Company Interviews Crux Investor

Interview with Michael Konnert, President & CEO of Vizsla Silver Corp., and Dan Dickson, CEO of Endeavour Silver Corp.
Recording date: 22nd May 2024
*Silver: A Shining Investment Opportunity*
Silver has long been valued as a precious metal, but its growing industrial applications make it an increasingly compelling investment. With silver prices on the rise, driven by strong demand from East Asian countries and the rapid expansion of the solar energy sector, now may be an opportune time for investors to gain exposure to this versatile metal.
Mexico has emerged as a global silver mining hotspot, accounting for nearly a quarter of world production. The country's rich mineral endowment, mature mining industry, and competitive operating costs make it an attractive jurisdiction for silver miners. Despite some perceived geopolitical risks, mining executives remain bullish on Mexico's potential under its new government.Two silver-focused mining companies that stand out are Vizsla Silver (NYSE:VZLA) and Endeavour Silver (NYSE:EXK). Both are well-positioned to capitalize on rising silver prices through their robust Mexican project portfolios.
Vizsla Silver is developing the Panuco silver-gold project in Sinaloa, where it has consolidated a historic mining district for the first time. An aggressive 400,000-meter drill program has delineated a high-grade resource of over 200 million silver-equivalent ounces, with substantial exploration upside remaining across the district. With a preliminary economic assessment expected in the third quarter of 2023, Panuco has the potential to rapidly become a major low-cost silver mine.
Endeavour Silver is an established mid-tier producer with two underground silver-gold mines in Mexico. The company is nearing completion of its largest and lowest-cost mine yet, Terronera, which is expected to double production to 15 million silver-equivalent ounces per year while halving unit costs. Beyond Terronera, Endeavour has a robust project pipeline to potentially become a senior silver producer this decade.
The investment case for Vizsla Silver and Endeavour Silver is strengthened by the structural supply deficit emerging in the silver market. With demand outpacing supply for three years running and limited new mines in development globally, silver inventories are dwindling rapidly. This could provide a further tailwind for silver prices and mining equities in the medium to long term.
While investing in mining stocks carries inherent risks, both Vizsla Silver and Endeavour Silver have experienced management teams, strong financial positions, and significant asset value to underpin their growth prospects. For investors seeking leveraged exposure to the silver market, these two stocks merit consideration.
Investors can easily buy shares of Vizsla Silver and Endeavour Silver on the New York Stock Exchange under the ticker symbols VZLA and EXK, respectively. As with any equity investment, however, it is important to conduct thorough due diligence and consider an individual's risk tolerance and portfolio allocation before investing.
In conclusion, silver's unique dual role as a monetary and industrial metal make it a compelling investment opportunity for the years ahead. With strong demand fundamentals, constrained supply, and attractive mining jurisdictions like Mexico, silver appears well-positioned to outperform. Against this backdrop, silver-focused mining companies like Vizsla Silver and Endeavour Silver offer investors a pathway to participate in the potential upside while diversifying their portfolios with exposure to a key "green" metal of the future.
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Learn more: https://cruxinvestor.com/companies/vizsla-silver
https://cruxinvestor.com/companies/endeavour-silver
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Interview with Patrick Cruickshank, Director & CEO of Nine Miles Metals Ltd.
Recording date: 20th May 2024
Nine Mile Metals (CSE:NINE) is a junior exploration company focused on discovering copper-rich volcanogenic massive sulfide (VMS) deposits in the world-class Bathurst Mining Camp (BMC) of New Brunswick, Canada. With a dominant 100 square kilometer land position, a target-rich environment, an aggressive exploration program, and a management team with significant skin in the game, Nine Mile offers investors a compelling opportunity for outsized returns through discovery.
The BMC is a premier jurisdiction for VMS deposits, hosting 45 deposits with an estimated 70% of the district's potential remaining to be unlocked. Nine Mile has consolidated key ground in this camp and identified 11 high-priority VMS targets to date using a combination of advanced geophysics, artificial intelligence, and boots-on-the-ground fieldwork.
Nine Mile's flagship Wedge project is the most advanced, where ongoing drilling is demonstrating expansion potential along strike and at depth. Highlights include upper zone 15.50m assaying Cu-Eq of 1.98% and lower zone 3.12m assaying Cu-Eq of 2.29%. Upcoming catalysts include borehole EM results to refine follow-up targets and an updated geological model incorporating 183 historical drill holes.
Proof-of-concept drilling at the nearby California Lake project hit visible VMS mineralization in 8 out of 11 holes, confirming the potential of Nine Mile's exploration methodology. The No.6 target at California Lake is a high-priority target for 2024 which may represent the source of this mineralization.
New Brunswick is a top-tier mining jurisdiction and confers significant advantages for VMS exploration. Drilling costs are very low at less than C$100/meter, enabling rapid and cost-effective advancement. Management is aligned with shareholders, with insiders owning approximately 34% of the company. Nine Mile is well-funded following a $1.5M flow-through financing in early 2024.
The macroeconomic picture is also highly favorable for copper explorers like Nine Mile. Copper demand is expected to surge due to electrification and the global energy transition, while supply faces structural deficits from years of underinvestment, declining grades, and scarcity of new development projects.
In a world desperate for new copper supply, Nine Mile Metals offers investors excellent exposure to a company making exciting discoveries in a Tier 1 jurisdiction. With a proven exploration model, a skilled management team, and multiple shots on goal across a district-scale land package, Nine Mile is well positioned to deliver significant shareholder value in the near to medium term. Near-term catalysts will be ongoing drill results from Wedge and California Lake, as well as geophysical survey results to refine additional targets in the portfolio. Investors can look forward to a high-impact exploration program over the balance of 2024 as this compelling story continues to unfold.
View Nine Mile Metals' company profile: https://www.cruxinvestor.com/companies/nine-mile-metals
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Interview with Mark Selby, CEO of Canada Nickel.
Our previous interview: https://www.cruxinvestor.com/posts/canada-nickel-tsxvcnc-advancing-a-world-class-nickel-sulfide-project-5048
Recording date: 16th May 2024
Canada Nickel is advancing the Crawford nickel sulfide project, which is already the world's second largest nickel sulfide resource and reserve. They are also unlocking the potential of the Timmins nickel district in Ontario, Canada which could become the world's largest nickel sulfide district.
With $35 million in funding secured in early 2024, Canada Nickel is executing on plans to grow the resource. Recent drilling at their Reid property suggests it has potential for a much larger, lower-strip ratio resource than their flagship Crawford deposit. Over the next 12 months, the company aims to publish 7 additional resources (totalling 8, including Crawford) with the potential for 6 additional discoveries in the district.
Preliminary metallurgical testing at two other properties (Reid and MacDiarmid) using the same flowsheet as Crawford achieved the targeted 58-59% nickel recoveries and concentrate grades. This suggests the company can replicate the Crawford process at other deposits. From initial resource to full feasibility study at Crawford, it took just over three years—this timeline could be reduced for their other projects.
Canada Nickel expects to have the Crawford project fully permitted and financed by the end of 2024. A feasibility study showed a robust 18% after-tax IRR for Crawford inclusive of carbon capture credits. Although the nickel grade is relatively low, the scale (40+ year mine life), location and existing infrastructure make it highly economic. The after-tax NPV was US$2.5B (C$3.5B) compared to the company's C$250M market cap.
Anglo American, Glencore and Samsung SDI are cornerstone investors in Canada Nickel, validating the company and project. Canada Nickel is partnered with Ausenco, who have a strong track record of delivering base metal projects on time and budget, significantly de-risking the project.
The Timmins region has significant infrastructure advantages (skilled labor, low-carbon grid power, highway and rail access) that enable development of large, lower-grade nickel deposits. Selby believes the district could produce the equivalent of 5 Crawford-sized mines over the next 10-15 years to meet the explosive growth in nickel demand from EVs.
With the U.S. and Europe looking to secure domestic critical mineral supply chains and reduce reliance on China and Indonesia, Selby sees bifurcation of the nickel market, with consumers demanding "green" nickel. Canada Nickel is well positioned to help fill the supply gap for clean, ethical nickel in the coming years.
The nickel price has performed well, reaching near $20,000/t - Selby sees potential for further gains as most analysts are underestimating demand growth which has been over 10% annually so far this decade.
In summary, Canada Nickel offers compelling exposure to rising nickel demand, with a large, scalable and well-located nickel sulfide resource in a Tier 1 jurisdiction. Near-term catalysts include financing/permitting of Crawford, resource growth, and new discoveries.
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Learn more: https://cruxinvestor.com/companies/canada-nickel
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Interview with John Cash, CEO of Ur-Energy Inc. and Mark Chalmers, President & CEO of Energy Fuels Inc.
Recording date: 13th May 2024
The uranium market is in the early stages of a powerful resurgence that is capturing the attention of investors globally. The bullish investment thesis is underpinned by two key factors: accelerating demand for carbon-free nuclear energy, and intensifying challenges to scaling up uranium supply. The collision of these two forces sets the stage for a sustained period of higher uranium prices, creating a compelling opportunity for investors to gain exposure to the space.
On the demand side, the growth outlook for nuclear power has rarely been stronger. Governments worldwide are increasingly turning to nuclear energy as a critical tool for meeting ambitious decarbonization targets. The urgency of the climate crisis is overriding longstanding public and political opposition to nuclear power, resulting in a wave of new reactor construction and life extensions for existing fleets.
China is leading the charge, with plans to expand its nuclear capacity from around 50 GW to 120 GW by 2030. India, Russia, and South Korea also have ambitious buildout plans. Even in the U.S. and Europe, where nuclear growth has long been stagnant, there is a growing recognition that reactors will be needed to displace coal and gas generation.
All told the International Atomic Energy Agency expects global nuclear-generating capacity to nearly double by 2050 in its high-case scenario. This translates into substantial demand growth for uranium, which fuels the nuclear reaction process. The World Nuclear Association forecasts annual uranium demand rising from 79.6k tonnes in 2021 to 112.3k tonnes by 2035, a 41% increase.
However, the uranium industry faces daunting challenges in scaling up supply to meet this projected demand growth. The bear market of the past decade saw exploration and development spending plummet as low prices made new projects uneconomic. Now, companies are grappling with chronic labor shortages, cost inflation, heightened regulatory scrutiny, and exorbitant capital requirements that make it exceedingly difficult to bring new production online.
As Ur-Energy CEO John Cash explains, "Everyone's facing challenges post-COVID with manpower shortages, shortages of supplies, that just really tend to draw out the time it takes to get into production. We're seeing them virtually with every producer around the world. Ultimately, that is going to affect price going forward."
Energy Fuels CEO Mark Chalmers echoes this sentiment, noting, "It's a new gear here and unfortunately, in the mining business as a whole, it is hard to deliver projects on time, at capacity, and at costs where you're profitable."
Indeed, most industry estimates suggest the uranium price needs to at least double to incentivize enough new mine supply to close the impending deficit. And even then, permitting and construction timelines stretching out 5-10 years or more mean it will be a long time before those new pounds hit the market in meaningful quantities. The recent U.S. ban on Russian nuclear fuel imports after the Ukraine invasion has only exacerbated the tightening supply picture.
This widening disconnect between rising demand and stagnant supply will likely force utilities to more aggressively compete for the limited uranium available in the market. Ultimately, the clearing price will need to rise to levels that incentivize new production, a process that could take years to play out.
In the meantime, investors will likely reap the benefits as uranium equities rerate higher to reflect the strengthening fundamentals. The key is to focus on companies with proven, low-cost production capacity that can be scaled up quickly. Firms with strong balance sheets, permitted projects, and exposure to rising long-term contract prices are particularly well-positioned.
While risks around global growth, capital availability, and the pace of nuclear energy

Interview with Lindsay Reed, CEO of Minbos Resources (ASX:MNB)
Our previous interview: https://www.cruxinvestor.com/posts/minbos-resources-mnb-taking-advantage-of-rising-phosphate-prices-2011
Recording date: 14th May 2024
Minbos Resources, an Australian company listed on the ASX, is developing Angola's promising Cabinda phosphate project. The project offers an attractive investment opportunity in the growing African agricultural sector with a large, high-grade resource, low projected costs, and strong domestic demand.
The Cabinda project boasts a JORC resource of 8 million tonnes at 30% P2O5 content. Minbos plans to produce a phosphate rock concentrate well-suited for direct application as fertiliser in the Angolan market. CEO Lindsay Reed highlights the product's high citrate solubility, ideal for Angola's phosphate-deficient soils.
The project's initial capex is estimated at just US$24 million, with a quick projected payback of 2 years. Operating costs are forecast at a competitive $117/tonne, providing strong margins at current phosphate prices. Minbos aims to start construction in July 2024 and achieve first production for the 2025/26 cropping season.
Minbos is uniquely focused on supplying the domestic Angolan market. Despite vast agricultural potential, Angola currently imports nearly all of its fertiliser. The government has prioritised food security and incentivised local fertiliser production. Minbos has signed an offtake MOU with Grupo Carrinho, a major Angolan food producer, for approximately 80% of the project's initial 200,000 tonne per annum output.
The company has conducted extensive field trials in Angola, demonstrating yield increases of up to 300% using its phosphate product. With millions of smallholder farmers and significant undeveloped arable land, Angola's fertiliser demand is set to grow substantially.
The Angolan government strongly supports the Cabinda project, granting Minbos a preferential 6.1% tax rate. The company has also secured $14 million in debt financing from the South African IDC, which sees the project as aligning with regional development goals.
While the initial project scope targets 200,000 tpa of production, the facilities are designed to enable a low-cost expansion to 400,000 tpa. Minbos is exploring opportunities to serve export markets beyond Angola. Additionally, the company is studying green ammonia production in Angola, leveraging the country's low-cost hydroelectric power to potentially offer a more complete fertiliser product range.
Minbos stands out among the few junior companies with African phosphate projects. Peers include Avenira, Kropz Plc, and Ikwezi Mining. Minbos differentiates itself through its Angola focus, low costs, strategic partnerships, and low capex requirements.
The investment thesis for Minbos centers on its exposure to the expected growth in fertiliser demand across sub-Saharan Africa, its low-cost and high-margin project, binding off-take agreement, strong government support, expansion and diversification potential, and valuation upside as it transitions to production.
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View Minbos Resources' company profile: https://www.cruxinvestor.com/companies/minbos-resources-limited
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Interview with David Kelley, President & CEO of Chakana Copper
Our previous interview: https://www.cruxinvestor.com/posts/chakana-copper-tsx-v-peru-pivotal-3000m-drill-program-for-tier-one-potential-in-peru-5047
Recording date: 10th May 2024
Chakana Copper (TSX-V: PERU) is a Canadian mineral exploration company that is making significant strides in advancing its flagship Soledad project, located in the prolific Ancash mining district of Peru. The company's focus on high-grade copper, gold, and silver mineralization has positioned it as an attractive investment opportunity for those seeking exposure to the growing global demand for these metals.
Since 2017, Chakana Copper has been systematically exploring the Soledad project, which now encompasses a impressive 4,200 hectares of highly prospective land. The company's efforts have been rewarded with the discovery of numerous high-grade, outcropping tourmaline breccia pipes, which have consistently delivered strong copper, gold, and silver grades.
Recent drilling at the Estremadoyro breccia pipe has further highlighted the potential of the project, with intercepts of 1% copper, 0.6 g/t gold, and 26 g/t silver, equating to an impressive 1.65% copper equivalent grade. The presence of high-grade copper minerals such as bornite intergrown with chalcopyrite suggests the potential for even higher grades as exploration continues.
In addition to the high-grade breccias, Chakana Copper is also excited about the potential of its Mega Gold porphyry target. Porphyry deposits are known for their large size potential, and early indications from drilling at Mega Gold are encouraging. Visual observations of alteration and the presence of key minerals such as chalcopyrite and molybdenite suggest that the company may be onto a significant discovery.
Chakana Copper is currently in the midst of a 3,000-meter drill program, which is now being expanded based on the positive results received to date. This expansion is being supported by Gold Fields, a major shareholder in the company, which is a strong endorsement of the project's potential.
For investors, Chakana Copper offers a unique opportunity to gain exposure to a major new copper-gold-silver discovery in a well-established mining jurisdiction. The company's strong technical team, backed by supportive shareholders and a tight share structure, is well-positioned to unlock the value of the Soledad project as exploration continues.
With the global demand for copper, gold, and silver expected to remain strong in the coming years, driven by the growth of renewable energy, electric vehicles, and infrastructure development, Chakana Copper is poised to benefit from its strategic position in the market.
As the company continues to advance the Soledad project, investors can look forward to a steady stream of news flow, including drill results and resource updates, which have the potential to re-rate the stock as the true scale of the discovery becomes apparent.
In summary, Chakana Copper represents a compelling investment opportunity for those seeking exposure to the next major copper-gold-silver discovery in Peru. With a large, prospective land package, high-grade results, and a promising porphyry target, the company is well-positioned to deliver significant value to shareholders in the near term and beyond.
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Learn more: https://cruxinvestor.com/companies/chakana-copper
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