Privately owned Global Atomic Fuels Corp. announced that Niger’s minister of mines has signed three-year renewals on the company’s six uranium exploration permits in the country.
As quoted in the press release:
Global Atomic is currently developing four uranium deposits in the country with the flagship DASA deposit currently undergoing a Preliminary Economic Assessment (PEA). The other 3 deposits, Isakanan, Dajy and Tin Negouran are currently less advanced.
As part of the DASA PEA program, Global Atomic has completed 110,000 meters of drilling including 22,000 meters of core drilling as well as advanced metallurgical, hydrogeological, environmental and geophysical studies. The current resource has been defined over a 1 km strike length however, Global Atomic’s exploration programs have defined a potential strike length of over four kilometers.
The DASA project is located on the main highway 80 km south of AREVA’s two operating uranium mines in Arlit which supply 30% of France’s uranium requirements. All infrastructure including roads, power and water are available at the DASA site.
Current studies are focused on a ramp access underground operation based on a 1,500 ppm cut-off grade which produces a blended headgrade of >3,400 ppm.
Drilling to date indicates in excess of a 10 year mine life at this grade, which would be economic even at current uranium prices. Should prices improve, a lower cut-off grade would increase the mineable tonnes and extend the mine life to over 20 years based on a 5,000,000 pound per year production rate.
Click here to read the full Global Atomic Fuels Corp. press release.
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Nemaska Lithium Inc. (TSXV:NMX,OTCQX:NMKEF) announced the signing of the final contract for the $12.87 M non-repayable grant for construction and operation of its Phase 1 Lithium hydromet plant. Concurrently with the signing of the agreement with Sustainable Development Technology Canada, the Corporation has received the first instalment of $2.1M.
As quoted in the press release:
The Phase 1 plant is designed to produce 500 tonnes per year of high purity lithium hydroxide. The Corporation is pleased to announce that the detailed engineering has commenced and that the construction of the Phase 1 plant is expected to start during Q1-2016 and be completed during Q4-2016. Once built, Nemaska Lithium intends to use this facility to produce commercial lithium hydroxide samples to send to end users in the lithium battery market with a goal of securing off-take agreements in advance of start of operation at the Whabouchi lithium mine and commercial hydromet facility. Nemaska Lithium is in discussions with a number of potential end users, all of which have requested samples as soon as possible.
Nemaska Lithium President and CEO, Guy Bourassa, stated
The demand for lithium hydroxide is growing at double digit rates annually and end users are keen to secure supply. Our unique method of producing lithium hydroxide uses electrolysis technology whose main input is electricity which, in Quebec, is green renewable hydro-electricity. This makes our lithium hydroxide process one of the greenest and lowest cost in the world. This is a value proposition which is unmatched in the industry and perfectly aligns us with the values of battery manufacturers, electric vehicle and energy storage consumers globally. The SDTC has a vision for clean technology-based businesses in Canada and we are proud to be a recipient of SDTC funding.
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Nemaska Lithium Inc. (TSXV:NMX,OTCQX:NMKEF) announced a general update on its Phase 1 Lithium Hydroxide Plant. The Phase 1 Plant is designed to produce 500 tonnes per year of high purity lithium hydroxide.
As quoted in the press release:
Construction of the Phase 1 Plant is expected to start during Q1-2016 and be completed during Q4-2016. On this matter, the City of Shawinigan will complete shortly the re-zoning process required to allow the Corporation to operate the Phase 1 and Commercial Hydromet plants at this location.
Earlier today, Nemaska Lithium announced receipt of the first installment of $2.1M from Sustainable Development Technology Canada (SDTC). Accordingly, the Corporation is in advanced discussions with key suppliers and intends to issue purchase orders in the coming weeks for certain equipment required for the construction of the Phase 1 Lithium Hydroxide Plant. In addition, Nemaska Lithium has commenced detailed engineering with a start-up target of Q4-2016 for the Phase 1 Plant.
Once built, Nemaska Lithium intends to use this facility to fulfill the terms of the MOU with Johnson Matthey Battery Materials Ltd (JMBM) of Candiac, Quebec that contemplates an up-front payment of CDN$12M by JMBM in exchange for services and products of the same value from the Phase 1 Plant (see press release November 19, 2015). In addition, Nemaska Lithium will produce commercial lithium hydroxide samples to send to end users in the lithium battery market with a goal of securing off-take agreements in advance of start of production at the Whabouchi lithium mine and commercial hydromet facility. Nemaska Lithium is in discussions with a number of potential end users, all of which have requested samples as soon as possible.
Nemaska Lithium President and CEO, Guy Bourassa, stated:
The agreement with SDTC and the successful re-zoning of the site are significant milestones that will enable us to launch the construction of the Phase 1 Lithium Hydroxide Plant. With the official launch of our Phase 1 project, we are looking forward to working with our community partners both locally and regionally. Community outreach and information sessions are ongoing and we will be presenting to the Manufacturiers de la Mauricie et du Centre-du-Québec later this week in Trois-Rivières, Quebec. We are also, among other things, scheduling meetings with the Shawinigan Chamber of Commerce and Industry to keep the local business community up to date on our project.
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A recent report from Rockstone Research highlighted MGX Minerals (CSE:XMG) recent news that they have entered into a Purchase Agreement with Zimtu Capital Corp., DG Resource Management Ltd. and Ridge Resources Ltd. to acquire a 100% undivided interest in 12 Metallic and Industrial Mineral Permits and Permit Applications encompassing 96,000 hectares throughout the Province of Alberta.
As quoted in the report:
Today’s acquisition is in line with MGX’s business model to be engaged in the acquisition and development of industrial mineral deposits that offer near-term production potential, minimal barriers to entry and low initial capital expenditures (“CAPEX”). The acquired 12 Metallic & Industrial Mineral Permits surround existing wells that have provided the initial historic lithium assays. The properties are generally associated with past producing oil fields that are fully serviced with nearby roads, power and wellheads in place.
6 of the acquired Permits are located in Alberta’s Fox Creek District and include wells with reported historic lithium values ranging from 115-140 mg/L in the lithium-bearing Leduc and San Hills Formations. Additional 6 Permit Applications cover various locations throughout Alberta including the Keg River, Winterburn and Woodbend Group Formations, with reported historic lithium values ranging from 95-140 mg/L. Assessment of exploration and production requirements at all 12 sites will commence shortly with assay confirmation, wellhead pumping and pressure tests, as well as initial infrastructure scoping studies. Evaluation of de-watering technologies is underway, including evaporation, drying and filtration options with a focus on low-cost solutions that leverage the existing oil field services industry and infrastructure, as well as being suitable to the climate of Alberta.
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Lithium Australia NL (ASX:LIT) and Pilbara Minerals who are exploring in the emerging Pilgangoora province in Western Australia’s Pilbara, have agreed to extend by a year a current agreement to evaluate the commercial potential of the area’s mica deposits.
As quoted in the press release:
The extension was announced today by lithium mica focused developer, LIT and Pilgangoora project owner, PLS which has already identified a world class spodumene bearing pegmatite resource in the project area.
Both parties said today they would extend until the end of this year, a previous agreement (a Memorandum of Understanding or MOU) ending December 2015, for LIT to apply its specialist mica expertise to identify and prove up a commercial case for lithium micas to be added to the growing market and developer interest in Pilgangoora’s lithium profile – now dubbed a “hot spot” for the increasingly in-demand commodity.
The extension follows significant exploration results at Pilgangoora over the past 12 months including the identification of new targets on the PLS ground in an area now known as the “Triple Creek Zone” which is shown in Figure 1 and labelled as a prospective lithium greisen zone.
Lithium Australia Managing Director, Adrian Griffin, stated:
The MoU provides the opportunity for LIT to review the commercial lithium potential of the PLS ground with a view to exploit mineralisation dominated by lithium micas and clays, particularly where they are associated with spodumene. LIT will also assess the prospectivity of historic tailings within the area.
LIT is also encouraged by PLS’s recent resource upgrade. The Triple Creek Zone has returned a unique high response which is indicative of lithium micas but has a geochemical profile quite distinct from the nearby spodumene bearing pegmatites. The unique geochemical signature makes the Triple Creek Zone a major target for further evaluation: quite separate from the PLS 6.5km mapped pegmatite system and its updated exploration target as announced on 1 February 2016 by PLS.
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Kivalliq Energy Corporation (TSXV:KIV) announced commencement of a 1,677 line-kilometre fixed-wing FALCON airborne gravity gradiometer survey on the Genesis uranium property in northeastern Saskatchewan. CGG Canada Services Ltd. has been contracted to fly the survey and in3D Geoscience Inc. will provide independent review of the data.
As quoted in the press release:
The FALCON gravity gradiometer survey will be divided into five separate grids providing coverage over the Jurgen, Kingston, Johnston/GAP, Daniel’s Bay, and Melnick priority target areas. Flight lines will be flown at 200 metre spacing and the survey will also include magnetic and terrain data collection. Gravity low responses potentially represent alteration associated with uranium mineralization. The survey is expected to be completed in early February, with final deliverables expected in March.
Exploration conducted on the Genesis Property during 2014 and 2015 by Kivalliq on behalf of Roughrider, successfully demonstrated the existence of numerous high priority targets for basement hosted uranium in the previously under-explored terrain northeast of the Athabasca Basin. Kivalliq and Roughrider plan to continue refining and upgrading existing targets while still seeking new ones throughout this large landholding.
Kivalliq Energy President, Jeff Ward, stated:
Gravity data from the FALCON gradiometer survey flown at Genesis will enhance existing geophysical and geochemical datasets. Areas characterized by favourable geochemistry, conductive trends and coincident gravity low anomalies will be prioritised for future work.
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ALX Uranium Corp. (TSXV:AL, OTCQX:ALXEF) closed the second tranche of its non-brokered private placement announced on December 29th 2015. The second tranche consisted of 4,195,000 Units at $0.05 per Unit for gross proceeds of $209,750. Including the proceeds of the first tranche, a total of $358,499.98was raised in the financing.
According to the company’s press release:
The unit consists of one common share and one share purchase warrant. Each share purchase warrant is exercisable into one common share of the Company for a period of 24 months from closing at a price of $0.10 per common share.
The Company paid a total finders fee of $10,080 and issued a total of 160,457 warrants exercisable at $0.10 per share for a period of 24 months from closing.
Click here to view the full press release.
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The Globe and Mail reported that oil prices fell once again on Monday on the back of weak economic data from China. Waning hopes for action from OPEC amid the oil supply glut have also contributed to the fall.
As quoted in the publication:
China’s manufacturing sector contracted at the fastest pace since 2012 in January, adding to worries about demand from the world’s second-biggest economy at a time when the market is already weighed down by a large supply overhang.
“The weak China PMI (purchasing managers index) is driving down prices because China weighs on the entire commodities sector from the demand side of the equation,” said Carsten Fritsch, senior oil analyst at Commerzbank in Frankfurt.
Brent April crude futures were down $1.39, or 3.9 per cent, at $34.60 a barrel by 11:03 a.m. EST.
Click here for the full article.
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Neometals (ASX:NMT) pointed to positive drill results released by Mineral Resources (ASX:MIN) for infill and expansion drill program at the Mt Marion lithium project on September 29.
As quoted in the press release:
During the December Quarter, 46 RC holes were drilled at the No.6 Deposit, for a total of 2,324 metres and 9 (83mm‐PQ) Diamond holes were drilled for a total of 693.2 metres on Deposits 1,2 and 2West.
The first phase of the resource infill and extension project is targeted at extending the size and increasing the classification of the existing resources at Deposits 1,2,2West and 6, and newly acquired lithium, rights on part of Hampton Location 53 (see plan below). Mt Marion’s current total Indicated and Inferred Mineral Resources are 23.24Mt at 1.39% Li2O and 1.43% Fe2O3, at a cut‐off grade of 0% Li2O (Appendix A).
A 30‐hole diamond drilling program for metallurgical and geotechnical purposes has been completed in January and the RC drill program continues with completion expected around the end of the March. New mineral resource and ore reserve estimates are planned for completion in the June and September Quarters respectively.
Click here for the full press release.
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Neometals (ASX:NMT) and Mineral Resources (ASX:MIN) reported that Ganfeng Lithium, China’s leading lithium producer, has agreed to expand the scope of its initial offtake agreement.
As quoted in the press release:
Metallurgical test work has identified an additional spodumene product can be generated through the addition of a flotation circuit to the current beneficiation plant. Neometals and MIN are pleased to advise that Ganfeng has agreed to expand the scope of the offtake arrangements to take-or-pay an additional 80,000 tpa of spodumene concentrate of between 4% and 6% Li2O content, generated by flotation at agreed discounts to the market prices for the 6% Li2O product.
The expansion remains conditional on RIM and MIN (via its wholly owned subsidiary, Process Minerals International Pty Ltd) agreeing and finalising the necessary variations to the Mining Services Agreement to cover the production of the lower grade product, which will include the addition of a flotation plant at the Mt Marion Project. The variation will be concluded on completion of a detailed metallurgical test program currently being undertaken.
Click here for the full press release.
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Peninsula Energy (ASX:PEN) announced it has now updated the Form 20-F and on 29 January 2016 filed an amended registration statement with the SEC for review. The amended Form 20-F encompasses developments concerning the Company since the November 2015 filing, including changes to reflect that the Company is now in production, and to include information requested by the SEC following their review of the earlier filing. Peninsula is seeking a secondary listing of American Depositary Shares on the NYSE MKT.
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Ashburton Ventures (TSXV:ABR) has acquired the Area 51 Lithium Brine prospect in Nevada. The claims cover 1,700 acres in the western portion of the Mud Lake playa.
As quoted in the press release:
Mud Lake is the largest playa within 50 km of Clayton Valley and is bordered by the same favorable Middle Tertiary felsic volcanic rocks considered to be the source of lithium at Clayton Valley. The Area 51 Property claims are adjacent to the hills bounding the playa to the west and cover the likely location of subsurface range bounding faults which control the location of brines at Clayton Valley. The claims abut the Nellis Air Force Range to the east which is closed to staking. It is thus possible the claims may cover subsurface drainage in west-dipping strata from a much larger area than the claim footprint.
Surface sampling of unconsolidated playa sediment by the vendor returned analyses of 77 ppm to 83 ppm Li from 4 samples collected. The sediment samples collected by the vendor were analyzed by ALS Minerals in Reno NV. Samples were screened to -180um and the fine fraction analyzed by ICP-MS for 53 elements including lithium.
Ashburton CEO, Michael England, said:
We are very excited to have one of the largest playa’s, which is what you are looking for with regards to a brine formation for lithium, outside Clayton valley. Considering that the majority of this substantial playa is under government territory, this means Ashburton is the only company now able to exploit this situation. We eagerly look forward to getting to work to determine the full extent of this high priority target.
Click here for the full press release.
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Lithium Australia NL (ASX:LIT) announced it has submitted a Program of Works for approval by the Western Australian Department of Mines and Petroleum.
As quoted in the press release:
The PoW pertains to Lepidolite Hill which is part of the Coolgardie Rare Metals Venture (80% LIT and 20% Focus Minerals Limited [ASX: FML]) the location of which is shown in Figure 1. The approval is a precursor to recovering about 1,500t of lepidolite for further metallurgical testing.
Figure 1 shows LIT controlled projects in the Yilgarn Craton of Western Australia. The Coolgardie Rare Metals Venture, including Lepidolite Hill, is located about 15km south of Coolgardie.
LIT plans to undertake larger scale pilot testing of lithium micas later in 2016 using L-Max technology exclusively licensed to LIT in Western Australia and the Cinovec project in the Czech Republic. L-Max has been specifically developed to recover lithium, in the form of lithium carbonate, from lithium micas.
Material recovered from the Lepidolite Hill bulk sampling program is likely to be included in the pilot plant feed. LIT has commenced discussions with metallurgical laboratories to ensure plant and equipment are available to undertake the program when required.
LIT continues to evaluate improvements to processing technologies for application to other silicate minerals, including clays and spodumene.
Lithium Australia Managing Director, Mr Adrian Griffin stated:
The bulk sampling will provide a significant supply of material for further testing. Pilot testing is part of the process of de-risking the flowsheet and will generate data required for further feasibility studies. We are keen to reach this stage of development as soon as practical as pilot testing will further demonstrate the veracity of the process. This is part of the rigour required for project financing and we need to be able to take that step when required.
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Toro Energy Limited (ASX:TOE) announced it has expanded its high grade resources (500 ppm cut-off) at the 100% owned Wiluna Uranium Project which is expected to deliver improved project economics for Australia’s most advanced uranium development project.
As quoted in the press release:
- Lake Maitland deposit increases to 16.9 Mlbs1 contained U3O8
- Centipede, Millipede, Lake Maitland and Lake Way high grade resources now total 40.4 Mlbs / contained U3O8
- Study of high grade mining strategy to deliver improved project economics now underway
High grade mineral resources at Lake Maitland have increased to 16.9 Mlbs contained U3O8 with an average grade of 929 ppm. This is in addition to the increase in Centipede/Millipede announced in October 2015, delivering an overall increase of 10% in the total contained metal.
The Mineral Resource Estimate for the Centipede, Millipede, Lake Maitland and Lake Way2 deposits is now 40.4 Mlbs contained U3O8 with an average grade of 951 ppm.
The increase at Lake Maitland follows the completion of geochemical analysis of the 2015 drilling campaign which included 49 drill holes for 536m. Fifteen per cent of the holes intersected mineralisation above 2,000 ppm U3O8 in shallow lying zones at a depth less than five metres from surface
Toro Energy Managing Director, Dr Vanessa Guthrie , stated:
The latest increase in resources proves conclusively that the Wiluna Project is able to deliver a high head grade to the mill that will undoubtedly improve project economics Managing. We now have the opportunity to assess the potential for a high grade mine plan and feed this into the optimisation studies over the next few months to deliver improved project economics.
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MGX Minerals (CSE:XMG) announced they have entered into a Purchase Agreement with Zimtu Capital Corp., DG Resource Management Ltd. and Ridge Resources Ltd. to acquire a 100% undivided interest in 12 Metallic and Industrial Mineral Permits and Permit Applications encompassing 96,000 hectares throughout the Province of Alberta.
As quoted in the press release:
The Properties were acquired based on compilation of historic oil and gas well data and known geology. Lithium, potassium and magnesium rich brines have been identified with historic levels of lithium reported up to 140 Mg/L. This is the highest reported levels of lithium for existing wells in the Province as reported in the industry database. All assays referenced are from the geoScout Oil & Gas Industry database as reported by well operators and monitored by the Government of Alberta.
Location & Infrastructure
The Properties surround existing wells that have provided the initial historic assays. The Properties are generally associated with past producing oil fields that are fully serviced with nearby roads, power and wellheads in place. Six Permits are located in Alberta’s Fox Creek area and include wells with reported historic lithium values ranging from 115-140 Mg/L, in the lithium-bearing Leduc and San Hills formations. The six Permit Applications cover various locations throughout the Province including the Keg River, Winterburn and Woodbend Group formations, with reported historic lithium values ranging from 95-140 Mg/L.Exploration & Development
The Company is currently in discussion with scientists, geologists and engineers, along with oil industry experts, to determine the best path forward for the development of MGX’s lithium assets. Assessment of exploration and production requirements at all 12 sites will commence shortly with assay confirmation, wellhead pumping and pressure tests, as well as initial infrastructure scoping studies. Evaluation of de-watering technologies is underway, including evaporation, drying and filtration options with a focus on low-cost solutions that leverage the existing oil field services industry and infrastructure, as well as being suitable to the climate of Alberta.
MXG Minerals President and CEO, Jared Lazerson, stated:
MGX has acquired these Permits with the long-term strategic goal of turning Alberta’s barren oil fields into producers of lithium compounds used in the new energy industry. We believe Alberta offers a significant advantage over traditional lithium brine locations globally with an extensive infrastructure including roads, equipment, skilled labor and capital. Large lithium resources have traditionally been associated with remote locations and long development times. We may have solved this problem.
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As someone who’s been working in Argentina since 1999 — most recently spending time there as a director of lithium junior Dajin Resources (TSXV:DJI,OTCMKTS:DJIFF) — Catherine Hickson has plenty of thoughts on the recent political shift in the country and what it means for the mining industry.
Argentina hasn’t been known as the friendliest environment for investors in the past. However, with the election of conservative candidate Mauricio Macri this past November, many investors are expecting big changes in how the company does business, and that could be a boon for the mining industry.
Hickson recently returned from meeting with Argentina’s mines minister, and stated that some of those changes are already taking place. “At a national level, the new president has done incredible things very, very quickly to open up Argentina to investment,” she said.
For example, Hickson explained that Dajin had been waiting for months to arrange a meeting to discuss community and environmental issues for its project. However, within a week of Jujuy’s new provincial government being put in place, the company had its meeting; it expects to complete the final steps necessary to begin exploration soon.
Watch the video above for more about how Hickson sees changes in Argentina affecting the mining industry.
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Dajin Resources is a client of the Investing News Network. This article is not paid for content.
Related reading:
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VRIC 2016, Day 2: Notes from the Floor
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After staying relatively flat last week, the gold price took a step up this week, rising to an impressive 12-week high of $1,127.80 per ounce on Wednesday.
According to The Economic Times, gold’s Wednesday leap came after the US Federal Reserve said it will not make any changes to interest rates. The central bank also commented that while it is “closely monitoring” global economic and financial developments, its view of the US economy remains optimistic, and it is on track for future rate hikes this year.
The metal retreated somewhat on Thursday as investors cashed in on gains made Wednesday. But by Friday at 1:00 p.m. EST the gold price was up at $1,115.95, with many market participants encouraged by new data showing that economic growth in the US “braked sharply in the fourth quarter.”
Reuters states that gold is now “on track for its biggest monthly rise in a year.” Thus far, the gold price is up almost 5 percent in January, and Macquarie analyst Matthew Turner told the news outlet, “one positive lesson we can learn from this month is that gold does still have a safe-haven role and that could stand it in good stead through a testing year to come.”
Updated December 2015
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For its part, the silver price has followed much the same path as gold this week, hitting a weekly high of $14.56 per ounce on Wednesday. It was trading at $14.25 as of 1:00 p.m. on Friday.
On the base metals side, benchmark LME copper ended the week up 0.7 percent, at $4,561 per tonne. According to Reuters, the red metal has now gained for the second week in a row; however, it’s still down 3 percent for the year.
Speaking to the publication, Norbert Ruecker, head of commodity research at Julius Baer, commented, “[t]he rise is more related to short-covering. Metals are possibly mimicking the oil market and there has been this supportive news from Indonesia.” As those watching the copper space are no doubt aware, major miner Freeport-McMoRan (NYSE:FCX) lost its right to export copper concentrate from the country on Friday.
Finally, oil prices had a topsy-turvy week — though some optimism hit the market Thursday when Russia said it would be willing to talk about oil production levels with OPEC (a move that could revive languishing prices for the fuel), it was quickly erased when OPEC said no meeting was scheduled. Iran later said that it would not participate in any such agreement.
As of 1:15 p.m. EST on Friday, Brent futures for March delivery were trading at $34.56 per barrel, while US crude was sitting at $33.55 after hitting a high of $34.40.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Related reading:
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Weekly Round-Up: Gold Below $1,100, Copper Under $2
Weekly Round-Up: Gold on a Tear After China Troubles
Weekly Round-Up: Gold Price Rebounds from Six-year Low
Weekly Round-Up: Gold Holding Steady Ahead of Fed Meeting
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The Australian reported that Malcolm Turnbull and his Resources Minister, Josh Frydenberg look to get Australia more involved in the nuclear industry.
According to the news:
[T]he long-term strategic stakes for the Australian economy, and the nation more broadly, are potentially immense. In a few weeks, the royal commission into the nuclear fuel cycle set up by South Australian Premier Jay Weatherill will issue an interim report, with a final report likely in April.
Turnbull recently commented:
I think a lot of South Australians feel like this … we have got the uranium, we mine it, why don’t we process it, turn it into the fuel rods, lease it to people overseas. When they are done we bring them back and we have got very stable geology in remote locations and a stable political environment.
That is a business that you could well imagine here. Would we ever have a nuclear power station in Australia? I would be a bit sceptical about that and I’m not talking about the politics.
We have so much other affordable sources of energy, not just fossil fuel like coal and gas but also wind, solar — the ability to store energy is getting better all the time and that’s very important for intermittent sources of energy, particularly wind and solar. But playing that part in the nuclear fuel cycle I think is something that is worth looking at closely.
Click here to view the full article.
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ABC News reported that Japan has restarted yet another nuclear reactor using a riskier plutonium-based MOX fuel. This is the first reactor of this type to resume operations under the stricter safety rules.
According to the report:
The No. 3 reactor at Takahama nuclear plant in western Japan, operated by Kansai Electric Power Co., went back online Friday. Dozens of people protested outside the plant in Fukui prefecture, where preparations for a restart of another reactor, No. 4, are also underway.
Fukui has more than a dozen reactors, the biggest concentration in one prefecture, causing safety concerns for neighbors including Kyoto and Shiga, whose Lake Biwa is a major source of drinking water for western Japan.
Click here to view the full report.
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Galaxy Resources (ASX:GXY) announced a Quarterly Report highlighting the Mt Cattlin Project located in Western Australia.
As quoted in the press release:
Significant events during the quarter:
- All outstanding historical debt fully settled.
- Partial discounted buyback of convertible bonds, with remaining balance settled from proceeds of new 3 year facility with OCP
- Sales and Distribution agreement signed with Mitsubishi for 100% of Spodumene concentrate sales from Mt
- Independent review of Mt Cattlin completed by Entech Mining
- Sal De Vida full permitting renewed through to construction from both Salta and Catamarca provinces.
- New president elected in Argentina, major policy changes immediately introduced.
Project Development
As a result of the many positive macroeconomic and policy changes that have been recently instigated in the country at both national and provincial levels, Galaxy will now be undertaking an extensive review exercise on the original Definitive Feasibility Study for its Sal de Vida Project, in particular many of the financial assumptions contained therein, as it is expected that the recent policy changes will have an overall favorable impact on the project economics.
The Company will now also be taking steps to build up its owner’s team, to assemble a group of key professionals with core competencies in multiple disciplines including, among others – engineering, processing, technology, operations and logistics – which will be taking the Sal De Vida Project to the next stage of development through to construction. Galaxy will be bringing on key members to that team, who are industry veterans with decades of experience in building and operating similar brine projects in South America.
During the quarter, Galaxy reported that GMM had completed an Independent Review of the Mt Cattlin open pit financial model. The review was conducted by Entech Pty Ltd and commissioned by GMM.
During the period, it was also reported that GMM had announced it had signed a Sales & Distribution Agreement with Mitsubishi Corporation for up to 100% of the lithium bearing spodumene concentrate which will be produced from the Mt Cattlin Project.
Mitsubishi is one of the largest traders of lithium products in the world, spanning the entire value chain. This agreement marks a major milestone being achieved in the run-up to the recommencement of production at Mt Cattlin by the end of March 2016. With Mitsubishi’s top tier status as an international trading house with specialist knowledge of the lithium supply chain, it represents an important recognition of the Mt Cattlin Project as a high quality source of near-term lithium supply to the market.
Pursuant to the terms as announced on 9th June 2015, the partnership on Mt Cattlin is subject to a A$25 million earn-in by GMM for a 50% equity interest in the Project and will see Galaxy receiving no less than A$6 million per annum in the first three years after commencement of production, as well as a 50% share of the operating cash flows.
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Peninsula Energy (ASX:PEN) has released a Rodman & Renshaw Report highlighting the company’s Lance Projects located in Wyoming.
As quoted from the report:
Peninsula Energy presents a unique opportunity. Peninsula Energy, based in Australia, owns the Lance Projects located in Wyoming and is focused on developing an In-Situ Recovery (ISR) uranium powerhouse. In our view, the low cost ISR processing technique, coupled with high priced long-term contracts positions Peninsula as a viable uranium producer despite spot uranium prices hovering around $35 per pound. Management began signing longterm contracts for production at Lance in 2011 when uranium prices were significantly higher than today. The firm currently has contracts in place totaling 7.8 million pounds at an average price of $59 per pound through 2020. Therefore, the average price Peninsula is expected to receive throughout the remainder the decade is significantly higher than the current long-term price of approximately $45 per pound, which we feel locks in margin and de-risks operations as a whole. In our view, Peninsula’s long-term contracts and low cost ISR operations position the firm to thrive despite lower spot uranium prices.
First production was reached in 2015. In December 2015, the firm brought its Ross Permit Area (located within the Lance Projects) online with ISR production commencing. We currently estimate average cash costs of just $22 per pound during Stage 1, generating an impressive gross margin of approximately 63%. Further, Lance hosts a significant resource base totaling 53.6 million pounds, including 4.5 million pounds in Measured, 12.6 million pounds in Indicated and 36.5 million pounds in Inferred resources. We note that while the majority of resources are Inferred, the firm currently has six drill rigs operating, which we feel could ultimately increase resources while upgrading the existing resource base.
Connect with Peninsula Energy (ASX:PEN) to receive an Investor Presentation.
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Ted O’Connor is CEO of Plateau Uranium (TSXV:PLU), a Peru-focused uranium junior that just released the preliminary economic assessment (PEA) for its flagship Macusani Plateau project. With over 20 years of experience working on the exploration side for uranium giant Cameco (TSX:CCO,NYSE:CCJ), O’Connor is no stranger to the uranium market.
In the above video, O’Connor provides investors with a view of the market from his perspective. From there, he dives right into his company’s recent PEA, giving investors the key focus points.
“There is no arguing in most commodities that grade is king,” O’Connor told the Investing News Network; however, “what we are trying to show is that in the end it is not all about grade — in the end it’s about economics, and we have a really good looking project.”
Watch the video to learn more about what O’Connor has to say.
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Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Plateau Uranium is a client of the Investing News Network. This article is not paid-for content.
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Lithium Australia NL (ASX:LIT) has announced it’s quarterly activities report and quarterly cashflow.
As quoted in the press release:
Highlights
- LIT produces lithium hydroxide from its Lepidolite Hill (Western Australia) lithium carbonate. Final reconciliations
- 100% success rate in LITCB to LITCC conversion program
- LIT executes memorandum of understanding to jointly develop lithium extraction technologies at the Electra Project with samples containing lithium now collected
- Geochemical surveys completed at Lepidolite Hill
- Geochemical surveys commenced at Pilgangoora
- Appointment of consultants to spearhead lithium clay processing
- Successful capital raisings during and after quarter end including first institutional shareholder
- Research initiated on LIT
- Subsequent to quarter end, LIT has raised funding of $6.5m
SUMMARY
Lithium Australia (“LIT”) is the only company actively pursuing the production of battery-grade lithium carbonate and lithium hydroxide from micas with a cost competitive processing technique. This gives LIT significant ‘first mover’ advantage, as does the exclusive nature of its extraction technology licenses.
Western Australia’s lithium mica deposits remain LIT’s exclusive domain, while the first of its global licenses has been allocated to the giant Cinovec deposit in the Czech Republic.
Meanwhile, LIT is assessing other projects worldwide and reviewing opportunities in Africa, Europe, the Americas and Australia.
Subsequent to quarter end, LIT has raised funding of $6.5m in 2 tranches with success in the attraction of its first institutional investor.
Connect with Lithium Australia NL (ASX:LIT) to receive an Investor Kit.
The post Lithium Australia’s December Quarter Proves Lithium Hydroxide Can Be Produced From Lithium Micas appeared first on Investing News Network.
Mining Weekly reported that according to Fitch Ratings, uranium spot prices are likely to remain under pressure for the rest of the decade owing to high inventory levels, recycling of already mined uranium and the slow restart of Japan’s nuclear reactors.
According to the market report:
The extended period of oversupply also contributed to a big build-up in utilities’ uranium stockpiles, with European utilities having enough fuel to last three years and Japan utilities enough for four to five years.
Click here to view the full report.
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Metals prices and mining stocks might be down, but Ross Beaty, mining legend and chairman of Pan American Silver (TSX:PAA) and Alterra Power (TSX:AXY), is still optimistic. Beaty stopped by the Investing News Network’s booth at the recent Vancouver Resource Investment Conference to talk about gold, silver, clean energy and more.
When asked where investors might find some optimism in the current lengthy bear market, Beaty stated, “I think it’s going to bottom very, very soon. I expect actually 2016’s going to be the bottom … we’ve seen a real capitulation in a lot of investors, in a lot of commodity prices. I just love when that happens, because that, to me, is a real signal of [being] close to the bottom.”
Other highlights from our conversation include:
Watch the video above for more of what Beaty had to say.
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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Related reading:
VRIC 2016, Day 1: Notes from the Floor
VRIC 2016, Day 2: Notes from the Floor
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Reuters reported that Niger has awarded a permit to GoviEx Niger Holdings Ltd., the Niger branch of GoviEx, to exploit uranium for investments worth $676 million at the 243-km Madaouela Project in the Agadez region, according to a government statement.
According to the report:
The landlocked West African country is a major uranium producer and the ore is central to France’s nuclear energy program.
Niamey also granted four permits for uranium exploration to GoviEx Niger Holding Ltd. and two other companies, said the statement, which is read on public television.
French state-owned nuclear company Areva also operates in the central Nigerien region. The relationship has been fraught; in April its workers launched a strike before a court declared it to be illegal.
Click here to view the full article.
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Peninsula Energy (ASX:PEN) announced their 2015 Quarterly Activities Report highlighting the Lance Uranium Project in Wyoming.
As quoted in the press release:
HIGHLIGHTS
WYOMING, USA – LANCE URANIUM PROJECTS
Connect with Peninsula Energy (ASX:PEN) to receive an Investor Presentation.
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Nevada Sunrise Gold Corporation (TSXV:NEV) announced that it has signed a letter agreement for an option to purchase water rights in the Clayton Valley of Nevada. The pre-existing water rights allow for 1,770 acre/feet of water use for mining and milling per year.
As quoted in the press release:
In December 2015, Nevada Sunrise received a written appraisal from an independent appraiser certified in the State of Nevada, which valued the Permit at US$1.42 million. According to the appraisal report, the Clayton Valley basin is currently “over-appropriated”, with Albemarle Corp.’s Silver Peak lithium mine being the largest consumer of water in the area. The report further states that any new application for water use in an over-appropriated basin would be carefully reviewed by the Nevada Division of Water Resources, and it is uncertain if any new applications would be granted. Nevada Sunrise believes that its acquisition of the existing Permit will be a key factor in future lithium exploration and development by the Company for brines in the Clayton Valley.
Nevada Sunrise Gold President and CEO, Warren Stanyer, stated:
The acquisition of water rights by Nevada Sunrise is an important step toward the potential development of any lithium brine discoveries on our Clayton Valley exploration properties. We believe that any consumption of water in the Clayton Valley requires valid water rights to meet State regulations, especially in Nevada, the most highly-regulated state for water use in the U.S.
Connect with Nevada Sunrise Gold Corporation (TSXV:NEV) to receive an Investor Kit.
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(ASX:) announced a Quarterly Activities Report highlighting their Wiluna Uranium Project located in Australia.
HIGHLIGHTS
- 20% upgrade to the Centipede/Millipede resource which now includes 15.3 Mlbs U3O8 at an average grade of 1021ppm (500ppm cut-off). Total resources at Wiluna stand at 80.5 Mlbs. Resource revision for Lake Maitland and Nowthanna deposits imminent.
- Promising results from metallurgical testwork studies including testing a beneficiation process that produced a de-slimed product effectively rejecting up to 15% of mass with minimal loss of uranium.
- Release of Public Environmental Review (PER) for mining at Millipede and Lake Maitland for 12-week public
- Traditional owner agreement negotiations continued including the completion of a heritage survey in
- Heads of Agreement signed with Oz Minerals for exploration joint venture on highly prospective nickel tenements at Lake
- Mr Tim Netscher appointed as Non-Executive Director and Chairman on 1 November
- Uranium spot price remained steady at US$34.20/lb and long term prices remained steady at US$44.00/lb at end of December
- Japanese reactor restart program well underway with two reactors operating and a further three reactors likely to restart in Q1
- China committed to 40 new reactors by 2020 for domestic power, and extended nuclear technology interests internationally with Britain, Iran, Argentina and
- $6M interest free loan refinancing completed with The Sentient Group, remaining $6M balance of Macquarie Bank loan repaid in
- Cash balance at end of the quarter was $13.4M.
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Pure Energy Minerals (TSXV:PE) reported that its subsidiary, Esmeralda Minerals has received remaining funding for its collaboration with SRI INternational to develop novel cost-effective methods for lithium extraction from geothermal brines.
As quoted in the press release:
Jointly funded by the DOE and the partners, SRI has teamed with Esmeralda Minerals LLC and NII to develop, validate and commercialize a new generation of highly selective ion exchange resins to separate metals, including lithium, from geothermal fluids more efficiently and at lower cost than current processes. The research is being conducted using lithium-enriched brines collected from the Company’s lithium brine project in Clayton Valley, Nevada and release of these funds allows expanded testing using Esmeralda’s resources.
Pure Energy CEO, Robert Mintak, said:
We are delighted with the positive announcement from the DOE to release the remaining funding. The addition of Nitto Innovations Inc. will help unlock the potential commercialization opportunities that may exist for this technology.
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Ur-Energy Inc. (NYSEMKT:URG, TSX:URE) entered into an agreement with a syndicate of investment dealers led by Cantor Fitzgerald Canada Corporation and including Raymond James Ltd. and Dundee Securities Ltd., which have agreed to purchase, on a bought-deal basis, 12,000,000 common shares of Ur-Energy at a purchase price of US$0.50 per common share, for aggregate gross proceeds to the Company in the amount of US$6 million.
According to the company press release:
In addition, Ur-Energy has agreed to grant the Underwriters an over-allotment option exercisable at any time, in whole or in part, for a period of 30 days following the closing of the offering, to purchase up to 1,800,000 additional common shares at the issue price for gross proceeds of up to US$900,000.
Ur-Energy plans to use the net proceeds of the offering to advance the operations and development of the Lost Creek Project including wellfield construction and development as identified in the recently-completed Preliminary Economic Assessment for the Lost Creek Property, for payment of ongoing debt service obligations, and for general corporate purposes.
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(TSXV:) announced has appointed Dr. John S. Oldow, PhD, to its advisory board as a geological technical adviser.
Dr. Oldow has over 40 years of experience in the field of geology, and is currently Director of the Ellison Miles Center for Geological Field Studies at the University of Texas, Dallas. His work is largely field based and includes geologic mapping and the application of structural and stratigraphic analysis, potential-field geophysics, GPS geodesy and Terrestrial Laser Scanning to better understand regional tectonics. He attained a Bachelor of Science, Geology from the University of Washington in 1972 and his Ph.D. in Geology from Northwestern University in 1978. Among the many tributes he has received in his long academic and professional career, Dr. Oldow has served by invitation on numerous committees for the National Science Foundation, and is a Fellow of the Geological Society of America (1992).
The results of Dr. Oldow’s recent field work in western Nevada on regional tectonics in the Walker Lane trend, specifically in Esmeralda County, led to the application of his work by Nevada Sunrise in its lithium brines exploration. His co-authored 2015 paper on the results of detailed gravity surveys in the Lida Valley prompted the acquisition of the Gemini Project, staked by Nevada Sunrise over two, deep sub-basins. Dr. Oldow’s other proprietary geophysical work has assisted Nevada Sunrise in staking new claims at the Aquarius Project in the Clayton Valley, and in the staking of additional claims at the Atlantis Project in the Fish Lake Valley.
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Reuters reported that Chile has put out a call to tender the exploration of two salt flats owned by Codelco.
As quoted in the publication:
Codelco had already received letters of intention for its planned tender to evaluate and explore the “relatively small” lithium reserves in Maricunga and Pedernales in the Atacama desert, the company’s chairman Oscar Landerretche told reporters.
“Many international companies are interested. It will be an open process,” Landerretche said on the sidelines of an event to announce the new policy. Codelco has not yet published more details of the tender.
The government would also establish a new regulatory framework for lithium exploration “with clear rules” that would be sustainable and involve local communities, President Michelle Bachelet said at the same event.
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Peru-based Plateau Uranium (TSXV:PLU) announced its preliminary economic assessment (PEA) for the Macusani Plateau in Peru on Monday, and the results were encouraging, to put it mildly.
Using a conservative future uranium price of US$50, Plateau Uranium has put together an impressive PEA that delineates the potential for Macusani Plateau to become a world class project.
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One of the more impressive highlights of the company’s PEA is its cash operating costs, which look to average US$17.28 per pound over the life of the mind. According to Plateau, this operating cost places the company in the lowest quartile of uranium producers in the world.
As far as initial capital expenditures go, Plateau is looking at an estimated $249.7 million, with a $50.1 million in contingencies. From here, the company can build the mine along with a 10.9 million tonne per year heap leach process plant. It is important to note that the company will not require any customized equipment in order to build the plant, and can use “off-the-shelf” equipment and technology.
Plateau also has a net present value (NPV) – with an 8 percent discount rate – of US$852.7 million pre-tax and a post tax figure of $603.1 million. Looking at the pre-tax internal rate of return (IRR), Plateau is looking at 47.6 percent. Meanwhile, after-tax that figure is just as positive at 40.6 percent. Overall the company is eying a pre-tax capital payback estimated at 1.69 years, whereas post-tax, that figure is 1.76 years.
“The low cost potential of the Macusani Plateau uranium project, with estimated production costs similar to some of the best uranium operations in the Athabasca Basin and Kazakhstan, combined with significant estimated annual production levels, and estimated capital costs of less than US$300 million, near significant infrastructure in mining friendly Peru, all highlight the potential strategic nature of our project to supply the growing near-term uranium demand expected within the next 4 years.” Chief Execitive Officer Ted O’Connor said in a statement.
Still, with under 2 years to payback capital, Plateau is on to something big with the Macusani Plateau deposits.
In fact, the company highlighted its expectations for production from the project, which look to be in the area of 6.9 million pounds per year over the course of the life of mine. Furthermore, Plateau plans to process 109.0 million tonnes at 289 ppm U3O8 over a 10-year life of mine period. All this to say that the Macusani Plateau project stands to be within the top five largest uranium operations in the world.
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Plateau is planning on approaching mineral extraction via standard open pit mining, with a relatively small, yet higher grade underground operation contemplated with an average life of mine stripping of 2:1 waste to ore. The company noted that the “[o]ptimized base case includes only 3 of the 5 main mineralized complexes with current mineral resource estimates identified at the project.”
Plateau also looked at high grade scenarios with both heal heap leach and tank leach processing options.
“The strong PEA results further validate the merits of the Company’s consolidation and organic growth strategy to control all defined uranium resources in Peru.” O’Connor said, adding “Our plan is to move the Macusani Plateau uranium project further along the path to development by progressing our environmental permitting strategy in Peru, initiating further delineation, expansion and exploration drilling, and following through with additional pre-feasibility metallurgical and engineering study work over the coming year. The work completed on the high-grade heap leach and tank leach scenarios has provided up-front, potentially economic options to consider in the future pre-feasibility work.”
With things looking bright in the future for the uranium market, the company is looking to capitalize on the growth to be had within the sector.
Following the news, Plateau Uranium saw its share price increase 2.67 percent, to trade at 0.385.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.
The post Plateau Uranium PEA Demonstrates $17 per Pound Base Case Cash Operating Costs appeared first on Investing News Network.
Plateau Uranium (TSXV:PLU) released the preliminary economic assessment (PEA) for its Peru-based Macusani Plateau uranium project on Monday, and the results are encouraging, to put it mildly.
Using a conservative future uranium price of US$50 per pound, Plateau has put together an impressive PEA that shows Macusani Plateau has the potential to become a world-class project.
One of the more impressive highlights of the PEA is its cash operating cost, which will average US$17.28 per pound over the life of the mine. According to Plateau, this operating cost places the company in the lowest quartile of uranium producers in the world.
As far as initial capital expenditures go, Plateau is looking at an estimated $249.7 million, with $50.1 million in contingencies. From there, the company will be able to build the mine, along with a 10.9-million-tonne-per-year heap leach process plant. It is important to note that Plateau will not require any customized equipment in order to build the plant, and can use “off-the-shelf” equipment and technology.
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Looking further at numbers, the project has a pre-tax net present value of US$852.7 million at an 8-percent discount — that comes to $603.1 million after tax. Meanwhile, the project’s pre-tax internal rate of return sits at 47.6 percent; after-tax that figure is just as positive at 40.6 percent. Overall, the company is eyeing a pre-tax capital payback of 1.69 years, or 1.76 years post tax.
“The low cost potential of the Macusani Plateau uranium project, with estimated production costs similar to some of the best uranium operations in the Athabasca Basin and Kazakhstan, combined with significant estimated annual production levels, and estimated capital costs of less than US$300 million, near significant infrastructure in mining friendly Peru, all highlight the potential strategic nature of our project to supply the growing near-term uranium demand expected within the next 4 years,” CEO Ted O’Connor said in a statement.
Still, with under two years to pay back capital, Plateau is onto something big with Macusani Plateau. Production from the project looks to be in the area of 6.9 million pounds per year over the mine’s life. Furthermore, Plateau plans to process 109 million tonnes at 289 ppm U3O8 during that time. All that is to say that Macusani Plateau stands to be within the top five largest uranium operations in the world.
Plateau is planning on approaching mineral extraction via standard open-pit mining, with a relatively small — yet higher-grade — underground operation contemplated with an average life-of-mine stripping of 2:1 waste to ore. The company noted Monday that the “[o]ptimized base case includes only 3 of the 5 main mineralized complexes with current mineral resource estimates identified at the project.”
Plateau has also looked at high-grade scenarios with both heap leach and tank leach processing options.
“The strong PEA results further validate the merits of the Company’s consolidation and organic growth strategy to control all defined uranium resources in Peru,” O’Connor said, adding, “[o]ur plan is to move the Macusani Plateau uranium project further along the path to development by progressing our environmental permitting strategy in Peru, initiating further delineation, expansion and exploration drilling, and following through with additional pre-feasibility metallurgical and engineering study work over the coming year. The work completed on the high-grade heap leach and tank leach scenarios has provided up-front, potentially economic options to consider in the future pre-feasibility work.”
With the future of the uranium market looking bright, Plateau is looking to capitalize on the growth to be had within the sector. Following the PEA’s release, Plateau saw its share price increase 2.67 percent, to end the day at 0.385.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.
The post Plateau Uranium PEA Demonstrates $17 Base-case Cash Operating Cost appeared first on Investing News Network.
