Can you provide us with some background information on Sama Resources and introduce our audience to the unique mineralization of the Ni-Cu-Co-PGE Samapleu discoveries?

Sama Resources was established in 2010. The potential triple junction between Guinea, Liberia, and Ivory Coast first caught my attention while I was working on a laterite project in the area during my time as the director of exploration for Falconbridge in the 1990s. I learned about a small showing of nickel-copper sulfide, but it took another decade before I returned to Ivory Coast to form a joint venture with state-owned SODEMI and explore this discovery. We began drilling in 2010 and obtained promising results, including grades of 2% nickel, 2% copper, and precious metals such as palladium, platinum, and rhodium within a 90-meter mineralization zone. We further investigated and realized that we had encountered a much younger structure than the Craton, similar in age and geological features to the Bushveld intrusive in South Africa. Through airborne surveys conducted in 2013 and 2018, we discovered a 2-billion-year-old intrusive complex, which shares the same age as the Pyrenean Greenstone belts. Erosion had exposed this pristine mineralization that had never been altered or metamorphosed.

What is the current development plan for Samapleu?

The challenge with the Samapleu Nickel-Copper project in Ivory Coast is that we anticipate massive high-grade sulfide accumulations in several reservoirs at depth along the 50 km strike length of the Yacouba intrusive system. We already have a near-surface resource of 40-50 million tonnes suitable for open-pit operation, but we believe the potential extends much deeper. In 2018, Ivanhoe Electric provided a financing of US$25 million, expressing strong confidence in the geological model we have developed over the years. Currently, we are testing targets at depths of 800-1,000 meters, which is a meticulous process that does not yield regular news updates.

Why have these types of nickel-copper sulfide discoveries not been made in the region before?

This new mineralized intrusive system has not been previously described or recognized. To better understand its characteristics, we sponsored one of our geologists to conduct a PhD study on the subject, resulting in various published articles about this type of mineralization. Unlike nickel-copper sulfides, nickel laterites are more common in Guinea, Liberia, and Ivory Coast.

Could you provide more information about your balance sheet structure and financing?

Our relationship with Robert Friedland and Ivanhoe began in 2017 during the Indaba conference in RSA. They expressed interest in acquiring a 60% stake in Sama Nickel Corporation (SNC), the Ivorian subsidiary of Sama, by investing US$25 million. To date, they have invested over US$15 million, which corresponds to a 30% ownership stake in SNC. This demonstrates Ivanhoe Electric’s strong commitment to the project.

What is the focus of SRG Mining (SRG)?

SRG Mining focuses on a property we acquired in Guinea, just across the border from Ivory Coast, in 2012. While searching for nickel-copper sulfide expansions in Guinea, we discovered several new occurrences of nickel laterites that had not been previously described. Additionally, we identified a significant graphite zone within a 8.5-kilometer-long and up to 1-kilometer-wide area. Recognizing the great potential, we established SRG Mining in 2018 as a separate entity, with Sama Resources holding a 34% stake equivalent to 24 million shares. The project is shovel-ready, with a completed definitive feasibility study, and 80% of the potential output is already contracted. At this stage, it is a matter of securing the necessary funds to commence production.

What is the investment appetite for nickel and graphite?

Energy metals, including nickel and graphite, are poised for a promising future as essential components in battery production. The demand for nickel is particularly expected to increase. Without additional discoveries, there is a risk of nickel supply falling short of demand. Therefore, it is crucial to invest time and resources in finding more nickel, especially nickel sulfides.

Do you have a final message for your shareholders?

I would like to express our gratitude to our supportive shareholders who have been with us since the beginning. Base metals exploration is a long-term endeavor that requires financial resources, dedication, and patience. We appreciate the support we receive from Ivanhoe, and we are working tirelessly to make a discovery as swiftly as possible. Our ultimate vision is to become a successful mining player in the industry.