The bottom beneath Case Lake in northeastern Ontario homes a vital mineral which will type the center of some of the urgent North American safety problems with the century.
The vital mineral is cesium (Cs), and its discovery and potential for improvement has turn into a battleground between Canada and the U.S. on one hand, and China on the opposite.
At stake is nothing lower than potential world technological dominance. North America has no cesium of its personal. These identified cesium deposits all over the world have both been depleted or the mines have been rendered inoperable—and after they have been operable, China maintained management of all of them, a technique or one other.
With out cesium, the U.S. seemingly can’t win the 5G race—a race that could be the figuring out issue for technological superiority.
With out cesium, there is likely to be no plane steering techniques. No world positioning satellites. No web or mobile phone transmissions. All the things from the IT trade and well being care to the military-industrial advanced is severely impacted, making this a vital nationwide safety subject. And China maintains its ambitions, with assist from Huawei, to win the 5G race.
This makes Case Lake some of the carefully watched exploration venues on this planet. Absolutely owned by Energy Metals Corp (TSXV:PWM,OTC:PWRMF), the Case Lake property is the one new potential cesium play in existence, and its significance has not too long ago led the Canadian authorities to kick Chinese language traders out, changing them with lower-risk Western faces from Australia. Now, with a number of discoveries that embody intersections of three vital metals–cesium, lithium and tantalum—what lies forward may find yourself being the event of the primary North American vital metals mine of its variety. And it could imply lots to the West.
Case Lake: A ‘Geologist’s Dream’?The Case Lake pegmatite swarm consists of six spodumene dykes: North, Major, South, East and Northeast Dykes on the Henry Dome and the West Joe Dyke on a brand new tonalite dome. The property has a 10-kilometer-long mineral pattern consisting of 475 cell claims, 100% owned by Energy Metals.
Energy Metals’ Chairman, Johnathan Extra, describes the property as a “geologist’s dream” and the equal of “prime actual property on Park Avenue” for quite a lot of causes.
First, it’s accessible year-round by well-maintained roads, with all infrastructure in place. Whereas this will sound like a needed given to traders who usually are not well-versed within the mining sector, that’s hardly ever the case. Almost all discoveries in Canada’s vital metals market are made in extraordinarily distant areas. However at Case Lake, not solely is all of the street and electrical infrastructure already in place, however it even boasts cellphone indicators. That additional benefit is commonly unparalleled in mining venues. One such instance is the James Bay area of Quebec, the place Patriot Battery Metals (OTCMKTS: PMETF) and Australia’s Winsome Assets (OTCMKTS: WRSLF) (ASX: WR1), have made main lithium discoveries prior to now yr. These discoveries have created a mining growth that has led to an intense rush on land greater than something Quebec has ever seen. However the area is as distant as they arrive, requiring helicopter help for entry, which signifies that drilling isn’t solely difficult—it’s costly.
That’s what may assist make Case Lake a geologist’s dream. In line with Energy Metals (TSXV:PWM,OTC:PWRMF), it’s some of the cheap properties to drill in Canada—not simply due to its quick access, both. The cesium, lithium and tantalum intersections listed here are in pegmatite that’s uncovered on the floor and working so shallow that it’s lower than 50 meters deep in numerous areas.
Potential World-Class Discoveries
So far, Energy Metals has drilled 80 drill holes over some 15,000 meters at Case Lake, making a big world-class, high-grade (over 4%) lithium discovery at a really shallow, open depth. Only a preview of the highlights from this discovery embody:
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1.94% Lithium and 323.75pp Tantalum over 26 meters
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2.07% Lithium and 213.96pp Tantalum over 18 meters
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4.75 % Lithium and 396.00pp Tantalum over 2 meters
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1.71 % Lithium and 240.77pp Tantalum over 12 meters
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1.20 % Lithium and 218.68pp Tantalum over 19 meters
The lithium discoveries have been thrilling sufficient, however then the surprising occurred.
In the summertime of 2018, Energy Metals made a shock discovery of uncommon cesium whereas drilling for lithium and tantalum at Case Lake’s West Joe Dyke.
That is a few of the highest-grade cesium present in a long time, with grades as excessive as 24% over good intervals. In line with Energy Metals, the venue homes high-grade cesium that’s just like Australia’s well-known Sinclair Mine. Highlights from that discovery embody:
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24.07% Cesium over 1 meter
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20.36% Cesium over 1 meter
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22.22% Cesium over 2 meters
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7.65% Cesium over 7.09 meters
When this cesium discovery got here to gentle, China-based Sinomine Useful resource Group—one of many largest on this planet—instantly contacted Energy Metals and ended up buying a 5.7% stake by way of personal placement funding. [if !supportLineBreakNewLine][endif]
Energy Metals continued to drill in 2022 with the funding from Sinomine, asserting some high-grade lithium and cesium outcomes. However by then, cesium (and lithium, too) had turn into a nationwide safety subject for the Canadian authorities. In November final yr, the Canadian Federal Authorities took decisive motion in opposition to Chinese language firms with possession in any of Canada’s lithium reserves. Not solely that, however the authorities moved swiftly to root out any Chinese language involvement in Canadian lithium firms globally.
On account of nationwide safety considerations, Ottawa demanded that Sinomine divest from Energy Metals, establishing Case Lake as a venue of pressing significance to Canada’s future.
Whereas some preliminary reactions to this have been a priority for traders, for Energy Metals, it was considered as a significant alternative.
“Whereas we’re shocked by Canada’s stance in direction of Chinese language funding into Canada’s vital minerals trade, it clearly exhibits that they see the chance and property of Energy Metals as too precious for such international funding,” Energy Metals’ Chairman Extra mentioned in a statement.
“Energy Metals has made a considerable discovery of cesium, lithium and tantalum and this political gamesmanship demonstrates the acute worth of Energy Metals property,” Extra continued.
It did not take lengthy for a well-established Australian-based lithium firm, Winsome Resources Limited, to step in and purchase Sinomine’s shares.
Winsome’s curiosity is just not with out context. The Australian mining firm had made one other main lithium discovery in James Bay Quebec earlier final yr. However Winsome didn’t simply take over the Chinese language stake …
Its Managing Director, Chris Evans, joined the board of Energy Metals.
Alternative gathered momentum from there.
After digging deeper into Energy Metals lithium and cesium discoveries, Winsome doubled its stake to 10.13% at a premium to the present share value.. Issues continued to snowball when one in every of Winsome’s largest shareholders, Waratah Capital (one of many largest lithium funds on this planet) moved to spend money on Energy Metals, too.
Following this litany of victories for Energy Metals that got here out of Canada’s eviction of the Chinese language, Waratah sweetened the deal additional, purchasing a 2% royalty on future Case Lake lithium manufacturing for $1.5 million by way of Lithium Royalty Corp.
The present scenario is that Energy Metals has roughly C$10 million in money and money equivalents. It’s absolutely funded for the subsequent two years of exploration plans. These plans embody one other 15,000 meters of drilling, which is ready to start this summer season.
What we’ve got now could be a junior explorer that has some vital gamers within the lithium sport amongst its shareholders. For starters, Energy Metals (TSXV:PWM,OTC:PWRMF) now has entry to Winsome’s world-class geologists, conserving in thoughts that Australia holds particular experience in cesium as the house of one in every of solely three cesium mines which have ever operated on this planet. Newly appointed Energy Metals CEO Gerry Brockelsby, a Toronto-based worldwide mining financier, and newly appointed VP of Exploration Amanuel Bein, with a string of exploration successes below his belt, will group up with Winsome’s geologists to maneuver what could possibly be one in every of North America’s most fun vital metals performs ahead sooner. Canada’s mission to safe its vital metals provide chain has set in movement a collection of occasions which will current high-level alternatives for traders. Now that the Chinese language exit has de-risked Case Lake from a nationwide safety perspective and main new shareholders have jumped on board, this cesium-lithium alternative is one in every of our most pressing to observe within the coming months. Different useful resource firms to keep watch over:
FMC Company (NYSE: FMC), based mostly in Philadelphia, Pennsylvania, is a world agricultural sciences firm that delivers modern options to growers all over the world. Whereas not a mining firm within the conventional sense, FMC has a big stake in lithium, a vital part in rechargeable batteries and different high-tech functions.
FMC’s dedication to innovation and sustainability is noteworthy, and the corporate’s agricultural merchandise contribute to elevated crop yield and high quality, making it a big participant in addressing world meals safety points. Lately, FMC has benefited from sturdy demand for its crop safety merchandise, pushed by larger commodity costs and powerful agricultural market fundamentals.
FMC spun off its lithium enterprise right into a separate publicly-traded firm, Livent Company, in 2018. Nonetheless, FMC stays a sturdy and diversified firm with sturdy progress prospects, although traders particularly looking for publicity to lithium would want to have a look at Livent or different lithium-focused firms.
Livent Company (NYSE: LTHM), a spin-off from FMC Company, is a world chief in lithium know-how, powering the electrical car revolution. The Philadelphia-based firm provides lithium utilized in batteries for hybrid and electrical automobiles, cellular units, and different shopper electronics.
Livent’s place within the high-growth lithium market, pushed by growing demand for electrical automobiles, makes it a compelling possibility for traders looking for publicity to the inexperienced vitality transition. The corporate’s distinctive course of know-how additionally offers a aggressive benefit, with a give attention to high-purity lithium compounds.
Livent’s enterprise is essentially depending on the lithium market, which has been unstable in recent times resulting from fluctuations in provide and demand dynamics. Potential traders also needs to take into account that whereas Livent operates globally, it has vital operations in Argentina, which presents sure geopolitical dangers.
Freeport-McMoRan Inc. (NYSE: FCX), based mostly in Phoenix, Arizona, is without doubt one of the world’s main mining firms, with vital reserves of copper, gold, and molybdenum. The corporate’s sizeable asset base consists of the Grasberg minerals district in Indonesia, one of many world’s largest copper and gold deposits, and vital mining operations within the Americas.
With copper being a vital materials in renewable vitality and electrical car applied sciences, Freeport-McMoRan stands to learn from the worldwide push in direction of greener economies. The corporate’s sturdy operational efficiency and dedication to debt discount additionally add to its funding enchantment.
Freeport-McMoRan’s operations in sure areas have confronted regulatory and political challenges. For instance, the corporate’s Indonesian operations have confronted regulatory modifications and environmental controversies. Whereas Freeport-McMoRan has made efforts to handle these points, they spotlight the geopolitical dangers related to world mining operations.
Turquoise Hill Assets (NYSE: TRQ), headquartered in Vancouver, Canada, is a world mining firm targeted on the operation and additional improvement of the Oyu Tolgoi copper-gold mine in southern Mongolia. The mine is without doubt one of the world’s largest identified copper and gold deposits, and Turquoise Hill holds a 66% curiosity within the mission, with the remaining stake held by the Authorities of Mongolia.
The Oyu Tolgoi mine gives vital progress potential, with an anticipated ramp-up in manufacturing over the approaching years. The corporate has additionally labored in direction of strengthening its stability sheet and advancing operational efficiency, which may help long-term worth creation.
Turquoise Hill’s reliance on its Mongolia mine presents a concentrated threat profile. Potential traders ought to take into account the corporate’s ongoing disputes with its largest shareholder, Rio Tinto, and the Mongolian authorities, as these may influence future efficiency.
Compass Minerals Worldwide (NYSE: CMP), based mostly in Overland Park, Kansas, is a number one supplier of important minerals, together with salt, sulfate of potash, and magnesium chloride. The corporate’s diversified product combine serves a variety of markets, together with agriculture, shopper deicing, water conditioning, and numerous industrial functions.
Compass Minerals’ balanced and diversified portfolio, sturdy market place, and regular money flows make it an attention-grabbing consideration for potential traders. The corporate’s dedication to sustainability and operational excellence additional improve its enchantment.
The corporate’s efficiency could be influenced by climate situations and commodity value volatility. For example, milder winters can influence the demand for its deicing merchandise. These elements spotlight the necessity for potential traders to contemplate broader market and environmental situations when evaluating Compass Minerals.
Rio Tinto (NYSE: RIO), a world chief within the mining and metals sector, is thought for its operational effectivity and dedication to sustainable improvement. The UK-Australian multinational company operates in round 35 international locations worldwide and has vital property throughout a number of commodities together with aluminum, copper, diamonds, coal, iron ore, and uranium. Rio Tinto’s sturdy portfolio of world-class property is additional bolstered by sturdy market fundamentals, particularly within the copper and iron ore markets, making it an attention-grabbing proposition for potential traders.
In current information, Rio Tinto has accelerated its push into the inexperienced vitality sector. The corporate is investing closely in know-how to decrease carbon emissions and is actively concerned in producing supplies important for the renewable vitality trade, like copper and lithium. Moreover, the corporate’s sturdy monetary efficiency, underscored by strong revenue margins and a beautiful dividend yield, may make Rio Tinto an interesting selection for income-focused traders.
The corporate has confronted criticism over environmental and indigenous rights points, most notably the destruction of the Juukan Gorge caves in Western Australia. These incidents underscore the significance of contemplating ESG (Environmental, Social, and Governance) elements alongside monetary elements when evaluating funding alternatives.
Glencore (OTC: GLNCY), based mostly in Switzerland, is without doubt one of the world’s largest globally diversified pure useful resource firms, identified for its built-in worth chain that features mining, processing, refining, transporting, financing, and advertising operations. Its intensive product portfolio spans metals, minerals, vitality merchandise, and agricultural merchandise, making it a compelling selection for these looking for publicity to a broad swath of the commodity market.
In an attention-grabbing current improvement, Glencore has been navigating its transition to a low-carbon financial system with vital investments in cobalt and copper, two important metals for electrical car batteries. The corporate can be participating in bold carbon discount efforts and plans to be carbon-neutral by 2050. Nevertheless, potential traders also needs to take into account that Glencore, like many massive mining firms, has confronted controversies associated to environmental influence and governance.
Whereas Glencore’s inventory is traded over-the-counter within the U.S., it maintains major listings on the London Inventory Trade and the Johannesburg Inventory Trade. Potential traders ought to perceive the distinctive dangers related to over-the-counter buying and selling, corresponding to decrease liquidity and fewer stringent reporting necessities.
ArcelorMittal (NYSE: MT), based mostly in Luxembourg, is the world’s main metal and mining firm, with a presence in 60 international locations and an industrial footprint in 18 international locations. It’s a main provider of high quality metal in main world markets together with automotive, development, family home equipment, and packaging.
The corporate has proven sturdy restoration following the COVID-19 pandemic and has benefited from sturdy world metal demand and value restoration. In current information, ArcelorMittal has made commitments to carbon-neutral steelmaking in Europe by 2050 and has launched XCarb™, an initiative to progress in direction of carbon-neutral metal. This modern step to satisfy the rising demand for inexperienced metal positions ArcelorMittal attractively to potential traders looking for sustainability-focused holdings.
The cyclical nature of the metal trade and sensitivity to world financial situations needs to be factored into any funding resolution. Whereas ArcelorMittal’s progress plans and dedication to sustainability are constructive indicators, the inherent volatility of the metal market necessitates cautious consideration.
Vale S.A. (NYSE: VALE), a Brazil-based multinational company, is without doubt one of the world’s main producers of iron ore and nickel. The corporate’s intensive operations additionally span manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt. As the biggest logistics operator in Brazil, Vale additionally has a powerful infrastructure for the distribution of its merchandise.
Within the backdrop of surging world demand for iron ore, notably from China, Vale’s huge reserves and environment friendly manufacturing make it a compelling selection for traders all in favour of commodities. The corporate can be wanting forward with investments in renewable vitality initiatives and a acknowledged objective of changing into carbon impartial by 2050.
Potential traders needs to be conscious of the dangers related to investing in Vale. The corporate’s inventory has proven volatility in recent times resulting from disruptions in its mining operations, most notably the tragic dam collapse in Brumadinho, Brazil in 2019. Whereas Vale has made vital efforts to handle security and enhance dam administration, these incidents underline the potential dangers related to mining operations.
Southern Copper Company (NYSE: SCCO), one of many largest built-in copper producers on this planet, relies in Phoenix, Arizona, and is a subsidiary of Grupo Mexico. The corporate’s property embody precious reserves of copper, molybdenum, zinc, silver, lead, and gold, making it a powerful selection for traders looking for to faucet into the potential of the copper market.
Southern Copper’s manufacturing progress and operational effectivity are spectacular, and the corporate has demonstrated a constant dedication to dividend payouts, making it a beautiful selection for revenue traders. Moreover, with a sturdy mission pipeline and growing demand for copper within the renewable vitality and electrical car sectors, Southern Copper’s long-term outlook seems promising.
That mentioned, like all mining firms, Southern Copper faces dangers associated to environmental influence, operational disruptions, and commodity value volatility. The corporate has confronted criticism and authorized challenges associated to environmental considerations prior to now, emphasizing the significance of contemplating these elements in funding selections.By. Tom Kool [if !supportLineBreakNewLine][endif]
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Ahead-Wanting Statements
This publication comprises forward-looking info which is topic to quite a lot of dangers and uncertainties and different elements that would trigger precise occasions or outcomes to vary from these projected within the forward-looking statements. Ahead wanting statements on this publication embody that the Canadian mining sector will proceed to guard its provide of vital minerals with out involvement of China; that cesium and different metals will stay as vital minerals will proceed as a nationwide safety subject for Western international locations; that entry to uncommon metals, and particularly cesium, will probably be important to gaining technical superiority, together with the event of 5G networks; that cesium and different uncommon earth metals will proceed to be vital to be used in numerous applied sciences, together with the 5G mobile and wi-fi applied sciences; that cesium will proceed to be a vital mineral and regarded as matter of nationwide safety for Western international locations; that Energy Metals Corp. (the “Firm”) and its traders will probably be in charge of the one cesium mine that China doesn’t personal; that the Firm’s properties will be capable of commercially produce cesium, lithium, tantalum and/or different vital minerals; that the Firm will be capable of finance and operationally set up mines on its properties to viably and commercially extract the vital minerals; that Australian shareholders and traders within the Firm will present improvement and different experience to help the Firm; that Winsome Assets will proceed to personal a big stake within the Firm; that the Firm’s property will in the future have one of many solely potential mines on this planet that’s producing cesium; that the Firm can finance ongoing operations and improvement; that the Firm can obtain its enterprise plans and targets as anticipated. These forward-looking statements are topic to quite a lot of dangers and uncertainties and different elements that would trigger precise occasions or outcomes to vary materially from these projected within the forward-looking info. Dangers that would change or stop these statements from coming to fruition embody the event of other applied sciences that don’t require using minerals and sources presently thought-about as vital; that different sources are utilized in future in favour of uncommon earth metals corresponding to cesium; that various applied sciences make the most of different sources or that cesium, lithium, and tantalum usually are not utilized; that different firms uncover sources of cesium and different battery metals which are extra favorable or extra simply developed into business manufacturing that the Firm’s property; that the Firm’s properties are unable to supply business quantities of cesium, lithium, tantalum or different vital metals; that the Firm will probably be unable to finance or operationally set up mines on its properties for business extraction of any vital minerals; that the Firm’s Australian traders will be unable to offer improvement and different experience to significant help the Firm; that Winsome Assets might for numerous causes divest its stake within the Firm in future; that the Firm’s properties might fail to develop mines producing cesium; that the Firm could also be unable to finance its ongoing operations and improvement; that the enterprise of the Firm could also be unsuccessful for numerous causes. The forward-looking info contained herein is given as of the date hereof and we assume no accountability to replace or revise such info to replicate new occasions or circumstances, besides as required by legislation.
DISCLAIMERS
This communication is for leisure functions solely. By no means make investments purely based mostly on our communication. We have now not been compensated by Energy Metals Corp. for this text however might sooner or later be compensated to conduct investor consciousness promoting and advertising for Energy Metals Corp. The knowledge in our communications and on our web site has not been independently verified and isn’t assured to be right. The content material of this text relies solely on our opinions that are based mostly on very restricted evaluation and we’re not skilled analysts or advisors.
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