Jim's Oil & Mining Letter - April 13, 2025

Buy gold in the ground for $14 an ounce

• 2 million ounce gold resource in Finland

• 80,000 ounces/year gold production resuming in June

• Public listing planned for October on CSE

• Largest gold plant in Europe fully built and ready to start 

• Highly leveraged to rising gold price

Learn more

Canadian Gold (CGC.V STRRF 8S8.F) announced plans to double the size of its Phase 4 drill program at the Tartan Mine, located near Flin Flon, Manitoba, following the recent 5.9% equity investment by McEwen Mining (MUX MUX.TSX). The Phase 4 program will now total approximately 8,000 metres of diamond drilling in addition to the 23,683 metres completed since the last resource estimate in 2017. The expanded drill program is intended to significantly grow the resource base by targeting high-priority areas within the Main and South Zones. The program will: expand on the South Zone by targeting its depth extensions where the first deep exploration drill hole, drilled 170 metres vertically below the known mineralization, recently returned 6.1 grams per tonne gold over 6.0 metres and follow up on the newly discovered South Zone Hanging Wall Zone that has returned 29.1 grams per tonne gold over 5.9 metres and 8.4 grams per tonne gold over 2.0 metres; target the deeper extensions of the Main Zone, which remains open for expansion - limited drilling in this area has returned significant high-grade intercepts, including 12.0 grams per tonne gold over 8.0 metres and 12.7 grams per tonne gold over 3.4 metres; drill Main Zone's Western Flank where recent step-out drilling has intercepted 11.6 grams per tonne gold over 5.1 metres and 7.1 grams per tonne gold over 6.0 metres, extending the mineralization by a total of 60 metres to the west; and target the Main Zone's Eastern Flank which returned 19.4 grams per tonne gold over 4.5 metres and 9.7 grams per tonne gold over 4.2 metres. An updated NI 43-101 Resource Estimate and a Preliminary Economic Study is anticipated to be completed following Phase 4 drilling. These reports will provide critical data and insight to support the deliberations and decisions on a possible restart of the mine. In addition to McEwen Minings’s 5.9% interest, Robert McEwen, the founder and former CEO of Goldcorp, and Chairman and CEO of McEwen Mining, holds a 32% direct interest in Canadian Gold…more

Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced a drilling update for Prospect I, located onshore Namibia in Petroleum Exploration Licence 073. This is the company's largest prospect to be drilled so far, targeting 365 million barrels of unrisked and 32 million barrels of risked prospective light/medium oil resources, or 1.9 trillion cubic feet of unrisked and 140 billion cubic feet of risked prospective natural gas resources on a 100% working interest basis, based on the most recent prospective resources report prepared by Netherland, Sewell, & Associates. Per Brian Reinsborough, President and CEO, ReconAfrica remains on track to spud the well this quarter. Pre-construction activities are continuing on schedule and the pre-drill evaluation is complete. The company is targeting a drilling depth of 3,800 metres with the potential to drill deeper…more

NexGold Mining (NEXG.V NXGCF TRC.F) announced drill results from the ongoing 25,000-metre diamond drill program at the Goliath Gold Complex. Intercepts include 10.25 grams per tonne gold and 2.81 grams per tonne silver over 4.78 metres, including 80.30 grams per tonne gold and 13.60 grams per tonne silver over 0.53 metres in Goliath West and 1.71 grams per tonne gold and 11.47 grams per tonne silver over 6.02 metres, including 9.82 grams per tonne gold and 56.90 grams per tonne silver over 0.50 metres in Far East. Following the closing of a C$10 million bought deal private placement by issuing units at C$0.72 each, with warrants attached, the company also announced that it has entered into a corporate awareness agreement with Quantum Ventures for a fee of C$175,000 which will remain in effect for a period of 2 months from April 15, 2025…more

PetroTal (TAL.TSX PTALF PTAL.L SER1.F) announced operational and financial updates. Production averaged approximately 23,280 barrels of oil per day in Q1 2025, including a full quarter contribution from Block 131. Bretana Q1 2025 production averaged approximately 22,660 barrels of oil per day, a 17% increase on Q4 2024 and a 22% increase on Q1 2024. Total cash as of March 31, 2025 was $114 million. Per Manuel Pablo Zuniga-Pflucker, President and Chief Executive Officer, the operations team is hard at work preparing for two projects that will ramp up during the second quarter. The company is currently mobilizing equipment and steel components for the erosion control project, where field work should commence at Bretana next month and at Block 131, TAL is preparing a workover program at the Los Angeles field, before the new drilling rig arrives around mid-year…more

Heliostar Metals (HSTR.V HSTXF RGG1.F) announced additional results from a 12,500-metre drilling program at the La Colorada Mine in Sonora, Mexico. La Colorada restarted production in early January 2025 and the current drill program is intended to expand the mineral reserves ahead of an updated technical report and expansion decision planned for mid-2025. Highlights include 8.85 metres grading 25.0 grams per tonne gold and 768 grams per tonne silver, 8.55 metres grading 5.52 grams per tonne gold and 121 grams per tonne silver, and 3.5 metres grading 5.41 grams per tonne gold and 87 grams per tonne silver. Per the company, the success of this drill program has called for additional step-out drilling and results for these drill holes are expected in Q2 2025. A La Colorada technical report update incorporating these results is expected in mid-2025. The goal is for the study to support a decision to expand production to 50,000 to 100,000 ounces of gold per year. Additionally, the high-grades intersected demonstrate a potential underground future for the mine and Heliostar intends to target these deeper zones in more detail after the company completes the technical report…more

Arrow Exploration (AXL.V CSTPF AXL.L C1JT.F) announced an update on recent operational activity at the Tapir Block in the Llanos Basin of Colombia where the company holds a 50 percent beneficial interest. Production is now over 4,500 barrels of oil equivalent per day, with 2 horizontal wells drilled since the last update: CN HZ10 producing 1,183 barrels of oil equivalent per day gross (591 barrels of oil equivalent per day net); and CN HZ9, which is now on production. Since the February 5 update, the cash position has increased to $25 million, while drilling two horizontal wells in the period. Further production growth is expected in Q2 with drilling underway at CN11. Per the company, with a strong balance sheet and no debt or drilling commitments, Arrow has flexibility in its work program and is able to take advantage of any economic downturn with possible acquisition opportunities. Significant additional production is expected to be added prior to the end of the second quarter with planned development wells in the C7 and Ubaque reservoirs…more

Challenger Gold (CEL.ASX CLLEF) announced that the Mineral Resource Estimate for its Ecuador projects has doubled from 4.5 to 9.1 million ounces of gold equivalent and significant upside remains: the resource is based on drilling 5 of the 15 major anomalies, with all 13 anomalies drilled returning mineralisation. Completion of exploration in Ecuador enables the company to commence the value realisation process, including strategic divestment options. The project has a number of commercial advantages being among the largest undeveloped gold resources in South America, with a high grade core offering potential for early-stage production and strong cash flow generation in a strategic location adjacent to Lumina Gold’s 20.5 million ounce Cangrejos project and development ready infrastructure, located just 35 kilometres from a deepwater port, with existing power, water, and road access on granted mining leases. Challenger plans to unlock the value of its Ecuador assets through several strategic options: a separate TSX listing, a strategic sale or a farmIn partnership. The upgraded MRE concludes Challenger's exploration program in Ecuador, enabling the company to focus entirely now on advancing its Hualilan Gold Project in Argentina, which features a total resource of 2.8 million ounces gold equivalent, including a high-grade core of 1.5 million ounces at 5.6 grams per tonne gold equivalent…more

HyTerra (HYT.ASX HYTLF 8TP0.F) announced it has two firm wells in the drilling sequence for the Nemaha Project in Kansas. This marks the first steps for the company in executing a comprehensive 12-month exploration work program designed to unlock the potential of natural (white) hydrogen in Kansas. Murfin Drilling is on track to mobilise Rig 116 to the Sue Duroche 3 well location early next week, with spud expected days later. Murfin is one of the leading drilling companies in the Midwest now having drilled over 20,000 wells. Additionally, the aerial gravity-magnetic survey was successfully completed by New Resolution Geophysics and the initial results are said to be already supporting the company’s increased understanding of hydrogen and helium prospectivity for the Exploration Stage II drilling program…more

These are opinions only of the individual author. The contents of this piece do not contain investment advice and the information provided is for educational purposes only and no discussions constitute an offer to sell or the solicitation of an offer to buy any securities of any company. All content is purely subjective and you should do your own due diligence. No representation, warranty or undertaking, express or implied, as to the accuracy, reliability, completeness or reasonableness of the information contained in the piece is made. Any assumptions, opinions and estimates expressed in the piece constitute judgments of the author as of the date thereof and are subject to change without notice. Any projections contained in the information are based on a number of assumptions and there can be no guarantee that any projected outcomes will be achieved. No liability is accepted for any direct, consequential or other loss arising from reliance on the contents of this piece. The author is not acting as your financial, legal, accounting, tax or other adviser or in any fiduciary capacity.