Jim's Oil & Mining Letter - May 25, 2025

This Company with a pre-money valuation of only C$3million is completing a C$2 million seed equity raise for the restart of the fully permitted Gold Road mine in Arizona, USA. The current low company valuation offers near-term potential for a significant re-rating from the production start, a public quotation, and an additional one million ounces of gold exploration upside. 

The cost to build Gold Road from scratch today would be close to $100 million and management plans to grow production to 20,000 ounces of gold per year in 2025/26, which in a strong gold price environment could lead to a US$40+ million annual profit/EBITDA in 2026. Management has a proven track record and plans to go public in Q1 2026. 

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Pantheon Resources (PANR.L PTHRF P3K.F) announced the completion of flow testing of the Megrez-1 well. Two intervals in the Lower Sagavanirktok 3 Formation at 4,830–4,850 feet and 4,930–4,950 feet produced over 2,000 barrels of liquid per day but no mobile oil or gas. Megrez-1 was shut in on 20 May 2025 and is suspended indefinitely pending further evaluation of the results, which are said by the company to have no impact on the already certified 1.57 billion barrels of marketable liquids and 6.6 trillion cubic feet of natural gas resources at Ahpun and Kodiak. The forward programme includes advancing Ahpun field development to achieve cash-flow self-sufficiency and $5/barrel value recognition by 2028, and planning the Dubhe-1 demonstration well for summer 2025…more

Torex Gold Resources (TXG.TSX TORXF 73GN.F) announced the remaining 2024 and initial 2025 drilling results from its ELG Underground project, which delivered notable high-grade intercepts, including 12.18 grams per tonne gold equivalent over 26.4 metres and 43.68 grams per tonne gold equivalent over 10.3 metres, confirming continuity in the central and north zones. Step-out drilling along the El Limón West trend returned significant results (as an example, 8.98 grams per tonne gold equivalent over 35.8 metres; 19.57 grams per tonne gold equivalent over 2.2 metres), indicating mineralization remains open along strike and at depth. Torex has allocated $12 million and four rigs to drill 48,000 metres at ELG Underground in 2025, aiming to expand inferred resources and replace mined reserves across multiple mineralized trends. Results support the company’s objective of extending ELG Underground mine life and sustaining Morelos Complex production above 450,000 gold equivalent ounces per year well beyond 2030…more

HyTerra (HYT.ASX HYTLF 8TP0.F) has commenced drilling at its Blythe 13-20 well in Kansas, targeting a new natural hydrogen play near historic high-hydrogen occurrences. The well spudded on May 20 with Murfin Rig 116 as the second of two firm wells in HyTerra’s 100% owned Nemaha Project. The well targets a new natural hydrogen play near the historic Scott-1 well, which reported up to 56% hydrogen in the sedimentary section. Objectives include drilling sedimentary and Pre-Cambrian basement sections, confirming hydrogen/helium presence via mud gas logging and laboratory analysis, and characterizing reservoir quality. The campaign has an option to drill a third well at the company’s discretion, with drilling, logging and sampling expected to take 3–4 weeks…more. Further news reported that the Sue Duroche 3 exploration well produced mud gas samples with up to 96% hydrogen and 5% helium, among the highest concentrations reported in the US. The well is now a long-term monitoring site to inform the next phase of the Nemaha Project exploration program…more

Perpetua Resources (PPTA PPTA.TSX 9MIB.F) announced that the United States Army Corps of Engineers has issued the company's Clean Water Act Section 404 permit for the Stibnite Gold Project. With receipt of this permit, Perpetua is focused on finalizing the remaining state permits and securing project financing needed to begin construction. The Stibnite Gold Project is positioned to deliver significant environmental and economic benefits to rural Idaho while enhancing US national security. The project is projected to be one of the highest-grade open-pit gold mines in the United States, with gold reserves of approximately 4.8 million ounces, and is expected to produce approximately 450,000 ounces of gold annually over its first four years of production. Additionally, the project holds an estimated 148-million-pound antimony reserve — the only identified antimony reserve in the US and one of the largest reserves outside of Chinese control…more

Top End Energy (TEE.ASX) announced the appointment of Amvest Capital Securities to provide corporate advisory services in North America. Amvest is a New York-based corporate finance and asset management group focused on natural resources and will work with TEE’s US-based CEO in building the company’s US investor base through roadshows and webinars targeting cornerstone investment and strategic partners. Amvest will also guide the company in launching an American Depositary Receipt to allow US investors to directly trade TEE, with the listing targeted for Q3 2025. Per Luke Velterop, Chief Executive Officer, interest is already flowing, and the company has an opportunity to complement its Australian following by accessing one of the world’s largest pools of energy-focused capital. While natural hydrogen is gaining traction in Australia and Canada, American investors have very limited access to public options. TEE aims to close that gap and provide an easy on-ramp at a time when its Serpentine project is attracting growing interest…more

Aya Gold & Silver (AYA.TSX AYASF 0HE1.F) announced high-grade silver intersections at its Zgounder mine, including 3,279 grams per tonne silver over 8 metres and 1,640 grams per tonne silver over 12.6 metres at depth. It also identified multiple regional targets around Zgounder with anomalies up to 178 grams per tonne silver, 10.3 grams per tonne gold and 4.4% copper. Additional intercepts in the Central Zone (5,297 grams per tonne silver over 4.0 metres) and open-pit area (1,123 grams per tonne silver over 6.0 metres) further demonstrate high-grade mineralization. A total of 7,122 metres have been drilled in the 2025 exploration program to date, with three rigs operating and further results expected…more

ADX Energy (ADX.ASX ADXRF GHU.F) announced it has formalised licence variations to optimise its Upper Austrian acreage for low-risk shallow gas targets and matured four 100%-owned drill-ready prospects, with seven additional prospects under development. Planning and permitting for Q4 2025 drilling have commenced alongside farm-in discussions to secure co-investment. There has been a formal amendment of the ADX-AT-I/II licence areas to focus on low-risk, pipeline-proximal shallow gas targets across 1,022 km2 and advanced seismic analysis has matured 13 prospects, including four 100%-owned drill-ready targets, two 50%-owned targets, and seven further prospects under maturation. Drilling of the first cluster, GOLD, ZAUN and GRAB with 11 billion cubic feet best-case, is planned for Q4 2025, utilising shared infrastructure to reduce costs. Meanwhile, farm-in discussions are underway using ADX’s partnership model to secure co-investment and fund the 2025 drilling programme…more

Kali Metals (KM1.ASX 6OB.F) announced that it has entered into a binding agreement to acquire exploration licence E45/6389, adding 28.8 km2 to its Marble Bar Gold Project and expanding total tenure to ~96 km2. The new tenement borders existing tenure on three sides and lies along strike of a 9.5 kilometre gold-in-soil anomaly with rock chip values up to 4.0 grams per tonne gold. Consideration comprises $20,000 cash plus 3.5 million ordinary shares, with an additional 3.5 million shares each upon discovery of greater than 100,000 ounces and a greater than 250,000 ounce JORC gold resources at a 0.5 grams per tonne cutoff within four years. Heritage arrangements are in place, exploration will commence immediately, and Kali has collected 299 rock chips at Marble Bar with assay results to be announced soon…more

Helix Exploration (HEX.L) announced the results of flow testing at the Linda #1 well in the Rudyard Project, Montana. 218 feet of Linda #1 was perforated simultaneously, testing the Souris and Red River reservoir horizons. Flow rates sustained at 3.85 million cubic feet per day of raw gas at a 40/64" choke which is 40% above the flow rates reported at Darwin. High grade helium assayed at 1.2% helium with the balance being primarily nitrogen. Linda #1 has the capacity to generate pre-tax cashflow of c.$4 million a year in line with projections and results expand the company's view of the Rudyard Field's potential. Based on cumulative flow data, lateral extent, and undeveloped drilling inventory, Helix believes that the Rudyard Field could represent one of the largest new single field helium discoveries in North America in recent years…more

West African Resources (WAF.ASX WFRSF W25.F) announced that resource definition drilling at M1 South Main Deeps returned multiple high-grade gold intersections beneath current ore reserves, including a standout 44 metres at 25.8 grams per tonne gold. Additional significant intercepts include 44.5 metres at 17.1 grams per tonne gold, 38.5 metres at 17.4 grams per tonne gold, and 21.5 metres at 24 grams per tonne gold among others. Results will feed into the updated Mineral Resource Estimate and Ore Reserves, scheduled for release in Q3 2025. Per Executive Chairman, Richard Hyde, the outcomes confirm M1S as a high-margin, long-life asset and are expected to increase tonnes and contained gold versus the 2024 model…more

Reconnaissance Energy Africa (RECO.V RECAF 0XD.F) announced an update to its investor relations contact, an update on the transaction with Namcor Exploration and Production, and extension of the expiry date of certain share purchase warrants. Effective immediately, Mark Friesen has joined ReconAfrica as Managing Director, Investor Relations and Capital Markets, based in Calgary. He has extensive energy finance and investor relations experience in the Canadian and US markets. Regarding Namcor, the transaction has not yet been completed; discussions are ongoing. The company also intends to extend the expiry date of 6,795,454 outstanding common share purchase warrants by 18 months to January 18, 2027 and a further aggregate 1,071,500 outstanding common share purchase warrants by 18 months to February 1, 2027…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.

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