We’re looking for a step change here. We’re after 20 million tons at 3% copper, not just validating the existing resource. That’s what makes this project so exciting.
Mark Saxon, CEO T2 Metals (TSX-V: TWO)
In a world where junior mining companies often struggle to navigate tough markets, T2 Metals (TSX-V: TWO) stands out, with its focus on Canada’s historic VMS (volcanogenic massive sulfide) deposits in Manitoba. The company, led by veteran geologist and CEO Mark Saxon, is taking on a property that’s rich with history—and, potentially, undiscovered resources.
Saxon’s approach is both familiar and refreshingly candid, but his confidence comes from over two decades of experience in mining and exploration across the globe. In an exclusive interview, Saxon laid out his vision for T2 Metals, its flagship Sherridon project, and the deeper strategy that underpins the company’s push to unlock Manitoba’s copper potential.
The challenge is always the same—finding what others missed, Saxon said with a knowing smile, reflecting on why previous operators had walked away from Sherridon despite its VMS history.
A Focus on Discovery
T2 Metals has a clear focus on exploration, aiming to unlock the value of a past-producing region with considerable potential. The company is committed to spending $2 million in exploration to earn a 90% ownership in the Sherridon project, a large 50-square-kilometer property northeast of the famous Flin Flon mining district.
It’s got a lot of past production and historical resources, but it hasn’t been properly explored at depth. That’s where the potential lies, Saxon emphasized.
The project has historical resources—7.5 million tons of ore grading around 2.5% copper and zinc—but the drilling conducted thus far has been shallow, leaving a vast untapped area at depth. T2 plans to drill 3,500 meters across 20 holes in its upcoming program, with the goal of identifying both high-grade copper and new resource zones.
Manitoba’s Mining-Friendly Jurisdiction
The Sherridon project benefits from being located in Manitoba, a province with a rich mining history and strong government support. In the past 18 months, T2 Metals has received $520,000 in grants from the Manitoba government, through the Manitoba Mineral Development Fund (MMDF), which helped cover one-third of their exploration costs.
“Manitoba is a great place to work. The government has been incredibly supportive, and we’re able to raise flow-through funds here, making it a much more cost-effective jurisdiction than, say, the United States”, said Saxon.
Despite the advantages of working in Manitoba, Saxon is quick to acknowledge the unique challenges of working in an old mining district with a complex history of ownership and environmental legacy.
This region has always had potential, but the liability surrounding the old tailings had been an issue for years, Saxon explained. The tailings have now been cleaned up by the provincial government, allowing T2 Metals to fully focus on exploration.
High-Grade Potential: Copper, Zinc, and Surprising Gold
While T2 Metals is targeting copper as the main prize, recent exploration revealed something unexpected—high-grade gold. Saxon shared a personal anecdote about receiving a phone call from his geologist while out on a bike ride in Australia.
“I thought it was bad news when I got the call, but it was one of those great surprises. The gold grades we encountered were much higher than anything we expected”, Saxon recounted.
The company’s recent drill results returned intercepts of up to 23.5 meters grading 1.2% copper, 1.5% zinc, and 6.8 grams per ton of gold. This new zone represents a promising target for future drilling, but the focus remains on copper, given the global demand for energy transition metals.
20 Million Tons at 3% Copper
Saxon is upfront about the scale of his ambition for Sherridon: “We’re looking for a step change here. We’re after 20 million tons at 3% copper, not just validating the existing resource. That’s what makes this project so exciting”.
The deeper targets at Sherridon, according to Saxon, are the key to unlocking that value. Unlike other VMS deposits that might have a clear ‘top and bottom,’ the geology in this region has been significantly altered over the past 1.9 billion years. This means that mineralization could be found much deeper than where previous operators have drilled.
Financials and Insider Skin in the Game
T2 Metals is also notable for its tightly held share structure, with insiders holding 30% of the stock. Saxon himself owns nearly 10% and personally invested $150,000 in the most recent financing. This insider ownership, combined with participation from institutional investors, provides the company with a strong financial backing to pursue its ambitious exploration plans.
The company recently raised $3 million, alongside a $300,000 grant from the Manitoba government, giving it enough capital to fund the current drilling program. However, Saxon isn’t rushing to update the 2010 resource estimate.
The historical resources are useful, but we’re really aiming for something bigger, Saxon said.
ESG Considerations and First Nations Engagement
In line with modern mining standards, T2 Metals has signed an exploration agreement with the local First Nation. Saxon is particularly proud of the relationship they’ve built, highlighting that the company is providing jobs and training for the local community.
“We’re committed to leaving a positive legacy in the area, whether or not the project becomes a mine. It’s about being good neighbors”, he explained.
The Road Ahead
Looking forward, the next three months will be critical for T2 Metals. Saxon confirmed that the first drill results should be ready by October, and the company plans to continue drilling through the winter months. The next phase will focus on deeper targets, utilizing down-hole EM surveys to pinpoint the massive sulfide zones hidden beneath the surface.
As the global demand for copper continues to rise, driven by the energy transition and electrification, T2 Metals’ positioning in a stable mining jurisdiction with high-grade potential could pay off significantly.
But as always in mining, it’s all about the drill bit. Saxon summed it up with characteristic bluntness: We’ve got the right project, the right people, and the right place. Now we just need to drill it and see what we get.
T2 Metals CEO Interview
This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked above.
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