The bottom beneath Case Lake in northeastern Ontario homes a vital mineral which will type the guts of one 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 out to be a battleground between Canada and the U.S. on one hand, and China on the opposite.
At stake is nothing lower than potential international technological dominance. North America has no cesium of its personal. These recognized cesium deposits world wide have both been depleted or the mines have been rendered inoperable—and once they have been operable, China maintained management of all of them, a method or one other.
With out cesium, the U.S. doubtless can not win the 5G race—a race which may be the figuring out issue for technological superiority.
With out cesium, there could be no plane steerage methods. No international positioning satellites. No web or mobile phone transmissions. The whole lot from the IT trade and well being care to the military-industrial advanced is severely impacted, making this a vital nationwide safety situation. And China maintains its ambitions, with assist from Huawei, to win the 5G race.
This makes Case Lake one of the carefully watched exploration venues on this planet. Totally 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 just lately led the Canadian authorities to kick Chinese language buyers out, changing them with lower-risk Western faces from Australia. Now, with a number of discoveries that embrace intersections of three vital metals–cesium, lithium and tantalum—what lies forward might find yourself being the event of the primary North American vital metals mine of its variety. And it could imply loads to the West.
Case Lake: A ‘Geologist’s Dream’?The Case Lake pegmatite swarm consists of six spodumene dykes: North, Foremost, 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 plenty of causes.
First, it’s accessible year-round by well-maintained roads, with all infrastructure in place. Whereas this may increasingly sound like a essential given to buyers who usually are not well-versed within the mining sector, that’s hardly ever the case. Practically all discoveries in Canada’s vital metals market are made in extraordinarily distant areas. However at Case Lake, not solely is all of the highway and electrical infrastructure already in place, but it surely even boasts cellphone indicators. That additional advantage 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 Sources (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 implies that drilling isn’t solely difficult—it’s costly.
That’s what might assist make Case Lake a geologist’s dream. In response to Energy Metals (TSXV:PWM,OTC:PWRMF), it’s one of the cheap properties to drill in Canada—not simply due to its easy accessibility, 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 varied areas.
Potential World-Class Discoveries
To this point, 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 embrace:
1.94% Lithium and 323.75pp Tantalum over 26 meters
2.07% Lithium and 213.96pp Tantalum over 18 meters
4.75 % Lithium and 396.00pp Tantalum over 2 meters
1.71 % Lithium and 240.77pp Tantalum over 12 meters
1.20 % Lithium and 218.68pp Tantalum over 19 meters
The lithium discoveries have been thrilling sufficient, however then the sudden 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 number of the highest-grade cesium present in many years, with grades as excessive as 24% over good intervals. In response to Energy Metals, the venue homes high-grade cesium that’s just like Australia’s well-known Sinclair Mine. Highlights from that discovery embrace:
24.07% Cesium over 1 meter
20.36% Cesium over 1 meter
22.22% Cesium over 2 meters
7.65% Cesium over 7.09 meters
When this cesium discovery got here to mild, 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 means of personal placement funding. [if !supportLineBreakNewLine][endif]
Energy Metals continued to drill in 2022 with the funding from Sinomine, saying some high-grade lithium and cesium outcomes. However by then, cesium (and lithium, too) had turn out to be a nationwide safety situation for the Canadian authorities. In November final yr, the Canadian Federal Authorities took decisive motion in opposition to Chinese language corporations 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 corporations globally.
Because of nationwide safety issues, 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 buyers, for Energy Metals, it was considered as a significant alternative.
“Whereas we’re stunned by Canada’s stance in the direction of Chinese language funding into Canada’s vital minerals trade, it clearly reveals that they see the chance and belongings of Energy Metals as too worthwhile for such international funding,” Energy Metals’ Chairman Extra stated in a assertion.
“Energy Metals has made a considerable discovery of cesium, lithium and tantalum and this political gamesmanship demonstrates the acute worth of Energy Metals belongings,” Extra continued.
It did not take lengthy for a well-established Australian-based lithium firm, Winsome Sources Restricted, to step in and purchase Sinomine’s shares.
Winsome’s curiosity just isn’t 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 worth.. 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, buying a 2% royalty on future Case Lake lithium manufacturing for $1.5 million by means 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 embrace one other 15,000 meters of drilling, which is ready to start this summer season.
What we have now now could be a junior explorer that has some necessary gamers within the lithium recreation 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 crew up with Winsome’s geologists to maneuver what could possibly be one in every of North America’s most enjoyable vital metals performs ahead quicker. Canada’s mission to safe its vital metals provide chain has set in movement a sequence of occasions which will current high-level alternatives for buyers. 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 look at within the coming months. Different useful resource corporations to control:
FMC Company (NYSE: FMC), primarily based in Philadelphia, Pennsylvania, is a world agricultural sciences firm that delivers modern options to growers world wide. Whereas not a mining firm within the conventional sense, FMC has a big stake in lithium, a vital element in rechargeable batteries and different high-tech purposes.
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 international meals safety points. Lately, FMC has benefited from sturdy demand for its crop safety merchandise, pushed by greater 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 strong and diversified firm with sturdy development prospects, although buyers particularly in search of publicity to lithium would wish to have a look at Livent or different lithium-focused corporations.
Livent Company (NYSE: LTHM), a spin-off from FMC Company, is a world chief in lithium expertise, powering the electrical automobile revolution. The Philadelphia-based firm provides lithium utilized in batteries for hybrid and electrical automobiles, cell 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 choice for buyers in search of publicity to the inexperienced power transition. The corporate’s distinctive course of expertise additionally gives a aggressive benefit, with a deal with high-purity lithium compounds.
Livent’s enterprise is essentially depending on the lithium market, which has been unstable lately because of fluctuations in provide and demand dynamics. Potential buyers also needs to think about that whereas Livent operates globally, it has vital operations in Argentina, which presents sure geopolitical dangers.
Freeport-McMoRan Inc. (NYSE: FCX), primarily based in Phoenix, Arizona, is likely one of the world’s main mining corporations, 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 power and electrical automobile applied sciences, Freeport-McMoRan stands to profit from the worldwide push in the 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 adjustments and environmental controversies. Whereas Freeport-McMoRan has made efforts to handle these points, they spotlight the geopolitical dangers related to international mining operations.
Turquoise Hill Sources (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 likely one of the world’s largest recognized 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 development potential, with an anticipated ramp-up in manufacturing over the approaching years. The corporate has additionally labored in the direction of strengthening its steadiness sheet and advancing operational efficiency, which might help long-term worth creation.
Turquoise Hill’s reliance on its Mongolia mine presents a concentrated danger profile. Potential buyers ought to think about the corporate’s ongoing disputes with its largest shareholder, Rio Tinto, and the Mongolian authorities, as these might influence future efficiency.
Compass Minerals Worldwide (NYSE: CMP), primarily based 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 varied industrial purposes.
Compass Minerals’ balanced and diversified portfolio, sturdy market place, and regular money flows make it an attention-grabbing consideration for potential buyers. The corporate’s dedication to sustainability and operational excellence additional improve its enchantment.
The corporate’s efficiency will be influenced by climate circumstances and commodity worth volatility. As an illustration, milder winters can influence the demand for its deicing merchandise. These components spotlight the necessity for potential buyers to think about broader market and environmental circumstances 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 belongings throughout a number of commodities together with aluminum, copper, diamonds, coal, iron ore, and uranium. Rio Tinto’s sturdy portfolio of world-class belongings is additional bolstered by sturdy market fundamentals, particularly within the copper and iron ore markets, making it an attention-grabbing proposition for potential buyers.
In current information, Rio Tinto has accelerated its push into the inexperienced power sector. The corporate is investing closely in expertise to decrease carbon emissions and is actively concerned in producing supplies important for the renewable power trade, like copper and lithium. Moreover, the corporate’s sturdy monetary efficiency, underscored by strong revenue margins and a beautiful dividend yield, might make Rio Tinto an interesting selection for income-focused buyers.
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) components alongside monetary components when evaluating funding alternatives.
Glencore (OTC: GLNCY), primarily based in Switzerland, is likely one of the world’s largest globally diversified pure useful resource corporations, recognized for its built-in worth chain that features mining, processing, refining, transporting, financing, and advertising operations. Its in depth product portfolio spans metals, minerals, power merchandise, and agricultural merchandise, making it a compelling selection for these in search of 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 economic system with vital investments in cobalt and copper, two important metals for electrical automobile batteries. The corporate can also be participating in bold carbon discount efforts and plans to be carbon-neutral by 2050. Nonetheless, potential buyers also needs to think about that Glencore, like many massive mining companies, 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 Change and the Johannesburg Inventory Change. Potential buyers ought to perceive the distinctive dangers related to over-the-counter buying and selling, similar to decrease liquidity and fewer stringent reporting necessities.
ArcelorMittal (NYSE: MT), primarily based 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 international markets together with automotive, building, family home equipment, and packaging.
The corporate has proven sturdy restoration following the COVID-19 pandemic and has benefited from sturdy international metal demand and worth 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 the direction of carbon-neutral metal. This modern step to fulfill the rising demand for inexperienced metal positions ArcelorMittal attractively to potential buyers in search of sustainability-focused holdings.
The cyclical nature of the metal trade and sensitivity to international financial circumstances must be factored into any funding choice. Whereas ArcelorMittal’s development 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 likely one of the world’s main producers of iron ore and nickel. The corporate’s in depth operations additionally span manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt. As the biggest logistics operator in Brazil, Vale additionally has a robust infrastructure for the distribution of its merchandise.
Within the backdrop of surging international demand for iron ore, significantly from China, Vale’s huge reserves and environment friendly manufacturing make it a compelling selection for buyers involved in commodities. The corporate can also be wanting forward with investments in renewable power tasks and a said objective of turning into carbon impartial by 2050.
Potential buyers must be conscious of the dangers related to investing in Vale. The corporate’s inventory has proven volatility lately because of 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, is predicated in Phoenix, Arizona, and is a subsidiary of Grupo Mexico. The corporate’s belongings embrace worthwhile reserves of copper, molybdenum, zinc, silver, lead, and gold, making it a robust selection for buyers in search of to faucet into the potential of the copper market.
Southern Copper’s manufacturing development and operational effectivity are spectacular, and the corporate has demonstrated a constant dedication to dividend payouts, making it a beautiful selection for earnings buyers. Moreover, with a strong mission pipeline and growing demand for copper within the renewable power and electrical automobile sectors, Southern Copper’s long-term outlook seems promising.
That stated, like all mining corporations, Southern Copper faces dangers associated to environmental influence, operational disruptions, and commodity worth volatility. The corporate has confronted criticism and authorized challenges associated to environmental issues prior to now, emphasizing the significance of contemplating these components in funding selections.By. Tom Kool [if !supportLineBreakNewLine][endif]
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication comprises forward-looking data which is topic to a wide range of dangers and uncertainties and different components that might trigger precise occasions or outcomes to vary from these projected within the forward-looking statements. Ahead wanting statements on this publication embrace 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 situation for Western international locations; that entry to uncommon metals, and specifically cesium, can 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 varied applied sciences, together with the 5G mobile and wi-fi applied sciences; that cesium will proceed to be a vital mineral and thought of as matter of nationwide safety for Western international locations; that Energy Metals Corp. (the “Firm”) and its buyers can be in command of the one cesium mine that China doesn’t personal; that the Firm’s properties will be capable to commercially produce cesium, lithium, tantalum and/or different vital minerals; that the Firm will be capable to finance and operationally set up mines on its properties to viably and commercially extract the vital minerals; that Australian shareholders and buyers within the Firm will present improvement and different experience to help the Firm; that Winsome Sources will proceed to personal a big stake within the Firm; that the Firm’s property will at some point 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 aims as anticipated. These forward-looking statements are topic to a wide range of dangers and uncertainties and different components that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking data. Dangers that might change or forestall these statements from coming to fruition embrace the event of other applied sciences that don’t require using minerals and assets at present thought of as vital; that different assets are utilized in future in favour of uncommon earth metals similar to cesium; that different applied sciences make the most of different assets or that cesium, lithium, and tantalum usually are not utilized; that different corporations uncover assets of cesium and different battery metals which can be extra favorable or extra simply developed into industrial manufacturing that the Firm’s property; that the Firm’s properties are unable to supply industrial quantities of cesium, lithium, tantalum or different vital metals; that the Firm can be unable to finance or operationally set up mines on its properties for industrial extraction of any vital minerals; that the Firm’s Australian buyers will be unable to offer improvement and different experience to significant help the Firm; that Winsome Sources might for varied 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 varied causes. The forward-looking data contained herein is given as of the date hereof and we assume no duty to replace or revise such data to mirror new occasions or circumstances, besides as required by regulation.
This communication is for leisure functions solely. By no means make investments purely primarily based 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 appropriate. The content material of this text is predicated solely on our opinions that are primarily based on very restricted evaluation and we’re not skilled analysts or advisors.
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