Jim's Oil & Mining Letter - October 19, 2025

Don't miss out on this modern-day gold rush - a 108 grams per tonne gold assay* has 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 108 grams per tonne gold assay* has been recorded). Funds have recently been raised for an initial 10,000 metre (over 32,000 feet) program seeking to unlock the potential for a multi-million ounce gold deposit and the company is drilling now

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* 1 gram per tonne is broadly regarded as being commercial

Interesting news last week:

McEwen (MUX MUX.TSX) announced a definitive arrangement agreement to acquire Canadian Gold (CGC.V STRRF), offering 0.0225 McEwen shares per Canadian Gold share (C$0.60; a 96.7% premium). The deal requires shareholder, court and regulatory approvals, with closing targeted for early January 2026. Post-close ownership will be McEwen shareholders with ~92% and Canadian Gold shareholders with ~8%. MUX will continue trading on the NYSE and TSX. The acquisition adds the Tartan Lake Gold Mine Project in Manitoba, a former producer with infrastructure and exploration potential. The Canadian Gold shareholder meeting is on 5 December 2025 (66⅔% plus majority-of-minority required), court and stock exchange approvals follow, unexercised warrants are to terminate and there is a $2.195 million break fee.

Fortuna Mining (FSM FVI.TSX) announced a preliminary economic assessment for the Diamba Sud Gold Project, which in the base case of $2,750/ounce delivers an after-tax NPV5 of $563 million, an after-tax 72% IRR and ~10‑month payback. Life of mine is 8.1‑years with 840 thousand ounce total production and ~90% recovery. The open-pit mine with CIL plant will produce 2.5 million tonnes per annum for the first three years then 2.0 million tonnes per annum, average 147 thousand ounces a year in the first three years at an all in sustaining cost of $904/ounce and a life of mine average of 106 thousand ounces a year at an all in sustaining cost of $1,238/ounce. Initial capex is estimated at $283.2 million (including a $46.4 million contingency); sustaining and closure costs are $48 million. Fortuna reported Q2 2025 liquidity of $537.3 million and net cash of $214.8 million. Permitting and studies are advancing, the ESIA was filed on 6 October 2025, DFS is targeted for Q2 2026, $17 million has been approved for early works and engineering, and a construction decision is aimed at for H1 2026, with the first gold pour targeted in Q2 2028.

New Found Gold (NFG.V NFGC) reported high-grade intercepts. Dome Zone step-out drilling at Queensway returned 10.4 grams per tonne gold over 20.50 metres (NFGC-25-2299) and 7.47 grams per tonne gold over 13.40 metres (NFGC-25-2265). A newly identified high-grade domain sits ~100 metres below the current Dome PEA pit shell and has been traced 130 metres down dip. It will be assessed for inclusion in the next mineral resource estimate. Lotto and Lotto North infill delivered high-grade intervals (e.g. 40.6 grams per tonne gold over 2.80 metres, 30.5 grams per tonne gold over 2.05 metres and 33.8 grams per tonne gold over 2.05 metres) to support converting inferred to indicated resources within PEA open pits. The 70,000 metre 2025 drill programme is ~70% complete, with results to be incorporated into a Queensway mineral resource update planned for H1 2026. Geotechnical, condemnation, hydrogeological work and surface excavation/channel sampling continue.

Golden Deeps (GED.ASX) reported further high-grade channel results at Gossan 1 East. Channel sampling returned peak grades of 42.7% copper, 1,353 grams per tonne silver and 201 grams per tonne germanium, with broader hits including 7.0 metres at 7.2% copper and 2.0 metres at 16.2% copper, 442 grams per tonne silver. Results confirm a Tsumeb-like Cu-Pb-Zn-Ag-Ge-Sb geochemical signature along the mineralised corridor at Graceland, Namibia. An IP-resistivity survey is underway across the gossan zones to refine near-surface and deeper sulphide drilling targets. Golden Deeps has identified drilling contractors and is obtaining quotes for an initial drilling programme to test targets.

Empire Metals (EEE.L EPMLF) announced a maiden Mineral Resource Estimate for the Pitfield Project, confirming one of the world’s largest titanium resources of 2.2 billion tonnes at 5.1% TiO2 (113 million tonnes contained), including 697 million tonnes Indicated at 5.3% TiO2 (mineralisation from surface with a ~6% TiO2 high‑grade core) and a 1.26 billion tonnes weathered zone at 5.2% TiO2. Conventional processing has yielded a 99.25% TiO2 product, with further drilling and studies planned to expand and upgrade the resource. The weathered zone is suited to low‑cost strip mining (no overburden or blasting). The MRE reported above a 2.5% TiO2 cut‑off and constrained by an RPEEE pitshell. Further drilling and studies are underway to expand and upgrade the resource.

Lion One Metals (LIO.V LOMLF) reported new high‑grade gold intercepts from 4,180.5 metres of underground infill and grade‑control drilling targeting the down‑dip extension of Zone 5 at Tuvatu up to 100 metres below current levels. Many hits are within ~60 metres of current workings and are targeted for mining within 6–12 months, adding approximately five levels. Best results include 78.71 grams per tonne gold over 2.0 metres (including 168.25 grams per tonne gold over 0.9 metres) and other high‑grade hits such as 175.43 grams per tonne over 0.9 metres and 29.70 grams per tonne over 3.1 metres. Intervals were reported at a 3.0 grams per tonne cut‑off and holes were oriented near‑perpendicular to lodes so intervals approximate true widths.

Multiplying Sintana Energy by Reconnaissance Energy Africa

Former RECO.V management has pulled off a SEI.V deal, but with 4x more super-major activity in its basin areas and 3+ years additional geological knowledge and validation…

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Helix Exploration (HEX.L) reported confirmed indicators of geological hydrogen potential and a mantle helium component at its Rudyard Project. Independent analysis of Rudyard well cuttings identified serpentine, olivine and magnetite in mafic/ultramafic rocks, supporting in-situ geological hydrogen generation. Prior isotope work recorded a 3He/4He ratio of 0.74 R_a (>3,600% above typical continental values) with Helium‑3 averaging >10 parts per billion. Isotopic modelling indicates ~9% mantle contribution to helium, evidencing deep‑Earth fluids and conditions conducive to hydrogen‑forming water–rock reactions. Helix states Rudyard is a verified hydrogen‑prone ultramafic system with potential for zero‑CO2 hydrogen if commercially confirmed.

Pilot Energy (PGY.ASX R8Y.F) announced that it has partnered with Kala Data to install a modular data centre at Arrowsmith, powered by surplus gas generation. A 1 MW unit is planned for Q1 2026, scaling to 4 MW mid‑2026 and potentially ~30–35 MW, with Kala funding and a profit share of 50:50. The companies will deploy a modular data centre at the Arrowsmith Production Facility, using surplus power from existing 4.4 MW gas‑fired generators to generate early cash flow during the Cliff Head carbon storage transition. Phase 1 installs 1 MW in Q1 2026, expanding to 4 MW within about six months, with potential scale to approximately 30–35 MW across Arrowsmith or Pilot’s Three Springs Solar project. Kala will deploy and remotely operate the system for high‑performance computing (configurable for AI); Pilot will procure gas and provide onsite operations support. Kala funds initial capex and Pilot’s 50% is settled via ~38 million new shares at A$0.02, issued on successful commissioning and escrowed for 12 months. Net pre‑tax cashflows are shared 50:50 monthly, with 30 MW envisaged to cover Cliff Head operating costs.

Valeura Energy (VLE.TSX VLERF) announced that via a wholly-owned subsidiary, and together with its partner, Pinnacle Turkey, it has entered into an agreement with a subsidiary of Transatlantic Petroleum to explore for and develop hydrocarbons in the deep rights formations of the Thrace basin of northwest Türkiye. Transatlantic will fund the Devepinar‑1 re‑entry and may drill a deep appraisal well to earn up to a 50% interest. The joint venture will explore and develop the deep rights in the Thrace Basin, with Transatlantic acting as contract operator while Valeura remains operator of record. Transatlantic will re‑enter the Devepinar‑1 well, funding 100% of costs up to $2 million; excess costs will be shared 50% Transatlantic / 31.5% Valeura / 18.5% Pinnacle. Testing is expected to start in Q4 2025 and, if commercial, Transatlantic earns a 50% working interest in the western lands. Transatlantic also has an option to drill a deep appraisal well (≥4,000 metres) to earn a 50% interest in the eastern Banarli licences, funding 100% of costs up to $8 million, with excess costs shared 50% Transatlantic / 50% Valeura). The permitted Hanoglu‑1 location is a potential candidate, subject to post‑Devepinar results. Valeura retains deep rights across 955 km2 in the Thrace Basin. Most exploration phases currently run to 27 June 2026, with discussions under way for a two‑year appraisal extension.

Afentra (AET.L STGAF TB8A.F) announced that it has received Presidential approval for the Block 3/24 Risk Service Contract in Angola and will operate with a 40% interest. The shallow-water block, adjacent to 3/05/3/05A, holds multiple discoveries and near-term development potential. The Presidential Decree formally approves the Risk Service Contract for offshore Block 3/24, following Heads of Terms signed with ANPG on 4 September 2025. Afentra is appointed operator with a 40% interest; partners are Maurel & Prom Angola (40%) and Sonangol E&P (20%). Block 3/24 (545 km2) lies adjacent to Blocks 3/05 and 3/05A and includes five established discoveries plus the previously developed Canuku cluster, with c.130 million barrels of oil in place and 400 billion cubic feet of gas in place already discovered. Afentra will commence technical analysis and a phased programme to re-access wells to fast-track first oil, with potential tie-backs to existing 3/05 infrastructure and near-field exploration potential.

Gold Hydrogen (GHY.ASX GHYLF) announced that it will commence its 2025/26 drilling and testing programme at the Ramsay Project, funded by a $14.5 million strategic investment, with Ramsay 3 due to spud around 6 November 2025. The company has strengthened its team and begun technical studies, with a green methanol feasibility assessment planned. The $14.5 million strategic investment from Toyota, Mitsubishi Gas Chemical and ENEOS Xplora funds the 2025/26 drilling and well testing programme; Ramsay 3 is scheduled to spud on or around 6 November 2025 with 2–3 wells planned. Programme objectives are to delineate natural hydrogen and helium across PEL687, optimise testing and extraction to surface, progress the Ramsay Project towards potential commercial decisions, and set a blueprint for future work. 2026 well testing (Ramsay 3 and potentially 4–5) is currently scheduled to commence in Q1 2026 and regional prospects identified from the 2024 2D seismic may be drilled mid to late 2026. Well design has been upgraded to a larger bore with 7-inch casing for greater testing flexibility. Prior wells confirmed high-purity hydrogen and helium, informing the plan. Fluid inclusion studies have commenced and a green methanol feasibility assessment is planned.

Pulsar Helium (PLSR.V PSRHF PLSR.L Y3K.F) announced that it has mobilised a Christensen CT20 rig and ancillary equipment to its Topaz Project in Minnesota. Drilling was expected to begin last week. Up to ten wells will be drilled, with 24‑hour operations, and the first well Jetstream #3 targets helium-bearing zones at 1,500–3,900 feet, with real-time analysis to refine the reservoir model and optimise future locations. Separately, the company announced that it has filed a preliminary short form base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada. The preliminary short form base shelf prospectus, when made final, will allow Pulsar to offer and issue, from time to time over a 25‑month period, common shares, debt securities, warrants, subscription receipts and units up to an aggregate offering amount of $50 million.

Last Call: Own your share of this essential military 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 at a C$1.85 billion valuation with a 2,300 tonnes/year target

• Company is raising C$8 million, with a post-money valuation of just C$48 million

• Listing in Canada with a target date of Q1 2026

• Offering closing date: October 25, 2025

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* Tungsten is essential war material and in short supply in the West, critical since it has exceptional density and the highest melting point of all known elements

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

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