The corona virus can devastate the global economy, but once the dust settles, it’s all about access to critical metals, from the 5G war to every high-tech energy transition in the pipeline.
Critical metals are a big part of the difference between global dominance and … at best second place.
From today’s perspective, China wins because it has first-class access, while the United States has smaller minerals.
So when a Canadian junior miner appears as the owner of three properties in Ontario that could provide the only new supply of one of these critical metals, North America sees hope.
The metal is cesium and the miner is power metals (TSXV: PWM, OTC: PWRMF) – a little-known company with a well-known geologist who has just sat down on the map of critical metals.
The 5G revolution, American military defense, healthcare, and even time itself depend on this one critical metal that China monopolizes and from which the United States desperately wants to get more.
There are only three cesium mines in the world, with China fully controlling the supply. That means it’s about a new offer.
Of five cesium deposits in the Canadian province of Ontario, Power Metals owns 100% of three (West Joe, Tot Lake and Marko).
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "America’s late despair“data-reactid =” 20 “>America’s late despair
China produces around 70% of the world’s rare earth minerals. According to the US Geological Survey (USGS), the company delivered about 80% of American rare earth imports in the three years to 2018.
While China was moving at full speed, America was caught driving the car. Indeed, at the height of the trade war, China said it could restrict the export of some rare earth minerals.
Now it’s time to wake up.
In May 2018, the U.S. Department of State included lithium, cesium, and tantalum in its critical mineral list. Trump is now striving to promote domestic production and partner with other countries for new supplies.
Drones are being developed to search the country for potential critical mineral deposits. In late April, the US State Department supported the launch of an online tool to help countries with critical mineral resource potential develop these assets for US investors, Bloomberg reported.
It is an unprecedented effort to eliminate the risk of investing in certain venues and “secure the right of Americans to many of the world’s rare earth minerals.” And it’s about finding resources in countries where investors can find the setup.
The problem is that most of the new critical metal supply will take place in places that pose a risk to investors.
“Either the world will not get the minerals it needs to drive technologies for the energy transition,” or “this investment would only come from those who are less concerned about governance issues, transparency, corruption, environmental standards, and best practices “Deputy Secretary of State for Energy Resources Francis Fannon said Bloomberg in an interview.
But for cesium, there is hope that it is not a risky place that needs a special “toolkit”: it is Canada – home to some of the world’s best young talent who are exploring new avenues before they are opened up by larger companies.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cesium: supercritical“data-reactid =” 30 “>Cesium: supercritical
Cesium is described by the German Institute for Strategic Metals (ISE) as “the most electropositive of all stable elements in the periodic table” and the heaviest of the stable metals. Cesium is “extremely pyrophoric, ignites spontaneously on contact with air and explodes violently in water or ice at any temperature above -116 ° C”.
But the industry would describe it very differently.
Without this metal, there won’t be a 5G revolution. This is also critical for the healthcare industry, which uses cesium compounds in medical imaging, cancer therapy, positron emission tomography (PET) to name a few. For everything from catalyst promoters, glass amplifiers, photoelectric cell components, crystals in scintillation counters and getters in vacuum tubes, cesium is crucial.
A great need for cesium also comes from the oil and gas industry, which uses cesium formate brine in drilling fluids to prevent blow-out in high-temperature wells with excess pressure.
In terms of world domination, the “cesium standard” is the key. This is the standard by which accurate, commercially available atomic clocks measure time, and is critical to the data transmission infrastructure of cellular networks, GPS, and the Internet.
That means it also has serious defense applications, including infrared detectors, optics, night vision goggles, and more. A cesium laser was even invented for use in missile defense and other technological applications.
Cesium is so dark that it is almost impossible to track its actual market price.
It’s strategic in and of itself, but its rarity makes it even more critical.
There are only three pegmatite mines around the world that can produce cesium: one is the Tanco mine in Manitoba, the second is the Bitika mine in Zimbabwe and the third is the Sinclair mine in Australia. China controls them all beyond its own borders. Tanco and Bitiki no longer produce, but the Sinomine Resources Group keeps all of its cesium ore stocks.
There are a total of 16 metals that are critical to high-tech industries, military applications, and telecommunications – and China controls everyone’s supply because it controls 96% of production.
This includes cesium, for which China has an inventory monopoly, no longer really produce mines, and the United States no longer have any, leaving North America’s only hope in Canada.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Ontario’s promise“data-reactid =” 46 “>Ontario’s promise
Power Metals discovered the pegmatite in West Joe Dyke in August 2018 and intersected high-grade cesium mineralization in six holes when it targeted lithium instead.
Dr. Julie Selway, a key geologist for the Ontario Geological Survey during the tantalum boom in the early 2000s and now vice president of exploration at Power Metals, says the three properties the company is drilling are said to have found similar to the strategically important Sinclair Mine in Sinclair Mine Australia.
“They ship their resources, which they say contain more than 10% cesium oxide, and ours have some that contain between 12% and 14% cesium oxide,” said Selway, one of the world’s most respected pegmatite experts. -told Oilprice.com.
Power Metals intersected cesium (Cs) mineralization in 6 holes at West Joe Dyke with “exceptionally high quality” Li and Ta intervals. They also found Cs mineralization in the core in the first new dike below the main dike and in the core in the northeast dike.
Power Metals announced its exploration plans on February 20 and will begin stripping and channel sampling from West Joe Dyke in the second quarter of this year. Then they will expose, investigate and investigate the cesium mineralization on surface outcrops and try to find more cesium-bearing pegmatite dikes nearby.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This is a great opportunity for Beijing after the Wall Street Journalhas tried to manipulate the market so that critical metals like cesium are cheaper in China than outside the country. This caused some large manufacturers and tech industries to settle in China, where they could get supplies at a lower cost. “data-reactid =” 59 “> This is a great opportunity for unique Beijing, which according to the Wall Street Journalhas tried to manipulate the market so that critical metals like cesium are cheaper in China than outside the country. This caused some large manufacturers and tech industries to settle in China, where they could get supplies at a lower cost.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you were not familiar with cesium before, you will be soon because it will make a difference in the war for global technological dominance, and the front line of defense could be Ontario, where a junior researcher may be sitting in one of the few commercial deposits that China doesn't have.
Other companies that rely heavily on critical metals:
Teck Resources (NYSE: TECK, TSX: TECK)“data-reactid =” 60 “> If you weren’t familiar with cesium before, you will soon be, because it will make a difference in the war for global technological dominance, and the front line of defense could ultimately be Ontario, where a junior researcher may be in one of the few commercial-sized deposits that China does not control.
Other companies that rely heavily on critical metals:
Teck Resources (NYSE: TECK, TSX: TECK)
Teck could be one of the most diversified miners with a broad portfolio of copper, zinc, energy, gold, silver and molybdenum plants. Free cash flow and lower volatility prospects for base metals combined with a possible breakthrough in the trade war could drive the stock higher in the second half of this year.
Teck’s share price has stabilized over the past year and many investment banks now see the stock as undervalued. Low Canadian crude oil prices and disappointing base metal prices weighed on fourth-quarter earnings.
Despite its difficulties, Teck Resources recently received a favorable investment rating from Fitch and Moody’s and is likely to benefit from its improved score. “Investment grade ratings are very important to us and confirm the company’s strong financial position,” said Don Lindsay, President and CEO. “We are very happy about this second upgrade of our credit rating.”
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Turquoise Hill Resources (NYSE: TRQ, TSX: TRQ)“data-reactid =” 64 “>Turquoise Hill Resources (NYSE: TRQ, TSX: TRQ)
Turqouise is a Canadian mid-cap mineral exploration and development company headquartered in Vancouver, British Columbia. The focus is on the Pacific region, where several large mines are currently being developed.
The company mines a number of diversified metals / minerals including coal, gold, copper, molybdenum, silver, rhenium, uranium, lead and zinc. One of the strengths of the turquoise hill is its good relationship with the mining giant Rio Tinto.
Turquoise’s share price dropped last year, and the successful development of its world-class Oyu Tolgoi project in Mongolia is paramount to this miner’s future.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Pretium Resources (NYSE: PVG, TSX: PVG)“data-reactid =” 68 “>Pretium Resources (NYSE: PVG, TSX: PVG)
The impressive Canadian company is engaged in the acquisition, exploration and development of precious metal resources in America. Pretium has an impressive portfolio, and if you can catch the stock while the price is right, there may be a great chance of an upward trend. In addition, construction and engineering activities are progressing at its top location, and commercial production is planned for this year.
With the diversity of Pretium’s assets, this mining giant is a key player in the Canadian resource space. Investors know something good when they see it and have definitely taken note of this company’s ambitious and future-oriented drive.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Magna International (NYSE: MGA, TSX: MG)“data-reactid =” 71 “>Magna International (NYSE: MGA, TSX: MG)
Magna, headquartered in Aurora, Ontario, is a global automotive supplier that is brave and innovative – and definitely focused on the obvious future – clean transportation. A great catalyst is the development of a combined electric / hydrogen vehicle – an EV (FCREEV) with an expanded range of fuel cells. It will not (at least for the time being) produce it, but plans to use the model to demonstrate its technical and design capabilities and to manufacture elements of the electric powertrain and contract manufacturing. It is insightful, foresighted and intelligent for the shareholders.
<p class = "Artboard-Atom Artboard-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Agnico Eagle Mines Ltd. (NYSE: AEM, TSX: AEM)“data-reactid =” 73 “>Agnico Eagle Mines Ltd. (NYSE: AEM, TSX: AEM)
Canadian gold producer Agnico Eagle Mines is a particularly notable company for investors. Why? Between 1991 and 2010, the company paid dividends each year. With offices in Quebec, Mexico and Finland, the company also participates in exploration activities in Europe, Latin America and the United States.
<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While Agnico mainly focuses on gold, it did this List because it's a prime example of sustainability and environmental awareness, and that means that everything in a world is quickly turning away from traditional mining.
By. Charles Kennedy
**IMPORTANT! By reading our content, you expressly agree to the following. PLEASE READ CAREFULLY ** “data-reactid =” 75 “> While Agnico focuses primarily on gold, it has created this list because it is a prime example of sustainability and environmental awareness, which means that everything in a world is changing quickly averting traditional mining.
By. Charles Kennedy
**IMPORTANT! By reading our content, you expressly agree to the following. PLEASE READ CAREFULLY **
This press release contains forward-looking information that is subject to a number of risks and uncertainties, as well as other factors that may cause actual events or results to differ from those projected in the forward-looking statements. One of the forward-looking statements in this press release is that future cesium prices will remain at their expected levels. that PWM can fulfill all of its obligations to maintain its properties; that PWM’s property can successfully mine commercial amounts of cesium; It is hoped that the three properties the company is drilling will have similar finds to the strategically important Sinclair mine in Australia. that occurrences and indications of a commercial size deposit become reality; that high levels found in samples indicate high grade deposition; and that PWM will be able to execute its business plans. These forward-looking statements are subject to a number of risks and uncertainties, as well as other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could alter these statements or prevent them from materializing include the fact that aspects or the overall development of the property may not be successful, the degradation of cesium may not be cost-effective, the price of cesium may not remain high and it may never will be profitable to break down cesium; PWM may not collect enough funds to carry out its plans, changing the cost of mining and processing. increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data, which can change with more detailed information or tests; Potential assumptions about process methods and mineral recovery based on limited test work with further test work may not be feasible. Competitors can offer cheaper cesium; A higher production of cesium could lower the price. Alternatives could be found for cesium; the availability of labor, equipment and markets for the manufactured products; and despite the currently expected feasibility of his projects, that the minerals on their properties cannot be mined economically or that the necessary permits for the construction and operation of the planned mines cannot be obtained. The forward-looking information contained herein is as of the date of this document and the company assumes no responsibility to update or revise this information to reflect new events or circumstances unless required by law.
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