Top 5 Canadian Mining Stocks This Week: Black Iron Up 78 Percent on Offtake Deal

Weekly gain: 77.78 percent
Market cap: C$24.33 million
Share price: C$0.08

Black Iron is an iron development and exploration company focused on advancing its Shymanivske project in Southeastern Ukraine.

The mineral resource estimate in the 2020 preliminary economic assessment for the project included measured and indicated resources grading 18.8 percent magnetic iron and 31.6 percent total iron from 645.8 million metric tons of ore, with additional inferred resources of 18.4 percent magnetic iron and 30.1 percent total iron from 188.3 million metric tons.

The report suggested that the project's development would have an after-tax net present value at 10 percent of US$1.44 billion, with an internal rate of return of 34.4 percent and a payback period of 3.33 years.

Shares in Black Iron saw gains this past week after it announced on Thursday that it had signed binding royalty and offtake agreements with Anglo American (LSE:AAL,OTCQX:AAUKF). Anglo American will invest US$4 million in return for a 1 to 1.5 percent royalty, dependent on the price of iron, as well as offtake rights to whichever is higher: 60 percent of Phase 1 production or 2.4 million metric tons of iron per year for the life of the mine.

Among other terms, the agreement also provides Anglo American with the opportunity to further invest at least 15 percent of the Phase 1 construction costs, which would increase its offtake rights to 100 percent of Phase 1 production or 4 million metric tons of iron per year following the end of the conflict between Russia and Ukraine.

Weekly gain: 60 percent
Market cap: C$16.28 million
Share price: C$0.04

Patagonia Gold is a precious metals production and development company primarily focused on advancing its Cap-Oeste and Calcatrau underground projects in Argentina.

Located in Santa Cruz province, Cap-Oeste hosted open-pit mining operations until 2018. While Patagonia is working on the exploration and development of the underground resource at the site, it has been able to recover gold and silver from residual leaching on site.

In the company’s management discussion and analysis, released on August 28, it reported that it had produced 889 ounces of gold and 42,363 ounces of silver from Cap-Oeste during the first six months of 2024.

According to the company’s website, a 2018 mineral resource estimate for Cap-Oeste reported measured and indicated values of 704,300 ounces of gold and 21.43 million ounces of silver from 10.56 million metric tons of ore with average grades of 2.07 grams per metric ton (g/t) gold and 63.2 g/t silver.

Acquired in a deal with Pan American Silver (NYSE:PAAS,TSX:PAAS) in 2017, the Calcatreu project is located in Argentina’s Rio Negro province and covers approximately 90,000 hectares. A 2018 mineral resource estimate for Calcatreu reported measured and indicated values of 669,000 ounces of gold and 6.28 million ounces of silver from 9.84 million metric tons of ore with average grades of 2.11 g/t gold and 19.8 g/t silver.

The company's most recent news came on Thursday when it announced it had received full and final permitting approval to advance with construction at Calcatreau. The company is working to complete studies to develop heap leach operations at the site.

Weekly gain: 54.44 percent
Market cap: C$238.14 million
Share price: C$1.39

Trilogy Metals is a polymetallic exploration and development company working to advance its Upper Kobuk mineral projects in Northern Alaska, US, which it owns in a 50/50 joint venture with South32( ASX:S32,OTC Pink:SHTLF).

Its most advanced asset is the Arctic copper, zinc, lead, gold and silver project, which is in the feasibility stage. In an updated feasibility study from February 2023, the company reported annual payable production volumes of 148.68 million pounds of copper, 172.6 million pounds of zinc, 25.75 million pounds of lead, 32,538 ounces of gold and 2.77 million ounces of silver.

After tax, the study pegged the net present value at US$1.11 billion, with an internal rate of return of 22.8 percent and a payback period of 3.1 years.

Trilogy’s other key asset is the Bornite copper-cobalt project located 25 kilometers southwest of its Arctic project. The site hosts widespread mineralization and has seen historic exploration dating back to the 1950s. A January 2023 technical report estimates inferred resources at 6.51 billion pounds of copper from 202.7 million metric tons of ore with an average grade of 1.46 percent.

Trilogy’s share price rose this past week, although the company’s most recent news was its Q3 results in October.

Weekly gain: 50 percent
Market cap: C$30.02 million
Share price: C$0.015

Jervois Global is working to advance a global portfolio of nickel and cobalt projects. It owns the Idaho Cobalt Operations in the US, at which it suspended mine construction in 2023 due to low cobalt prices.

According to Jervois, the Idaho Cobalt Operations host the largest US cobalt resource. A 2020 feasibility study shows that they have a measured and indicated resource of 50.1 million pounds of cobalt from 5.24 million MT grading 0.44 percent, with inferred values of 12 million pounds of cobalt from 1.57 million MT grading 0.35 percent.

The company announced in June 2023 that it had entered into a US$15 million agreement through the US Department of Defense’s Defense Production Act for exploration activities at its property.

In its most recent announcement from the project, released on July 31, Jervois reported that extensional drilling at the Idaho Cobalt Operations had shown positive resource growth potential, with cobalt, gold and copper mineralization at depth. In the announcement, the company provides a highlighted result of 1.1 percent cobalt, 1.18 percent gold and 0.69 g/t gold over 1.8 meters.

Shares in Jervois Global gained this past week, but the company did not release any news.

Weekly gain: 50 percent
Market cap: C$10.16 million
Share price: C$0.015

Adex Mining is maintaining its past-producing Mount Pleasant polymetallic project in Charlotte County, New Brunswick, Canada.

Mount Pleasant is composed of 102 mining claims covering 1,600 hectares., and hosts two primary zones of mineralization. According to the company’s website, the Fire Tower zone is home to deposits with indicated grades of 0.33 percent tungsten and 0.21 percent molybdenum from 13.49 million metric tons. The North Zone hosts indicated grades of 0.38 percent tin, 0.86 percent zinc, and 64 parts per million iridium.

While shares of Adex saw gains this week, the company has not released news.