Company Interviews Crux Investor

Interview with Dan Noone, CEO fo G2 Goldfields Inc.
Our previous interview: https://www.cruxinvestor.com/posts/g2-goldfields-tsxvgtwo-advancing-a-new-high-grade-gold-district-in-guyana-5065
Recording date: 18th April 2024
G2 Goldfields (TSXV:GTWO) presents a compelling opportunity for investors looking for exposure to a high-grade gold story in a mining-friendly jurisdiction. The company's flagship project in Guyana boasts a recently updated resource of over 2 million ounces of gold, including an impressive high-grade component.
In an interview with CEO Dan Noone, he highlighted G2's focus on expanding the resource through aggressive exploration drilling. The company plans to drill 75,000 meters this year with five rigs to grow the resource along the mineralized trend extending from the main OKO Main and Ghanie zones.
Noone sees strong potential to define significant near-surface ounces in the OKO Northwest, Tracy, and Aremu areas, which could enhance the project's economics and appeal to a potential acquirer. G2 Goldfields is also taking proactive steps to streamline the timeline to production and maximize the project's value for an eventual takeover. Initiatives include launching a two-year environmental baseline study, conducting metallurgical testing, and storing drill core on site.
Noone believes consolidation of the district is likely, with G2's southern neighbor Reunion Gold a potential acquisition target by a major in the near-term. The interview also touched on the state of the broader gold market, with Noone noting increasing interest from retail and generalist investors, particularly in Europe and Asia. While North American investors have been slower to embrace the gold story, G2 Goldfields sees the makings of a genuine bull market.
As sentiment toward gold continues to improve, G2 Goldfields appears well-positioned to benefit. With a large, high-grade resource base in a sought-after jurisdiction, a strong exploration pipeline, and strategic initiatives to drive value, the company offers investors a timely opportunity to gain leveraged exposure to a rising gold price.
The investment case for G2 Goldfields is further bolstered by the company's attractive valuation relative to peers and the potential for a near-term catalyst in the form of a district consolidation. With several majors already invested in Guyana, G2 could emerge as a prime takeover target as it continues to grow its resource and advance the project.
In summary, G2 Goldfields represents a highly prospective gold exploration and development story in a favorable jurisdiction. As the company expands its high-grade resource and works to maximize the project's value, shareholders stand to benefit from a re-rating in the market and the potential for a lucrative takeout. G2 Goldfields warrants a closer look from investors seeking exposure to an under-the-radar gold opportunity with significant upside potential.
View G2 Goldfields' company profile: https://www.cruxinvestor.com/companies/g2-goldfields
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Jeff Quartermaine, Chairman & CEO of Perseus Mining Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/perseus-mining-pru-burgeoning-production-growth-targets-in-focus-600
Recording date: 12th April 2024
Perseus Mining (ASX/TSX:PRU) is hitting its stride as a rising mid-tier gold producer, with a clear strategy to grow production and mine life at its West African operations while expanding into new frontiers through the Nyanzaga acquisition in Tanzania and a strategic alliance in the Arabian-Nubian Shield.
In a recent interview, Chairman and CEO Jeff Quartermaine outlined Perseus' multipronged approach to create value in a rising gold price environment. While optimizing its existing Ghana and Côte d'Ivoire mines remains the core focus, Perseus is pursuing an ambitious growth agenda to boost its scale and longevity.
The centerpiece is the Nyanzaga project in Tanzania, acquired from OreCorp. Quartermaine sees potential to significantly expand the mine's throughput and life compared to OreCorp's plans, targeting first production in 2025. With $450-500 million in development capex funded from its balance sheet, Nanzaga offers a clear path to growth at attractive economics.
Investors will be eyeing upcoming catalysts including infill drilling to expand resources, completion of engineering and design work, and resettlement milestones. "Nyanzaga could be a lot better than people expected, just like Yaouré which also had its naysayers," Quartermaine remarked, referencing Perseus' Ivorian mine which has exceeded expectations.
Equally exciting is Perseus' new frontier in the Arabian-Nubian Shield through a strategic alliance with Saudi conglomerate Ajlan Brothers. Quartermaine believes the partnership's combination of Perseus' technical expertise and Ajlan's regional clout and funding heft is a "potential game-changer" in this prospective but underexplored region.
One early initiative could see the partners join forces to develop Perseus' Meyas Sand gold project in Sudan, reducing Perseus' solo risk. More broadly, Quartermaine hinted at a rich deal pipeline that could meaningfully move the needle for Perseus. "This could be a case of 2 and 2 equals 6 rather than 4 or 5."
Of course, delivering from Perseus' existing mines remains the top priority. Quartermaine highlighted efforts to extend mine lives at the Edikan and Sissingué operations through near-mine exploration, cost optimization to process lower-grade ore, and expanding pits using higher gold price assumptions.
With Perseus' strong track record of reserve replacement and a motivated workforce aligned to keep mines running longer, investors can have confidence in the company's base case.
The pieces are falling into place for Perseus to potentially re-rate and narrow its valuation discount to peers. Quartermaine attributed the gap to outdated perceptions around its African operating base and history of short mine lives - factors the company has addressed head-on with its recent growth initiatives.
As Nyanzaga advances towards production and the Ajlan partnership bears fruit, Perseus' growth potential should become more apparent. With leverage to a rising gold price and a proven team at the helm, Perseus offers a compelling risk-reward proposition for investors seeking a disciplined growth story in the gold sector.
—
View Perseus Mining's company profile: https://www.cruxinvestor.com/companies/perseus-mining
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Jordan Trimble, President, CEO & Director of Skyharbour Resources.
Recording date: 17th April 2024
Skyharbour Resources is a high-grade uranium explorer and prospect generator with 29 projects in the Athabasca Basin in Northern Saskatchewan. They have built one of the largest project portfolios in the region and have seven partner companies advancing other projects. 
The CEO, Jordan Trimble, has been working in the mining industry for 14 years and has a background in finance and entrepreneurship. The company follows a prospect generator model, where they acquire and incubate uranium projects and bring in partner companies to fund exploration and advance the projects. They have structured earning option agreements with their partners, where the partners have to spend a certain amount on exploration and make cash and share payments to earn a stake in the projects. 
Skyharbour benefits by owning equity in the partner companies and retaining a minority interest and potentially an NSR royalty on the projects. They have already completed three out of seven earnings with their partner companies, potentially bringing in $80 million in combined project consideration. The company has also focused on their two co-flagship projects, Russell and Moore, which are located near the MacArthur River Mine and the Key Lake Mill. They recently raised $6.3 million in flow-through financing to fund their drilling programs at these projects. 
Skyharbour Resources is focused on uranium exploration in the Athabasca Basin in Canada. They have two main projects: the Moore Lake project and the Preston project. The company follows a hybrid model, combining self-funded exploration with strategic partnerships and joint ventures. They have a strong treasury and receive cash and stock payments from their partner companies. 
Skyharbour is currently conducting a winter drill program at the Russell project, with the goal of making a new high-grade discovery. They are also planning to drill at the Moore Lake project to expand and infill the high-grade zones. The company believes that the current uranium market conditions are favorable for exploration and expects to see a higher valuation and lower cost of capital if they are successful in their drilling programs.
—
Learn more: https://cruxinvestor.com/companies/skyharbour-resources
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Max Porterfield, President & CEO of Callinex Mines Inc.
Our previous interview: https://www.cruxinvestor.com/posts/callinex-mines-tsxvcnx-unlocking-high-grade-copper-potential-with-innovative-exploration-approach-5040
Recording date: 17th April 2024
Callinex Mines (TSX-V:CNX) is a mineral exploration company focused on advancing its portfolio of high-grade copper-gold-rich volcanogenic massive sulfide (VMS) discoveries in the Flin Flon Greenstone Belt of Manitoba, Canada. With a century of production history and well-established mining infrastructure, the Flin Flon district presents a compelling opportunity for new discoveries, and Callinex is well-positioned to capitalize on this potential.
The company's flagship Pine Bay project has been the focus of innovative exploration techniques, particularly the use of magnetotellurics (MT) surveys, which have proven crucial in identifying hidden alteration systems associated with VMS deposits. Recent MT survey results have revealed a significant new resistivity low anomaly spanning 700 by 1,100 meters between the interpreted Pine Bay and Rainbow horizons, presenting a compelling untested exploration target.
Callinex's near-term plans include expansion drilling at the high-grade Flin Flon discovery, targeting higher grades at depth, and drill testing the edges of the new MT anomalies. Positive drill results from these initiatives could significantly expand the size and scale of the known discoveries and potentially lead to new near-surface finds, enhancing the economic potential of the project.
Investors can anticipate a steady stream of news flow in the coming weeks and months as Callinex awaits the results of additional MT survey lines and continues to advance its exploration efforts. The company's strong technical team, led by President & CEO Max Porterfield, has a proven track record of success in the district and is committed to creating value through discovery.
Callinex is well-funded, with approximately six months of working capital available, and is poised to benefit from the rising global demand for copper and gold, driven by the transition to clean energy and electrification. As market sentiment improves and base metal prices continue to rise, the company's high-grade VMS projects could command higher valuations and generate increased investor interest.
Furthermore, as Callinex continues to deliver exploration success and de-risk its projects, the company may attract interest from larger mining companies seeking to secure high-quality copper-gold assets. Strategic partnerships or acquisitions could provide significant value creation opportunities for shareholders.
In conclusion, Callinex Mines represents a compelling investment opportunity in the junior mining sector, with its strategic land position in the prolific Flin Flon mining district, innovative exploration approach, and potential for near-term value creation. As the company continues to unlock the value of its Pine Bay project and advance its other exploration initiatives, investors can anticipate significant upside potential. With a strong technical team, favorable market conditions, and a robust pipeline of high-grade copper-gold targets, Callinex is well-positioned to emerge as a leading explorer in the Flin Flon district and deliver outstanding returns for shareholders.
—
Learn more: https://cruxinvestor.com/companies/callinex-mines
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Eric Zaunscherb, Chairman of Critical Elements Lithium (TSX-V:CRE), Terry Lynch, CEO of Power Nickel (TSX-V:PNPN) and Brendan Yurik, CEO of Electric Royalties (TSX-V:ELEC)
Recording date: 16th April 2024
The battery metals sector is at a critical juncture, with recovering demand and constrained supply fundamentals diverging from depressed equity valuations. This was the key takeaway from a recent roundtable discussion featuring the CEOs of Critical Elements Lithium (CRE.V), Power Nickel (PNPN.V), and Electric Royalties (ELEC.V).
Lithium prices have pulled back significantly from their 2022 highs, but Eric Zaunscherb, CEO of Critical Elements, believes the market is bottoming. "We're already seeing a bottoming of the market in terms of the spot [prices] that everyone follows," he noted, pointing to the wide differential between reported spot prices and recent auction results. He sees structurally higher prices as necessary to incentivize new supply to meet growing EV and energy storage market demand.
Critical Elements is advancing the Rose Lithium-Tantalum Project in Quebec, one of the most advanced large hard rock lithium projects globally. With a 17-year mine life and high-purity spodumene concentrate that could command a premium price, Rose is well-positioned to help fill the lithium supply gap. The company is finalizing project financing and aims to start construction this year.
In the nickel market, Power Nickel CEO Terry Lynch sees a tale of two markets. The high-purity Class 1 nickel used in batteries trades at a premium in Europe and North America compared to the lower-grade material prevalent in the seaborne market. He believes nickel miners in Canada are insulated from price volatility, especially given the strict sourcing requirements for EV tax credits under the US Inflation Reduction Act.
Power Nickel recently announced a potentially game-changing discovery at its NISK nickel-copper-PGM-gold project in Quebec. The Copernick Zone returned high grades over wide widths in initial drilling, and a feasibility study for a stand-alone refinery is also underway. Power Nickel could accelerate development by producing finished nickel and cobalt products.
Electric Royalties offers a compelling option for investors seeking diversified exposure to the battery metals theme. The company has quickly assembled a portfolio of 71 royalties across 9 clean energy metals, with several expected to start generating cash flow in 2024. CEO Brandon Munro believes the company is significantly undervalued, with a market cap of less than C$30 million compared to expected annual royalty payments of C$7 million from just one asset.
While risks remain, including a potential recession or renewed COVID lockdowns, the fundamentals for battery metals are clearly improving. Investors should focus on quality projects in stable jurisdictions with experienced management teams and look for opportunities to gain exposure at attractive valuations. Critical Elements and Power Nickel stand out for their high-grade, scalable projects in Quebec, while Electric Royalties offers diversification across a broad portfolio of advanced-stage royalties.
With the electrification trend accelerating and supply struggling to keep pace, the disconnect between battery metal fundamentals and equity valuations appears unsustainable. As the market rerates, investors positioned in quality names could be rewarded with significant upside. The CEOs at the roundtable were unanimous in their bullish outlook - the question is not if, but when the market will reflect the underlying reality.
—
Learn more: https://cruxinvestor.com/companies/critical-elements-lithium
https://cruxinvestor.com/companies/power-nickel
https://cruxinvestor.com/companies/electric-royalties
Sign up for Crux Investor: https://cruxinvestor.com

Interview with Warwick Smith, Director & CEO of American Pacific Mining Corp.
Recording date: 15th April 2024
American Pacific Mining Corp.  offers investors compelling exposure to high-grade copper and gold assets in mining-friendly U.S. jurisdictions. The company's portfolio is headlined by the Palmer VMS project in Alaska and the Madison skarn-porphyry project in Montana.
At Palmer, American Pacific has attracted a major partner in Japanese smelting company Dowa Metals & Mining. DOWA is aggressively advancing the project, with plans to spend C$17 million (US$12.8 million) on exploration in 2024. The company is targeting the expansion of the existing 14 million tonne high-grade copper-zinc-gold-silver resource, as well as testing multiple untested prospects across the property. Recent drilling has yielded exceptional results, including 23 meters grading 11% copper equivalent. American Pacific is well-positioned to benefit from this aggressive partner-funded program, while retaining a meaningful 32% stake in the project.
At Madison, American Pacific recently regained 100% ownership of the project following the amicable dissolution of a joint venture with mining major Rio Tinto. Past drilling has intersected high-grade skarn mineralization, such as 14m @ 12 g/t gold and 0.5m @ 146 g/t gold. The company is now planning a $2 million drilling program to follow up on these results and test deeper porphyry targets. If successful, Madison has the potential to become a flagship asset for American Pacific.
Beyond Palmer and Madison, American Pacific holds a portfolio of earlier-stage projects in Nevada. The company is actively seeking joint venture partners to advance these assets, providing additional optionality for investors.
American Pacific is well-funded to advance its key projects, with $6.5 million in working capital. The company's tight share structure and strong institutional backing, including from mining financier and major shareholder Michael Gentile, provide a solid foundation for growth.
Looking ahead, American Pacific appears well-positioned to benefit from a rising commodity price environment. The global shift towards electrification and renewable energy is expected to drive strong demand for copper, while gold looks well-supported by persistent inflation and geopolitical risks. As CEO Warwick Smith explains, "The world's going to go green through copper… If the world's going to go green, it's going green through copper."
With an active exploration program planned for 2024, American Pacific offers investors multiple potential catalysts for share price appreciation. If the company is successful in expanding the high-grade resources at Palmer and Madison, it may be able to attract a major mining company to acquire and advance these projects. As a well-funded junior with quality assets in tier-one jurisdictions, American Pacific stands out as a compelling speculative opportunity in the junior copper and gold space.
View American Pacific Mining's company profile: https://www.cruxinvestor.com/companies/american-pacific-mining-corp
Sign up for Crux Investor: https://cruxinvestor.com