Makenita to Commence Operations on the Sisson West Tungsten Project in New Brunswick

Makenita Resources Inc. (CSE:KENY) has announced the commencement of operations on its wholly owned Sisson West Tungsten Project in New Brunswick, with exploration work set to begin imminently. The company has engaged New-Sense Geophysics Ltd. to assist in the planned work program, which is expected to kick off within days. The Sisson West Tungsten Project spans approximately 9,845 contiguous acres and is strategically located adjacent to Northcliff Resources Ltd.'s (TSX:NCF) Sisson Tungsten Mine, a project highlighted by Prime Minister Mark Carney as one of the nation's key development initiatives. Makenita's President, Jason Gigliotti, expressed enthusiasm about the project, noting a recent conversation with New Brunswick Premier Susan Holt, who is focused on enhancing the province's mining sector. The company boasts a relatively tight share structure, with just over 30 million shares outstanding, positioning it for potential growth as it embarks on this exploration phase.

The Sisson West Tungsten Project is significant not only due to its proximity to an established tungsten mine but also because it represents Makenita's strategic pivot towards a commodity that has seen increasing demand, particularly in the context of global supply chain challenges and the push for critical minerals. Tungsten is essential in various industrial applications, including manufacturing and defense, which may enhance the project's attractiveness to investors. Makenita's exploration efforts will likely focus on delineating the resource potential of the site, which could lead to further development opportunities if initial results are promising. The company's engagement with local government officials also suggests a proactive approach to community relations, which can be crucial in securing necessary permits and support for mining operations.

From a financial perspective, Makenita's capital structure appears to be relatively stable, although specific figures regarding cash reserves and debt levels were not disclosed in the announcement. The company's recent activities, including a flow-through private placement announced on March 19, 2026, indicate a strategy to bolster its funding position, although the exact amount raised was not specified. Given the tight share structure, any significant capital raises could lead to dilution, which is a risk that investors should monitor closely. The exploration phase will require adequate funding to cover operational costs, and without clear visibility on cash reserves, the sufficiency of capital for ongoing programs remains uncertain.

In terms of valuation, Makenita is positioned within the micro-cap tier, and its current market capitalisation is not explicitly stated in the announcement. However, the company’s focus on tungsten, a commodity with specific market dynamics, necessitates a peer comparison to gauge its relative valuation. Direct peers in the tungsten exploration space are limited, but companies such as Northcliff Resources Ltd. (TSX:NCF), which operates the nearby Sisson Tungsten Mine, and other similarly sized tungsten-focused companies should be considered. Northcliff Resources, for instance, has a market capitalisation that places it within the same tier as Makenita, making it a relevant benchmark. If Makenita can successfully delineate a resource at Sisson West, it could potentially command a premium valuation based on the project's strategic location and the growing demand for tungsten.

Execution risk is a critical factor for Makenita as it embarks on this exploration phase. The company must navigate various operational challenges, including geological uncertainties and regulatory hurdles associated with mining in New Brunswick. Past results from nearby projects do not guarantee similar outcomes for Makenita, and the company must demonstrate its ability to execute on its exploration plans effectively. The engagement with New-Sense Geophysics Ltd. is a positive step, as it indicates a commitment to employing expert resources to enhance the likelihood of success. However, any delays or setbacks in exploration could adversely affect investor sentiment and the company's stock performance.

Looking ahead, the next measurable catalyst for Makenita will be the results of the initial exploration work at the Sisson West Tungsten Project, which is expected to commence shortly. The timing of these results will be crucial, as they will provide insights into the project's potential and inform future operational decisions. If initial findings are positive, they could significantly enhance Makenita's valuation and attract further investment interest. Conversely, disappointing results could pose a risk to the company's share price and overall market perception.

In conclusion, Makenita's announcement regarding the commencement of operations at the Sisson West Tungsten Project represents a moderate step forward for the company, with potential implications for its valuation and operational trajectory. The strategic location of the project adjacent to an established tungsten mine, coupled with the company's proactive engagement with local government, positions it well for future growth. However, uncertainties surrounding funding sufficiency, potential dilution, and execution risks must be closely monitored. Overall, this announcement is classified as moderate in materiality, reflecting both the opportunities and challenges that lie ahead for Makenita as it seeks to establish itself in the tungsten market.

Key insights

• ●Makenita starts operations at Sisson West Tungsten Project.
• ●Engaged New-Sense Geophysics for exploration work.
• ●Proximity to Northcliff's mine enhances project potential.

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