Magna Mining (TSXV:NICU) - Unlocking Value in Sudbury's High-Grade Copper-Nickel Projects

Interview with Jason Jessup, CEO of Magna Mining Inc.

Our previous interview: https://www.cruxinvestor.com/posts/magna-mining-tsxvnicu-past-producer-unearthing-high-grade-nickel-4919

Recording date: 6th March 2024

Magna Mining, a Sudbury-focused exploration and development company, is making significant strides in advancing its high-grade copper-nickel assets towards production. CEO Jason Jessup provided an insightful update on the company's progress and shared his perspective on the nickel market outlook.

A key milestone was achieved this week as Magna received approval for its final closure plan at the Crean Hill project. This approval enables the company to transition from closure to production, starting with a surface bulk sample from the high-grade footwall zone, which contains impressive grades and reported resource of over 227,000 tonnes of nickel, 204,000 tonnes of copper, and 1.7 million ounces of platinum, palladium, and gold.

Following the bulk sample, Magna plans to develop an underground ramp to access the deeper portions of the deposit. The amended closure plan outlines a 400,000-ton program, providing at least 2.5 years of production and ample opportunity to optimize the life-of-mine plan.

Investors can anticipate a significant announcement by the end of March, as Magna is on track to secure an ore-selling agreement. This agreement will establish the framework for the project's economics and is expected to be a catalyst for the company's valuation.

To fund the development of Crean Hill, estimated at $48 million based on a previous Preliminary Economic Assessment (PEA), Magna is pursuing a prudent financing strategy. The company is actively seeking government grants and considering the sale of royalties or streams on the precious metal byproducts. This approach has the potential to fully fund the project's development without the need for equity dilution.

Magna is currently updating the resource estimate for Crean Hill, incorporating the results of the 19,000 meters of drilling completed last year. The drilling yielded some spectacular grades, particularly in the footwall areas, and is expected to improve the overall resource. The updated estimate is anticipated by the end of June and will form the basis for a revised mine plan targeting higher grades and margins.

Jessup emphasized the simplicity of Magna's projects, describing them as past-producing nickel mines that are near-surface and high-grade. The company's focus is on thoughtful de-risking and moving efficiently into production. With the addition of Jeff Huffman as Chief Operating Officer, Magna has strengthened its operational expertise and is well-positioned to execute on its plans.

Addressing the recent concerns about Indonesian nickel supply, Jessup offered a balanced perspective. While acknowledging the short-term impact on nickel prices, he believes the predictions about the magnitude and timing of Indonesian nickel entering the market may be overstated. Jessup expects nickel prices to stabilize in a range between $8 and $10 per pound over the next couple of years, which is highly favorable for Magna's economics.

In conclusion, Magna Mining presents a compelling investment opportunity for those seeking exposure to high-quality copper-nickel assets in a world-class mining jurisdiction. With key approvals in place, ore selling agreements and permits on track, and a prudent financing strategy, the company is well-positioned to efficiently transition into production and generate significant value for shareholders. The upcoming updated resource estimate and revised mine plan are expected to showcase the project's improved grades and margins, further enhancing its attractiveness. As the global demand for critical minerals continues to grow, Magna Mining is poised to play a significant role in supplying the metals necessary for the low-carbon economy.

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

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