Author: Staff Reporter

Today’s guest is James Campbell, the Managing Director Of Botswana Diamonds, a diamond exploration and development company operating in Botswana and South Africa.

James has spent over thirty years in the diamond industry in a variety of roles, and so has accrued during his experiences, a vast and fascinating wealth of knowledge, some of which he’ll be sharing on this week’s episode. The diamond industry is one of the lesser-known, and so this conversation will prove an insightful and endlessly interesting journey into and around the diamond industry.

KEY TAKEAWAYS

• James is drawn to diamonds on an emotional level. To him, diamonds represent all that’s good about humanity. Diamonds are the ultimate gift of love; the ultimate expression of love. 
• The assessment and exploration of diamond resources is one of the most technically challenging in commodity and resource development. To work in the sector, and to be successful, it is incumbent on operators to be experienced and knowledgeable.
• In diamonds, you have three different variables that must be measured: 
  • Volume 
  • Mass of the deposit
  • Grade – measured in karats per 100 tons
• Diamonds are not just for cosmetic use. They are also used for cutting tools (diamond dust), and are currently being used in computing (conductors). This means that diamonds are in ever-increasing demand.
• Fifty percent of the world’s diamonds are typically sold in America. Fifty percent of those are typically sold between Thanksgiving and Christmas. The economy there under Trump is doing extraordinarily well, and this is being reflected in the uptake of aspirational items.
• At the moment, Botswana Diamonds are focussed purely on Southern Africa: South Africa, Botswana and Zimbabwe. These are all relatively close to BD’s base in Johannesburg. James is the sole permanent employee of the company, and sees Southern Africa as the most prospective area in the world for diamond development.
• The two major countries for diamond development outside of Southern Africa are Russia and Canada. Russia contains the second-largest diamond mine in the world. Canada contains explorations by De Beers and Mountain Province. Also, Canada’s Toronto Stock exchange is extremely robust.

.BEST MOMENTS

‘Diamonds are the ultimate expression of love’

’The diamond market is cyclical, but the diamond market is not just one market’

‘As economies grow, so too does the demand for diamonds’

‘Like any mining environment, many of the jobs will be commoditised’

VALUABLE RESOURCES

Dig Deep – The Mining Podcast on iTunes

James Campbell LinkedIn – https://www.linkedin.com/in/jamesahcampbell/?originalSubdomain=za

Botswana Diamonds – http://botswanadiamonds.co.uk

ABOUT THE HOST

Rob Tyson is an established recruiter in the mining and quarrying sector and decided to produce the “Dig Deep” The Mining Podcast to provide valuable and informative content around the mining industry. He has a passion and desire to promote the industry and the podcast aims to offer the mining community an insight to peoples experiences and careers covering any mining discipline, giving the listeners helpful advice and guidance on industry topics.

Rob is the Founder and Director of Mining International Ltd, a leading global recruitment and headhunting consultancy based in the UK specialising in all areas of mining across the globe from first world to third world countries from Africa, Europe, Middle East, Asia and Australia. We source, headhunt and discover new and top talent through a targeted approach and search methodology and have a proven track record in sourcing and positioning exceptional candidates into our clients organisation in any mining discipline or level. Mining International provides a transparent, informative and trusted consultancy service to our candidates and clients to help them develop their careers and business goals and objectives in this ever-changing marketplace.

CONTACT METHOD

rob@mining-international.org

https://www.linkedin.com/in/rob-tyson-3a26a68/

www.mining-international.org

https://twitter.com/MiningConsult

https://www.facebook.com/MiningInternational.org

https://www.youtube.com/channel/UC69dGPS29lmakv-D7LWJg_Q?guided_help_flow=3

Labrador Gold Corp. (LabGold or the Company) has announced the signing of a property purchase agreement (Definitive Agreement) with New Found Gold Corp. (NFG). Under this agreement, NFG will purchase a 100 % interest in the Kingsway Project, including all associated property and mining rights, for 20,000,000 CAD (the Purchase Price).

Image Credit: SeventyFour/Shutterstock.com

This amount of money will be paid to LabGold upon delivery of the number of NFG Common Shares (Consideration Shares), which will be determined by dividing the Purchase Price by the NFG Common Shares’ closing price on the TSX Venture Exchange (TSXV). A resale restriction of four months and one day will apply to the Consideration Shares following the closing of the Transaction.

The LabGold team has worked hard over the last four years to generate and test targets along the prospective Appleton Fault Zone. This work resulted in the discovery of seven gold occurrences from the nine targets drill tested, a 78% success rate.

Roger Moss, President and Chief Executive Officer, Labrador Gold Corp.

Moss added, “As shown in the recently completed NI43-101 Technical Report, several untested targets remain on the property, in addition to potential extensions of many of the gold occurrences. However, we understand the significant amount of drilling required to make these discoveries and we are happy that New Found Gold is proposing to take up the challenge at Kingsway. We believe that their experience at Queensway to the south will be critical as they explore the Kingsway Project and demonstrate the true potential of the district.”

The unanimous recommendation of LabGold’s board of directors is that LabGold’s shareholders approve the transaction. The LabGold directors and officers have entered into voting and support agreements with NFG, whereby they have committed to voting their shares in favor of the Transaction, among other things.

Expected to close in the third quarter of 2024, the transaction is subject to customary conditions, such as obtaining required regulatory and stock exchange approvals and receiving approval from 66 2/3 % of LabGold shareholders voting in the company’s upcoming annual general and special meeting, which is scheduled for early July 2024.

The Definitive Agreement has standard clauses for deal protection. LabGold has pledged not to approach or start a conversation about any other merger or acquisition. LabGold shall pay NFG a termination fee of $500,000 if LabGold lawfully terminates the Definitive Agreement to accept a Superior Proposal (as defined in the Definitive Agreement).

Source: https://labradorgold.com/

G Mining Ventures Corp. (“GMIN”) (TSX: GMIN) (OTCQX: GMINF) and Reunion Gold Corporation (“RGD”) (TSXV:RGD) (OTCQX:RGDFF) are pleased to announce they have entered into a definitive agreement (the “Agreement”) to combine the two companies, setting the stage for the creation of a leading intermediate gold producer (the “Transaction”).

Through the Transaction, GMIN will acquire RGD’s flagship Oko West Project located in Guyana, within the Guiana Shield region, one of the most attractive mining jurisdictions in South America. Oko West has emerged as a globally significant gold discovery over the last few years, with excellent potential to become a top tier deposit that could support a large, long-life mine complex to accelerate GMIN’s vision of building a leading intermediate gold producer. The GMIN team, including through the Gignac Family-owned G Mining Services (“GMS”), has an impressive track-record of executing world-class projects in the Guiana Shield region to generate industry leading returns for its stakeholders.

GMIN plans to move Oko West quickly through technical studies to a construction decision, leveraging the considerable amount of exploration, development, and permitting work that has already been completed by RGD, supported by the expected free cash flow from the Tocantinzinho Gold Project (“Tocantinzinho” or “TZ”), which is trending on schedule and on budget for commercial production in the second half of 2024. The Transaction sets the stage for the creation of an Americas focused leading intermediate gold producer.

Under the terms of the Agreement, GMIN and RGD shareholders will receive common shares of a newly formed company (the “New GMIN”) equivalent to RGD shareholders being issued 0.285 GMIN common shares for each RGD common share. In addition, RGD shareholders will receive common shares in a newly created gold explorer (“SpinCo”) that will hold all of RGD’s assets other than Oko West. GMIN has agreed to fund SpinCo with $15 million.

RGD shareholders will receive estimated consideration of $0.65 per RGD common share, an estimated Transaction equity value of $875 million, based on the closing price of GMIN common shares on the Toronto Stock Exchange (“TSX”) on April 19, 2024, excluding the value of the SpinCo consideration. This represents a premium of 29% based on GMIN’s and RGD’s closing price and 10-day VWAP on the TSX and TSX Venture Exchange (“TSXV”) as at April 19, 2024, respectively, without accounting for value of SpinCo.

Upon completion of the Transaction, existing GMIN and RGD shareholders will own approximately 57% and 43% of the combined company on a fully-diluted in-the-money basis prior to the concurrent US$50 million equity financing, and the combined company and RGD shareholders will own 19.9% and 80.1%, respectively, of the outstanding common shares of SpinCo.

Transaction Highlights

• Sets the stage for the creation of an Americas focused leading intermediate gold producer
  • Oko West is one of the most significant gold discoveries in the Guiana Shield and has potential to support a large, long-life mine complex.
  • Tocantinzinho is 87% complete, and trending on schedule and on budget for commercial production in H2-24 and is engineered to produce ~200,000 gold ounces per year for the first five years at an attractive lowest quartile AISC.
• Best in-class management team ideally positioned to unlock value of Oko West through in-house execution
   
  • The GMIN team, including through the Gignac Family-owned GMS, has an impressive track-record of executing world-class projects in the Guiana Shield region, on or ahead of schedule and on or below budget, to generate industry leading returns for its stakeholders.
  • The principals of GMS have been continuously involved in the region since Louis Gignac led Cambior Inc. to build its first South American operation in Guyana in the early 1990s.
  • The most recent significant gold mine constructed in the Guiana Shield region, the Merian gold mine operated by Newmont Corporation, was built by GMS, coming in ahead of schedule and under budget, operating at higher than feasibility study capacity.

• De-risked growth profile to accelerate development of Oko West through anticipated cash flow and funding
  • Strong balance sheet and anticipated strong cash flow generation from TZ, starting during a period of record high commodity prices, will fund development of Oko West to minimize additional equity dilution for shareholders going forward.

• Supportive shareholder base with shared vision for growth and value creation
  • La Mancha Investments S.à r.l. (“La Mancha”) will exercise its existing anti-dilution right in connection with the Transaction and will subscribe for US$25 million, which may be increased to US$35 million at La Mancha’s sole discretion, of common shares of GMIN.
  • La Mancha also intends to purchase up to an additional US$10 million of GMIN shares in the open market.
  • Franco-Nevada Corporation (“Franco-Nevada”) has agreed to subscribe for US$25 million of common shares of GMIN on the same terms as La Mancha.

• Compelling re-rate potential driven by multiple near-term catalysts and enhanced capital markets profile
  • GMIN plans to move quickly through technical studies to a construction decision, leveraging the considerable amount of exploration, development, and permitting work that has already been completed by RGD, and the unique capabilities of the GMIN and GMS teams.
  • GMIN has the opportunity to earn a premium valuation based on outstanding project execution at TZ and going forward at Oko West.
  • Combined entity with strong growth profile is expected to have greater scale, investor following, trading liquidity, and opportunity for index inclusion.

• Creates a strong Americas focused platform positioned for further growth
  • Ideally positioned to spearhead further regional consolidation leveraging strong regional platform.
  • Continues GMIN’s strategy of building an Americas focused intermediate gold producer through its Buy, Build, Operate Strategy.

Louis-Pierre Gignac, CEO, President and Director of GMIN, stated: “Oko West has all the key attributes GMIN is looking for in its next leg of growth. We are well-positioned to accelerate value creation at Oko West leveraging our unique expertise in building and operating mines on schedule and on budget in the Guiana Shield, deep knowledge of and network in the region, and over US$480M anticipated near-term free cash flow from Tocantinzinhoⁱ. The acquisition of Oko West is the second step towards our vision of becoming a leading intermediate gold producer, building on the team’s success at Tocantinzinho. We look forward to continuing to advance our “Buy. Build. Operate.” strategy to create and unlock further value for GMIN shareholders.”

Rick Howes, CEO, President and Director of RGD, stated: “We are very pleased to announce this Transaction today, which we believe is a testament to the outstanding work our team has done rapidly discovering and advancing Oko West over the last few years. We believe that this Transaction not only delivers our shareholders an attractive upfront premium, but also the ability to participate with significant ongoing ownership in the combined company, having the opportunity to participate in an expected future re-rating as Oko West is advanced towards production. The Transaction significantly de-risks the advancement of Oko West given the financial strength, free cash flow, and development capabilities that GMIN brings to the table. Importantly, we believe this is a great outcome for the country of Guyana, with Oko West being taken forward by a company that will be a great steward of the asset for the benefit of the country and its communities.”

Benefits to GMIN Shareholders

• Oko West has emerged as a top tier deposit that could support a large, long-life mine complex, sequenced to benefit from TZ’s robust free cash flow.
• Strengthens portfolio and positions GMIN to execute on its strategy of building the next intermediate gold producer leading to further re-rate potential and index inclusion.
• Management ideally positioned to unlock value of Oko West, leveraging systems, equipment, expertise and team from TZ to accelerate development timeline.
• Provides asset diversification and improves GMIN’s long-term production and cash flow profile.
• Provides an expanded platform for continued growth in the Americas with participation in a SpinCo focused on exploration in the Guiana Shield.

Benefits to RGD Shareholders

• Significant upfront premium of 29% based on GMIN’s and RGD’s closing price and 10-day VWAP on the TSX and TSXV as at April 19, 2024, respectively, without accounting for value of SpinCo.
• 43% ownership in an emerging intermediate gold producer, with a strong track-record of value creation and share price outperformance.
• Significant continued exposure to Oko West’s future operational profile and exploration upside, coupled with lower execution and funding risk.
• Strong balance sheet and anticipated strong cash flow generation from TZ, starting during a period of record high commodity prices, will fund development of Oko West with minimal additional equity dilution going forward.
• Participate in the substantial exploration upside at TZ from the 996km² land package.
• Continued exposure to RGD management’s substantial exploration knowledge, expertise and local connections, providing the opportunity to uncover additional new discoveries through SpinCo which will have $15 million in funding.

La Mancha Equity Investment

La Mancha will exercise its existing anti-dilution right in connection with the Transaction and as such has entered into a subscription agreement (the “Subscription Agreement”) with GMIN pursuant to which La Mancha will subscribe for US$25 million, which may be increased to US$35 million at La Mancha’s sole discretion, of common shares of GMIN immediately prior to closing of the Transaction (the “Subscription”).

La Mancha also intends to purchase up to an additional US$10 million of GMIN shares in the open market. GMIN has agreed to temporarily waive La Mancha’s standstill obligation, allowing La Mancha to increase its ownership beyond 25.0% until the closing of the Transaction, or termination of the Subscription Agreement. La Mancha’s decision to make purchases of GMIN shares will be at its discretion and will be subject to market conditions, the price of GMIN shares and applicable securities law and stock exchange requirements.

Following completion of the Transaction, it is expected that La Mancha’s shareholding will decrease from approximately 25% in GMIN to approximately 18.7% in New GMIN (calculated on a basic shares outstanding basis).

Vincent Benoit, Managing Partner & Co-Chief Investment Officer of La Mancha Resource Capital LLP, stated: “La Mancha has a long track-record of successful investments in consolidating gold mining assets. A good example is our transformative involvement with Endeavour Mining, which evolved from a junior operator into a highly profitable senior gold producer across multiple sites in West Africa. In July 2022, we acquired a 25% stake in GMIN, guided by our strategy to back an accomplished management team in their goal to become a leading intermediate gold producer in the Americas. This decision capitalized on their exceptional expertise in financing, building, and managing mining operations. Since our investment, the GMIN stock has surged by almost 200%, affirming our investment strategy. We are excited about the potential further growth through the strategic merger of GMIN and RGD.”

The closing of the Subscription is expected to occur immediately prior to the closing of the Transaction and is subject to TSX approval and certain other conditions being met, including confirmation that GMIN and RGD are ready to proceed with the closing of the Transaction. The price per GMIN common share under the Subscription is expected to be $2.28, being the 5-day volume weighted average price of GMIN’s common shares on the TSX as of April 19, 2024, subject to possible TSX adjustments.

The existing investor rights agreement between GMIN and La Mancha will be terminated upon closing of the Transaction and replaced by a new investor rights agreement to be entered into between New GMIN and La Mancha on substantially the same terms. Under the new investor rights agreement, La Mancha will continue to be entitled to nominate two directors to New GMIN’s Board of Directors, as long as it holds a minimum of 15% of New GMIN’s outstanding common shares, and maintain customary anti-dilution, registration, and information rights with respect to New GMIN.

The Subscription is considered to be a “related party transaction” for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). GMIN is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 with respect to the Subscription, in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the Subscription is not more than the 25% of GMIN’s market capitalization.

Franco-Nevada Equity Investment

Franco-Nevada will subscribe for US$25 million of common shares of GMIN immediately prior to closing of the Transaction (the “Franco-Nevada Subscription”). Following completion of the Transaction, it is expected that Franco-Nevada’s shareholding will decrease from approximately 9.9% in GMIN to approximately 7.2% in New GMIN (calculated on a basic shares outstanding basis).

The closing of the Franco-Nevada Subscription is expected to occur immediately prior to the closing of the Transaction, and is subject to TSX approval and certain other conditions being met, including confirmation that GMIN and RGD are ready to proceed with the closing of the Transaction. The price per GMIN common share under the Franco-Nevada Subscription will be the same as under the La Mancha subscription.

SpinCo

SpinCo’s focus will be on acquiring and exploring gold mineral properties in Guyana outside of a 20-km area of interest surrounding Oko West, and in Suriname. GMIN has agreed to fund SpinCo with $15 million and in return the combined company will obtain a 19.9% interest in SpinCo. The combined company and SpinCo will enter into an investor rights agreement, which will provide to the combined company certain customary investor and other rights, including the right to nominate one director to SpinCo’s Board.

Transaction Summary

The Transaction will be completed pursuant to a court-approved plan of arrangement under the Canada Business Corporations Act. To effect the Transaction, New GMIN will acquire all of the issued and outstanding shares of GMIN and RGD. New GMIN, to be renamed G Mining Ventures Corp., will apply for listing on the TSX.

The number of common shares issued by New GMIN to GMIN and RGD shareholders will be equivalent to the combined company undergoing a 4-to-1 share consolidation upon closing of the Transaction (0.25 New GMIN common shares will be issued for each GMIN common share and 0.07125 New GMIN common shares will be issued for each RGD common share (the “Exchange Ratio“)).

RGD will be entitled to nominate two members to the board of directors of New GMIN, in addition to the appointment of the common director, David Fennell, to the newly created role of Vice Chairman. New GMIN’s board of directors is expected to comprise a total of 9 members (5 GMIN nominees, 3 RGD nominees and 1 La Mancha nominee), including Louis Gignac as Chairman and Louis-Pierre Gignac as director, president, and CEO.

The Transaction will be subject to approval of at least 66^2/3% of the votes cast by GMIN shareholders, as well as, to the extent required under applicable law, the approval of a simple majority of disinterested shareholders, voting at a special meeting of GMIN shareholders, and at least 66^2/3% of the votes cast by RGD shareholders, 66^2/3% of the votes cast by RGD shareholders and optionholders, voting together as a single class, as well as, to the extent required under applicable law, the approval of a simple majority of disinterested shareholders, voting at a special meeting of RGD securityholders. The Transaction is expected to be completed in Q3 2024, subject to the receipt of required securityholder, court and TSX approvals and other closing conditions customary in transactions of this nature.

The Agreement includes reciprocal deal protections and a reciprocal $31.2 million termination fee payable under certain circumstances.

Voting Support Agreements

Directors and members of senior management of RGD and La Mancha, as well as two subsidiaries of, and a trust controlled by, Dundee Corporation, who in the aggregate own approximately 29% of RGD’s common shares outstanding, have entered into voting support agreements pursuant to which they have agreed to vote their shares in favor of the Transaction, subject to the terms thereof.

Additionally, directors and members of senior management of GMIN, as well as GMIN’s three largest shareholders, La Mancha, Eldorado Gold Corporation, and Franco-Nevada, who in aggregate own approximately 60% of GMIN’s common shares outstanding, have entered into voting support agreements pursuant to which they have agreed to vote their shares in favor of the Transaction.

Boards of Directors’ Recommendations

The Agreement has been unanimously approved by the disinterested Directors of the Boards of GMIN and RGD following the unanimous recommendations of each of the Special Committees of independent directors of GMIN and RGD (each, a “Special Committee”). The disinterested Directors of the Boards of GMIN and RGD each unanimously recommend that their respective shareholders vote in favour of the Transaction.

RBC Capital Markets Inc. and Cormark Securities Inc. have each provided a fairness opinion to the Board of Directors and the Special Committee of GMIN, stating that, as of the date of such fairness opinion, and based upon and subject to the assumptions, limitations and qualifications stated in such fairness opinions, the consideration to be received by the GMIN shareholders under the Transaction is fair, from a financial point of view, to such GMIN shareholders.

BMO Capital Markets has provided an opinion to the Special Committee and the Board of Directors of RGD, stating that as of the date of such opinion, based upon and subject to the assumptions, limitations and qualifications set forth therein, the Exchange Ratio is fair, from a financial point of view, to RGD shareholders. SCP Resource Finance has provided an opinion to the Special Committee and the Board of Directors of RGD, stating that as of the date of such opinion, based upon and subject to the assumptions, limitations and qualifications set forth therein, the consideration to be received by RGD shareholders under the Transaction is fair, from a financial point of view, to RGD shareholders.

This press release is not intended as, and does not constitute a solicitation of proxies or votes in connection with the requisite RGD securityholder and GMIN shareholder approval of the transaction. Further information will be included in information circulars that RGD and GMIN will each prepare, file and mail in due course to their respective securityholders in connection with their respective securityholder meetings to approve the transaction.

Advisors and Counsel

RBC Capital Markets is acting as financial advisor to GMIN and its Board of Directors. Blake, Cassels & Graydon LLP is acting as GMIN’s legal advisor.

BMO Capital Markets is acting as financial advisor to RGD and its Board of Directors. Stikeman Elliott LLP is acting as RGD’s legal advisor. SCP Resource Finance acted as financial advisor to RGD’s Special Committee.

Norton Rose Fulbright Canada LLP is acting as La Mancha’s legal advisor.

Conference Call and Webcast

GMIN and RGD will host a joint conference call and webcast on Monday, April 22, 2024 at 8:30 a.m. Eastern time for members of the investment community to discuss the Transaction. Participants may join the conference call using the following call-in details:

• Local and international: 1-800-836-8184
• Toronto: 1-289-819-1350

A live webcast of the conference call will be available at https://app.webinar.net/qGlg7yL1brD

A replay of this conference call will be available until April 29, 2024. The replay numbers are:

• Local and international: 1-888-660-6345
• Toronto: 1-289-819-1450
• Replay passcode: 25491#

Source: https://www.gminingventures.com/en-US/

Nevada Lithium Resources Inc. (CSE: NVLH; OTCQB: NVLHF; FSE: 87K) (“Nevada Lithium” or the “Company”) is pleased to provide an update on the proposed Hydraulic Borehole Mining (“HBHM”) mining method proposed to extract high-grade mineralized material at its 100% owned Bonnie Claire lithium project (the “Project” or “Bonnie Claire”), located in Nye County, Nevada. The Company is also pleased to announce the commencement of an updated Preliminary Economic Assessment (“PEA”) on the Project.

Highlights:

• Kinley Exploration LLC (“Kinley”) has provided a working model based on HBHM that successfully extracts mineralized slurry between 1500ft and 2500 ft at Bonnie Claire
• Model focuses on extraction of previously intersected high-grade mineralization, illustrated by Hole BC2303C, which intersected 4,154 ppm Li over 680ft (see the Company’s news release dated February 27, 2024), and currently open in several directions
• Operating production cost estimated to be USD $ 14.28/ton, based on continuous mining rate of 100 tons per hour per mining unit
• Confidence that HBHM can access depths greater than 2,500 feet, as high-grade mineralization has been intersected below this depth
• Economics to be incorporated in updated PEA to be released summer 2024

Background

At Bonnie Claire, lithium mineralization occurs within very fine-grained, volcaniclastic sediments. These sediments are almost 3,000 feet in thickness, and partially lithified for much of that depth. The resulting ground conditions of these rocks are not ideally suited to conventional underground mining methods. This has been addressed by proposing the innovative HBHM method. While this method has been used elsewhere, Bonnie Claire would see its use in the Great Basin for the first time.

Kinley Exploration LLC

The Company has engaged Kinley to work with the Company’s external consultants, Global Resource Engineering, Ltd. (“GRE”), to evaluate the application of HBHM technologies at the Bonnie Claire lithium deposit. The objective of this work is to establish a reasonable economic mining strategy to extract lithium in a continuous, cost effective and safe manner. The work focused on the zone of high-grade mineralization intersected from 1,500 feet to 2,500 feet depth, illustrated by Hole BC2303C, which intersected 4,154 ppm Li over 680ft (see the Company’s news release dated February 27, 2024).

Kinley is an expert and world leader in Hydraulic Borehole Mining and is well respected internationally in its capacity to operate complex drilling programs and technology applications in the Oil, Mining and Geoscientific sectors. The company owns, develops, and practices proprietary mining technology with multiple patents and operational intellectual property methods specific to HBHM.

Bonnie Claire HBHM Layout

HBHM is a surface-based mining method that uses a high-pressure water jet to disaggregate the mineralized material and evacuate the resulting slurry back to surface. Previous models at Bonnie Claire have used vertical primary production wells arranged in a honeycomb pattern. After processing, material was backfilled with concrete, to minimize surface disturbance.

Further discussions between the Company, Kinley and GRE have suggested that mineralized material may behave in a plastic manner & flow toward the production wells during extraction, which should increase the efficiency of the method. The current model combines an array of “Jet Wells” arranged within the targeted resource section and a single “Production Well” located outside the section, drilled and cased to the base of the section.

The proposed initial layout is outlined below, and illustrated in Figure 1.

• (1) Directionally drilled Production Well offset 280 feet from Mined section center;
• (32) “Jet” Wells centered and spaced within a 280-foot diameter surveyed section;
• Jet Wells cased and cemented to 1,500 then mined 1,500 to 2500 feet;
• Production well drilled and cased to 2,500 feet;
• Mineralized material between Jet Wells, when excited will flow to intake
• Number of Jet Wells may be reduced in future based on caving and pilot findings

The current mining application considered is to directionally drill a single large diameter Production Well centered under the targeted resource section to be mined (see image below). The well is drilled with a 280-foot offset from center of the target section. Construction of the Production Well would be to case the well to within 20 to 60 feet of the projected bottom of the target section. The bottom section will then be mined out to open an initial cavity. This directionally drilled well will be primarily vertical and turned under the center of the resource.

Next a series of “Jet” Wells will be drilled and cased to 1,500 feet in a mining pattern with engineered spacing to maximize the plastic flowing condition of the mineralized material between the wells. These will be centered and patterned above the Production Well. These wells will be drilled vertically in a 280-foot diameter section. The Jet Wells will be pilot drilled to total depth, and then jetted to initiate caving into the Production Well for pumping to the surface. A continuous hydraulic cutter, mounted on the intake of the Production Well will assist in slurrying the mineralized material.

Lifting Mineralized Material to Surface

Kinley has determined that the most economic lifting method for the targeted mining depth will be hydraulic airlift. This low energy method lifts by reverse flood pumping as slurry is lifted to surface with two-phase pumping. Air is injected in the internal slurry stream reducing the density of the fluid, and the weight of the annular fluid causes flow down the annulus and a vacuum is created at the intake of the Production Well.

Jetting Wells and Flow

Kinley has modelled 32 Jet Wells at Bonnie Claire; this number may potentially be decreased once the rate of flow of the mineralized material to the intake has been determined based on velocity and caving characteristics. Based on continuous mining at 100 tons per hour, the entire cavity would take approximately 4.25 years to extract. This work is completed without the requirement to move the Production Rig to a new operating platform location.

This mining strategy and method assumes that the cavity will not stay open long term and will not require backfill
with the caverns, such as pumped tailings from processing or cementing. Based on geotechnical advice, the Company has assumed that caving or flow of mineralized material to the intake will occur and lead to increased production.

Summary

The factors applied to the modeled method are a combination of estimated parameters, experiences in similar resource projects, and discussions with Bonnie Claire’s advisor, Global Resource Engineering. Kinley estimates that the Production Mining unit and the Jet Mining unit can achieve a continuous mining rate of 100 tons per hour of mineralized material production with an operating cost of USD $ 14.28/ton based on the current detailed cost input estimates.

Access to Depths > 2,500 ft

The current HBHM model has focused on high grade mineralization that has been intersected between 1550 and 2500 ft. High-grade material has been intersected down to 2780 in at least one hole (see the Company’s news release dated November 20, 2023), and the Company asked Kinley to comment on the application of the method at greater depths.

Kinley has concluded that the Hydraulic Borehole Mining method can successfully access material deeper than 2,500 ft. Hydraulic Airlift pumping is commonly used in drilling industrial large diameter wells up to 5,000 feet in undersea mining and in dredging applications. Therefore, hydraulic airlifting material from 3,000 ft is considered achievable with this mining strategy.

Increased OPEX above that identified in the economic model would occur as depths past 2,500 feet are mined. However, the presence of high-grade lithium mineralization at Bonnie Claire below 2,500 ft suggests a favorable trade-off in increased revenues versus increased costs. The Company will continue to study the impact of increasing the anticipated mining depth to include mineralization from 2,500 to 3,000 ft.

Bonnie Claire Hydraulic Borehole Mining Pilot

Kinley has recommended a pilot study to examine the practicality of HBHM at Bonnie Claire. The Pilot is based on a single well cased to 2,200 feet. The driller will drill another pilot 150 feet away from the casing shoe to 2,350 feet and the pilot mining program will be conducted through the target mineralized material section between 2,200 and 2,350 feet.

Preliminary Economic Assessment Update

The Company is pleased to announce that it has asked GRE to commence an update to its 2021 PEA. It is anticipated that the new PEA will include

• A new restated mineral resource estimate, including 2022 and 2023 drilling, which will include the lower high-grade mineralization, such as Hole BC2303C, which intersected 4,154 ppm Li over 680ft (see the Company’s news release dated February 27, 2024),
• Detailed modelling of the hydraulic mining method, including productions rates, CAPEX and OPEX input, and projected water usage
• Updated metallurgical work demonstrating the ability to produce battery-grade lithium carbonate at the scale of a bulk sample (300kg) of mineralized sediment
• An updated economic model, including CAPEX, OPEX, NPV, mine life and payback

Much of the work to be included has been completed, and GRE have estimated that the new PEA can be completed in summer 2024. The resulting technical report will replace the Company’s existing 2021 PEA (detailed below).

Retention of Market Maker

Subject to the receipt of approval by the Canadian Stock Exchange (“CSE”), the Company has retained Generation IACP Inc. (“Generation”) to provide market making services with the objective of maintaining a reasonable market and improving the liquidity of Nevada Lithium Resources’ common shares (the “Shares”).

Under the issuer trading services agreement between Generation and Nevada Lithium (the “Agreement”), the Company has agreed to pay Generation a monthly fee of CAD $7,500 plus applicable taxes. The initial term of the Agreement is six months, and such term will be automatically renewed for subsequent six-month periods unless terminated earlier by 30 days prior written notice. Commencing on the first anniversary of the Agreement, the fee payable to Generation will automatically increase annually by 3.0%. Notwithstanding the foregoing, Generation shall have the right to terminate the Agreement at any time upon prior written notice. Generation will not receive any Shares or options as compensation.

Nevada Lithium and Generation are unrelated and unaffiliated entities. Generation has informed the Company that it does not currently own any securities of Nevada Lithium; however, Generation and its clients may acquire a direct interest in the securities of the Company.

Generation is a Toronto-based, independently owned investment dealer providing innovative solutions for institutional, corporate, and individual clients in Canada and abroad. Established in 1998, Generation is a member of the Investment Industry Regulation Organization of Canada and a member firm of the Toronto Stock Exchange and the TSXV.

Source: https://nevadalithium.com/

Solaris Resources (TSX:SLS)(NYSEAmerican:SLSR) is gearing up for its debut on the NYSE American. The move involves the discontinuation of its listing on the OTCQB Venture Market, transitioning the trading of its common shares to a more prominent platform under the new ticker symbol “SLSR” starting April 19, 2024. This strategic shift aims to provide Solaris with enhanced visibility and accessibility to a broader base of institutional and retail investors.

The company, which will continue to be listed on the Toronto Stock Exchange under the ticker “SLS”, does not require its shareholders to take any immediate actions regarding this transition. However, those who have purchased shares through the OTCQB are advised to check their accounts to ensure their holdings are updated with the new ticker symbol following the change.

Recent Developments and Strategic Investments

Earlier this year, on January 11, Solaris announced a significant financial boost through a private placement investment from Zijin Mining Group Co., Ltd., amounting to approximately $130 million. This deal resulted in the issuance of over 28 million common shares at a price of $4.55 each, a 14% premium over the closing price on the TSX the day before the agreement was finalized. This transaction marked a substantial endorsement from Zijin, which now holds about 15% of Solaris’ common shares on a fully diluted basis.

Daniel Earle, President and CEO of Solaris, praised the partnership, highlighting Zijin’s remarkable growth and expertise in the mining sector, which spans across 16 countries. The collaboration is set to advance the development of Solaris’s flagship Warintza Project in southeastern Ecuador, with funds also earmarked for general corporate purposes.

The closing of the private placement is contingent upon several conditions, including approvals from the TSX, under the Investment Canada Act, and from relevant authorities in China. Furthermore, the agreement grants Zijin the right to nominate a director to Solaris’s board as long as it maintains at least a 5% shareholding. Zijin also secures rights to maintain its ownership percentage through future securities purchases under specific conditions.

Trilateral Cooperation for Community Development

Additionally, on March 1, Solaris Resources further demonstrated its commitment to sustainable practices by entering a trilateral cooperation agreement aimed at supporting the Shuar communities in Ecuador. This initiative, involving the Interprovincial Federation of Shuar Centers and the Alliance for Entrepreneurship and Innovation, focuses on various developmental programs ranging from health and education to sustainable mining practices.

The collaboration aligns with ongoing efforts to promote economic and social advancement within these indigenous territories, which are integral to the Warintza Project’s success. The comprehensive support from this agreement encompasses health care, education, and business development programs tailored to the needs of the Shuar people, fostering a supportive relationship between the corporation and the community.

As Solaris Resources transitions to a new stage of corporate and community development, the company remains focused on leveraging strategic partnerships and maintaining its commitment to sustainable mining practices, positioning itself for future growth in the global mining sector.