Canadian Securities Exchange Magazine • September 2023 by Canadian Securities Exchange

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IN THIS ISSUE

The Precious Metals Issue CONTENTS

Letter from the Editor | 4 Tune In | 7

Catch up on the ESG and SRI– focused content from the CSE’s Summit on Responsible Investment on June 27 in Kelowna

Welcome to the CSE | 10

ACME Lithium | 26

Multiple projects in top jurisdictions position ACME to make most of long-term lithium boom

Exploits Discovery | 30

Core Assets | 14

SPOTLIGHT ON

Asante Gold | 18

Company leadership looking forward to gold production ramping up to over 500,000 ounces

Disciplined strategy positions young gold exploration company to make progress in any market

Discover these recently listed companies pursuing a variety of opportunities around the globe

Pursuing base and precious metals CRD-style in British Columbia

Headwater Gold | 22

THE MINING ISSUE

Aiming to become the next big name in Newfoundland’s gold rush

Rob Cook | 36

Dive into insights and trends in mining and the capital markets with Rob Cook, the CSE’s Senior Vice President of Market Development

PUBLISHER Sparx Publishing Group Inc. sparxpg.com For advertising rates and placements, please contact advertising@sparxpg.com

Core Assets

GROUP PUBLISHER Hamish Khamisa EDITOR-IN-CHIEF James Black

Asante Gold

Headwater Gold

ACME Lithium

ART DIRECTOR Nicole Yeh WRITERS Stephen Gunnion Angela Harmantas Emily Jarvie Sean Mason Peter Murray Libby Shabada

EDITORS Peter Murray Libby Shabada Michelle Baleka

FREE DIGITAL SUBSCRIPTION Published by Sparx Publishing Group on behalf of the Canadian Securities Exchange. To receive your complimentary subscription, please visit go.thecse.com/Magazine and complete the contact form. To read more about the companies mentioned in this issue, visit blog.thecse.com or proactiveinvestors.com

Exploits Discovery

TERRITORY ACKNOWLEDGEMENT The Canadian Securities Exchange acknowledges that our work takes place on traditional Indigenous territories.

Letter from the Editor even further afield in West Africa, the companies featured in this issue of Canadian Securities Exchange Magazine reflect a trend toward pursuing projects for both precious and critical metals in stable jurisdictions to minimize the risks to supply disruption, something the world became acutely exposed to during the COVID-19 pandemic and subsequent geopolitical events across Europe and Asia.

One of the hallmarks of stock markets is that they are forward-looking. That said, if there is one industry within the public markets that has a deep appreciation for the past and its sway on the future, it’s the mining sector. While precious metals continue their legacy of popularity on the world stage, it seems the word “precious” is taking on new meaning in today's world. Energy-linked metals, such as lithium and uranium, are quickly becoming some of the most soughtafter metals to feed the growing shift toward cleaner technologies. From Nevada to Newfoundland to sites across North America and

Of course, mining holds a special place in the history of the CSE. Almost two decades ago, when the CSE — then named CNQ — launched, many of the initial listings were based in the mining sector. At that time, the price of gold was about US$400 an ounce and the world was still recalibrating after the dot-com bubble. Fast forward to today. As this issue of Canadian Securities Exchange Magazine goes to press, gold is just shy of US$2,000 an ounce, and we're celebrating not only having grown to over 800 listings but also a number of other important milestones. Among the biggest of these developments this year are the launch of the Senior Tier on the CSE and margin eligibility of CSE-listed securities.

With a significant number of our listed issuers now exceeding C$50 million in market cap, these new enhancements illustrate our ongoing commitment to lower the cost of capital to our listed issuers. At the same time, we've been deepening our corporate bench with an incredible team of capital markets professionals, as well as rolling out a refreshed look and feel to carry our story forward into our next chapter as Canada's entrepreneurial exchange. The elements of exceptional people, dogged perseverance and growth-focus are something that all mining and exploration companies, including those featured in this issue, are already well acquainted with. As the mining sector leans into its role in supporting the world of tomorrow, we firmly believe that mining entrepreneurs and investors alike will look to the CSE's track record in the space and continue to see an exchange that understands what it takes to build a future worth looking forward to.

James Black Editor-in-Chief james.black@thecse.com

CSE TV

THE MINING ISSUE

Listen to a variety of in-depth conversations with thought leaders and innovators on Season 3 of The Exchange for Entrepreneurs Podcast. You can find it on Apple Podcasts, Google Play, Spotify, Stitcher, YouTube, and iHeartRadio. Tune in: blog.thecse.com/cse-podcasts

On the Web

Stay up to date on what's happening in the capital markets. Join our community of subscribers who tune in to CSE TV for insightful content about developments in mining and beyond. Subscribe now: go.thecse.com/CSETV

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TUNE IN

Summit on Responsible Investment Catch up on the ESG and SRI–focused content from the CSE’s Summit on Responsible Investment on June 27 in Kelowna

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

Highlights from the Summit Summit Opening Remarks Enjoy the Summit’s opening remarks from the CSE’s Anna Serin and Richard Carleton, and Sparx Publishing Group’s Hamish Khamisa. Hear Richard’s thoughts on the importance of creating space for conversations on ESG and SRI.

PANEL

How the World of ESG is Affecting Disclosure Catch up on the “How the World of ESG is Affecting Disclosure” panel, which featured Bill Gilliland from Dentons, Seth Forman from Socialsuite and Edward Olson from MNP, where the three present on and discuss recent reporting and disclosure developments, standards and frameworks, the benefits of ESG, reporting, and more.

COMPANY SPOTLIGHT

Mining and Critical Minerals Get to know some mining and critical metals companies engaged in ESG practices from company executives, Marc Branson from First Phosphate (CSE:PHOS), Sean Crowe from 3R Circuits, Tyrone Docherty from First Tellurium (CSE:FTEL), Robert McAllister from Enertopia (CSE:ENRT) and Penny White from Lancaster Resources (CSE:LCR).

PANEL

Accelerate Okanagan Meet three entrepreneurial companies that have come up with innovative solutions to social and climate problems through the lens of ESG. Hear from Alisha McFetridge from RainStick, Angela Nagy from GreenStep and Justin Goodhew from Trellis in this panel, brought to you by Accelerate Okanagan and moderated by Nicole Rustad from Carbon Counts.

THE MINING ISSUE

Want more Summit on Responsible Investment content? WATCH THE FULL PLAYLIST

Subscribe to our YouTube channel to watch new episodes and replays: youtube.com/CSETV CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

WELCOME TO THE CSE

Mining & Exploration Companies Discover these recently listed companies pursuing a variety of opportunities around the globe

Volta Metals CSE:VLTA Listing Date: September 25, 2019 Fundamental Change: May 31, 2023 Volta Metals is a Canadian exploration company focused on lithium, tantalum and cesium, with a large land package in two emerging lithium bearing pegmatite districts in Ontario. It has six exploration projects, which are road accessible and close to major infrastructure. Learn more: thecse.com/en/listings/mining/ volta-metals-ltd

First Phosphate Eagle Royalties CSE:ER Listing Date: May 24, 2023 Eagle Royalties is a royalty company with royalty interests in a broad range of commodities, including gold, silver and uranium; critical metals, including copper, zinc, rare earth elements, lithium and cobalt; and other minerals, including diamonds and industrial minerals. Learn more: thecse.com/en/listings/mining/eagle-royalties-ltd

Sorrento Resources CSE:SRS Listing Date: February 22, 2023

CSE:PHOS Listing Date: February 22, 2023 First Phosphate is a mineral development company dedicated to extracting and purifying phosphate in the Saguenay-Lac-Saint-Jean region in Québec for the production of cathode active materials for the lithium iron phosphate battery industry. Learn more: thecse.com/en/listings/mining/ first-phosphate-corp

Lancaster Resources CSE:LCR Listing Date: December 29, 2020 Fundamental Change: June 14, 2023

Sorrento Resources is engaged in the business of mineral exploration and the acquisition of mineral property assets in Canada. The company is focused on conducting its exploration program on the Wing Pond Property in Eastern Newfoundland.

Lancaster Resources is engaged in exploring energy transition metals to take advantage of the global shift toward decarbonization and electrification. Its Alkali Flat Lithium Project in New Mexico involves the exploration of a below-surface lithium brine target.

Learn more: thecse.com/en/listings/mining/ sorrento-resources-ltd

Learn more: thecse.com/en/listings/mining/ lancaster-resources-inc

THE MINING ISSUE

Caravan Energy

EV Minerals

Hertz Lithium

CSE:CNRG Listing Date: March 17, 2023

CSE:EVM Listing Date: June 19, 2023

CSE:HZ Listing Date: April 5, 2023

Caravan Energy is a Canadian exploration company currently focused on the exploration of the EBB Nickel-Cobalt property, which comprises three contiguous mining claims covering approximately 2,199 hectares near Port Renfrew, British Columbia.

EV Minerals is an exploration company with sights set on becoming one of the next domestic suppliers of critical metals for the ever-growing electric vehicle market through the development of its NickelCopper-Cobalt project in Québec.

Learn more: thecse.com/en/listings/mining/ caravan-energy-corporation

Learn more: thecse.com/en/listings/mining/ ev-minerals-corporation

Hertz Lithium is a British Columbia–based mineral exploration company that is primarily engaged in the acquisition and exploration of mineral properties. It currently has one material mineral property, its Lucky Mica Project in Arizona, which is in the exploration stage.

Miata Metals CSE:MMET Listing Date: July 20, 2023 Miata Metals is a junior mining company engaged in the acquisition, exploration and development of mineral projects. The company is currently focused on the exploration of its Cabin Lake Property, located in the Omineca Mining Division of central British Columbia. Learn more: thecse.com/en/listings/mining/ miata-metals-corp

ATHA Energy

Nuclear Fuels CSE:NF Listing Date: July 10, 2023 Nuclear Fuels is focused on its district-scale In-Situ Recovery (ISR) uranium projects in proven and prolific jurisdictions. The company has properties in Wyoming, Labrador and Arizona, with its Wyoming Powder Basin project, its current priority. Learn more: thecse.com/en/listings/mining/ nuclear-fuels-inc

Learn more: thecse.com/en/listings/mining/ hertz-lithium-inc

LFNT Resources CSE:LFNT Listing Date: April 26, 2023 LFNT Resources is a British Columbia–based mineral exploration company focused on the development of assets containing battery, base and precious metals. It holds two options: one in British Columbia’s Cariboo Mining District and one in the La Ronge region of Saskatchewan. Learn more: thecse.com/en/listings/mining/ lfnt-resources-corp

CSE:SASK Listing Date: April 11, 2023 ATHA is a mineral exploration company focused on the acquisition, exploration and development of mineral resource properties. It holds a land package of 3.4 million acres in the Athabasca Basin, a world-class uranium district. Learn more: thecse.com/en/listings/mining/ atha-energy-corp

MORE CONTENT Get to know the executives of CSE-listed companies on CSE TV: youtube.com/CSETV

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

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Core Assets Pursuing base and precious metals CRD-style in British Columbia By Angela Harmantas

COMPANY INTERVIEW

ritish Columbia’s Atlin region is well known for historic placer gold mining. But Core Assets (CSE:CC) has its sights set on a different type of target: base metals and precious metals, with a focus on silver, in what are known as carbonate replacement style deposits. It’s a unique strategy that has led the new company to an area that has never been explored for base metals and silver. In the wake of a glacial recession, Core’s team, led by Chief Executive Officer Nick Rodway, believes it might have found one of the largest untouched carbonate replacement style systems in the world. “It's a remarkable achievement, and we're thrilled to be the first ones to drill in this area,” Rodway says during a recent interview with Canadian Securities Exchange Magazine. Carbonate replacement deposits (CRDs) are a type of deposit formed through the replacement of carbonate rocks, such as limestone or dolomite, by ore-bearing fluids. These deposits are known for their association with base metals, such as lead, zinc and copper, as well as precious metals like silver. The formation of CRDs typically occurs when hydrothermal fluids, enriched in metals and sulfur, come into contact with carbonate-rich rocks. These types of deposits are important targets for exploration and mining activities because of their potential to yield valuable metals. However, the exploration and exploitation of carbonate replacement deposits can be challenging due to their complex geological nature and the need for careful evaluation to ensure economic viability. Core has something to prove and is well on its way to showcasing Atlin as an exciting new mining district.

Core’s flagship property, Blue, contains two main projects: the Laverdiere porphyry-skarn and the Silver Lime CRD-porphyry project. How do each shape your activity at the site?

We have two projects in our large contiguous land package, which we call the Blue property. Within Blue, there are several projects: Laverdiere is a porphyry-skarn area that we drilled last year with some success. This year, we’re focusing on where our best results came from — the Silver Lime CRD. The company holds a 100% ownership position in Blue. How do you manage and prioritize exploration efforts across such a large land position?

Having a large land package is really beneficial because once you make one discovery, history shows that there's a good chance of finding multiple discoveries along the same trend. When we first explored the area and saw promising signs on the ground, I knew it was time to expand our scope and include all the limestone and calciumrich rocks in the region. Right now, our main focus is on a manageable 6 kilometre by 1.8 kilometre area, and that's where our funds are directed. But the exciting part is the potential upside in the rest of the land package. If our drilling continues to be successful, it opens up opportunities for more exploration along the entire stretch.

Nick Rodway

Chief Executive Officer

Company

Core Assets

CSE Symbol CC

Listing date July 27, 2020

Website

coreassetscorp.com

What is the significance of the property hosting a carbonate replacement deposit, and how does it compare to other CRDs outside of North America?

Deposits like Mag Silver’s Cinco de Mayo project, Ivanhoe Electric’s Tintic project and South 32’s Hermosa project’s

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

“

Our drilling efforts are already showing promising results. We've intersected polymetallic mineralization that includes silver, zinc, lead, copper and sometimes even gold. — Rodway

Taylor deposit are significant examples of carbonate replacement type deposits, all of which are fed by a porphyry intrusion. When massive sulfide containing zinc, lead, silver and acid-rich brine comes in contact with a calcium-rich rock, it leads to a neutralization reaction causing the rock to be replaced with highgrade metal. In our case, we are dealing with a CRD that's been fed by a porphyry intrusion, with the unique aspect of having limestone or calcium-rich units adjacent to the heat source. These deposits can vary in size, ranging from 10 million tonnes to even larger ones like South 32’s Hermosa mining project located in Arizona. The intrusion-related nature of these deposits presents opportunities for large tonnages of lead, zinc, silver, molybdenum and copper in different regions. What’s interesting about this project is that we are in a unique situation in the Atlin area since it has never been explored before. We've already made several discoveries through drilling, and I believe there's potential for more since these deposits are known to be district-scale in size. It's not unusual to find multiple CRDs within a 200 kilometre distance, as seen in north-central Mexico and the southern US. We are essentially pioneers in this unexplored

THE MINING ISSUE

and underexplored region, having successfully consolidated over 1,100 square kilometres of contiguous land. Give us more detail about the polymetallic mineralization you've intersected. How successful have you been in proving the extent of the mineralization with each drill hole?

Our drilling efforts are already showing promising results. We've intersected poly-metallic mineralization that includes silver, zinc, lead, copper and sometimes even gold. Based on our previous drilling, we have every reason to be excited. Silver, zinc, lead and copper — it's all there in abundance. In some cases, we've even seen over 1,000 grams per tonne of silver in drill core, which is fantastic. A lot of the original work was completed by just a couple of people, including myself, prospecting the area. When you find something at surface that’s substantial and runs high-grade zinc-leadsilver-copper, that’s a discovery. To prove it further, you need to delineate in the subsurface and prove that it has extent. When you’re exploring a brand new area, you need to get as much information as you can with each work program. We have been very successful: most of our drill holes have hit CRD mineralization. This year the goal is to follow up on the mineralized carbonate rock units to see if we can trace these mantos or chimneys back to the source. We’ve outlined over 250 related zinc, lead and silver mineral occurrences within that 6 by 1.8 kilometre area. This is when we knew that there was a lot of juice in the system. Recent drill results indicate impressive zones of massive sulfide carbonate replacement mineralization. Could you shed some light on Core’s exploration plans for further delineating and expanding these mineralized footprints?

This year, we began by targeting what we could see at surface and lining up with the limestone and marble beds. We made a discovery at surface on what’s known

as the Pete’s area, and we’ve confirmed that it’s larger at depth. We are trying to drill in areas that are semi-far apart in order to demonstrate scale. Next year, we’ll do some more infill drilling to further delineate these mantos and chimneys. It's also important to note the accessibility of the project. We’re able to stay in a nearby hotel while we’re drilling and the project is very close to Atlin Lake, which is essentially a free highway to transport goods all year round. To find something at surface that is this

accessible in this day and age is very uncommon. If we are able to put a dollar sign behind some pounds in the ground, it’s going to be a lot cheaper to access it versus other projects in BC where you’d need to build a 100 kilometre–plus road. Let’s finish up by talking about what drives you as the CEO of a junior resource company.

For me, there are two things that drive my passion in this industry. Firstly, the excitement of the public markets and how they respond to our discoveries.

Seeing our valuation increase and knowing that shareholders believe in our cause motivates me immensely. Secondly, being on-site during drilling and witnessing the first extraction of massive sulfide metal is an indescribable feeling. Seeing the drill spinning and pulling out visible metal, especially in this high-grade, low-tonnage scenario, is truly spectacular. It's a unique experience that not many people get to encounter, and it's what gets me out of bed in the morning and fuels my enthusiasm for what we do.

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

About the Author

Angela Harmantas is a senior financial journalist with Proactive. She has 10 years’ experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from Emily Jarvie began her career as a political journalistBrazil, in Australia. AfterSouth she relocated to to Canada, worked as a multiple countries, including Canada, the US, Australia, Ghana and Africa. Prior joining she Proactive, psychedelics journalist, reporting on business, legal and scientific developments before joining Proactive in 2022. she worked in investor relations and led the foreign direct investment program in Canada for the Swedish Emily has worked as a reporter in Australia, Europe and Canada. government. Angela currently resides in Toronto.

Asante Gold Company leadership looking forward to gold production ramping up to over 500,000 ounces By Sean Mason

sante Gold’s (CSE:ASE) long-time shareholders have seen stock price appreciation most investors can only dream of — nearly 1,700% in a little more than two years. The mid-tier gold miner owns two mines in Ghana that have planned to produce about 350,000 ounces of gold annually. It has resources in excess of 5 million ounces and nearly 3 million ounces of gold in the reserve category, not to mention an extensive land package with significant exploration potential. Ghana is the seventh-largest gold producer globally and has the biggest gold endowment in West Africa, with more than 130 million ounces of reserves. Asante Gold Chief Executive Officer Dave Anthony is an experienced mining executive, having formerly served as Chief Operating Officer of African Barrick Gold and, most recently, Chief Operating Officer of Cardinal Resources, which was acquired for more than $500 million. Anthony met with Canadian Securities Exchange Magazine in July to discuss the company’s plans for continuing to increase shareholder value and why he believes in the long-term future of the gold market. Asante has enjoyed a lot of success in the past two years and your investors have done extremely well. How do you plan to continue enhancing shareholder value going forward?

In March 2021, our share price was about $0.08. By late April of this year, Asante stock was trading over $2.00 and we’re currently sitting at about $1.50, so that’s significant share price appreciation in a little over two years. I first went to Ghana to take a look at the Bibiani project on July 9, 2021, so it’s been about two years

THE MINING ISSUE

Dave Anthony

Chief Executive Officer

Company

Asante Gold

CSE Symbol ASE

Listing date May 28, 2015

Website

asantegold.com

COMPANY INTERVIEW

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

since we acquired Bibiani, put together a refurbishment plan, brought the mine into production and in the past year delivered about 110,000 ounces while ramping up production. Along the way, we acquired the Chirano project, which is immediately to the south. Going forward, we plan to increase shareholder value through capital investments that we expect will allow our company to reach a production level of 550,000 ounces of gold per year, which will be achieved through improved costs, improved recovery, expansion of mining activities and so forth. At Bibiani, as we move deeper into the ore body, we need a sulfide treatment plant, and that is about 30% complete but we do need capital to get it finished. Our company also needs to be able to extract some of the “sweeter” ore to the south, and that requires the relocation plan to be executed, which requires more capital. With Chirano, Asante Gold is working toward getting recovery up to 92%, while achieving throughput of up to 4

THE MINING ISSUE

million tonnes a year. And, late next year we'll be going underground at Bibiani and increasing gold production and grade. So, there are several relatively minor capital improvements to get to the point where from 2025 forward, Asante Gold will see a significant increase in its yearly cash flow. On June 1, your company announced the Chirano business improvement plan to boost production and reduce costs in the coming year. Tell us more.

At this time, it’s all about the business plan and some required capital improvements. We haven’t been able to issue debt and get our balance sheet in order, but once the company completes the previously mentioned initiatives and makes those improvements then Asante Gold should become consistently profitable. How do you plan to finance the activities you’ve mapped out for us?

We do have several initiatives in place that we expect will come to fruition in

the near term, which I cannot disclose at this time. Our company has great assets in Bibiani and Chirano, and due to the land position we control and how prospective it is, we expect exploration results much like what is being found on the Carlin Trend in Nevada. That said, we need to make improvements to boost the amount of gold ounces produced as well as drive costs down. What are your thoughts on the gold market in general and its outlook?

If you look at how gold has trended over the last 30 years, you'll find that the US$2,000 mark is not an aberration, and the outlook for gold into the mid $2,000 per ounce range is probably defendable. So, if you are the type of person who believes gold will slide back toward $1,500 to $1,600 per ounce, then you probably shouldn’t be invested in gold and gold stocks in the first place. We believe gold provides longterm preservation of wealth, and when Asante Gold begins producing at all-in-sustaining costs of around

COMPANY INTERVIEW

“

45% of the company is owned by Ghanaian individuals and Ghanaian institutions, so Asante Gold has a strong ESG (environmental, social and governance) profile. — Anthony

US$1,100 to $1,200 per ounce, we’ll have great margins, especially for a company mining more than half a million ounces of gold per year. What other developments do shareholders have to look forward to during the next 12 months?

Putting the company’s balance sheet in order and fully executing our business plan, which should boost cash flow. Asante Gold has a significant competitive position in West Africa. We operate the company from Ghana, not from an office on Bay Street in Toronto, and I personally spend more than half my time in Ghana. Is there anything else that you want the financial community to know about your company?

Asante Gold is a company of technically driven operators that are focused on producing gold. As well, 45% of the company is owned by Ghanaian individuals and Ghanaian institutions, so Asante Gold has a strong ESG (environmental, social and governance) profile. I believe it’s an innovative model for mining going forward and for our stakeholders who have, and will, benefit from our activities.

About the Author

Sean Mason has been covering North American equity markets for more than 20 years, including for publications such as Investors Digest of Canada. He is a graduate of the University of Toronto and has successfully completed the Canadian Securities Course.

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

COMPANY INTERVIEW

Headwater Gold Disciplined strategy positions young gold exploration company to make progress in any market By Peter Murray

ometimes you have a discussion with an executive and think, “Everyone needs to hear this — it’s the voice of experience with a roadmap for success.” That’s the feeling one gets speaking with Caleb Stroup. As President and Chief Executive Officer of Headwater Gold (CSE:HWG), Stroup and his team have patiently put together a portfolio of projects that all meet very specific parameters, the idea being to minimize risk while maximizing not only potential upside but the number of chances to realize that upside. It’s only one approach to succeeding in the junior exploration industry, but certainly a sound one. Stroup spoke with Canadian Securities Exchange Magazine in early August about the process of constructing Headwater’s portfolio, how the company allocates resources among the portfolio’s components and the outlook for the company and the mining industry as a whole.

Headwater Gold has a total of 11 projects in Nevada, Idaho and Oregon. Talk to us about how a small company goes about putting together a property portfolio of this size.

The portfolio approach has always been a fundamental component of our business model: exploring relatively early stage projects and looking to make new, high-impact discoveries in the western United States. We recognized from the beginning that to have a reasonable probability of success, you need a portfolio of projects and a lot of shots on goal. So, that was a focus early on for us, building that portfolio. We spent about two and a half years as a bootstrapped private company putting these projects together, following one very specific targeting criteria: looking for high-grade, epithermal veins. We chose one deposit type, of which there are many world-class examples in this jurisdiction. And

Caleb Stroup

President and Chief Executive Officer

Company

Headwater Gold

CSE Symbol HWG

Listing date June 8, 2021

Website

headwatergold.com

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

we set out to find opportunities that either had not been tested at all with drilling or had not been drilled to the appropriate depth. These were very conscious decisions, and the strategy has worked out quite well for us. We were able to put together a portfolio of good properties, and now we have the ability to explore multiple projects at any given time, like we are doing right now with four drilling programs going on this year. How do you stay on top of it all to make sure that the right project is getting moved forward at the right time?

That’s another special thing about our group. We’re a very technical team from top to bottom, from the board of directors to our great technical team on the ground here in the US. We constantly go through an exercise in real time of prioritizing projects and targets and doing our best to allocate all of our resources — time, money and everything else — toward the ones that have the best chance of meaningful success. It's a difficult answer to give in a concise way, but it’s just an ongoing effort to scrutinize every decision, first from a technical point of view, and then from a big swing homerun point of view to give

our shareholders the best chance of success. Which of the projects would you rate as your favourites, and why are they high on your list?

That’s always kind of hard. It’s kind of like choosing which of your children is your favourite. Right now, the four projects we are drilling are at the top of the list. At least in order of exploration maturity and targeting, they are at a point where we feel confident in the targeting work to allocate dollars toward drilling. At the moment, that kind of biases my decisions on my favourite. Spring Peak certainly is one where we’ve had good success and de-risked it a lot. We are drilling out there with three rigs right now. This is a project where we have already shown that we can target and find high grades. We have discovered multiple new highgrade veins at this project, and we are now going through the exercise of drilling off these discoveries and trying to build some scale. So, this one is very exciting in the short term. Another one, kind of at the opposite end of the spectrum, that we are going to be drilling this year is Midas North. This is immediately north of the famous Midas Mine in Nevada. Same district, same geology, same structure,

but it has never been drilled. It is a different stage of opportunity relative to Spring Peak but one where nobody has ever drilled any holes into it, and we think we have some really compelling targets. These are the opportunities you really look for as an explorationist — to be the first people to drill great targets in a world- class jurisdiction. Much earlier stage, but tremendous upside. What is your feeling of the environment right now? It is a challenging market, so how do you best operate in these conditions, and how do challenging times influence strategy?

From the beginning, we have focused on what we call a hybrid approach, where we are not conducting all of this drilling self-funded out of money we have raised in the market. We have done a number of deals to help fund exploration, most notably partnering with Newcrest Mining, which has earnin agreements on four of our projects, three of which we will be drilling this year. So, a lot of the drilling will be funded externally without any dilution at the corporate level. That has shown itself to be a really smart model, especially in a market like this where valuations are low across the board and financings are difficult to get across

“

We’re a very technical team from top to bottom, from the board of directors to our great technical team on the ground here in the US. — Stroup

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the line. We can really be selective as to when and at what price we raise money but still keep a pace of activity that surpasses most, if not all, of our Nevada peers. What do you see for the company as you consider the balance of 2023 and the early part of 2024?

We are in a results-driven business on the exploration side and will have four active drill programs this fall that will result in a lot of short-term catalysts. Our decision-making into 2024 will largely be driven by successes on these projects, but we expect to continue to do what we do best: running active drilling and exploration programs. In the short term, we have multiple drill programs that are funded and underway. There will be a lot of news flow in the next six to nine months, and we will very likely see continued announcements of future programs based on those results. I think that

puts us in a great position relative to our peers, and with this hybrid model, we have been able to keep the share count low and optionality high, all while delivering short-term value for our shareholders. Can you tell us about your background? You are a leader of the NewQuest Capital group as well and clearly have a lot of experience in management roles.

I’m a geologist. I have spent about 50% of my career with the majors and 50% in the junior world. I really enjoyed my time working with majors, especially seeing how decision-making takes place at that level. But my heart was always really in the junior mining and capital markets side. This is where I landed, with Headwater Gold being my primary day job — it is 95% of my focus. But we also have early stage incubating things happening under the NewQuest Capital umbrella.

Last question and it’s an open one — your concluding thoughts.

We touched on the difficulty in the markets right now. I think a lot of the investment community is very cautious, and for good reason. But the way we have structured things, we have the ability to ride out a long period of downturn. The majors are still hungry for assets — gold is strong and has been between US$1,800 and $2,000 for a long time now — and the demand for more advanced projects has increased, especially in stable jurisdictions such as the western US. And that has always been our primary value proposition. That if we can make these discoveries in the western US, there will be a market for it, and I think we are still seeing that, and the fundamentals are sound. So, if you take a slightly longer view, things actually look pretty good.

About the Author

Peter Murray oversees a national editorial and broadcasting team as President of Proactive Canada. He spent several years managing the English news desk at Nikkei’s head office in Tokyo and has worked with research teams at Asian and European investment banks. Peter is based in Vancouver.

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

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COMPANY PROFILE

ACME Lithium Multiple projects in top jurisdictions position ACME to make most of long-term lithium boom By Emily Jarvie

s the United States and Canadian governments invest tens of billions of dollars in creating a North American supply chain for lithium, ACME Lithium (CSE:ACME) is one option for investors seeking exposure to this generational opportunity. Backed by top lithium investors such as Lithium Royalty Corp. and Waratah Capital Advisors, ACME Lithium is well positioned to take advantage of the increasing demand for this critical mineral. It has a diverse portfolio of properties in areas known for lithium development, including in the epicentre for lithium production in the United States, Esmeralda County in Nevada. It also has projects in Manitoba and Saskatchewan. “I believe we’ve got one of the best portfolios of exploration projects for lithium in North America,” President and Chief Executive Officer Stephen Hanson tells Canadian Securities Exchange Magazine. “Having multiple projects gives investors more than one opportunity and it diversifies the exploration risk.” Significantly, the company’s Clayton Valley lithium brine project is in the midst of a Phase 2 drill program and neighbours one of the largest global producers of lithium, Albemarle Corporation. Albemarle’s Silver Peak Mine is one of the only lithium mines currently in production in the United States.

Nevada’s Silver Peak region was also the site of the first large-scale extraction of lithium brine, which took place starting in 1966. ACME believes its Clayton Valley project has the potential to host lithium brines similar to those at Silver Peak. Additionally, located about 25 kilometres to the west of Clayton Valley is ACME’s 4,139 acre Fish Lake Valley project, a sedimentary claystone site that the company says is ready to drill after having completed a multi-stage exploration program. A Phase 2 geological field review and sampling program at the project returned lithium values exceeding 1,200 ppm, with the highest surface value to date coming in at 1,418 ppm. Boron anomalies up to 1,964 ppm occurred with and adjacent to the surface lithium anomalies. Notably, the Fish Lake Valley project is located near Ioneer’s world-class Rhyolite Ridge lithium-boron project, which is in late-stage permitting and expected to go into construction in the first quarter of 2024. Australia-based Ioneer recently signed offtake agreements with Ford, Toyota, Panasonic and EcoPro Innovation out of South Korea to supply lithium for the production of electric vehicles. Across the border to the north, ACME holds a 100% interest in 37 claims totalling 17,000 acres in the Bird River Greenstone Belt in Manitoba.

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

ACME’s three projects in this area, Cat-Euclid Lake, Shatford Lake and Birse Lake, neighbour Sinomine Corporation’s Tanco Mine, where commercial production from LCT pegmatites (Lithium, Cesium, Tantalum) has taken place off and on for more than 50 years. ACME continues to evaluate the project for future work after completing the 2023 winter drill program at Shatford Lake. Rounding out ACME Lithium’s portfolio is the 41,694 hectare Bailey Lake pegmatite discovery area, which contains indications of spodumene-bearing pegmatites with potentially economic grade lithium based on historic sampling. ACME Lithium’s focus is on creating a North American supply chain for lithium, which Hanson believes has presented a generational opportunity for investors given the projected growth in the lithium-ion battery market. The global lithium-ion battery market exceeded US$52.5 billion in 2022 and is expected to expand at a 16.5% compound annual rate from 2023 to 2032 spurred by momentum in the electric vehicle sector. “The need to have a domestic supply of lithium has reached a level that we’ve

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never seen before as demand continues to skyrocket for battery metals driven by hybrid and electric vehicle demand as well as grid storage and use in our daily lives,” Hanson says. The CEO highlighted that one component helping to propel the lithium sector is the backing of the United States and Canadian governments, which are both supporting its development through policies and investment. He noted the Biden administration’s critical minerals strategy of October 2022 and the Inflation Reduction Act as significant moves in the United States, while the Canadian government unveiled its own critical minerals strategy in December 2022. Importantly for ACME Lithium with its Bailey Lake project, the provincial government in Saskatchewan in late 2022 announced that it is expanding its investment and innovation incentive programs to include eligible lithium projects. The move is expected to accelerate the development of Saskatchewan’s lithium sector. “We’ve seen now backing by the governments with not just changes in policy but also tens of billions of

“

The need to have a domestic supply of lithium has reached a level that we’ve never seen before as demand continues to skyrocket for battery metals driven by hybrid and electric vehicle demand as well as grid storage and use in our daily lives. — Hanson

Stephen Hanson

President and Chief Executive Officer

Company

ACME Lithium

CSE Symbol ACME

Listing date April 28, 2021

Website

acmelithium.com

dollars invested in the supply chain for this critical mineral called lithium,” Hanson explains. He also points out the need for investments in human capital to ensure lithium producers are supported in meeting the surge in demand and to make the most of this opportunity. He notes that while historically there have been bottlenecks from a permitting standpoint, the permitting process should not be shortchanged. “We need governments to invest in permitting offices and into the processes that allow for these projects to be given the green light, but the good news is we are seeing movement in that area,” Hanson says. “In Manitoba, for example, it was announced this past fall that the per-

mitting office is hiring 19 new people to assist with the red tape and to make sure things move along in an orderly fashion.” In tandem with these investments in the broader lithium sector, ACME Lithium is set for an exciting few months ahead on the exploration front. At its Clayton Valley project, the company is currently conducting a pump test to assess the hydraulic properties and brine chemistry of the lower gravel unit (LGU) as part of its Phase 2 expanded drill program at the property. The LGU is an aquifer which returned lithium samples up to 130 milligrams per litre during the company’s Phase 1 exploration program. The pump test is significant, as the results will be used as data for a future

potential lithium resource at Clayton Valley, with Hanson noting it could be one of the company’s biggest milestones to date. “We have commenced a lithium brine pump test at our TW-1 well and will have results coming out soon and look forward to providing that information to our investors over the next few months,” Hanson says. ACME Lithium also continues to carry out exploration and development work across the rest of its portfolio, including exploration at its Saskatchewan project over the summer and into the fall. “It’s a huge generational opportunity we’re seeing here for lithium,” concludes Hanson, “and ACME Lithium certainly hopes to be part of that.”

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

About the Author

Emily EmilyJarvie Jarviebegan beganher hercareer careeras asaapolitical politicaljournalist journalistininAustralia. Australia. After After she she relocated relocated to Canada, she worked as a aspsychedelics a psychedelics journalist, reporting on business, scientific developments before joining Proactive journalist, reporting on business, legallegal and and scientific developments before joining Proactive in 2022. inEmily 2022.has Emily has worked as a reporter in Australia, and Canada. worked as a reporter in Australia, Europe Europe and Canada.

COMPANY PROFILE

Exploits Discovery Aiming to become the next big name in Newfoundland’s gold rush By Stephen Gunnion

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n late 2022, Exploits Discovery (CSE:NFLD) added to its already strong land position around central Newfoundland’s Appleton Fault, a zone that is fundamental to the gold rush currently underway in the province, and where New Found Gold staked its fortunes to become a $1.2 billion gold miner. Gander, Newfoundland–based Exploits aims to be next. After acquiring a sizable land package in 2021, the explorer staked new claims — including its Bullseye gold property — in an enviable position between some of New Found Gold and Labrador Gold’s recent discoveries. “That's why we call it Bullseye, because it's right where you want to be,” Exploits President and Chief Executive Officer Jeff Swinoga tells Canadian Securities Exchange Magazine. “It's 1.2 kilometres long along the Appleton Fault. We also have claims near Keats West, which is having some great success with New Found Gold, and we picked up a claim to the north along the Appleton, which is 10-plus kilometres of benefit for us.

“We're really blessed with having these new great claims along with our existing claims. We have one of the biggest land packages around New Found Gold, around multiple fault lines: the Appleton-Dog Bay line, etc. The key is having a good property and a great team, and that’s what we have.” Following a drill program that commenced in February, the company knows that it has already struck gold. Assays from eight of the holes at Bullseye revealed visible grains of gold, which the company believes demonstrates that the property has the potential to replicate or extend the high-grade gold mineralization observed by the neighbours within 250 metres of its claim boundaries. Exploits has called its first gold discovery “Horseshoe,” and it lines up right where the company believed it would find gold. “It’s really high-grade orogenic gold, near surface, similar geology to what New Found Gold is finding to the south,” Swinoga explains. “If you look at New Found

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

Jeff Swinoga

President and Chief Executive Officer

Company

Exploits Discovery

CSE Symbol NFLD

Listing date May 30, 2019

Website

exploitsdiscovery.com

THE MINING ISSUE

Gold, on just over a 5 kilometre stretch on the Appleton Fault they have created a $1.2 billion exploration company with multiple gold zones like Keats, Iceberg, K2, Lotto and Keats West. They just keep finding gold along the Appleton. And that’s really 200 metres, 300 metres south of where we are.” “Bullseye is the next one up. And if you go further up to the new claims, we have another 10 kilometres–plus along the Appleton. So, I think we have all the key ingredients to become either the next New Found Gold or a billion-dollar exploration company in our own right. We are very lucky.” Location aside, chief among those key ingredients are strategic shareholders, a strong team on the ground and $8 million in the bank as of April 30, 2023. Perhaps as a sign of confidence in Exploits, New Found Gold has taken a 10% stake in its neighbour, while renowned Canadian investor Eric Sprott holds 19%. While the company is employing the latest exploration technology as it scours its property for gold, including machine learning, artificial intelligence and data analytics, Swinoga stresses the importance of local, on-the-ground knowledge. “All of our team is from either Gander or St. John's or surrounding areas,” he

says. “They live and breathe the area. They know the area; it's in their backyard. And so, they care. They're passionate, they're talented, they're experienced.” On the company’s advisory committee is Dr. David Groves, a world-class geologist and international expert in orogenic gold deposits who Swinoga calls “the father of orogenic gold” after he coined the term back in the early 1990s. “We’re using tried-and-true methodology,” Swinoga explains. “It’s all based upon techniques and observations in Australia, where Fosterville had this super high grade and became one of the most profitable mines in the world.” Groves’s expertise, the consultants’ AI technology and data analytics, and the team on the ground in Newfoundland form part of the systematic approach Exploits has taken to exploring the Appleton Fault. “The work is getting done and lots of techniques are being used,” says Swinoga. New Found Gold’s support goes beyond its investment as a shareholder, with Swinoga describing the company as a “big brother.” Following its successes over the past few years, he says the company has created a blueprint that Exploits can use for guidance on how and where to drill, raising its own chances of success due to the geology they share.

“

The key is having a good property and a great team, and that’s what we have. — Swinoga

New Found Gold is also currently conducting an extensive seismic survey over the Appleton Fault zone, including Exploits’ Bullseye property. A similar survey in Australia found “fingers of God” orogenic flows carrying gold from deep in the earth’s crust, pointing to the source. “We’re going to get that data, and hopefully it’s going to come out in the next couple of months,” he says. “I've got some high hopes for this seismic survey because if it proves the same as we saw in Australia, it's going to show that maybe not only the Appleton Fault is very highly prospective with the source of gold coming up like these ‘fingers of God,’ but it could reveal other faults that show promise and could really open up the whole region. A lot of people say this is the early days of the Abitibi.” In the meantime, following the first phase of drilling at Bullseye, Exploits is waiting for the assays for the remaining drill holes to be announced, which will help determine where to start the second phase of drilling. “The southern part of Bullseye looks super attractive because of a recent discovery called Jackpot in K2, from New Found Gold, which is, again, literally 100 or 200 metres away from our property. So, it looks very prospective,” says Swinoga. It is also exploring a new area, Gazeebow, with LiDAR, magnetic geophysical (MAG) surveys, prospecting and grab sampling currently underway. “The goal there is to identify new drill targets along the greater stretch of the Appleton zone,” Swinoga says. “We like what we see; there’s a lot of great quartz running through the properties.” By year-end, Exploits expects to have identified multiple drilling opportunities along the Appleton

Fault, moving it forward in its goal to emulate the success that New Found Gold has enjoyed. Swinoga says Exploits’ early mover advantage in the area has given it the opportunity to become the next big explorer in Newfoundland. “In the early days, when the staking rush happened three or four years ago, and everyone wanted the great properties, we were able to pick up all this great land, mostly on the tips of where New Found Gold was. We have been able to build on our early success and keep it going,” says Swinoga. “Being on the cusp of making history for a huge mining district is just incredible.”

CANADIAN SECURITIES EXCHANGE MAGAZINE SEPTEMBER 2023

About the Author

Stephen Gunnion is a financial journalist and news anchor, with more than 25 years' experience in television, Emily Jarvie began herHe career as a political journalist Australia. After she relocated to Canada, she worked as a radio and print media. has anchored on a number of in television channels, including South Africa's Business psychedelics onAfrican business, legal and Corporation, scientific developments before joining Proactive Day TV, CNBCjournalist, Africa andreporting the South Broadcasting where he was the economics editor.in 2022. Emily has worked a reporter in Australia, Europe andDay Canada. He has worked foras Daily Maverick, Bloomberg, Business newspaper and Investors' Chronicle.

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SPOTLIGHT ON

Rob Cook Dive into insights and trends in mining and the capital markets with Rob Cook, the CSE’s Senior Vice President of Market Development By Libby Shabada

As one of the longest-standing team members at the CSE, how are you seeing the capital markets shift in Canada?

There has been a long-term trend of increasing risk aversion in personal, or retail, investing in the equity markets. During my career, I have seen the rise of mutual funds that promised diversification, but high expenses and the proliferation of ETFs have displaced many corporate securities. Coupled with an increasingly conservative regulatory approach to equity securities, the equity markets have lost a significant portion of investors’ risk capital. You’ve had a number of recent experiences abroad. What are some global opportunities for the CSE?

The global opportunities for the CSE exist where Canadian issuers are making inroads and/or where foreign entrepreneurs and investors have an appetite for risk. The constraints are ever present and caused by jurisdictional silos and the lack of mobility of capital at an individual investor level, so there isn’t really any low-hanging fruit. The CSE has already explored a few niches and has chosen to focus on some, like Israel, where there are entrepreneurs who can benefit from the type of market that the CSE operates. Let’s talk about the mining space. In what ways are the mining companies coming to the CSE evolving?

The CSE is seeing an increased flow of IPOs in the early stage mineral exploration sector and has been leading in this area for the past few years. There

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are signs that more of these are maturing into development situations, though market conditions are cyclical and somewhat fickle, so many deserving gold explorers, for example, are currently underfunded, while investors sit on the sidelines waiting for interest rates to fall. What’s your perspective on the global mining industry, and how can Canadian companies position themselves?

Canadian mining companies could benefit from positioning mining as the backbone of the burgeoning EV industry. EVs are a tertiary market while mining is a primary industry, and there is a lack of awareness at the consumer level of the benefits they derive from the latter. There needs to be more funding at an industry association level to carry the cost of such an ambitious education effort. Lastly, you enjoy spending time on the water. Any places you recommend venturing out to?

Any place you can. Getting out on the water is as therapeutic as getting out into nature anywhere on land. I also recommend that people try stand up paddle (SUP) boarding. It’s relatively inexpensive and easy for beginners who don’t expect to master it on the first try. I paddle on Lake Ontario in Toronto regularly, and it’s never crowded or dangerous, and I’ve also paddled in many places in Canada, Europe, Israel, the Caribbean and Hawaii. It’s always a nice change from the regular tourist walking or bus tours.