Jim's Oil & Mining Letter - May 4, 2025

OIL, ETC.

Galp Energia (GALP.LIS GLPEF) stated that it has resumed talks with potential partners as it seeks to develop its 80% owned discovery in Namibia. In February, the company reported it had found a significant presence of light oil and gas condensate in a fifth well in the Mopane field offshore Namibia. Sintana Energy (SEI.V SEUSF) holds an indirect 4.9% interest through its 49% effective interest in Custos, which in turn owns 10% along with NAMCOR which holds the remaining 10%. Galp stated the well "unlocked a new exciting area within Mopane" and will advance on feasibility studies "in the coming months". At the same time, it is seeking to sell part of its 80% stake in Mopane's Petroleum Exploration Licence 83 to a player who would become its operator. Galp now is re-engaging with interested parties it has had conversations with before and data is being shared with them…more…more

Africa Oil (AOI.TSX AOIFF AFZ.F) via its investee company, Impact Oil & Gas, has received an update on the Marula-1X drilling operation on Block 2913B, offshore Namibia. The well has been drilled to a total depth of 6,460 metres measured depth, targeting Albian aged sandstones within the Marula fan complex, approximately 47 kilometres south of the Venus-1X well, using the Deepsea Mira semi-submersible drilling rig. No hydrocarbons were encountered in the primary target in the Marula-1X well and no drill stem test was performed. A comprehensive analysis of the well results is now underway. Impact has a 9.5% interest in Blocks 2912 and 2913B, and Africa Oil through its 39.5% interest in Impact has an effective interest of approximately 3.8% in these blocks. Block 2913B contains the Venus light oil discovery. The farm down agreement between Impact and TotalEnergies provides full carry of Impact's exploration and development costs on Blocks 2912 and 2913B through to first commercial production from these blocks, presenting the company with an attractive opportunity set to test different geological plays on these blocks at no upfront cost…more

HyTerra (HYT.ASX HYTLF 8TP0.F) announced a Nemaha Project exploration update. The Sue Duroche 3 well was successfully spudded over the Easter long weekend, the rig has successfully drilled through the sedimentary section and is now drilling pre-Cambrian basement targets. Meanwhile, Paragon Geophysical has mobilised to the seismic survey location and the acquisition is underway. The company now has two firm wells in the drilling sequence which began last month in Kansas, marking the first steps for HyTerra in executing a 12-month exploration work program designed to unlock the potential of natural (white) hydrogen, funded through a strategic investment by Fortescue Future Industries Technologies. The seismic acquisition data collection program is expected to continue for several weeks with further seismic processing and subsurface interpretation to follow. The intent of the seismic survey is to support prospect analysis and drilling locations in the second half of 2025…more

Pulsar Helium (PLSR.V PSRHF PLSR.L Y3K.F) announced an update for well-testing activities at Jetstream #1 and Jetstream #2 at its Topaz project in Lake County, Minnesota. Pressure and flow testing operations were conducted on the Jetstream #1 and #2 appraisal wells with well-head pressure at both said to be highly encouraging, reaching 122 pounds per square inch gauge at Jetstream #1 and 151 pounds per square inch gauge at Jetstream #2. The well-head pressure at Jetstream #2 is greater than that of Jetstream #1 in February 2024 (145 pounds per square inch gauge) when it achieved a flow rate of 821,000 cubic feet per day, under well-head compression. Further flow testing of the Jetstream wells will recommence when clean-up of the wells is complete and drilling fines have been removed, all of which is anticipated to be completed in the next 6 - 10 weeks…more

80 Mile (80M.L BLLYF S5WA.F) announced that it has entered into a binding heads of terms agreement with March GL Company, a private Texas corporation, whereby March will fund stratigraphic research drilling at the Jameson industrial gas and liquids rich project in Greenland. March will fund 100% of the costs associated with two stratigraphic exploration holes designed to delineate the sedimentary structure and energy potential of the Jameson Basin. In return, and subject to regulatory approval, March can earn up to a 70% interest in the 8,429 km2 project through a two-stage earn-in structure: an initial 50% interest upon completion of the first hole drilled to define the basin’s technical specifications; and an additional 20% interest upon successful completion of a second test hole, at March's discretion, within an agreed timeframe. March has contracted Halliburton to support logistics planning and to secure other necessary services for Jameson. 80 Mile is free carried until the end of Project 2 for 30% of Jameson. March will also pay 80 Mile $500,000 upon execution of final documentation expected in the coming weeks. The initial holes will evaluate the presence and concentration of naturally occurring gases included hydrogen, helium, and associated industrial gases, the structure and thermal characteristics of the basin, and occurrences of natural gas and liquid condensate estimated by ARCO and other independent groups to be multi billion equivalent barrel potential. Pulsar Helium is also active in the surrounding regions…more

Arrow Exploration (AXL.V CSTPF AXL.L C1JT.F) announced 2024 year-end and Q4 2024 financial results. The company reported a 65% increase in 2024 oil and gas revenue to $73.7 million and net income of $13.2 million, while annual production rose 63% to 3,542 barrels of oil equivalent per day. The year ended with cash of $18 million, significant reserve growth and a fully funded $51 million 2025 drilling program. Year-end reserves grew sharply: PDP up 92% to 2.4 million barrels of oil equivalent, 1P 5.8 million barrels of oil equivalent, 2P 13.6 million barrels of oil equivalent (NPV10 of $285 million), and 3P 22.3 million barrels of oil equivalent. Post-period drilling continued with new wells at Carrizales Norte and Alberta Llanos; the 2025 program is targeting up to 23 wells…more

Blue Star Helium (BNL.ASX BSNLF) and Helium One Global (HE1.L HLOGF HE1.F) announced Jackson-27 flow test results and a gas analysis update, plus the spudding of Jackson 2 at Galactica. Jackson-27 flowed naturally during drilling and at total depth, since when the flow rate has increased to over 320 thousand cubic feet per day. Projected stabilised flow rates are 350 thousand cubic feet per day to 450 thousand cubic feet per day, constrained to optimise production, with a maximum potential rate of 550 thousand cubic feet per day. Early samples returned helium concentration of up to 0.41% (air-corrected) and 98.31% CO2. At the Jackson-2 development well, the operator is currently preparing to drill the intermediate hole section…more…more

Helix Exploration (HEX.L) announced the completion of drilling at the Linda #1 well in its Rudyard Project, Montana. Total depth of 5,398 feet was reached in 18 days drilling. Significant helium gas-shows were recorded in multiple horizons, up to 1,117 parts per million (240x background) in drilling mud. 230 feet of Souris and Red River formation pay was encountered with abundant cross-over gas effect in the porosity log. Structural closure at Rudyard continues to be expanded by drilling. Encouraging oil shows with strong oil cut, good odor, and sucrosic porosity were seen in the Nisku and Duperow formations. Per Bo Sears, CEO, the closure at Rudyard continues to expand while gas-in-mud shows at over 1,100 parts per million indicates the continuity of helium rich gas…more

Parkmead Group (PMG.L LYK1.F) announced that all conditions relating to the sale of its wholly owned subsidiary, Parkmead (E&P), to Serica Energy (SQZ.L SQZZF A3P.F) have now been met and the sale has therefore completed. Parkmead has received a cash payment of approximately £7.3 million on completion and will also receive a further £7.0 million of additional firm cash consideration. plus up to £120 million of contingent cash consideration, payable upon receipt by Serica of approval by the North Sea Transition Authority for any field development plan relating to any development on licence P2400 (containing the Skerryvore prospect) or licence P2634 (containing the Fynn Beauly oil discovery). Beyond this sale of its UK North Sea offshore licences, Parkmead has retained 100% of its cash producing assets. These are all onshore and comprise its interests in several gas fields in the Netherlands and its wholly owned wind farm in Scotland. Market capitalisation is £16 million…more…more

MINING

Alkane Resources (ALK.ASX ALKEF AK7.F) and Mandalay Resources (MND.TSX MNDJF R7X2.F) announced that they have agreed to combine in a “merger of equals” transaction and have executed a definitive arrangement agreement whereby Alkane will acquire all the issued and outstanding common shares of Mandalay pursuant to a court-approved plan of arrangement. Following completion of the transaction, the combined company will continue operating as “Alkane Resources”, remain listed on the ASX and seeking a listing on the TSX exchange. Mandalay shareholders will receive 7.875 ordinary shares of Alkane for each ordinary share of Mandalay. Upon completion, former Mandalay shareholders and existing Alkane shareholders will own approximately 55% and 45%, respectively. The implied market capitalisation of the combined company is estimated at A$1,013 / C$898 million. The transaction will create a diversified gold and antimony producer with a portfolio of three operating mines and a strong balance sheet. Alkane’s established Tomingley gold mine, currently ramping up after a major capital expansion, will complement the well-established and stable production from Mandalay’s Costerfield underground gold/antimony mine and the Björkdal underground gold mine in Sweden. Combined forecast production is around 160,000 gold-equivalent ounces in 2025, growing to over 180,000 gold-equivalent ounces in 2026…more…more

Perseus Mining (PRU.ASX PRU.TSX) announced that a final investment decision has been taken to develop the Nyanzaga Gold Project in Tanzania, following an update of the NGP feasibility study. The company has committed to invest approximately $523 million (including contingency) to develop and prepare for the operation of the mine that is expected to produce first gold in Q1 2027. The NGP development will be solely financed via interest free, inter-company loans provided by Perseus from its existing cash and bullion balance of $801 million as of 31 March 2025. In anticipation, the company has spent approximately $27.5 million to date to build project team capacity and commence early works that include site establishment, installation of temporary construction accommodation, and bulk earthworks as well as implementing a relocation plan to construct new dwellings for people impacted by future construction and operating activities. Perseus has opted for a large scale, wholly open-pit mining operation for the first phase of development, in preference to a smaller scale, combined open pit - underground option contemplated by the previous owners. Total gold production over an 11-year, Phase 1 mine life is currently estimated to be 2.01 million ounces based on a JORC 2012 Probable Ore Reserve of 52.0 million tonnes at 1.40 grams per tonne gold for 2.3 million ounces. Gold production averages over 200,000 ounces of gold per annum from 2028 to 2035, with peak production of 246,000 ounces in 2028. Over the life of the mine, the estimated average all-in site cost is $1,211/ounce. At an assumed long-term gold price of $2,100/ounce, un-discounted free cashflow pre-tax is $1,133 million and $2,252 million pre-tax at a gold price of $2,700/ounce…more

Osisko Development (ODV ODV.V 3OZ0.F) announced an optimised feasibility study for its Cariboo Gold Project with a C$943 million NPV5 and 22.1% IRR at a $2,400 per ounce gold price. The study forecasts ~190,000 ounces annual production over 10 years, with first gold in H2 2027, and improved capital and processing metrics. Payback is 2.8 years at $2,400 per ounce and a spot case at $3,300 per ounce yields a C$2.1 billion NPV5, a 38.0% IRR and a 1.6-year payback. First gold is anticipated in H2 2027 assuming a Q3 2025 construction start pending financing…more

Thesis Gold (TAU.V THSGF 0110.F) announced that the company has completed its private placement through the issuance of 9.9% of its issued and outstanding common shares to Centerra Gold (CG.TSX CGAU GOU.F), which has acquired, by way of private placement, 23,460,160 common shares at a price of $1.03 for gross proceeds of $24,163,965, which will be used for working capital and general corporate purposes, including work related to the technical studies currently underway at the company's Lawyers-Ranch Project. Thesis is focused on unlocking the potential of this 100% owned project, located in British Columbia's prolific Toodoggone Mining District. The recently completed Preliminary Economic Assessment highlights robust project economics, including a 35.2% after-tax IRR and an after-tax NPV5 of C$1.28 billion, demonstrating the potential for significant value creation. The company's 2025 roadmap includes a robust exploration and drill program, delivery of a Pre-Feasibility Study on the combined Lawyers-Ranch Project, and commencement of the Environmental Impact Assessment Process. Through these strategic moves, Thesis intends to elevate the Lawyers-Ranch Project to the forefront of global precious metals ventures…more

Riley Gold (RLYG.V RLYGF) announced that the 2025 exploration program is well underway at the company's Pipeline West/Clipper Gold Project, located in the Cortez mining district of the Battle Mountain - Eureka Trend. PWC is operated by Kinross Gold (K.TSX KGC) under an exploration earn-in agreement executed in March 2024 whereby Kinross has the right to earn up to 75% of PWC by spending $20 million. Kinross has defined new high-priority framework drill target areas at PWC that have never been drill tested. The first set of 2025 framework drill holes are approximately 2.5 kilometres north-northwest of the previous (and first) Kinross drill hole (in late 2024). These holes are targeting the highest grade gold-in-soil anomalies location on the property. Compiled geologic mapping, geophysical surveys, historical drill results, and gold-in-soil survey results uploaded in Leapfrog software support the new 2025 drill hole locations. Recent geologic modelling and interpretation by Kinross also provides a supporting structural foundation and information for the 2025 exploration and drill program. Drill contracts have been awarded, drill permitting is in process and drilling is expected to begin in approximately 4-6 weeks…more

Meridian Mining UK Societas (MNO.TSX MRRDF N2E.F) announced that it has drilled one of the highest grading gold veins to date at its advanced copper, gold and silver Cabaçal VMS project. Targeting potential extensions to Cabaçal's pre-feasibility study's high-grade ore reserves, CD-654 drilled one of the best grading gold veins to date at Cabaçal, returning 276 grams per tonne gold over 0.46 metres. This was within a broader shallow gold-copper-zone that returned 9.9 metres at 14.8 grams per tonne gold equivalent from 29.3 metres. The company also reported multiple stacked layers of gold-copper mineralization within Cabaçal's PFS pit shell. These results continue to improve the strong upside that remains within Cabaçal and will be included into a future resource and reserve calculation for Cabaçal's definitive feasibility study. Drilling continues and more results are pending.

Lion One Metals (LIO.V LLO.ASX LOMLF LY1.F) reported significant new high-grade gold results from 4,123.8 meters of underground infill and grade control drilling at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The drilling is focused on the Zone 5 area of the deposit, which is currently being mined. Drilling was conducted from two near surface underground drill stations and the company intersected high-grade mineralised structures in 29 drill holes targeting the UR2 lode down-dip of current underground developments. Most of the drill holes did not exceed 150 metres in length and most of the high-grade drill intercepts are located within 50 metres of current underground workings. Drill results include multiple bonanza grade gold intercepts over narrow widths, such as 236.00 grams per tonne over 0.4 metres, 101.58 grams per tonne over 0.5 metres, 102.35 grams per tonne over 0.3 metres, 94.23 grams per tonne over 0.3 metres, and 89.63 grams per tonne over 0.4 metres. Due to the proximity of drill results to existing workings there is a strong probability that these intercepts can be incorporated into the mine plan in the next six to twelve months. Tuvatu is a high-grade narrow vein alkaline gold deposit and bonanza grade drill results are not uncommon on the project. In January the company released the highest grade assay ever returned from Zone 5 drilling, 2,749.86 grams per tonne over 0.3 metres…more

Gold hitting record highs

The price of gold keeps heating up. If the record-breaking year of 2024 wasn't enough, gold hit a major historic 2025 milestone by crossing the $3,000/ounce threshold!

Here are 3 Key Reasons:

1. Looming economic & political uncertainty

2. Increasing central bank demand

3. Rising National Debt - over $36 Trillion

So, could gold surge even higher?

According to a recent statement from Jeffrey Gundlach, famed American business man and investor… “Gold continues its bull market that we’ve been talking about for a couple of years, ever since it was down to $1,800.” He expects gold to reach $4,000/oz.

Is it time you learn more about precious metals?

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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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