The DRC produces 70% of the world’s cobalt, yet nearly $1 billion vanishes from the legal supply chain each year, according to Oluwole Ojewale, regional coordinator for the Johannesburg-based Institute for Security Studies. Artisanal miners — 150,000 to 200,000 strong, with another million people depending on their work — extract minerals from remote sites in the central African country’s North and South Kivu provinces.

The region erupted into international attention in January after rebel group M23, backed by neighbouring Rwanda, seized the area’s largest city, Goma. Now they’re advancing on Bukavu, 200 km south in South Kivu with its coltan, gold and tin ore mines. A regional peace conference in Dar es Salaam on the weekend urged direct talks among all parties although the DRC has balked at negotiating with M23.  

The fighting has killed thousands and displaced at least 100,000 from camps in the volatile eastern Congo. It’s still suffering a humanitarian crisis more than 20 years after two wars drew in a slew of countries and killed some 5 million people, including by starvation and disease.

Supply chains

Ojewale’s research since 2021 shows that most foreign companies don’t mine directly. Instead, they buy minerals through grey-area brokers. These middlemen mix illegally sourced minerals with legally certified ones, which harms responsible sourcing and fuels conflict as rival armed groups deploy and tax artisanal miners. The operations taint global supply chains, especially for electric vehicles and renewable energy projects, Ojewale said.

“The absence of a strong government presence means legal and illegal cobalt quickly mingle,” Ojewale said Monday by phone from Dakar, Senegal. “This system channels profit to armed groups and middlemen while depriving the DRC of its rightful revenue.”

These intermediaries create fake traceability documents and bribe border officials in Zambia, Burundi and Tanzania to move the metal. This lets contaminated cobalt and coltan enter global markets in London, Shanghai and North America.

Minerals are not the sole driver of the conflict, he points out, they’re the tinder that ignites deep-seated ethnic identity and economic tensions.

“Long-standing grievances and fierce competition for power and resources are equally to blame,” Ojewale said.

Mpox

The UN Refugee Agency will continue in the hardest-hit provinces this year. This will worsen a crisis that affected 27 million people last year. They faced conflict, food shortages, climate shocks, and epidemics. The DRC is the global epicentre of the Mpox outbreak, recording the highest number of cases worldwide, according to the agency.

Ojewale has visited mining sites firsthand. He warns that without strong law enforcement, the country’s mineral wealth will continue to finance conflict.

After 13 South African soldiers as part of a UN peacekeeping force died near Goma in the last two weeks, President Cyril Ramaphosa urged Rwanda to limit its military aid to the M23 rebel group.

Ramaphosa accused the Rwandan Defence Forces of propping up M23. Rwandan President Paul Kagame says the DRC is unable to control the Democratic Forces for the Liberation of Rwanda, a militia linked to the 1994 Rwandan genocide. A one-sided ceasefire declared by the Congo River Alliance—which includes M23—failed to calm the conflict as the Southern African Development Community and the East African Community scrambled to hold Saturday’s peace summit.

Troublesome actors

The International Energy Agency reports that global cobalt demand will quadruple by 2030. This increase is driven by its use in lithium-ion batteries for electric vehicles, smartphones and computers. Yet most foreign firms bypass the DRC’s volatile mining zones, opting instead for local middlemen to supply the critical mineral.

These middlemen source minerals from artisanal operations that operate outside state-approved cooperatives. The government tried to help by giving a monopoly on artisanal cobalt to the state-run Entreprise Générale du Cobalt. They also set up regulatory bodies. However, these efforts have failed due to widespread corruption and weak enforcement. As a result, the illegal trade continues to thrive, Ojewale said.

Illegal extraction not only drains billions from the state but also exacts a heavy human and environmental toll. Artisanal miners face dangerous conditions. They often lack protective gear. This exposes them to toxic dust. Toxic dust can cause respiratory diseases, cancer and birth defects. Meanwhile, rampant waste dumping and water contamination destroy local ecosystems and undermine agriculture.

Indaba

The recent Investing in African Mining Indaba in Cape Town discussed the need for artisanal and small-scale operators to . This is important because they make a significant contribution to overall mining production each year.

Ojewale stresses that both the DRC and cobalt-importing nations must enforce strict regulations, tighten border controls and improve traceability. The region can only secure its mineral wealth, protect vulnerable communities and stop conflict funding through coordinated action.

“Unless governments and global buyers clamp down on these middlemen, the minerals powering our clean energy future will continue to fund deadly conflicts and rob the DRC of its chance to build a stable, prosperous society,” Ojewale warned.

Key intercepts included hole KBRC316’s 96 metres grading 1 gram gold per tonne from 100 metres depth, with a high-grade section of 10 metres at 2.1 grams. Another, in hole KBRC313, returned 81 metres at 1.1 gram per tonne, including a 17-metre higher-grade section at 2.5 grams gold and another 7 metres at 2.2 grams.

The 10,000-metre drill program focuses on upgrading 607,000 oz. of inferred resources at Boin to the indicated category. The deposit is about 290 km west of Accra, Ghana’s capital, in the Bibiani shear zone. Analysts said the results confirm the continuity of the deposit’s mineralization. It reinforced the company’s vision of advancing Enchi into a low-cost, open-pit heap leach operation.

“Though mostly confirmatory, the results demonstrate good continuity,” Canaccord Genuity analyst Peter Bell said in a Tuesday note.

The Boin deposit is the second-largest prospect at Enchi with 28.9 million tonnes at 0.7 gram gold per tonne and shows potential as Enchi advances along the “value curve”, according to the analyst.

Growing relevance

The 248-sq. km property hosts five deposits and over 25 untested exploration targets. Next, Enchi plans to update the resource estimate and finish metallurgical tests. The company aims to start work on a pre-feasibility study this year.

“This drilling not only builds confidence in the resource but also demonstrates the opportunity to grow ounces and deliver a project with compelling economics,” Newcore’s CEO Luke Alexander said in a news release.

Canaccord Genuity rated Newcore a speculative buy. It cited strong project fundamentals and potential in its value. The analyst’s price target is C$0.90, well above the last bid in Toronto at C$0.31. Shares have ranged between C$0.10 and C$0.39 over the past 12 months and it has a market capitalization of C$65 million ($45.3m).

Adding project scale

An updated preliminary economic assessment (PEA) last April pegged the initial capital cost for Enchi at $106 million. It plans a 9-year, 8.1 million-tonne-per-year open-pit, heap-leach mine. The all-in sustaining costs are forecast at $1,018 per ounce.

The study raised Enchi’s net present value by three-quarters to $371 million. It also boosted the internal rate of return to 58% at a gold price of $1,850 per ounce. According to the PEA, Enchi could produce 121,839 oz. annually, a 36% increase over prior forecasts.

Drawing on 35,734 metres of drilling across 167 holes since April last year, the project now has an open-pit constrained measured and indicated resource of 6.5 million tonnes grading 1.1% lithium oxide for 179,600 tonnes of lithium carbonate equivalent (LCE). It’s an important battery-making precursor material.

The deposit holds 11.7 million tonnes of inferred material at 1% lithium oxide for 280,730 tonnes of LCE. The resource also has an underground component with 1.2 million tonnes inferred at 0.8% LCE for 25,190 tonnes of carbonate.

Canaccord Genuity analyst Katie Lachapelle views Baixa Grande as a valuable asset with long-term production potential. “This resource update positions Lithium Ionic to benefit from Brazil’s emergence as a major player in the lithium supply chain,” she said in a Tuesday note.

Shares of Lithium Ionic rose 3.5% to C$0.90 in early Tuesday trading before falling back to the prior-day close of C$0.87. The stock has tested lows of C$0.41 and highs of C$1.34 over the past 12 months and holds a market capitalization of C$138 million ($96.1m).

Location, location

The project is 900 km north of Rio de Janeiro, in Brazil’s Lithium Valley. There, Companhia Brasileira de Lítio’s Cachoeira mine has operated for three decades. And Sigma Lithium (TSXV; NASDAQ: SGML) is developing the Barreiro deposit.

Baixa Grande is next to the Colina deposit. Pilbara Minerals (ASX: PLS) bought it in August for $369.4 million, showing the region’s global competitiveness.

“The proximity to Pilbara’s recent acquisition reinforces its strategic importance and potential for future monetization,” Canaccord’s Lachapelle said.

CEO Blake Hylands credited the resource boost to the team’s drilling strategy. It was precise and effective, he said.

“Baixa Grande is emerging as a cornerstone asset in our portfolio, driving long-term growth and production potential,” Hylands said in a news release. “Our team continues to demonstrate exceptional ability in resource delineation and we see further upside with ongoing exploration.”

The Baixa Grande deposit is open at depth and along strike. The company plans to drill test extensions and find more lithium in the coming months.

Bandeira build

Lithium Ionic’s flagship Bandeira project, about 100 km south of Baixa Grande, remains the company’s top priority. Bandeira holds 41.9 million tonnes at 1.35% lithium oxide, one of the highest-grade lithium deposits in Brazil.

The company awaits final environmental approval to allow construction.

In November, Lithium Ionic got a non-binding letter of interest for up to $266 million in debt financing from Brazil’s EXIM Bank. This will cover all Bandeira’s projected capital costs. The financing package is expected to be finalized soon, with construction targeted to start later this year.

Lithium Ionic has about C$24 million in cash. This is enough to advance Bandeira to an investment decision and fund early construction activities later this year. The company is also pursuing offtake agreements. They could provide funds and strategic partners.

The study, Does regulation delay mines? A timeline and economic benefit audit of British Columbia mines, published by researchers from two BC universities blames delays on economic factors. But the mining industry says the permitting process is the major roadblock.

This week, the Mining Association of British Columbia (MABC) and the Association for Mineral Exploration (AME) argued that the Dec. 11 report ignored key issues in the province’s regulatory framework. As a result, it harmed the province’s image on global competitiveness, they said.

MABC CEO Michael Goehring called the study’s methodology unsound and its conclusions deceiving. He cited the 11- and eight-year permitting processes for two new mines in BC as proof of excessive delays.

“This study ignores the additional layers of federal and provincial permitting beyond environmental assessments,” Goehring said this week in a statement to MINING.com. “It also fails to recognize that permitting delays significantly impact our ability to attract investment and keep projects aligned with market conditions.”

A matter of perspective

The study, published in FACETS Journal by researchers at Simon Fraser University and the University of British Columbia, analyzed 27 mining projects granted environmental assessments since 1995. It found only seven mines opened on time, while fluctuating commodity prices and financial issues caused most delays. Regulation, according to the study, played a role in just three cases.

The FACETS paper suggested that BC mines consistently underperform economically, producing only 23% of forecasted output and 12% of predicted employment. Both organizations criticized the report for using limited data. They said it fails to reflect the broader contributions of operational mines. They also said it ignores the delays that stifle projects before they begin.

The mining sector contributed C$18 billion to BC’s economy in 2022, the latest year for which totals have been calculated, supported 35,000 jobs and generated nearly C$3 billion in taxes, according to MABC data.

Goehring said the study missed these benefits and downplayed the challenges from regulatory inefficiencies. “Permitting must align with global demand for critical minerals,” he said.

The FACETS study acknowledges several people sharing a link to environmental and social justice activism for their input. They include Shiri Pasternak, Justina Ray, Nikki Skuce and Jamie Kneen who co-founded MiningWatch Canada, an organization focused on mining-related environmental issues.

Lack of clarity

The AME’s response echoed MABC’s concerns but emphasized regulatory inefficiencies throughout the project lifecycle.

CEO Keerit Jutla noted delays in issuing ‘notice of work’ permits. Exploration companies need these permits to start early-stage mineral exploration.

“Processing times for these permits have increased significantly, creating uncertainty for companies and discouraging investment,” Jutla said in a Dec. 13 statement.

The study found that 13 of the 27 mines approved since 1995 never began production. Three lost their environmental certificates for missing deadlines to start operations.

Jutla acknowledged the report was right to point out these outcomes, saying they demonstrate a lack of clarity and efficiency in BC’s regulations. Those results undermine investor confidence and misalign projects with commodity cycles.

“Permitting delays don’t just affect timelines — they damage BC’s reputation globally,” he said.

He underlined the need for certainty at every regulatory stage. “BC’s regulatory system must be clear, efficient, and fair if we want to remain competitive and deliver the critical minerals the world needs,” he said.

Reform

Both organizations called for a comprehensive overhaul of BC’s permitting process.

Goehring urged the government to ease regulations while keeping the province’s environmental protections.

“The world needs BC’s critical minerals for the transition to a low-carbon economy, but we won’t deliver without a permitting process that matches the pace of global demand,” he said.

The Anchorage-based company reported an indicated resource of 294.5 million tonnes grading 0.4 gram gold, 2 grams silver per tonne and 0.16% copper for 3.9 million oz. gold, 19 million oz. silver and 1 billion lb. of copper metal. Whistler also holds 198 million inferred tonnes at 0.7 gram gold, 1.81 grams silver and 0.07% copper for 3.3 million oz. gold, 11.5 million oz. silver and 317 million lb. copper.

US GoldMining completed its initial public offering in April 2023, netting $20 million.

The company’s CEO, Tim Smith, says the 2023 drilling program underpinned confidence in the resource update, highlighting more shallow mineralization.

“We look forward to receiving additional results from the 2024 drill hole assays which we believe will continue to support the project’s potential to host a long-life, high-quality gold-copper-silver mine in one of the most favourable mining jurisdictions in the United States,” Smith said in a news release.

The resource builds on a 2022 estimate compiled by GoldMining, which spun out US GoldMining last year to advance Whistler. It was constrained using below trailing three-year average prices for gold ($1,850 per oz.), copper ($4 per lb.) and silver ($23 per oz.).

The updated resource includes three porphyry deposits: Whistler, Raintree, and Island Mountain that occupy only 1% of the company’s total land holdings. The company is systematically exploring 12 additional targets within the so-called ‘Whistler Orbit,’ an area close to the current resources.

The resource estimate incorporates results from 2023 drilling, including hole WH23-03, which returned 547 metres grading 1.06 grams per tonne gold-equivalent. The 2024 drilling program, which has finished, added 4,006 metres of drilling in six holes, further confirming the continuity and potential of the high-grade core at the Whistler deposit.

The company believes the deposit’s high-grade centre offers opportunities for a low strip-ratio, and a high-grade starter pit, which could enhance early cash flow.

By late Monday, US GoldMining shares were trading at $13.00, giving it a market capitalization of $158 million.

The Colombian National Mining Agency approved the mining technical work plan filed in November 2021. Cordoba plans to complete detailed mine engineering this year for the project it’s developing with China-based partner JCHX Mining Management.

“The approval means we are one step closer to build the next copper-gold mine in Colombia,” CEO Sarah Armstrong Montoya said in a statement.

Designated a ‘project of national interest,’ the Alacran open-pit, set to be Colombia’s largest copper mine, anchors Cordoba’s San Matias package. JCHX’s $100 million stake, secured in 2022, includes a final $20 million payment tied to the approval of the feasibility study and environmental impact assessment.

The permit approval marks a big milestone for Cordoba as it progresses towards developing what Montoya believes could become Colombia’s next major copper-gold mine.

A December feasibility study for Alacran outlines a $420.4 million cost for the 14.2-year project. The mine plan yields an after-tax net present value of $360 million (at an 8% discount) and an internal rate of return of 23.8%.

The study projects total metal production of 797.2 million lb. of copper, 550,000 oz. of gold, and 5.35 million oz. of silver from probable reserves of 97.9 million tonnes grading 0.41% copper, 0.23 gram gold per tonne and 2.63 grams silver.

In Arizona, Cordoba is spending $14.2 million to earn an 80% share of the Perseverance porphyry copper project in about two years.

At C$0.40 apiece on Thursday, Cordoba shares are up 2.6% over the past 12 months, having touched C$0.42 and C$0.80. It has a market capitalization of C$81.8 million ($60.6m).

The results come from eight diamond drill holes, part of Collective’s ongoing 40,000-metre drilling program using five rigs, the company said Monday. Highlight assay results include 220.6 metres grading 0.89 gram gold per tonne in hole APC98-D1. It included 11 grams silver and 0.04% copper for 1.07 grams gold-equivalent from 145.3 metres depth. The hole also had 32.2 metres grading 1.86 grams gold-equivalent from 195.35 metres.

Canaccord Genuity mining analyst Peter Bell called the Apollo-Olympus connection at the site near Caldas 180 km west from Bogotá a positive development.

“The expanded Apollo system opens up further growth potential,” Bell said in a note to clients Monday. He maintains a speculative buy rating for Collective Mining, with a target price of C$8.75 per share.

Collective shares closed 1.5% stronger on Monday, hitting a new 12-month high at $3.23 in New York. The stock has gain ed 16.5% over the period, giving the company a market capitalization of $220.3 million.

Bulk tonnage

Collective aims to establish Guayabales as a large-scale, high-grade, bulk tonnage gold-silver-copper-tungsten system, with significant resource growth ahead. Development of Guayabales, next to Aris Mining’s (TSX: ARIS; NYSE: ARMN) Marmato mine, taps into growing global demand for high-grade precious metals amid supply constraints and a focus on sustainable, large-scale operations.

“Combining Olympus and Apollo into a larger system is a major milestone,” Ari Sussman, executive chairman of Collective Mining, said in a news release. “This discovery enhances our potential for mineral growth and development. We’ll continue expanding the system northwards and focus on defining higher-grade subzones.”

Some other highlight results included hole APC98-D2. It cut 256.35 metres grading 1.23 grams gold-equivalent (1.03 gold per tonne, 13 grams silver and 0.03% copper) from 30.6 metres, including 7.9 metres grading 1.8 grams gold-equivalent from 117.1 metres, and 11.9 metres grading 3.11 grams gold-equivalent from 163 metres.

Hole PZC-3 returned 50.1 metres grading 1.2 grams gold-equivalent (0.83 grams gold, 22 grams silver and 0.1% copper) from 95.95 metres, including 11.05 metres grading 2.06 grams per tonne gold-equivalent from 95.95 metres.

The updated Apollo model spans up to 600 metres of strike by 395 metres of width by 1,130 metres vertically. The system remains open for expansion, with mineralization starting at the surface and extending to over 1,100 metres deep.

Drilling continues, focusing on the Apollo, Box, Olympus, and Trap targets. The company’s 2024 objective is to expand the Apollo system, step out along strike to expand the recently discovered Trap system and make a new discovery at either the Tower, X or Plutus targets.

Solaris Resources (TSX: SLS; NYSE: SLSR) shares gained about 6.4% to C$3.16 on Thursday after new drill results extended high-grade copper at its Warintza project in southeastern Ecuador.

One highlight hole, SLS-86, returned 57 metres of 0.77% copper, 0.05% molybdenum and 0.13 gram silver per tonne for 1.11% copper-equivalent. It was among results that confirmed strong copper-equivalent grades near surface, and was part of an ongoing 60,000-metre campaign. .

“As a relatively consistent thematic from Warintza drilling, higher grades were encountered near-surface, and as delivered from a number of holes from a step-out platform that extended mineralization to the northwest,” BMO Capital Markets mining analyst Rene Cartier said in a note to clients. “A number of the holes highlight stronger copper-equivalent grades.”

The results came almost one month after Solaris released an updated resource estimate for Warintza, and before an upcoming pre-feasibility study for the project, expected in the second half of 2025.

Using eight rigs, the company’s drill program has expanded the known mineralization to the north, northwest, and southeast of the current resource estimate. This extension indicates the potential for a larger resource base and could lead to a more extensive mining operation, Solaris said.

Another highlight hole, SLS-84, returned 69 metres of 0.82% copper-equivalent, while SLS-82 encountered 69 metres of 0.77% copper-equivalent. These results suggest the presence of high-grade copper in previously unexplored areas, the company said.

Solaris is also exploring a large molybdenum soil anomaly to the southeast, which remains open for further exploration. The company plans to use these results to support next’s year anticipated pre-feasibility study.

The Warintza project hosts 909 million measured and indicated tonnes grading 0.53% copper equivalent. There’s a further 1.4 billion inferred tonnes at 0.37% copper-equivalent, at a base case cut-off grade of 0.25% copper-equivalent.

Applying a higher cut-off grade of 0.5% copper-equivalent to reflect the near-surface, higher-grade mineralization, the resource would total 427 million measured and indicated tonnes at 0.71% copper-equivalent and 177 million inferred tonnes at 0.62%.

Solaris shares are down 49% over the past 12 months, having touched C$2.82 and C$6.17 over the past 12 months. It has a market capitalization of C$515.1 million.

The detonation at Skeena’s Eskay Creek project, nestled in the rugged terrain of British Columbia’s Golden Triangle, is part of early construction works at what is to become the Main Pit. The company is spending C$713 million to revive one of the world’s former highest-grade gold mines by 2027 with an initial 12-year life.

“Each blast is a step closer to realizing the full potential of Eskay Creek,” Reichert told The Northern Miner during a site visit in late July. “It’s not just about moving rock; it’s about laying the foundation for the next chapter in this legendary mine’s history.”

Skeena secured a C$1 billion financing package with Orion Resource Partners in June, fueling the mine’s return to production. The deal, which covers the entire pre-production capex, includes an equity investment, a gold stream, a senior secured loan, and a cost over-run facility. It’s remarkable given that permits are still being finalized, Reichert noted.

Skeena is finalizing early works and engineering plans, aiming for an impact-benefit agreement with the Tahltan First Nation government in early 2025. The company expects to secure the environmental assessment certificate, the Mines Act permit and a construction OK by the end of next year, Reichert said. Building is to start in 2026 with production to follow in the first half of 2027.

“We’ve been diligent in our approach to permitting, working closely with regulators and local communities,” he said. “By anticipating potential roadblocks and addressing them early, we’re reducing the risk that often accompanies projects of this scale.”

Eskay Creek’s redevelopment is one of two sizeable Golden Triangle projects that are making progress on permitting, including Seabridge Gold’s (TSX: SEA; NYSE: SAKSM) KSM copper-gold project which recently achieved a permitting milestone. The region, roughly bordered by the towns of Stewart to the west, Dease Lake to the north, and the junction of the Skeena and Stikine Rivers to the south, historically produced about 130 million oz. gold.

Ready to rock

The Eskay Creek project, an underground mine from 1994 to 2008, is set to produce 320,000 oz. gold-equivalent annually from throughput of 9,000 tonnes per day using an open pit, according to a November 2023 feasibility study.

The study shows an after-tax net present value of C$2 billion at a 5% discount rate and an internal rate of return of 43%, based on a gold price of $1,800 per oz. and silver at $23 per ounce. The payback period is expected to be 1.2 years, with life-of-mine all-in sustaining costs at $687 per ounce.

Eskay Creek’s proven and probable reserves include 39.8 million tonnes grading 2.5 grams gold per tonne and 68.7 grams silver per tonne (3.6 grams gold-equivalent), containing an estimated 33 million oz. of gold and 88 million oz. of silver. Measured and indicated resources total 50.1 million tonnes grading 2.6 grams gold and 63 grams silver (3.4 grams gold-equivalent), with 4.1 million oz. of gold and 101.4 million oz. of silver.

Court ruling

Last month, a federal court decision upheld Skeena’s tailings management plan, allowing the company to proceed with depositing tailings in the nearby Albino Lake area and removing a risk factor to production. Environmental groups challenged the plan, citing ecological concerns and feared impacts to local water bodies.

Meanwhile, the early works at Eskay Creek are progressing under a 10,000-tonne bulk sample permit, which allows the site to prepare for heavy equipment and infrastructure development.

At site, the ongoing early-stage ground work is essential, Reichert said, not just for current operations but also for future exploration. These include studies on steepening pit walls to access more high-grade ore early on and investigating deep porphyry potential at the nearby KSP property.

The tour also included key sites including the mill site, open pit areas, tailings management facility, waste rock storage areas, camp and infrastructure sites, access roads, power supply points, and water management facilities.

Skeena’s stock gained 50% this year through July 11 when it announced the finance package. Its shares traded at C$8.60 on Tuesday, having touched C$4.20 and C$9.69 over the past 12 months. Skeena has a market capitalization of C$880.8 million ($638m).

Silver ‘wild card’

Silver represents about two-thirds of the total mineral content at Eskay Creek, positioning the project as one of the top five primary silver stories currently in development worldwide.

While primarily a gold mine, the silver component of Eskay Creek’s resources adds to Skeena’s story. Orion’s gold stream does not extend to the silver component, giving Skeena full access to the upside of the precious metal that’s risen 24% in the past 12 months to $2,282.24 per oz. on Tuesday.

“Silver is the wild card at Eskay Creek,” Reichert said. “With the right market conditions, it has the potential to significantly boost the project’s returns, making it an even more attractive asset.”

The new company is to produce 70,000 oz. gold per year from the Florida Canyon gold mine, a well-established heap leach operation in Nevada. Set to close by year-end, the merger announced on Monday also includes two key development projects: Integra’s crown jewel, the DeLamar project in Idaho, and the Nevada North project. They’re both within three-hour drives of Florida Canyon in the Great Basin covering most of Nevada and parts of Utah, Oregon, Idaho, and California.

“This merger fulfills our goal to become a gold producer in the western U.., specifically in the Great Basin,” Integra executive chair George Salamis told The Northern Miner in an interview on Monday. “The cash flows from Florida Canyon will fund future exploration and permitting initiatives, reducing the need for dilution by returning to the market for financing.”

This deal is set against a backdrop of record gold prices spurring increasing consolidation in the sector, with peers in the Great Basin and beyond pursuing mergers to strengthen their positions. Companies such as Calibre Mining (TSX: CXB; OTCQX: CXBMF), Endeavour Mining (LSE: EDV; TSX: EDV), and Equinox Gold (TSX: EQX; NYSE-AM: EQX), all transitioned from explorers to producers in the past five years through strategic acquisitions, while others have focused on expanding their asset portfolios.

However, the market punished this merger. Integra and Florida Canyon shares plunged 16% to C$1.24 and 13% to C$0.55 per share, respectively, on Monday in Toronto. The companies have market capitalizations of C$110.6 million and C$76 million.

Florida Canyon Gold shareholders will receive 0.467 of an Integra share for each share they own, resulting in a 60-40 ownership split between Integra and Florida Canyon shareholders. The merger requires Integra to replace the surety bond guaranteed by Alamos Gold (TSX: AGI; NYSE: AGI), ensuring operational stability and regulatory compliance for Florida Canyon. Alamos bought Argonaut Gold’s Magino mine in Ontario and spun out the rest of Argonaut’s assets to form Florida Canyon.

While Florida Canyon’s production costs have been high, recent personnel improvements and operating practices have turned performance around. The mine produced about 71,000 oz. gold-equivalent last year, with net cash and all-in sustaining (AISC) of $1,368 per oz. and $1,654 per oz., respectively. The mine’s AISC for 2022 was about $1,800 per gold ounce.

By integrating Florida Canyon’s existing operations and development projects like DeLamar and Nevada North, Integra can leverage its combined assets to increase production efficiency and scale, Salamis said.

Improved capital access

Salamis emphasized that the merger with Florida Canyon is particularly timely given the current record gold prices. Investors such as Wheaton Precious Metals (TSX: WPM; NYSE: WPM; LSE: WPM) and Beedie Capital strongly support the deal, he said. Analysts might consider to re-rate the stock with a higher forecast price that could enhance investor confidence, he added.

“The merger opens up the investment pool, attracting those who only invest in producing assets with cash flow,” Salamis said. “With gold prices at record highs, this deal positions us for a potential future re-rating as we advance our development projects.”

The leadership structure will remain largely the same, with Integra incorporating board members from Florida Canyon and seeking a chief operating officer with heap leach expertise. The combined company is to benefit from an experienced mining workforce and potential operational enhancements at Florida Canyon.

The improvements include a recent $40 million investment in a leach pad expansion and carbon-in-column circuit. This entails a process where gold is extracted from a cyanide solution by passing it through columns filled with activated carbon, which adsorbs the gold from the solution for recovery.

Exploration upside

Besides the operational synergies, Salamis points to the exploration potential that made Florida Canyon an attractive target, even though the main asset hadn’t seen drilling in 20 years. There are “low-hanging fruit” in “obvious” targets adjacent to the open-pit mining operation, Salamis said.

There’s also a historical 300,000-oz. gold resource in the area, which the company can start exploring immediately since the area is already permitted. The Great Basin is characterized by its arid climate, flat valleys intersected by mountain ranges and is noted for its mineral wealth.

Salamis says DeLamar is advancing through the federal National Environmental Policy Act process. It is expected to produce 135,000 oz. gold per year over an 8-year mine life.

The Nevada North project, with the Wildcat and Mountain View deposits, offers a 13-year mine life and a projected yearly output of 80,000 oz. gold. It provides significant exploration potential and synergies with Florida Canyon.

Rex shares closed 56% higher at A$0.43 apiece in Sydney Monday on the news. MACH, a unit of the Salim Group and one of Indonesia’s largest conglomerates, already owns a 15.8% stake in Rex, or 121.5 million shares. It will acquire the remainder of Rex shares for A$0.47 each, a 98% premium over the 90-day average trading price. Rex had a market capitalization at the close Monday of A$330.2 million ($222.5 million).

The Rex board unanimously recommends shareholders vote for the deal.

“The transaction provides certainty of value, as well as the opportunity for Rex shareholders to realize their investment at a 10-year historical share price high,” Rex chief executive officer Richard Laufmann said in a statement.

Global funding search

The offer follows a competitive global search for partners to fund and develop the Hillside copper-gold project in South Australia, located 12 km south of Ardrossan. A 2022 resource estimate shows 337 million tonnes grading 0.56% copper and 0.14 gram gold per tonne for 1.9 million tonnes copper and 1.5 million oz. of gold, across all ore types and categories.

BHP’s (LSE: BHP; NYSE: BHP; ASX: BHP) recent, albeit unsuccessful, $49 billion bid to acquire Anglo American (LSE: AAL) was motivated by the strategic need to secure copper mines. BHP is ramping up its copper production in South Australia following its A$9.6 billion acquisition of Australian copper producer Oz Minerals and its mining assets.

The International Energy Agency projects that copper demand will increase to 36.4 million tonnes by 2040 from 25.9 million tonnes last year, driven by its growing application in clean technology and electric grid expansion. However, analysts have warned for years that copper prices aren’t high enough to support new builds.

The Hillside project, with a 13-year mine plan, requires a pre-production capital outlay of A$854 million, according to a 2022 feasibility study.

MACH says it has been looking to diversify its asset base into copper to better capitalize on the energy transition process.

“We remain committed to advancing the excellent work undertaken by Rex on the Yorke Peninsula, including supporting the local workforce and the broader community throughout the ownership transition,” managing director Ferdian Purnamasidi said in a separate statement Monday.

The transaction needs approval from the Australian Foreign Investment Review Board and Rex shareholders. The deal should close by late October, with Rex shareholders voting on it earlier that month.

Calgary-based LithiumBank reported inferred resources of 21.7 million tonnes of lithium carbonate equivalent (LCE) spread across two major Alberta formations. At an average grade of 80.2 mg per litre LCE, the licensed Leduc and Swan Hills aquifer grades count among the highest recorded in the province, CEO Rob Shewchuk said Monday.,

“This presents a district scale potential opportunity for Canada to become a major supplier of lithium in North America,” LithiumBank CEO Rob Shewchuk said in a release. “The company will now focus on additional brine sample assaying, completing lithium extraction test work, and initiate a preliminary economic assessment (PEA).”

The Park Place resource puts LithiumBank’s combined lithium brine resources inventory including the Boardwalk project at 27.78 million tonnes LCE averaging just below 70 mg per litre lithium. Boardwalk, 50 km to the north, holds 395,000 tonnes LCE at 71.6 mg per litre of indicated and 5.73 million tonnes LCE at 68 mg per litre of inferred resources. , .

In comparison, fellow Prairie lithium brine developers Highwood Asset Management (TSX: HAM) has reported 18.1 million inferred tonnes lithium carbonate equivalent (LCE) grading 20 mg per litre at the early-stage Drumheller property, and E3 Lithium (TSXV: ETL) has 16.9 million global tonnes at 74 mg per litre at the advanced Clearwater project.

Several lithium brine developers are working towards achieving commercial production on the continent’s oilfields, but perfecting complex extraction flow sheets remains the biggest barrier to market. Meanwhile, lithium prices have dropped by two-thirds the past year to $13,800 per tonne lithium carbonate in mid-June, according to Trading Economics.

The Boardwalk PEA released in February added $600 million in value to the project and cut costs by a third. The after-tax net present value (at an 8% discount) for Boardwalk is $2.3 billion, with an after-tax internal rate of return of 20.6%.

The company will evaluate Park Place brine chemically and metallurgically at the company’s exclusive 10,000 litres-per-day direct lithium extraction pilot plant in Calgary. That will follow a bulk brine sampling program this year.

The Park Place project, which spans over 5,665.6 sq. km, will benefit from the region’s established oil and gas infrastructure.

LithiumBank shares closed nearly 4.8% in the red Monday at C$0.77 apiece, i near the lower end of the 12-month range of C$0.71 to C$1.41 per share. It has a market capitalization of C$38.4 million ($28.1 million).

Voters elected Claudia Sheinbaum, a climate scientist, as Mexican president on June 2 to replace the outgoing Andres Manuel López Obrador. She’s expected to continue his policies that have de-facto banned open-pit mining. But she may have a less rigid approach, said Beaty of the country where Pan American operates two mines.

“Sheinbaum is much more pragmatic, understands nature perhaps more, and understands climate and perhaps won’t be as radical,” Beaty said by phone this week in Vancouver.

“The former president was a kind of an older generation person. He didn’t believe in climate change, he didn’t want renewable energy, he didn’t want private sector development and he had a dislike for certain Mexican companies in the mining industry.”

Beaty spoke as he was preparing for a cross-Canada fundraising bicycle relay from Vancouver to Equinox’s Greenstone gold project at Geraldton in northern Ontario. Riders should finish the epic 3,634-km journey in time to open the mine in August.

Hospital funding

The pedal-powered trip will benefit the Geraldton District Hospital, just five minutes from the mine. More than C$1 million has already been raised or pledged. The hospital serves 2,767 km sq. of Northern Ontario, including five Indigenous communities and the mine’s workforce.

“We’ve got a lot of keen cyclists in the company, and there’s a lot of keen cyclists in the mining industry and the brokerage industry here in Vancouver,” said Beaty, an avid cyclist planning to participate. “This ride celebrates good health and teamwork, and it may even catch some Canadians’ attention.”

Cyclists from Equinox Gold’s sites in California, Mexico and Brazil will join the relay and organize local events to raise money for charities in their regions. So far, the company has attracted sponsorships and aims to gather more support from vendors, contractors and industry leaders.

Other industry players, such as Barrick Gold (TSX: ABX; NYSE: GOLD) CEO Mark Bristow in his former Randgold Resources days, regularly undertook multi-week motorbike adventures visiting mines and sites across Africa, all in aid of local charities.

The cyclists are to start their journey on August 5 from the company’s head office in Vancouver. Daily progress updates will be available on Equinox’s social media channels and the Ride to Greenstone website.

The Greenstone mine, which poured its first gold on May 22 and hosted Ontario Premier Doug Ford and First Nations during an event at the mine Thursday, is set to become the company’s flagship asset. It aims to produce about 400,000 oz. gold per year for the first five years and average 360,000 oz. annually over its 14-year life.

Equinox, which has eight gold mines in the America, recently bought out its former 40% partner at Greenstone, Orion Mine Finance.

Government overreach

On the Canadian front, Beaty backs the government’s efforts concerning the domestic energy transition and approves of its support for increased critical minerals processing in Canada. He discussed the government’s efforts to restrict Chinese investment in the exploration sector, which he sees as excessive.

This week, the Canadian government arranged a C$3 million sale of stockpiled rare earths from Vital Metals’ (ASX: VML) Nechalacho project in the Northwest Territories to the Saskatchewan Research Council. The move replaced China’s Shenghe Resources as the buyer. Two years ago, Ottawa ordered China to divest from three Canadian critical mineral companies even though their projects were abroad.

“I’m a little nervous about the Canadian government’s desire to restrict Chinese investment in the exploration industry where it’s carried out away from Canada,” Beaty said. “That seems to me a bit of an overreach.”

Hole GAL24-025 returned a highlight interval of 158 metres, grading 1.62% lithium oxide (Li₂O) from 207.8 metres depth, including 89.6 metres at 2.2% Li₂O, the company said Wednesday. The results from a 14-hole, 3,203.6-metre second-phase drill program translate to “material progress for the Galinée discovery,” president and CEO Jean-Marc Lulin said in a statement.

Another hole, GAL24-022, returned 25.9 metres at 2.53% Li₂O from 135.1 metres depth, including 19.75 metres at 3.16% Li₂O. The drill intercepts are reported widths and true widths are yet to be determined.

The region is emerging as a significant lithium district, with other companies like Winsome and Patriot Battery Metals (TSXV: PMET; ASX: PMT) with its Corvette discovery advancing their prospects. The property is about 50 km northwest of the former Renard diamond mine, which Winsome aims to incorporate into Adina’s development plans. Winsome posted an initial inferred resource of 59 million tonnes at 1.12% Li₂O in December.

One mining scenario at Galinée involves building a ramp to access the deposit, given its slightly flat geometry at a relatively shallow depth, according to the Azimut release.

The spodumene crystals found range from a few centimetres to up to 1.65 metres in length. Other minerals include quartz, feldspar, tourmaline, garnet, and more. The company has also found significant cesium, tantalum, gallium, and rubidium grades.

Azimut, which holds the property in a 50-50 joint venture with provincial government mining arm Soquem, says the Galinée project is a top priority this year. The partners will continue drilling over the next six months, and a comprehensive till sampling and prospecting program is underway to identify new drill targets across the property’s most prospective areas over a cumulative length of 60 kilometres.

Only a tiny part of the Galinée property has been explored for lithium to date, according to Azimut. The currently drilled area, in the northernmost part of the property, is part of a much more extensive prospective zone continuing for 12 km farther east and over 21 km along the northwest side of the project. In the southern half of the property, several sectors with 22 km of cumulative strike also display a favourable geological context coupled with attractive lake sediment anomalies.

Unloved equity

Azimut faced criticism from shareholders last year, arguing that while it held some of Quebec’s most prospective lithium lands, it wasn’t exploring for the critical battery metal and was overly focused on gold. Activist shareholders also said it had a discounted stock price valuation compared to its peers and claimed that its business practices weren’t sufficiently respectful to shareholders and neighbouring junior explorers.

Azimut called the accusations inaccurate and false. It was previously more focused on drilling out its resource-stage Elmer gold project and its Patwon discovery of January 2020.

Azimut shares have taken a beating over the past 12 months, dropping more than 53% to a fresh low Wednesday at C$0.55 from a high of C$1.42 a year ago. It has a market capitalization of C$47 million. In comparison, neighbouring Winsome, also down by half the past year at A$0.83 per share, has a market capitalization of A$182.5 million.

The deal is valued at around A$518.8 million ($343m), based on Southern Cross Gold’s share price of A$2.82 on June 11. The combined company will be worth about A$1.03 billion. Mawson owns a 51% stake in Southern Cross, which it values at about A$270.4 million  based on the June 12 stock prices.

“The simpler, dual-listed structure will allow us access to broader capital markets and institutional/private investors; eliminate the perceived major shareholder overhang; and attract an expected lower cost of equity capital,” Mawson special committee and board member Bruce Griffin said in a statement.

The deal comes as the gold mining industry sees more of a trend towards consolidation, with companies merging to achieve economies of scale, reduce operational costs, and enhance their market position. Griffin suggests the merger of Mawson and Southern Cross Gold fits this trend, with widespread shareholder support in Canada and overseas to simplify the partners’ respective corporate structures.

Under the Australian scheme of arrangement, Mawson will acquire the other half of Southern Cross’ shares it doesn’t already own. Southern Cross shareholders will receive a 50.4% equity stake in the new company. This merger aims to simplify the corporate structure and improve access to capital markets, helping to develop the cornerstone gold-antimony project.

The merger is expected to be completed in three to four months, pending shareholder and regulatory approvals.

More drilling

The Sunday Creek project is about 60 km north of Melbourne within 193.7 sq. km of granted exploration tenements.

Southern Cross has recently doubled its drill program to 60,000 metres over the next 12 months at Sunday Creek, reporting high-grade assay results, including 38 intersections with grades over 100 grams per tonne gold-equivalent. The deepest hole extended mineralization by 80 metres and intercepted 11 high-grade vein sets.

The enhanced campaign will expand with additional rigs and advanced techniques to explore a significant trend.

Uranium spinout

Mawson also announced plans on June 10 to spin off its Swedish uranium assets before finalizing the Australian arrangement. The company will either distribute shares of Euro Canna Holdings to Mawson shareholders or sell the assets. Euro Canna holds most of Sweden’s historic uranium resources, totalling 22.7 million lb. of uranium oxide, according to Mawson.

While nuclear energy generates 40% of Sweden’s electricity, a moratorium on uranium mining has been in effect since May 2018. The law does allow for exploration and development. The Swedish government is considering lifting this ban.

The government recently completed an inquiry into the ban, concluding on May 15, with a public announcement expected soon.

Noram Lithium (TSXV: NRM) gained 27% Thursday after a new resource estimate defined a high-grade core zone at the Zeus project in Nevada’s Clayton Valley.

The clay project, halfway between Las Vegas and Reno and within 2 km of Albemarle’s (NYSE: ALB) Silver Peak lithium brine mine, now hosts 564 million tonnes indicated grading 956 parts per million (ppm) lithium for 2.9 million tonnes of lithium carbonate equivalent (LCE). The resource is pit-constrained, modelled on a 525-ppm lithium cut-off, and incorporates a lower-grade fringe halo.

The higher-grade core hosts an indicated resource of 166 million tonnes grading 1,121 ppm lithium. The core includes 54 million tonnes of material averaging 1,496 ppm lithium, 49 million tonnes of medium-grade material at 1,108 ppm lithium and 64 million tonnes of low-grade material averaging 814 ppm lithium.

The update also includes inferred resources of 287 million tonnes at 861 ppm lithium for 1.3 million tonnes of contained LCE.

The prior January 2023 resource statement showed measured and indicated resources of 1 billion tonnes grading 941 ppm lithium for 5.17 million tonnes of LCE, with an inferred 235 million tonnes at 871 ppm lithium for 1 million tonnes LCE.

The high-grade core is expected to underpin engineering studies at the 11.3-sq.-km Zeus project going forward, Noram CEO Greg McCunn said in a statement. The news pushed the share price to C$0.14 apiece Thursday, but it is still down 78% over the past 12 months. It has a market capitalization of C$12.5 million.

“At nominal processing rates of 3.5 million tonnes per year and metallurgical recovery of 83%, a meaningful US domestic supply of high purity lithium carbonate (about 23,000 tonnes per year) could be produced in central Nevada at Zeus,” McCunn said.

Evolving mine plan

The updated Zeus resource statement includes data from 10 new drill holes. This update also includes new geological work including detailed mapping, a review of historic drill holes and logs, as well as literature on similar deposits, and development of ore deposit and geological models.

A December 2021 preliminary economic assessment estimated the project’s after-tax net present value at $1.3 billion (using an 8% discount rate) and its internal rate of return at 31%. The study forecast initial capital costs of $528 million and an after-tax payback period of 3.2 years.

Once in operation, the mine would produce at a rate of about 17,000 tonnes per day, according to the PEA. Production over the life of the mine is estimated at 245.4 million tonnes, averaging 1,093 ppm lithium.

Water access

Following the resource update, Noram is working on a pre-feasibility study, but it has some practical issues to deal with first.

Noram must find a source for its process water for any future operation as no water rights are available in the Clayton Basin. The company has identified an opportunity to transfer water 10 km by pipeline from the next watershed in the Alkali Springs Valley. It has applied for an inter-basin transfer permit to state engineers.

The company’s next steps include updating the mine plan using the new data and optimizing for high grades during the PEA’s 40-year mine plan. Noram will also review and select process equipment options and continue to explore options for project water supply, including a hydrogeological study of non-basin recharge water systems.

Under terms of the deal, B2Gold receives 153.2 million common shares of Versamet for a 33% equity stake. Sandbox was founded in 2022 by two industry heavyweights — Sandstorm Gold Royalties (TSX: SSL; NYSE: SAND) and Equinox Gold (TSX: EQX), combining assets in Europe and the Americas.

This new partnership offers B2Gold a chance to see the value in generally unrecognized royalties, president and CEO Clive Johnson said in a statement Thursday.

“As a significant shareholder, B2Gold is pleased to retain meaningful upside exposure and leverage to Versamet as its experienced management team stewards its strengthened asset base and continues executing on its growth strategy to create future shareholder value,” Johnson said.

Metals streaming companies make money by providing upfront capital to miners in exchange for the right to purchase a portion of future production at a discounted price. In contrast, royalty companies earn a percentage of revenue from mine production without direct involvement.

The benefits sold include such assets as a 2.7% net smelter return (NSR) royalty on the Kiaka and Toega gold projects, both in Burkina Faso and owned by West African Resources (ASX: WAF), and a 2% net profit royalty on the Quebradona project in Colombia owned by AngloGold Ashanti (NYSE: AU).

They also include a 2% NSR royalty on the Mocoa project by Libero Resources (TSXV: LBC) – also in Colombia – and a 1.5% NSR royalty on the Primavera project in Nicaragua owned by Calibre Mining (TSX: CXB).

Value enhancing

BMO Capital Markets mining analyst Brian Quast says Versamet’s portfolio includes 28 royalties, with two cash-flowing and several expected cash-flowing soon.

Quast maintains an ‘outperform’ rating and a price target of C$6.00 for B2Gold, suggesting that the bank views the transaction positively from an investment perspective. He quantifies the modest impact on B2Gold’s net present value, noting a slight increase from $3.764 million to $3.781 million.

The first phase of the royalty transaction, including royalties on the Kiaka, Toega, and Primavera projects, had closed, with B2Gold receiving 122 million shares valued at $72 million. The remaining royalties are expected to close in the next three months.

B2Gold retains a 22.5% silver royalty on Glencore’s (LSE: GLEN) Hackett River project in the Kitikmeot region of Nunavut. B2Gold is developing the Back River gold district in this emerging territory after it acquired Sabina Gold & Silver for C$1.2 billion in April last year.

The partnership includes a shareholder rights agreement, which allows B2Gold to nominate a board member and participate in future capital raises, providing continued exposure to Versamet’s royalty portfolio.

B2Gold, with operations in Mali, Colombia and Finland, forecasts total gold production of between 860,000–940,000 oz. this year.

B2Gold’s Toronto-quoted equity traded in the black Thursday, adding up to C$0.05 or 1.3% per share in the morning session before settling back to C$3.78 by midday. The stock has traded between C$3.18 and C$5.16 in the past 12 months, dropping 27%. It has a market capitalization of C$5 billion.

Production entails the first remote bogging and long-hole stope blasting in Fiji which started in mid-May. The more consistent production tempo matches with upgrades to the mill for a throughput of 400 tonnes per day from the nameplate 300 tonnes envisioned in the 2022 preliminary economic assessment (PEA). The mill team implemented working improvements and debottlenecking initiatives to achieve better throughput, the company said in a release.

Tuvatu is slated to produce about 331,400 oz. per year over a five-year life, according to the PEA. It has an after-tax net present value (at a 5% discount) of $121.7 million and an internal rate of return of 50.9%. The pre-production capital outlay came in at $66.8 million.

The company believes the alkaline nature of the deposit makes it highly prospective for more discoveries. Tuvatu is comparable to Barrick Gold’s (TSX: ABX; NYSE: GOLD) 25-million oz. Porgera mine in Papua New Guinea (PNG), Newmont’s (TSX: NGT; NYSE: NEM) 40-million oz.-plus Lihir mine, also in PNG, the 11-million oz.-plus Vatukoula mine in Fiji and the 20-million oz.-plus Cripple Creek & Victor mine in Colorado.

Lion One, the brainchild of serial mine entrepreneur Walter Berukoff, who owns 10.13% of the company, plans to expand the Tuvatu mill to 500 tonnes daily by September. This expansion includes installing a tower mill, a flotation circuit, and a third ball mill to increase gold recovery and processing capacity. These upgrades are slated for completion ahead of the third-quarter 2025 deadline, the company said.

Bonanza hits

Lion One also reported on Wednesday assay results for infill and grade control drilling in the Zone 5 area of Tuvatu.

The top new drill intersections include 393.01 grams gold per tonne over 1.2 metres (with 1,568.55 grams gold over 0.3 metres), 215.86 grams gold over 0.6 metres and 49.85 grams gold over 1.2 metres (with 63.35 grams gold over 0.3 metre).

These results come from the near-surface portion of the mine, focusing drilling efforts on the north and south of the Cabex fault. Drilling targeted the downdip extensions of the UR2 and URW3 lodes, both north and south of the Cabex Fault, which is a carbonate-healed, post-mineralization structure, the company said.

Located along the main decline, Zone 5 includes several lodes that converge at a depth of 500 metres, forming the high-grade 500 Zone, interpreted as the feeder zone. The system remains open at depth, with the deepest high-grade intersects below 1,000 metres.

The infill and grade control drill data will underpin the mine model and inform stope design ahead of mining over the next 12 months.

Tuvatu hosts 1 million indicated tonnes grading 8.5 grams gold per tonne for 274,600 oz. of metal, according to a 2018 resource. It has another 1.3 million inferred tonnes at 9 grams gold for 284,000 oz. of metal.

The company’s Toronto-listed shares gained 12.5% to close at C$0.54 apiece on Wednesday after touching C$0.38 and C$1.04 over the past 52 weeks. Lion One has a market capitalization of C$125 million ($88m).

Fury Gold Mines (TSX: FURY; NYSE: FURY) has traced continuous gold below historical drill holes over 2.3 km of strike at the Éléonore South project in northern Quebec.

Highlight intercepts include 137.5 metres grading 0.44 gram gold per tonne and 18.7 metres of 0.97 gram gold in drill hole 24ES-161, and 115.5 metres of 0.5 gram gold from drill hole 24ES-162, and 28 metres of 0.47 gram gold from hole 24ES-160.

All seven diamond holes were completed as part of the 2,331.4-metre spring program, which targeted 100 – 150 metre down-dip extensions of existing holes. The work confirmed that the deposit within the Cheechoo tonalite remains open for priority follow-up exploration, CEO Tim Clark said in a news release Tuesday.

“As expected, we continued to find more Cheechoo-style gold mineralization and, through our drilling, gained more insight into the Cheechoo Tonalite,” he said about the project, located 10 km south of Newmont’s (TSX: NGT; NYSE: NEM) 270,000-oz.-gold-per-year Éléonore mine, host to the 5 million oz.-plus Roberto gold deposit.

But before the summer program can get underway, the company must complete a biogeochemical sampling grid on an area it recently acquired from Newmont. Fury reported in March it has discovered a geochemical gold anomaly within the same sedimentary rock package that hosts the Éléonore mine.

Fury’s senior vice president for exploration, Bryan Atkinson, explained that the observed mineralization confirmed the reduced intrusion-related gold system model with an orogenic quartz veining overprint.

“Gold mineralization occurs within an array of structural corridors with the orientations of individual gold-bearing quartz veins being highly variable within these corridors,” he said in a statement.

The Fury team has already identified two distinct styles of mineralization: structurally controlled quartz veins within sedimentary rocks and intrusion-related disseminated gold mineralization, both offering significant exploration opportunities.

Fury plans to complete the biogeochemical sampling grid to finalize the summer drilling program on the discovery anomaly.

Eau Claire update

At Fury’s other nearby project, Eau Claire, about another 40 kms south, the company announced a resource update in mid-May, increasing the measured and indicated, and inferred gold ounces by 32% and 45%, respectively, over the August 2023 statement.

Eau Claire now hosts measured and indicated resources of 6.4 million tonnes grading 5.65 grams gold for 1.16 million oz. of metal. It has another 5.5 million tonnes inferred grading 4.13 grams gold for 723,000 ounces.

The Eau Claire deposit remains open to the west, up-dip at the Hinge Target, east, and at depth.

The company plans to release its summer work program for Eau Claire soon.

Fury’s Toronto-listed shares were trading in the red on Tuesday, down 5% at C$0.60 apiece. It has touched C$0.42 and C$0.80 over the past 12 months and has a market capitalization of C$87.7 million ($64.1m).

The latest results from six holes drilled from the C-Zone infrastructure, targeting the K-Zone’s bornite-bearing target, expanded the mineralized envelope, the company said in a statement this week. Hole EA24-485 cut 2.01% copper and 1.79 grams gold per tonne over 217 metres (40 metres estimated true width), and hole EA23-477 returned 1.21% copper and 1.03 grams gold over 214 metres (22 metres true width).

“Success here is meaningful, as K-Zone is one of several areas located near mine infrastructure that provide potential to expand reserves and extend mine life,” Canaccord Genuity Capital Markets mining analyst Jeremy Hoy wrote in a Wednesday note to clients.

Further results may demonstrate the value of some of these expansion opportunities, extend the mine life, and/or sustain higher production levels beyond 2027, Hoy said.

New Gold has reiterated its strategy to extend the New Afton mine life beyond 2030 through the drill bit. The results showed the company had expanded K-Zone and confirmed high-grade mineralization in its bornite-bearing core, he said. Copper and gold grades are proving to be higher in the bornite-bearing core of K-Zone compared to the haloing chalcopyrite-bearing copper-gold mineralization.

“The latest K-Zone drilling includes some of the best-mineralized intervals drilled at the New Afton mine and expands the mineralized envelope, highlighting the potential for a new mining zone close to existing mine infrastructure,” New Gold president and CEO Patrick Godin said in the company’s new release this week.

The company expects to complete its 370-metre exploration drift in June, providing additional drill platforms to accelerate drilling in the eastern part of the mine, which includes the K-Zone.

New Gold says there are many opportunities for resource conversion at the C-Zone Extension, East Extension, and D-Zone, which Godin said would require essentially no additional capital. In contrast, the D-Zone and the East Extension would require more investment.

New Gold plans to provide more exploration updates this year.

Enhanced value

BMO Capital Markets resumed coverage on New Gold on Thursday, citing the May 13 deal through which the miner increased ownership of New Afton to 80.1% from 54%. The transaction with the Ontario Teacher’s Pension Plan requires an upfront cash payment of $255 million.

The deal boosts New Gold’s attributable life-of-mine cash flow for New Afton by $526 million (39%) to C$1.9 billion. According to BMO mining analyst Brian Quast, it increases the project’s net asset value (NAV) by C$383 million, or 39%.

“The combined impacts of the transactions saw a positive impact on our consolidated NAV as it increased to $2.4 billion from $1.8 billion, or about 30%,” he wrote in a note to clients. “We believe this transaction has upside potential and maintain our ‘outperform’ rating.”

The company is drawing C$25 million from its credit facility and using existing cash for the $255 million payment to the pension fund. New Gold also raised C$173 million through a bought deal of 100.4 million shares at C$1.72 each.

At C$2.97 apiece, New Gold’s Toronto-quoted shares are trading near the 12-month high of C$3.15, having touched a low at C$1.18 in the past 12 months. That’s a 167% difference. The company has a market capitalization of C$2.34 billion.

Fourteen holes covering 4,105 metres of the 67,000-metre expansion drilling campaign that started in 2021 show gold extensions away from the higher-grade Jubilee Shear, the host of the underground resource, Red Pine said in a release on Wednesday.

The Jubilee Shear continues to confirm the continuity of the mineralization and remains open down dip and down plunge, interim CEO and chairman Paul Martin said in a statement.

“As part of this drilling, near-surface gold mineralization in the Hanging Wall of the Jubilee Shear has continued to be intersected and is expected to contribute to reducing the stripping ratio under any proposed open pit scenario,” Martin said.

A top drill hole was SD-24-515 in the Jubilee system, which cut 18.4 metres at 5.58 grams gold per tonne, including higher-grade sections of 1.1 metres at 6.18 grams gold and 0.88 metre at 72.2 grams gold.

In the Jubilee Shear system, Red Pine says its exploration program indicates a continuous increase in the size and confidence of gold mineralization above 2 grams per tonne in the main segment, with mineralization open at depth and extending north beyond the existing resource.

Red Pine’s shares gained 11% Wednesday to C$0.10 apiece. After achieving a 12-month high at C$0.25 per share in April, the stock plunged 61% to C$0.08 apiece on May 1 after it withdrew previous assay results amid a review of inconsistencies it found.

Assay allegations

The company alleged former CEO Quentin Yarie arranged to be the sole recipient of assays from the lab and changed 532 results out of 98,000 over nearly a decade.  Staff then unwittingly used the altered figures in project modelling its 2019 resource update, Red Pine said this month. As a result, the site may hold about 12% less than what the resource claims. The compay says it’s planning an updated resource this year.

Red Pine allegations to the Ontario Securities Commission for review. The commission has declined to comment on any investigation.

Quality assurance

Red Pine improved its quality assurance by sending assay certificates to at least two senior management members and accessing them directly from the lab via a web portal, it said in its release Wednesday. The drilling assay database was rebuilt and compared with an externally compiled database.

Drill core samples are now securely transported and labelled, with a revised control program that includes inserting external gold standards and blanks every 20 samples and quarter core duplicates to assess gold variability.

“With the detailed review, and correction, of our drill database completed and the addition of significant gold assays from our drill program, we look forward to reporting our updated NI 43-101 resource in Q3,” Martin said. The company expects a mid-June cut-off for the drilling assay database for the resource update.

Despite concerns about a global slowdown in electric vehicle (EV) sales, battery metals consultancy Adamas Intelligence newsletter editor Frik Els says key indicators for battery metals demand remain strong.

China continues to dominate the EV market, with Els noting that every second EV sold globally in the past year was in the country.

“They produce more than they sell inside the country. So, if you want to look at trends, you must start in China,” Els, head of Adamas Inside, told The Northern Miner’s western editor, Henry Lazenby, last month during the Energy Transition Metals Summit in Washington, D.C.

Els, who’s also editor-at-large with The Northern Miner’s sister publication ��������apk, pointed out that battery chemistry is quickly evolving.  Following a shift toward lithium iron phosphate (LFP) batteries that began in China in 2020, over half of the EVs sold there are LFP. The chemistry, which is cheaper than others, is also lower density. Still, U.S. market leader Tesla has adopted LFP batteries for their base models.

In the video above, Els explains why prospects for all battery metals are still strong, even as preferences for battery types continue to shift. The summit ran in coordination with Precious Metals Summit Conferences.

This strategic alliance will leverage KoBold’s advanced data science techniques and Midnight Sun’s extensive local experience. The goal is for KoBold to earn a 75% stake in the Dumbwa target by investing $15 million in exploration and making $500,000 in cash payments over 4.5 years.

“Partnering with KoBold allows us to explore this vast property with the necessary capital and expertise,” Midnight Sun’s marketing and communications director Adrien O’Brien told The Northern Miner’s Energy Transition Metals Summit in Washington, DC in April. “Their tech-driven approach combined with our local knowledge creates a powerful synergy aimed at unlocking Dumbwa’s full potential.”

Kobold’s chief strategy officer, Daniel Enderton, lifted the lid on KoBold’s data-driven approach to mining during an April 30 session moderated by The Northern Miner’s western editor, Henry Lazenby.

“KoBold isn’t just targeting copper; we’re focused on all critical minerals and metals essential for the energy transition,” Enderton explained. “Our journey began about four years ago in Canada when we acquired rights to an area in northern Quebec, just south of Glencore’s (LSE: GLEN) Raglan nickel mine, where we identified lithium deposits.”

Backed by the billionaires’ interest in energy transition metals, KoBold invested $50 million in exploration last year, Enderton said.

Today, KoBold has 60 active projects in Africa, North America, Australia and Asia.

“Using artificial intelligence, our goal is to create a ‘Google Maps’ of the Earth’s crust, specifically to locate copper, cobalt, nickel and lithium deposits,” he said.

KoBold collects and analyzes data streams, from historical drilling results to satellite imagery, to gain insights into where new deposits might be found. “Our algorithms detect geological patterns that indicate potential deposits of cobalt, which is often found alongside nickel and copper,” he explained. “This technology allows us to identify resources that might have been missed by traditional methods and helps miners decide where to acquire land and drill.”

The summit ran in coordination with Precious Metals Summit Conferences.

Prospective copper belt

The Central African Copperbelt is one of the most mineral-rich regions globally, with high prospects for significant discoveries. The Dumbwa target is in Zambia’s Domes Region close to several large copper mines including First Quantum Minerals’ (TSX: FM) Sentinel mine, Barrick Gold’s (TSX: ABX; NYSE: GOLD) Lumwana mine and Ivanhoe Mines’ (TSX: IVN) Kamoa-Kakula project just across the border in the Democratic Republic of Congo.

This region is a hotspot for copper exploration and production, making it a strategic location for KoBold and Midnight Sun Mining’s joint venture. For this reason, O’Brien believes the project holds significant discovery potential.

“Dumbwa is a 20-km-long soil anomaly with visible copper grades,” he said. “Partnering with KoBold allows us to explore this vast property with the necessary capital and expertise.”

Drilling will begin in the North American summer, with results expected by early fall.

Zambia: A mining hub

KoBold’s investment in Zambia underlines its confidence in the region’s potential, with six projects underway and plans for further expansion.

“Our investors believe in our data science approach,” Enderton said. “Their support allows us to invest through commodity cycles for sustainable growth.”

Both panellists praised Zambia’s mining-friendly environment, noting its strong infrastructure and skilled workforce.

“Zambia has a century-long mining history,” O’Brien noted. “Its infrastructure and workforce are second to none.”

Both partners are committed to sustainability and maintaining good community relations, working closely with local chiefs and communities.

Swiss diversified miner Glencore (LSE: GLEN) has increased its stake in Stillwater Critical Minerals (TSXV: PGE) to 15.4% for a total investment of C$7.1 million in less than a year, the junior said on Wednesday.

Glencore, one of the world’s top-10 miners by market value, is investing in the platinum group metals developer and its eponymous project in Montana next to Sibanye-Stillwater’s (JSE: SSW; NYSE: SBSW) Stillwater operations. The mine has produced 14 million oz. of platinum and palladium since 2017. Glencore invested just under C$5 million in June last year to take a 9.99% position in Stillwater, seen at the time as a major endorsement of the Stillwater West project.

The strong expression of interest from both new and old investors is a recognition of the Stillwater West project’s potential, according to president and CEO Michael Rowley.

“Our vision of rapidly advancing a large-scale primary source of low-carbon nickel, cobalt, PGMs, copper and other critical minerals in a famously productive American mining district is strongly aligned with the US government’s stated mandate to secure domestic supplies of nine of the minerals we host at Stillwater West,” he said in a statement.

The news sent Stillwater’s shares up 7% by the closing bell to C$0.155 apiece, having touched C$0.13 and C$0.23 over the past 12 months. It has a market capitalization of C$30.7 million, compared with Glencore’s roughly $72 billion market cap.

Glencore’s approach to investing in early-stage companies typically involves providing significant financial backing, which improves the explorer’s chances for development. In March last year, the major made a similar investment in GT Resources (TSXV: GT), formerly Palladium One Mining. GT develops nickel-copper projects in Ontario and Finland, and the investment was part of a strategy to boost GT’s exploration and development know-how.

Glencore has been rebalancing its portfolio to meet the rising demand for critical materials like copper, cobalt, nickel, and platinum group metals, which is telling of a strategic shift towards energy transition commodities, Fitch Solutions unit BMI says.

“Shifting cash flows from coal assets to transitional metals will better position the firm (Glencore) to take advantage of more favourable long-term trends in the metals market,” it said in a March report.

In February, Glencore sold its stake and suspended production in the Koniambo nickel operations in New Caledonia, a French territory between Australia and Fiji, following declining prices and increased-cost operations.

Glencore stepped in with a C$2.1 million lead order in a private placement of 27.8 million units at C$0.14 totalling C$3.9 million. It includes one common share and half a warrant, which allows the holder to buy an additional share at C$0.21. Exercising all the warrants could generate a further C$2.9 million.

The deal could be worth as much as $2.9 million more for Stillwater depending on share performance and the exercise of warrants.

In the shadow of a giant

As of January last year, Stillwater had defined an inferred 1.6 billion lb. of nickel, copper and cobalt and 3.8 million oz. of palladium, platinum, rhodium and gold within a constrained model totalling 255 million tonnes at an average grade of 0.39% nickel-equivalent. The 2023 resource spans five deposits in the 9-km central area of the project, all of which are open along strike and at depth.

Next door, Sibanye’s Stillwater operations, comprising the Stillwater East and East Boulder underground mines near the towns of Nye and McLeod, mainly mine the J-M Reef. The deposit is considered the highest-grade PGM deposit globally with head grades averaging 12.62 grams per tonne platinum and palladium in the second half last year. The mine boasts a projected mine life through 2053 and East Boulder through 2065 and is the model Stillwater aims to emulate.

According to the company, multi-kilometre-scale geophysical targets and metal-in-soil anomalies indicate excellent expansion potential at Stillwater West. Untested anomalies and earlier-stage targets extend across much of the 32-km-long property.

The first 12 holes Intrepid Metals (TSXV: INTR) drilled since February on its Corral copper project in Arizona have returned grades as high as 6.8% in triple-digit-metre cores, the company reported Wednesday. The shares jumped 11%.

As part of a 5,000-metre program focusing on a 3 km trend including the Holliday, Earp and Ringo zones, Intrepid reports hole CC24-011 returned 193.15 metres of 0.68% copper and 0.33 grams gold per tonne for 0.83% copper-equivalent from 27 metres depth. The hole included 105.2 metres grading 1.17% copper and 0.55 grams gold for 1.42 % copper-equivalent, and another of 3.9 metres of 6.8% copper and 1.02 grams gold per tonne for 6.54% copper-equivalent.

“The results returned long runs of robust carbonate replacement-style mineralization punctuated by highly attractive high-grade intervals of copper-gold-silver-zinc, which confirms our confidence in the economic potential of the property,” CEO Ken Brophy said in a news release.

The Vancouver-based explorer’s shares traded closed on Wednesday at C$0.82 apiece, valuing the company at C$37.2 million. They’ve traded in a 52-week range of C$0.22 to C$0.94.

Intrepid’s latest results occur in a district that’s seen a resurgence in exploration activity, with Aztec Minerals (TSXV: AZT) and its 25% joint venture partner, Dragoon Resources, recently identifying new targets and resuming drilling for gold-silver, particularly near the historical Contention pit of their Tombstone project outside of town.

Corral is less than 7 km south of Tombstone, once a bustling mining town in the late 1800s. It was also the site of the infamous Gunfight at the O.K. Corral involving Wyatt Earp, a key figure in American frontier law enforcement.

Porphyry hunting

Among the other highlight drill results Intrepid reported Wednesday was hole CC24-001, which cut 124 metres of 0.52% copper and 0.35 grams gold for 0.73% copper equivalent from 134 metres depth, and hole CC24-012 returned 159.65 metres at 0.57% copper and 0.22 grams gold for 0.64% copper equivalent from 188 metres depth.

That hole’s gold content intrigues Intrepid’s consulting geologist, Chris Osterman, who says the quantity and tenor of gold in the intersections sets Corral Copper apart from typical Arizona copper deposits.

“The economic geology of the Ringo zone is significant because drilling has yielded tens of metres of massive and semi-massive magnetite and hematite below the copper zones that open new possibilities on the origin of the deposit, as well as providing opportunities to guide future geophysical work and drill targeting,” he said in the release.

While the initial results will help guide future drill plans, Brophy says ongoing drilling will seek to expand the three zones along strike and towards depth to find the underlying porphyry copper source for this deposit.

The Corral copper property features precious and base metal mineralization in sedimentary rocks like Bolsa quartzite and Abrigo limestone, notably affected by Jurassic intrusions such as the Star Hill and Copper Bell porphyries, the company said.

The company has since February completed 18 drill holes for 3,300 metres of the planned 5,000 metres at Corral. A total of 23 holes are planned within the three main zones.

The company has other early-stage copper assets in the state, including the Tombstone South project, which Intrepid says is geologically similar to the Taylor deposit, which South32 (LON: S32; ASX: S32) in 2028 bought for $1.3 billion, and the Mesa Well project in the Laramide porphyry belt – both in Cochise county.

An updated preliminary economic assessment (PEA) shows a 75% increase in the after-tax NPV to $371 million (discounted at 5%) and an internal rate of return (IRR) of 58% based on a gold price of $1,850 per ounce. These figures compare with the previous assessment’s NPV of $212 million and IRR of 42% using a gold price of $1,650 per ounce.

The new study forecasts a 36% higher annual production of 121,839 ounces. The project could cost $106 million to build, slightly higher than the earlier $97 million estimate.

“Enchi is in its own efficiency class,” president and CEO Luke Alexander said in an interview with The Northern Miner. “These figures equate to an NPV-to-capital ratio of 3.5 times. I challenge you to find another development-stage project with such metrics.”

Ghana is Africa’s top gold producer, according to World Gold Council data, and is considered a Tier 1 jurisdiction. Newmont (TSX: NGT; NYSE: NEM) invested more than a billion dollars in the Ahafo North project. Galiano Gold (TSX: GAU; NYSE American: GAU) last month bought full control of the 130,000 oz. per year Asanko mine from Gold Fields (NYSE: GFI; JSE: GFI) for $170 million.

Newcore shares rose about 20% to close at C$0.23 apiece on Thursday in Toronto. The stock has gained about 21% over the past 12 months and gives the company a market value of C$39.7 million.

Alexander argues that most modest-sized gold development projects today involve capital outlays ranging from $400 million to $500 million, with NPVs typically yielding ratios of only between one and two times capital.

He points out that at spot gold prices around $2,350 per oz., the post-tax NPV rises to $632 million and the IRR sits at an attractive 92%. It is generally understood that investors’ risk aversion eases at project IRR rates above 35%, with anything more than 15% still deemed worthy of a look.

Better economics

The PEA, prepared by Lycopodium Minerals Canada, plans for an 8.1 million tonnes per year open-pit mining operation over 9 years using heap leaching, compared to the previous study’s 6.6 million tonnes per year throughput over 11 years. It involves a waste strip-to-ore ratio of 2.67 and a heap leach feed grade of 0.6 gram gold per tonne. The operation expects to hire mining contractors.

Over the mine life, Enchi will produce just over a million ounces at all-in sustaining costs of $1,018 per oz., lower than the $1,066 in the previous study. The PEA update also budgets for higher sustaining capital of $92 million versus $23 million, and closure costs of $18 million versus the earlier estimated $22 million.

Newcore is to build the heap leach facility in three stages, with extra capacity planned for future expansion. Trucks are to carry ore from five deposits (Sewum, Boin, Nyam, Kwakyekrom, Tokosea) to a central crushing and heap leach facility between the Boin and Sewum deposits, which hold about 76% of the resources. The plan assumes that secondary crushing capacity will only be necessary when processing transitional and fresh rock in the latter half of the mine life, thereby reducing initial capital costs.

An updated resource estimate calculated at $1,650 per oz. underpins the PEA. Enchi hosts 41.7 million tonnes indicated at 0.55 gram gold per tonne for 743,000 oz. of metal, with another 46.6 million tonnes inferred grading 0.65 gram for 972,000 oz. of gold.

Alexander says the next steps involve proceeding to the pre-feasibility stage, but a definite timeline has not yet been established.

In February, Newcore increased Enchi to 248 sq. km by adding the Omampe licence, where the company will proceed with early-stage drill target development.

The company has also completed an updated environmental and social baseline study, which it says was well received by the local mining authority and communities.

The company is pursuing a multiphase program at the 260-sq.-km Marathon property, with contractor Boart Longyear drilling 8,000 metres on priority targets at the Biiwobik prospect to better define the extent of the Powerline and Chonolith domains. The work will help determine the potential to expand the deposit or develop a fourth pit, or even to extend the mine life beyond the March 2023 updated feasibility study’s 12.5 years.

Gen Mining’s president and CEO, Jamie Levy, welcomed the results as “a great start.” “These significant intercepts mark a substantial step-out of 150 metres from previous drilling and indicates that the overall copper grade appears to increase in this direction,” he said in a Tuesday release.

Marathon, one of North America’s few undeveloped palladium projects, could help to address the increasing demand for copper and palladium, essential for manufacturing hybrid and electric vehicles. Due to inflation, the initial cost estimate for this shovel-ready project has exceeded C$1 billion. Consequently, the company is prioritizing exploration drilling and delaying development until market conditions improve and project expenses can be reduced.

Among the highlight drill results was hole MB-24-058, which cut 8 metres grading 0.85% copper, 2.48 grams palladium per tonne, 0.57 grams platinum, 0.22 grams gold for a copper-equivalent grade of 3.06%. The intersection is within a broader 30-metre interval grading 0.41% copper, 1.02 grams palladium, 0.24 grams platinum and 0.1 gram gold for 1.33% copper equivalent.

Hole MB-24-059 cut 5 metres at 0.56% copper, 1.12 grams palladium, 0.21 grams platinum, and 0.15 gram gold for 1.59% copper equivalent. It was also encountered within a 22-metre interval grading 0.19% copper, 0.9 gram palladium, 0.24 gram platinum, and 0.1 gram gold for 0.98% copper equivalent.

Other results from the 2024 Biiwobik drilling program include hole MB-24-054, which showcased diverse mineralization styles. This hole returned 34 metres of oxide cumulates with up to 0.13% copper, 1.37 grams palladium, 0.23 gram platinum, and 0.1 gram gold, along with an 11-metre interval of massive sulphides with higher values of 0.39% copper and 0.5 gram palladium.

The drilling supports the company’s theory that massive sulphides accumulated in feeder conduits, and help refine its process for selecting high-grade targets. The recent exploration extended the mineralization 450 metres north of the resource-stage Marathon deposit, confirming that it remains open to the north and at depth.

Future programs will focus on expanding this zone and potentially adding to the inferred resource.

Shovel ready

The updated feasibility study forecasts production over a 13-year life of 2.1 million oz. palladium, 517 million lb. copper, and smaller amounts of platinum, gold, and silver, totalling 3.6 million oz. of palladium-equivalent.

The project’s post-tax net present value (6% discount) is estimated at C$1.2 billion with a 25.8% internal rate of return and a payback period of 2.3 years, assuming palladium at $1,800 per oz. and copper at $3.70 per lb. Initial capital costs are projected at C$1.1 billion, with 58% of revenue from palladium and 29% from copper.

Located 300 km east of Thunder Bay and just north of Lake Superior, the Marathon project involves building, operating, decommissioning and remediation of three open pits to produce copper concentrates. In March last year, it finalized an offtake agreement with Glencore (LSE: GLEN), which will buy 50% of the concentrates produced at Marathon.

The project hosts open pit proven and probable reserves of 127.6 million tonnes containing 2.3 million oz. palladium at 0.65 gram per tonne and 530 million lb. copper at 0.21%. It also hosts 285,000 oz. gold at 0.07 gram, 806,000 oz. platinum at 0.2 gram and 6.8 million oz. silver at 1.6 grams.

At C$0.26 per share, the company’s Toronto-quoted equity is down about 56% over the past 12 months, having touched C$0.58 and C$0.17. It has a market capitalization of C$61.4 million ($45m).

The Bankan PFS, released on April 15, calculates an after-tax net present value (at a 5% discount) of $1.4 billion, with an internal rate of return of 41.7%, based on current spot prices of around $2,300 per ounce. The study gives Bankan an upfront capital cost estimate of $456 million. Using a conservative gold price of $1,800 per oz., the NPV sits at $668 million and the IRR at 25.4%

“Completion of the PFS now confirms the project is not only one of the largest gold discoveries in West Africa for a generation, but also a future Tier-1 gold mine,” Predictive managing director Andrew Pardey said during an April 15 conference call. “It can become Guinea’s largest gold mine,” he said.

West Africa, including Guinea, is seeing a surge in mining activities, with both expansions of existing mines and new exploration interests. In Guinea, significant growth in gold mining can be seen, highlighted by projects like the Kiniero gold project. Robex Resources (TSXV: RBX) is redeveloping the historical mine with a $160 million investment, aiming to produce around 90,000 oz. of gold per year over 9.5 years.

BMO Capital Markets mining analyst Raj Ray said in a note that the Bankan study results were largely in line with expectations, “with some pluses and minuses.”

“The PFS highlights a potentially quality project with significant scale and relatively simple executable design,” the analyst wrote.

Probable reserves conversion

At Bankan, a 74% conversion rate from indicated resources to probable reserves underpins the PFS, now estimated to host 57.7 million tonnes grading 1.64 grams gold per tonne for 3.05 million oz. of metal, the bulk of which is slated for open-pit mining. The resources are found across the NEB open pit, NEB underground, and BC open-pit areas. Bankan also ranked sixth in The Northern Miner’s latest Drill Down global gold assays.

The mine plan entails a yearly output of 269,000 oz. gold over a 12-year life. Most of the ore will be extracted using conventional open pit methods, which include drilling, blasting, and hauling with trucks and shovels at the NEB and BC deposits.

The mine plan involves underground mining beneath the open pit using transverse long-hole open stoping with paste fill for deeper ore. The plan also calls for building and operating a 5.5-million-tonnes-per-year processing plant using conventional carbon-in-leach technology with upfront gravity recovery, expecting high recovery rates of 92.6% for the NEC deposit and 89.5% for the BC deposit.

The two-year construction period will involve establishing initial infrastructure and developing access for the NEB underground mine, which is set to begin delivering ore at the start of operations. Mining at the BC deposit will start about six months before production begins and finish in just over a year.

The NEB open pit will undergo two-stage mining to access high-grade ore early, and the Gbengbeden satellite deposit will be mined in the sixth year.

Room to grow

In the proposed expansion case, the NEB underground mine will mine reserves during the first six and 12 years and draw on current inferred resources during years six to 11, accounting for 12.8% of total gold. The company has completed an environmental and social impact assessment with “no fatal flaws,” according to Pardey.

Predictive has identified several opportunities for improvement in exploration and resource definition, which could extend the mine life and enhance project economics. These include infill drilling, regional exploration, geotechnical assessments, metallurgical optimizations, and operational refinements to maximize efficiency and reduce costs.

The company is preparing to translate key documents such as the PFS and the environmental assessment into French to comply with Guinea’s regulatory requirements. Predictive has started work on a definitive feasibility study and is pursuing an exploitation permit.

BMO’s Ray said the next key catalyst is the receipt of the exploitation permit. The company aims to secure that within six months of submitting the PFS and impact assessment, which is expected soon.

On Monday, Predictive’s shares closed in Sydney at A$0.245 per share, 12% below the 12-month high of A$0.25 achieved on April 12, having touched a low of A$0.15 over the past 12 months. It has a market capitalization of A$456.8 million.

Aurous owns and operates the Blyvooruitzicht (Blyvoor) gold mine and Gauta tailings retreatment project in Gauteng’s West Rand. Notably, its listing plans bypass the Johannesburg Stock Exchange and lukewarm local capital market.

“North America is much more supportive to us,” Floyd told The Northern Miner. “So, it’s an easy decision,” Floyd said in an interview.

South African gold miners have been increasingly diversifying their asset bases outside of South Africa to mitigate risks like regulatory uncertainties, economic fluctuations, deep-level mining challenges, labour unrest, and unreliable electricity supply. Major companies like AngloGold Ashanti (NYSE: AU) and Gold Fields (NYSE: GFI; JSE: GFI) have expanded into regions such as the Americas, Australia, and other parts of Africa, reducing their exposure to South Africa’s operational risks.

Aurous expects shareholders to approve plans in June to go public through the business combination with US-based Rigel Resource Acquisition Corp., a special-purpose acquisition vehicle of Orion Resource Partners. The merger puts Aurous at a substantial pre-money equity value of about $362 million, Floyd said.

The deal between Aurous and Rigel is expected to close in the third quarter, resulting in Aurous having over $50 million in free cash post-deal, with North American investors potentially owning about 40-50% of the combined entity, though specific financial details such as pre-money equity value were not disclosed.

Aurous is set to expand its operations and scale up production in the next three years from 30,000 oz. gold per year to about 150,000 ounces. That is before the tailings retreatment production, accounting for potentially another 30,000 oz., starts contributing from 2025. Since the restart of Blyvoor production in 2022, Aurous has rehired about 1,500 workers thrown out of work when the operation ceased production in 2013.

With the expected new cash injection, the team aims to update underground and surface infrastructure at Blyvoor, which Floyd expects could bring increased economies of scale, and lower operating costs. Floyd says the operation is already producing at low all-in costs, but once the expansion has been completed, the mine will continue to operate at below $800 per oz. gold.

Floyd notes the Rigel deal could allow Aurous to create more local jobs. “We anticipate that these developments will be positively received by the South African regulatory bodies,” Floyd said.

In a webcast last month, Rigel CEO Jon Lamb said Aurous was a “cash-positive, debt-light target with impressive operational milestones under its belt.”

Gauta, a collection of six surface tailings deposits, has potential to add secondary production for Aurous. The first gold from Gauta is expected in 2026, with production planned to average about 30,000 oz. per year over a 15-year life, providing additional cash flow.

Aurous is also looking for mergers and acquisitions opportunities in South Africa, and the continent. Floyd notes South Africa accounts for the world’s second-largest gold resources and holds significant untapped potential. Aurous’s search for deals is likely to pick up after its public listing, Floyd said.

The proposed merger, subject to customary closing conditions and regulatory approvals, is expected to close in the third quarter.

Formidable mine

The Blyvoor mine was established in 1937, and milling started in 1942. In its first seven years, the mine yielded 1.6 million oz. gold. In its first year listed on the London Stock Exchange, the mine’s then-eponymous owner, Blyvooruitzicht’s share price increased 65 times, something Floyd said he would like the company to emulate today.

By the 1950s, Blyvoor had broken the world record for annual gold production twice and had been declared the world’s most profitable mine and largest gold producer.

Following the mine’s closure in 2013, Floyd in 2015 bought Blyvoor and the Gauta project and has spent the last nine years re-permitting, re-planning, re-capitalizing, leading to a 2022 restart in production. Despite the early ramp-up phase, Floyd said the mine has been producing at a high margin despite not reaching any scale.

Since restarting, everything has not been smooth sailing. Underground seismic activity has led to an above-average lost time injury rate compared with the local industry benchmark, something management says it is working hard to reduce.

Chairman Alan Smith says the company has modified its mine plan to help limit the frequency and magnitude of seismic events.

Further, the team is working to de-risk the South African operation, including setting up a dual electrical supply system and a solar project to enhance energy reliability and cost-efficiency.

Floyd says that the life of mine plan covers less than 30% of the total resource base, indicating substantial future growth potential from resource conversion.

Across all categories, Blyvoor has a total resource base of 130.4 million tonnes grading 5.4 grams gold per tonne for about 23 million oz. of gold.

BofA analysts are tracking an energy transition and technology-driven decoupling of the metal from traditional commodity markets and broader economic cycles. Tight copper mine supply is increasingly constraining refined production, the bank said, adding the lack of mine projects is finally starting to affect markets, according to Michael Widmer, a commodity strategist and co-author of an April 8 report.

“The pronounced lack of new mine projects has begun to bite, constraining refined copper production and spotlighting years of underinvestment in copper exploration and development,” Widmer wrote.

The tension between demand and supply, coming as capital costs at mines rise while copper prices are slower to catch up, leads to significant price projections and concerns over the metal’s availability for essential technologies in the near term. The bank’s price forecast reflects the severity of the supply constraint amidst rising demand.

BofA forecasts a market deficit of 324,000 tonnes this year, growing to 743,000 tonnes by 2026.

Copper prices surged over 15% in the past two months to reach $9,419.50 per tonne on April 8, near a 15-month high, following mine disruptions that closed refined-copper capacity at Chinese smelters. These smelters contribute to more than half of the global supply. The metal was trading at $9,363 per tonne on Thursday.

Copper reached a record on the LME in May 2021 at $10,747.50 per tonne amid strong Chinese demand and covid-19 supply disruptions.

Despite potential supply constraints, the demand for copper remains strong, fuelled by investments in green technologies, a rebounding global economy, restocking efforts, and possible rate cuts.

The red metal’s importance in renewable energy technologies, EVs, and infrastructure development makes it indispensable in the global shift toward sustainability. Copper’s centre-stage role further worsens the impact of any supply limitations, the analyst said.

As a major player in the copper market, BofA warns that China’s investment decisions, particularly with green technologies, significantly impact global copper demand. The report highlights the risk of China reducing its green investments, which could ease the demand side of the equation but still leaves the overarching issue of supply constraints, Widmer says.

The reforms introduced last May by President Andrés Manuel Lopez Obrador (known by his initials as AMLO), require pre-consultation with communities before exploration, impact studies and cash bonds in case of damage that junior explorers may find difficult to raise. Authorities can cancel exploration concessions after two years if no work is completed and critics say water allowances have become harder to get. AMLO has also nationalized the country’s still-developing lithium sector and proposed a ban on open pit mining.

“If you plot a graph of the discoveries and production of gold and silver in Mexico, it starts a very rapid upward climb year on year from 1992, when they opened up exploration to foreign companies. And now, what you’re seeing is a cliff,” the chief executive of a mid-tier silver mining company operating in the country told The Northern Miner. “And we’re going over the cliff because no one’s doing exploration. You don’t have future mines if you don’t do exploration.”

Canadian companies accounted for up to $8 billion in exploration spending and 70% of foreign investment in Mexico’s mining sector between 2012 and 2022, according to figures from the country’s mining chamber, Camimex. They’re eyeing next week’s Supreme Court ruling like a traffic light for project exploration and development.

They’ve already been hard hit by AMLO’s mining reforms, Exploration Insights mining analyst Joe Mazumdarsaid.

“People with exploration assets in Mexico have a hard time getting funded,” he told The Northern Miner.

Mexico’s mining production was valued at $16.7 billion in 2021, according to the U.S. Department of Commerce. Camimex says the new law will cost the country $9 billion in investment and 420,000 jobs.

Mexico mining law expert Santiago Suarez Sevilla says over 500 constitutional challenges (Amparos) have been filed against the law, with the Supreme Court recently issuing new guidance walking back some of the reforms and, in some cases, grandfathering those filing an Amparo from enforcement of the new rules.

AMLO’s term ends in November, but his hand-picked successor Claudia Sheinbaum leads the polls ahead of an election scheduled for June. Sources were divided on what a win for her could mean for miners.

Given the regulatory uncertainty, several companies and investors The Northern Miner spoke to declined on-the-record interviews. That uncertainty affects not just individual companies but the economic ties between Mexico and Canada.

One senior executive of a gold-silver miner in Mexico says the political noise created by AMLO’s mining and other reforms has overshadowed traditional investment concerns in Mexico, such as the influence of drug cartels and violence.

Mining reforms

Mexico’s mining slowdown has been in the making for some time. Camimex says there has been a 51% fall in exploration investment to $572 million in 2022 from $1.2 billion in 2012 since fiscal reforms in 2013 removed tax incentives.

Since taking power in 2018, the AMLO administration has not granted any new concessions. And about a year ago, his Morena party shook miners when senators approved a new mining law in an accelerated late-night process that excluded opposition legislators.

Companies complain that the reforms have created disincentives for mineral exploration, introducing exploration and water resource management plans that amount to burdensome red tape, time, and money.

Perhaps the most controversial aspect for explorers is the stipulation that only the state can conduct greenfields exploration in partnership with the proponent. However, once a deposit has been proven, an open bidding process is still required, and the original proponent must match the highest bid to retain the concession.

That means there’s no security of tenure for exploration assets.

AMLO threw fuel on the fire in February, pushing a new constitutional amendment banning open-pit mining.

Such a decree could crush the sector since open pit mines generate more than 60% of Mexico’s mined production, Mazumdar says.

Top producers such as Grupo Mexico’s Buenavista del Cobre, Newmont’s (TSX: NGT; NYSE: NEM) Peñasquito, two of Fresnillo’s (LSE: FRES) gold-silver mines, and several others owned by Industrias Peñoles are open pit operations.

Mazumdar points out that the economics for many projects such as San Nicolas, a joint venture between Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK) and Agnico Eagle Mines (TSX: AEM; NYSE: AEM), are based on an open pit scenario. Agnico paid $580 million for half of the project last year.

GoGold Resources (TSX: GGD; US-OTC: GLGDF) has adapted its Los Ricos South gold-silver project to transition from a wholly open pit plan to underground mining initially. Other projects may never be developed if the open pit ban is implemented.

There are certain ironies to AMLO’s mining reforms. The apparent ban on open pit mines contrasts with the nationalization of lithium mining in Mexico early last year. Hard rock lithium mining is usually best suited for open pit, bulk mining methods.

One mining executive operating in Mexico noted the contradiction between populist AMLO’s advocacy for Indigenous and remote communities and his actions that undermine the mining sector.

Mines in Mexico, often located in remote areas, contribute to local development by building schools and hospitals, and providing job training and economic opportunities. Yet, AMLO’s policies are essentially “cutting the hand that feeds” the very people he claims to support.

Majority to pass

Law expert Sevilla points out that AMLO’s proposed constitutional reforms need the support of two-thirds of Congress for approval. The Morena party and its coalition hold 273 of the 334 votes required for a qualified majority in the 500-seat Chamber of Deputies. In the 128-seat Senate, they have secured 71 of the needed 84 votes.

“Following this trend, we believe it will be very difficult for Morena to reach the necessary majority to approve constitutional changes in this and the next period,” Sevilla said. “The new mining law is highly unlikely to survive a challenge of unconstitutionality, a fate that open-pit mining also faces.”

In the upcoming election, Claudia Sheinbaum, the candidate for the ruling Morena party and its coalition, Let’s Keep Making History, is competing against Xóchitl Gálvez of the Broad Front for Mexico coalition.

Sources expect Sheinbaum to maintain the government’s hardline approach and the status quo. However, several see the potential for her to take a more moderate approach once in power, depending on how strong AMLO’s influence over her remains.

Though chances of forming a government are slim, the opposition is strongly pro-mining.

Camimex says, for its part, it is ready to work with the incoming government come November.

“As a business chamber and representatives of the mining industry in Mexico, we always maintain open channels of dialogue with the authorities with the aim of guiding and providing support in technical matters of public policies,” it said in a statement to The Northern Miner.

“We are currently working with the authorities to build communication bridges that allow them to learn about the best practices that the industry has.”

The company has paid C$4 million for an option to buy the assets, which could help hasten the development of its Adina lithium discovery in the Eeyou Istchee James Bay region.

Renard, developed and formerly operated by Stornoway Diamonds from 2016 until December last year, contains a permitted processing plant. Winsome says it may be possible to repurpose the plant to treat lithium ore.

“Winsome has the potential to acquire and repurpose the Renard assets at a fraction of their replacement value,” Winsome managing director Chris Evans said in a release Wednesday.

The company can choose to exercise its option to acquire Renard any time after it’s approved by the Quebec Court and before Sept. 30 for C$52 million in cash or scrip. Extensions to the timeline are possible. Winsome would be bound to a specific payment schedule if it does exercise the option.

Evans says Winsome will use the option period to evaluate the feasibility of converting Renard for lithium, considering technical, economic, environmental, and social aspects. The company will also work out the best deal structure and finalize the necessary agreements for the acquisition.

Quebec has seen an explosion of lithium spodumene discoveries in recent years, and developers are competing to bring the first product to Western markets while simultaneously seeking to add value locally by processing spodumene to higher-value products for batteries such as lithium carbonates and hydroxides.

According to Evans, Renard represents a regionally strategic asset with the potential to provide Adina with a cost-efficient transport and logistics solution.

In December, Winsome released an initial 59 million tonne inferred lithium resource grading 1.12% lithium oxide for 1.6 million tonnes of lithium carbonate equivalent at Adina.

The Renard acquisition will open road and rail access year-round to the growing critical mineral and electric vehicle battery supply chain hub in nearby Bécancour and major ports on the St Lawrence Seaway. This move leverages Renard’s existing permits and Quebec site, accelerating and potentially de-risking Winsome’s lithium aspirations.

Over C$900 million was invested in the asset, which has a capacity of 2.2 million tonnes per year. In October last year, Stornoway mothballed the operation, citing uncertainty about diamond prices over the short to medium term. A sudden drop in the price of the resource on world markets had a major impact on the company’s financial situation, the company said at the time.

Stornoway is owned by Osisko Gold Royalties (TSX: OR) and TF R&S Canada.

The company says recent site visits have allowed it to confirm the good state of Renard’s infrastructure, including an airport, power station, and connections to key transport networks.

Winsome plans to release an updated Adina resource statement during the second half of the year.

Winsome’s share price has softened in recent quarters, in step with flagging lithium prices. According to Trading Economics, lithium carbonate prices fell below $15,200 per tonne, failing to maintain the over-three-month-high of $16,000 per tonne seen throughout the second half of March. Oversupply in the Chinese electric vehicle market maintained muted bidding for batteries.

Winsome shares in Sydney are down 46% over the past 12 months at A$0.88 apiece, having touched A$0.515 and A$2.24. It has a market capitalization of A$168 million.

The Central and South America-focused company says it added 2.4 million oz. gold, or 21%, to measured and indicated resources over the 2022 statement. Across its projects, it now holds 187.3 million tonnes averaging 1.05 grams gold per tonne for 6.3 million oz. of contained metal. The company also added 856,000 oz. to the proven and probable reserve base, now comprising 107.4 million tonnes grading 1.03 grams gold for 3.6 million oz. of metal.

“This achievement is a result of our clear strategy to increase production while we increase our resources and reserves,” president and CEO Rodrigo Barbosa said in a news release.

Shares traded at C$10.51 in the afternoon session, up nearly 21% over the past 30 trading days having touched C$8.09 and C$11.49 in the past 12 months. In comparison, the VanEck Junior Gold Miners ETF is up 20% while gold rose 6.35% in the same time.

The company has a market capitalization of C$759.2 million ($559.2m).

The company produced 236,000 oz. of gold-equivalent last year, down 2.7% over 2022, at all-in sustaining costs of $1,324 per ounce. Net revenues have climbed 164% to $417 million since 2018.

Aura spent about $24 million on exploration drilling last year for 114,074 metres completed across the portfolio, mainly to replace depleted ounces at the Aranzazu mine in Mexico, Apoena in Honduras, and Almas mine in Brazil, while expanding the mineralized envelopes at the Borborema and Matupá development projects, also in Brazil.

Among the most important additions were from the Aranzazu mine, where Aura drilled 24,840 metres last year to convert known inferred resources to indicated. The update pushed the proven and probable reserves 6% higher to 10.13 million tonnes grading 2.81 grams gold per tonne.

Aura says this resulted in a 7% increase in gold equivalent ounces, and a 7% uplift in the net smelter return royalty, effectively compensating the company for 40% of the tonnes depleted at the mine last year.

Aura says the new reserves extended the mine’s life to eight years.

“Another important example of our exploration success is Aranzazu, where we started production in the end 2018 with a five-year LOM, operated for more than five years, increased capacity by 30%, and now have an 8-year LOM,” Barbosa said.

In Honduras, work at Apoena resulted in the biggest reserve increase since 2017. Back then, Apoena was expected to operate for three more years. Since that time, it has operated for seven years and now is projected to run for another five years.

It has measured and indicated resources of 112.9 million tonnes grading 1.15 grams gold per tonne for 477,656 oz. of metal, and proven and probable reserves of 9 million tonnes grading 0.96 gram gold for 276,226 oz. of metal.

The Borborema project was the other significant contributor to resource growth last year. An August 2023 Borborema feasibility study added 83,000 oz. per year in potential production to the company’s profile during the first four years. It has proven and probable reserves of 22.5 million tonnes at 1.12 grams gold per tonne for 812,000 oz. of metal. Measured and indicated resource also grew to 63.7 million tonnes at 1.01 grams gold for 2 million ounces.

Barbosa says the probable relocation of a federal road at Borborema will potentially unlock another 1.3 million oz. for inclusion in the reserve categories.

“With these successes and the significant expansion potential remaining at all our assets, we remain committed to prioritizing increasing exploration to create value for shareholders in the years to come,” Barbosa said.

The story unfolds in the red dust of Kalgoorlie, Western Australia. It challenges the heavy, ore-laden status quo with the light-footed adventures of Cat, Nancy, Ty, and an Egyptian magical cat that could make even the Sphinx purr with curiosity.

“In the world of mining, the next big discovery is always just one story away,” Lalut, who started in mining as an engineer in Chile, told The Northern Miner in a phone interview from Perth. “Beneath the surface of our industry’s rugged exterior lies a rich vein of stories waiting to be told.”

Lalut’s innovative approach to inclusion, diversity and the significance of mining reflects a growing trend in educational literature, aiming to inspire the next generation of scientists, engineers, and environmentalists. Sagging enrolment is alarming the industry.

The Chilean-Australian says she didn’t jump from mining engineer to children’s author quickly but that the journey was enriching.

The book merges adventure with themes such as female empowerment, environmental stewardship and STEM education, a teaching approach that combines science, technology, engineering and math.

Lalut leverages her narrative like a drill bit, boring through the strata of societal norms to uncover gems that trailblazed her own journey through the traditionally male-dominated industry. The author led Women in Mining & Engineering WA.

The story follows the friends on a quest to awaken an ancient guardian believed to be the key to their town’s survival. Through their journey, Lalut weaves critical messages that challenge gender stereotypes and highlight the importance of preserving our natural surroundings.

“The narrative ventures into the depths of the earth and the human spirit,” she said. “Much like a cartographer charts undiscovered territories, I’m inviting young readers to explore the uncharted terrains of mining, environmental respect, and self-empowerment.”

Lalut’s plans to translate the book into Spanish are not simply a nod to her Chilean roots but a global blast signal, expanding her message to the broader Spanish-speaking mining community.

Self-published and available on Amazon, The Mine That Fell Asleep in the Goldfields targets young readers while resonating with adults, especially within the mining community.

The mining sector’s recent shift towards adopting technology to tackle rising costs is turning digital intellectual property into a valuable commodity in its own right, says global law firm White & Case.

“Technology is increasingly becoming a core component of mining and metals sector business strategies,” a partner with the firm, Daniel Turgel, told The Northern Miner in an interview Wednesday.

This trend is driven by rising operational costs and a need for the supply of minerals essential for the energy transition, according to the law firm’s March 5 report entitled Technology – The hottest commodity in the mining & metals sector.

IP is becoming crucial, transforming into a valuable asset exchanged among industry players to boost efficiency and reshape business models, Turgel explained.

A prime example is the partnership between Ivanhoe Electric (TSX: IE; NYSE AM: IE) and Saudi state-owned miner Ma’aden, leveraging Ivanhoe’s Typhoon technology to explore large areas in Saudi Arabia. Ivanhoe’s Typhoon technology, used for large-scale geological surveying, was essentially the ‘payment’ or value offered to Ma’aden for access to explore vast mineral-rich areas in Saudi Arabia.

“Technology actually becomes the currency,” Turgel said, highlighting the evolving nature of transactions in the sector and technology’s rising role in making new strategic cross-industry alliances.

“It’s becoming much more prevalent that for example, you might contribute your technology in return for an equity stake or some kind of debt instrument,” he said.

Rebecca Campbell, group head of global mining & metals, says this type of innovation is new for a generally conservative sector. “One of the fascinating things for us, as we’re starting to see a little bit of a shift.”

This trend underlines the growing importance of securing and managing IP rights amid the potential for new legal challenges. While hardware traditionally dominated the spotlight, the rise of software and AI has the potential to revolutionize mining operations. The report highlights the cost savings and efficiency gains achievable through these technologies.

Machine learning and AI have already provided considerable improvements in efficiency, accuracy, and safety mine planning and processing, White & Case associate Nick Crawford says.

“Generative AI, in particular, has opened new possibilities in exploring and processing vast amounts of geological data, significantly accelerating the project development process,” he said. “Companies like BHP and Vale are leveraging these technologies to improve safety, maintenance, and operational efficiency.”

Meanwhile, White & Case found that despite the urgent need to innovate, the sector’s spending on research and development (R&D) remains relatively low. Miners historically spend less than 3% of their EBITDA on R&D, as opposed to 8% for materials producers, 30% for industrials, and 40% for automakers and relevant original equipment manufacturers.

But are customers willing to pay more for low-carbon nickel? Some analysts say yes — under certain conditions.

“If the market sees a benefit in paying a premium for certain supplies then it will,” Jim Lennon, managing director of commodities at Macquarie Group, told The Northern Miner in an interview. “A buyer would be willing to pay a premium if they can see an economic benefit in using that product, such as receiving a government subsidy or securing a sale of a ‘greener’ electric vehicle.”

The price of nickel has been on a downtrend since late 2022 when it was $33,575 per tonne ($15.23 per pound). The price on Tuesday was $17,678 per tonne ($8.02 per lb.) and in February dipped as low as $15,850 per tonne ($7.19 per pound).

The price doldrums have prompted Wyloo Metals and BHP (ASX: BHP) to suspend operations in Australia, with BHP announcing it would take a $2.5 billion impairment on its assets.

Given the devastation to its nickel sector, Australia has been the most vocal in creating new variable price brackets for low-carbon emissions nickel.

The idea for premium ESG pricing isn’t new. In fact, some experts argue that there’s already a premium.

Canada Nickel (TSX: CNC) CEO Mark Selby says people might be surprised to learn that price premia have already been paid for various North American products perceived as cleaner on Asian markets.

Selby notes that domestic premiums for certain materials have been sustained over several years, which might not be directly attributable to lower carbon footprints or ESG factors alone but could be influenced by a combination of factors, including local supply.

But this type of premium isn’t helping Australian nickel miners. And deliberately imposing an ESG premium would be a different story.

“The main challenge is defining what ‘ESG-compliant’ actually means,” Macquarie’s Lennon said.

It’s an obstacle that the London Metal Exchange (LME) is facing as it investigates and prepares for the potential emergence of premium pricing for low-carbon products on separate trading contracts.

Georgina Hallett, LME’s chief sustainability officer, says that there’s increasing interest from producers, consumers, and investors in establishing a price premium for metals produced with lower carbon footprints. However, defining what constitutes ‘low carbon’ or ‘green’ metals isn’t easy due to the lack of a standardized, universally accepted framework for measuring and verifying the environmental impact of metal production processes.

“The aim is to build a robust framework that supports the gradual introduction of sustainability-linked pricing mechanisms while ensuring broad market participation and avoiding undue disruption,” Hallett told The Northern Miner. “By taking a step-by-step approach, the LME hopes to align the interests of various stakeholders and drive meaningful progress toward the integration of sustainability into the global metals market.”

Free market forces

Lennon suggests that establishing a special low-carbon contract for metals on the LME is unnecessary. This is because the prices for different products are already determined by normal market activities, such as supply and demand. Just like prices for different metal shapes and origins adjust based on market conditions, the prices for products with various ESG qualities would naturally adjust in the same way.

“Exchanges don’t need necessarily to get involved since they can focus on ‘objective criteria for delivery (shapes, metal purity, etcetera) and leave the market to decide on ‘subjective’ factors such as value-in-use of different products/shapes and ESG,” Lennon said.

From an exchange perspective, like the LME, there is also a risk of damaging liquidity if they were to introduce multiple contracts. Compared with large commodity derivative markets, nickel is not particularly liquid and dividing this liquidity could reduce the usability of the market for some participants.

Lennon says markets will ultimately determine the outcome. Currently, nickel prices vary significantly between products depending on supply and demand.

Today’s primary nickel products that are LME deliverable include metal rounds, pellets, cut cathode, and full plate cathode. When delivered to LME warehouses, each product is assigned a associated warrant. When buyers want to take delivery from the LME, they are often willing to pay LME brokers a premium for warrants of a particular material shape or origin.

Similarly, other non-LME deliverable products, including intermediates (concentrates, mattes, MHP, MSP, etc.) or finished products (ferronickel, nickel pig iron, nickel sulphates, nickel chlorides, etc.) also sell at varying discounts or premiums to LME base prices. Lennon said these premiums/discounts can shift dramatically due to changes in supply and demand.

For example, nickel pig iron was selling at a premium to the LME price at the start of 2022 and then had fallen to a discount of 40% to the LME by the first half of last year.

“Product type, ESG, and country of origin are all important properties and presumably were factors that led major automakers to agree to term supply contracts with BHP and Vale in recent years. ESG was no doubt a factor in these negotiations,” Lennon said.

Canada Nickel’s Selby emphasized the importance of provenance tracing rather than setting up a formal two-tiered pricing system.

He points out that imposing a pricing mechanism before the market is ready can lead to inefficiencies, such as a benchmark that does not accurately reflect market conditions. He suggests letting the market sort it out.

“We will continue to observe the distinction between Western-supplied, clean, green nickel and the high-carbon, less ESG-compliant nickel from China and Indonesia,” he said. “As for the necessity of a formal pricing mechanism, it’s typically better if such mechanisms emerge naturally in the marketplace before establishing a formal platform for trading them.”

Aussie nickel rout

An increase in supply from Indonesia has cratered nickel prices, as the southeast Asian nation boosted production of refined and semi-refined nickel, mainly on the back of an export ban on raw ore, which led to massive investment from China in new processing plants, according to Lennon.

Indonesia has become the dominant nickel producer, accounting for 55% of global supply, up from 7% in 2015, according to Bank of America data. But it relies on coal-fired power.

Higher-cost Australian supply can’t compete. Australia’s federal resources minister Madeline King responded to the raft of nickel suspensions by adding nickel to the country’s critical minerals list, enabling industry access to part of the A$4 billion ($2.6 billion) federal funding earmarked for critical energy transition minerals exploration and development.

“Prices paid for Australian minerals need to recognize the high ESG standards the Australian industry adheres to and the fact that Australian workers enjoy good working conditions and the highest safety standards.”

At PDAC, she noted that Canada and Australia have agreed to jointly advocate for robust ESG credentials to be built into global, transparent and traceable critical minerals supply chains.

Laying foundations

The LME has been considering introducing a premium for green or sustainable metals since it released a 2020 white paper on the topic, Hallett noted.

In 2021, the LME collaborated with Metalshub, a digital metals procurement platform which facilitates buyers’ access to the physical metal that meets specific attributes including carbon intensity and other ESG criteria. The LME said that low-carbon nickel, classified as producing 20 tonnes of carbon dioxide or less per tonne of nickel, could already be traded on Metalshub’s system.

The platform aims to allow market participants to specify and search for metals that meet specific sustainability standards, thereby fostering the emergence of a market-driven definition of ‘green’ metals.

Hallett says the critical missing component to formalizing a new price bracket is doing the less sexy but foundational work around how one measures emissions the same way across the industry. The point is to create an equal playing field for products in the value chain included in that new contract.

The LME has initiated several measures to promote sustainability within the metals market. One of the key initiatives is the development of metal-specific measurement methodologies, in collaboration with metal industry associations, to standardize measuring carbon emissions across different metals.

However, the LME’s taking a deliberate approach to implementing a low-carbon pricing mechanism for nickel and other metals, given the still-evolving market for low-carbon metals.

“Our approach remains one of cautious optimism and pragmatic progression,” Hallett says. “We are committed to leading the industry towards a more sustainable future, understanding that real change is achieved not by rushing but by thoughtful, collective action.”