Magna Mining - An Emerging Battery Metals Player in Canada's Prolific Nickel Belt

• Jason Jessup, CEO of Magna Mining, discusses the company's focus on the exploration and development of advanced-stage nickel copper PGM assets in Sudbury.
• Since December, Magna Mining's stock has risen significantly, reaching a high of $1.49 and stabilizing around $1.10, indicating a positive reaction from the market.
• Magna Mining recently released impressive drill results, with grades as high as 4% over 31 meters. This, combined with successful private financing, has set the company on a positive trajectory.
• The drilling in 2023 will be exploration-based, aiming to extend resources and test new theories, especially in areas with potential for new discoveries.
• Magna Mining is considering toll milling as a strategy and has been in discussions with mills in the area. The company hopes to obtain permits for bulk samples and potentially ship rock for profit soon.

Magna Mining is an exploration and development company focused on nickel, copper and precious metals assets in the prolific Sudbury Basin of Canada. The company has acquired two past-producing assets from mining giant Inco, now Vale, that hold significant resources and exploration upside. Recent high-grade drill results have generated excitement in the market, with Magna’s share price rising from around $0.50 in December 2022 to over $1 currently. The company is aiming to complete a Preliminary Economic Assessment (PEA) in early Q2 2023 that will assess development scenarios for its flagship Crane Hill asset. Meanwhile, exploration drilling is ongoing with the aim of expanding resources and making new discoveries. With seasoned management that has achieved past success in Sudbury, ample cash reserves, strategic landholdings and rising metal prices, Magna Mining appears well-positioned to create value for investors through resource expansion and potential near-term production.

Interview with Chief Executive Officer, Jason Jessup

Strong Share Price Performance Reflects High-Grade Drill Results

Magna’s share price has performed exceptionally well since December 2022, rising from around $0.50 to over $1 currently. This price appreciation directly reflects the market’s positive reaction to impressive high-grade drill results released over the past couple months from the company’s Crane Hill nickel-copper-PGM project. Intercepts such as 4% nickel over 31 meters starting near surface have captured investors’ attention given both the exceptional grades and shallow depths, which enhance open pit potential. The company completed a $16 million financing in February 2023, with large institutional investors eagerly participating, demonstrating confidence in Magna’s assets and growth trajectory.

The Near-Term Goal is a PEA for Crane Hill Flagship

Magna currently has a substantial resource base at Crane Hill, with 31 million tonnes in the Indicated category containing significant amounts of nickel, copper, cobalt, platinum, palladium and gold. The aim in 2023 is to complete a Preliminary Economic Assessment that will assess various development scenarios, including a potential start with open pit mining followed by underground operations. The PEA will evaluate processing options such as toll milling at one of the nearby mills owned by major miners Vale and Glencore. There is ample excess milling capacity in the region that Magna could take advantage of. The PEA is slated for completion in early Q2 2023 and will provide crucial economic parameters and guidance for advancing the project.

Exploration Drilling Aims to Expand Resources, Make New Discoveries

Beyond the PEA, Magna has an extensive exploration drilling program planned for Crane Hill in 2023 with a goal of expanding resources and making new discoveries, especially in the mineral-rich footwall zones below the main deposit. Historically, minimal exploration has targeted the footwall at Crane Hill, presenting substantial blue-sky potential for Magna’s seasoned geological team. The company is planning over 15,000 meters of drilling this year, with additional meterage likely given the recently completed financing. A second drill rig is expected to be added within the next few months to begin testing deeper targets below 300 meters. The focus will be on extending existing resources and finding the next major footwall discovery that could significantly increase mine life and economics.

Highly Experienced Team with Past Success in Sudbury

Magna’s management team and board possess deep technical and operational experience specifically within Sudbury, having led the successful restart of multiple mines in the district for previous employer FNX Mining in the 2000s. This included leveraging initial cash flow from toll milling to fund construction of company-owned mines. Magna’s CEO Jason Jessup has direct expertise in Sudbury geology, development and production. The company appears well-positioned to potentially emulate FNX’s success by restarting past-producing assets in Sudbury. Additionally, the strong technical team improves the odds of exploration success in an area they know intimately well.

Strong Cash Position Provides Flexibility

With the recent $16 million financing, Magna now has a strong cash position of approximately $19 million, providing funding for exploration and development well into 2024. The company consequently has flexibility in how it chooses to advance assets and allocate capital. Potential uses of cash include further exploration drilling, engineering studies, permitting, initial mine development and equipment purchases. Additionally, the robust treasury puts Magna in an advantageous position for potential toll milling negotiations and provides acquisition opportunities.

Upside from Second Project Shakespeare

Beyond the flagship Crane Hill asset, Magna has a 100% interest in the past-producing Shakespeare mine located just 50 km away, also acquired from Vale. Shakespeare contains a historic resource with significant nickel and copper. Magna plans exploration drilling here in 2023 as well, providing investors with upside from a second project in a proven mining district.

Rising Nickel and Copper Prices Sweeten Economics

Nickel and copper markets are expected to remain strong over the long term driven by demand for electric vehicle batteries, renewable energy infrastructure and electrification trends. Both metals have risen substantially in price over the past two years. These rising values enhance the economics for Magna’s nickel and copper-rich deposits, especially given the high grades intersected. The metals mix at Crane Hill also provides flexibility to shift focus between nickel and copper depending on prevailing prices.

With an accomplished management team, two promising past-producing assets in a premier mining jurisdiction, ample cash reserves, exploration upside and rallying metal prices, Magna Mining appears primed to deliver value for shareholders in 2023 and beyond. The upcoming PEA will provide key economic parameters and development guidance for the flagship Crane Hill project. Meanwhile, the extensive drilling program aims to significantly expand resources and make the next major discovery in Sudbury’s mineral-rich footwall zones. Magna’s share price has reflected the company’s strong potential, but further share price appreciation seems likely as Magna systematically de-risks assets and unlocks value. For investors seeking leverage to rising battery metal prices, Magna presents an intriguing speculative investment opportunity.

The Investment Thesis for Magna Mining

Experienced management team: Magna's management team, led by CEO Jason Jessup, has a proven track record of successfully exploring, developing and operating mines in the Sudbury area. They turned FNX Mining into a major success story in the 2000s by acquiring past-producing assets from majors and bringing them back into production profitably. This experience boosts confidence they can replicate that success at Magna.

High-grade assets: Recent drilling has intersected exceptional nickel, copper and PGM grades over wide intercepts near the surface at Magna's flagship Crane Hill project. These grades are impressive by global standards and suggest potential for robust project economics. Further exploration upside exists too.

Near-term catalysts: Magna is aiming to complete a Preliminary Economic Assessment for Crane Hill in early Q2 2023. This could outline a clear low-risk path to production, providing key economic parameters, development guidance and upside sensitivities. The PEA will be an important derisking milestone.

Toll milling potential: There is ample excess mill capacity locally owned by majors Vale and Glencore that Magna could potentially leverage via toll milling agreements. This would allow low-capex production startup in the near term. Discussions are already underway with mill owners.

Strong financial position: Magna has a current cash balance of around $19 million after recent oversubscribed financing. This provides funding for exploration and development work well into 2024. It also gives Magna flexibility in negotiations and potential acquisition opportunities.

Rising nickel and copper prices: Prices of Magna's key metals nickel and copper have been in solid uptrends driven by demand for EVs, batteries and renewable energy. This enhances the value proposition of Magna's deposits.

Upside from Shakespeare project: In addition to Crane Hill, Magna has a second 100% owned past-producer in Shakespeare that provides further upside potential in a proven mining district.

Magna Mining offers investors an attractive speculative investment opportunity in the battery metals space, with experienced management, high-grade assets, near-term catalysts, toll milling potential, a strong treasury and an upside from rising nickel and copper prices. The upcoming PEA and exploration drilling can help further unlock the company's compelling potential.