Jim's Oil & Mining Letter - May 17, 2026

PILAR GOLD — PRE-IPO INVESTMENT OPPORTUNITY

•  Equity raise for the restart of a fully equipped gold mine in Brazil

•  4 million ounce gold resource and full infrastructure

•  Near-term upside for a significant value re-rating from the production start and public listing

•  Significant growth opportunities with multiple hub & spoke mines in the vicinity including high grade targets

•  C$5M private placement at C$0.30 per share closing May 29, 2026

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Interesting news last week:

Reconnaissance Energy Africa (RECO.V RECAF) and its partners are preparing to commence downhole testing at the Kavango West 1X well, targeting six optimised zones across 420 metres of hydrocarbon-bearing intervals. The production test is expected to start before the end of May and will take approximately 60 days to complete, with results anticipated by mid-to-late July 2026. Operations are being supported by global oil field service leaders SLB and Halliburton, while the company finalises integrity logs and transport permits. In addition to the current testing, the company is advancing appraisal drilling preparations, including site selection and permitting work for the Kavango discovery.

Union Jack Oil (UJO.L UJOGF) has successfully drilled the Crossroads well to its target depth, identifying four potential production intervals. The well was drilled on budget to a depth of 4,600 feet, with production casing now being run and cemented. Evaluation of electric logs identified hydrocarbon shows in four intervals, including the Middle McLish, Basal McLish, Cisco and Hoxbar Sandstones. Testing of the identified production zones is expected to begin in mid-June under the direction of the operator, Reach Oil and Gas. Union Jack Oil holds a 43% interest in the well located in Garvin County, Oklahoma.

Africa Energy (AFE.V AEC) announced first quarter 2026 financial and operating results. The company has secured an extension until 4 November 2026 for the submission of the Environmental and Social Impact Assessment for Block 11B/12B offshore South Africa. Africa Energy expects to hold a 75% direct interest in Block 11B/12B following the restructuring of Main Street 1549 and the withdrawal of certain joint venture partners. Financial results for the quarter ended 31 March 2026 report a cash position of $2.7 million and working capital of $2.4 million with no outstanding debt. Early engagement with stakeholders has commenced to secure gas offtake customers for the future development of the Brulpadda and Luiperd discoveries.

Finder Energy (FDR.ASX) is targeting a Final Investment Decision by mid-2026 for the Kuda Tasi and Jahal oil fields in Timor-Leste, with first oil production anticipated in late 2027 or early 2028. The company is acquiring the Petrojarl I FPSO for $15 million to provide a low-cost development solution and de-risk the project, with the acquisition funded through an equity raising. Finder has secured a farmin agreement with TIMOR GAP, which will fund 50% of the total development capital expenditure from the point of Final Investment Decision. The company also has established a strategic alliance with SLB and the Subsea Integration Alliance to accelerate project delivery through integrated well construction and subsea engineering services.

Pharos Energy (PHAR.L SOCLF) reported that its multi-rig drilling campaigns in Vietnam and Egypt are progressing on schedule, with year-to-date production meeting annual guidance. The company anticipates a circa 20% increase in production volumes across both regions once current drilling programmes are completed. Group working interest production for the first four months of 2026 averaged 5,561 barrels of oil equivalent per day, remaining in line with the full-year guidance of 5,200 - 6,400 barrels of oil equivalent per day. In Vietnam, five out of six offshore wells have been successfully completed on time and budget, with the final appraisal well on track for completion by mid-year. The 2026 six-well onshore drilling programme in Egypt has commenced, with the first well expected to spud imminently to drive production growth. Financial performance remains steady with year-to-date revenue of approximately $49 million and a cash balance of $31 million as of April 30, 2026.

Corcel (CRCL.L CRCL.CN) announced an operational update on KON-16. Initial seismic results from the KON-16 block in Angola have confirmed the Sirius and Canopus prospects, with a pre-salt exploration well targeted for drilling within the next 12 months. Leandro Schujmann has been appointed as Chief Financial Officer, bringing over a decade of energy finance experience in the African and Latin American markets. The company is currently engaged in active farm-down discussions with multiple potential strategic partners and is evaluating acquisition opportunities capable of delivering near-term cash flow. A refreshed corporate identity and new digital platforms have been launched, including a Retail Investor Hub to enhance direct communication with shareholders.

Noble Helium (NHE.ASX) announced the contracting of a rig for the North Rukwa drilling campaign. The company has secured BoreXpert's Schramm T130 XD rig for two confirmed exploration wells at the Kinambo site within the North Rukwa Project. The drilling campaign is scheduled to commence in early July 2026, targeting helium accumulations at depths between 430 and 1,500 metres. Costs for this campaign are expected to be significantly lower than the maiden drilling program due to increased geological knowledge and reduced technical risks. The program includes an option for two additional contingent wells pending the analysis of results from the initial exploration phase.

ADX Energy (ADX.ASX ADXRF) announced that wireline logging at the HOCH-1 well has confirmed four to six metres of net gas pay across seven intervals in the Base Hall channel formation. The exploration well reached a total measured depth of 1,685 metres, successfully penetrating the target zones and entering the Upper Puchkirchen formation. The company is now proceeding with running and cementing 4 ½ inch casing in preparation for a co-mingled production testing program. While the intra Hall Formation target was found to be gas-bearing, log analysis suggests it is unlikely to be a viable production reservoir due to low reservoir net to gross.

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Mogotes Metals (MOG.V MOGMF) announced a high-grade copper-gold-silver-molybdenum discovery at the Filo Sur project. Drillhole FS_DDH_016 returned 86 metres at 0.7% copper, 0.55 grams per tonne gold, 2.7 grams per tonne silver, and 169 parts per million molybdenum from 108 metres depth. A higher-grade sub-interval within the hole demonstrated 43 metres at 1.1% copper and 0.82 grams per tonne gold from 111 metres. The Albor target represents the second discovery made by the company during its inaugural drilling season at the flagship project in Argentina. Assays for the remaining 270 metres of the hole are expected by the end of May 2026, following the conclusion of the 6,207 metre drill programme.

Aurum Resources (AUE.ASX) has updated the Mineral Resource Estimate for its Boundiali Gold Project in Côte d'Ivoire. The update follows successful infill drilling at the BDT2 deposit and will be integrated into a Pre-Feasibility Study due for completion this quarter. Indicated Resources at the Boundiali Gold Project rose by 24% to 1.70 million ounces, following successful resource conversion drilling. The total resource for the project now stands at 3.22 million ounces of gold, contributing to a combined group resource of 4.38 million ounces across the company's portfolio. An ongoing 100,000 metre diamond drilling programme is being utilised to support feasibility studies and test further high-priority targets. The company maintains a strong financial position with 61 million dollars in cash to fund continued discovery and development activities.

Meridian Mining (MNO.L MNO.TSX MRRDF) announced a gold discovery at Álamo and reported high-grade infill results from Santa Helena Central. The company has discovered a new gold-dominant mineralised zone at the Álamo prospect and confirmed high-grade extensions at Santa Helena Central. These findings support the potential for a secondary operational hub within the Cabaçal VMS belt. Exploration hole CD-852 at Álamo intersected 3.5 metres at 2.4 grams per tonne gold and 0.5% copper, including a peak assay of 8.8 grams per tonne gold. Infill drilling at Santa Helena Central yielded high-grade results, with hole CD-854 returning 21.2 metres at 1.5 grams per tonne gold, 1.2% copper, and 6.0% zinc The Álamo discovery remains open in all directions and is located along a 1.6 kilometre trend approximately 1 kilometre from existing infrastructure. Results from the drilling programme will be included in a future resource upgrade and used to support forthcoming metallurgical studies.

GreenX Metals (GRX.ASX GRX.L) has identified new high-priority mineral targets at its Eleonore North Project in East Greenland using modern processing of heritage hyperspectral datasets. The identified tungsten, antimony, and gold anomalies will be tested during an upcoming field season commencing in July 2026. The company reprocessed historical airborne hyperspectral data to identify multiple hydrothermal alteration zones and walk-up surface targets at the Margeries Prospects. New 2 kilometre long anomalies were discovered adjacent to existing high-grade historical estimates at North and South Margeries. Fieldwork scheduled for July 2026 will involve target testing and the collection of bulk samples for tungsten and antimony metallurgical sighter test work.

Ariana Resources (AAU.L AA2.ASX) has identified significant mineralisation extensions at the Dokwe Gold Project. Final assay results from the 5,659 metre reverse circulation drilling programme confirmed that gold mineralisation at Dokwe North extends at least 150 metres beyond the current resource envelope. Significant shallow intercepts include 22 metres at 1.49 grams per tonne gold and 8 metres at 1.20 grams per tonne gold, with mineralisation remaining open along strike and at depth. Extensions were also identified at Dokwe Central and the Sinkwe Prospect, confirming geological continuity and the potential for resource growth across the project area. The company plans to update the Dokwe JORC Resource in the second half of 2026 following further diamond drilling for feasibility and geotechnical assessments.

Americas Gold and Silver (USA.TSX USAS) reported record silver production and sales in Q1 2026. Consolidated silver production rose 76% year-over-year to approximately 787,000 ounces, contributing to record quarterly revenue of $67.8 million. The company declared commercial production at the high-grade EC120 deposit and established a joint venture to develop a new antimony processing facility in Idaho. A financial turnaround was achieved with a net income of $10.0 million for the quarter, compared to a net loss of $19.7 million in the first quarter of 2025. Management maintained its 2026 silver production guidance of 3.2 to 3.6 million ounces, with capital expenditure of up to $120 million focused on growth at the Crescent and Galena mines.

Montage Gold (MAU.TSX MAUTF) reported accelerated construction progress and exploration success at the Koné project during Q1 2026. Construction at the flagship Koné project in Côte d’Ivoire is ahead of schedule and on-budget, with the first gold pour from the oxide circuit now targeted for late Q4 2026. The company has committed $636.9 million of capital to the project as of May 2026, which represents approximately 72% of the total estimated upfront expenditure. Exploration drilling at Koné reached 47,254 metres during the quarter, with maiden and updated mineral resource estimates for satellite deposits scheduled for publication in Q2 2026. Total liquidity and project funding sources stand at $440.2 million, comfortably covering the estimated $380.1 million required for remaining project disbursements.

Private Letter companies have been doing well. Here are a few outcomes:

Sintana Energy C$0.225 - C$1.54 (+584%)

Eco (Atlantic) Oil & Gas C$0.125 - C$1.31 (+948%)

Borders & Southern Petroleum 2.14p - 13p (+507%)

80 Mile 0.215p - 1.6p (+644%)

GEO Exploration 0.1p - 0.52p (+420%)

Seascape Energy Asia 27p - 94p (+248%)

Aminex 0.82p - 2.5p (+205%)

Europa Oil & Gas 0.45p - 2.4p (+433%)

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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. Advertisement