivoire, which is expected to begin production in the third quarter of 2024.

The $448 million project, located on the Fetekro property, adds to a long list of activities the Lon don-based miner has undertaken this year.

Those include the Saboda la-Massawa expansion project in Senegal, and the construction of a recyanidation circuit at its corner stone Ity operation, also in Côte d’Ivoire.

Based on the just-finished defin itive feasibility study, Lafigué will produce an average of 203,000 oz. of gold per year, at an all-in sus taining cost of $871 per oz. over a 12.8-year mine life.

Endeavour’s chief executive, Sébastien de Montessus, said the mine would be “a cornerstone” for the company, allowing it to enhance the group’s geographical diversification.

“We are ideally positioned to launch the construction of Lafigué, given our net cash position, the continued strong performance of our operations, and our success in de-risking the Sabadola-Massawa expansion with a significant por

tion of the capital already commit ted on-budget,” he said in a news release.

De Montessus added the com pany was already seeing reduced inflationary pressures and favour able foreign exchange rates, com pared to earlier in the year.

Executive VP for exploration and growth, Patrick Bouisset, said the Lafigué discovery was an example of how the company cre ates value.

“For a modest exploration investment of $31-million, which represents a discovery cost of $12/ oz, we have added a new corner stone asset to our portfolio. To continue to source our projects organically, we have increased our greenfield exploration efforts, which, over recent months, have resulted in significant success at our Tanda-Iguela property in Côte d’Ivoire, where we expect to publish a maiden resource later this year.”

The company has forecast full year production at Lafigué of between 1.32 million and 1.4 mil lion oz. of gold for this year at all-in sustaining costs of $880 to $930 per ounce.

Endeavour shares were trad ing at $24.07 as of press time. in Toronto. The miner’s shares have traded in a 52-week window of $22.82 and $35.94. It has a market cap of $5.9 billion. TNM

Endeavour Mining’s Lafigué gold project in Côte d’Ivoire. ENDEAVOUR MINING

At Probe Metals’ Val-d’Or East gold project in Quebec. PROBE METALS

Uranium Energy’s Athabasca deals part of ‘unprecedented’ M&A wave in uranium, nuclear assets

BY COLIN MCCLELLAND

U

ranium Energy Corp. (NYSE: UEC) says it is building a “critical mass” of uranium projects in northern Saskatchewan’s Athabasca basin, including the recent US$150-mil lion purchase of Rio Tinto’s (ASX: RIO) Roughrider project.

The cash-and-shares deal on Oct. 12 came after UEC first entered Canada’s premier ura nium zone just three months ago with the $244-million purchase of UEX Corp. — besting Denison Mines (TSX: DML) for the assets — and adding the Christie Lake, Hidden Bay and Horseshoe-Ra ven projects on the basin’s east ern side to UEC’s portfolio. The Vancouver-based company has predominantly operated in Texas, Wyoming, Arizona, New Mexico and Paraguay. None of its assets are currently in production.

UEC has spent US$570 mil lion in the last year to acquire Uranium One Americas, UEX and Roughrider, tripling its total resource inventory (across mul tiple assets it now has 198 million measured and indicated lb. ura nium oxide and 68 million inferred lb.). With a technical report on Roughrider due in a few months that will convert historic resources to current, UEC chief executive officer Amir Adnani said in an interview the company hopes to increase its total measured and indicated resources to 350 mil lion lb. That would give UEC the third-largest resources of compa nies operating in the region, behind Cameco (NYSE: CCJ; TSX: CCO) and French state-owned Orano.

“We’re looking at how we can bulk up with critical mass, bring ing a number of projects together,” Adnani said by phone on Oct. 13. “We want to keep buying assets because we think they’re cheap right now.”

UEC is vying to become one

of the leading uranium suppli ers in the West as the appeal of nuclear energy recovers more than a decade after the Fukushima disaster in Japan, and amid new support from climate activists for clean energy and a power cri sis in Western Europe brought on by Russia’s invasion of Ukraine.

Countries such as France, Ger many and Japan that had started to back away from nuclear energy are doing an about-face. And the West wants to develop its own uranium sources instead of relying on Rus sia-controlled assets in Kazakh stan that supply a world-leading 45% of the global market.

“The fundamentals were shap ing up in a very bullish way before geopolitical uncertainty and risk was introduced into the equation,”

NATURAL RESOURCES

Trusted.

Independent.

Adnani said. “We have this surg ing power crisis in Western Europe and that has now become another reason to keep these nuclear reac tors running.”

The macroeconomic appeal hasn’t been lost on others. Cameco and Brookfield Renewable Part ners (NYSE: BEP) bought Westing house’s nuclear plant construction unit for US$7.9 billion within hours of the UEC deal.

“You’re seeing quite unprece dented M&A activity in the nuclear energy and uranium sectors,” Adnani said. “That shows there really is a marked turning point in sentiment and acceptance for nuclear energy, it’s not just being discussed and debated. Real capital is being allocated.”

Brookfield runs the world’s larg

est fund for transitioning to clean energy with some US$52 billion in assets under management stew arded by former Bank of England and Bank of Canada governor Mark Carney.

The Roughrider deposits hold a historic global resource of 57.9 mil lion lb. of uranium oxide (394 mil lion indicated tonnes at 1.98% U3O8 and 161.6 million inferred tonnes at 11.43% U3O8), according to a 2011 resource estimate. A preliminary economic assessment from that time estimated a US$1-billion net present value using a 7% discount rate and a US$70 per lb. uranium price from producing 5 million pounds a year over the 10-year life of a conven tional underground mine.

Roughrider is now UEC’s pre mier asset in the Athabasca basin, according to an Oct. 12 note from Haywood Capital Markets. The deal reflects an acquisition cost of about US$2.59 per lb. of uranium oxide compared with UEC’s enter prise value at US$4.23 per lb. of resource, Haywood said.

“While Roughrider could benefit from resource expansion to solidify a position in the future global pro duction pipeline, we do believe there is potential for UEC to gain market recognition for the asset in excess of the acquisition price in a rising uranium price environment,” Hay wood analyst Colin Healey wrote.

2012 bidding war for Roughrider

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

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

Rio Tinto paid US$642 million for Roughrider in 2012 after a bidding war with Cameco, more than four times UEC’s deal. The previous sale shows the higher price threshold for Rio Tinto, the world’s second-larg est miner with a market capitaliza tion of almost US$90 billion that’s some three times the size of the entire uranium sector, Adnani said.

UEC will pay US$70 million in UEC stock to Rio Tinto at US$3.93

per share, (compared with UEC shares closing at US$3.84 the day before the announcement), giv ing Rio 5% of UEC. The remaining US$80 million will be funded from US$173 million in liquid assets UEC holds on its balance sheet, including 1.7 million lb. of ura nium oxide valued at US$85 mil lion using a price of US$50 per lb., Adnani said.

When uranium prices were low last year, UEC started buying phys ical uranium at an average cost of US$37 per lb. and contracted sev eral million more pounds at fixed prices to December 2025, Adnani said. UEC said in September it had expanded its warehouse storage of uranium in the United States to 5.5 million pounds. Selling the stock pile at about US$50 per lb. now helps buy Roughrider, he said.

“It’s basically a low-cost physi cal stream that we engineered and structured,” he said. “If you sell that to buy an asset like Roughrider, you’re actually realizing gains and you’re putting that into buying a world class asset.”

Still, starting an underground mine in Canada generally requires a uranium price of more than US$50 per lb., Adnani said. But the mine is several years away and the mega trend of achieving net-zero emis sion targets with renewable energy continues to gather pace while nuclear power’s image problems recede in some quarters. Adnani is keen on UEC’s dual-prong strategy of developing strong in-situ recov ery operations in the U.S. and highgrade ore projects in Canada, all the while considering additions.

“We’re reaching critical mass so when you look at it you’d say ‘OK, this is a company that now has the level of resources that you would otherwise see in the majors’,” he said. “There’s a lot of value to be had to be acquisitive because assets are not reflecting proper value.”

M&A | Purchase of Roughrider deposit for US$150M follows UEX acquisition in August

Uranium Energy Corp. has acquired the Roughrider project in Saskatchewan for less than a quarter of the price Rio Tinto paid for the asset in 2012. URANIUM ENERGY CORP.

Saskatchewan juniors jostle to advance Canada’s next new uranium mine

BY BLAIR MCBRIDE

With uranium prices con tinuing their slow climb over the last four years while the geopolitical situation highlights the need for secure ener gy supplies, all eyes are on Canada’s next big uranium projects.

Three contenders are developing promising projects in the prolific Athabasca Basin of northern Sas katchewan.

Denison Mines: Saskatchewan’s first ISR mine?

Denison Mines (TSX: DML; NYSE-MKT: DNN) is advancing its Wheeler River project, what the company calls the “largest undevel oped uranium project in the east ern portion of the Athabasca Basin region.”

Located about 35 km northeast of the Key Lake mill, the project is a joint venture between Denison and JCU (Canada) Exploration in a 90-10 split. Denison acquired 50% of JCU in 2021, giving it 95% of Wheeler River.

The project comprises the highgrade Phoenix and Gryphon depos its. Phoenix has probable reserves of 59.7 million lb. U3O8 in 141,000 tonnes grading 19.1% U3O8; Gry phon contains 49.7 million lb. U3O8 in 1.2 million tonnes at 1.8% U3O8, according to a 2018 prefeasibility study.

The study estimates the com bined deposits could produce 109.4 million lb. U3O8 over a 14-year mine life, generating a pre-tax net present value of $1.3 billion at an 8% discount rate. The internal rate of return is pegged at 38.7%, and initial capital costs are expected to come to $322.5 million.

The project’s features rank it in the “top three largest undevel oped uranium projects in Canada,”

Canaccord Genuity analyst Katie Lachapelle said in an email to The Northern Miner

The Toronto-headquartered com pany plans to develop Phoenix and Gryphon as in-situ recovery (ISR) and underground operations, respec tively.

Its Phoenix ISR field tests — among the first conducted in the basin — returned positive results on Oct. 17, which the company described as “history in the mak ing.”

Following the leaching phase, Denison plans a second neutral ization phase before the end of the year, and a third phase of managing the recovered solution next spring.

Results should also help ease concerns over Denison’s decision to pursue ISR mining and inform the feasibility study, expected to be finished in 2023, said Lachapelle.

“We believe this is [also] a pos itive de-risking event from a reg ulatory standpoint, as Denison advances project permitting and

looks to submit its final environ mental impact statement in the coming months,” she said.

Denison aims to begin con struction of Phoenix in 2023 and production in 2024. Construction of Gryphon could start in 2026, although Denison noted that proj ect timelines were affected by Covid-19-related suspensions at Wheeler River in 2020 and the dates “should not be relied upon.”

Canaccord assumes first produc tion at Phoenix in 2027.

Denison’s shares were trading at $1.66 at press time. Its equity has traded in a 52-week window of $1.18 and $2.64. It has a market cap of $1.3 billion.

‘World-class project’ from NexGen

On the southwestern edge of the basin is NexGen Energy (TSX: NXE; NYSE: NXE)’s Rook 1 under ground project, which hosts the high-grade Arrow deposit.

Mineralization at Arrow occurs in five shear zones along 980 metres of strike. The zones are up to 315 metres wide with mineral ization starting at 100 metres depth and extending down to 980 metres. Each shear is between 2 and 60 metres wide. The deposit remains open in most directions and at depth.

David Talbot, an analyst with Red Cloud Securities in Toronto said he believes Rook 1 is “probably the world’s best uranium asset” due mainly to the local geology.

“The Rook 1 project is big [and] it’s in the right jurisdiction. It’s rel atively shallow and it’s not hosted in sandstone,” he said, referring to the basement rock of Arrow that isn’t as permeable or prone to frac turing compared to the sandstone that hosts the McArthur River and Cigar Lake mines’ deposits.

“If you don’t have good, qual ity rock, you’re not able to mine it without some help. Those other operations… they essentially hold the deposits together by freezing them, which is incredibly costly and it takes a lot more time and effort,” Talbot said.

Probable mineral reserves, divided into two main structures of A2 and A3, come to a total of 4.5 million tonnes grading 2.37% U3O8, for 239.6 million lb. of con tained U3O8, according to the feasi bility study published in 2021.

Measured and indicated resources come to 3.7 million tonnes grading 3.1% U3O8 for 256.7 million lb. con tained uranium oxide, for a 10.7year mine life.

The project would produce 29 million lb. of U3O8 annually for the first five years.

The capex is estimated at $1.3 billion, with NexGen aiming to start early works in the first half of 2023.

Operating costs are estimated at

US$5.69 per lb., what NexGen calls “among the lowest in the industry.”

The miner has also made signifi cant progress in its permitting, with the Canadian Nuclear Safety Com mission (CNSC) accepting Nex Gen’s draft environmental impact statement in July, starting a 90-day period of federal and public review of the document.

In addition, it has signed IBAs with the Buffalo River, Birch Nar rows and Clearwater River Dene Nations.

The company aims to complete its front end engineering design, detailed engineering, and final licensing by the third quarter of 2023.

“I think getting the permits about this time next year is the true key, that’s what everyone is waiting for,” Talbot said. “That’s the one decision that will have this proj ect move forwards because at that point you can finance it. I don’t expect them to have much diffi culty getting this project built.”

If the permits are secured by late 2023, construction could take about two years and production could start in 2027-2028, Talbot said, adding that the company could be an attractive takeover target.

“That will coincide nicely with a widening uranium supply gap in the market,” he said. “For a com pany making uranium for under $10 per pound I think that’s a pretty good margin. Hence the ability to pay off the debt, hence the attractiveness for someone to come in and purchase the project because it’s definitely world class.”

At press time, NexGen shares were trading at $5.44 in a 52-week window of $4.43 and $8.30. It has a market cap of $2.6 billion.

Fission in the ‘next hotspot for high-grade production’

Located just 3 km away from Rook 1, Fission Uranium (TSX: FCU; US-OTC: FCUUF)’s Patterson Lake South (PLS) project is coming into sharper focus, 10 years after Fission discovered the Triple R deposit.

The British Columbia-based miner touts Triple R, situated 160 north km of La Loche, Sask. as the region’s largest high-grade ura nium deposit at shallow depth.

The year could prove to be eventful for PLS, with a feasibil ity study expected in the fourth quarter. In September, the com pany announced a 21.3% increase in indicated resources of 472,000 tonnes.

Triple R comprises five mineral ized zones ranging from 60 to 100 metres wide over a strike length of 3.2 km. The shallow deposit starts at about 50 metres below surface, extends down to 300 metres and remains open in most directions.

Mineral reserves total 2.3 million tonnes grading 1.61% U3O8, con taining 81.4 million lb. U3O8

Fission also aims to increase PLS’ mine life from 7.3 years in the 2019 prefeasibility study to potentially 10 years in its upcoming feasibil ity study that will be based on the new resource, incorporating results from 175 holes drilled over the last three years.

Pre-production capital costs are pegged at $1.1 billion and sustain ing capital costs (including recla mation) at $282 million, over the mine’s life. Operating costs are estimated at US$7.18 per lb, with annual production forecast at 11.3 million lb. U3O8

The company estimates a threeyear construction period for PLS, starting around 2026, with produc tion beginning in 2029.

Canaccord models first produc tion at PLS in 2030.

“The project could be delayed by receipt of permits and financing, given its significant upfront capital cost,” Lachapelle said.

In 2021, Fission started its envi ronmental assessment process and has thus far completed the terms of reference approval with Saskatche wan’s Ministry of Environment.

In a research note this sum mer, Canaccord pointed out that

the remote location of PLS and its proximity to Indigenous commu nities will make permitting “one of the largest outstanding risks” facing the project.

However, Fission stated in a cor porate update in October that it has signed engagement, capacity and funding agreements with the Clear water River Dene Nation, Buffalo River Dene Nation and the Atha basca Nations & Communities of the Nuhenéné.

Public and provincial reviews of the environmental impact state ment and assessment, as well as the CNSC licence are anticipated to be complete by 2028.

Despite those permitting hurdles, Lachapelle said she believes PLS will become one of the next big uranium producers in Canada “in time.”

“Triple R is [in] an area which we believe is poised to be the next hotspot for high-grade uranium production with recent discoveries totalling [more than] 400 million lb. of U3O8,” she said.

At press time in Toronto, Fis sion shares were trading at 67¢, in a 52-week window of 56¢ and $1.19. It has a market cap of $456 million.

TNM

Denison Mines: The Wheeler River in-situ recovery test site in Saskatchewan.

DENISON MINES

NexGen Energy: The Rook 1 project hosts the high-grade Arrow uranium deposit. NEXGEN ENERGY

Fission Uranium: The Patterson Lake South project hosts the Triple R deposit . FISSION URANIUM

Cameco and Brookfield Renewable agree to US$7.9B Westinghouse nuclear services buy

BY HENRY LAZENBY

Canada’s largest uranium producer Cameco (TSX: CCO) has announced a sig nificant expansion into the nucle ar services sector after agreeing to buy U.S.-based Westinghouse Electric with Brookfield Renew able Partners (NYSE: BEP) in a US$7.9-billion deal.

Brookfield Renewable and its institutional partners will own a 51% interest in Westinghouse, while uranium fuel supplier Cameco will own 49%.

“The partnership of Brookfield and Cameco will help drive for ward the growth of nuclear power the world needs for its clean energy transition,” said Brookfield vicechair and head of transition invest ing Mark Carney in a statement.

The deal combines Cameco’s expertise in the nuclear industry with Brookfield Renewable’s exper tise in clean energy and positions atomic power at the heart of the energy transition. It also creates a platform for strategic growth across the nuclear sector.

Among the terms of the deal, Westinghouse’s existing debt struc ture will remain in place, leaving an estimated US$4.5 billion equity cost to the consortium, subject to closing adjustments. This equity cost will be shared proportionately between Brookfield and its institutional part ners (about US$2.3 billion) and Cameco (about US$2.2 billion).

Westinghouse services about half the nuclear power generation sec tor and is the original equipment manufacturer of more than half the global nuclear reactor fleet. The company has industry-leading intel lectual property and a specialized workforce of roughly 9,000 employ ees capable of operating in highly regulated markets worldwide.

The deal is expected to close in the second half of 2023.

‘Clear signal’

In a note to clients, Canaccord Genuity mining analyst Katie Lachappelle said that the deal was unexpected, and will require sig nificant cash outlay from Cameco, which will have to tap into its

$1.4 billion in cash on hand, debt, and equity. The company closed a nearly US$750-million bought deal financing on Oct. 17 that was priced at a roughly 15% discount to its share price on announce ment. However, Lachappelle says the acquisition makes long-term sense for Cameco, as it will make the company a “one-stop shop” for utilities and generate a predictable cash flow stream.

As Europe looks to loosen its dependence on Russia for energy, Westinghouse also stands to pick up business from Russia’s Rosatom.

“We expect Westinghouse to be a preferred builder of new nuclear facilities in Europe and a servicer to new and existing plants previously serviced by Rosatom (Russia),” Lachapelle wrote.

“More broadly, we want to high light the fact that this is arguably the most significant transaction announced in the nuclear indus try in over a decade. A transaction of this size should act as a clear sig nal to the market that fundamental demand for nuclear power and ura nium remains extremely strong.”

Nuclear resurgence

Cameco CEO Tim Gitzel said the transaction fits perfectly within Cameco’s strategy and was expected to increase its ability to meet the growing needs of existing and new customers at a time when the origin and security of supply are of signif icant concern. “At the same time,

we expect the recurring demand for Westinghouse’s operating plant services and nuclear fuel will gen erate a strong revenue stream and add stable cash flow to complement Cameco’s existing uranium and fuel services business,” said Gitzel.

Cameco notes that nuclear power is experiencing a resurgence world wide, with more than 20 coun tries across the Americas, Europe, the Middle East and Asia pursuing new projects or plant extensions. More than 50 GW of plant exten sions have been announced, and more than 60 GW of new-build reactors are expected between 2020 and 2040. An estimated 400 GW of additional nuclear capacity will be

needed by 2050.

Nuclear power is one of the only zero-emission, baseload sources of electricity currently available at scale.

The consortium sees further multi-decade growth opportuni ties in the rollout of next-generation advanced nuclear technology and long-term nuclear energy storage solutions. Modular baseload genera tion, such as Westinghouse’s eVinci micro-reactor technology, can play a growing role in an increasingly decentralized and decarbonized energy system.

Cameco shares traded at $23.34 at press time, giving it a market capitalization of $10.1 billion.

Denison says Wheeler River test taps low-cost ISR in high-grade Athabasca for first time

SASKATCHEWAN | Recovery of uranium-bearing solution called ‘history in the making’

BY COLIN MCCLELLAND

Denison Mines (TSX: DML; NYSE: DNN) says it has received positive test results from its in-situ uranium recovery process at the Wheeler River proj ect in northern Saskatchewan’s Athabasca basin, which it called ‘historic.’

The successful test marks one of the first uses in the basin of in-situ recovery (ISR) leaching that sep arates uranium from ore under ground and pumps the solution to the surface for extraction. It is gen erally less expensive than tradi tional hard rock mining.

“The recovery of uranium bear ing solution at targeted rates and grades is history in the mak ing,” Kevin Himbeault, Denison’s vice-president of plant operations, said in a press release on Oct. 18.

“Initial analysis indicates the hydro geological system has responded as expected with pH trends, flow char acteristics and uranium recovery meeting expectations.”

Mining and investment compa nies are jockeying for acquisitions in the nuclear industry and to develop the Athabasca basin, one of the premier uranium zones in North America, as a confluence of cli mate change concerns, green power demands and Russian aggression affecting fossil fuel prices widens the appeal for nuclear energy.

Uranium Energy Corp. (NYSE: UEC) has spent US$570 million acquiring projects in the past year — including outbidding Deni son for UEX in August — while Brookfield Renewable Partners and Cameco (TSX: CCO; NYSE: CCJ) bought Westinghouse’s reac tor-building unit on Oct. 11 for US$7.9 billion.

“Denison continues to de-risk its Wheeler River project,” BMO Capi tal Markets wrote in a note on Oct. 18, noting the Phoenix test “could be the first of its kind using ISR in the Athabasca basin” and “the ini tial results appear promising.”

Solution samples recovered from about 400 metres below the sur face during the feasibility field test

started last month have been sent for lab assays and analysis, Denison said. Preliminary results show suc cessful acidification and recovery of uranium through the ISR method, it said.

Dension said it has completed the test’s first phase of leaching and plans to complete the second phase of neutralization before the end of the year. The test’s final phase, involving the management of the recovered solution, is to start next spring.

Wheeler River, in the eastern part of the Athabasca basin, has com bined indicated mineral resources of 132.1 million lb. uranium oxide in 1.8 million tonnes grading 3.3% uranium oxide.

A 2018 prefeasibility study looked at developing the project’s Phoenix deposit with ISR and its Gryphon deposit as a conventional under ground mine. Together, production from the deposits could be 109.4 million lb. uranium oxide over a 14-year mine life, with a pre-tax net present value of $1.3 billion at an 8% discount rate. Preproduction capital costs are estimated at $322.5 mil lion. Denison estimates the Phoenix ISR operation to have a pre-tax net present value of $930.4 million at an 8% discount rate with average oper ating costs of US$3.33 per lb. ura nium oxide.

“The successful recovery of ura nium-bearing solution from Den ison’s high-grade Phoenix deposit is a historic moment for uranium mining in Canada,” Denison pres ident and chief executive officer David Cates said in the release.

“Denison has truly showcased its industry leadership in bringing the low-cost ISR mining method to the high-grade uranium deposits of the Athabasca basin.”

Denison’s other Athabasca proj ects include a 23% stake in the McClean Lake joint venture, which includes several uranium depos its and the McClean Lake uranium mill, a 25% interest in the Midwest Main and Midwest A deposits, and a 67% interest in the Tthe Heldeth Túé and Huskie deposits on the Waterbury Lake property.

“THE PARTNERSHIP OF BROOKFIELD AND CAMECO WILL HELP DRIVE FORWARD THE GROWTH OF NUCLEAR POWER THE WORLD NEEDS FOR ITS CLEAN ENERGY TRANSITION.”

MARK CARNEY, BROOKFIELD RENEWABLE PARTNERS VICE-CHAIR

URANIUM SNAPSHOT: SEVEN JUNIORS SEARCHING FOR THE ENERGY METAL

BY NORM TOLLINSKY

As the world looks for low-carbon energy solutions, more nations are coming to the conclusion that nuclear power needs to be part of the mix. Here are seven companies looking for the next uranium deposits to power the nuclear renaissance.

n BASIN URANIUM

In early September, Basin Ura nium (CSE: NCLR, US-OTC: BURCF) announced the intersec tion of significant uranium miner alization in first-phase drilling at its flagship Mann Lake uranium proj ect in Saskatchewan’s Athabasca Basin.

Drilling highlights from the fivehole, 3,503-metre program included 323 parts per million (ppm) U3O8 over 0.5 metres below the uncon formity within a broader 7.2-metre interval of anomalous uranium and graphite mineralization. Significant boron mineralization, a pathfinder element for uranium mineraliza tion, was encountered in several other holes with values ranging from 319 to 1,000 ppm.

On Sept. 20, the company announced the start of a follow-up 4,000-metre core drilling program. The program will also test conduc tive zones and structures identified as a result of a Mobile MT survey along the unconformity contact that corresponds to prevalent grav ity lows located near the southeast ern portion of the project.

Basin Uranium entered into an option agreement with Skyharbour Resources (TSXV: SYH) in Octo ber 2021 to acquire up to a 75% interest in the 34.7-sq.-km Mann Lake project. Under the agreement, Basin Uranium agreed to spend $4 million on exploration over a threeyear period among other cash and share considerations to complete the earn-in.

The Mann Lake project is located 25 km southwest of Cameco’s (TSX: CCO, NYSE: CCJ) McArthur River mine, the largest, high-grade ura nium deposit in the world; 15 km northeast of Cameco’s Millenium uranium deposit; and adjacent to the Mann Lake joint venture co-owned by Cameco, Denison Mines (TSX: DML, NYSE-AM: DMN) and Orano Canada.

In late September, Basin

announced the receipt of per mits to conduct drilling at its 25.4-sq.-km Wray Mesa project in San Juan Cty., Utah. The Wray Mesa project is contiguous to the Energy Fuels’ (TSX: EFR, NYSE: UUUU) fully permitted and pro duction-ready La Sal project.

Basin Uranium has a market capitalization of $4.5 million.

n BLUE SKY URANIUM

Blue Sky Uranium (TSXV: BSK, US-OTC: BKUCF) is focused on uranium and vanadium explora tion in Argentina. In early Septem ber, the Vancouver-based junior released final assay results from its Ivana deposit, part of its wholly owned Amarillo Grande urani um-vanadium project in Rio Negro province. The most recent results from reverse-circulation drilling intersected a highlight of 7 metres grading 309 ppm U3O8 and 417 ppm V2O5, including 1 metre of 1,273 ppm U3O8 and 1,260 ppm V2O5. A second hole encountered 8 metres averaging 197 ppm U3O8 and 202 ppm V2O5, including 1 metre of 805 ppm U3O8 and 243 ppm V2O5. The entire 3,346-metre program collected 3,136 samples from 350 holes.

Located 25 km north of Valcheta City, the Ivana deposit hosts an inferred resource of 22.7 million lb. of U3O8 and 11.5 million lb. of V2O5

based on 28 million tonnes averag ing 0.037% U3O8 and 0.019% V2O5 at a 100 ppm uranium cut-off.

A member of the Vancou ver-based Grosso Group of compa nies, Blue Sky Uranium has several other targets along a 145-km-trend with mineralization in all cases occurring at or very near surface. A 2019 preliminary economic assess ment based on inferred mineral resources described the potential viability of a 13-year surface min ing operation.

On Sept. 26, the company announced the launch of a com prehensive field exploration pro gram at its Cateo Cuatro target, 32

km southwest of its Ivana deposit.

It also said it would advance the Ivana East target, 10 km east of the Ivana deposit, to the drill-testing stage. Both targets were identified by airborne or hand-held radio metric surveys and auger drilling between 2012 and 2013.

Blue Sky hopes to supply ura nium to Argentina’s nuclear power sector, which is currently depen dent on imported production. Blue Sky Uranium has a market capitalization of $27.9 million.

n FORSYS METALS

Forsys Metals (TSX: FSY) is in the process of updating a 2015 feasi

bility study for its wholly owned Norasa uranium project in Namibia. The study, under the leadership of recently hired metallurgical engi neer Pine van Wyk, will review and update all geology data and exam ine how newer, alternative mining equipment and technologies can enhance pit design, recovery and slope angle to improve mining and processing costs.

The Norasa uranium project consists of the 7.4-sq.-km Valen cia property, for which Forsys has a 25-year mining licence issued in 2008, and the 12.7-sq.-km Namib

Forsys Metals’ Norasa uranium project in Namibia. FORSYS METALS

plaas property 7.5 km to the north east. In early October, Forsys announced that its 100%-owned subsidiary, Valencia Uranium, sub mitted an application to Namib ia’s Ministry of Mines and Energy for a 25-year mining licence for its Namibplaas property.

The 2015 feasibility reported proven and probable reserves of 206 million tonnes grading 200 ppm U3O8 for 90.7 million lb. of U3O8

The study estimated operating costs of US$32.96 per lb. of U3O8 over the first five years of produc tion and US$34.72 per lb. over a 15-year mine life. The economic analysis estimated a post-tax net present value of $383.4 million at a discount rate of 8% and an inter nal rate of return of 26%. Plant throughput was estimated at 11.2 million tonnes per year to produce an average of 5.2 million lb. of U3O8 per year. Capital costs were esti mated at US$432.8 million.

Forsys has a market capitaliza tion of $131.1 million.

n MADISON METALS

Madison Metals (CSE: GREN, US-OTC: MMTLF) is an explora tion company focused on consoli dating ownership of landholdings in the Erongo uranium province of Namibia, recently signing deals to acquire interests in three properties. In September, the Toronto-based company entered into a binding let ter of intent with Otjiwa Mining and Prospecting CC to acquire an 85% interest in two prospecting licences close to China National Uranium Corp.’s Rossing uranium mine, an open pit operation that has been

in production since 1976, and the nearby Husab mine owned by Tau rus Metals, a subsidiary of China General Nuclear Power Co., Ura nium Resources Co. Ltd. and the China-Africa Development Fund. Madison Metals agreed to pay

US$150,000 and issue 1.6 million common shares for the 85% interest.

On Sept. 13 it entered into an agreement with Namibia Nuclear Corp. to acquire a 24% interest in another mining licence in return for US$2 million and two million

shares. The resulting licences will be consolidated under the property names Madison North and Madi son West.

“The uranium outlook is con tinuing to strengthen because it is a critical metal for energy transition and energy security,” said Duane Parnham, Madison Metals exec utive chairman and CEO. “Madi son’s strategy of acquiring highly prospective concessions in a tierone uranium jurisdiction provides the company with an opportunity to establish itself as a key player in the uranium industry.”

All three licences are located between 42 and 50 km east of the city of Swakopmund.

One of the licences — previ ously known as Rossing North — has a historical inferred resource of 15.6 million tonnes grading 260 ppm U3O8 for 9 million lb. U3O8, 85% of which would be attribut able to Madison. But the company cautions the estimate is in need of review and verification before it can be seen as a current resource.

In late September, Madison signed a forward sales agreement with Lux Partners, an Isle of Manbased fintech company. The fiveyear exclusive supply agreement provides for the delivery of up to 20 million lb. of U3O8 following the commencement of commercial pro duction, the fulfillment of which would support the first-ever urani um-backed non fungible tokens.

In addition to its interests in Namibia, Madison has a 100% interest in the 398.5-sq.-km Kenora uranium property containing the past-producing Richard Lake ura nium mine in northwestern Ontario.

A 60-hole, 2,000-metre drilling program is planned for the Kenora property once targets are selected based on database compilation and cross-section mapping of historical drill results and channel sampling.

Madison has a market capitaliza tion of $17.5 million.

n MYRIAD METALS

Vancouver-based Myriad Met als (CSE: MMC) recently entered into an option agreement to earn a 100% interest in 1,882 sq.-km of uranium exploration licences in the Tim Mersoi Basin in Niger. Under the Aug. 17 deal with Loxcroft Resources, Myriad can earn an ini tial 80% interest in the properties by issuing 8.5 million common shares to Loxcroft and spending

at least $2 million on exploration within two years.

The properties are immedi ately adjacent to the Imouraren deposit, one of the largest uranium reserves in the world with more than 174,000 tonnes of uranium, according to Orano, the previous licensee of the properties. Orano returned the licences to the pub lic domain in 2012 following the Fukushima disaster when uranium prices tanked.

The agreement with Loxcroft obliges Myriad to make additional payments of $5 million on the attainment of various milestones, including $1 million in cash or shares on completion of a techni cal report establishing a minimum resource of more than 10 million lb. of uranium with a minimum aver age grade of 0.25%, and an addi tional $2 million in cash or shares on completion of a technical report establishing a minimum resource of more than 50 million lb. of ura nium at the same grade.

Myriad will also be obliged to pay Loxcroft $1 million in cash or shares on completion of a prelim inary economic assessment and another $1 million on the issuance of a mining permit.The remaining 20% interest in the properties can be acquired for $6 million.

The company is compiling and analyzing previous work programs that occurred on the properties by the French Nuclear Energy Com mission from 1959 to 1990 and more recently by Orano from 2006 to 2012. The work included spec trometer surveys, geophysics, seis mic surveys, sampling, geological mapping and drilling.

Myriad also has a 50% inter est in the Millen Mountain gold property located in Nova Scotia. The remaining 50% interest is held by Probe Metals (TSXV: PRB, US-OTC: PROBF).

Myriad Metals has a market cap italization of $4.9 million.

n PUREPOINT URANIUM GROUP

Purepoint Uranium Group (TSXV: PTU, US-OTC: PTUUF), a Toronto-based exploration com pany with interests in 12 uranium properties in the Athabasca Basin, began a 3,500-metre 10-hole drill program at its Red Willow project in late September. The drill pro

The exploration camp at Basin Uranium’s Mann Lake project in Saskatchewan. BASIN URANIUM

gram follows one last winter that intersected uranium mineraliza tion along 1.2 km of strike length.

“Last winter’s drill program consistently returned anomalous uranium highlighted by (hole) RW22-06 that intersected 0.47% U3O8 over 0.9 metres, and our final winter hole RW22-15, which encountered alteration and struc ture favourable to uranium depo sition,” said Purepoint president and CEO Chris Frostad in a news release.

The company’s 100%-owned, 401.2 sq.-km Red Willow project is situated on the northern edge of the eastern Athabasca Basin near Ora no’s JEB mine (about 10 km south west), and Cameco’s Eagle Point mine (10 km due south).

Purepoint also continued air borne exploration efforts on its Car son Lake, Russell South and Hook Lake JV projects last summer. Pure point is the operator and 21% owner of the Hook Lake JV located on the southwestern edge of the Athabasca Basin adjacent to and on trend with the high-grade uranium discoveries at Fission Uranium’s (TSX: FCU, US-OTC: FCUUF) Triple R deposit and NexGen Energy’s (TSX: NXE, NYSE: NXE, ASX: NXG) Arrow deposit. Cameco and Orano each own a 39.5% interest in the Hook Lake JV, which is considered one of the highest quality uranium explora tion projects in the Athabasca Basin.

Aside from airborne electromag netics, exploration on the Hook Lake JV has included line cutting, ground induced polarization, EM and gravity surveys, a soil geo chemical survey and 143 diamond drill holes totalling 57,589 metres.

Purepoint also holds a 27% interest in the Smart Lake property in a joint venture with Cameco. Another 10 Athabasca Basin prop erties in its portfolio, including Red Willow, are wholly owned.

Purepoint has a market capital ization of $25.8 million.

n VALORE METALS

ValOre Metals (TSXV: VO, US-OTC: KVLQF), a Vancou ver-based exploration company, reported positive results from a

summer 2022 core drilling pro gram at its 100%-owned Angilak uranium property in Nunavut. The 594.8-sq.-km property hosts the Lac 50 Trend with an inferred resource of 2.8 million tonnes grading 0.69% U3O8, totaling 43.3 million lb. U3O8, making it the

highest grade uranium resource in Canada outside of Saskatchewan and one of the highest grade ura nium resources globally.

The summer 2022 drilling pro gram, undertaken to follow up on strong radioactive intercepts in 22 of 27 holes from a spring 2022 reverse-circulation drill program, intercepted radioactivity in 23 of 26 holes, including one hole that registered scintillometer readings of up to 60,000 counts-per-second. The 3,590-metre core drilling pro gram tested the down-dip exten sion and along-strike continuity of previous high-grade U3O8 inter cepts at the company’s Dipole and J4 West targets.

Since acquisition of Angilak in 2008, ValOre has invested more

than $55 million on resource delin eation and exploration drilling, metallurgy, geophysics, geochemis try and logistics. The company has drilled 589 holes totalling 89,572 metres.

Uranium mineralization on the 15-by 3-km Lac 50 Trend starts at surface and has been drilled to a depth of 380 metres.

ValOre also owns 50% of the Genesis property in the Athabasca Basin in partnership with Coast Copper (TSXV: COCO); 100% of the Hatchet Lake property, 3.5 km northeast of the Genesis property; and 100% of the Pedra Blanca PGE and gold property in northeastern Brazil.

ValOre has market capitalization of $56.9 million. TNM

Blue Sky Uranium’s geophysics team conducts an induced polarization survey at the company’s Amarillo Grande uranium-vanadium project in southern Argentina.

SKY URANIUM

SNAPSHOT from 14

Madison Metals’ Rössing North uranium project in Namibia. MADISON METALS

ValOre Metals’ Angilak property in Nunavut. VALORE METALS

Drilling at Purepoint Uranium’s property in northern Saskatchewan. PUREPOINT URANIUM

Paladin Energy adds more offtake orders ahead of Langer Heinrich restart

BY HENRY LAZENBY

Paladin Energy (ASX: PDN) has added another four pro visional offtake agreements to its order book as it prepares to restart the Langer Heinrich urani um mine in Namibia by the first quarter of 2023, the Western Aus tralia-based company announced in October.

Paladin says the four tender awards will see it supplying uranium to parties in the U.S. and Europe.

The company says it is working towards finalizing contract terms which will complement exist ing offtake agreements with Duke Energy and the Chinese National Nuclear Corporation (CNNC). The awards are subject to the execution of final contracts and approval by the Namibian government.

Paladin expects to provide guidance on volumes and pricing mechanisms once final contracts are executed.

Canaccord Genuity Capi tal Markets analyst James Bullen expects the new contracts to be similar in volume to the existing 2.1 million lb. Duke agreement.

During the quarter ended Sept. 30, Paladin made progress in restarting the mothballed Langer Heinrich operation.

Site contractors and mine per sonnel have continued removing redundant equipment in prepa ration for process upgrades. The company also reports it has com pleted site activities necessary to receive site construction contrac tors and project equipment and materials.

Meanwhile, the Namibian gov ernment water authority, NamWa ter, has confirmed the availability and supply of water capacity for the life of the mine.

Similarly, the Namibian power authority, NamPower, has con firmed the initial supply and upgrade pathway for the mine’s complete power requirements.

Paladin continues to source new equipment, refurbishment parts and materials remain, as well as planning for the Langer Heinrich processing plant and related infra structure that will be reused.

In the current quarter, the com pany will also focus on complet ing contracting site work packages and progressing the NamPower and NamWater agreements and infrastructure upgrade works.

Paladin also says it is pro gressing in negotiations with the national government to confirm that the fiscal regime will remain unchanged.

In September, Paladin had US$163 million in cash and no corporate debt.

Bullen believes the company

remains well funded to cover the revised budget on a 100% basis, along with reasonable working capital requirements. That said, he expects that the company will seek to establish a working capital facil ity before the first production, in the range of US$20 to US$50 mil lion.

“With regard to CNNC (who owns 25% of Langer Heinrich), it is yet to finalize its funding deci sion, but we understand that it remains supportive (albeit without reaching into its pocket yet),” said Bullen in a note to clients.

Paladin noted in July that the capital cost to restart the mine has increased to US$118 million from a previous estimate of US$87 mil lion, “primarily driven by recent

inflationary pressures across the project supply chain, brought for ward power and water infrastruc ture works and increased owners’ team costs.”

Langer Heinrich is located in the Namib Desert 80 km east of the principal seaport of Walvis Bay and 40 km south-east of Namibia’s — and the world’s — longest-run ning open pit uranium mine, China National Uranium Corpo ration’s Rössing.

Langer Heinrich production started in 2007 with a capacity of 2.7 million lb. of uranium oxide per year. This was subsequently expanded to 3.7 million lb. in 2009 and 5.2 million lb. in 2012.

Still, following the continued decline in uranium prices, a min

ing curtailment strategy was intro duced in November 2016, and in May 2018, the mine was transi tioned to full care and mainte nance. The mine produced more than 43.3 million lb. of uranium oxide over its 10 years of previous operations.

According to a November 2021 resource statement, Langer Hein rich holds total measured and indicated resources of 140.1 mil lion tonnes grading 415 parts per million uranium oxide, for 128.1 million lb. of metal.

The company’s shares recently traded in Sydney at A82¢ apiece, giving Paladin a A$2.4-billion market cap. The stock is down 13% over the past 12 months, ranging between A53¢ and A$1.03. TNM

QUARTERMAIN from 1

Teck Resources in the 1980s, being gay was a crime in many countries. Even in Canada, employees could still be fired for being gay.

It was only in 1992 that the Canadian Armed Forces officially allowed members of the LGBTQ community to serve (Quartermain was a young Royal Canadian Air Force cadet, and was appointed an honourary colonel for his sup port of the Canadian Armed Forces throughout his career). And it wasn’t until 2019 that the World Health Organization determined that sexual diversity is not a mental health disorder.

On Indigenous engagement

Quartermain also spoke at length about Indigenous engagement — which continues to be an area that many mining companies struggle with. He recalled that when Pre tium was negotiating an engage ment agreement with the Gitksan and Nisga’a Nations for explora tion at Brucejack, he learned a bit of their language while talking with the guests and watershed chiefs.

“[There was] just enough, it was online… that’s one of the chal lenges about education, we don’t learn about the things that are important,” he said.

“If you end up in a small com

munity in northern Peru, where you want to engage with the local community to get the rights to drill in their property, that needs engagement and conversation.”

Quartermain said during negoti ations in the field, everything rode on a handshake.

“That was how it had to be done, when you were doing things in the bush. And that’s what I tried to take and do throughout my career, whether we’re working in Latin America, or Africa, to make sure that what we said would be good and be true to our word in those regards,” he said. “So those were good things to learn in my career and those values and principles have helped me throughout.”

On equity and diversity

Quartermain stressed that when dealing with a labour force, regard less of whether it’s a worker at the mine face or in the office, it’s all about respect.

“I think equity and respect across all of your platforms is a key thing that you have to do. And it’s cer tainly something that I’ve done in my career — as you’re respectful to your workers, and then when you go out into other communities,” he said.

“I think one of the challenges with the industry is we work where the mines are located. There’s going

to have to be a better distribution of that wealth,” he said, adding that local communities need to receive more of the profits that companies make.

Quartermain also noted that the industry needs to continue its efforts in equity and diversity to attract more talent. “It’s the pres sure in any organization, whether it’s our military or whether it’s in ours where we have to be able to open up our organization and find those places where we can get bet ter equality… and that has to come through education and conversa tion but it needs to be respectful, and I think that’s the key thing.”

On the biggest lessons learned as a CEO

As a leader, Quartermain said some of the most important things he learned are to seek out facts over opinion, to look at and understand details, and to be able to delegate and trust.

Developing trusting relations with the First Nations while explor ing and developing Brucejack, for example, resulted in “an ultimate good outcome for everyone,” he said.

“But as part of that, we were focusing on data and complicated quality data. And there were some other individuals who had opin

ions about the data, which were ultimately proven to be wrong in court,” he added, referring to doubts that consultant Strath cona Mineral Services raised about Brucejack’s economic viability.

(Two recent court rulings have backed Pretium’s decision not to disclose those doubts because the company believed the consultant to be wrong.)

On the mining industry as a rewarding career

Quartermain said it’s important to be proud of “what we do as an industry,” and pointed to knowl edge gaps in society about the source of the raw materials we use every day.

“[To] everyone who has a cell phone here — there’s 30 elements in that cell phone. And that’s what I use every day that some one brings up and pushes back on what I do, because ‘it’s not con tributing to the environment.’ It very much is contributing to the environment.

“It’s all the computers that are driven by the gold contacts, it’s inert, it’s not going to corrode. That’s what’s powering the world. And that’s what’s powering our communication. People have to understand it’s necessary, we just have to do it in a good way and keep people informed.”

Paladin Energy owns 75% of the Langer Heinrich uranium mine in Namibia, with Chinese National Nuclear Corp. holding 25%. PALADIN ENERGY

Bob Quartermain is interviewed by Jeff Stibbard, CEO of JDS Group of Companies at the Mining Legends Speaker Series event on Sept. 8. THE NORTHERN MINER

TORONTO STOCK EXCHANGE / OCTOBER 14 –21, 2022

Markets were higher over the week as inves tors searched for a bottom to recent falls, anticipating that central banks won’t con tinue interest rate hikes for too much longer now that inflation is beginning to tick lower, in the United States and Canada at least. Gold retreated slightly.

The S&P/TSX Composite Index gained 534.6 points or 2.9% to 18,860.95. The S&P/ TSX Global Mining Index increased 4.7 points or 5.3% to 93.77, and the S&P/TSX Global Base Metals Index gained 10.5 points or 6.8% to 163.88. The S&P/TSX Global Gold Index added 9.87 points or 4.3% to 239.41, and spot gold ended the week at US$6.05 per ounce lower, or 0.4%, at US$1,643.25 per oz.

Potash fertilizer producer Verde Agri tech was the largest gainer in percentage terms over the week on the TSX, jumping by a third or $1.54 to close on Friday at $6.19. Perseus Mining added 18% to finish at $1.55.

Brazil-focused Verde Agritech said on Oct. 19 it had solved water issues during the construction of access roads to its Plant 2 as the company targets total output of 700,000 tonnes of fertilizer by year’s end and 2 mil lion tonnes next year. The water issues were first reported last month.

“Fortunately, the road issue did not damage

human or environmental wellbeing and was surmounted quickly and definitely,” Verde founder, president and chief executive offi cer Cristiano Veloso said in a release. “Now we can put all our focus on achieving another year of record production and delivery.”

Verde, which is based in Belo Horizonte, Brazil, posted net profit of $12.6 million for the half year through June and started trad ing on the TSX in August at $8.70.

The company has a combined measured and indicated mineral resource of 1.5 billion tonnes grading at 9.28% potassium oxide, amounting to 295.7 million tonnes of potas sium oxide.

The company says it is planning to build a

TSX MOST ACTIVE ISSUES

Suncor Energy SU 27296 45.64 41.60 45.50

Barrick Gold ABX 20523 20.65 19.78 20.52

third plant which aims to increase output by 10 million tonnes. It is currently licenced to make 2.8 million tonnes per year of its fer tilizers.

Brazil is the second largest potash importer, behind the United States and ahead of China and India, according to the United Nations Food and Agriculture Organization. Bra

TSX GREATEST PERCENTAGE

VOLUME WEEK (OOOs) HIGH LOW CLOSE CHANGE

Firestone Vent FV.H 76 0.05 0.00 0.05 + 66.7

Aurora Royal AUR.H 3 0.03 0.00 0.03 + 66.7

Orestone Mng ORS 1184 0.03 0.00 0.03 + 50.0

San Lorenzo SLG 2440 0.10 0.06 0.08 + 50.0

Hawkeye Gld&Di HAWK 8 0.02 0.00 0.02 + 50.0

Terreno Res TNO.H 159 0.04 0.00 0.03 + 50.0

Nexus Gold NXS 59 0.02 0.00 0.02 + 50.0

Global Energy GEMC 100 0.09 0.00 0.09 + 38.5

AFR NuVenture AFR 22 0.04 0.00 0.04 + 33.3

CanXGold CXG 42 0.04 0.00 0.04 + 33.3

HFX Holding HXC.H 37 0.01 0.00 0.01 85.7

zil consumed 7.9 million tonnes of potash in 2021, according to an industry study.

Perseus Mining gained after it sold a 39% interest in Mako Gold’s flagship Napié gold project in Côte d’Ivoire to Mako for a 2.9% stake in Mako and future payments of A$4.8 million ($4.1 million) depending on meeting resource and production targets. TNM

TSX GREATEST VALUE

Franco-Nevada FNV 1498 165.33 + 5.50

Lithium Amer LAC 3408 35.87 + 5.06

Nutrien NTR 6338 113.07 + 4.87

Teck Res TECK.A 5 48.75 + 4.00

Teck Res TECK.B 5354 48.05 + 3.79

Agnico Eagle AEM 5123 58.75 + 3.03

Cameco Corp CCO 13289 32.46 + 2.94

Suncor Energy SU 27296 45.50 + 2.46

First Quantum FM 14749 26.72 + 2.41

Labrador IOR LIF 1463 29.14 + 2.03

Ero Copper ERO 1208 15.60 1.54

2.46

0.86

Kinross Gold K 15405 4.94 4.55 4.91 + 0.26

First Quantum FM 14749 26.79 22.43 26.72 + 2.41

B2Gold Corp BTO 14527 4.30 3.98 4.26 + 0.21

Cameco Corp CCO 13289 32.55 30.06 32.46 + 2.94

NorZinc NZC 12563 0.04 0.03 0.03 unch 0.00

Argonaut Gold AR 11704 0.42 0.36 0.42 + 0.03

Lundin Mng LUN 11699 7.09 6.54 7.09

IAMGOLD IMG 11144 1.87 1.47 1.86

TSX VENTURE EXCHANGE / OCTOBER 14 –21, 2022

The S&P/TSX Venture Composite Index edged up 11.95 points or 2.1% over the Oct. 17-21 trading session to end at 593.04.

Sigma Lithium was the week’s top gainer by value, rising $7.58 to $48.42 per share. While the emerging lithium miner did not release any recent news, it is benefiting from lithium prices that continue to rally on tight supplies. Sigma is nearing the end of con struction of the first phase of its Grota do Cirilo project in Minas Gerais state, Brazil.

The hard rock spodumene project is initially expected to produce 34,000 tonnes per year of lithium carbonate equivalent (LCE). A second phase expansion would add another 33,000 tonnes of LCE production. Lithium prices hit an all-time high on Oct. 13, with Chinese battery-grade lithium carbonate ris ing to US$74,475 per tonne.

The next top gainer by value was Los Andes Copper, adding $1.13 to $14.25 per share on no news. The company is working on a prefeasibility study for its Vizcachitas porphyry copper-molybdenum project, 120 km north of Santiago, Chile, due out before the end of the year. The company had experi enced a setback at the project in March, when a court suspended its environmental licence and Los Andes had to suspend drilling. A July environmental court decision rein

0.49

0.42

Tombill Mines TBLL 18458 0.02 0.01 0.01 66.7

CaNickel Mng CML 146 0.06 0.00 0.04 50.0

Noble Metal NMG.H 60 0.01 0.00 0.01 50.0

Blue Thunder BLUE 21 0.01 0.00 0.01 50.0

RT Minerals RTM 173 0.01 0.00 0.01 50.0

Akwaaba Mining AML 1 0.01 0.00 0.01 50.0

Discovery Harb DHR 20 0.01 0.00 0.01 50.0

Adex Mining ADE 23 0.01 0.00 0.01 50.0

Great Quest Fe GQ 20 0.01 0.00 0.01 50.0

Turquoise HIl TRQ 2970 38.93 1.14

Sierra Metals SMT 1275 0.29 0.43

Filo Mg Corp FIL 571 16.15 0.42

Arizona Metals AMC 426 3.65 0.34

Wesdome Gold WDO 2291 8.01 0.33

Triple Flag TFPM 97 15.89 0.30

Capstone Mng CS 5608 3.06 0.17

Solaris Res SLS 910 5.06 0.17 Marimaca Cop MARI 23 3.33 0.13

stated the drilling permit with certain oper ational conditions, including a restricted drilling plan for the first 12 months. Los Andes plans to restart exploration shortly. The court order related to the protection of the Andean cat, a threatened species, and the potential impact of the drill program on the habitat of the vizcachas, a small rabbit that is part of the cat’s food chain. A 2019 prelimi nary economic assessment outlined a largescale 45-year open pit operation with daily throughputs of between 55,000 and 200,000 tonnes and capital costs of between $1.3 bil lion and $2.8 billion.

Nouveau Monde Graphite lost 44¢ over the week, closing at $6.93 per share as it announced a framework agreement with

WEEK (OOOs)

LOW CLOSE CHANGE

Mitsui and Panasonic on Oct. 20. At this stage, Nouveau Monde has a non-binding memorandum of understanding with Pana sonic for an offtake of the company’s prod uct. Nouveau Monde released a feasibility study on its Matawinie graphite project and Bécancour battery material plant this sum mer, with the combined capex totalling $1.4 billion.

TSX-V GREATEST PERCENTAGE CHANGE

Firestone Vent FV.H 76 0.05 0.00 0.05 + 66.7

Aurora Royal AUR.H 3 0.03 0.00 0.03 + 66.7

Orestone Mng ORS 1184 0.03 0.00 0.03 + 50.0

San Lorenzo SLG 2440 0.10 0.06 0.08 + 50.0

Hawkeye Gld&Di HAWK 8 0.02 0.00 0.02 + 50.0

Terreno Res TNO.H 159 0.04 0.00 0.03 + 50.0

Nexus Gold NXS 59 0.02 0.00 0.02 + 50.0

Global Energy GEMC 100 0.09 0.00 0.09 + 38.5

AFR NuVenture AFR 22 0.04 0.00 0.04 + 33.3

CanXGold CXG 42 0.04 0.00 0.04 + 33.3

HFX Holding HXC.H 37 0.01 0.00 0.01 85.7

Tombill Mines TBLL 18458 0.02 0.01 0.01 66.7

CaNickel Mng CML 146 0.06 0.00 0.04 50.0

Noble Metal NMG.H 60 0.01 0.00 0.01 50.0

Blue Thunder BLUE 21 0.01 0.00 0.01 50.0

RT Minerals RTM 173 0.01 0.00 0.01 50.0

Akwaaba Mining AML 1 0.01 0.00 0.01 50.0

Discovery Harb DHR 20 0.01 0.00 0.01 50.0

Adex Mining ADE 23 0.01 0.00 0.01 50.0

Great Quest Fe GQ 20 0.01 0.00 0.01 50.0

Nouveau Monde also announced a US$50-million financing by Mitsui (US$25 million), Pallinghurst and Investissement Québec (US$12.5 million each). The private placement, consisting of convertible notes, will support the finalization of the design, operation, marketing and corporate param eters of Nouveau Monde’s commercial inte grated operations, the company said. TNM

TSX-V GREATEST VALUE CHANGE

Sigma Lithium SGML 323 48.42 + 7.58

Los Andes LA 62 14.25 + 1.13

Rock Tech Lith RCK 748 3.31 + 0.54

EnCore Energy EU 364 3.69 + 0.27

Cons Uranium CUR 487 2.00 + 0.24

Atlas Salt SALT 1872 1.87 + 0.23

Desert Mtn Egy

IsoEnergy

Canadian North

NGEx

Highwood

197 2.26 + 0.16

185 3.54 + 0.16

15 2.35 + 0.15

329 2.33 + 0.14

0 8.00 0.50

Nouveau Monde NOU 130 6.93 0.44

Inter-Rock Mnl IRO 12 0.60 0.20

Frontier

Chesapeake

Artemis

Stakeholdr

Prime Mining

Eloro

Sailfish

Vision Lithium VLI 4197 0.13 0.10 0.11 + 0.01

U.S. MARKETS / OCTOBER 14 –21, 2022

The Dow Jones Industrial Average gained 1,447.7 points or 4.9% during the Oct. 17-21 trading week to 31,082.56, and the S&P 500 closed 169.7 points or 4.7%% higher at 3,752.75.

This week’s top mining-focused value gainer was Mosaic, which added US$6.24 to close at US$53.10 per share. The crop nutri ent producer and distributor’s share price has been on a positive trajectory over the past two weeks after the company said its subsidiary, North American Phosphates, was negatively impacted by damage caused by Hurricane Ian. Significant flooding and high winds were experienced throughout central Flor ida during the storm, and this caused mod est damage to Mosaic Company facilities and supporting infrastructure. Early assessments indicate phosphate production could be down by about 200,000 to 250,000 tonnes, split about evenly between the third and fourth quarters of 2022. Repairs are expected to be completed over the next couple of weeks. In a separate announcement on Oct. 19, Mosaic announced the board had declared a quarterly dividend of US15¢ per share, payable to share holders of record on Dec. 15. Mosaic has an annualized dividend yield of 1.14%.

Iamgold was this week’s top percentage gainer, adding 31.4% to close at US$1.38. The

stock is in play following the company’s Oct. 18 announcement that it had agreed to sell its stake in the Rosebel gold mine in Suriname to Zijin Mining in a deal valued at US$360 million. The Chinese miner will acquire Iam gold’s 95% interest in Rosebel Gold Mines, which owns the Rosebel operation and a 70% participating interest in the Saramacca mine, a satellite for Rosebel. Zijin also assumes Iam gold’s equipment lease liabilities amounting to about US$41 million. The Toronto-based miner revealed in January it was evaluat ing options for Rosebel and said the mine required material capital investment to address specific challenges. Iamgold said the sale proceeds would be invested in the ongo ing construction of the Côté gold project in

Ontario, which is $1.9 billion over its original cost estimate of between US$879 million and US$925 million. The company’s share of the cost overrun is US$1.3 billion.

The week’s most active issue was Vale, with 40.9 million shares changing hands during the week. The company said on Oct. 21 it is reconsidering a spin-off of its base metals business and an eventual public list

1831 2.01 0.16

28 1.87 0.13

900 4.22 0.13

0.38

355 1.27 0.10

3.45

ing. The Brazilian miner had a longstanding plan to sell the unit that was still being con sidered as recently as 2021. But rather than selling all or part of it, the company is now looking to separate and ring-fence the copper and nickel unit from the iron ore business as the two have different growth prospects, Reuters reported Vale’s CEO, Eduardo Bar tolomeo, said at the FT Mining Summit. TNM

22.83 26.30 + 18.6

Coeur Mng* CDE 23879 3.87 3.37 3.86 + 18.0

Freeport McMoR* FCX 95076 32.13 27.83 32.03 + 15.9

Intrepid Pots* IPI 1208 46.08 40.51 45.70 + 15.4

Hecla Mining* HL 39283 4.82 4.26 4.79 + 14.9

United States S* X 49651 21.66 19.25 21.65 + 14.9

Mosaic* MOS 19019 53.13

Peabody

CONSOL

Nouveau

63203 16.46 14.56

1305 3.59 3.11 3.57

27735 27.73 22.84 23.87

12.60 10.59 11.44 7.1

5.1

3832 73.99 61.36

4793 28.55 0.28

Nouveau Monde* NMG 392 5.07 0.26

Black Hills* BKH 2717 61.33 0.02

HudBay Min*

Yamana

8326 4.00

65794 4.58

86926 3.58

0.16

0.22

0.23

METALS, MINING AND MONEY MARKETS

PRODUCER AND DEALER PRICES

1.2 S02-R,W: US$176.65

Coal:

Coal: Powder River Basin, 8,800 Btu, 0.8 S02-R, W: US$17.45

Cobalt: US$23.25/lb.

US$3.48/lb.

Copper: CME Group Futures

2022: US$3.41/lb.

2022: US$3.42/lb.;

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

Iron Ore 62% Fe CFR China-S: US$93.00

Lead: US$0.88/lb.

Rhodium: Mid-mkt US$14,090/tr. oz.

Ruthenium: Mid-mkt US$488 per oz.

Silver: Handy & Harman Base: US$19.23 per oz.; Handy & Harman

Fabricated: US$24.03 per oz.

Tin: US$8.32/lb.

Uranium: U3O8, Trading Economics spot price: US$53.35 per lb.

U308

Zinc: US$1.37 per lb.

Prices current Oct. 25, 2022

TSX

Short positions outstanding as of Sep 30, 2022 (with changes

Largest

Largest

Ivanhoe Mines IVN 20262130 -321066 9/15/2022

Barrick Gold ABX 18423729 2492440 9/15/2022

Kinross Gold K 16101684 1631844 9/15/2022

Suncor Energy SU 15004816 -207208 9/15/2022

IAMGOLD IMG 12329164 5481563 9/15/2022

New Gold NGD 12241677 182374 9/15/2022

Sandstorm Gold SSL 11327713 8979079 9/15/2022

Fortuna Silvr FVI 11186720 741366 9/15/2022

Lundin Mng LUN 10829294 -2614681 9/15/2022

Denison Mines DML 9668230 903749 9/15/2022

Copper Mtn Mng CMMC 9533527 -1706846 9/15/2022

B2Gold Corp BTO 9044448 -1068205 9/15/2022

First Quantum FM 9030787 -183996 9/15/2022

Nexgen Energy NXE 9022156 1969497 9/15/2022

Taseko Mines TKO 8632761 -68238 9/15/2022

Largest increase in short position

Sandstorm Gold SSL 11327713 8979079 9/15/2022

IAMGOLD IMG 12329164 5481563 9/15/2022

Barrick Gold ABX 18423729 2492440 9/15/2022

Yamana Gold YRI 6439058 2296140 9/15/2022

Nexgen Energy NXE 9022156 1969497 9/15/2022

Largest decrease in short position

Marathon Gold MOZ 2640881 -6694841 9/15/2022

Lundin Mng LUN 10829294 -2614681 9/15/2022

GoGold Res GGD 1089635 -2456171 9/15/2022

Americas Silvr USA 2334013 -1819410 9/15/2022

Copper Mtn Mng CMMC 9533527 -1706846 9/15/2022

Silver Mount AGMR 2941747 2669698 9/15/2022

GoviEx Uranium GXU 2752108 953799 9/15/2022

Standard Uran STND 2493912 396259 9/15/2022

Blackrock Silv BRC 2163211 -30720 9/15/2022

Blue Sky Uran BSK 2123384 336770 9/15/2022

Pure Gold Mg PGM 2111272 287463 9/15/2022

C3 Metals CCCM 1475213 -2101415 9/15/2022

Artemis Gold ARTG 1374622 -102582 9/15/2022

New Found Gold NFG 1257377 82175 9/15/2022

Aston Bay BAY 1202750 1145611 9/15/2022

Giga Metals GIGA 1189351 89913 9/15/2022

Guanajuato Sil GSVR 1130283 14606 9/15/2022

Lion One Mtls LIO 967493 736711 9/15/2022

Jourdan Res JOR 950038 855298 9/15/2022

Frontier Lith FL 884216 50312 9/15/2022

Largest increase in short position

Silver Mount AGMR 2941747 2669698 9/15/2022

Aston Bay BAY 1202750 1145611 9/15/2022

GoviEx Uranium GXU 2752108 953799 9/15/2022

Jourdan Res JOR 950038 855298 9/15/2022

Norse Gold VKG.H 835441 835000 9/15/2022

Largest decrease in short position

C3 Metals CCCM 1475213 -2101415 9/15/2022

Strikepoint Gd SKP 46039 -2050031 9/15/2022

Sterling Metal SAG 34466 -998716 9/15/2022

Alphamin Res AFM 320180 -936373 9/15/2022

Doubleview Gld DBG 24161 -844667 9/15/2022

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. Gran Colombia Gold (GCM.WT.B) - One

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.

TSX WARRANTS

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 the Issuer at $3.00 until expiry.

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.

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.

Aluminum 2273.5/2277

Copper 7650/7585.5 7585/7524

2373.5/2360 2308.5/2302

7662/7570 7687.5/7585

Lead 2095/2051 2029/1990 2078/2024 2078.5/2023 2058/2020

Nickel 22060/22250 22350/22350

21910/22050 21905/22050

20145/20000 20250/20100 19995/19895 20075/20050 19925/19900

3009/2993 2965/2945 2970/2943 2955/2921 2960/2923

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.

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.

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.

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.

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.

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