Magna Mining's New Nickel-Copper-PGM Resource Looks Encouraging

• Magna Mining, a Sudbury-based nickel-copper-PGM exploration and development company, has announced a significant high-grade nickel resource.
• The resource was compiled from over 90,000 meters of drilling since the mine closed and incorporates historic drilling data.
• Magna's global indicated resources in Sudbury now exceed 51 million tons.
• The company is planning to combine the feasibility study from Shakespeare with the new resource from Crean Hill to assess potential economics and synergies.
• Magna Mining has secured a $20 million financing to fund the acquisition of London Canada and has key cornerstone shareholders like Dundee Corp.

Sudbury-Focused Magna Mining Recently Acquired Denison Project and Announced Large New Resource

Magna Mining is a junior exploration and development company focused on nickel, copper and platinum group metals (PGM) deposits in the prolific Sudbury mining region of Ontario, Canada. The company recently acquired the past-producing Denison Mine and announced an impressive new mineral resource estimate. With strong management, key mining infrastructure in place, and plans to fast-track studies, Magna could become a top pick for investors seeking leverage to battery metals.

Major New Resource Announced for Flagship Denison Project

In September 2022, Magna closed the acquisition of the Denison Project from Vale's subsidiary, combining it with Magna's existing Shakespeare deposit to create an emerging hub-and-spoke production model in Sudbury. The company then announced a significant new resource for Denison - over 50 million tonnes in the indicated category at decent grades.

The resource incorporates over 90,000 meters of recent drilling plus extensive historical data, providing confidence in its size and grade. It includes both open pittable and underground material with grades averaging roughly 1-2% nickel, 0.5% copper and 1-2 g/t platinum+palladium. With over 500 million pounds of contained nickel, Denison ranks among the largest undeveloped nickel deposits in the region.

Experienced Team Focused on Fast-Tracking Development

Magna CEO Jason Jessup has direct experience operating and discovering new mines in the Sudbury area with FNX Mining. His technical team also includes many former FNX geologists, providing valuable expertise. The company is fully funded, with C$20M raised recently, and supportive cornerstone investors holding over 35% of shares outstanding.

Magna Mining aims to advance its projects quickly, taking advantage of existing infrastructure at the past-producing Denison mine. A preliminary economic assessment (PEA) study will be completed in early 2023, examining potential synergies between Denison and Shakespeare. This will guide the next steps, which could potentially include initial production via toll milling of Denison material within about a year.

Significant Exploration Upside Remains

While the current resource is already large, Magna sees strong potential for new discoveries through additional exploration. Much of the focus will be on finding higher-grade zones in the deposit's "footwall" area, which has seen little previous drilling. Nearby footwall deposits were key to FNX's past exploration success in the region, so Magna's team has direct experience targeting these areas.

Any new high-grade footwall discoveries would be potential game-changers, boosting the value of the projects. Early drill results from targets at Denison are expected within months and will be important catalysts to watch. Over time, additional satellite deposits could potentially be added to the hub-and-spoke model.

Strong Outlook for Nickel Prices

Nickel fundamentals appear strong looking forward, with accelerating demand from the EV battery sector. Tight supply and proposed export restrictions out of Indonesia and other major producers create upside potential for prices. While volatile, nickel has found support near US$10/lb despite recent market weakness.

As a North American sulfide-nickel project, Denison is well positioned to supply battery manufacturers in Europe and North America seeking local supply chains with high ESG standards. Listing on the OTC exchange could also open up additional U.S. investor interest.

Bottom Line: Magna Offers Leverage to Battery Metals Upside

With its recent major resource addition, experienced team, existing infrastructure and near-term catalysts, Magna Mining looks well-positioned among junior base metal developers. The company offers investors upside leverage to rising nickel and copper prices expected from the global energy transition. With the potential to fast-track to production, strong exploration upside and attractive metals exposure, Magna is worth a close look.

The Investment Thesis for Magna Mining

Leverage to Strong Nickel Fundamentals

• Global nickel demand is expected to grow significantly for electric vehicle batteries and other clean energy applications. Supply is constrained, with few new large projects coming online. This supply/demand imbalance could lead to higher nickel prices. As a nickel developer, Magna offers leverage to this upside.

Near-Term Production Potential

• With the existing infrastructure in place, Magna Mining has a clear path to potential near-term cash flow via toll milling. Positive study results and exploration success could accelerate startup. Near-term producers can often achieve reratings as they derisk.

Exploration Upside

• The large resource is open for expansion, especially in underexplored areas. New footwall discoveries could be major value drivers, as the experienced team targets these high-grade zones. Additional satellite deposits may also be added over time.

Strong Leadership

• CEO and technical team have direct experience successfully exploring and operating mines in the Sudbury region. This provides valuable expertise and reduces execution risk.

Supportive Shareholder Base

• Cornerstone investors own over 35% of shares, signaling confidence in the company's strategy and leadership. A tight share structure limits potential dilution.

Jurisdiction Advantages

• Located in a top-tier mining jurisdiction with extensive infrastructure already in place. Well-positioned to supply high-ESG nickel to North American and European auto companies.

Magna Mining offers investors an attractive nickel leverage play with sound fundamentals, upside potential, derisked path to production, and exploration upside. For investors bullish on the battery metals space, it warrants consideration.

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