So welcome if you tune in from overseas. If you watch this live, you can, as always, interact with the management, and you will do that via the chat page and we will deal with the questions at the end of the presentation. So without further ado, it's my great pleasure to say hi and welcome, Peter. It's an honor and great news from Hennes Bay last week. So please take it away.
Yes, great. Thanks very much, Carlo. Look, thank you everybody for joining in today. As I said sorry, as Carlo said, apologies for doing this in English for our Swedish listeners, but we do have quite a few people tuning in from overseas at the moment. But extremely positive news for us as an organization last week and something that we've been working towards over the last couple of years with the release of the maiden resource for Hennes Bay, where we're coming out with 447,000 tonnes of contained copper and 37,000,000 ounces of silver to now be coming out with the fifth largest undeveloped copper deposit in The Nordics all of a sudden.
So a very important milestone for us and as I mentioned, something that we've been working on for the last couple of years. I guess I'll take a little bit of a step back though to give a bit of history on where Arctic has come from in the last twelve months. And I think it's better start with the rare earth energy metals story. So that was a private organization that I started together with a few old compatriots of mine being Robert Behcetz and Eric Lundstrom. And we picked up the Hennes Bay project and the Swan Lake project in Sweden going back into 2023 and realized that we were sitting on some pretty exciting ground.
And then it was our aim then to get that private vehicle into a listed vehicle of which we achieved that target in October of last year being 2024, where we merged Rare Earth Energy Metals together with Arctic Minerals. And that was a fifty-fifty merger between the two companies, which suited us because we were looking as Rare Earth Energy Metals, we were looking for a public vehicle. And Arctic Minerals were looking to, I guess, renew their management and renew their board by their own admission getting a little bit long in the tooth. So it was a meeting of the mines and we've been working very hard since October of last year on getting our maiden resource out for Hennes Bay. And like I said, that was released last week.
For those of you that have got the presentation in front of you, please refer to the disclaimer and the important information there. But I guess I'd like to start though with the joining of the two companies. We have an extraordinary Board and Advisory Committee available to us today. I I guess I'll start firstly with Peter Walker, having been involved with Arctic for some years and the current non executive Chairman, fantastic pedigree discovered the Kevitsa project, which was sold into First Quantum a number of years ago through, I believe, Scandinavian Minerals, which has then been sold on to Bulleiden and now being operated by them. As I mentioned, Robert Behetz, he and I have known each other for going on thirty years, extremely valuable member of the team where he's done taken projects very similar to Hennes Bay with companies with a very low market capitalization, taking that all the way through to sales of when I'm talking about billions of U.
S. Dollars in sale of the companies over a number of years. Then of course, on the advisory committee, I've got again Eric, one of our partners from Rareth Energy Metals and a name that would be quite familiar to a number of people here in Sweden being Mr. Lars Yelicaro, a former Senior Executive for Bulleit and of course, Managing Director for LKB in the past. So I guess the next part of this is just to have a bit of a chat about the fact that we've now with Arctic Minerals, we are now a truly Nordic explorer.
We have the projects that were in Arctic Minerals prior to me joining the board and together with Rare Earth Energy Metals, the projects in Bijuwagi over in Norway and of course, our two other projects in Finland. But then of course, we have our two projects now in Sweden with Hennes Bay and Swan Lake up in the North. So as mentioned, a truly Nordic explorer and now with the release of the Hennes Bay maiden resource that takes us into, I guess, into more into the development phase in that particular project as well. So talking about the maiden JORC compliant resource, for those of you that don't know what JORC is, so it's really I guess it boils it down to a third party independent reviewer of all of our information that will sign off. And it's not just our opinion as to what it is that we have, but these are third party experts that can take a look at everything that we have.
And now the ones that have signed off on the 55,000,000 tonnes at that one percent copper equivalent, which is equivalent to about 0.8% copper and 20 something or the 4.8 grams per tonne of silver. That gives that total metal content of the 447,000 tonne of copper and the 37,000,000 ounces of silver. So 100% of that resource is in the inferred category and that has been calculated at 0.8% cutoff of copper equivalent. Now I think moving forward with this particular project, it's obviously with the increase in the share price that we've had since the release of the maiden resource, over 99% of the value of the company sits within the Hennes Bay project currently, but the projects that we have also in Norway, Northern Sweden and in Finland are very extreme value and extremely interesting, but I'll focus more today on the Hennes Bay project. So Hennes Bay itself was initially well, the Storoz Trund project, which sits out to the eastern side of our tenement, and that was mined going back into the early 1900s, quite high grade copper, one point sort of 4% to 1.5% copper.
Again, a couple of grams, up to four grams per tonne of gold. Interestingly enough, the gold, we haven't seen over in our in the rest of our resource yet, but I'll come back to that at a later stage. But the Hennes Bay project itself is made up of at the moment six prospects that sit within the area. We've now defined those as a sedimentary hosted copper style deposit. And of those six deposits, we've really only focused on the one being at Dengal Vieck itself for this point in time.
That's where the 55,000,000 tonnes come from. There's about 11,000 meters worth of drilling into that particular prospect. We have another five prospects there, which are very close to being able to classify it as JOR compliant as well with another 4,000 meters worth of drilling in them, but we decided to take a conservative view on that and agreed with our third party independent geos that we'll leave those for another day. But there's at least another 15,000,000 to 20,000,000 tonnes sitting in there with the current drilling. But the project itself is not just about the current resource of that 55,000,000 tonnes.
As mentioned, there's another 19,000,000 tonnes there that we can access relatively quickly with a small amount of drilling. But we're really only just scratching the surface of this project, and this is what makes it so exciting. So if I draw your attention to that particular diagram there, you can see the Dingavik prospect there in the middle, that little red area, the other five prospects in yellow. So it's quite obvious that we've really got less than 5% of the tenement package has been tested. But we've crawled all over the top of this and we can actually see this mineralization popping up over 17 kilometers away at surface.
And you can see there, there's one drill hole of 1.78% copper and 40 grams per tonne silver. So that's quite typical for this style of mineralization, extensionally large over numerous kilometers and it's you can do the sums yourself, but it's going to be an awful lot larger than what this is today once this project is finished exploring, which could take decades to be fair. So our forward work plan for Hennes Bay. As with all of these types of projects, look, stakeholder engagement is extremely important. Last week, I was in normal meeting with the local media and previously to that, I've been over there meeting up with the local mayors.
I think it's fair to say they're a little bit shocked at the potential size of what we think that we're dealing with here, but still positive. I think that the general feedback from the media was extremely positive. We're talking about a part of Sweden, which is not necessarily been forgotten from an industrial sense, but there's been a lot more focus on other areas of the country. So an area that could really do with the jobs and the infrastructure that follows naturally with the mine. But then on the stakeholder engagement, that then of course rolls into us needing to do all of our environmental heritage and cultural investigations.
Very important for us to understand what the flora and fauna looks like in the area, whether or not there's any cultural aspects that we need to be careful of or avoid altogether. And then from out of that, we will then roll into doing things like the preliminary economic analysis, where we'll start doing designs and schedules over what a potential mine could look like and then of course, an economic analysis out of the back of that. So a lot of work in that regard. Before we get to the PEA though, part of the work will move that 55,000,000 tonnes directly into a PEA now, but then the resource expansion will also start. So the exciting part about this type of mineralization is that we're really talking about being able to when you put a drill hole into the project and then you drill somewhere 500 meters away or up to 1,000 meters away, there's a fairly good expectation that the mineralization is going to look very much the same around about that 1% copper equivalent.
So we believe that we can quite quickly expand the resource that we have at Hannes Bay just by simply going out and testing the extents of the current prospects that we have. We also have some theories that the prospects that where they are today are quite distal to probably where the main source of the mineralization has. I won't go into too much geology, in essence, when you have a distal part of a system, it just means that you're getting further and further away from the heat source and where the main juice, I suppose, of the mineralization is coming from. And we have some theories and we can see where we believe we've got some structures in there that could potentially be the source where the faults and when the hot, I guess, fluids coming up from underground and then before spreading out within the sandstone mass that the ore bodies are sitting in. So none of that area has ever been tested by drilling.
So we have some very exciting times ahead of us in that particular area there. And then of course, there's the as mentioned already, the PEA that we'll be rolling into at there at the same time. So we're now no longer just an exploration company, we're also a development company and an awful lot of focus is going to be going on to all those different work streams that we have going forward. So I guess I'll just touch one more time on our balanced portfolio. We do have these other projects in Norway.
We have our Swan Lake project in Northern Sweden and our two projects in Finland. Not that they are not important, but the majority of our value is within Handels Bay at the moment, but we will continue to push those other projects along. And we believe that there's some serious upside available for those. And if you really want to take a good look at that particular map or that triangle that I have there, that's a very good example for people who perhaps don't really understand the resources industry that well, where we have different milestones that you can move through as an organization that you will achieve. And as you move through your PEA, you move through your pre feasibility studies, you move through your feasibility studies and you also move through your permitting.
Each time you achieve one of these milestones, the company really leaves itself open to be revalued by the market. So and I think the first example of that occurring was what we did last week with our maiden resource for Hennes Bay and our share price jumped from a bit over 2 to I think it nearly hit 15.5 at one stage, which we're obviously extremely pleased about. So just to finish up, so on investment proposition, so why should you invest in Arctic Minerals? Look, I think it's the right commodities. So copper is where it's at.
Silver, we're sorry, obviously copper and silver, these are metals that are already up significantly this year on the amount of their value on the market. We also have a number of critical metals within the project that haven't been touched within this maiden job resource. But we do have a significant amount of gallium, germanium, vanadium and rare earth elements within this as well. And as mentioned, we have the gold over there that we've seen at Storis Dun as well. So I see these as bonuses that are great, not necessarily going to be the main economic drivers of the project, but it's still very important in their own right.
The right geology, so the sedimented hosted copper that we have, I believe that 25% of copper is produced out of these sediment hosted copper style deposits today, with the rest being predominantly produced through porphyry copper style deposits and then of course some VMS to follow from that as well. I already mentioned the people that we have involved. The company has a fantastic pedigree and some very valuable people that I can call on a daily basis that give me their time and will set this company in good stead going forward. The right jurisdiction, I haven't spoken too much about Sweden, but it's one of my favorite places to operate. Obviously, The Nordics as well with Norway and Finland.
And I've been coming backwards and forwards here for thirty years and I think it's fair to say that this is the bullish most bullish I've ever seen in Sweden as far as the mining industry is concerned. Very strong pipeline of projects, as I mentioned, even though the majority of the value is held within Hennes Bay. And then of course, position for the Scandinavian market. So we are a Swedish company. We're listed on NASDAQ, on the Stockholm Exchange.
We do have a large Swedish ownership and a large Nordic ownership for that matter. And obviously, with myself and gentlemen like Eric and a few other guys, we have a very Swedish focus with regards to how we want this company to go forward. So that's really all I have for today. Thank you very much.
Thank you, Peter. That was a lot, I would say. As always, we have received quite a lot of questions before, and we have a couple of questions coming in here. But before we focus on Hennes Bay, I'd just like you to elaborate a little bit of peak copper because if we look at on this on a top down situation, as I understand it, we need more copper, but there isn't any.
Yes. Well, that's a bit of a pet topic of mine, I have to admit. Look, peak copper for those that don't know what it means, it basically means that we can't as an industry or as a mining industry produce the amount of copper that the world is going to require going forward. And there's a couple of reasons behind that. And I guess, in my prior training as a mineral economist, I like to study all these sorts of things and find them very interesting.
But just the average grade of copper mines around the world in the last twenty five years has fallen from a bit over 1% to around about zero five percent. A lot of the high grade ore bodies that we've seen over the years, they've been mined. And the big old mines that we have today are getting deeper and they're getting more expensive. And the lack the sheer lack of exploration money that has been spent in the last forty years is quite scary to the point where I don't know where we're going to be able to find these mines to actually go off and produce the amount of copper that we require going forward. And I think from our perspective in Sweden, obviously, with when COVID came along and the Chinese flex their muscles and said that we'll sell you some metals if we feel like it, that scared everybody a little bit.
And then of course, with Russia invading Ukraine, we realized that we can't really rely upon their supply chain either. And now of course, we're in a scenario where The U. S. Is flexing their muscles as well. So there's a real nationalization of supply going on here.
And I think, I guess, to finish off on that question, Europe already imports 50% of its copper concentrate into the EU from countries such as South America and Africa. And then when I talk about copper concentrate, that's only 30% metal. So that means that we're importing 70% rubbish into Europe that we have to deal with. So when you want to talk about we shouldn't be having mines here because they're dirty things that we only ever needed in the past, but that's not fair. We really we need to be looking after ourselves as a nation and as the EU in producing our own metals.
Otherwise, we're going to be left behind.
Well, thank you for that. We have a couple of questions here focusing Hennes Bay. And one is how much is the estimated value of the Bay. But let me reframe that questions a little bit because it could be tricky to answer one way is you jumped significantly in your market cap. But if we compare Hennes Bay, the estimates here, how would you rank it with all the findings that we have here in Scandinavia?
That is a difficult question, but and I don't like to talk about other companies. But I guess, the main copper supplier in Sweden today is Bulleiten. I'm not 100 sure as to what they are producing. The next I guess, the next company off the list would be Biscardia Gruv Belog, where I think I believe they're going to go into production in next year or the year after, I'm not 100% sure. And then when you look at The Nordics, as I mentioned, we're top five in undeveloped copper projects today.
So if I guess, if I just concentrate on Sweden, we're next off the cab off the rank after Viscaria. And I guess if I mean, don't want to compare, but I think if you do yourself a favor as an investor, go back and have a look at Viscaria. They have quite a similar or a very interesting path that they've been on for the last five years since they brought the project back from an ASX listed company into a Stockholm company. I think going back into 2018, I think the project would have been valued at about NOK 150,000,000. And then today, they have a value of NOK 2,000,000,000.
And granted, they've done a fantastic job in moving through the various milestones that I mentioned with their PEAs and prefeas and feasibility studies and of course, their mining permits and their environmental permits. But so I could say if you want to compare to somebody, compare to them because we are probably where they were about three to five years ago.
And another way to also is that it's 99% of the market cap is Handels Bay at the moment. At this stage, yes. Which means for a layman as myself that you will get the other projects for free, more or less. So how should we describe the company here? I have a question here.
Are you positioning Arctic as a build and operate company? Or do you see more value in derisking projects monetizing through sales or royalties? Yes. Look, it's
early days? It is early days. But I think with the experience that we have within the company today, and I've built mining projects myself, taken all the way from scoping study through to mining, through to closing them down. So I have no problem in building a mine. But I think what's probably more relevant is that the big boys have definitely got an eye on what we're doing because there just simply aren't any new projects.
And most of the big mining companies, they don't really explore themselves. They go along and they look for companies such as ours to derisk it as much as we possibly can before they come along and hopefully offer us a massive check at the end, which all of our shareholders will be happy with. But if that doesn't happen, I'm more than happy to take this through to production.
Yeah. Exactly. There there is a plan to go all the way here. And and what is your concrete plan then to bring your current projects or project, I would say, into production? There's a view we're asking that.
If if you could give it's difficult to give too much information in that respect. But just if you can inform the market, is it five years, ten years?
Yes. A lot of that is driven by the permitting process, which I have no control over, except for that all we can really do is very high quality technical work, which I think everybody will agree that the work that we've done on the maiden resource was a fantastic piece of technical work. But as we move through the different gears, from my point of view, I see us being able to move from PEA through pre feasibility, feasibility, like I said, expanding the resource from the existing resource that we have today, chasing the potentially much higher grade source or proximal part of the system. And then so the project sort of splits into a couple of different phases that we have here. But if we focus purely on the areas that we have drilling at the moment, realistically, we could be in a position to having a mining permit and environmental permit approved within the
next five years. Okay. And do you have sufficient funding now for your exploration?
Yes. Now look, as always with junior exploration companies, always leave a little bit of hand to mouth as we move through the different phases. So we have plenty of money in the bank just at the moment to continue doing some of the technical work that we're doing. But then obviously, at some stage in the future, we'll need to be raising money again to get in there and get drilling.
And I have another question regarding the EU Critical Raw Materials Act. Do you anticipate funding, permitting or offtake advantages back of the EU Critical Mineral Pact? Yeah. Look, it's
a really interesting question. And I think from my point of view, the jury is out as to what it is actually going to mean. I think in theory, it's a very good idea and I like it. And if it delivers on what it promises, then it will be fantastic for the mining industry and fantastic for us as a company in itself. But mostly because it will well, the whole purpose of it is to try and speed up the permitting process, not that we want to take any shortcuts because I don't believe in taking those sorts of shortcuts because we want to do everything to an extremely high level.
So I don't think people need to be concerned that we will be, like I said, trying to cut corners into achieving that. But it and I've seen this in other countries around the world such as in Australia and in Canada as well, where once the government puts itself under pressure to deliver these sorts of things, it's not just a matter of speeding up the process. They also have to increase the resources that they have for their government departments that are going to be looking into these approvals and permits. And then you talk about the funding and those sorts of things that the Critical Metals Act has made. I'm very I'm going to be very interested to see what that means going forward.
So I'm sitting back and watching at this stage those companies that have achieved the strategic project status with the EU. And I think after we've done our PEA, that's something that we're going to be seriously considering putting in an application for as well.
But I mean, the long and the short story would be that you get some support from the, let's say, the Swedish government and the local authorities, I'll take it. And that leads me to an ESG question here, and I think you touched upon it. But do you feel that you have a buy in from the local municipality? Because you mentioned that one of the local mayors was a little bit, let's say, if not afraid, so at least surprised about the vastness of this project and what that means.
Yeah. Look, it always takes a lot of education when you're trying to start a large industrial project like this, just with mining. You quite often, you'll get a, I guess, a minority of people that will be quite vocal in not necessarily wanting things to be occurring in their backyard. But I think the majority, the silent majority, once they start to understand what it is that we're actually trying to do here, but not just go in and make a big put a big hole in the ground and make a big mess. This is about doing things in a way which is sustainable for everybody.
That I'm very much an environmental minor. I hate to see plants and animals get hurt. If we can avoid doing things like that, then we will. We'll put those things in place. And that's incumbent on us to actually do all of that technical work to ensure that we understand exactly what we're dealing with.
And of course, the permitting process is exactly the same. Sweden's permitting process is up there with one of the hardest in the world to get a mining project up and running. Fair enough, too. That's we all have to live here, so make sure things are done correctly.
And I think that gives one of the questionnaire an answer regarding the environmental considerations here. And you are mining it's not an open pit we're talking about?
No, we're talking about underground. Yes. And
if continue with the timeline here, what can we expect going forward for, let's say, the next five years? Yes. And we're focusing on Hennes Bay now.
Yes. So look, there's a lot of I guess, I refer back to the perhaps I can even bring up that my famous triangle that I have here. So you could see that on the screen, hopefully you can see that on the screen, but that the various milestones that we work through as an organization all the way from project generation through initial exploration, advanced exploration concept studies. So the maiden resource we've just released, we start working on the concept study or the preliminary economic analysis that will then roll of course into the pre feasibility studies and feasibility studies. And then as we move through the various permitting phases as well, including Baobetnings to Lestand or the mining permit and then, of course, the environmental permit.
And within all of those, there's an awful lot of technical work that needs to be done, as I mentioned already, with the baseline studies that we need to do on the flora and the fauna and of course, looking after existing cultural sites, if there are any. So each one of those milestones, we're going to be pushing very hard to get, I guess, through to the feasibility stage within the next three to four years. So a lot of milestones that we'll be hitting between now and then, which hopefully, well, my assumption is that we will be revalued each time we hit one of those.
And that's interesting. So let me just back off then and come back here. So in the next coming twelve months, what are your goals for Hennes Bay? And then the next question is the timeline to get into production because I think you mentioned a very important thing here is that there will be steps when you announce to the market and that you will be rewarded by the market,
all things equal and Well, first question. So focusing on the next twelve months. So our first priority was to get the maiden resource out. So we've done that now. That now rolls straight into work on the preliminary economic analysis.
So we've already started the design work on that particular project. We've already started to look into some of the metallurgical aspects and potential tailings aspects of what the project could look like. Whether we get to that before the end of the year or that rolls into next year is really going to depend upon what happens with our drilling. So I hope to be drilling before the end of the year. But before that, there will be some significant geophysical work that we want to do.
And that geophysical work is really to lock down where we believe that really high grade portion or the proximal part of the system is. We have seen it in some of the older geophysical data that we have, but we want to use some more of the modern stuff that really has only been available in the last couple of years, which will significantly add to the accuracy of where we can drill. So we'll be able to look down to anywhere as deep as 1,000 meters. I don't think we need to go that far, but we'll be able to see through the geophysics down that far and give us a very good idea of where we should be trying to pinpoint our drill holes. So,
and let's see if I understand everything here, which I don't. That means that what you have reported from Hennes Bay now, well, you know that, but there will be significant upside if the geological, let's say, theories would be more or less correct. Is that the way to understand? Absolutely.
And think that there are a few investors, I believe, that have started to tweak as to what it is that we potentially have here. So this 55,000,000 tonne maiden resource, that's just the start. This thing is going to get an awful lot bigger. It will take a long time to prove that, but that's just the nature of these styles of ore bodies. They are extensionally very large.
So and as I mentioned, these hot fluids can come up from underground, hit things like the sandstone layer that we have, and they can travel for hundreds of kilometers. And there are examples of this all over the world such as the copper schiffer down in Poland and Germany, the big mines over there in Zambia and Congo and even up in places in The U. S. Like White Pine as examples where this style of mineralization is really starting to come to the fore and in the forefront of the minds of the big players.
So there is a big chance that there will be more copper and silver in the area.
Yes. And potentially gold.
And potentially gold. So and I'll throw in a little cheeky question here. Swan Lake is mentioned in every presentation, but lacks defined resources, and now you're focusing on Henness Bay. So what concrete exploration data do you have to justify the inclusion in the advanced pipeline? Or would you move it down in the triangle, so
to speak? No, it's currently in, I guess, would call it project project generation initial exploration phase. So we already have a significant amount of geophysical data there. We do have some very shallow drilling that was done there when I think looking at some more industrial style rocks that were mined there going back quite a few years ago. But that's really what attracted us to that particular part of the world because they're sitting in between Aitik and Lava, the two largest copper porphyry like all copper porphyry projects in Europe.
And we've got all the indicators of the fact that we're standing on top of another one. So we need to do a little bit more geophysical work and a little bit more work out in the field, but that's almost ready for drilling. So don't discount that one.
But first first and then then. Yes, exactly. All right. And we have a shareholder question here. Is there a risk for shareholder dilution?
And how should one look at the positions here?
That's a loaded question. Look, I mean, as a junior exploration company, we raise money on the stock exchange. So we raise money on a regular basis. And it's always our intention to do that at a higher share price than the last capital raise. But from my perspective, with the runway of work that we've got planned going forward and the milestones that we're going to achieve over the next three to five years, and each time we hit one of those milestones, unless of course we're in a downturn or Trump gets his way and we end up in a recession, that might take a little bit longer.
But each time we hit one of those milestones, we should be revalued at a higher level. So consequently, the dilution will be at a relatively insignificant level because the share price will still be at a higher level. So that's not necessarily a concern to our shareholders.
No. And you are a shareholder? I'm very much
a shareholder. So I am very much incentivized not to let the share price sink.
That is true. So you can be diluted as the number of shares, but the value will then increase would be the answer here. And the timeline, what would be the next Well, we talked a lot about timeline. So so let me rephrase that and say, what can what would be the next news flow from you?
Well, I I think it's it's keeping an eye out for when the drill rigs start spinning. That's gonna be the well, first of all, we'll get the geophysics done and then when the drill rigs start spinning. So we do have a little bit of work we want to do first, as I mentioned. The work on the PEA going forwards and I think that's going to demonstrate to the market that this has got some serious legs. The benchmarking that I've done on a number of other projects such as this around the world, in production and in feasibility, They're making significant money based on the $3 per pound copper price.
I think the copper price today is hovering around that $5 so significantly higher. So I'm very confident that what we have is going to be extremely interesting. But then of course, you add to the you add with the potential of the high grade proximal part of the system that we haven't found yet and very exciting times for us.
And if one needs more information or would like more information, where should one turn oneself to?
Yes. There is a lot of information on the website today. So we've updated that significantly in recent times. So that's all available there as you can see on the screen. And if you have any pointed questions that you want, there's my email address on the page there as well.
So feel free to send me an email and ask me any question you like. Excellent. Well,
Peter, it's been an absolute pleasure. It's extremely interesting and thrilling, and it's quite mind boggling to come across this within Sweden, which I think is fantastic. So thank you so much. And thank you. And we will say thank you to all of you who have watched this and been very eager to ask questions.
And if you feel that you have one question unanswered, please don't hesitate. You have the e mail address. And see you next time. Thank you.