Jim's Oil & Mining Letter - August 17, 2025

Don't miss out on this modern-day gold rush - a 108 grams per tonne gold assay* has just been recorded

This company holds 29,000 hectares (over 71,000 acres) in the heart of a modern-day gold rush. Exploration targets have already been identified as a result of locals' artisanal mining (a recent 108 grams per tonne gold* assay has been recorded) and funds have just been raised for an initial 10,000 metre (over 32,000 feet) drill program seeking to unlock the potential for a multi-million ounce gold deposit.

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* 1 gram per tonne is broadly regarded as being commercial

Interesting news last week:

New Stratus Energy (NSE.V RDRIF) announced the submission of a formal application to operate and invest in the further development of Block 192 in Peru. Following the submission of the application, NSE will wait for the final decision from a process being run by the Government of Peru. The technical team at NSE operated Block 192 at a previous company from 2015 to 2021 at which point the block was returned to the Government of Peru following a declaration of "force majeure". Production peaked at over 15,000 barrels of oil equivalent per day of 18° API oil under the guidance of the technical team during that period, and in 2019 Perupetro estimated proved plus probable reserves of approximately 87.14 million barrels. The block has been shut in since 2021 as the Government determines the appropriate partnership to restore production and develop the reserves in the most sustainable and economic manner possible to maximize benefits for the surrounding communities and the Republic of Peru.

Argenta Silver (AGAG.V AGAGF) reported the second batch of assay results from its ongoing 2025 winter diamond drilling program at the 100% owned El Quevar Project in Salta Province, Argentina. These results confirm the presence of multiple high-grade silver intervals within the Yaxtché Deposit, including an exceptionally high-grade intersection, with one sample returning 18,467 grams per tonne silver over 1.05 meters, surpassing the historic maximum from drill core samples at El Quevar. QVD-412 validated continuity with 1,026 grams per tonne silver over 40.00 meters, including 2,246 grams per tonne silver over 15.00 metres, which includes 4,423 grams per tonne silver over 6.00 metres, which also includes the aforementioned 18,467 grams per tonne silver over 1.05 metres. QVD-413 delivered 414 grams per tonne silver over 14.35 meters, including 795 grams per tonne silver over 3.00 metres and 466 grams per tonne silver over 4.00 metres, expanding the up-dip potential for the existing resource. Per Joaquin Marias, CEO, President and Director of Argenta Silver, from a technical standpoint, the extraordinary tenor of the Yaxtché mineralization highlights the strength and scale of the hydrothermal system that formed El Quevar. The success of the up-dip hole QVD-413, along with the project's highest-ever assay, 18,467 grams per tonne silver over 1.05 meters within a broader interval of 1,026 grams per tonne silver over 40.00 meters in QVD-412, validates and reinforces the company’s dual strategy: expanding the known resource while aggressively exploring the vast, untested areas of this high-grade system.

Noble Helium (NHE.ASX GN1.F) updated on its North Rukwa Project five-hole drilling campaign. The company now has confirmed five drilling targets for the project supported by a global peer‐review process. The campaign aims to appraise a 225.5 billion cubic feet prospective helium resource and deliver positive cash flow within 18 months. The drill targets have been selected using an upgraded helium charge model and NSAI’s recent assessment. Wells at Mbelele (to 88 metres) and Kinambo (180–600 metres) will appraise gas-phase zones, with helium concentrations measured up to 2.46 %. The campaign aims to underpin near-term monetisation, generate positive cash flow within 18 months and cost under 10 % of the maiden two-well programme.

Fortuna Mining (FVI.TSX FSM) reported high-grade results from additional exploration drilling at its Southern Arc deposit in the Diamba Sud Gold Project, Senegal, notably 22.7 grams per tonne gold over 21.6 metres. The programme comprises 152 drill holes totalling 21,234 metres, with drilling set to resume in September and an updated resource estimate planned for Q1 2026. The deposit’s inferred mineral resource prior to the update is 3.9 million tonnes averaging 1.57 grams per tonne gold. Mineralisation remains open to the south, east and at depth; drilling is paused for the rainy season.

Guardian Metal Resources (GMET.L GMTLF) announced that it has expanded its Pilot North Tungsten Project in Nevada to 101 BLM claims (c. 2,086 acres) following encouraging reconnaissance assay results. Detailed geological mapping and sampling have been completed, and further ALS assay results are awaited. The company has staked 42 additional BLM lode claims at the Pilot North Tungsten Project, a 22-sample reconnaissance rock sampling programme having returned highly encouraging assays. The project now encompasses four World War II era tungsten mines within the Walker Lane Mineral Belt, about 15 kilometres northwest of the Pilot Mountain asset. A detailed follow-on geological mapping and sampling programme has been completed, with further ALS Laboratory assay results pending and final project maps to be released once assays are received.

LAST CALL: 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

Sunda Energy (SNDA.L GHA.F) provided updates on its existing business and new venture activities. Following the announcement of the postponement of drilling of the Chuditch-2 well, the company has been engaged with the Timor-Leste authorities concerning the realisation of the drilling campaign, likely to be in H1 2026, and is also engaged with a number of rig operators in preparation for a full tender exercise to enable the retimed drilling campaign. Sunda's applications for two blocks in the Sulu Sea, offshore Philippines, remain outstanding, pending final Presidential signature, however, there is an expectation that these will all be signed in the near future, as a trigger for renewed oil and gas activities in the Philippines. The company remains excited about the potential of its two application blocks and is eager to commence activities in the area. Additionally, the company is actively engaged in the pursuit of a number of new business initiatives; the target opportunities are potentially material and would be highly impactful to Sunda if secured.

Lucara Diamond (LUC.TSX LUC) reported results for the quarter ended June 30, 2025. Revenue increased to $43.7 million from $41.3 million, primarily due to the sale of a 1,094 carat diamond sold for an initial polished value of $12.0 million. The recovery of 242 Specials (defined as rough diamonds larger than 10.8 carats) equated to 9.4% by weight of the total carats recovered from direct ore feed in Q2 2025. During the quarter, the company recovered 15 stones over 100 carats, including two stones that exceeded 200 carats. Per William Lamb, President & CEO, the Karowe Diamond Mine continues to validate its world-class status with the recovery of a second diamond exceeding 2,000 carats. The continued and consistent recovery of Specials, he says, reflects not only the quality of the Karowe asset but also reflects the strength of the operational team, amid a complex and ever-changing global environment.

Union Jack Oil (UJO.L UJOGF) announced it has been informed by the operator that the Sark well, located in Central Oklahoma, has been spudded. Union Jack currently holds a 60% interest in the Sark well, 3D supported which will drill a dip and fault closed large structure of 156 acres area and 40 feet relief. Estimated recoverable resources are 1.44 million barrels of oil gross. Cost to drill, complete and develop is c. $1.1 million net; estimated success case NPV10 is c. $10.9 million net, based on a $65/barrel oil price. Additionally, there is a counter-regional fault down to the east in the Graben formed by the Wilzetta Fault with structural closure at Arbuckle level with further upside potential of 1.5 million barrels of oil gross. Hunton and 2nd Wilcox formations are the objective targets with total depth estimated at 5,500 feet. Secondary targets productive in the immediate area include the Prue Sands, Red Fork and Base Pennsylvanian Sands. Chance of success of finding movable hydrocarbons is 65%.

Tudor Gold (TUD.V H56.F) reported that it has filed a notice of work permit application with the BC Ministry of Energy, Mines and Low Carbon Innovation for the underground exploration of the Treaty Creek Project located in northwest British Columbia. The permit application provides for the development of an underground ramp to access the high-grade gold SC-1 Zone and to also access the other zones. Once the ramp is completed, underground drill stations will be excavated to support definition drilling for mine-planning purposes and provide for more efficient expansion drilling. Underground drilling is expected to reduce the time and cost of delineating the high-grade gold SC-1 Zone and allow for year-round drilling by Tudor. The high-grade gold SC-1 Zone was first identified by Tudor in early 2024 based on 2022 and 2023 drilling with the discovery hole (GS-22-134) intersecting 25.5 meters grading 9.66 grams per tonne gold, 1.23 grams per tonne silver and 0.24% copper. The Treaty Creek Project hosts an indicated mineral resource of 21.66 million ounces of gold grading 0.92 grams per tonne, 2.87 billion pounds of copper grading 0.18% and 128.73 million ounces of silver grading 5.48 grams per tonne, plus an inferred mineral resource of 4.88 million ounces of gold grading 1.01 grams per tonne, 503.2 million pounds of copper grading 0.15% and 28.97 million ounces of silver grading 6.02 grams per tonne.

Finally, First Majestic Silver (AG.TSX AG) announced results for the second quarter ended June 30, 2025. The company produced 7.9 million silver equivalent ounces, including 3.7 million silver ounces, representing a 48% increase compared to 5.3 million silver equivalent ounces produced in Q2 2024. For a second consecutive quarter, the company achieved a quarterly revenue record: $264.2 million (54% from silver sales), representing a 94% increase compared to the second quarter of 2024. Quarterly mine operating earnings were $49.4 million, representing a significant increase compared to $15.5 million in Q2 2024. EBITDA for the quarter was a record $119.9 million, representing a significant increase compared to $21.2 million in the second quarter of 2024. Net earnings for the quarter were $56.6 million, compared to a net loss of $48.3 million in the second quarter of 2024. During the quarter, the company increased its treasury position to a record total of $510.1 million and liquidity reached a record $583.8 million.

The timing couldn't be better

• Surrounded by multi million dollar gold & copper mining ventures, this company's early exploration program with ground samples is showing high gold grades up to 48g/t Au

• As an early-stage private gold & copper exploration company, it's valued at only ~C$1 million

• A public listing and successful drilling program could drive this to multiples of its current value, as evidenced by the company's neighboring mining peers

• Currently in talks with various shell vehicles in Canada, the nature of being a private company poised for a public listing gives the potential for a significant re-rating

• Offer closes August 29, 2025

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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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