Magna Mining (TSXV:NICU) From Producer to Powerhouse: Magna Mining’s Bold Growth Plan

03/05/25 • 23 min

Interview with Jason Jessup, CEO of Magna Mining Inc.

Our previous interview: https://www.cruxinvestor.com/posts/magna-mining-tsxvnicu-magna-bets-on-coppers-future-with-acquisition-of-kghms-sudbury-portfolio-6411

Recording date: 3rd March 2025

Magna Mining is a rising star in the Canadian mining sector, poised to capitalize on the surging demand for critical metals like nickel and copper. With a portfolio of high-quality assets in the world-renowned Sudbury Basin, Magna offers investors a compelling opportunity to gain exposure to the electrification megatrend.

At the heart of Magna's story is the McCreedy West mine, a cornerstone asset already in production. With a history of mining since the late 1990s, McCreedy West boasts a substantial resource base of over 9 million tons. Magna is now ramping up operations, with plans to boost throughput to 400-500,000 tons per year. Even more exciting, Magna is targeting higher grades of 4-5% copper, a level rarely seen in global mining today. This combination of scale and grade is set to generate significant cashflows, giving Magna the firepower to fund aggressive growth.

But McCreedy West is just the beginning. Magna's crown jewel is the past-producing Levack mine, a high-grade monster that previously yielded head grades of 8-10%+ copper. Magna is now aggressively exploring the Levack deposit, with drills already turning to expand the resource. The potential is immense – with historic production of over 60 million tons, Levack could be a true company-maker for Magna. Management is targeting a rapid restart by 2026, which could propel Magna into the ranks of the mid-tier producers.

Magna has a pipeline of over five permitted projects in the Sudbury Basin, giving it incredible optionality and scale potential. From the advanced-stage Crean Hill project to the low-capex Shakespeare open pit, Magna controls a string of pearls in one of the world's most prolific mining camps. This creates the potential for Magna to evolve into a true district-scale producer over time, leveraging shared infrastructure and a centralized management team to drive industry-leading margins.

Critical to Magna's success is the strength of its leadership. CEO Jason Jessup is a mining veteran with a proven track record of value creation, having played a key role in building FNX Mining into a Sudbury heavyweight. He leads a technical team with decades of experience in the basin, giving Magna a true home field advantage. This deep knowledge base is complemented by a bold vision for growth and the proven ability to attract capital. Magna's recent $30m raise highlights the confidence the market has in the company's prospects.

With the tailwinds of electrification and decarbonization at its back, the company is perfectly positioned to ride the coming wave of demand for nickel and copper. As Jessup says, "This isn't about now we're a producer, we're done. This is about building into something that's significant." For investors looking to align themselves with that vision, Magna Mining presents a uniquely compelling opportunity. In a world hungry for critical metals, Magna is ready to deliver.

View Magna Mining's company profile: https://www.cruxinvestor.com/companies/magna-mining

Interview with Jason Jessup, CEO of Magna Mining Inc.

Our previous interview: https://www.cruxinvestor.com/posts/magna-mining-tsxvnicu-magna-bets-on-coppers-future-with-acquisition-of-kghms-sudbury-portfolio-6411

Recording date: 3rd March 2025

View Magna Mining's company profile: https://www.cruxinvestor.com/companies/magna-mining

Previous Episode

GoGold Resources (TSX:GGD) GoGold Resources (TSX:GGD) Awaiting Final Permits And Green Light for $227M Silver Mine

Interview with Bradley Langille, President & CEO of GoGold Resources Inc.

Our previous interview: https://www.cruxinvestor.com/posts/gogold-resources-tsxggd-los-ricos-projects-eyes-16moz-potential-in-evolving-mexican-mining-scene-6450

Recording date: 3rd March 2025

GoGold Resources is on the cusp of an exciting new chapter as it nears construction of a major new silver mine in Mexico. In a recent interview, CEO Brad Langille exuded confidence and optimism about the company's future, highlighting a number of key developments that should have investors taking notice.

GoGold expects to receive the final permit for its Los Ricos South project in the very near future. Mexico's new president has made permitting a priority, and Langille believes GoGold is at the top of the list. Once the permit is in hand, the company is ready to hit the ground running with construction of a brand new 2,000 ton per day underground silver mine.

Funding for the $227 million project is already well in hand. GoGold has a robust $76 million cash war chest and is seeing strong interest from lenders to provide an additional $150-175 million in debt. Langille hinted at a competitive process with financial partners vying to be part of this exciting project.

GoGold sees tantalizing exploration potential to extend the deposit a further 500m to the south. Early drill results have hit a wide structure that looks very similar to the high-grade core of the existing deposit. Confirming this could add years to the mine life. Add in the prospective Los Ricos North project, where GoGold has already outlined a 161 million ounce silver equivalent resource, and there's a clear pipeline for transformational production growth. The company envisions a path to 15-17 million ounces per year of silver output between its projects.

Perhaps most exciting is that GoGold's silver will be some of the lowest cost in the industry, with all-in sustaining costs pegged at just $12 per ounce. That ensures the company will gush cash flow even if silver prices retreat from their current perch near $25. With all these positive catalysts afoot, Langille mused about GoGold's attractiveness as a takeover target. The silver industry is rapidly consolidating, and recent deals have transacted at highly attractive valuations of 1.7-2.0x net asset value. As one of the few pure-play silver developers left, GoGold would be a crown jewel for a growth-hungry acquirer.

Langille and his team are laser-focused on delivering value for shareholders as a standalone company. With over $1.5 billion of mine construction and operating experience under their belt, this is a team that knows how to get it done.

For investors, it all adds up to a unique and compelling opportunity. Exposure to a fully-funded, high-margin silver mine on the cusp of construction, multiple avenues for exploration upside, and the tantalizing prospect of a lucrative takeover, GoGold has it all. A compelling story could turn brighter as the drills turn and silver continues its way higher.

View GoGold Resources' company profile: https://www.cruxinvestor.com/companies/gogold-resources

Next Episode

GTI Energy (ASX:GTR) - GTI Energy (ASX:GTR) - Lo Herma Uranium Project Completes All Fieldwork - Feasibility Study Imminent

Interview with Bruce Lane, Executive Director, GTI Energy

Our previous interview: https://www.cruxinvestor.com/posts/gti-energy-asxgtr-boosts-wyoming-uranium-resource-by-50-advances-development-plans-6420

Recording date: 3rd of March, 2025

GTI Energy is making significant progress on its uranium in-situ recovery (ISR) projects in Wyoming, with a focus on the Lo Herma project that recently reached 8.57 million pounds of uranium resources, 30% in the indicated category. This resource size strategically positions the company alongside similar economic projects in the region being developed by established players like UR Energy and enCore.

Executive Director Bruce Lane reports that the company has completed all fieldwork for their feasibility study, including successful metallurgical testing showing good uranium recoveries using alkaline leach processes and permeability testing confirming the project's suitability for ISR methods. The study, conducted by BRS Engineering from Riverton, Wyoming, is expected to be delivered within the next 1-2 months.

The economics appear promising, with anticipated capital expenditure of approximately $50-55 million and potential production of around 1 million pounds of uranium annually over an 8-10 year mine life. At uranium prices around $80 per pound, Lane suggests the project could generate $30-40 per pound in free cash flow, offering relatively quick payback and manageable risk.

GTI is exploring multiple strategic pathways forward, including growing their resource base and pushing toward permitting, developing satellite deposits, pursuing joint ventures, or potential partnerships with industry players. Lane emphasized their focus on proving the economic case by confirming the geology, metallurgy, and permeability to demonstrate the project's viability as a standalone operation.

The current uranium market presents challenges, with spot prices having declined significantly since early last year. However, Lane expressed confidence in eventual improvement, citing fundamental supply-demand dynamics, particularly as the United States aims to achieve self-sufficiency in uranium production, targeting 50 million pounds annually.

Given current market conditions, GTI is considering alternative financing approaches beyond traditional equity-debt structures, potentially involving strategic investment from industry participants. Lane also noted the possibility of industry consolidation in the exploration and pre-development space over the next 3-12 months.

While they won't be filing development permits this year, Lane indicated it would be feasible to reach that stage within the next 18-24 months if properly funded. As the U.S. works to secure domestic uranium supply, GTI Energy's Wyoming projects represent one piece of what Lane describes as a "game of inches" approach to rebuilding American uranium production capacity.

Learn more: https://www.cruxinvestor.com/companies/gti-energy