Jason Jessup, President and CEO of Magna Mining (TSX.V: NICU) (OTC: MGMNF), joins us to unpack the key takeaways for investors with regards to the recently released PEA the Crean Hill Mine Project, and at the exploration program currently underway there, as well as the ongoing drill program at the Shakespeare Project.  We delve into all the derisking work the company is doing for the potential development strategy at both areas, and the ultimate pathway towards production in Sudbury.  

Key highlights from the PEA (that don’t yet include the 15,000 meters of drilling data from last year or the additional drilling from this year):

The Base Case generates a pre- tax NPV (8%) of $290.4 million and an Internal Rate of Return (“IRR”) of 23.9%, after-tax NPV (8%) is $230.4 million, with an IRR of 23.4%.

The Alternative Processing generates a pre- tax NPV (8%) of $668.8 million and an IRR of 39.6%, after-tax NPV (8%) is $516.1 million, with an IRR of 38.4%.   We spend some time unpacking the synergies here if both the  Crean Hill and Shakespeare Projects were developed in tandem with one another.

With regards to exploration, we next dug into the importance of the recent high-grade drill intercepts of nickel, copper,  platinum and palladium in the 101 and 109 Footwall Zones. Just yesterday the company announced additional assay results from the 101 Footwall from the ongoing 2023 diamond drilling program at the Crean Hill Nickel Project.  These continue to confirm the shallow zone of massive sulphides in the vicinity of MCR-22-005; which is one of the areas that the Company is planning to include as part of the advanced exploration and test mining program in 2024. Two drillholes, MCR-23-041 and MCR-23-042, tested down-dip, to the north and south of drillhole MCR-22-005 (see Fig. 1).

Jason outlines that at Crean Hill, the plan is now to drill upwards of 19,000 meters this year, and 5,000-6,000 meters at Shakespear, so there should be a steady stream of drill result news flowing in for the balance of this year.   Additionally, he breaks down some of the key permits and milestones that the company is anticipating for the balance of this year and heading into next year.

If you have questions for Jason regarding Magna Mining, then please email me at Shad@kereport.com.

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