London Symposium JV Video: XXIX Metal plans new drilling at Thierry

Key Concepts

• Brownfields Projects: Mining projects developed on previously mined land, offering advantages like existing infrastructure and reduced capital expenditure.
• PGMs (Platinum Group Metals): A group of six metallic elements – platinum, palladium, rhodium, ruthenium, iridium, and osmium – often found together and used in various industrial applications.
• Flow-Through Shares: A type of share offered by Canadian resource companies that allows investors to claim tax deductions on the funds invested.
• Permitting Process: The regulatory process required to obtain approval for mining projects, often a significant source of uncertainty.
• Crown Pillar: A portion of ore left unmined beneath a previously mined area, potentially representing a further resource.
• Payback Period: The length of time required for an investment to generate enough revenue to cover its initial cost.

29 Metals: Project Updates and Investment Outlook

This discussion focuses on 29 Metals (also known as XXIX), a resource company with two primary projects: one in Quebec and one in Ontario, both focused on base and precious metals. The company’s strategy centers around developing “brownfields” projects – re-examining and expanding upon previously mined sites – to minimize capital expenditure (capex) due to existing infrastructure.

Quebec Project – Current Status & Expansion Plans

The Quebec project, detailed in a Preliminary Economic Assessment (PA) released in October, is a copper-gold prospect. A significant amount of historical data – 1.4 million meters of drilling – was recompiled and supplemented with an additional 10,000 meters of new drilling. This work resulted in a projected 27% rate of return with a two-year payback period, indicating a viable mining operation. Current efforts are focused on exploring the “crown pillar” adjacent to an existing open pit, specifically targeting a historically mined gold zone. Drilling will occur near the existing pit to potentially expand the mine’s scope.

Ontario Project – Exploration & Potential

The Ontario project, focused on copper-nickel-PGMs, is less advanced. A 15,000-meter drilling program is planned for the first quarter of 2026, aiming to bring the project to a Preliminary Economic Assessment (PEA) level comparable to the Quebec project within 1.5 to 2 years. A key observation is the increasing ore grade with depth at the “Old Body” deposit. The company intends to drill down to 600 meters along the 1.4-kilometer strike length of the deposit. Gee Label stated, “We proved the concept if if the great keeps increasing, you know, there's probably a mine there, too.” This suggests a strong belief in the potential for a significant deposit if the grade continues to improve with depth.

Financials & Funding

29 Metals recently raised $6 million through the issuance of flow-through shares in August. This funding will directly support the drilling programs in both Quebec and Ontario. Flow-through shares are a common financing mechanism for Canadian resource companies, offering tax benefits to investors.

Regulatory & Permitting Considerations

Gee Label highlighted the permitting process as the primary uncertainty facing the company. He emphasized the unpredictable nature of permitting timelines, stating, “It’s important that you know, at the end of the day, the big uncertainty in what we're doing is about the permitting process. We know when we enter, we never know when we come out.” Successful navigation of the permitting process is crucial for the timely development of both projects.

Investment Thesis & Future Outlook

In closing, Gee Label presented a concise investment message: “Well, you know, it's copper. It's in good jurisdiction, good management, highly undervalue, and a lot of news release coming up in the next year.” This emphasizes the company’s focus on a strategically important metal (copper), its location in politically stable jurisdictions (Quebec and Ontario), experienced management, perceived undervaluation, and anticipated news flow from ongoing exploration activities.

Technical Terms Explained:

• Preliminary Economic Assessment (PEA): A preliminary study that defines the economic viability of a mining project.
• Strike Length: The length of a mineralized zone measured along its trend.
• Grade: The concentration of a valuable metal or mineral in ore, typically expressed as a percentage or parts per million (ppm).

Logical Connections:

The conversation flows logically from an overview of 29 Metals’ projects to specific details about exploration plans, funding, regulatory challenges, and the investment rationale. The discussion highlights the interconnectedness of these elements, demonstrating how successful exploration, efficient permitting, and adequate funding are all essential for realizing the company’s potential.

Synthesis/Conclusion:

29 Metals is focused on unlocking value from brownfields mining projects in Canada. The Quebec project appears poised for development based on a positive PEA, while the Ontario project offers significant exploration upside. The company’s success hinges on continued positive drilling results, efficient permitting, and effective capital allocation. The company presents itself as an undervalued investment opportunity with significant potential for growth driven by increasing demand for copper and other base/precious metals.