2022 was been a tumultuous year for global financial markets, with major markets such as the S&P down 19.4%, the Nasdaq down 33.0% and the Nikkei 225 down 9.4%. Despite these challenging economic conditions there has been over C$2.4 billion in financing activity by companies listed on the Canadian Securities Exchange (CSE) during 2022. IPO activity on the CSE also remained strong last year with the number of new listings totalling 104.
Last year mining companies constituted 38% of the CSE by number of companies. There are currently 309 mining companies listed on the CSE, which is the largest number since the market was formed in 2016, and the number of listed mining companies on the CSE in 2022 was up 28% on the previous year showing the rapid growth of the sector on the CSE (Figure 1).
Figure 1: The Number of Listed Mining Companies on the CSE by Year
Source: CSE
Last year the mining sector made up 16% of the total value traded on the CSE, C$1.3 billion, which is the largest proportional mining sector contribution in the markets history, with only the life science sector experiencing a greater value of trades during 2022.
Figure 2: The Total Value Traded in the Mining Sector and on the CSE by Year
Source: CSE
Also, during 2022 the mining sector accounted for 44% of the total number of fundraises on the CSE, the largest of any sector, and the second largest number of mining transactions since the market was formed. The mining sector on the CSE had over C$674.2 million in financing activity in 2022, which is 15.5% higher than the value of financings completed on London’s AIM market in the same year.
Mining new issues (IPOs) also reached its highest level since the market was formed with mining new issues accounting for 68% of the new issues on the CSE in 2022.
The CSE’s importance to the junior mining industry has grown exponentially over the past seven years, to the point where in some areas it is beginning to rival some of the more established junior mining markets.
As mining and exploration companies listed on the CSE continue to raise significant levels of capital to advance their projects, even in difficult market conditions, the CSE’s influence on the mining sector will continue to grow.
Performance of Mining Equities on the CSE in 2022
During 2022, the average share price of a mining company listed on the CSE was down by 38.5%, with 86% of the sector experiencing negative or neutral share price movements, which is not a surprise given the negative sentiment experienced by markets across the board.
Of those companies that experienced positive share price movements during 2022 the average share price was up by 56%, while the average negative movement was down by 57%.
Best performing mining company on the CSE in 2022: Snowline Gold
Snowline Gold Corp. (CSE:SGD) was the best performing company listed on the CSE during 2022, with its share up 339% in one year. Driving this performance was Snowline’s discovery at the Valley Gold Target within the Rogue project, located in the Yukon Canada.
Drill results from the Valley Target have returned intercepts of high-grade gold mineralisation, including:
- 410.0 meters at a grade of 1.89 g/t gold, including 146.0 meters at a grade of 3.24 g/t gold (V-22-007)
- 338.0 meters at a grade of 1.32 g/t gold, including 207.0 meters at a grade of 1.76 g/t gold (V-22-032)
- 318.8 meters at a grade of 2.55 g/t gold, including 108.0 meters at a grade of 4.14 g/t gold (V-22-010)
- 285.2 meters at a grade of 1.45 g/t gold, including 128.2 meters at a grade of 2.48 g/t gold (V-22-014)
These results helped the company to raise a non-brokered, C$25.2 million financing, in August, which ensures the company is well funded for an extensive exploration program in 2023.
Snowline currently has 3 diamond drills parked on site at Valley, and while the scale and nature of the 2023 programme is yet to be finalised, the company expects to drill a significant amount at Valley in 2023 to expand, delineate and de-risk the discovery, while also collecting data useful to resource estimation.
In addition to the work at Valley in 2023, Snowline intends to drill multiple additional targets, at the Gracie Target and performing first-pass drilling on new targets with the goal of making substantial additional discoveries.
Around 5,080 meters of analytical results from the 2022 Valley drill campaign are still pending so there is plenty to keep investors eyes on this exciting discovery early in 2023, and the 2023 drill programmes are expected to be finalised following receipt and interpretation of remaining drill results from Valley and Gracie on the Rogue project.
Second best performing mining company on the CSE 2022: Ubique Minerals
Ubique Minerals Ltd (CSE:UBQ) was the second-best performing mining company of 2022, up 200% following the announcement that it has signed an agreement to acquire 90% of the shares in Namib Lead and Zinc Mining (Proprietary) Limited, a company which owns the Namib lead and zinc mine, located in Namibia.
Ubique is acquiring the project for total consideration of US$21 million, which is to be satisfied through a mixture of cash, warrants, milestone payments and convertible loan notes.
The Namib project consists of a lead-zinc mine located near Swakopmund, Namibia that was built in 2018 and operated until April 2020. The project was put into care and maintenance due to health and safety concerns related to the Covid-19 pandemic, as well as the closure of the border with South Africa, from where the project sourced key supplies.
The project’s mine and processing facilities include an underground mine developed by trackless decline and sub-level stoping to yield 500 tonnes per day of ore. The ore is fed through a conventional crushing, grinding, and floatation plant to produce zinc and lead/silver concentrates, which are filtered and dried on site before trucking the concentrate 70 kms to a deep-water port with container handling facilities at Walvis Bay.
A Mineral Resources statement in 2012 and then updated after additional diamond drilling in August 2017, estimated resources as:
- Indicated 710,300 tonnes grading 7.02% zinc, 2.40% lead and 50 g/t silver plus
- Inferred 408,700 tonnes grading 5.96% zinc, 2.16% lead and 38 g/t silver.
Third best performing mining company on the CSE 2022: CMX Gold & Silver
CMX Gold & Silver Corp was the third best performing mining company on the CSE in 2022. CMX is advancing the 100%-owned Clayton silver property located in Idaho, USA. The Clayton Mine was operational between 1934 and 1985 with recorded production of 7,031,110 oz silver, 86,771,527 lbs lead, 28,172,211 lbs zinc, 1,664,177 lbs copper, and minor amounts of gold.
During the year CMX worked with Sulphide Remediation Inc to test optical ore sorting on samples taken from the Clayton Mine stockpile. The results will be used to determine the best ore-sorting process for the company’s stockpile. Assuming positive results, Sulphide Remediation will fund, construct, and deliver an ore sorting system to the Clayton Mine site capable of processing from 3,000 tonnes to 4,000 tonnes per day.
Sulphide Remediation will manage all aspects of the processing program and the revenue received will be shared 50:50 between CMX and Sulphide Remediation Inc after operating expenses are deducted.
Other Companies to Watch in 2023
Tantalex Lithium Resources (CSE:TTX) – Near-Term Production
Tantalex Lithium Resources (CSE:TTX) finished 2022, with publication its maiden mineral resource estimate for the Manono Lithium Tailings project, located in the Democratic Republic of Congo.
The resource contains 5.46 million tonnes at a grade of 0.72% Li2O in the Measured and Indicated categories and 6.63 million tonnes at a grade of 0.49% Li2O in the Inferred category. Tantalex has now commenced work on a Preliminary Economic Assessment (PEA) for Phase 1 production of the Manono Lithium Tailings project, which is expected to be completed late January/early February 2023.
The PEA will be followed up by a Pre-Feasibility Study (PFS) scheduled for completion in June 2023. Tantalex is targeting first production for from the Phase 1 lithium tailings project for January 2025, producing around 100,000 tons of 6% Li2O spodumene concentrate (SC6) per annum.
In addition to its lithium tailings project, the Company is also developing an alluvial tin-tantalum mining operation, the Titan Plant. This plant is projected to produce approximately 1,400 dmt of tin concentrate and 220 dmt of tantalum concentrate per annum.
The TiTan plant construction is underway and is expected to become operational in March 2023, which could generate around US$30 million in revenue per annum at current commodity prices
Li-FT Power – up 267% since IPO
Li-FT Power Ltd IPOed on the CSE in June 2022 and by the end of 2022 the company’s share price was up 267%.
Since its IPO the company has entered into agreements to acquire the Pontax and Lac des Montagnes lithium projects, located in Quebec, and the Yellowknife lithium project, located in the Northwest Territories.
Alongside these acquisitions, Li-FT Power has completed initial exploration at the Pontax, Moyenne and Rupert projects, defining several anomalies for follow exploration. Initial diamond drilling at the Rupert project is expected to commence in 2023.
At the Yellowknife project, 13 significant spodumene pegmatites been defined with average grades of 1.07 – 2.20% Li2O. Previous explorers estimated a resource potential of 35 million tonnes at an average grade of 1.36% Li2O for the project and Li-FT Power is planning to commence drill testing the project in 2023.
Relevant Gold – Maiden drill results in early-2023
Relevant Gold Corp (CSE:RGC, OTC:RGCCF) owns 40,000 acres of mineral rights spread across five projects in two areas, within Wyoming, US. The company’s flagship asset is the Golden Buffalo project, located south of the Wind River Mountain Range in west-central Wyoming, covering an area of 3,725 hectares (9,205 acres).
Relevant Gold has performed detailed geology and structural mapping, rock chip sampling, ground geophysics, and a soil geochemistry survey. The rock chip sampling returned grades up to 168 ppm gold and visible gold has also been mapped and sampled at surface.
In November 2022, the company completed 3,478 meters of drilling over 26 holes, targeting the Golden Buffalo Shear Zone (GBSZ) and related surface mineralisation at depth and along strike, as well as testing for parallel shear zones north of GBSZ. Initial results from this maiden drill programme are expected in early-2023.
Irving Resources – Extensive drill programs planned for 2023
Irving Resources Inc. (CSE:IRV) is a gold focused exploration company with 14 low-sulphidation epithermal gold project, located in Japan. Many of these projects are in areas of historic mining, or areas with significant geochemical anomalies.
A recently completed drill hole at the Omu Au-Ag Vein project, returned multiple high-grade gold-silver veins with results including:
- 0.41 meters at a grade of 3.12 g/t Au and 469.00 g/t Ag (8.98 g/t Au eq)
- 1.67 meters at a grade of 4.27 g/t Au and 7.55 g/t Ag (4.36 g/t Au eq)
- 1.23 meters at a grade of 6.45 g/t Au and 13.22 g/t Ag (6.62 g/t Au eq)
- 0.91 meters at a grade of 4.07 g/t Au and 21.62 g/t Ag (4.34 gpt Au eq)
In 2023, Irving plans to drill at Omu, Omui mine site, Hokuryu and Omu Sinter as well as one new target, Maruyama, located a couple km north of Hokuryu. Irving owns two drill rigs and believes drill rates in 2023 will exceed each of the past three years during the COVID pandemic.
Western Uranium & Vanadium
Western Uranium & Vanadium Corp. (CSE:WUC, OTCQX:WSTRF) is a Colorado-based uranium and vanadium mining company focused on low-cost and near-term production of uranium and vanadium. The most advanced project is the Sunday Mine Complex, which is production-ready, permitted and has developed infrastructure.
The Sunday Mine Complex has a historic resource estimate of 2.9 mlbs of uranium at a grade between 0.25% and 0.36%. Western has completed the build-out of its in-house mining capability, with the first mining team hired, facilities upgraded, and equipment and vehicles acquired.
Initial operations will focus on the development of the GMG Ore body and will involve ore production and stockpiling of high-grade ore and underground drilling/exploration to define additional production zones. Mining operations are targeted to restart in January 2023.