Magna Mining Commissions Second Drill Rig at the Shakespeare Project and Provides an Update on the Evaluation of a Toll Milling Restart for Near-Term Nickel Production
Magna Mining Inc (TSXV: NICU) (the "Company") is pleased to announce that it has commissioned a second drill rig to accelerate exploration drilling at previously identified regional targets on the Shakespeare Nickel Project. The second rig was moved to site early this month, and recently began drilling at the Company's Spanish River Mine Option ("Spanish River"), located 1km south-west of the recent P-4 nickel discovery (see Fig. 1). Spanish River was previously in production as an underground Cu-Co-Au-Ag operation until 1970, and the current drill program is the first diamond drilling program since the mine closed.
The first drill rig of the 2022 drill program started in January and is currently drilling the P-4 Nickel target, which was discovered during the 2021 regional exploration drill program (see News Release). This drill is planning to complete an initial 2500m of drilling to further test the EM plate associated with the discovery hole, as well as the prospective trend of over 400m of strike length to the east. The Company expects this drilling to be completed in early April, with assay results coming out later that month. Magna is planning to complete 10,000m of drilling in 2022, with 5500 m still to be allocated based on results from the winter drilling program.
UPDATES ON THE EVALUATION OF NEAR-TERM NICKEL PRODUCTION VIA TOLL MILLING
Ongoing discussions with Sudbury mill owners have been positive, and Magna has decided to accelerate the evaluation of the toll milling of Shakespeare ore to better understand the potential economics. Once the current drilling is completed at Spanish River (within 2-3 weeks), the second rig will be prioritized to extract representative metallurgical core samples from the Shakespeare deposit. These samples will be used to determine the recoveries and payable terms from mills in the region, which will support the evaluation of the near-term restart of toll milling. The Shakespeare Mine was previously in commercial production from 2010 to 2012 via toll milling, and a total of approximately 490,000 tonnes of ore was sent to the Strathcona Mill in Sudbury for processing.
Magna Mining CEO Jason Jessup commented: "Given the recent moves in nickel and copper prices, we have decided to accelerate the studies associated with restarting production via toll milling. Nickel, copper and palladium prices have seen record highs recently and there is potentially a healthy margin associated with the near-term production of Shakespeare ore through a third-party mill. Given that major permits for production remain in place, we feel Magna is uniquely positioned to take advantage of the current metal price environment. We remain focused on our three pillars of growth: development of the Shakespeare open pit mine, mill and tailing facility, resource growth through exploration and executing accretive acquisitions of Sudbury nickel projects that have synergies with Shakespeare. The potential cash flows from toll milling could contribute meaningfully to all three of these growth initiatives."
ABOUT THE SPANISH RIVER MINE OPTION
Magna has an option to acquire 100% of the past-producing Spanish River Mine over a three-year term comprising exploration expenditures, cash and share payments. Once the option terms have been satisfied, the vendor will retain a 1.5% NSR royalty which 0.75% (50%) can be purchased by Magna for $1,000,000. Spanish River is adjacent to Magna's 100% owned Shakespeare Project, located approximately 5 km from the Shakespeare Mine and has potential to be an additional source of feed for a future Shakespeare mill.
Figure 1: Spanish River exploration target showing lithologies and the deformation corridor
Image 1: Mineralized deformation corridor and surface excavation from past producing Spanish River underground mine, located 1km south-west of Magna Mining's P-4 nickel discovery
The technical information in this press release has been reviewed and approved by Mynyr Hoxha, Ph.D., P.Geo., the Company's Vice President of Exploration. Dr. Hoxha is a qualified person under Canadian National Instrument 43-101.
Magna Mining is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The Company's flagship asset is the past producing Shakespeare Mine which has major permits for the construction of a 4,500 tonnes per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.magnamining.com).
For further information, please contact:
Jason Jessup Chief Executive Officer or Paul Fowler, CFA Senior Vice President Email: info@magnamining.com
Cautionary Statement
This press release contains certain forward-looking information or forward-looking statements as defined in applicable securities laws. Forward-looking statements are not historical facts and are subject to several risks and uncertainties beyond the Company's control, including statements regarding the production at the Shakespeare Mine, the economic and operational potential of the Shakespeare Mine, potential acquisitions, plans to complete exploration programs, potential mineralization, exploration results and statements regarding beliefs, plans, expectations, or intentions of the Company. Resource exploration and development is highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.
Magna Mining Inc. (TSXV: NICU) ("Magna" or the "Company") is pleased to announce the appointment of Jonathan Goodman to Magna's Board of Directors. Mr. Goodman is currently the President and CEO of Dundee Corporation ("Dundee") and is also the President and CEO of Dundee Goodman Merchant Partners, a mining focused merchant bank. Dundee currently holds a 19.2% investment interest in Magna as of October 26, 2021 (see news release).
Mr. Goodman previously served as CEO of Dundee Precious Metals from 1995 to 2013, as Executive Chairman from April 2013 to September 2017, at which time he was appointed Chairman.
Mr. Goodman has over 30 years of experience in the resource and investment industry, working as a geologist, senior analyst, portfolio manager and as CEO of a producing mining company. Mr. Goodman joined Goodman & Company, Investment Counsel Ltd. in 1990, where he was responsible for the selection of Canadian equities and played a major role in developing asset allocation strategies, before becoming the company's President. He is also one of the founding partners of Goepel Shields and Partners, an investment firm. Mr. Goodman graduated from the Colorado School of Mines as a Professional Engineer, holds a Master of Business Administration from the University of Toronto and is a Chartered Financial Analyst.
Jason Jessup, CEO of Magna, commented, "On behalf of myself and the rest of the directors of Magna, I am pleased to welcome Mr. Goodman to the board. His experience in growing mining companies and his capital markets expertise will be an enormous asset to our Company. Over the last 12 months, Dundee Corporation has become a key shareholder of Magna Mining, and their continued support has been critical to the successful execution of our growth objectives to date. Dundee's representation on our board underlines their continued commitment to Magna Mining, which will help us to achieve our ultimate objective of becoming the next multi-mine nickel producer in the Sudbury region."
Magna Mining is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The Company's flagship asset is the past producing Shakespeare Mine which has major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.magnamining.com).
For further information, please contact:
Jason Jessup Chief Executive Officer or Paul Fowler, CFA Senior Vice President Email: info@magnamining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Magna Mining Inc. (TSXV: NICU) ("Magna" or the "Company") is pleased to announce that further to its news release dated January 31, 2022, it has filed on SEDAR an independent technical report titled "Shakespeare Project Feasibility Study Technical Report" in respect of its Shakespeare Nickel Project located 60 km south-west of Sudbury, Ontario. The technical report has been filed in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. A copy of the technical report is available under the Company's profile page at www.sedar.com.
The independent technical report is dated March 17, 2022, with an effective date of January 31, 2022, and was prepared by AGP Mining Consultants Inc.
Magna Mining is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The Company's flagship asset is the past producing Shakespeare Mine which has major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.magnamining.com).
For further information, please contact: Jason Jessup Chief Executive Officer or Paul Fowler, CFA Senior Vice President Email: info@magnamining.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Magna Mining Inc. (TSXV: NICU) ("Magna" or the "Company") is pleased to announce that it has entered into a non-binding memorandum of understanding ("MOU") with Mitsui & Co., Ltd. ("Mitsui"), whereby Magna and Mitsui will discuss the possibility of Mitsui's acquirement of a 10 to 12.5% interest in Magna's Shakespeare Mine in exchange for cash consideration ranging between $8 million to $10 million on such terms as to be further negotiated between the parties (the "Transaction"). In connection with the Transaction, it is expected that the parties will enter into a joint venture agreement to jointly pursue the development of the Shakespeare Mine, with Magna being the operator of the Project (the "Joint Venture" or "JV").
Magna Mining CEO Jason Jessup commented, "This MOU is the beginning of what we hope will be a long-term partnership between Magna Mining and Mitsui, the objective of which is to create the next nickel producer in the world-class nickel mining region of Sudbury, Ontario. The signing of an MOU with a global trading and investment company of Mitsui's stature underlines the strategic importance of our Shakespeare Mine and the growth potential of our company. We anticipate that coupling our operational and geological expertise with Mitsui's balance sheet strength is a perfect combination in furtherance of advancing the Shakespeare Mine into production and developing a significant nickel producing company."
The MOU is limited to 2590 hectares of the more than 18,000-hectare Shakespeare Project (see Figure 1). The MOU property covers the location of the existing Shakespeare deposit, the proposed location of the Shakespeare open pit mine, mill, tailings storage facility and immediately adjacent claims. The remainder of the Shakespeare Project and regional exploration targets, such as the P-4 Discovery, will remain 100% owned by Magna.
Each participant in the JV will retain the offtake right for the amount of the products (including nickel, copper and/or other by-products) from the Shakespeare Mine pro-rata to their ownership percentage in the JV. In addition to the 10 to 12.5% interest to be acquired in the Transaction, Magna and Mitsui shall evaluate and discuss cooperatively, the potential for Mitsui to acquire an additional 12.5% to 15% stake in the JV prior to the start of construction, on terms and valuation mutually agreed upon by the Parties.
The parties anticipate entering into a definitive purchase and joint venture agreement setting out in more detail the proposed terms of the Transaction.
Figure 1. Map Identifying the Portion of the Shakespeare Project Covered Under the MOU
The Transaction is subject to a number of conditions including, but not limited to: (i) completion of due diligence by Mitsui, (ii) the parties negotiating and executing definitive agreements on terms mutually agreed upon by the parties, and (iii) receipt of all regulatory approvals and third-party consents, including the approval of the TSX Venture Exchange.
Magna cautions that there is no assurance that the MOU will result in the completion of the Transaction, or, if the Transaction is undertaken, as to its terms or timing.
ADVISORS
Desjardins Capital Markets is acting as financial advisor and Bennet Jones LLP is acting as legal counsel to Magna.
ABOUT MITSUI & CO.
Mitsui & Co., Ltd. (8031: JP) is a global trading and investment company with a diversified business portfolio that spans approximately 63 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania.
Mitsui has about 5,600 employees and deploys talent around the globe to identify, develop, and grow businesses in collaboration with a global network of trusted partners. Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries.
For more information on Mitsui & Co.'s businesses visit, www.mitsui.com.
Magna is an exploration and development company focused on sulphide nickel, copper and PGM projects in the Sudbury region of Ontario, Canada. The Company's flagship asset is the past producing Shakespeare Mine, which has major permits for the construction of a 4500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For further information, please refer to the Company's SEDAR filings at www.sedar.com or visit the Company's website at www.magnamining.com or contact:
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the expectation that the Company will enter into a definitive agreement in relation to the Transaction, the terms of the Transaction, the timing and ability of the Company to complete the Transaction, the timing and ability of the Company to receive necessary regulatory approvals, and the plans, operations and prospects of the Company. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the Company's properties, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Magna Mining Inc (TSXV: NICU) (the "Company") is pleased to announce the results of the 2022 Feasibility Study for the Shakespeare Nickel Project ("Shakespeare") located 60 km south-west of Sudbury, Ontario. The Feasibility Study ("Study") is considered a base case and does not include any of the results from the 2021 Shakespeare drilling campaign (as highlighted in Figure 3). This Study remains within the constraints of current approvals, with only minor amendments and permits required prior to the start of construction. Shakespeare has a filed Closure Plan that has been accepted (approved) by the Ministry of Northern Development, Mines, Natural Resources and Forestry, and has obtained major permits for construction of a 4500 tonne per day (tpd) open pit mine, mill and tailing storage facility.
Included in the feasibility study is an analysis of the greenhouse gas (GHG) emissions over the life-of-mine. The deposit type, availability of renewable energy and emission reduction opportunities will allow the Shakespeare site to extract ore and produce nickel and copper concentrates with below average emission intensity. Verified carbon offsets for the remaining GHG emission sources have been included in operational costs, resulting in a carbon neutral nickel mining operation.
Highlights Include (all results are reported in Canadian Dollars unless otherwise noted):
Base Case results demonstrate a Pre-Tax NPV6% of $221 million, IRR of 27.2%, and a 3.4-year payback, and a Post-Tax NPV6% of $140 million, IRR of 21.5% and 3.5 year post-tax payback period based on metal prices of US$ 8.50/lb. nickel, US$ 3.95/lb. copper, US$ 24/lb. cobalt, US$ 950/oz platinum, US$ 1,750/oz palladium and US$ 1,600 gold and an exchange rate of 0.77 US$:CDN.
Initial capital requirements of $232.9 million, including all mine pre-production costs, co-disposal area preparation and sustaining capital of $9.2 million (including closure).
Operating Costs of $41.18/t ore include carbon offset purchases
Cash cost of US$(-0.76)/lb. nickel and AISC of US$(-0.61)/lb. nickel net of copper, cobalt and PGM by-product credits
Recovered in concentrate nickel of 65.7 million pounds, copper of 86.7 million pounds, cobalt of 3.0 million pounds and PGM's of 177,000 ounces
Average strip ratio of 4.98:1 with 11.9 million tonnes of reserves
Magna Mining CEO Jason Jessup commented: "This feasibility study demonstrates why we think the Shakespeare Nickel Project has the potential to be the next nickel producing project in Canada, and it confirms our belief that Shakespeare is an attractive stand-alone operation at current nickel and copper prices. The results of the study show positive economics, a modest upfront capital cost and strong leverage to the price of nickel and copper. Building the project as outlined in the feasibility would also give us a cornerstone asset with which to pursue Magna's vision of developing a hub and spoke production model in the world class Sudbury nickel mining camp. Aside from organic growth at our Shakespeare Project, we are evaluating acquisition opportunities that have synergies with Shakespeare. We are quite proud that the Study also includes detailed carbon accounting and incorporates the purchase of carbon offset credits to become a carbon neutral nickel mining operation. We believe that Shakespeare is the only feasibility stage nickel project in North America that can make this claim."
Paul Fowler, Magna Mining SVP added: "We are delighted to be able to complete this feasibility study within a year of our 2021 public listing, and it demonstrates the potential for Shakespeare to be Canada's next producing nickel mine. Our recent successful drill campaigns at the Shakespeare Mine and the adjacent P-4 exploration target also provide encouraging evidence that we will be able to fulfill our goal of further growing the resources at Shakespeare, potentially extending the life of mine and making new discoveries on our property package."
Financial Analysis
The Base Case using US$8.50/lb. nickel, US$3.95/lb. copper, US$ 24/lb. cobalt, US$ 950/oz platinum, US$ 1,750/oz palladium and US$ 1,600 gold and an exchange rate of 0.77 US$:CDN generates a before tax NPV6% of $221 million and an IRR of 27.2%, with a 3.4 year payback. After-tax NPV6% is $140 million, with an Internal Rate of Return (IRR) of 21.5%. Payback on the initial capital is 3.5 years.
Table 1: Summary of Shakespeare Project Economic Results - Metal Price Sensitivity
Units
Upside Case
Spot Price Jan 2022
Base Case
Low Case
Nickel
US$/lb.
12.00
10.28
8.50
7.00
Copper
US$/lb.
4.75
4.44
3.95
3.00
Cobalt
US$/lb.
33.00
32.66
24.00
17.50
Platinum
US$/oz
1,000
1,030
950
900
Palladium
US$/oz
2,150
2,153
1,750
1,400
Gold
US$/oz
1,850
1,838
1,600
1,500
Pre-Tax NPV (6%)
CDN$ millions
487
380
221
43
Pre-Tax IRR
%
51.1
41.5
27.2
10.3
Post-Tax NPV (6%)
CDN$ millions
318
247
140
14
Post-Tax IRR (%)
%
41.1
33.3
21.5
7.5
Revenue for the project is primarily from nickel (49%) with copper as the second largest revenue contributor (32%). Cobalt and PGM's account for the remainder of revenues as shown in Figure 1.
The Study has a mine life of 7.1 years with the current reserves.
The Study was prepared in accordance with National Instrument 43-101 (NI 43-101 of the Canadian Securities Administrators). The capital and operating cost estimates are summarized below. The operating costs have been detailed in Table 2, cash costs in Table 3 and the capital costs in Table 4.
The operating costs are estimated at $41.18/t ore over the mine life which include the purchase of carbon offsets and financing of the mining fleet with a 20% initial payment. The initial capital cost is $232.9 million with sustaining capital of $9.2 million including closure. The All In Sustaining Cost (AISC) is US$(0.61)/lb. nickel payable, net of by-product credits.
Table 2: Operating Cost Summary (CDN$)
Operating Cost
Cost ($ M)
$/t Ore
Mining
243.7
20.53
Processing
179.7
15.14
G&A
35.3
2.98
Transport & Refining
9.2
0.78
Carbon Offset Purchase
3.1
0.26
Royalties
17.7
1.49
Total Operating Cost
488.8
41.18
Table 3: Cash Costs and All In Sustaining Costs (US$)
Operating Cost
Units
Cost
Nickel Cash Cost
US$/lb. payable
$8.00
Nickel Cash Cost (including by-product credits)
US$/lb. payable
$ (0.76)
Nickel All In Sustaining Costs (AISC)
US$/lb. payable
$8.15
Nickel AISC (including by-product credits)
US$/lb. payable
$(0.61)
Table 4: Capital Cost Summary ($CDN)
Capital Cost
Total ($ M)
Initial ($M)
Sustaining ($M)
Mining
61.4
58.7
2.6
Processing
64.8
63.5
1.3
Infrastructure
59.3
59.3
-
Environmental
7.0
1.8
5.2
Subtotal
192.5
183.4
9.1
Indirects
29.9
29.9
-
Contingency
19.7
19.6
0.1
Total Capital Cost
242.1
232.9
9.2
The Study estimates the metal production as shown in Table 5.
Table 5: Life of Mine Metal Production
Metal
Recovery (%)
Contained Metal in Concentrate (Mlbs. or K oz)
Nickel
76.8
65.7
Copper
95.1
86.7
Cobalt
55.9
3.0
Platinum
76.2
93
Palladium
42.9
58
Gold
38.3
26
Mining and Infrastructure
The Study considers the use of an owner operated fleet including 12-91 tonne trucks, hydraulic excavators, wheel loaders and drills. The mine is designed to provide 4,500 tpd of mill feed to the process plant to be constructed adjacent to the pit. The annual mining rate averages 11.5 Mtpa in the first four years, peaking at 11.9 Mtpa in Year 3 before tapering off until the end of the mine life. The production profile is shown in Figure 2 with the two main grade items: nickel and copper.
Material from the pit will be used to construct the Co-Disposal Area (CDA) for storage of waste and tailings in the adjacent valley. This facility will be lined allowing the long-term storage of potentially acid generating tailings (PAG) material from the process plant and any PAG material from the mine beneath the water level and control of the drainage from the waste stored within its footprint. The process plant will generate both PAG tailings and non-acid generating tailings (NAG) that are separated at the plant. The NAG tailings will be stored with the NAG waste rock from the mine. NAG waste not used in construction of the plant pad and haul roads will be stored in the CDA. The CDA includes a settling pond, polishing pond and water treatment facility for any variances in water quality encountered prior to discharge to the environment. The water management system has been designed to reuse site water for process applications, minimize freshwater requirements and effectively collect contact run-off in accordance with legislative requirements.
The Shakespeare benefits from past mining infrastructure that still exists and its proximity to Sudbury. This enables the mine to operate without the need of camp facilities due to its all-season road currently in place. Existing infrastructure and nearby infrastructure include:
All season access road only requiring minor upgrading
Existing sand and gravel quarries for construction material of the plant and CDA
Access to hydro power at Espanola for quick connection to the grid
Settling ponds in place adjacent to the pit
Access to the edges of the pit for mining equipment
Mineral Resources and Reserves
The Open Pit Indicated Mineral Resource Estimate upon which the Study is based includes 203.8 Mlbs of nickel equivalent from 16.51 Mt grading 0.34% nickel, 0.36% copper, 0.02% cobalt, 0.33 g/t platinum, 0.36 g/t palladium and 0.19 g/t gold. No Inferred Mineral Resource is contained within the Mineral Resource pit shell.
Underground Mineral Resources use a 0.4% NiEq cutoff and are estimated below the open pit resource shell. The Underground Mineral Resource contains 44.8 Mlbs of nickel equivalent Indicated Resource and 29.6 Mlbs of nickel equivalent in the Inferred Resource.
The mineral resources are shown in Table 6.
Table 6: Shakespeare Mineral Resources (June 1, 2021)
Units
Open Pit
Underground
Total
Indicated
Indicated
Inferred
Indicated
Inferred
Cutoff
Ni Eq%
0.2%
0.4%
0.4%
0.2/0.4%
0.4%
Tonnage
M Tonnes
16.51
3.83
2.36
20.34
2.36
Nickel
%
0.34
0.31
0.33
0.33
0.33
Copper
%
0.36
0.36
0.40
0.36
0.40
Cobalt
%
0.02
0.02
0.02
0.02
0.02
Platinum
g/t
0.33
0.30
0.34
0.32
0.34
Palladium
g/t
0.36
0.32
0.37
0.35
0.37
Gold
g/t
0.19
0.19
0.20
0.19
0.20
Nickel Equivalent
%
0.56
0.53
0.57
0.55
0.57
Nickel
Mlbs.
123.7
26.2
17.1
149.9
17.1
Copper
Mlbs.
131.0
30.4
20.8
161.4
20.8
Cobalt
Mlbs.
7.3
1.7
1.0
9.0
1.0
Platinum
K oz
175.1
25.3
17.7
200.5
17.7
Palladium
K oz
191.1
27.0
19.2
218.1
19.2
Gold
K oz
100.8
16.1
10.4
116.9
10.4
Nickel Equivalent
Mlbs.
203.8
44.8
29.6
248.6
29.6
Mineral Resources are exclusive of material mined.
CIM (2014) definitions were followed for Mineral Resources Reporting.
Mineral resources which are not mineral reserves do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate.
Open pit Mineral Resources are reported at a base case cut-off grade of 0.2% NiEq within a conceptual pit shell.
Underground (below-pit) Mineral Resources are estimated from the bottom of the pit and are reported at a base case cut-off grade of 0.4% NiEq. The underground Mineral Resource grade blocks were quantified above the base case cut-off grade, below the constraining pit shell and within the constraining mineralized wireframes. At this base case cut-off grade the deposit shows excellent deposit continuity.
Based on the size, shape, and orientation of the Deposit, it is envisioned that the underground mineralization may be mined using the longitudinal longhole retreat mining method (a branch of the generic mining method known as sublevel stoping).
A fixed specific gravity value of 3.00 was used to estimate the resource tonnage from block model volumes; an SG of 2.85 for waste.
NiEq Cut-off grades are based on metal prices of $7.50/lb Ni, $3.25/lb Cu, $21.00/lb Co, $1,000/oz Pt, $2,000/oz Pd and $1,600/oz Au, and metal recoveries of 75% for Ni, 96% for copper, 56% for Co, 73% for Pt, 39% for Pd and 36% for Au.
The results from the pit optimization are used solely for the purpose of testing the "reasonable prospects for economic extraction" by an open pit and do not represent an attempt to estimate mineral reserves. The results are used as a guide to assist in the preparation of a Mineral Resource statement and to select an appropriate resource reporting cut-off grade.
The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
Mineral Reserves for the Shakespeare Project have been shown in Table 7. The Mineral Reserve is based on a marginal cutoff using a net smelter calculation which is equivalent to a 0.23% nickel cutoff grade.
Table 7: Shakespeare Mineral Reserves (December 31, 2021)
Units
Open Pit
Probable
Cutoff
Ni%
0.23
Tonnage
M Tonnes
11.87
Nickel
%
0.33
Copper
%
0.35
Cobalt
%
0.02
Platinum
g/t
0.32
Palladium
g/t
0.36
Gold
g/t
0.18
Nickel
Mlbs.
85.6
Copper
Mlbs.
91.1
Cobalt
Mlbs.
5.4
Platinum
K oz
122.2
Palladium
K oz
135.7
Gold
K oz
68.9
Note: CIM Definition Standards (2014) were followed for calculating Mineral Reserves. The mineral reserve estimate is as of December 31, 2021 and is based on the mineral resource estimate for the Shakespeare Property dated June 1, 2021. The mineral reserve estimate was completed under the supervision of Gordon Zurowski, P.Eng. of AGP, who is a Qualified Person as defined under NI 43-101. Mineral reserves are stated within the final pit design based on metal prices of US$ 6.50/lb. nickel, US$ 3.00/lb. copper, US$ 17/lb. cobalt, US$ 900/oz platinum, US$ 1,700/oz palladium and US$ 1,500 gold and an exchange rate of 0.77 US$:CDN. Metal recoveries are 76.8% nickel, 95.1% copper, 55.9% cobalt, 76.2% platinum, 42.9% palladium and 38.3% gold. The nickel cutoff applied was 0.23% nickel. Open pit mining costs used were $2.30/t mined. Processing costs were $15.23/t ore and G&A was $2.59/t ore. Numbers may not sum due to rounding.
Opportunities for Optimization and Growth
Given that the feasibility study is based on maintaining the operational parameters under which permits for construction of the Shakespeare Mine, mill and tailings storage facility have been issued, numerous opportunities remain for optimization and growth. The most significant of these opportunities are:
Expansion of Mineral Resources and Conversion to Mineral Reserves
The feasibility study resources have an effective date of June 1, 2021 and therefore does not include the results of the 2021 drilling program at Shakespeare (with additional assays still pending). Reported assays in the Gap, West and East Zones will be incorporated into a resource update in the future (see Fig. 1).
Underground Mining Potential
Underground resources have been outlined beneath the Feasibility open pit which may represent an opportunity for low-cost, bulk underground mining. This will be investigated in future studies to determine if a viable underground mine could provide additional feed to the mill and extend the life of mine.
Effect of Higher Nickel Prices on Final Pit Design
Reserves for the Study were calculated using US$6.50/lb nickel, US$3.00/lb copper, US$17/lb cobalt, US$900/oz platinum, US$1700/oz palladium and US$1500/oz gold. At higher metal prices, there is potential to push the pit deeper which may incorporate additional resource material, possibly extending mine life.
New Exploration Targets
Magna intends to continue to explore and expand on existing mineralized targets which show potential to become economic, high grade satellite deposits to feed a future Shakespeare mill.
Figure 3: Longitudinal Section of Shakespeare Deposit Showing Feasibility Open Pit Design and Resource Shell and Selected Previously Reported 2021 Exploration Drilling Results
All composite intervals are reported as core length as true width has not been determined.
Nickel Equivalent (NiEq%) grade is calculated based on metal prices of $6.25/lb Ni, $2.80/lb Cu, $31.00/lb Co, $950/oz Pt, $900/oz Pd and $1,250.00/oz Au, and metal recoveries of 76.4% for Ni, 95.9% for Cu, 71% for Co, 74.8% for Pt, 42.4% for Pd and 38.4% for Au.
Qualified Person
Certain technical information in this press release has been reviewed and approved by Mynyr Hoxha, Ph.D., P.Geo., the Company's Vice President of Exploration. Dr. Hoxha is a qualified person under Canadian National Instrument 43-101. Dr. Hoxha is an employee of Magna and is not independent of the Company under NI 43-101
The Feasibility Study was prepared under the direction and supervision of Gordon Zurowski, P. Eng Principal Mining Engineer with AGP, and the supporting Technical Report (the "Technical Report") will be available on SEDAR (www.sedar.com) under the Company's issuer profile within 45 calendar days. Mr. Zurowski, who is an independent Qualified Person as defined under NI 43-101, has reviewed, and approved the technical information pertaining to the Feasibility Study disclosed in this press release.
Magna Mining is an exploration and development company focused on nickel, copper and PGM projects in the Sudbury Region of Ontario, Canada. The Company's flagship asset is the past producing Shakespeare Mine which has major permits for the construction of a 4500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company's website (www.magnamining.com).
For further information, please contact: Jason Jessup Chief Executive Officer or Paul Fowler, CFA Senior Vice President Email: info@magnamining.com
Cautionary Statement
This press release contains certain forward-looking information or forward-looking statements as defined in applicable securities laws. Forward-looking statements are not historical facts and are subject to several risks and uncertainties beyond the Company's control, including statements regarding the production at the Shakespeare Mine, the economic and operational potential of the Shakespeare Mine, potential acquisitions, plans to complete exploration programs, potential mineralization, exploration results and statements regarding beliefs, plans, expectations, or intentions of the Company. Resource exploration and development is highly speculative, characterized by several significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.
Magna Mining Inc. (TSXV: NICU) ("Magna" or the "Company") is pleased to announce that it has entered into a market-making agreement (the "Agreement") with Independent Trading Group ("ITG"), pursuant to which ITG has agreed to provide market-making services to the Company in accordance with the policies of the TSX Venture Exchange (the "Exchange") and applicable laws.
ITG will trade shares of the Company on the TSXV and other available trading venues with the objective of maintaining a reasonable market and improving the liquidity of the Company's common shares.
The Agreement is effective January 25th, 2022, and has an initial term of three months, which will automatically extend for successive one-month terms unless terminated by either party on 30 days' prior notice. In consideration of the services provided by ITG pursuant to the Agreement, ITG will receive compensation of $5,000 per month, payable monthly in advance, and will be paid by the Company from its working capital resources. There are no performance factors contained in the Agreement and ITG will not receive shares, options or other securities as compensation. The capital used for market-making will be provided by ITG, and no third party will be providing funds or securities for the market-making activities.
ITG is an independent, privately held broker-dealer based in Toronto, Ontario, that provides a wide range of financial and investment services. ITG is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF) and can access all Canadian stock exchanges and alternative trading systems. ITG and the Company are unrelated and unaffiliated entities and, at the time of the Agreement, neither ITG nor its principals have any interest, directly or indirectly, in the securities of the Company or any right or intent to acquire such an interest.
The Agreement is subject to the Company's filing requirements with the TSXV and TSXV approval.
Magna is an exploration and development company focused on sulphide nickel, copper and PGM projects in the Sudbury region of Ontario, Canada. The Company's flagship asset is the past producing Shakespeare Mine, which has major permits for the construction of a 4,500 tonne per day open pit mine, processing plant and tailings storage facility and is surrounded by a contiguous 180km2 prospective land package.
For further information, please refer to the Company's SEDAR filings at www.sedar.com or visit the Company's website at www.magnamining.com or contact:
Jason Jessup, Chief Executive Officer or Paul Fowler, CFA, Senior Vice President
This press release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, the timing and ability of the Company to receive necessary regulatory approvals, and the plans, operations and prospects of the Company and its properties. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of metals, the future demand for metals, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the Company's properties, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the mining industry, delays in obtaining governmental approvals, and failure to obtain regulatory or shareholder approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
The shareholders of Lundin Mining Corporation (TSX: LUN) together with BHP Group Limited and Filo Corp. (TSX: FIL) have agreed to the terms of a Plan of Arrangement resulting in the combination of the two companies. Each share of Filo Corp. will be exchanged for 2.3578 shares of Lundin Mining or C$33.00 cash subject to proration of a max cash of C$2,767 million and maximum share consideration of 92.1 million Lundin Mining shares.
In expectation of the arrangement closing, Filo Corp. will be removed from the S&P/TSX Composite Index prior to the open of trading on January 15, 2025 . The shares outstanding of Lundin Mining will be increased at the same time to reflect the issuance of shares.
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The shareholders of Lundin Mining Corporation (TSX: LUN) together with BHP Group Limited and Filo Corp. (TSX: FIL) have agreed to the terms of a Plan of Arrangement resulting in the combination of the two companies. Each share of Filo Corp. will be exchanged for 2.3578 shares of Lundin Mining or C$33.00 cash subject to proration of a max cash of C$2,767 million and maximum share consideration of 92.1 million Lundin Mining shares.
In expectation of the arrangement closing, Filo Corp. will be removed from the S&P/TSX Composite Index prior to the open of trading on January 15, 2025 . The shares outstanding of Lundin Mining will be increased at the same time to reflect the issuance of shares.
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Copper was trading on the COMEX at under US$4 per pound at the beginning of 2024, but by May 21, the red metal's price had surged to a record high of US$5.11 per pound.
Price momentum at the start of the year was owed to several factors, including increasing demand from energy transition sectors, bottlenecks at Chinese refiners and near-zero copper treatment charges.
The price was volatile through the second and third quarters, slipping back below US$4 per pound before soaring above US$4.50 at the end of Q3. Read on for more on how copper performed in 2024, from prices to supply and demand.
Copper price in Q4
Copper started the fourth quarter of the year on a strong note. On October 2, the metal reached its quarterly high of US$4.60 before starting a month-long slide to US$4.31 on October 31.
Volatility was the story at the start of November. Copper soared to US$4.45 on November 5 before dropping to US$4.22 on November 6, then spiked to US$4.41 on November 7; finally, it crashed to US$4.05 on November 15.
While copper did see a couple of rallies as the year ended, it only briefly broke through resistance of US$4.20 from December 9 to 11 before settling toward the US$4 mark at the end of the month.
As of December 23, the copper price was sitting at US$4.02.
Copper concentrate market to stay tight
In an October report, Fastmarkets predicts that the concentrate market will remain tight in 2025.
This tightness will continue to impact refiner treatment charges. Though they are expected to rebound to around US$20 to US$30 per metric ton (MT), they will still be short of the US$80 mark reached in 2023.
The situation has become more challenging as new operations, particularly in China, expand capacity in 2024. Fastmarkets anticipates no change in the situation in 2025, as new smelters are set to come online in China, Indonesia and India. The additional capacity will see more refiners fighting for the available supply.
The research firm says several other factors are contributing to copper concentrate shortages, including the loss of material from First Quantum Minerals' (TSX:FM,NYSE:FM) Cobre Panama mine after it was ordered shut down in November 2023. Other miners that have cut their production forecasts are also adding to supply woes.
For example, Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK) revised its copper production guidance when it released its third quarter results on October 23. In its release, Teck indicates that the updated range now stands at 420,000 to 455,000 MT, down from the 435,000 to 500,000 MT estimated at the start of the year.
The company said the reduction was due to challenges with labor availability and problems with autonomous systems in its new haul trucks at its Highland Valley mine in BC, Canada.
China’s economy dragging on copper
A significant headwind for copper at the end of 2024 has been the continued challenges posed by China’s faltering economy. Although the country has introduced stimulus measures, they have made little difference.
The most recent stimulus announcement came on December 24, when the Chinese government announced it would issue US$411 billion worth of special treasury bonds in 2025. This package would be the highest on record, and would represent an increase over the US$137 billion issued in the past year.
The move follows President Xi Jinping’s keynote address at the country’s annual economic policy meeting on December 11 and 12. Xi said at the time that the economy was stable, and that the government would be working to boost consumption through looser monetary policy and more active fiscal policy. Few details were given on how the country would achieve its goals, and the US$411 billion debt injection could be the first sign of that policy.
In addition, in September, the Chinese government announced measures to increase credit, support cities in purchasing unsold homes and restructure debt. These efforts have failed to turn around the world’s second largest economy.
China is the world’s largest copper consumer, and any shift in the strength of the nation's economy will have implications for the price trajectory of base metal.
Copper supply was in focus in Q1 as First Quantum provided an update on its Cobre Panama mine.
The mine was forced to close at the end of 2023 after the Panamanian Supreme Court walked back a company-friendly deal initially approved in October 2023.
At the beginning of 2024, First Quantum pursued several avenues to resolve the issue and reopen the mine, including arbitration. It also waited for the results of Panama’s May election in hopes of more mining-friendly leadership.
The second quarter was dominated by news of output curtailments at Chinese smelting operations.
The cuts came as lower production levels from copper miners began to stress treatment charges at refiners as they competed for the limited availability of copper concentrate.
Speaking to the Investing News Network at the time, Joe Mazumdar, editor of Exploration Insights, said that 50 percent of the world’s smelting capacity is in China. For that reason, the end price is dictated by treatment and refining charges, which nearly turned negative due to the lack of available concentrate.
In turn, this pushed the price of copper prices higher at major exchanges.
“So there’s the cathode price. That’s stated in the LME, and Shanghai and the COMEX in the states. But if the market is tight in any of those regions locally, you will see a cathode premium … over the price of the copper,” he said. “People are willing to pay more to incentivize people that have copper inventory to release it into the market."
Copper supply and demand both saw growth during Q3.
The International Copper Study Group reported in an October 21 release that mined production of copper had increased by 2 percent year-on-year to 14.86 million MT during the first eight months of 2024.
Much was owed to 3 percent growth from Chile, with increases at BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) Escondida mine, as well as the Collahausi mine, which is a joint venture between Anglo American (LSE:AAL,OTCQX:AAUKF), Glencore (LSE:GLEN,OTC Pink:GLCNF) and Mitsui (OTC Pink:MITSF,TSE:8031).
Output from the Democratic Republic of Congo increased 11 percent, while Indonesia's production rose 22 percent.
At the same time, demand increased slightly by 2.5 percent. Much of the additional demand came from 2.7 percent growth in Asian markets, which includes a 0.5 percent increase in Chinese refined copper imports.
Investor takeaway
The copper market has been tight all year, with new demand accelerating beyond new mine supply.
This demand growth is expected to continue as the world transitions from fossil fuels to renewable technologies that require more copper, like wind and solar. However, copper demand is still constrained by weakness in the Chinese economy, particularly in its housing sector, which is an important driver of global demand for the metal.
Ultimately, in the longer term, copper supply will be lacking from new projects and expanded production to meet demand. The base metal is expected enter a supply deficit over the next few years.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Copper Price Forecast: Top Trends for Copper in 2025
Copper prices saw impressive gains in 2024, even breaking the US$5 per pound mark in May. However, the red metal's gains didn't last, and by the end of the year copper had retreated back to the US$4 range.
The start of 2025 could be eventful, with Donald Trump returning to the Oval Office, a new stimulus package coming into effect in China and a continued push for greener technologies around the world.
What will these factors mean for copper prices in the new year? Will they rise, or can investors expect the base metal to remain rangebound? Here's a look at what experts see coming for the important commodity.0
How will Trump's presidency impact US copper projects?
Trump will be sworn in for his second term as US president on January 20.
During his campaign, he made bold promises that could shake up the American resource sector, pushing a "drill, baby, drill" mantra and committing to increasing oil production in the country.
When it comes to copper, Trump's proposed changes to environmental regulations could have key implications. While the Biden administration has sought to toughen these rules, Trump will look to relax them.
In an email to the Investing News Network (INN), Eleni Joannides, Wood Mackenzie's research director for copper, said changes to environmental regulations are likely to benefit the mining sector overall.
“The former president has already pledged to overturn a 20 year moratorium on mining in Northern Minnesota. This pro-mining approach means more mines could be permitted and put into production,” she said.
One project that was being planned before the Biden administration restricted access to federal lands in the Superior National Forest belongs to Twin Metals Minnesota, a subsidiary of Antofagasta (LSE:ANTO,OTC Pink:ANFGF). The company has been working to advance its underground copper, nickel, cobalt and platinum-metals group project since 2006, and has submitted plans to state and federal regulatory agencies.
Another copper-focused project that may benefit from the incoming Trump administration is Northern Dynasty Minerals' (TSX:NDM,NYSEAMERICAN:NAK) controversial Pebble project in Alaska.
The company has been exploring the Bristol Bay region since acquiring the property in 2001, but the US Army Corps of Engineers denied approval in 2020; the Environmental Protection Agency did the same in 2021.
Northern Dynasty has been fighting these decisions at both the state and federal level. It reached the Supreme Court in January 2024, but was denied a hearing until the dispute is examined at the state level.
On December 20, Alaska Governor Mike Dunleavy added his support for the project when he petitioned the incoming president to issue an Alaska-specific executive order on his first day in office. The order would effectively reverse decisions made by the Biden administration, including the permitting of the Pebble project.
In addition to Pebble, projects like Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) Resolution, and Hudbay Minerals' (TSX:HBM,NYSE:HBM) Copper World, both of which are in Arizona, may benefit from Trump’s plan to reduce permitting times on projects worth over US$1 billion.
Currently, large-scale operations like these can take up to 20 years to move from exploration to production in the US. Copper is considered a critical mineral for the energy transition, and is increasingly becoming a security concern as the US is largely dependent on China for its supply of copper.
Copper price volatility expected under Trump tariff turmoil
As tensions continue to grow between the west and eastern nations like China and Russia, it may not take much to threaten markets for critical materials, including copper.
Trump has already promised to impose a 60 percent tariff on all goods coming from China.
A tariff on copper imports could upend the president-elect's plans for the resource sector. It would increase the prices of copper imports and disrupt the overall economy.
“The risk is that the president-elect’s threatened tariffs, including 60 percent on China and 20 percent on all other nations, could derail global economic growth, lead to higher inflation and, with that, tighten monetary policy and also lead to a change in trade flows. Copper will suffer if demand takes a hit," Joannides said.
"In addition, there is likely to be continued volatility in prices,” she added.
In its recent analysis of Trump’s policies, ING sees an overall negative impact on global metals demand.
The firm believes that many of his plans, including tariffs, will cause the US Federal Reserve take a longer-term approach to reducing interest rates, which could affect investment in large-scale copper projects.
S&P Global expressed a similar view after Trump's win. Immediately after the election, copper prices sank 4 percent to fall under US$4.30, with the firm suggesting that is likely just the beginning. The organization notes that while the market may have already priced in Trump’s tariffs, a larger trade war could impact prices even further.
Economic recovery in China could further boost copper prices
China's faltering economy has been a major headwind for copper over the past several years.
The country's housing market accounts for roughly 30 percent of global demand for the red metal, meaning that any shifts could have significant implications for the copper market.
The sector has been struggling for the past few years as the country deals with economic issues, including fallout from the COVID-19 pandemic, which caused disruptions to supply chains and a spike in unemployment.
Ultimately, economic factors struck China's real estate sector, an important driver of the country’s gross domestic product; this caused the collapse of the nation's top two developers, China Evergrande Group and Country Garden.
So far, the government’s attempts to stimulate the economy and jumpstart the beleaguered real estate sector have largely failed. In September, it announced measures aimed at property buyers, such as reducing interest rates for existing mortgages by 50 points and cutting the minimum downpayment requirement for homes to 15 percent.
Other changes introduced at the time include more help from the People’s Bank of China, which will provide a lending facility for state-owned firms to acquire unsold flats for affordable housing.
China followed this up with an announcement in November that it will provide additional support for local governments by increasing their debt-raising capacity by 6 trillion yuan over the next six years.
While these measures may not be felt for some time, kickstarting the Asian nation's real estate sector could be a boon for copper producers and investors.
“If the Chinese real estate market were to post a recovery, this would see domestic demand for copper tick higher and could lead to a tighter supply and demand balance overall, assuming all other things remain unchanged. This would underpin even higher prices than we are currently projecting,” said Joannides.
Copper industry needs more investment dollars
With copper demand projected to grow long term, supply-side concerns are rising. According to Joannides, there is already recognition that copper exploration has been underinvested over the past few years.
“We are seeing signs this could change. Much of the growth over the last five years has come from brownfield expansions rather than greenfield/new discoveries," she explained to INN.
"Technology will likely help increase the chance of discovery, and broadly I would say that policymakers are now more supportive of mineral exploration as the push to secure critical raw materials supply has moved up the agenda."
Joannides pointed to greenfield projects already in the pipeline, including Capstone Copper’s (TSX:CS,OTC Pink:CSCCF) Santo Domingo in Chile, Southern Copper’s (NYSE:SCCO) Tia Maria in Peru and Teck Resources' (TSX:TECK.A,TECK.B,NYSE:TECK) Zarfanal in Peru.
There's also Northmet, a Teck and Glencore (LSE:GLEN,OTC Pink:GLCNF) joint venture in Minnesota.
Rising copper prices could also increase the flow of money from the major companies into the junior space, where most of the exploration is currently occurring.
“Copper has become the standout strategic preference for the major mining companies. The risk-adjusted cost of developing organic copper assets is higher than the cost of acquiring them,” Joannides said.
This kind of acquisition activity could help reduce the development time of assets compared to companies starting exploration from scratch.
Investor takeaway
While copper supply and demand conditions are expected to remain tight in 2025, competing forces are at play.
One of the biggest factors is Trump’s return to the White House. If the president-elect takes action as quickly as he has promised, investors could soon gain insight on the long-term implications of his policies.
In terms of China, it will take time to get the property sector back to where it was before the pandemic; however, there may be sparks early in the year as new measures start to work their way through the market.
During 2025 it may be even more prudent than usual for investors to do their due diligence on copper and keep an eye on the forces that may affect the market.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold shares of Northern Dynasty Minerals.
Editorial Disclosure: Dore Copper is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lobo Tiggre: Copper is My Highest-Confidence Trade for 2025 — Here's Why
Lobo Tiggre, CEO of IndependentSpeculator.com, gave the Investing News Network his updated thoughts on the US economy, as well as his outlook for gold, silver and uranium in 2025.
However, he said his highest-confidence trade for next year is copper.
"I think that it's easier to see — and highly likely to see — copper moving higher next year," Tiggre explained.
That said, he's not quite ready to pull the trigger on copper stock purchases.
"I'm not rushing out to buy yet, because I think even in the little time we have left this year we're going to see more bad economic news, and Dr. Copper with a PhD in economics always goes down with that sort of news. So I'm looking to that as a buying opportunity — I'm looking to maximize my upside by taking advantage of that."
Watch the interview above for more from Tiggre on copper, plus gold, silver and uranium. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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Gianni Kovacevic: 3 Copper Stocks for Speculators, Watch These Metals Under Trump
Investor and author Gianni Kovacevic shared his thoughts on copper market dynamics, saying that while the long-term trend is up, speculators can create significant shorter-term prices moves.
He also mentioned three copper companies he's interested in right now: CopperNico Metals (TSX:COPR,OTCQB:CPPMF), Entree Resources (TSX:ETG,OTCQB:ERLFF) and Horizon Copper (TSXV:HCU,OTCQX:HNCUF).
In addition to copper, Kovacevic spoke about the growing opportunity he sees in lithium, highlighting how major miners like Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) are increasing their exposure to this important battery metal.
"We are going to have a supply shortage. Not in the distant future — in the next 18 to 36 months it'll be a front-page story, and it will be dovetailed with ... oil and gas. And with that comes the oil and gas investor," he said.
Explaining his view, Kovacevic said oil and gas companies are becoming interested in direct lithium extraction.
"(The oil and gas investors) are the ones that are going to really take the speculation in lithium to the next level once again. It'll be 'lithium mania 3.0' coming to a screen near you," he told the Investing News Network.
Watch the interview above for more from Kovacevic on copper and lithium, as well as Donald Trump's second term.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Mining giant BHP (ASX:BHP,NYSE:BHP,LSE:BHP) introduced its Xplor 2025 cohort on Monday (January 6), choosing eight out of hundreds of applicants worldwide.
Under Xplor 2025’s terms, each of the companies is entitled to receive an equity-free grant of up to US$500,000 and access to a network of BHP and external industry experts to build out and accelerate their exploration concepts.
The selected companies and the countries they focus on are as follows:
“As the energy transition gathers pace it becomes more urgent that we can identify, develop and commercialize the discoveries required to support the transition,” BHP’s Group Exploration Officer Tim O’Connor said. “The 2025 Xplor cohort are the sorts of explorers that naturally embrace innovation in bringing promising new projects to life.”
BHP opened applications for the 2025 Xplor program last September, once again “seeking visionary teams focused on uncovering new sources of critical minerals crucial for a sustainable future.”
The eight successful applicants are focused on critical metals needed for electrification, with many targeting copper.
Now in its third edition, Xplor helps accelerate the work of promising mineral companies.
The program is often set on a six-month period, with each of the companies collaborating with BHP Xplor to expedite their geological concepts and position the projects for potential further investment and partnership with BHP.
“We were delighted with the strength of applications — the quality of exploration projects was extremely high … Successful applicants demonstrated strong leadership, a commitment to innovation in their exploration programs, and a willingness to push industry boundaries in applying new concepts, data and testing techniques,” BHP Xplor Head Marley Palin said.
According to BHP, this edition holds the most geographically diverse cohort yet. Xplor 2024 had teams focused on Botswana, Australia and Kazakhstan, while Xplor 2023 included companies working in Africa, Australia, Canada, Mongolia, Norway and Finland.
Xplor 2025 also has the highest number of successful applicants at eight; Xplor 2023 included seven companies and 2024 had six.
This month, the 2025 cohort is set to gather in Perth for Bootcamp Week. BHP said the bootcamp will teach them key strategy, operational and technical frameworks that will set them up for success over the next six months.
Filo Corp. (TSX: FIL) (Nasdaq First North Growth Market: FIL) (OTCQX: FLMMF) (" Filo " or the " Company ") is pleased to announce that the deadline for registered shareholders (the " Registered Shareholders ") of the issued and outstanding common shares of Filo (the " Filo Shares ") and for holders of stock options of Filo (the " Optionholders ") to make elections in respect of the consideration receivable pursuant to the Arrangement (as defined below) is 5:00 P.M. (Toronto Time) on January 9, 2025 (the " Election Deadline "). PDF Version
The letter of transmittal and election form (the " Letter of Transmittal ") outlines the necessary documentation and information required to be sent to the depositary for the Arrangement, Computershare Investor Services Inc. (the " Depositary "), by each Registered Shareholder and Optionholder in order to receive the consideration to which they are entitled under the Arrangement, and make an election with respect to the form of consideration they wish to receive. For complete instructions, please refer to the Letter of Transmittal previously mailed to Registered Shareholders and Optionholders on December 12, 2024 and also available under Filo's profile on SEDAR+ at www.sedarplus.ca and on the Company's corporate website at http://filocorp.com/investors/corporate-filings/ .
All elections and deposits made under a Letter of Transmittal are irrevocable and may not be withdrawn. However, an election made under a Letter of Transmittal on or prior to the Election Deadline may be changed by depositing a new Letter of Transmittal with the Depositary on or prior to the Election Deadline. Should the Arrangement not proceed for any reason, the deposited certificates and/or DRS advices representing Filo Shares (if applicable) and other relevant documents shall be returned.
The Letter of Transmittal is for use by Registered Shareholders and Optionholders only. Beneficial (nonregistered) shareholders whose Filo Shares are registered in the name of a broker, investment bank, bank, trust company, custodian, nominee or other intermediary (each, an " Intermediary ") should contact that Intermediary for instructions and assistance in making an election.
Shareholders who hold Filo Shares directly or indirectly through the central securities depository in Sweden run by Euroclear Sweden AB (" Euroclear Holders ") do not need to submit a Letter of Transmittal. For complete instructions for Euroclear Holders, please refer to the press release of the Company dated December 11, 2024 .
Filo is also pleased to announce that it has obtained all key regulatory approvals required to complete the previously announced arrangement involving, among others, the Company, BHP Investments Canada Inc. (" BHP "), a wholly-owned subsidiary of BHP Group Limited, and Lundin Mining Corporation (TSX: LUN) (OMX: LUMI) (" Lundin Mining ", and together with BHP, the " Purchaser Parties "), pursuant to which the Purchaser Parties will, among other things, acquire all of the Filo Shares not already owned by the Purchaser Parties and their respective affiliates (the " Arrangement ").
Subject to the satisfaction or waiver of the remaining conditions to implementing the Arrangement, it is expected that the Arrangement will close on or about January 15, 2025 .
Following completion of the Arrangement, the Filo Shares will be delisted from the Toronto Stock Exchange and the Nasdaq First North Growth Market. An application will also be made for the Company to cease to be a reporting issuer in the applicable jurisdictions following completion of the Arrangement.
About Filo Corp.
Filo is a Canadian exploration and development company focused on advancing its 100% owned Filo del Sol copper-gold-silver deposit located in San Juan Province, Argentina and adjacent Region III, Chile . The Company's shares are listed on the Toronto Stock Exchange and Nasdaq First North Growth Market under the trading symbol "FIL", and on the OTCQX under the symbol "FLMMF".
Additional Information
The Company's certified adviser on the Nasdaq First North Growth Market is Bergs Securities AB, +46 8 506 51703, rutger.ahlerup@bergssecurities.se .
The information contained in this news release was accurate at the time of dissemination, but may be superseded by subsequent news release(s).
The information was submitted for publication by the contact persons below on January 6, 2025 at 1:00 am EST .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This press release may contain certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking information") within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, the consummation and timing of the Arrangement; the satisfaction of the conditions precedent to the Arrangement; the expected timing of closing of the Arrangement; and the expected timing of delisting from stock exchanges, may be forward-looking information. Forward-looking information is frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved.
Forward-looking information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from the Company's expectations include failure to satisfy or waive the closing conditions to the Arrangement; changes in laws, regulations and government practices; government regulation of mining operations; environmental risks; and other risks and uncertainties disclosed in the Company's periodic filings with Canadian securities regulators and in other Company reports and documents filed with applicable securities regulatory authorities from time to time, including the Company's Annual Information Form available under the Company's profile at www.sedarplus.ca . The Company's forward-looking information reflects the beliefs, opinions, and projections on the date the statements are made. The Company assumes no obligation to update the forward-looking information or beliefs, opinions, projections, or other factors, should they change, except as required by law.
Cygnus Metals and Doré Copper Mining said on Wednesday (January 1) that they have completed their merger.
The combined entity will be a critical minerals explorer and developer with two core assets in Québec, Canada.
Cygnus acquired all of the issued and outstanding common shares of Doré on Tuesday (December 31) through a Canadian statutory plan of arrangement, finalizing the deal. Cygnus shares are listed on the ASX under the symbol CY5, and are expected to start trading on the TSXV under the symbol CYG on or about Friday (January 3).
The company has also applied to list on the OTCQB under the ticker symbol CYGGF.
The merger of equals between Cygnus and Doré was announced this past October, with the companies emphasizing at the time that the deal would create value for shareholders on both sides. Under the agreement, each former Doré shareholder will receive 1.8297 Cygnus shares for each share they held before the transaction was finalised.
"By combining the proven exploration and management skills of the Cygnus team with the high-grade resource and immense upside at the Chibougamau Copper-Gold Project, we have the potential to unlock substantial value," Cygnus Executive Chair David Southam said at the time, adding that plans for "aggressive exploration" were in the works.
The new company's two main assets are the Chibougamau copper-gold project and the James Bay lithium project.
Chibougamau currently has a measured and indicated resource of 3.6 million metric tons at 3 percent copper equivalent, and an inferred resource of 7.2 million metric tons at 3.8 percent copper equivalent.
James Bay's Pontax project holds a resource of 10.1 million metric tons at 1.04 percent lithium oxide.
Doré brought the Chibougamau asset to the table, and in Wednesday's release former President and CEO Ernest Mast said the Cygnus team has the ability to maximize the value of the project.
“This merger will provide the funding, additional expertise and the strategy aimed at generating superior shareholder returns with an exciting exploration program at Chibougamau,” he noted.
Southam will now act as executive chair of the new company, while Mast will hold the position of president and managing director in Canada. The board will also have two non-executive directors from each of the merged companies.
Cygnus said that results from a pre-Christmas drill program at Chibougamau are expected to be released early this quarter. Following on from that, the company will begin a drilling and geophysics program at the site.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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