Magna Mining: Levack’s High-Grade Upside Keeps Growing

Trevor Hall (0:18)

Welcome back to Mining Stock Daily, everybody, heading back up to the Sudbury Basin here with Magna Mining.

Beaver Creek seems to be always like, it's a momentous time for you, Jason Jessup, because Beaver Creek really was the time where everything changed for Magna with those KJHM assets. Do you ever come back to this thing and relive the transformational decision you guys made and then get an announcer here?

Jason Jessup (0:47)

You know, yes. And I come back here and I still have a little bit of PTSD because we were supposed to announce in 2024 the signing of the definitive of KJHM on the Tuesday, and legal delays and other delays. And then it was Wednesday and then Thursday we had to halt the stock. And so the conference was almost over and I spent most of it in my condo working on this deal to get it done. So it wasn't my most enjoyable conference.

A lot of late nights and not too much socializing. But yeah, it always brings me back to that moment. And it was really pivotal for our company.

Trevor Hall (1:28)

Yeah, I remember the conversation you and I had that morning after it was announced. You know, like it was just you had a big smile on your face. Paul had a big smile and you knew you were on the trajectory for incredible, not only growth as a mining company, but incredible shareholder value. And I think you've proven that out. But it's still early days, right? I still got a long way to go. And you continue to drill more at that Levack. That's the latest news. The R2 Zone, just magnificent grades. Walk us through what we know now with these latest drill results.

Jason Jessup (2:02)

Yeah, this drill results.

You know, it was, it's great to see. And not just R2, we also released some stuff up high up in the deposit in our contact nickel zone off to the west of the main ore body. We call the West Main an up dip of what was once mined by Inco. It had some great intersections up there. But the hole that we released this W1 hole from R2, it was really to try and connect the historic number three ore body that Inco had mined to the R2 deposit. So we drilled the 100 meters in between, and intersected some great intersections, including 2.1 meters of some very good copper and nickel, and very good precious metals over half an ounce. So that was fantastic, along with some other intersections that were less than that. But now we're expanding, we're infill drilling it, and we're actually handing over the drilling for the R2 to the mine now, from the exploration department. And we have another drill set up on our 2950, that is drilling pure exploration holes in that 600 meter gap between the Morrison Deposit and R2, and we're pretty excited about that.

Trevor Hall (3:16)

How is that going to change your accessibility to really bust R2 open, really give it more definition with the drill program, going on, staying underground?

Jason Jessup (3:27)

Yeah, that 2950 drift is huge for us.

We've extended it out off of the ramp to the Morrison Deposit about 300 meters. Now we're right in the middle, so 300 meters away from R2. We have one drill set up the face, it's doing definition drilling. And what we plan on doing is extending that drift sometime in Q4. We'll finish it, that last 300 meters, and actually intersect the veins and the mineralization in R2. And then, next year, we'll be able to start silling on those veins. And that will give us such a great understanding of the continuity and be able to model it better. And this will all lead into a future resource. But as we're silling in this material, we're really excited to be able to then bring that to surface and that could get shipped off to the mill and we start getting paid for R2, which is really exciting.

Trevor Hall (4:17)

So it seems like you are increasingly seeing R2 as a much, a lot more of a potential high value production source rather than just an exploration, high grade exploration area.

Jason Jessup (4:30)

It's a great exploration area that we will mine. It's no question about it.

Trevor Hall (4:34)

Do you push it forward into a mine plan?

Jason Jessup (4:38)

It will replace, so it's not going to be included in our PEA that we'll be putting out in a few weeks.

Trevor Hall (4:42)

Okay.

Jason Jessup (4:43)

Because it's not in resource yet, so we can't put it in the PEA.