R2 discovery: high-grade intercepts

Jason Jessup, CEO and Director of Magna Mining (TSX.V: NICU) (OTCQX: MGMNF), joins us for a Q3 financial and operations review at their producing McCreedy West copper mine, located in Sudbury, Ontario, Canada.  We also review the continued high-grade drill results across copper, nickel, platinum, palladium, gold, and silver in more recent assays returned from the ongoing exploration and development work at the Levack Mine. Additionally, we get a nice update on the development pathway at the Crean Hill Project to round out the discussion.

Q3 Financial and Operational Highlights:

• The three months ended September 30, 2025 (“Q3 2025”) was Magna’s second full quarter of production at the McCreedy West copper-precious metals Mine.
• Total ore processed in Q3 2025 was 75,215 tons from the 700 Footwall Copper Zone at a grade of 2.64% copper equivalent (“CuEq”).
• Quarterly production of 2.7 million pounds (“lbs”) CuEq at cash costs of US$5.10/lb CuEq was impacted by the previously disclosed compressed air system failure and power related delays, which delayed access to higher grade stopes and has since been rectified.
• Sustaining capital expenditures at McCreedy West totalled $4.1 million during the quarter, a 123% increase from Q2 of 2025, including $2.7 million towards critical capital development and $1.4 million in fixed and mobile machinery upgrades, focused on improving asset reliability moving forward.
• Underground development during the quarter totaled 1,796 feet and continues to be prioritized in Q4 to provide increased production optionality and flexibility to support a more robust operating plan in 2026.
• Ended Q3 2025 with a cash balance of $63.1 million and subsequent to September 30 the Company issued 14,933,518 common shares upon the exercise of warrants for proceeds of $6.0 million.

Next our conversation with Jason shifted over the workstreams building towards a mine restart plan at Levack Mine in 2026; based on the recently released resource estimate. We reviewed the steady stream of drill assays reported this year from Levack with high-grade copper, nickel, platinum, palladium, gold, and silver intercepts.  Jason highlights the optionality the different zones give the company as far as potential mine sequencing, and he notes growing value of precious metals as contributing metals credits to the project.

We discuss some of the critical zones of mineralize in areas like the No.1 to No. 2 Main area, the Morrison Footwall Cu-PGE deposit, the Keel Zone, and the footwall environment between the No.2 and No. 3 Ni-Cu Zone.  However, another newer discovery area, the R2 Zone, is quickly growing in importance as to how it could impact the early stages of mining in a development scenario; but being earlier-stage it still requires much more drilling.

Levack Exploration Highlights from the R2 Zone, released December 9th include:

• FNX6083-W3   12.9% Cu, 140.7 g/t Pt+Pd+Au and 78.0 g/t Ag over 0.3 metres, And 18.6% Cu, 38.5 g/t Pt+Pd+Au and 105.0 g/t Ag over 0.6 metres
• FNX6083-W4   12.3% Cu, 22.2 g/t Pt+Pd+Au and 78.9 g/t Ag over 1.3 metres,
• FNX2026-W1    4.5% Cu, 12.4 g/t Pt+Pd+Au and 30.0 g/t Ag over 0.3 metres,
• FNX2026-W2   24.8% Cu, 26.3 g/t Pt+Pd+Au and 153.0 g/t Ag over 0.3 metres,  And  25.0% Cu, 34.7 g/t Pt+Pd+Au and 151.0 g/t Ag over 0.4 metres

Wrapping up we widened the scope beyond just the currently producing McCreedy West mine, and development of the Levack Mine into an upcoming production decision next year, into another flagship asset in their portfolio at Crean Hill. Jason reviews some work being completed at present by a contract with regards to water treatment, and that there are further development initiatives at Crean Hill ongoing in the background where they will be summarized for investors in the middle of 2026.   

With a number of government grants and initiatives available at both the provincial and federal levels, targeting the development of critical minerals projects, Jason highlights that there could be a pathway for dual development of Crean Hill in concert with Levack over the next couple years if they were able to secure some of this non-dilutive capital, or at least an attractive cost of capital.  He reiterated that the Company maintains its ambition to become a multi-mine producer in the Sudbury Basin.

If you have questions for Jason regarding Magna Mining, then please email me at Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Magna Mining at the time of this recording, and may choose to buy or sell shares at any time.

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