Friday 12th August 2022

Braveheart Resources : MD&A Q2 2022 | MarketScreener





The following management’s discussion and analysis (“MD&A“) is management’s assessment of the results and financial condition of Braveheart Resources Inc. (“Braveheart” or the “Company“) and should be read in conjunction with the unaudited interim condensed consolidated financial statements for the three and six months ended November 30, 2021 and the audited consolidated financial statements for the year ended May 31, 2021 (“2021“), which have been prepared in accordance with International Financial Reporting Standards (“IFRS“). All dollar amounts are in Canadian dollars, unless otherwise noted. The date of this MD&A is January 28, 2022. Braveheart’s most recent filings are available on the System for Electronic Document Analysis and Retrieval (“SEDAR“) and can be accessed through the Internet at, or on the Company website


Braveheart is a Canadian-based exploration company focused on acquiring, exploring and developing mineral properties throughout Canada, principally in British Columbia and Ontario.

On November 27, 2012, the Company filed Articles of Amalgamation under the Business Corporations Act (Ontario), whereby the Company was amalgamated with Braveheart to form an amalgamated corporation operating under the name of “Braveheart Resources Inc.” (the “Company”). All amounts herein reflect the financial effects of the amalgamation.

The Company is listed on the TSX Venture Exchange, having the symbol BHT as well as the OTCQB Venture Market in the United States, having the symbol RIINF and the Frankfurt Stock Exchange (FSE) having the symbol 2ZR.

The consolidated financial results include Braveheart Resources Inc. and its wholly-owned subsidiaries, Pickle Lake Minerals Inc. (subsequent to December 23, 2020 acquisition) and Purcell Basin Minerals Inc., and its wholly-owned subsidiaries Bul River Mineral Corporation, Gallowai Metal Mining Corporation, Grand Mineral Corporation, and Stanfield Mining Group of Canada Ltd.


  • Bull River New Technical Report

The Company recently published on its SEDAR profile a new Technical Report and announced a 57% increase in copper metal in the new Mineral Resource for the Bull River Mine. The Mineral Resource estimate was independently prepared by Moose Mountain Technical Services (MMTS) under the supervision of Sue Bird, P.Eng.

The current Mineral Resource is based on a 0.9% copper equivalent (“CuEq”) cut-off grade (“COG”) whereas the 2018 Mineral Resource was based on a 0.6% CuEq COG. The 2018 Mineral Resource, dated November 22, 2018, was filed on SEDAR on January 23, 2019 and was also prepared by Sue Bird, P.Eng. The increases are due to the inclusion of new drilling from 2020 and 2021, reinterpretation of the mineralized shapes and additional certificates and QAQC being applied.

Management is extremely pleased with the results of the updated Mineral Resource. This represents increases in copper metal of 23% in the Indicated Mineral Resource and 230% in the Inferred Mineral Resource from the 2018 Mineral Resource estimate.

Additionally, both gold and silver metals increased by 63% and 71% respectively compared with the 2018 Mineral Resource estimate. The results are encouraging because we have significant overall increases in copper, gold and silver

| Q2 2022 (Nov 2021) MD&A


notwithstanding the use of a higher COG of 0.9% CuEq in the new Mineral Resource versus 0.6% CuEq in the previous Mineral Resource.

  • Annual General and Special Meeting
    Shareholders of Braveheart Resources Inc. approved all matters of business put forth at its annual and special meeting, including the re-election of directors David W. Johnston, Ian Berzins, Philip Keele, Aaron Matlock, Gestur Kristjansson, John Morgan, Heather Kennedy and Peter A. Lacey and a special resolution authorizing a change in the name of the Corporation to any such name that is acceptable to the board of directors, and which may better reflect the Company’s current focus on advancement of its copper assets in the battery metal space.
    Peter A. Lacey was appointed as Non-Executive Chairman and Director of the Company. Mr. Lacey is an international businessman and the founder and former Chairman of Cervus Equipment Corporation (TSX: CERV) (“Cervus”), a Canadian public company headquartered in Calgary, Alberta. Mr. Lacey received his ICD.D designation from the Rotman School of Business in Toronto, Ontario and the Institute of Corporate Directors in 2015.
  • Renegotiated Payment Terms of Ocean Partners Stockpile Financing Facility
    On December 7, 2021 the Company amended the Ocean loan agreement by extending the maturity date under the facility to September 30, 2023 or such earlier date if the Company is in default of the conditions under the agreement.
    In connection with the amendment, the Company granted to Ocean Partners 10,000,000 warrants of the Company with each warrant exercisable into a common share of the Company at an exercise price of $0.10 per share until September 30, 2023 or such earlier date if the maturity date under the facility is accelerated due to an event of default under the agreement.
  • Copper Market Prices
    Management is encouraged by the recent price levels of copper with spot market prices in the $US 4.50/pound range while in March 2020, copper spot prices were as low as $US 2.10/pound. These trends support our development and acquisition efforts.
  • Property Acquisition – Thierry
    On December 23, 2020 the Company purchased the shares of Cadillac Ventures Holdings Inc. which owns the Thierry Mine Project (“Thierry”) near Pickle Lake , Ontario from Cadillac Ventures Inc. (TSXV:CDC).
    Purchaseof Thierry NSR – On July 29, 2021, the Company amended the agreement to purchase the 2% Net Smelter Royalty (“NSR”) on the Thierry Mine Project. Braveheart issued 250,000 common shares and made a cash payment of $225,000 to repurchase the NSR.
  • Thierry Project Preliminary Economic Assessment (PEA) Highlights
    The Thierry Mine project is a past-producing copper and nickel mine located approximately 15 kilometres west of Pickle Lake, Ontario, and accessible on a year-round basis by paved and all-weather roads. The property is approximately 4,700 hectares in size. There is a municipal airport, nearby rail system and provincial power grid within eight kilometres of the mine. The underground infrastructure includes a three-compartment shaft, production decline to 520 metres below surface and lateral developments on three levels. The underground workings are currently flooded. On February 22, 2021 the Company released its PEA focused solely on mining of the Mineral Resources at the Thierry underground mine.
    Life of Mine (“LOM”) revenues from net smelter returns are estimated at $2,579 million. LOM cash flow in terms of EBITDA is $1,516 million. Net cash flow of $1,516 million less taxes of $256 million and LOM capital expenditures of $710 million results in an after-tax cash flow of $549 million. The after-tax NPV using a 6% discount rate is estimated at $240 million with an IRR of 19%. LOM operating costs are $1,063 million.

| Q2 2022 (Nov 2021) MD&A


  • Options agreement to acquire Alpine Gold Mine Property
    On March 3, 2021, the Company entered into a new option agreement to acquire a 100% interest in the past-producing Alpine Mine Property near Nelson, British Columbia. The Company previously…


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