Surface Metals Executes Strategic Pivot to Gold While Maintaining Lithium Foundation

• Surface Metals formerly ACME Lithium, shifted from lithium to gold after lithium market challenges, while retaining valuable lithium assets as foundation
• Acquired 90% of the Cimarron gold project in Nevada's Walker Lane trend in April 2025, historically explored by major companies like Newmont and Echo Bay/Kinross
• Project shows impressive intercepts including 26 meters of 5 grams/ton gold, with existing 50,000-ounce resource and potential for million-plus ounce deposit
• Project located in Nevada's premier mining jurisdiction, only 14 miles from Round Mountain mine and 1.5 hours from existing lithium operations
• Company trades at ~$5M CAD market cap, positioning as opportunistic entry point with dual exposure to gold upside and lithium asset foundation

Surface Metals (CSE:SUR) represents a compelling case study in strategic corporate adaptation within the volatile junior mining sector. Under the leadership of founder and CEO Stephen Hanson, the company has executed a thoughtful pivot from its original lithium focus to gold exploration while maintaining a valuable foundation of lithium assets. This transition reflects both the challenging lithium market conditions of recent years and the company's commitment to creating shareholder value through diversified mineral exploration opportunities.

Strategic Rationale for the Pivot

The decision to expand beyond lithium emerged from pragmatic market realities rather than abandoning the long-term lithium thesis. Hanson explained the strategic thinking: 

"As a board and a management team we started to evaluate our assets and say listen we work for the shareholders. Creating shareholder value is my number one priority. Do we wait it out or do we start pursuing other projects to create value?"

The lithium market's challenges became apparent through declining commodity prices and slowing EV demand over the past 18 months. However, Hanson maintains confidence in the underlying energy transition narrative, noting that 

"The belief is still over time that we are in an energy transition that lithium continues to be a commodity that is going to be needed for the technology community, for the automotive industry and for grid storage."

This balanced approach allows Surface Metals to maintain exposure to the eventual lithium recovery while actively creating value through gold exploration. The company's lithium assets provide a foundation of established resources, while the new gold project offers near-term catalysts and development opportunities.

The Cimarron Gold Project: A Historical Treasure

The acquisition of the Cimarron gold project in April 2025 represents the centerpiece of Surface Metals' strategic evolution. Located in Nevada's renowned Walker Lane trend, this project brings together historical significance, proven mineralization, and modern exploration potential. The property sits just 14 miles south of Kinross's Round Mountain mine, which recently poured its 15 millionth ounce of gold.

The project's historical pedigree is impressive, with exploration work conducted by industry giants Newmont and Echo Bay (later acquired by Kinross). Hanson emphasizes the quality of historical data: 

"We were seeing 26 meters of almost 5 g/t, 40 meters of just under 4 g/t, 46 meters of almost 4 g/y. Surface values and chip samples are almost 120 g/t of gold."

The property includes old workings and buildings dating back to the late 1800s, with active mining camps in the 1920s and 1930s. This historical context provides confidence in the mineralization's continuity and potential for expansion beyond the existing 50,000-ounce resource estimate.

Technical Characteristics & Geological Potential

The Cimarron project benefits from favorable geological characteristics that enhance its development potential. The mineralization comes to surface in what Hanson describes as "a fairly shallow epithermal system," which offers significant advantages for exploration and potential mining operations. As Hanson noted, 

"There are advantages to having mineralization coming to surface. This isn't deep mining, which is very expensive."

The geological model suggests an epithermal gold system with mineralization extending in multiple directions, both laterally and potentially at depth. Historical drilling focused primarily on shallow targets, with many holes extending only 50 to 100 meters, leaving substantial exploration potential for deeper mineralization.

The company's immediate technical focus involves modernizing the historical database using current GIS systems and geological modeling software. This process will help identify optimal drilling targets and develop comprehensive geological interpretations based on decades of historical work combined with modern analytical techniques.

Interview with CEO, Stephen Hanson

Nevada's Mining Jurisdiction Advantages

Operating in Nevada provides Surface Metals with significant jurisdictional advantages that extend beyond geological potential. Hanson highlighted Nevada's reputation: 

"It's been ranked by independent bodies as the number one mining jurisdiction in the world. Australia and Nevada seem to change over in that estimate."

The practical benefits of Nevada operations include established infrastructure, skilled technical personnel, and streamlined permitting processes. The company can advance drilling programs with relatively short timelines, with Hanson noting that 

"Once I submit a notice of intent and ultimately a bond, I can probably turn that around in about 90 to 120 days."

The current political environment further enhances Nevada's attractiveness for mining development. Hanson observed that "the new government really wants to create a domestic supply of many minerals" and noted government incentives supporting domestic mineral production. This macro trend toward supply chain security creates a favorable backdrop for North American mining projects.

Lithium Assets: Foundation Value and Partnership Strategy

While gold exploration takes center stage, Surface Metals' lithium portfolio provides substantial underlying value and optionality. The company's project in Clayton Valley hosts a resource of over 300,000 tons of lithium carbonate equivalent, representing significant value in future market conditions.

The lithium strategy focuses on partnership and joint venture opportunities rather than capital-intensive independent development. Hanson explained: 

"I'd rather own a smaller percentage of a project that's worth a significantly greater number than owning 100% of something that's been dormant or quiet or isn't being developed."

The company has already implemented this strategy successfully with Snow Lake Energy, a NASDAQ-listed company that is earning into the Manitoba pegmatite project while funding 100% of exploration costs. This approach preserves capital while advancing projects through challenging market conditions.

Capital Strategy

Surface Metals maintains a disciplined approach to capital allocation, with holding costs kept at manageable levels through strategic cost management. Annual claim fees represent tens of thousands of dollars rather than millions, allowing the company to maintain its asset base through market cycles.

The company's market capitalization of approximately $5 million Canadian provides what Hanson describes as "a really good entry level opportunity for investors." This valuation reflects both the challenges in junior mining markets and the potential upside from successful execution of the gold exploration program.

For the planned drilling program, Surface Metals will require additional capital in fall 2025. The company's strategy involves continued investor outreach across major financial centers including Toronto, New York, and London, building on existing interest in the gold project transition.

Development Timeline & Execution Strategy

The path forward involves systematic advancement of the Cimarron project through clearly defined phases. The immediate priority focuses on modernizing the historical database and developing updated geological models using current software systems. This foundational work will inform decisions about surface sampling, geophysics, and drilling strategies.

Hanson outlined a realistic timeline: 

"I hope to be drilling here probably realistically in early 2026." 

This timeframe allows for thorough preparation, permitting, and capital raising while maintaining momentum toward value-creating milestones.

The company's technical team brings relevant Nevada experience and established relationships with local contractors and service providers. This expertise enables efficient execution of exploration programs while maintaining cost discipline.

The Investment Thesis for Surface Metals

• Dual Exposure Strategy: Unique combination of near-term gold exploration catalysts with foundational lithium assets providing leverage to both commodity cycles
• Proven Historical Mineralization: Cimarron project backed by extensive historical work from major companies, with high-grade intercepts and existing 50,000-ounce resource providing exploration confidence
• Premier Jurisdiction: Nevada operations benefit from world-class mining infrastructure, streamlined permitting, and supportive government policies favoring domestic mineral production
• Experienced Management: CEO Hanson brings proven track record in Nevada exploration and resource development, with established local relationships and technical expertise
• Attractive Valuation: ~$5M CAD market cap provides accessible entry point with significant upside potential from successful gold exploration and eventual lithium market recovery
• Strategic Partnerships: Proven ability to attract partners for project advancement, as demonstrated with Snow Lake Energy joint venture, reducing capital requirements and execution risk
• Exploration Upside: Potential to expand Cimarron resource from 50,000 to million-plus ounces based on geological model and limited historical drilling depths
• Market Timing: Positioned to benefit from current gold market strength while maintaining exposure to future lithium market recovery

The global mining sector is experiencing a fundamental shift toward supply chain security and domestic resource development, creating unprecedented opportunities for North American exploration companies. Surface Metals exemplifies this trend through its strategic positioning in Nevada's premier mining jurisdiction and its exposure to two critical commodity sectors.

The energy transition narrative continues to drive long-term demand for lithium, despite current market volatility. Simultaneously, gold's role as a store of value and hedge against economic uncertainty has driven prices to historic highs above $3,400 per ounce. This dual commodity exposure provides Surface Metals with multiple pathways to value creation.

Government policies across North America increasingly favor domestic mineral production as a national security imperative. The push for supply chain independence, combined with established mining infrastructure in Nevada, creates an optimal environment for project advancement. As Hanson noted, 

"There's a real push by governments in North America to be reliant on domestic supply for minerals."

The convergence of favorable commodity markets, supportive government policies, and proven geological potential in established mining jurisdictions represents a compelling macro environment for companies like Surface Metals that can execute systematic exploration programs while maintaining capital discipline.