Earnings call transcript: Magna Mining’s Q2 2025 sees negative cash margin

Magna Mining Inc. (Market cap: $265 million) reported its Q2 2025 earnings, reflecting its first full quarter as a producing mining company. The company experienced a negative cash margin of $1.2 million, alongside an operating cash outflow of $11.6 million. Despite these challenges, Magna Mining achieved notable progress in its operational efficiency and development rates. The stock has shown remarkable momentum, with a 179% return over the past year and currently trades near its 52-week high of $1.69. According to InvestingPro analysis, the company appears to be trading above its Fair Value, with 20 exclusive ProTips available for deeper insight.

Key Takeaways

• Magna Mining reported a negative cash margin of $1.2 million in Q2 2025.
• The company processed a total of 70,045 tonnes of ore during the quarter.
• Significant exploration results were achieved at the Lavac Mine.
• The stock price remained stable at $2.29 following the earnings release.

Company Performance

Magna Mining’s Q2 2025 marked its first full quarter as a producing mining company. Despite reporting a negative cash margin, the company improved its development rates significantly, increasing from under 7 feet per day in March to 17 feet per day in June. The company processed a total of 70,045 tonnes of ore, with an average copper equivalent grade of 3.26%.

Financial Highlights

• Revenue: $18.47 million
• Earnings per share: -$0.04
• Cash balance: $27 million as of June 30, 2025
• Free cash outflow: $10.7 million
• Cash cost: CAD 6.47/pound (US $4.67)
• All-in sustaining cost: US $7.55/pound

Outlook & Guidance

Looking ahead, Magna Mining aims to implement a 700 complex bulk mining program with a target of 30,000 tonnes of ore per month in Q4 2025. The company also plans to increase its total production target to 1,000–1,200 tons per day by 2026. Exploration efforts will continue at the Lavac Mine, particularly in the new R2 zone. Analysts maintain a strong bullish consensus on the stock, with price targets ranging from $1.89 to $2.54, suggesting potential upside from current levels. InvestingPro subscribers can access detailed valuation models and peer comparison tools to better evaluate the company’s growth prospects.

Executive Commentary

"Our goal in Q2 was to make meaningful improvements in the operations," stated Jeff Hoffman, COO. CEO Jason Jessup emphasized, "The more metal we can put in every ton has a huge advantage to our bottom line." Dave King, Exploration, noted, "As you went deeper into the system, the PGE grade continually increased."

Risks and Challenges

• Sustained negative cash flow could impact future operations.
• Fluctuations in copper prices may affect profitability.
• Operational challenges in increasing ore production rates.
• Dependence on successful exploration outcomes to expand resources.

Magna Mining’s Q2 2025 earnings call highlighted both the challenges and opportunities facing the company as it continues to establish itself as a producing mining entity. The focus on operational improvements and exploration expansion sets a strategic direction for future growth.

Full transcript - Magna Mining Inc (NICU) Q2 2025:

Conference Operator: Thank you for standing by. This is the conference operator. Welcome to the Magna Mining Inc. Second Quarter twenty twenty five Earnings Conference Call. As a reminder, all participants are in a listen only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions. I would now like to turn the conference over to Mr. Paul Fowler, Executive Vice President. Please go ahead, sir.

Paul Fowler, Executive Vice President, Magna Mining: Thank you, operator. Thank you, and good morning, everyone. Before getting started, I’d like to mention that we may make forward looking statements or provide forward looking information on this call in accordance with applicable securities laws. Please review our most recent corporate presentation available on our website for cautionary language regarding the use of and reliance on forward looking statements, which may be materially different from the actual results obtained by the company and for the risk factors applicable to such forward looking statements that could cause actual results to be materially different from those expressed or implied by such statements. Any scientific or technical commentary on this call has been reviewed and approved by David King, RSVP Exploration and Geoscience, who is a qualified person under NI 40 three-one 101.

With respect to non IFRS performance measures that are referred to on this call, please refer to the reconciliation to measures of performance prepared in accordance with IFRS accounting standards in the company’s most recently filed MD and A. All figures are in Canadian dollars unless otherwise noted. Our press release, MD and A and financial statements are available on SEDAR plus and on our corporate website. I would like to introduce Magnum Mining management on the call with us today myself, Paul Fowler, Executive Vice President and CEO, Jason Jessup COO, Geoff Hoffman CFO, Scott Gilbert Senior Vice President, Exploration and Geoscience, David King and Tim Bradburn, General Counsel. Following formal remarks from management, will open the lines for further questions as mentioned by the operator earlier.

And I would now like to introduce Magna Mining’s CEO, Jason Jessup, to comment on the quarterly results. Go ahead, Jason.

David King, RSVP Exploration and Geoscience, Magna Mining: Thank you, Paul.

Jason Jessup, CEO, Magna Mining: And thank you, everyone, for joining us today. The 2025 was the first full quarter that Magna operated as a producing mining company, and I am quite pleased with the achievements of the team. We continued to grow our workforce at the McCree West Mine, invested in equipment and the required infrastructure as well as added key personnel to support our vision of becoming a multi mine producer in the Sudbury Basin over the next three years. Underground capital and operating development were a focus during the quarter, and great improvements were made by the team. Magna’s in house development crews managed to increase development footage from under seven feet per day in March to an average of 17 feet per day in June.

This work was done with safety and quality in mind, which supports the culture of operational excellence that we are fostering within our operation. Production was hampered in April due to the limited development completed by the previous owners in January and February, as well as the limited amount of development that was completed in our first month of ownership. As daily development footage increased throughout the quarter, so did our copper equivalent payable pounds, which is in line with our expectations. I would now hand it over to our CFO, Scott Gilbert, to present an overview of our financial performance in Q2.

Scott Gilbert, CFO, Magna Mining: Thanks, Jason. On 02/28/2020, Magna closed the acquisition of a portfolio of base metal assets from a subsidiary of KGHM. The preliminary purchase price allocation resulted in a bargain purchase gain of CAD36.6 million. The allocation is preliminary and the fair values are subject to change as there has not been sufficient time to complete the valuation process. The valuation work must be finalized within twelve months following the acquisition date.

Mineral properties, plant and equipment, exploration and evaluation assets, reclamation obligations, deferred revenue and deferred taxes are all subject to change. Any adjustments made will be recognized retrospectively and comparative information will be revised. There were no adjustments to the preliminary price allocation in Q2 twenty twenty five. The mine incurred a negative cash margin of $1,200,000 during Q2 twenty twenty five, with cash cost of CAD 6.47 per pound or US4.67 dollars and all in sustaining cost of US7.55 dollars per pound or US5.45 dollars For Q2 twenty twenty five, the company had operating cash outflow of US11.6 million and free cash outflow of $10,700,000 which included $2,100,000 of capital expenditures. The $3,000,000 of cash collateral that was required to support the letter of credit facility in Q1 twenty twenty five was released in Q2 twenty twenty five.

Our cash balance at 06/30/2025 was $27,000,000 I will now hand the call over to our COO, Jeff Hoffman, for an overview of our operations performance on the quarter.

Jeff Hoffman, COO, Magna Mining: Thank you, Scott, and good morning, everyone. Our goal in Q2 was to make meaningful improvements in the operations, which will support our broader plan of setting the mine up in 2025 for a successful 2026 and beyond. Increasing our development rates was one of the key improvements that we set out to accomplish. We were successful in increasing development rates each month during the quarter and ramping up from below seven feet per day in March to around 17 feet per day in June. Operationally, the mine started out the quarter with limited development ahead of production resulting in some ore being shipped in April from the inner main nickel zones and a lower grade stope within the 700 footwall copper zone.

The previous owner had these two stoping areas in their mine plan and subsequently had begun developing to these mining areas. Throughout April, Magna increased the development footage and started to move towards mining stope shapes in the 700 foot wall copper zone that were designed and developed by Magna. Emphasis was placed on grade control and incorporating more geology into the localized resource block model in these stoping areas. May and June were progressively better operational months. Ore grades and tonnages increased substantially, resulting in much higher copper equivalent payable pounds.

In April, the copper equivalent payable grade was 2.54%, increasing to 3.34% in May and 3.56% copper equivalent in June. Likewise, the ore shipped increased month over month from 15,580 tonnes in April to almost 27,000 tonnes in May and to 27,560 tonnes in June. Overall, Macready West produced 3,050,000 pounds of copper equivalent payable for the quarter and averaged a grade of 3.26 copper equivalent. Total ore processed in Q2 was 59,100 from the 700 footwall copper zone and 10,945 tonnes from the Intervane Nickel zone. I would now like to hand over to Jason Jessup, our CEO for some final comments.

Jason Jessup, CEO, Magna Mining: Thanks, Jeff. I will now give a brief overview of Q2 exploration and our current activities at our mines in Sudbury followed by questions. I will start by talking about the McCrady West mine. As I said already, development is key to unlocking the potential at McCrady West, but profitability will be driven in 2026 by managing costs through efficiency improvements at the mine and continued emphasis on grade control. We’re starting to realize improved efficiencies by developing on multiple levels, having multiple ore mucking locations and building flexibility into our plan.

On August 6, we announced drill results, which were highlighted by two copper intersections with high precious metals near the 500 foot level at MacRiddy West. Please review our website for details on our news releases. This area has the potential for selective mining methods that could provide a source of high value ore within the coming months. The ability to convert new diamond drilling intersections into near term mining plans and production is something that makes us unique in Sudbury. As we continue to diamond drill and receive results at MacRee West, we will look at ways to optimize our production plans to generate more revenue and grow the production profile at the mine.

Moving on to Lavac Mine. In Q2, we completed approximately 10,000 meters of exploration and infill drilling at Lavac. Most of these meters were testing areas near surface, targeting our copper rich Keel zone and areas around the main ore body. This drilling provided information on the orientation of the veins in the Keel zone and expanded on the known zone. Some of the meters were focused on pure exploration drilling and an underexplored area in the footwall of the number three ore body.

Pole MLB 2514A was started in late May and the results were released in July. It intersected a 0.6 meter zone grading 8.1% nickel, 2.5 copper and 17.9 grams of platinum plus palladium plus gold. This intersection reminded me of the upper part of the Morrison Footwall deposit at Lavac Mine, an area we refer to as Rob Zone. Please visit our website for more details on that news release. We have followed up on this drilling, and I am pleased to announce that earlier today, we released results from a wedge hole that tested 140 meters below the MLB 2514A intersection.

This hole had multiple intersections of high grade copper and precious metals, highlighted by 2.6 meters at 12.8% copper, 0.6% nickel and 31.8 grams per ton of platinum plus palladium plus gold, including one meter of 29.2% copper, 0.9% nickel and 53 grams of platinum plus palladium plus gold. And that 53 grams contained 29.9 grams of gold. This new target area is called the ROBS2 or just the R2 zone for short. Geophysics has been done on this hole and another wedge hole is underway. Expect more news from this area in the coming weeks.

We’ve initiated work on our internal Lavac plant in Q2 and expect to have it completed by the end of the year. We’ve also commenced a mineral resource estimate for Lavac Mine, which will be completed in late Q3 or early Q4. Lovac is a priority project for our company and will continue to be a significant portion of our exploration budget. At Crane Hill, we are advancing engineering work required for good power connections as well as finalizing designs and purchasing long lead time items for a permanent dewatering system. At this time, there is no exploration work being done at Crane Hill as Lovac is the current exploration focus.

The Podolsky mine is on current maintenance and we have been evaluating the potential for an underground bulk sample in the North Zone. There is currently a ramp from surface that has been developed to within 150 meters of this deposit with all services and dewatering infrastructure in place to commence the bulk sample. At this time, I’ll now open up the line for questions and hand it over to Paul.

Jeff Hoffman, COO, Magna Mining: Actually, I’m just going to hand

Paul Fowler, Executive Vice President, Magna Mining: it over to the operator, so I’ve got a lot of questions. Please go ahead, operator.

Conference Operator: Yes, sir. We will now begin the question and answer session. And the first question will come from Bryce Adams with Desjardins. Please go ahead.

Bryce Adams, Analyst, Desjardins: Thank you, Jason and Magna. Appreciate the update and well done with the results. It’s great to see the monthly improvements at Macready. On that note, you provided the monthly tonnes produced. For the month of June, can you split it out and highlight how many tonnes were 700 versus the Intermain zone?

And then maybe could you do the same for July?

Jason Jessup, CEO, Magna Mining: I will hand that question over to Jeff and Scott to answer.

Jeff Hoffman, COO, Magna Mining: Yes. I’ll just pull that up here, Jason. I don’t have it right in front of me. Which month’s price were you I was going

Bryce Adams, Analyst, Desjardins: to ask for June and then July, if you’re willing to add that. Just wondering if the tonnage rates are reducing at Intermain and increasing at 700 is what I’m trying to get at.

Jeff Hoffman, COO, Magna Mining: Yes. So our last shipments of intermain nickel would have been in May.

Bryce Adams, Analyst, Desjardins: Okay. So nothing in June.

Jeff Hoffman, COO, Magna Mining: That’s correct. June and July would have been all 700. Actually right at the June, we would have had about 3,600 tons. So right at the June, about 3,600 tons and that was the last nickel to leach the site, that’s right.

David King, RSVP Exploration and Geoscience, Magna Mining: Thank From the Iremium. Yes.

Bryce Adams, Analyst, Desjardins: So yes, the Lovac drill result this morning, that one is pretty eye catching. We look forward to extra results that you talked to, Jason. At the R2, can you add more drills to that zone or is the plan to keep drilling wedges? What’s the potential of getting a drill underground to test the R2?

Jason Jessup, CEO, Magna Mining: Bryce, I’m going to hand that question over to Dave King, who’s here with us.

David King, RSVP Exploration and Geoscience, Magna Mining: Yes. Good morning, Bryce. Yes. So currently, we have the one surface drill drilling there. The other is finishing up a couple of holes on the near surface.

Should have the first underground drill mobilizing in about a week to half. And then look to get a second one mobilizing as soon as you have platforms ready. So there are a couple of levels that we can access and start drilling from underground, which will avoid the widening of the wells associated with that.

Bryce Adams, Analyst, Desjardins: Okay. So it’s not just moving drills underground, it’s also increasing the drill count?

David King, RSVP Exploration and Geoscience, Magna Mining: Yes. We’re going to keep one surface drill going on that target for now and have at least two. If we have the platforms and things are successful, we’ll get a third underground rig as well.

Bryce Adams, Analyst, Desjardins: That’s great. Sorry,

David King, RSVP Exploration and Geoscience, Magna Mining: keep going. No, I was just going to say, obviously, it depends on success and available platform.

Bryce Adams, Analyst, Desjardins: Yeah. Okay. Thanks for that. Yes. And then I had a maintenance question from the income statement.

The $3,700,000 for site maintenance, is that a good quarterly run rate that we can use for future periods?

Scott Gilbert, CFO, Magna Mining: Yes, it is. That’s including a fairly large amount of depreciation for the Lavash property, and that will be adjusted once we get to the final purchase price allocation. Okay. So we’ll hold it

Bryce Adams, Analyst, Desjardins: at that level. The last question for me is on potential government grantsfunding. Are there any updates that you can provide on that front?

Scott Gilbert, CFO, Magna Mining: Or what should we be what should we

Bryce Adams, Analyst, Desjardins: be looking for in the next months or quarters? Yes. I would what I

Jason Jessup, CEO, Magna Mining: can say at this time is there’s still regular dialogue with both provincial and federal governments. So I can’t give any kind of timeframe on where there may be a decision made or not. But what I can tell you, is quite active and we will keep people updated as it progresses.

Bryce Adams, Analyst, Desjardins: Okay, perfect. That’s all for me. Thanks again and look forward to your future updates.

Paul Fowler, Executive Vice President, Magna Mining: Thanks, Bryce.

Brandon Gasper, Analyst, SCP Resource Finance: Thanks, Bryce.

Conference Operator: The next question will come from Dalton Baretto with Canaccord. Please go ahead.

Dalton Baretto, Analyst, Canaccord: Thanks, operator. Good morning, guys. I want to start with McCready West. You’ve provided guidance for the back half of this year. Jason, I’m just wondering what your initial thoughts are on 2026 and what that’s going to potentially look like even at a high level?

Thanks.

Jason Jessup, CEO, Magna Mining: Yes, sure. Again, of course, it’s a high level sort of vision of where we’re going. I would expect us to have a 700 complex or bulk mining program averaging in and around that 30,000 tonnes of ore per month at somewhere in our Q4 guidance range. There is potential to add in a couple 100 tons a day of more selective mining from also from the 700 Zone and potentially even from this area around the 500 foot level that we announced back on August 6. As drilling will start in that area in September to hopefully define a zone up there that would be mineable.

So 1,000 to 1,200 tons a day, I think is good. And again, our focus will be on quality tons and great control. There’s a huge advantage to us when you have fixed cost per ton for milling, crushing, trucking, sampling. The more metal we can put in every ton has a huge advantage to our bottom line. So that’s a pretty high level answer, I think, but it’s best I can give you at this time.

Dalton Baretto, Analyst, Canaccord: No, that’s good, Jason. Do you have a sense for where the cash costs will settle next year?

Jason Jessup, CEO, Magna Mining: At this time, I wouldn’t be in a position to estimate that. We do think there’s lots of opportunities for efficiency improvements and improving on cash cost, but I can’t give that direction at this time.

Dalton Baretto, Analyst, Canaccord: No, that’s fine. And then maybe switching gears to the assay results this morning. The Morrison analog is really interesting here. Your July drill hole had a very narrow intercept, nickel rich. These ones are slightly wider, the more copper and PGM rich.

As you continue to hit down strike, if you continue to use the Morrison analogy, what are you expecting to see?

Jason Jessup, CEO, Magna Mining: That’s a great question. I will hand over to Dave King.

David King, RSVP Exploration and Geoscience, Magna Mining: Yes. The experience in the Morrison deposit started off with like Jason said, Rob Zone that was Nickel Ridge, Pentland Dight was same. And they transition fairly quickly into narrower sulphuric veins, kind of like I think what we’re seeing in our first hole in the six zero eight three WEG-one hole. And then it’s just a matter of following that using geology, geophysics until you find the thicker portions of the bank. The central portion of the Morrison deposit, banks were typically sort of three to six meter range.

So that’s the kind of area that can really add a lot of value to the vertical meter and that’s essentially what we’re looking for. I guess the other point at Morriston was as you went deeper into the system, the PGE grade continually increased as well. That’s a positive.

Dalton Baretto, Analyst, Canaccord: So is that what you’d want to see? You’d want to see sort of a five to six, well, a much wider intercept before you’re willing to confirm this as a new discovery?

David King, RSVP Exploration and Geoscience, Magna Mining: That’s kind of what Jason and I talked about internally, right? We’ve really got two holes into it. There’s a lot of geologic interpretation in our sort of exploration model right now. I’d like to get a couple of more holes and I’d really like to get one that’s a few meters.

Dalton Baretto, Analyst, Canaccord: That’s great. Well, all the best guys. We’ll be watching for it.

David King, RSVP Exploration and Geoscience, Magna Mining: Yes.

Conference Operator: The next question will come from Brandon Gasper with SCP Resource Finance. Please go ahead.

Brandon Gasper, Analyst, SCP Resource Finance: Good morning, guys. Thanks for taking my question. Trying not to be too redundant here, just to come back to MacReady on the grade increase that’s guided and the cash cost improvements. Just could you provide just like a little bit more color on the specifics that’s going to drive the grade improvement and cost over the coming quarters? Is it stopes design, optimization, drill patterns?

Just curious.

Jeff Hoffman, COO, Magna Mining: Yes, can take that question, Jason. And thanks for the question, Brandon. Really, the I think both great increase in cash costs are sort of related to the same sort of directive that we’re trying to get ourselves developed to some sort of higher grade, more prospective mining areas a little further away from where we are mining currently at McCready West. It gives us a couple of advantages of where I could you could see a lot of the mining areas we’re currently or actively mining are sort of very close together. So logistically, it adds a lot of complexity and we’re around lot of mining voids currently where we are.

So getting out to some areas that are a little further away from that sort of centroid of where we’re mining now That gives us the advantage of getting outside of some of those mining voids, but also where we see this increasing grade as well, Brandon. So yes, we’re trying to get developed out on multiple levels to some more prospective higher grade mining areas. So I think your cash cost and your grade increase are both of those things will be affected by getting out to those areas sometime in Q4.

Brandon Gasper, Analyst, SCP Resource Finance: Right. And just on the development, it seemed like despite the stope availability constraints in April, development rates are increasing quite strongly into this quarter. But when did you guys implement the contractors? Like is that did that start in sort of Q2? Or is it really just kind of starting this quarter, so we should expect these to head in similar trend here?

Jeff Hoffman, COO, Magna Mining: Yes, good question. I’d say there was a small effect to the contractor addition towards the end of the quarter, Brandon. So into this quarter, you’ll see hopefully slightly increasing development rates. We’re also adjusting the plan. Guess another thing, Brandon, there’s some areas that we’re going after require a little more rehabilitation, but using some existing development.

So utilizing some of those resources in some rehabilitation areas is ongoing as well. So it’s taking advantage, I guess, of what’s in front of us as we learn more about the mine and its current condition. So yes, a little bit of that influence at the end of Q2 coming into Q3.

Brandon Gasper, Analyst, SCP Resource Finance: Okay. And just lastly, I definitely can’t gloss over this exploration result today. It’s pretty spectacular. I know this is something that you guys have been working on for a while. It seems to me like this correct me if I’m wrong, this is completely wide open, right, at this point.

Like I know it’s a single hole here, but that football environment that you’re testing, what’s it’s six fifty meters away from infrastructure in one direction and less in another direction. But in terms of drill holes, how open are we looking at?

David King, RSVP Exploration and Geoscience, Magna Mining: I’d say very open. There are some drill holes down at those elevations kind of in and around the area. But I think what’s key is we’re looking at more what seems to be more of a structurally controlled area with sort of North South striking veins. And that’s the historic drilling in the area wasn’t targeting that style of mineralization and essentially would have missed anything like that. So fairly open beneath us at depth and below the 3,600 level, like we’re drilling now up around the 2,900 foot level, below 3,600 wide open.

And then out towards more into the south, which was about 600 meters away fairly open as well.

Brandon Gasper, Analyst, SCP Resource Finance: Wow. Okay. And just a reminder here, this would be outside the Franco Nevada precious metal stream, right? This is entirely unencumbered by any royalties?

David King, RSVP Exploration and Geoscience, Magna Mining: That’s right. This area is, yes, completely outside. The Franco royalty at the back is fairly close to the known Northern deposit and then a small area in intermediate ore body.

Brandon Gasper, Analyst, SCP Resource Finance: Okay, great. Congrats on that guys and thanks for taking my questions. Yes.

Jeff Hoffman, COO, Magna Mining: Thanks, Brandon.

Conference Operator: I would now like to pass the call over to Mr. Fowler for any possible webcast questions.

Paul Fowler, Executive Vice President, Magna Mining: Thank you. Yes, we’ve had a few questions online, some of which are duplicates, but I’ll try and ask a couple here that would hopefully cover a few topics. There’s been a couple of questions about remaining capital investments at Macready and any updates to projections on anything we can say about cash flow, free cash flow next year. A lot of this has already been covered in some of our guidance, but I’ll just hand that over to Jeff or Jason quickly to comment perhaps.

Jason Jessup, CEO, Magna Mining: I’ll take that one. So remaining capital, obviously, this year we’re increasing capital to catch up on development as well as replace a couple prime movers, couple of scoop plans. I would expect that next year we’ll probably spend at least $2,000,000 on replacement of capital equipment as well, which is I think quite reasonable. We do not expect to have mining contractors on-site to do our primary development next year. We’ll be doing that in house.

So that will have an improvement. So there isn’t beyond this year, a large amount of capital required at McReview, I think. Now looking at what kind of cash flows we next year, again, it’s quite early to kind of predict that. So I’m going to leave that question, I guess unanswered for now. But again, I think we’re moving in the right direction, and I think there’s a lot of efficiencies to be realized, which will result in lower cost.

Paul Fowler, Executive Vice President, Magna Mining: Thank you, Jason. And I’ll just ask this one last question as well that relates to the challenges or opportunities with building a potential new discovery here in R2 into a future mine plan at Levac. Perhaps if Jeff or Jason, you want to answer that one as well or even Dave.

Jason Jessup, CEO, Magna Mining: Well, I’ll start that one and maybe hand it over then to Jeff to just comment on. But obviously, this is a very new realization. We just received the assay results for this whole in the last twenty four, thirty six hours. So very, very new. That being said, we had seen visually that we had intersected massive sulfides, which I cannot help myself, but start thinking about how we would mine that.

Having been a big part of the development of the Morrison deposit at Lavac Mine and along with Jeff, brought back good memories and fun times. So it is actually we’re set up quite well. Where this hole was intersected is actually between the 2650 Level, which is our active shaft station at Lavac Mine. And the historic 36, which has not been activated since the time that Inco was mined, but we are in the process of reestablishing that level as secondary egress for neighboring mine. And again, this intersection is sort of in between those two levels.

So in relative close proximity to infrastructure and ramp, if we were to drift directly to the east off of the Morrison Ramp, there would be between six hundred and seven hundred meters of development to get out to it. And then we’d be connected right to the ramp, which would be could truck material right to the 2650 station. So it is a great infrastructure wise, I think a great part of the mine, it’s wide open. Obviously, there would be work to be done to get all the services and power and everything out to that area. But it is a I would say a very reasonable expectation that a new discovery and a deposit in this area could be mined and extracted in fairly short order.

Jeff Hoffman, COO, Magna Mining: I don’t think I’d have much to add there, Jason. Obviously, very exciting. And as you said, the infrastructure is fairly close. I guess the only other thing I’d add is, Lovac Mine has remained on care and maintenance. We have people going underground every day at Lovac Mine.

As Jason just alluded to, we have some work that is commencing down on the 3600 level. So we have people going up and down the shaft every day. And so it’s we’re ready to access the work areas, get the diamond drills underground in the positions that they need to be. And yes, we’ve got access. So very, very exciting.

Paul Fowler, Executive Vice President, Magna Mining: Thanks, Jason. Thanks, Jeff. Operator, that concludes the online questions that we’re

Jeff Hoffman, COO, Magna Mining: able to answer today. Thank you.

Conference Operator: Yes, sir. This will bring a close to today’s conference call. You may disconnect your lines at this time. Thank you for your participation and have a pleasant day.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.