PJX RESOURCES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
For the three and nine months ended September 30, 2024 and 2023
PJX RESOURCES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion and analysis ("MD&A") of the operating results and financial condition of PJX Resources Inc. ("PJX" or the "Company") for the three and nine months ended September 30, 2024 ("Q3 F2024"), and September 30, 2023 ("Q3 F2023"), should be read in conjunction with the unaudited condensed interim financial statements of the Company and notes thereto at September 30, 2024.
The unaudited condensed interim financial statements were prepared in accordance with International Financial Reporting Standards ("IFRS"). All monetary amounts are expressed in Canadian dollars.
Additional information has been filed electronically through the System for Electronic Document Analysis and Retrieval + ("SEDAR+") and is available online at www.sedarplus.com.
The date of this report is November 20, 2024.
APPROVAL
The Board of Directors of the Company has approved the disclosure contained in this MD&A.
FORWARD-LOOKING INFORMATION
The Company's MD&A contains statements that constitute "forward-looking statements" within the meaning of National Instrument 51-102, Continuous Disclosure Obligations of the Canadian Securities Administrators. Forward-looking information includes, but is not limited to, information concerning PJX's exploration program and planned gold production as well as PJX's strategies and future prospects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements t hat certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include, without limitation, availability of skilled labour, equipment, and materials. Many of these assumptions are based on factors and events that are not within the control of PJX and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore reserves, resources, grade or recovery rates, risks relating to international operations (including legislative, political, social, or economic developments in the jurisdictions in which PJX operates), economic factors, government regulation and approvals, environmental and reclamation risks, actual results of exploration activities, fluctuating metal prices and currency exchange rates, costs, changes in project parameters, conclusions of economic evaluations, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and the availability of skilled labour, failure of plant, equipment or processes to operate as anticipated, capital expenditures and requirements for additional capital, risks associated with internal control over financial reporting, and other risks of the mining industry as well as those risk factors discussed in the Long Form Prospectus of PJX available at www.sedarplus.com.Although PJX has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. PJX undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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NATURE OF OPERATIONS AND GOING CONCERN
PJX is a Canadian corporation with corporate offices located at 5600 One First Canadian Place, Toronto, Ontario. The Company is listed on the TSX Venture Exchange.
The principal activities of the Company are mineral exploration properties located near Cranbrook, British Columbia. The Company is in the exploration stage, has no producing properties and, consequently, has no current operating income or cash flow. Financing of the Company's activities to date has been obtained primarily from equity issues.
The unaudited condensed interim financial statements have been prepared using generally accepted accounting principles applicable to a going concern, which contemplate the realization of assets and settlement of liabilities in the normal course of business as they come due in the foreseeable future. For the nine months ended September 30, 2024, the Company generated a loss of $5,455,062 or $0.03 per share, (September 30, 2023: $860,978 or $0.00 per share) and reported an accumulated deficit of $26,725,932 (December 31, 2023: $21,270,870). As at September 30, 2024, the working capital of the Company was $3,306,599 (December 31, 2023: $2,435,749).
Management believes that the working capital is sufficient to support operations for the next twelve months. However, additional funding will be required to allow the Company to continue operating and to fund future exploration and development programs. These factors indicate the existence of material uncertainties that cast significant doubt about the Company's ability to continue as a going concern. The Company will continue to explore financing alternatives to raise capital. Although PJX has been successful in these activities in the past, the Company has no assurance on the success or sufficiency of these initiatives or that such financing will be available on acceptable terms.
The Company's unaudited condensed interim financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the going concern assumption were inappropriate, and these adjustments could be material.
COMPANY OVERVIEW
The Company holds 100% interest in 8 properties (the Vine, Gold Shear, DD, Eddy, Parker Copper, Zinger, Dewdney Trail, and West Basin) in the Cranbrook, B.C. area. All properties are road accessible and proximal to power, rail and workforce in the Sullivan base metal and placer gold mining district.
HIGHLIGHTS FOR Q3 F2024
Exploration
One of the most significant new discoveries to date by PJX was made on the Dewdney Trail Property in late September 2023. Semi-massive to massive sulphide sediment hosted mineralization similar in style and grade to Sullivan deposit. Zinc, lead, silver, indium and other critical metals were discovered in boulders and later in outcrop up-slope from the boulders. The boulders are strongly magnetic and occur down slope from an approximately 500 metres ("m") diameter magnetic anomaly defined by airborne geophysics flown for PJX in 2021.
During Q3, PJX received a Multi-Year Area Based (MYAB) exploration permit amendment for the Dewdney Trail Property. The MYAB permit is good for a period of 5 years. Drilling commenced in early August to explore for the source of the semi-massive to massive sulphide boulders discovered in talus material and to test the outcrop exposure of zinc mineralization found upslope from the boulders. Drilling intersected a Vent breccia with sulphide mineralization that was announced at the end of August. The Vent with mineralization is indicative of a geological environment that supports the potential to discover a deposit. Two additional drills were added to the program in early September. Drilling continued into Q4. Results of the work will be announced when core logging is completed and as sample analysis results are received and compiled.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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STRATEGY AND OBJECTIVES
PJX's strategy is to generate value and opportunity for shareholders and local communities by using innovative technology and approaches to explore and develop areas with high potential for world class gold and base metal deposits.
The Company has strategically consolidated the mineral rights to over 78,000 hectares (780 square km) of land in the Sullivan (zinc-lead-silver) mining district and the Vulcan Gold Belt. The Company has collected and compiled an estimated $35 million in historical data. New exploration technologies and more advanced mapping and sampling techniques have been used to fill gaps in the data that can be used to vector exploration toward discovering one or multiple deposits. This work has identified over 20 gold and base metal target areas to explore and test by drilling. The Company is now systematically testing these target areas for critical potential. The Company also continues to develop strategic partnerships to help advance the exploration and discovery potential of the many target areas.
KEY PERFORMANCE DRIVERS
The Company has assembled a team with more than 150 years of working experience in the mining and exploration industry and meeting its related challenges. Management believes it is well positioned to attract investor interest given its 100% interest in a large land package with favourable geology to host world class deposits in a proven mining camp. The Company continues to focus resources on exploration activities to discover a gold or base metal deposit.
The ability of the Company to continue exploration is dependent on the ability to raise capital in the market. Equity capital interest in PJX depends on the price of gold and other metals, exploration results and the market's appetite for risk.
Market volatility, the price of metals and appetite for risk cannot be controlled by the Company. Demand for gold, silver and base metals is forecasted to continue to grow in the long term, while supply for some metals is expected to decline as a number of mines have closed and new world class deposits are not being discovered. Gold and base metal prices continue to strengthen during 2024. They are expected to remain strong amid global uncertainty and may spike to new highs due to potential stockpile shortages and the heightened demand for critical minerals. Overall, metal prices are expected to increase in the long term as economies recover, market volatility lessens and demand for metals increases in step with expanding economies, and a growing need for critical metals to power the electric revolution.
ABILITY TO DELIVER RESULTS
In addition to legal and capital market expertise, PJX's Board is made up of members with experience in all aspects of the minerals and metals industry from early-stage exploration through to production stage companies. In order to advance its exploration projects effectively, the Company contracts experienced mineral exploration professionals with many years of working experience specific to our geographic regions of interest.
MINERAL PROPERTIES
PJX continues to explore and advance targets to the drilling stage to discover deposits of gold and/or base metals including critical metals such as copper, zinc, and cobalt. Given the large stable of PJX properties with a pipeline of targets, the company is at a stage to form strategic alliances to advance some of the targets.
In February 2021, PJX and Osisko Gold Royalties Ltd ("OR") signed an Investment Agreement whereby OR purchased a 0.5% NSR royalty interest in PJX's 4 gold properties (Gold Shear, Eddy, Zinger and Dewdney Trail) for $1 million, and made an equity investment in PJX of $1 million as a way to have an interest in all PJX properties.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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A summary of the Company's properties appears below. Please visit www.pjxresources.comfor additional information.
Dewdney Trail Property
- The Dewdney Trail Property has significant potential to discover multiple types of deposits ranging from intrusive related copper-gold-silver and possibly molybdenum type deposits, to sediment hosted zinc-lead-silver and copper-cobalt type deposits, to orogenic gold type deposits.
- Three target areas have been identified to date. Each target area is large enough to host world class deposits, they are:
- Estella Basin target area - sediment hosted Sullivan deposit type zinc-lead-silver potential and intrusive related gold-copper-silver-molybdenum deposit potential;
- Lewis Ridge target area - Sullivan type (zinc, lead, silver), and/or Black Butte or Mt. Isa copper- cobalt deposit potential; and
- Tackle Basin target area - Orogenic and/or intrusive related gold deposit potential.
- Expert Geophysics completed an 875 line-km airborne Mobile-MT and Magnetic Survey across the entire Dewdney Trail Property in 2021.
- The Estella Basin and Lewis Ridge target areas are the focus for exploration at this time.
-
In July 2021, PJX completed a 5-year option agreement to acquire 100% interest in the historical Estella
Mine (the "Estella") crown grant claims from Imperial Metals Corporation ("Imperial"). The 14 Estella claims (2.2 km² area) are encompassed by the large Dewdney Trail Property (270 km² area) and occur within the Estella Basin target area. The Estella Mine produced lead, zinc, and silver from a vein. The
Estella claims have had no significant work or exploration since the mine ceased operating in the 1960's. - Geological mapping, prospecting, geochem surveys, and preliminary drilling (1980 m) during 2022 focused on exploring the Lewis Ridge target, a 2.5 km long Mobile-MT anomaly with a coincident mag signature, and on exploring the Estella Basin target area.
- The 2022 work identified massive pyrite mineralization with anomalous copper, cobalt, silver and nickel while drilling at the Lewis Ridge target, and quartz vein grab samples with gold, silver and copper associated with syenite (alkalic) porphyritic intrusions in the Estella Basin target area. One rock grab sample of the intrusive with quartz veins analyzed 6.9 grams per ton ("g/t ") gold, 447 g/t silver and 1.108% copper.
- In the summer of 2023, an iron-oxide breccia zone with localized copper mineralization was discovered approximately 1500 m southeast of stacked bedding parallel quartz veins that contain up to 63 g/t gold. This new breccia zone is approximately 3 km southwest of the historical Estella Mine.
- The most significant discovery to date for PJX was made in late September 2023, when PJX's prospecting team discovered over 60 boulders with semi-massive to massive sulphide mineralization in an area about 50 m by 150 m at the base of a talus slope approximately 400 m from the historical Estella Mine.
- Former Cominco geologists that worked at the Sullivan mine confirm that the style and grade of mineralization is similar to the sediment-hosted Sullivan Mine, not the Estella Mine vein type deposit. They also confirm that this is the first time this style of mineralization with such good grades have been discovered outside the Sullivan Mine basin that is located about 25 km to the west.
- The sulphide boulders with zinc (sphalerite mineral), lead (galena), and iron (pyrite and pyrrhotite) are magnetic. The boulders occur at the base of the mountain slope and down slope from a large magnetic geophysical anomaly that could be the source of the boulders.
- Further prospecting and mapping in late 2023, discovered sediment hosted zinc and lead mineralization in outcrop up slope and to the north of the boulders. This mineralization is weakly to non magnetic.
- Mineralization found in outcrop greatly increases the probability that the boulders of Sullivan grade semi-massive to massive sulphide mineralization found at the base of the mountain slope are close to their source.
- The two different styles of zinc-lead-silver mineralization with varying magnetic properties represent separate zones or horizons that could be stacked above one another or lateral to each other, similar to mineralization at the Sullivan deposit.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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During July 2024, PJX received a permit amendment that allows for an expanded drilling program to test the New Discovery and other targets for 5 years. Drilling commenced in early August to explore for the source of the semi-massive to massive sulphide boulders discovered in talus material and to test the outcrop exposure of zinc mineralization found upslope from the boulders. Drilling intersected a Vent breccia with sulphide mineralization that was announced at the end of August. The Vent with mineralization is indicative of a geological environment that supports the potential to discover a deposit. Two additional drills were added to the program in early September. Drilling continued into Q4, F2024. Results of the work will be announced when core logging is completed and sample analysis results are received and compiled. The Dewdney Trail Property will continue to be a main focus of exploration for PJX in 2024 and 2025.
PJX Other Properties
PJX has consolidated 100% of the mineral rights to the largest package (over 700 km²) in the Sullivan Mining District. PJX has identified and developed a pipeline of drill ready targets on these properties in addition to those mentioned on the Dewdney Trail Property. This has been achieved by compilation of an estimated $25 million in historical work by other explorers combined with PJX infilling data gaps with new surface mapping, prospecting, soil/rock sampling, geophysics, and targeted drilling and trenching over 14 years. Targets identified include gold, silver, copper, lead, zinc, cobalt and other critical mineral potential. Deposit type potential includes,
- Orogenic and/or intrusion related gold mineralization on the Zinger, Eddy, and Gold Shear Properties
- Sediment hosted copper, zinc, lead, and/or cobalt mineralization on the Zinger, Parker Copper, Eddy, Vine, West Basin and DD Properties.
- Iron-Oxide-Copper-Goldmineralization on the Eddy and Zinger Properties.
Estella Property Option
On July 29, 2021, the Company announced the option of the historical Estella Mine crown grants from Imperial Metals Corporation under the Estella Property Option Agreement.
PJX can earn a 100% interest in the Estella by making cash payments, or, at the option of PJX, share equivalent payments, to Imperial totaling $250,000 over a 5-year period as follows:
- $15,000 on signing the agreement (cash paid); and
- $20,000 on or before July 26, 2022 (cash paid); and
- $25,000 on or before July 26, 2023 (cash paid); and
- $30,000 on or before July 26, 2024 (cash paid); and
- $35,000 on or before July 26, 2025; and
- $125,000 on or before July 26, 2026.
Upon exercise of the option by PJX, Imperial will retain a Net Smelter Return Royalty ("NSR") of 2% in respect of the Estella. PJX will have the right to buy back 50% of the NSR [being a 1% NSR] for $1,000,000, and the remaining 50% of the NSR [being a 1% NSR] for an additional $1,000,000.
The 14 Estella crown grants are encompassed by and, for reporting purposes, included in PJX's large Dewdney Trail Property. The Dewdney Trail Property and the Estella claims have potential to host intrusive related gold and copper deposits as well as sedimentary hosted massive silver-lead-zinc mineralization similar to the historical Kootenay King Mine located approximately 5 km to the south, and the Sullivan Mine located 25 km to the west. The Estella crown grants have had no significant work or exploration since the late 1960's. Optioning the Estella Mine crown grants allows PJX to fully explore the Dewdney Trail Property.
In conclusion, PJX remains focused on advancing priority copper, zinc, lead, cobalt and other critical metals as well as gold and silver targets with the potential to discover multiple deposits.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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RESULTS OF OPERATIONS
Nine months ended September 30, 2024:
The following section describe the most significant financial results of operations for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.
Nine months ended September 30, | 2024 | 2023 | ||
Expenses | ||||
Exploration | $ | 2,217,048 | $ | 454,293 |
General and administration | 626,879 | 387,054 | ||
Share based compensation | 2,796,688 | - | ||
Depreciation | 15,934 | 19,631 | ||
Total operating expenses | 5,656,549 | 860,978 | ||
Other revenues | - | - | ||
Loss before income taxes | (5,656,549) | (860,978) | ||
Flow -through premium recoveries | 201,487 | - | ||
Net loss and comprehensive loss for the period | $ | (5,455,062) | $ | (860,978) |
Basic and diluted loss per share | ($0.03) | ($0.01) |
Share based compensation
On May 3, 2024, the Company granted an aggregate of 12,200,000 incentive stock options to employees, officers, directors, and consultants of the Company, pursuant to the Company's Plan, at an exercise price of $0.30 per share. Of the options granted, 12,100,000 were fully vested on granting and 100,000 vest every quarter over a period of 1 year, with the first quarter vesting on granting. All options granted are exercisable until May 2, 2029. The fair value of each option was estimated on the date of the grant using the Black- Scholes option pricing model, with the following assumptions: share price of $0.29, expected dividend yield of 0%, expected volatility of 109%; risk-free interest rate of 3.73%; and an expected average life of 5 years. The fair value of all these options was estimated at $2,808,199 of which $2,796,688 has been vested as of September 30, 2024.
Exploration
The following schedules describe exploration expenses, segregated by project and by function, incurred by PJX for the nine months ended September 30, 2024, and 2023:
Nine month ended September 30, | 2024 | 2023 | Change | ||
Dew dney Trail Property | $ | 2,233,251 | $ | 425,399 | $1,807,852 |
Eddy Property | 5,461 | 10,596 | (5,135) | ||
Zinger Property | - | 2,250 | (2,250) | ||
Vine Property | - | 5,199 | (5,199) | ||
DD Property | - | 10,500 | (10,500) | ||
Gold Shear Property | 650 | 280 | 370 | ||
Others | 3,775 | 69 | 3,706 | ||
$ | 2,243,137 | $ | 454,293 | $1,788,844 | |
BC refundable tax credits receivable | (26,089) | - | (26,089) | ||
Total exploration expenses | $ | 2,217,048 | $ | 454,293 | $1,762,755 |
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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Nine month ended September 30, | 2024 | 2023 | Change | ||
Geology, geophysics and geochemistry | $ | 208,949 | $ | 313,758 | $ (104,809) |
Exploration-other accommodation | 6,525 | 845 | 5,680 | ||
Permitting | 29,649 | 13,881 | 15,768 | ||
Land rights, claims and environment | 41,758 | 20,582 | 21,176 | ||
Drilling | 1,809,593 | 15,692 | 1,793,901 | ||
Laboratory | 78,319 | 33,071 | 45,248 | ||
Camp cost and exploration supplies | 4,340 | 485 | 3,855 | ||
Exploration - travel and transportation | 15,423 | 14,656 | 767 | ||
Exploration- meals | 3,450 | 2,148 | 1,302 | ||
Rent - field office | 2,621 | 7,596 | (4,975) | ||
Option payments | 30,000 | 25,000 | 5,000 | ||
Legal expenses-exploration | - | 5,672 | (5,672) | ||
Non-flow -through exploration expenses | 12,510 | 907 | 11,603 | ||
$ | 2,243,137 | $ | 454,293 | $1,788,844 | |
BC refundable tax credits | (26,089) | - | (26,089) | ||
Total exploration expenses | $ | 2,217,048 | $ | 454,293 | $1,762,755 |
The Dewdney Trail Property was the principal exploration target for PJX during the nine months ended September 30, 2024, with $2,203,251 in exploration incurred, compared to $425,399 incurred during the comparative period.
The Company incurred total exploration expenses of $2,217,048 (net of refundable tax credits of $26,089), principally related to drilling, where $1.8 million were spent, and geology and geophysics for approximately $209,000.
No significant amounts were incurred in other properties during the nine months period ended September 30, 2024.
General and administration ("G&A")
The following schedule describes the general and administration expenses incurred by the Company for the nine months ended September 30, 2024, compared to the same period of Fiscal 2023:
Nine months ended September 30, | 2024 | 2023 | Change | |||
Insurance | $ | 19,884 | $ | 12,413 | $ | 7,471 |
Interest, bank charges and penalties | 490 | 514 | (24) | |||
Investor relations | 93,678 | 55,532 | 38,146 | |||
Listing and regulatory fees | 88,541 | 47,138 | 41,403 | |||
Office expenses | 12,040 | 11,087 | 953 | |||
Professional fees | 83,949 | 32,437 | 51,512 | |||
Rent | 16,056 | 11,242 | 4,814 | |||
Salaries and benefits | 308,510 | 198,027 | 110,483 | |||
Travel and transportation | 3,731 | 18,664 | (14,933) | |||
$ | 626,879 | $ | 387,054 | $ | 239,825 |
The most significant changes in general and administration expenses during the nine months ended September 30, 2024, when compared to the same period of Fiscal 2023, were:
- The increase in listing and regulatory fees of $41,403 relates to expenses incurred in relation to the financing closed during April 2024;
- The increase in professional fees of $51,512 principally relates to increases in accounting and audit fees of approximately $22,000 and legal fees for approximately $30,000;
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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- Salaries and benefits increased by $110,483 for the nine months ended September 30, 2024, when compared to the same period of fiscal 2023. The increase is mainly composed by an increase in gross salaries of $137,500 as a result of retroactive salary adjustments and bonuses granted to senior management. Gross salaries allocated to exploration expenses increased from $50,639 for the nine months ended September 30, 2023 to $80,221 for the nine months ended September 30, 2024.
Three months ended September 30, 2024:
The following section describe the most significant financial results of operations for the three months ended September 30, 2024, compared to the three months ended September 30, 2023.
Three months ended September 30, | 2024 | 2023 | ||
Expenses | ||||
Exploration | $ | 1,920,442 | $ | 200,778 |
General and administration | 174,015 | 120,575 | ||
Share based compensation | 5,754 | - | ||
Depreciation | 5,311 | 5,311 | ||
Total operating expenses | 2,105,522 | 326,664 | ||
Other revenues | - | - | ||
Loss before income taxes | (2,105,522) | (326,664) | ||
Flow -through premium recoveries | 171,290 | - | ||
$ | (1,934,232) | $ | (326,664) | |
Basic and diluted loss per share | ($0.01) | ($0.00) |
Exploration
The following schedules describe exploration expenses, segregated by project and by function, incurred by PJX for the three months ended September 30, 2024, and 2023:
Three months ended September 30, | 2024 | 2023 | Change | |||
Dew dney Trail Property | $ | 1,918,227 | $ | 198,246 | $1,719,981 | |
Eddy Property | 2,215 | 2,532 | (317) | |||
$ | 1,920,442 | $ | 200,778 | $1,719,664 | ||
Three months ended September 30, | 2024 | 2023 | Change | |||
Geology, geophysics and geochemistry | $ | 70,064 | $ | 159,226 | $ | (89,162) |
Exploration-other accommodation | 3,212 | 429 | 2,783 | |||
Permitting | 11,161 | 3,472 | 7,689 | |||
Land rights, claims and environment | 21,289 | 2,897 | 18,392 | |||
Drilling | 1,775,570 | - | 1,775,570 | |||
Laboratory | 832 | 2,253 | (1,421) | |||
Camp cost and exploration supplies | 2,221 | - | 2,221 | |||
Exploration - travel and transportation | 3,639 | 4,235 | (596) | |||
Exploration- meals | 2,454 | 734 | 1,720 | |||
Rent - field office | - | 2,532 | (2,532) | |||
Option payments | 30,000 | 25,000 | 5,000 | |||
$ | 1,920,442 | $ | 200,778 | $1,719,664 |
The Dewdney Trail Property was the principal exploration target for PJX during the nine months ended September 30, 2024, with $1,888,227 in expenses incurred, compared to $198,246 incurred during the comparative period. These expenses were mainly related to drilling, for $ $1.8 million, followed by geology and geophysics for approximately $70,000.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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No significant amounts were incurred in other properties during the three months period ended September 30, 2024.
General and administration ("G&A")
The following schedule describes the general and administration expenses incurred by the Company for the three months ended September 30, 2024, compared to the same period of Fiscal 2023:
Three months ended September 30, | 2024 | 2023 | Change | |||
Insurance | $ | 8,804 | $4,428 | $ | 4,376 | |
Interest, bank charges and penalties | 204 | 45 | 159 | |||
Investor relations | 27,522 | 15,463 | 12,059 | |||
Listing and regulatory fees | 24,125 | 26,896 | (2,771) | |||
Office expenses | 3,239 | 4,939 | (1,700) | |||
Professional fees | 31,709 | 1,750 | 29,959 | |||
Rent | 6,234 | 3,748 | 2,486 | |||
Salaries and benefits | 72,143 | 61,953 | 10,190 | |||
Travel and transportation | 35 | 1,353 | (1,318) | |||
$ | 174,015 | $ | 120,575 | $ | 53,440 |
PJX incurred $174,015 in G&A expenses for the three months period ended September 30, 2024, compared to $120,575, for the comparative period. The most significant variances were:
Professional fees increased by $29,959, mainly due to increases in accounting and auditing fees for approximately $13,000 and legal fees for approximately $17,000.
Salaries and benefits for the three months period ended September 30, 2024, were increased by $10,189, when compared to the same period of fiscal 2023. The increase is principally composed by an increase in gross salaries of $22,500 and an increase in allocated salaries to exploration for approximately $13,000.
Share based compensation
No share-based compensation were granted during the three months ended September 30, 2024 or 2023.
SUMMARY OF QUARTERLY RESULTS
The following table sets forth a breakdown of the most significant components of the exploration expenses and the G&A costs of the Company for each of the eight most recently completed quarters.
Net Income (loss) | Exploration | General and | |||
Quarter Ended | Revenue | Total | Per Share | expenses | administration |
September 30, 2024 | Nil | $ (1,934,232) | ($0.01) | $1,920,442 | $174,015 |
June 30, 2024 | Nil | $ (3,211,873) | ($0.02) | $121,912 | $307,705 |
March 31, 2024 | Nil | (308,957) | (0.00) | 174,694 | 145,159 |
December 31, 2023 | Nil | (327,208) | (0.00) | 121,785 | 205,871 |
September 30, 2023 | Nil | (326,664) | (0.00) | 200,778 | 120,575 |
June 30, 2023 | Nil | (265,429) | (0.00) | 128,967 | 129,532 |
March 31, 2023 | Nil | (268,885) | (0.00) | 124,548 | 136,947 |
December 31, 2022 | Nil | (308,784) | (0.00) | 134,276 | 167,118 |
LIQUIDITY AND CAPITAL RESOURCES
On November 24, 2023, the Company closed a non-brokered private placement of 21,610,038 units through the issuance of 13,816,422 Flow Through Units at a price of $0.105 per Flow Through Unit and 7,793,616 Non-flow Through Units at a price of $0.09 per Unit for total proceeds of $2,152,150.
PJX Resources Inc. Management's Discussion and Analysis for the Three and Nine Months Ended September 30, 2024, and 2023
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