Disclosure: Nine Mile Metals Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Risks
Price and Volume (1-year)
* Qualified Person: Gary Lohman, B.Sc., P.Geo., VP Exploration of Nine Mile Metals. Nine Mile Metals Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in C$ except unless otherwise specified.
Four critical mineral projects in the Bathurst mining camp, spanning 137 sq. km, underscoring strong management conviction in the region
Portfolio Summary
Excellent infrastructure: roads, rail, water, power grid, and a deep-water port
The region hosts several inactive mills, potentially enabling NINE to reach production faster, and at lower cost, without building an on-site processing facility
Source: Company / FRC
Multiple juniors are actively exploring in the region
Glencore was a major operator in the region; its processing facilities in Quebec could potentially handle materials from NINE and other regional players
Larger players often wait for discoveries by juniors before pursuing acquisitions or joint ventures
The Bathurst Mining Camp (BMC), covering 3,800 km², is the world’s third-largest volcanogenic massive sulfide (VMS) district. VMS deposits are known for their high-grade metals (zinc, copper, and lead), often occurring in clusters, that combine to form large mining camps. BMC hosts more than 45 deposits, and over 95 mineralized zones (targets), with 11–12 having been mined since the 1950s. Its most notable mine, Brunswick No.12 (operated by Glencore), produced over 13 7 Mt of high-grade ore over 49 years before closing in 2013.
BMC is one of the world’s richest zinc-copper-lead regions, with potential for hosting long-lasting mining operations
The following sections summarize NINE’s flagship assets.
The Wedge Project Ownership and Location (Option to Acquire a 100% Interest)
The 36.24 km² property lies about 20 km southwest of the Brunswick No.12 mine. Being close to established operations lowers exploration risk , and allows NINE to leverage existing infrastructure, including roads, power, and processing facilities.
NINE gained control of the project in 2023
Location Map
Source: Company
Borders NINE’s California Lake, and Canoe Landing Lake projects
Within 20 km of the fully permitted Caribou mill (3,000 tpd), currently offline, offering the potential to use existing infrastructure instead of building a new on-site processing facility
History, Mineralization , Historical Production
The project hosts the Wedge VMS deposit, mined by Cominco from 1962 to 1968, producing 1.5 Mt of ore, with exceptionally high grades: 2.88% copper, 0.65% lead, 1.81% zinc, and 20.6 g/t silver. While the tonnage is relatively small, the unusually high copper grade is notable; most copper mines globally produce 0.5–1% copper. We believe past production is a positive, as it confirms high-grade ore, proven processing (recovery) methods, and has lower technical, and regulatory risks.
Hosts a historic underground mine
The mine was not closed because it ran out of ore ; it was due to a n underground collapse , that made further mining unsafe at the time. Historic studies suggest the area could still contain another 38 Mlbs CuEq to a depth of 274 m.
Cominco Mine
Source: Company
Only the upper portion of the deposit was extracted, and recent studies, and drilling, suggest that the lower 60% remains unmined
Exploration
NINE initially carried out a multi-phase exploration program, using 3D modeling to integrate 70+ historic drill holes from previous operators , and geophysical surveys, which indicated that over 60% of the known deposit likely remains unmined at depth.
Management’s near-term goal is to fully evaluate the remaining mineralized material within the mine, and advance toward production, while evaluating other targets.
Exploration has identified four high priority targets: Main Wedge, Western Extension, Tribag, and Eastern Extension, along an 8-km mineralized trend
Prospects
Qualified Person: Gary Lohman, B.Sc., P.Geo ., VP Exploration of Nine Mile Metals
Source: Company
Sampling returned up to 15% Cu, with multiple samples exceeding 10%, representing unusually high grades
Sampling and drilling (nine holes totaling 1,984 m) outside the old mine identified at least three new zones (targets), and showed that the mineralized area extends further than previously thought, both laterally and at depth. This is significant because VMS deposits typically occur as multiple clustered or stacked lenses.
2024 Drill Highlights
Phase one drilling (2024) returned high grades over long intervals, including 136.1 m of 0.68% CuEq, with 40 m of 2.03% CuEq, and multiple other intercepts of 1–2% CuEq
Qualified Person: Gary Lohman, B.Sc., P.Geo., VP Exploration of Nine Mile Metals
Source: Company
In phase two (2025), all five holes intersected copper, including up to 32.1 m grading 2.80% CuEq
Drill Targets
* On this map, red and purple indicate areas with strong potential for mineralization
Exploration success across the sector has improved with technological advances, including geophysics, UAV drone magnetics, and algorithmic processing
Seven high-priority targets have been identified across the Wedge, Tribag, and West Wedge zones
To date, all exploration has focused on the area marked 1 on the map to the right, located near the historic mine
Source: Company
The other numbered zones, shown in red and purple, represent new high-potential targets that have not yet been drilled
Phase three drilling is scheduled to begin in May
Historic mining at the Wedge produced ~100 Mlbs of CuEq . With ~60% of the deposit still unmined at depth, and historic studies suggesting the mined area could contain an additional 38 Mlbs of CuEq, we believe there is potential for a further ~300 Mlbs within the historic mine area alone. Phase three drilling at the new targets will provide key insights into the upside potential of the project.
The Nine Mile Brook Project
The Nine Mile Brook project, covering 50.04 km², lies within the Spruce Lake Formation. Exploration to date has identified two primary VMS mineral showings. The first, the Nine Mile Brook VMS lens, measures approximately 10 m long, 2 m wide, and 15 m deep. The second, the Willet VMS lens, measures roughly 20 m long, 3 m wide, and 15 m deep. Size-wise, we believe the se lenses are modest for VMS deposits, yet they display substantially higher grades . There is potential for additional lenses, as VMS deposits typically occur in multiple lens-shaped bodies within the same geological system.
NINE gained control of the project in 2021
Mineral Showings
Source: Company
Located 10 km southwest of the historic Brunswick No. 12 mine
A 1,200 km drone survey identified 65 priority targets, the majority of which remain undrilled
A 2022 drill program at the Nine Mile Brook VMS lens reported several high-grade intercepts, including 10.12% copper, 1% zinc, 1.41% lead, 91.47 g/t silver, and 0.84 g/t gold (13.71% CuEq) over 15.10 m; the highest-grade copper ever discovered in the BMC.
2022 Drill Highlights (VMS Lens)
Qualified Person: Gary Lohman, B.Sc., P.Geo., VP Exploration of Nine Mile Metals
Source: Company
Drilling at the Nine Mile Brook VMS lens has returned grades of up to 18.55% copper (within a 13.71% CuEq bulk sample), while surface sampling has returned up to 14.05% copper
The second target, the Willett VMS lens, which has never been drilled, has returned surface samples of up to 12.4% copper
The company is conducting a bulk sampling program, testing 1,000 tonnes of rock to determine the most efficient method for metal extraction, and to assess whether nearby facilities can process the material. Notably, NINE is collaborating with Glencore to evaluate whether their Horne Smelter in Rouyn-Noranda, Quebec, can process high-grade material directly, potentially bypassing milling, saving time and capital. We believe that successful tests could potentially pave the way for a joint project, or even an M&A opportunity, making these tests highly anticipated.
Bulk testing with Glencore could accelerate development
Management and Board
Share Ownership
Source: FRC/Sedi
Management and board own 15% of the company’s equity, and bring capital markets, exploration, and operational expertise
Three out of five directors are independent
Brief biographies of the management team and board members follow:
Patrick J Cruickshank, MBA – CEO & Director
Mr. Cruickshank has over 20 years of wealth management experience with Merrill Lynch, Legg Mason, and Citigroup, specializing in funding and growing companies. He served as an NFLPA advisor from 2000 to 2012 before moving into private equity, where he has focused on energy and resource investments since 2012. He holds an MBA from the Schulich School of Business at York University and is a former Canadian Olympic/U23 soccer player.
Gary Lohman, P. GEO - VP of Exploration & Director
Mr. Lohman is an exploration geologist with 40 years of management experience in precious and base metals, skilled in geological, geochemical, and geophysical techniques across VMS, porphyry, and IOCG (copper-gold) systems. His experience includes evaluating gold-silver projects across the Americas, as well as industrial minerals such as graphite, titanium, zeolites, and building stone.
Jimmy Jeon, CPA – CFO
Mr. Jeon holds a BBA from Wilfrid Laurier University and has expertise in accounting, regulatory compliance, and financial management. He has provided CFO and advisory services to multiple public companies through the MSSI team in Toronto.
Jonathan Holmes, BA – Independent Director
Mr. Holmes is a partner at Dig Media Inc., parent of the Investing News Network (INN). As co-founder and managing director of INN Australia, he helped expand its presence. He has worked with 200+ public companies across North America and Australia, specializing in venture capital, investor relations, and strategic marketing.
Brett Wallace, LLB – Independent Director
Mr. Wallace is a geoscientist, lawyer, and corporate executive with over 20 years of experience from greenfield exploration to mining operations across multiple commodities. He specializes in corporate, major projects, and mining law, with experience on large-scale infrastructure projects in the oil, gas, and mining sectors, including roles at DLA Piper and as in-house counsel for ASX-listed companies.
Kevin Hicks, M. Sc. – Independent Director
Mr. Hicks has 38 years of oil and gas experience in Texas and Oklahoma, spanning early innovation in data acquisition technologies to large-scale data management projects. He is currently CEO of an investment firm focused on critical minerals across Canada, the U.S., and South America, and holds a Master’s in Electrical Engineering from Oklahoma State University.
Financials
Management budget (2026): Wedge: $2M, Nine Mile Brook: $1M, California Lake: $0.5M
Closed a $4.63M equity financing in January 2026
Source: FRC / Company
The company is currently pursuing a $1M equity financing
In-the-money warrants could bring in $1.43M
FRC Comparables Valuation
We currently value NINE solely on our speculative estimate of ~300 Mlbs of unmined material in the historic mine area at the Wedge project, which is the only component that can be quantified at this stage. Note that the company has identified multiple additional promising targets across the project. In addition, for conservatism, we ascribe no value to the ultra high-grade Nine Mile Brook project, as its resource potential remains too early to quantify.
Source: FRC / S&P Capital IQ / Various
We estimate NINE is trading at $0.03/lb vs a sector average of $0.20/lb for high-grade copper juniors, an 82% discount
Applying the sector average to our speculative estimate on Wedge, we derive a fair value estimate of $0.32/share
We are initiating coverage with a BUY rating, and a fair value estimate of $0.32/share. NINE is positioned in a proven VMS district, with existing infrastructure, nearby processing options, and supportive provincial policy that could accelerate development. The company offers early-stage upside across multiple projects, including exceptionally high-grade exploration results at Nine Mile Brook, and a past-producing Wedge asset, with significant remaining potential, and multiple new targets. Near-term catalysts, including drilling, processing tests with Glencore, and resource expansion programs, could drive strategic interest in the portfolio.
Risks
We believe the company is exposed to the following key risks (not exhaustive):
We are assigning a risk rating of 5 (Highly Speculative)
