Jim's Oil & Mining Letter - August 10, 2025

Own a share of your own critical minerals company

• Tungsten mine and fully built mill in a proactive and stable mining jurisdiction

• Phase 1 production target of 1,000 tonnes of concentrate per annum, ramping to 4,000 tonnes/year within 2–3 years

• Publicly listed tungsten peer near this company's mine reached a C$1.1 billion valuation with a 2,300 tonnes/year target

• Company is currently raising C$3 million, with a post-money valuation of just C$42 million

• Listing in Canada with a target date of Q1 2026

• Offering closing date: August 22, 2025

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Interesting news last week:

The Metals Company (TMC) released Monday a technical report summary of the pre-feasibility study for its proposed NORI-D polymetallic nodule project in the Clarion Clipperton Zone of the Pacific Ocean. The report marks a world-first declaration of probable mineral reserves for deep-sea polymetallic nodules. TMC, which has exclusive access to the Nori Clarion Clipperton Zone, in March formally initiated a process under the US Department of Commerce to apply for exploration licenses and permits to extract minerals from the ocean floor. Alongside the pre-feasibility study, TMC announced the publication of an initial assessment for the remainder of its resource in the NORI and TOML blocks in the Clarion Clipperton Zone, with a measured and indicated mineral resource of 73 million tonnes grading 1.30% nickel, 0.20% cobalt, 1.2% copper and 30.2% manganese with an abundance of 12.8 kilograms per square metre, and an inferred mineral resource of 1.2 billion tonnes grading 1.30% nickel, 0.20% cobalt, 1.1% copper and 28.7% manganese with an abundance of 11.6 kilograms per square metre. The resource supports an after-tax net present value of $18.1 billion and internal rate of return of 35.6%. First production is targeted for the fourth quarter of 2027.

NexGold Mining (NEXG.V NXGCF) released assay results for 12 infill diamond drill holes totalling 2,163 metres within a 26,854 metre programme at the Goldboro Open Pit Gold Project. Highlighted high-grade intercepts in the proposed east pit include 23.73 grams per tonne gold over 5.3 metres (including 244 grams per tonne gold over 0.5 metres) and 24.65 grams per tonne gold over 2.2 metres (including 104.5 grams per tonne gold over 0.5 metres). Assay results for 130 drill holes (approximately 92%) confirm mineralisation consistent with the existing geological model and reveal new zones near surface. These findings will be incorporated into an updated mineral resource estimate planned for H2 2025 to improve resource classification and mine planning.

Sandstorm Gold (SAND SSL.TSX) posted record Q2 2025 revenue of $51.4 million and cash operating margin of $2,981 per attributable gold equivalent ounce. Net income increased to $16.9 million, with operating cash flows (excluding changes in non-cash working capital) of $37.7 million. Attributable production was 15,098 gold equivalent ounces in the quarter. The company entered into a definitive agreement to be acquired by Royal Gold in an all-share transaction valued at ~$3.5 billion, expected to close in Q4 2025.

Centerra Gold (CG.TSX CGAU) announced a technical study for its Goldfield Project in Nevada confirming an after-tax NPV5 of $245 million and an IRR of 30% at a long-term gold price of $2,500/ounce, including hedges on part of 2029–2030 production. The company will commence detailed engineering and early procurement with an estimated $252 million initial capital investment funded from existing liquidity, aiming for first production by end-2028. Goldfield, a conventional open-pit heap-leach project in Nevada, offers a seven-year mine life with peak annual output of approximately 100,000 ounces of gold at an all-in sustaining cost of about $1,392 per ounce. A targeted hedging strategy covers 50% of production in 2029–2030 at floor prices of US$3,200/ounce and caps up to US$4,705/ounce, while optimised crushing boosts recoveries to around 76%. Centera generated $98.4 million of operating cash flow before working capital and taxes and reported net earnings of $68.6 million in Q2 2025, with production of 63,311 ounces of gold and 12.4 million pounds of copper.

Guardian Metal Resources (GMET.L GMTLF) has released the final batch of assay results from Desert Scheelite drilling at its 100%-owned Pilot Mountain project in Nevada, confirming broad zones of high-grade tungsten, copper, silver and zinc. Laboratory assay results from the final batch of holes PM25-041 to PM25-052 at the Desert Scheelite zone confirm broad high-grade tungsten mineralisation, with intervals up to 45.7 metres at 0.24% tungsten and individual assays up to 1.09% tungsten, 9.98% zinc, 337 grams per tonne silver and 1.3% copper. A total of 82 drillholes have been completed at Pilot Mountain – including 61 at Desert Scheelite, 20 at the Garnet Zone and one at Porphyry South – supporting resource definition. Initial assay results from inaugural Garnet Zone drilling are expected imminently and Guardian Metal plans to mobilise multiple rigs for drilling at its Tempiute tungsten project in the coming weeks, signalling an active period of exploration and news flow.

Excellon Resources (EXN.V EXNRF) announced that it is advancing rehabilitation work at the fully permitted Mallay silver mine in Peru, targeting a restart of its 600 tonnes per day mill to resume operations and reach nameplate capacity by Q2 2026. An updated NI 43-101 resource estimate is due by end August to support detailed scheduling and restart planning, alongside in-mine exploration of the Isguiz and Shafra zones to expand the mineral resource base for sustained mill feed. Rehabilitation of the 4150 and 4090 levels is progressing at 70–80 metres per day, on track for completion in the next three to four months.

New Stratus Energy (NSE.V RDRIF) announced that it has signed a farm-in memorandum of understanding with Vultur Oil to acquire an initial 15% working interest (rising to 32.5%) in two onshore concession contracts (REC-T-107 and REC-T-108) in the Reconcavo Basin, Bahia, Brazil. Upon signing definitive agreements and ANP approvals, the company will fund $5 million for horizontal re-entry or step-out wells, followed by $5 million for drilling new lateral wells to earn the full working interest. The blocks are adjacent to Petrobras’ Araças field and have shown promising results, with the GREN well long-term testing up to 100,000 barrels of 36° API oil. At a 15% interest, New Stratus’s gross proved reserves are estimated at 1.42 million barrels of oil equivalent with a NPV10 of $15.2 million and for proved plus probable at 2.30 million barrels of oil equivalent with a NPV10 of $24.0 million, increasing to 3.07 million and 4.98 million barrels of oil equivalent respectively at a 32.5% interest.

Fortuna Mining (FVI.TSX FSM) reported an updated mineral resource estimate as of July 7, 2025, for the Diamba Sud Gold Project located in Senegal. Indicated mineral resources are 724,000 gold ounces, representing a 53 percent increase since year-end 2024; inferred mineral resources are 285,000 gold ounces, reflecting a 93 percent increase since year-end 2024. A preliminary economic analysis is underway, with completion targeted for the fourth quarter of 2025. Exploration drilling at Southern Arc continues, focusing on infilling drilling to upgrade inferred resources and expansion drilling where mineralization remains open at shallow depths to the south and east of the defined deposit limits.

Larvotto Resources (LRV.ASX K6X.F) has reached a final investment decision for its Hillgrove Antimony-Gold Project after securing $105 million debt and A$60 million equity, fully funding development. The definitive feasibility study outlines an 8-year mine life with average annual production of 80,400 ounces gold equivalent, a post-tax NPV8 of A$694 million and an IRR of 102%, with payback in 11 months. Hillgrove will commence construction immediately and target first ore by Q2 2026, progressing to concurrent antimony and gold production. The project is expected to supply around 7% of global antimony demand, underpinned by a 636,000 ounce gold equivalent ore reserve at 6.6 grams per tonne gold equivalent and a 1.7 million ounce gold equivalent resource.

Polymetals (POL.ASX ) has successfully recommenced production at its Endeavor Silver Zinc Mine and achieved operating cashflow. The company’s initial ten-year mine plan prioritises early silver-led EBITDA while exploration programmes seek to extend mine life and discover new deposits. The Endeavor mine, acquired in August 2024, secured project finance in September; redevelopment and commissioning led to mining and processing from May 2025. The initial ten-year mine plan is targeting early silver cashflow with 5 million ounces of silver, A$250 million EBITDA in the first two years, a pre-tax NPV of A$414 million and a 14-month payback.

FireFly Metals (FFM.ASX FFM.TSX) announced it has obtained environmental clearance for its processing plant and started construction permitting at the Green Bay Copper-Gold Project, Canada, while metallurgical testing on bulk samples delivered exceptional recoveries of over 98% for copper and 85% for gold via conventional low-cost processing. Economic and technical studies – including mine design, scheduling, tailings and power analyses – are advancing, with a Scoping Study due in Q1 2026. An eight-rig drilling programme is ongoing to expand and upgrade the Ming Mine Mineral Resource ahead of feasibility studies.

Orosur Mining (OMI.V OMI.L) announced an update on the progress of exploration activities at the company's 100% owned Anzá Gold Project in Colombia. Orosur took the formal decision to commence infill drilling at its Pepas gold prospect, with the target of moving Pepas to a NI43-101 compliant mineral resource estimate by the end of the year. The first several holes of this program vindicated this decision by returning exceptional widths and grades, especially hole PEP045 which returned 62.3 metres at 12.76 grams per tonne gold. Latest drilling results announced last week support the program returning 104 metres at 6.61 grams per tonne gold from surface in hole PEP047, with PEP048 yielding 32.3 metres at 3.65 grams per tonne gold and PEP049 94.2 metres at 3.74 grams per tonne gold.

Don't miss out on this modern-day gold rush

• Exploration targets already identified as a result of locals' artisanal mining

• 108 grams per tonne gold assay recorded in May 2025

• Locals extracting gold from saprolite along a 4.5-kilometer trend

• Funds raised for a 10,000 metre drill program seeking to unlock the potential for a multi-million ounce gold deposit

• Positioned in the heart of the Guiana Shield, home to +80 million ounces of gold resources

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These are opinions only of the individual author. The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company. All content is purely subjective and you should do your own due diligence. No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made. Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved. No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece. The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.

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