Time to Read: 15 minutes
TLDR: Magna Mining, led by CEO Jason Jessup, is advancing its nickel and copper projects in Sudbury. The company aims to become a significant North American producer. Key milestones include completing bulk sampling by Q2 2024, generating first revenues by Q1 2025, and planning for potential acquisitions. With a strong financial position and strategic focus on Sudbury’s assets, Magna is well-positioned for growth.
This is a very brief summary of what was a one-hour interview. Don’t rely on this summary. Watch the full interview below.
Please note that this company has paid for the creation of this content. The Resource Talks interview rules are simple.
The companies, albeit paying or non-paying, get no questions upfront, no questions off the table, and no editing rights.
Company Overview
- Name: Magna Mining Company
- CEO: Jason Jessup
- Ticker: TSX-V: NICU
- Average Daily Trading Volume: 200,000 shares
- 52-Week Range: 37 cents – 93 cents
- Market Cap: $130 million
- Shares Outstanding: 164 million
- Warrants and Options: 36.7 million warrants, 10.6 million options and RSUs
- Fully Diluted Shares: 210.5 million
- Ownership:
- Management and Directors: 10%
- Institutions: 50% (Dundee Corporation, Hawks, Haywood, etc.)
- Retail Investors: 40%
- Financials (as of March 31):
- Current Assets: $9 million ($7.5 million in cash)
- No long-term debt
- Liabilities: $2.3 million in accounts payable and accrued liabilities
- Operating Expenses: $1.3 million per month (70% on exploration and evaluation)
- Projects:
- Crean Hill: Crean Hill is a brownfield, past producing mine with a closure plan in place, located in the historic Nickel mining district of Sudbury. The project has a NI 43-101 compliant Mineral Resource Estimate of over 30 million tonnes, including 14.5 million tonnes of high grade underground resources (SGS Geological Services, 2022). First production from test mining and bulk sampling is anticipated in 2024.
- Shakespeare: Shakespeare is a past-producing, feasibility stage NI-Cu-PGM project located 70km South-West of Sudbury. The project is easily accessible by road from the nearby Trans-Canada Highway, and has a strategically important location within trucking distance of milling and smelting capacity in the city. Shakespeare has an existing NI 43-101 compliant mineral resource estimate, and major permits in place for the construction of a 4,500 tpd mine, mill and tailings storage facility.
Interview with CEO Jason Jessup
This is a very brief summary of what was a one-hour interview. Don’t rely on this summary. Watch the full interview below.
- Question: How is the test mining and bulk sampling progressing? Are you on schedule?
CEO, Jason Jessup: Yes, we’re on track. We’ll begin Drilling and Blasting for the surface bulk sample at Crean Hill in July, with 20,000 tons of ore to be shipped to Glencore’s Strathcona Mill by early September.
- Question: How are the permitting and environmental considerations being handled?
CEO, Jason Jessup: Due to Crean Hill’s Brownfield status, most permits are already in place. We’ve amended our closure plan to move back to production, which has expedited the process.
- Question: What steps remain before Magna starts generating revenue?
CEO, Jason Jessup: The first revenue will come from the surface bulk sample, processed through Glencore’s mill. Underground development starts later this year, aiming for first mining revenue by early 2025.
- Question: What are your budget projections for the rest of 2024?
CEO, Jason Jessup: Surface bulk sampling will be funded by our current treasury. For underground development, we estimate around $48 million, but expect this to decrease due to higher grades and near-term revenues offsetting costs.
- Question: Are there any plans for raising additional capital?
CEO, Jason Jessup: We’re exploring royalty or streaming options on precious metals to fund advanced exploration. We’re not rushing an equity raise but may consider it towards the end of the year, depending on market conditions.
- Question: How do you anticipate operating costs (Opex) in the current economic environment?
CEO, Jason Jessup: We have a good handle on our costs, currently estimating around $125 per ton. This is informed by our contractor agreements and will be refined further as we progress.
- Question: Why hasn’t the hub-and-spoke model been implemented before in Sudbury?
CEO, Jason Jessup: It’s primarily due to the dominance of major companies like Vale and Glencore, which have long-term plans and control over land and resources. FNX Mining, where I previously worked, successfully utilized this model, which inspires our current strategy.
- Question: How does the variability in grade and thickness of the 109 Zone impact your planning?
CEO, Jason Jessup: The higher-grade core of the 109 Zone ranges in thickness and is surrounded by lower sulfide, higher PGM zones. Our test mining will help us understand how to optimize recoveries and manage this variability.
- Question: Can you provide an update on the ongoing drilling at Crean Hill and Shakespeare?
CEO, Jason Jessup: Drilling at Crean Hill is extending the 109 footwall zone, with results expected by early July. At Shakespeare, we’re testing multiple targets with promising anomalies, with initial results due soon.
- Question: Are you planning any acquisitions to expand your asset base?
CEO, Jason Jessup: We are in discussions with all three major players in Sudbury and are looking at assets similar to Crean Hill—past producers with advanced permits and significant exploration potential.
- Question: What’s the long-term vision for Magna Mining? Are you aiming to be a takeover target or a standalone producer?
CEO, Jason Jessup: We aim to build a significant base metals mining company in Sudbury, leveraging existing infrastructure and developing our assets to their full potential, focusing on nickel, copper, and precious metals.
- Question: Could you explain the significance of your recent dewatering permit? Is it a major challenge?
CEO, Jason Jessup: The dewatering permit is essential but manageable. We plan to gradually dewater the mine, using Vale’s existing Water Treatment Plant, making the process straightforward and low impact.
- Question: What is your timeline for advanced exploration and eventual commercial production?
CEO, Jason Jessup: Bulk sampling will be completed by the end of Q2, with an updated mineral resource estimate by Q3, and a PEA by Q4. First revenues are expected in Q1 2025, with ongoing exploration feeding into updated feasibility studies.
- Question: How are you managing operational expenses and inflationary pressures?
CEO, Jason Jessup: We’re controlling costs by using contractors initially and plan to transition to owner-operated equipment for cost savings. Our current estimates are around $125 per ton, refined through contractor agreements.
- Question: How does the variability in grade and thickness of the 109 Zone impact your planning?
CEO, Jason Jessup: The higher-grade core of the 109 Zone ranges in thickness and is surrounded by lower sulfide, higher PGM zones. Our test mining will help us understand how to optimize recoveries and manage this variability.
- Question: Can you provide an update on the ongoing drilling at Crean Hill and Shakespeare?
CEO, Jason Jessup: Drilling at Crean Hill is extending the 109 footwall zone, with results expected by early July. At Shakespeare, we’re testing multiple targets with promising anomalies, with initial results due soon.
- Question: Are you planning any acquisitions to expand your asset base?
CEO, Jason Jessup: We are in discussions with all three major players in Sudbury and are looking at assets similar to Crean Hill—past producers with advanced permits and significant exploration potential.
- Question: What’s the long-term vision for Magna Mining? Are you aiming to be a takeover target or a standalone producer?
CEO, Jason Jessup: We aim to build a significant base metals mining company in Sudbury, leveraging existing infrastructure and developing our assets to their full potential, focusing on nickel, copper, and precious metals.
- Question: How do you see the future of Magna Mining in terms of market positioning?
CEO, Jason Jessup: We want to become North America’s next significant nickel and copper producer. Our strategic focus on Sudbury’s assets and infrastructure positions us well to achieve this goal, making us a formidable player in the market.
Conclusion:
Magna Mining, under the leadership of Jason Jessup, is strategically advancing its projects in Sudbury, with a focus on becoming North America’s next significant nickel and copper producer. The company is well-funded for its current exploration and development plans, with a clear path towards initial revenues by early 2025.
