Why Graphite Matters
Why Graphite Matters
– Momentum Public Relations –
Graphite. Sure it’s related to the diamond family, but it is decidedly less celebrated than the shimmering jewel that we associate with love, weddings, songs, and extravagant jewelry. Some of the commercially mined graphite is used for pedestrian products like pencils. The “lead” filling in a pencil is, in fact, composed of a mixture of graphite and clay. Based on application, the electrode industry held the largest share of the overall US and the world markets for graphite in 2014 (see chart below).
Some of the major drivers behind the growing worldwide demand for graphite has been attributed to the Asia-Pacific region’s increased demand for steel. Graphite’s main function, however, is as a lubricant. It has many electrical uses, primarily because it is the only common nonmetal that is a very efficient conductor of electricity.
Fuel Cell Technology Requires Supply of Graphite
Demand for graphite is expected to rise as electric vehicles, and lithium battery technology are adopted. Fuel cells, nuclear and solar power also have the potential to create significant incremental demand growth. Interestingly, there is roughly 10-20 times more graphite in a lithium-ion battery than there is lithium.
Graphite doesn’t get a lot of attention, but it showed up the headlines in 2015 when Tesla Motors began building its lithium-ion battery “gigafactory” in Nevada. When fully on-stream in 2020, the gigafactory could double the world supply of lithium-ion batteries, mostly for the automotive market but also for residential stationary power packs. By 2020, Tesla is planning to make 35GWh of lithium-ion batteries a year. Some market commentators have speculated that the potential new market from Tesla alone will require at least 50,000 tonnes per year of graphite.
Today, world natural graphite production is split almost equally between flake and amorphous, but the proportion of flake is expected in increase by 2020. This is providing opportunities for investors in key mining operations that are expected to produce commercial quantities of flake natural graphite.
The global graphite market was valued at over 15 billion USD in 2014, and it is expected to grow at a compounded annual growth rate of four percent from 2016 – 2021. Synthetic graphite holds the largest market share with greater than 70 percent share. However, demand is rising rapidly for flake natural graphite. Global consumption of natural graphite products has more than doubled in the past ten years, and the trend is expected to continue.
Price Recovery Underlines Opportunities for Investment in New Mines
Average prices of flake natural graphite have fallen almost continuously from the sustained peak seen between mid-2011 and early 2012. The decline in pricing resulted from reduced demand from steel refractories and slower economic growth in China. As prices begin to recover through 2016, companies developing new graphite projects have become increasingly interesting for investors who are looking at long-term growth opportunities.
China is the world leader in graphite with a market share of roughly 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. In 2010, South Graphite was set up in Hunan province to take control of 200-250 small, privately-owned mines and bring them under state control. Chinese domination of the market is likely to shift in the medium term as higher technology end uses for graphite require stable supply at reasonable economics. Also, the modernization of Chinese industry is likely to consume most of the higher grade product resulting in limited export availability of flake natural graphite.
Significant new opportunities are arising with the emergence of new uses for flake natural graphite, particularly in North America. Mining companies are exploring vast flake resources in places like Mozambique. However, political stability, security and transportation costs are a factor in many developing countries. As a consequence, high-quality vein graphite resources in North America are being actively explored. Around a quarter of all new capacity could be in Canada, where more than 30 credible flake natural graphite projects are currently being developed.
Nouveau Monde – a Timely Opportunity
One extremely interesting company is a start-up called Nouveau Monde Mining (NOU : TSX Venture). The company is exploring and developing a property in Matawinie, 130 kilometers north of Montreal, Canada. They are in the advanced stages of exploration and are joining forces with other graphite companies to acquire a mill to producing graphite for Lithium-Ion batteries. The company has also received a grant to help fund their operation from the Natural Science and Engineering Research Council of Canada (NSERC). Looking forward, they expect to release the Preliminary Economic Assessment (PEA) during the first half of 2016.
Nouveau Monde’s graphite operation is likely to bring product to market at an opportunistic time. Demand is on the rise and the largest North American graphite producer, Imerys, also located near Montreal, is nearing the end of its estimated resource. This means buyers for graphite will need to find a new supplier and it makes sense to source product from a well-known and reliable mining district.
Growth in demand for batteries will drive the market
The emerging technology of battery driven automobiles and battery technologies in homes may eventually provide a humble mineral like graphite with the status and respect of its cousin, the diamond. After all, existing world demand for graphite in all batteries is estimated to total 125,000 tonnes at present. But this is sure to double, triple, quadruple. Growth almost always produces investment opportunities for those who seize the best opportunities. Could graphite someday become a “girl’s best friend?” Stay tuned!
- Published in Blog
Supply Shortage is Driving Zinc Prices
Supply Shortage: Zinc Prices on the Rise – Mining Opportunities Created
– Momentum Public Relations –
The recent events surrounding the Brexit have been challenging for some base metals on the London Metal exchange. The three-month copper contract for example was down 3.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}.
On the other hand, all base metals have not been affected the same way. Zinc is proving to be an outlier among other base metals. Since the beginning of the year, the price for this base metal gained more than 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The metal mainly used for galvanizing steel and iron has steadily increased its value since early this year and its price even reached its highest level since July 15 2015.
Unlike copper and aluminum, zinc doesn’t suffer from an oversupply. According to the International Lead and Zinc Study Group, global demand for zinc was around 14 million tonnes in April, while total world stocks were around 1.5 million tonnes. It is important to note that these prices have been driven by investors buying in lieu of any change in the fundamentals. According to Robin Bhar, Head of Metals Research at Societe Generale,
“We can expect some further gradual gains admittedly some of the gains have come too quickly because of being based on some buying speculative activity jumping on the bandwagon. So we should expect maybe prices to maybe level off. I think in the fourth quarter when we should see physical demand picking up after the slow summer period, we could see some further gains particularly in zinc and nickel because of an ongoing supply constraints. We are seeing some closures of zinc mines and in nickel we have the threat of mine closures in the Philippines to add to the already existing export ban by Indonesia. So, we would expect further modular gain certainly in the last quarter of this year.”
Canada’s zinc output has been on the decline for the last few years. This decline can be explained by the closure of the Brunswick #12 mine in 2013. This mine was the largest deposit in the Bathurst area and was one of the largest underground zinc mines in the world up until its resources were depleted. The success of Brunswick #12 pushed several mining companies to explore the region in order to take advantage of high level of resources available. One extremely interesting company in the region is Puma exploration Inc. (TSX.V). The company is exploring and developing multiple properties (in red) in New Brunswick, only a couple kilometers north of Brunswick #12 Mine. With demand on the rise and Trevali starting commercial production at its Caribou mine, Puma Exploration is a great opportunity for investors who want to take advantage of an improving zinc market.
For more information on Puma Exploration (PUM:tsxv) visit their website at www.explorationpuma.com/
You can also read the following update released by Puma on July 19th, 2016.
- Published in Blog, Mining, Puma Exploration
Bogner Report: Equitas (EQT:tsxv) uncovers high-grade gold at surface
Bogner Report: Equitas uncovers high-grade gold at surface
– Momentum Public Relations – July 6, 2016
Stephan Bogner |
This is significant when considering that most gold open pits worldwide operate with average grades between 0.7 g/t and 2 g/t. The significance of today’s results are perfectly summed up by VP Exploration, Everett Makela: “All eight of the intersections achieved to date are worthy of follow-up, as the saprolite can be directly excavated on surface and trucked to a processing plant, without the need for drilling and blasting.”
The Baldo Zone is already in moderate sluice-box production, set to expand significantly with plans for a new gravity and CIL processing plant. The current exploration program has been designed to increase resources and provide further information to support open pit development. If today’s results are any indication, the best could be yet to come: 31 HQ holes have been recently drilled with assays pending. As a result of today’s assays, management has announced that they intend to expand the current drilling program.
Figure 1: Baldo Target at the Cajueiro Project
Today’s initial results from Equitas’ exploration program on its newly acquired Cajueiro Property are surprisingly high-grade, or as Equitas put it: “The program has significantly changed the interpretation of prospective altered and mineralized structures in the target area, as shown in Figure 2 below.”
To date, 1,680 m of trenching in 9 trenches and 31 HQ diamond drill holes totaling 1,585 m (51 m per hole on average) have been completed in the Baldo target area. Assays from 24 trench samples are still pending. Assays from all 31 drill holes are pending. More work, including diamond drilling, auger drilling and trenching, is set to commence. Thus, an increased flow of updates from the activities, including assays, is expected over the short-term, potentially hand in hand with a further appreciation of gold prices.
Prospecting for alluvials at the Baldo Zone in June 2016
Chris Harris, President and CEO of Equitas, said today: “We are very encouraged by the strong trenching results from the Baldo area, with results ranging from 1.16 g/t Au up to 24.26 g/t Au. This provides good support for the Company’s focus on fast track gold production and potential for further upgrading of the resource. The team has completed the initial exploration programme on time, and on budget, and with these exciting results we have decided to extend our drilling programme. We are well positioned for further news with all of our drilling results yet to come in.”
Everett Makela, VP Exploration, added: “Results so far have confirmed our expectation that the oxidized saprolite component of the bedrock mineralization at Baldo is host to significant gold concentrations. All eight of the intersections achieved to date are worthy of follow-up, as the saprolite can be directly excavated on surface and trucked to a processing plant, without the need for drilling and blasting. The high grade intervals in trenches TCBL_0003 and TCBL_0004 appear to represent a corresponding increase in structural complexity that adds an exciting new element to the Baldo environment. I would also emphasize that a majority of the assay results have yet to be received, so there is considerable new information still to come from this exploration program.”
Interestingly, the goal of the initial exploration program was to prove the oxide potential of the Baldo deposit as, until now, only the alluvium has been mined sporadically. Previous mapping and surface sampling has revealed the Baldo area as host to widespread gold mineralization in the saprolite.
To date, 3 additional target signatures similar to the current focus area have been identified. Targets will be reviewed in detail and ranked in preparation for upcoming exploration programs.
The trenching program targeted gold mineralization in the near-surface saprolite (the oxidized equivalent of hydrothermally altered bedrock structures hosting gold mineralization with associated pyrite and quartz veining). Assays received to date, for trenches #1 to #5 inclusive a portion of #6 and #7, have identified 8 discrete intervals of interest, as listed in the table below.
Figure 2: Plan view of Baldo target area with new geological interpretation, trenches, drill hole traces and current intersections of interest
Observations of the high grade areas in trenches #3 and #4 indicate that this mineralization and associated alteration may have been focused by a combination of NE and EW deformation events. Further delineation of the high-grade intervals is in progress with diamond drilling, auger drilling and trench sampling. Final results and an updated structural interpretation will be announced when completed. It is anticipated that a follow-up program of resource definition and further exploration will commence once all results have been received and incorporated into the model.
Fast Track to Gold Production
Last month, Equitas signed a long term funding term sheet for $6million USD, $5million a revolving gold prepay and a $1million equity financing from the well reputed private equity fund Cartesian Capital Group (founders of AIG Capital). Cartesian showed great long term support as their equity portion is locked up for 18 months. Hence, this funding partnership gives Equitas the ability to grow their gold production as rapidly as they choose to. With the revolving factor in place this could give Equitas the opportunity of possibly acquiring other near-term gold projects nearby.
This year they plan on constructing a gravity and CIL plant, and sometime next year they plan to mutiply these plants on other zones of the Cajueiro project. The processing plants should increase gold output significantly and could lift the company to a strong/positive cash-flow position. In Equitas’ corporate presentation they state that the first gravity plant will put the company at a self-sustaining position. The production from the CIL plant is projected to put the company into a cash-flow position where they can then grow organically.
With assays from 31 drill holes pending, metallurgical results from a 100kg sample of gold-mineralized saprolite; additional drilling and trenching, the exciting times are just getting started for Equitas and its shareholders.
Core from sulphide-oxide transition zone, Baldo June 2016
Richard Crew and VP Exploration Everett Makela at Layne drill rig, Baldo June 2016
Everett Makela reviews Baldo core, June 2016
As noted in “Ready to make money as an incrementally growing gold miner” (April 27, 2016):
The gravity plant is expected to cost $300,000 USD and has a general production capacity of roughly 3,000 ounces (“oz”) of gold annually. Hence with gold selling for $1,200 USD, Equitas could generate $300,000 USD monthly. The annual production capacity of a CIL plant (~$2 million USD) is roughly between 10,000 and 12,000 oz of gold. Potentially, 1 CIL plant and 1-2 gravity plants could be added each year for the next 4 years, resulting in an annual output of >60,000 oz. This significant production growth potential over the next few years is providing shareholders with an exciting opportunity.
According to an interview between Chris Parry and Equitas’ CEO Chris Harris, Brazil now offers tremendous opportunities, especially for such low-cost, close to surface, open pit gold deposits amenable for rapid development and expansion.For example, Equitas’ drilling costs currently stand at less than $100 USD per meter (a fraction of the costs a few years ago or when compared to North America), whereas the capital costs for the gravity plant are said to have fallen by more than 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} over the last year. Such cost compressions in Brazil will result in much faster payback periods and higher profitability.
Water is readily available from a nearby river, whereas a new hydro dam will supply the area with cheap electricity within the next 2 years, which may drive down the mine’s operating costs significantly and potentially make this area a world-class mining district, in which Equitas now controls major land holdings.The recently secured funding could partly be used for new acquisition opportunities in Brazil.Equitas’ team in Brazil is highly experienced in gold exploration, development and mining, with a strong track-record in South America including Brazil.
Trench reclamation at the Baldo Zone in June 2016
Major milestones ahead
First, Equitas will acquire and install a gravity plant to process the saprolite mineralization from the Baldo Zone. Once permits and the necessary supply agreements are in hand, the second phase of the plan envisions the construction of a CIL plant between the Baldo and Crente Zones. These 2 zones are less than 1 km apart. Initial metallurgical test work indicates that in excess of 85{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} gold recovery can be achieved through gravity separation and cyanide leaching.
The 3rd phase would be to increase production Cajueiro under a full production licence. Rockstone expects that this could be funded through operating cash-flows. This could mean that no further equity dilution is targeted. To achieve this, the plan is to put the Baldo and Crente Zones into dual production through CIL and gravity plants.While Baldo already produces gold with a “modest” rate, Crente is set to be tied into the Baldo production.
Other target areas on Cajueiro are also highly prospective, with previous artisanal mining activity across the property.
The Juruena gold belt has historic artisanal regional gold production of 7-10 million oz and its considered a recognized mining friendly jurisdiction.Several major miners have an active presence (e.g. Vale, Anglo, BHP Billiton, Anglogold, Kinross). Brazil owns the 7th largest gold reserves globally. The country produced >$6.5 billion worth of gold in 2012, yet a large proportion of the country is under-explored and as such is offering a distinguished opportunity through the use of modern exploration and mining technologies. Brazil is ranked 3/12 of its regional countries for doing good business. Brazil is the world’s 6th largest economy and 5th largest by population. It is rated investment grade by both S&P and Moody’s. Net inflows of foreign investment have increased by a factor of >5 (from $12 billion in 2003 to $67 billion in 2011). Brazilian mining law includes a 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} royalty fee on gold, transparent title and highly competitive tax rates. Brazil’s economy has been on a downtrend for a handful of years.
Rockstone believes this all makes for a very rare and exceptional opportunity to rapidly develop, grow and acquire additional projects within Central Brazil.
Everett Makela examining trench excavation in June 2016
Trenching at the Baldo Zone in June 2016
Equitas Resources Corp.’s objective is to create shareholder value through new mineral discoveries and through expansion of current gold mining operations. With a strong management team in place and excellent strategic partners to support the company‘s success, Equitas is primed to become a cashflow positive company while proving substantial blue-sky resource potential.
Equitas Resources Corp.
1450 – 789 W Pender Street
Vancouver, BC, Canada V6C 1H2
Phone: +1 604 681 1568
Email: skingsley@equitasresources.com
www.equitasresources.com
Shares Issued & Outstanding: 213,819,243
Canadian Symbol (TSX.V): EQT
Current Price: $0.085 CAD (July 5, 2016)
Market Capitalization: $18 million CAD
German Symbol / WKN (Frankfurt): T6UN / A12CWK
Current Price: €0.046 EUR (July 5, 2016)
Market Capitalization: €10 million EUR
Read more at http://www.stockhouse.com/opinion/independent-reports/2016/07/06/bogner-report-equitas-uncovers-high-grade-gold-surface#5h6z37jQ0eXUiwJV.99
- Published in Blog, Business, Equitas Resources, Mining
Equitas Resources Corp. Intersects High Grade Gold Mineralization at the Cajuiero Project
Equitas Resources Corp. Intersects High Grade Gold Mineralization at the Cajuiero Project
– Momentum Public Relations – July 6th, 2016
Equitas Resources Corp. (“Equitas” or the “Company”) (TSXV: EQT) (US: EQTRF) (Frankfurt: T6UN) is pleased to announce the discovery of near-surface, high grade gold mineralization at the Baldo Zone (“Baldo”) of its 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}-owned Cajueiro Gold Project (“Cajueiro”) in Central Brazil.
Major highlights include:
- Initial assay results identify eight intersections of 1.16 g/t Au or greater;
- Two high-grade intervals of 24.26 g/t Au over 2m, and 18.86 g/t Au over 2m;
- A broader separate near-surface interval of 12m @ 1.42 g/t Au;
- The exploration program is being extended with diamond drilling, auger drilling and trenching to further delineate and expand on the intersections achieved to date;
- To date 733 of 757 trench assays have been received, and all drill core results are still outstanding.
Chris Harris, President and CEO of Equitas, said “We are very encouraged by the strong trenching results from the Baldo area, with results ranging from 1.16 g/t Au up to 24.26 g/t Au. This provides good support for the Company’s focus on fast track gold production and potential for further upgrading of the resource. The team has completed the initial exploration programme on time, and on budget, and with these exciting results we have decided to extend our drilling programme. We are well positioned for further news with all of our drilling results yet to come in.”
Exploration Update
To view the graphic in its original size, please click here
Figure 1: Baldo Target at the Cajueiro Project
The exploration program announced on May 26th has been completed on time and within budget. Work completed includes 31 HQ diamond drill holes totaling 1585m, and 1680m of trenching in nine trenches, conducted over the current area of focus within the Baldo Zone of the Cajueiro Project. To date 733 gold assays have been received out of a total of 757 trench samples, standards, blanks and duplicates currently submitted. As well all assays from the diamond drilling are pending. The program has significantly changed the interpretation of prospective altered and mineralized structures in the target area, as shown in Figure 2 below:
To view the graphic in its original size, please click here
Figure 2: Plan view of Baldo target area with new geological interpretation, trenches, drill hole traces and current intersections of interest
The trenching program targeted gold mineralization in near-surface saprolite, the oxidized equivalent of hydrothermally altered bedrock structures hosting gold mineralization with associated pyrite and quartz veining. Assays received to date, for trenches TCBL_0001 to 0005 inclusive, a portion of TCBL_0006, and TCBL_0008, have identified eight discrete intervals of interest, as listed in the table below:
Trench | From (m) | To (m) | Interval (m) | Au g/t |
TCBL_0001 | 47.0 | 49.0 | 2.0 | 1.16 |
TCBL_0001 | 60.0 | 72.0 | 12.0 | 1.40 |
TCBL_0003 | 23.0 | 28.0 | 5.0 | 1.26 |
TCBL_0003 | 167.0 | 171.0 | 4.0 | 2.12 |
TCBL_0003 | 197.0 | 199.0 | 2.0 | 24.26 |
TCBL_0004 | 146.0 | 148.0 | 2.0 | 5.54 |
TCBL_0004 | 173.0 | 175.0 | 2.0 | 18.86 |
TCBL_0006 | 31.0 | 38.0 | 7.0 | 1.57 |
Table 1: > 1 g/t Au intervals achieved to date in saprolite, Baldo Zone – Cajueiro
Observations of the high grade areas in trenches TCBL_0003 and TCBL_0004 indicate that this mineralization and associated alteration may have been focused by a combination of NE and EW deformation events. Further delineation of the high-grade intervals is in progress with diamond drilling, auger drilling and trench sampling. Final results and an updated structural interpretation will be announced when completed. It is anticipated that a follow-up program of resource definition and further exploration will commence once all results have been received and incorporated into the model.
Commenting on the program results to date, VP Exploration Everett Makela states “Results so far have confirmed our expectation that the oxidized saprolite component of the bedrock mineralization at Baldo is host to significant gold concentrations. All eight of the intersections achieved to date are worthy of follow-up, as the saprolite can be directly excavated on surface and trucked to a processing plant, without the need for drilling and blasting. The high grade intervals in trenches TCBL_0003 and TCBL_0004 appear to represent a corresponding increase in structural complexity that adds an exciting new element to the Baldo environment. I would also emphasize that a majority of the assay results have yet to be received, so there is considerable new information still to come from this exploration program.”
Additional Targets at Baldo
Previous mapping and surface sampling has revealed the Baldo area as host to widespread gold mineralization in the saprolite. To date three additional target signatures similar to the current focus area have been identified. Targets will be reviewed in detail and ranked in preparation for upcoming exploration programs.
Quality Assurance\Quality Control (QA\QC) and Analytical Method
All sample batches include 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} QA\QC samples consisting of blanks, standards and field duplicates or twins, submitted to SGS GEOSOL in Vespasiano, Minas Gerais State, Brazil. Analysis is performed by fire assay with 50g fusion and Atomic Absorption Spectroscopy.
Metallurgical Testing
A 100kg composite sample of gold-mineralized saprolite identified by the program to date has been sent to Testwork Desenvolvimento de Processo Ltda in Nova Lima, Minas Gerais State, Brazil for bench-scale metallurgical testing, including comminution, gravity separation and cyanide leach via bottle roll tests.
Cajueiro Project
The Cajueiro Project is located in Central Brazil within Mato Grosso and Para states. The project encompasses 39,053 hectares and is located 95 kilometers north of the city of Alta Floresta.
The NI 43-101 Technical Report on Resources (Gustavson, 2016) for Cajueiro documents an Indicated Mineral Resource of 8.636 million tonnes containing 214,100 ounces of gold at 0.771 g/t (sulphide bedrock domain); an Inferred Mineral Resource of 9.526 million tonnes containing 203,500 ounces of gold at 0.664 g/t (sulphide bedrock domain), and an Inferred Mineral Resource of 1.374 million tonnes containing 78,400 ounces of gold at 1.775 g/t (oxide saprolite domain).
NI 43-101 Disclosure
Everett Makela, P. Geo., VP Exploration for Equitas Resources Corp., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
- Published in Blog, Equitas Resources, Mining, News Home
China’s Jien Nickel Industry acquire Canadian Lithium Company for 513 million yuan
Jien Nickel Industry: 513 million yuan acquisition of Canadian Lithium miner
June 24, 2016 release night announced that its wholly owned subsidiary “Jean international investment Limited” to establish a wholly-owned subsidiary, 9554661 Canada Inc. and RB Energy Inc., Quebec Lithium Inc. liquidation receiver KSV Kofman Inc. signed an “asset purchase agreement” to acquire Quebec Lithium Inc the main assets of.
- Published in Blog, Fairmont Resources, Mining
Brexit creates Insecurity, Investors seek Opportunities in Gold
Brexit creates Insecurity, Investors seek Opportunities in Gold
– Momentum Public Relations –
Last Thursday, Britain voted to leave the European Union (EU) by a 52 percent to 48 percent margin. Although the long-term consequences of this surprising outcome are still uncertain, the short term effects are already being felt and are going to intensify and it didn’t take too long for Britain’s economy and relations with other European countries to take a big hit.
Brexit is already causing a domino effect. Northern Ireland and Scotland are already discussing about leaving the U.K. to stay in the EU. Meanwhile, countries like France, Italy and the Netherlands are contemplating the idea of following the U.K. and leaving the EU. A divided Europe could be really harmful for America since its economy relies heavily on the export sector. Already agonizing from the slowing growth in Europe, in addition to suffering from a strong dollar against the euro. Brexit is contributing to worsen those effects, particularly with the British pound now hitting its lowest point since 1985. Furthermore, Britain is America’s main channel when it comes to expressing its economic and political will in Europe.
The turbulence abroad has recently pushed the Fed to keep interest rate hikes on hold which could be highly problematic since the Bank of International Settlements mentioned in its annual report that the “persistence of exceptionally low interest rates” contributes to endangering global growth, additionally to low productivity levels and high debt.
All these potential consequences had the effect of creating a sense of panic among investors, which contributed to a disruption of the markets. Even though the panic eased on Monday, it is estimated that more than US$2.08 trillion have been wiped off global equity markets last Friday which represent the biggest daily lost ever recorded.
It is well known that the spot price of gold and the economy are inversely related. Indeed, the economy is based on currency which is “faith based”. When investors lose faith in the markets, they often re-allocate from perceived riskier assets to assets that have tangible value, such as commodities. Gold has always been recognized as the true standard of value across the globe. This could be explained by the fact that gold maintains its value from one country to another and is not subject to the same systematic risk the stock market is. Moreover, the supply of gold is limited which causes it to obey the law of supply and demand.
With the recent events concerning Brexit and the Fed maintaining low interest rates, institutional investors and pension funds are more and more interested in buying gold. This huge rise in the demand has the effect of not only increasing the price of gold but also gold mining companies’ share prices. These companies now benefit from gold prices well above their gross cost of production which could allow many of them to clear their debt and start making money. Although the Brexit had many harmful effects on the market in the past few days, it definitely has a rejuvenating effect on gold companies. These companies now represent a huge potential for investors not only because they act as safe haven investments but also because they could generate huge revenues.
Fairmont Encouraged by Chinese Asset Purchase of Former Lithium Producer RB Energy
Fairmont Encouraged by Chinese Asset Purchase of Former Lithium Producer rb Energy Adjacent to Rome Lithium Property
– Momentum Public Relations – June 22nd, 2016
- Jilin Jien already active in Quebec, following the 2010 acquisition of Canadian Royalties
- Rome Lithium Property acquired by Fairmont Resources less than a month ago
- Historical underground and open pit lithium mine on property adjacent to Rome Lithium Property
Fairmont Resources Inc. (FMR: TSX-V) (“Fairmont”) is encouraged by the Court Approval yesterday of the Asset Purchase Agreement of RB Energy Inc. by Jilin Jien Nickel Industry Co. (“Jilin”).
RB Energy, who once claimed its Quebec mine would produce “the highest-quality lithium carbonate in the world”, was forced to halt operations in October 2014 after failing to complete a much needed financing. Subsequent attempts to raise financing proved to be very difficult due to market conditions at the time for Canadian resource companies. Specifically, Investment Quebec and/or KSV Advisory held discussions with 26 parties regarding the potential sale of RB Energy.
Jilin acquired the Quebec Lithium Mine for an undisclosed amount but it is estimated that approximately $150 – $200 Million in additional capital will be required to take the Lithium project to its production stage.
Michael Dehn, President and CEO Of Fairmont Resources, stated the following regarding the significance of this deal for both the Lithium industry and Fairmont’s Rome Lithium Property “Fairmont is very encouraged by the acquisition of the past producing Quebec Lithium Mine and Mill by Jilin Jien Nickel, as it provides third party validation of Fairmont’s decision last month to option of the Rome Lithium Property, which borders the property acquired by Jilin Jien. Rome added shareholder value at the time of its option and we believe this acquisition of the bordering property will add further near and long term value”.
PROXIMITY OF RB ENERGY MINE TO FAIRMONT’S ROME LITHIUM PROPERTY
The Rome Lithium property is located approximately 60 km north of Val d’Or Quebec. The property is contiguous to the north and south of RB Energy’s Quebec Lithium Mine with a published measured and indicated resources (at a 0.60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O cutoff) of 41,556,000 tonnes at 1.09{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O, and an inferred resource of (at a 0.60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li20 cutoff) of 17,766,000 million tonnes at 1.10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O (RB Energy Press Release of October 11, 2012).
The property is also contiguous to Jourdan Resources Vallee Lithium property that drilled more than 4000m of core in 2011 and intersected more 100 pegmatite and aplite dikes. Jourdan Resources intersected values of up to 1.187{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Li2O over 5.50m (Jourdan Resources Press Release of October 24, 2012).
For additional information on the Rome Lithium Property, please see the press release dated May 26, 2016 on Fairmont Resources website, or via the link: http://fairmontresources.ca/uploads/270.pdf
A map and photos of the Rome Lithium Property can be found here: http://fairmontresources.ca/pdf/Rome{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}20Lithium{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}20Property.pdf
Detailed documentation on the RB Energy transaction are available at:
http://www.rb-e.com/s/Home.asp
http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00007891
http://goo.gl/RE8s31 : First Report of the Receiver dated June 13, 2016
http://goo.gl/2ljb7h : Approval Assignment and Vesting Order dated June 21, 2016
About Fairmont
Fairmont Resources Inc. is a rapidly growing industrial mineral and dimensional stone company trading on the Toronto Venture Exchange symbol FMR.
Fairmont’s Quebec properties cover numerous occurrences of high-grade titaniferous magnetite with vanadium, with the Buttercup property having a permit to quarry dense aggregate. Where these occurrences have been tested they have display exceptional uniformity with respect to grade. Fairmont also controls three quartz/quartzite properties, with the Forestville property having independent end user testing confirming the suitability of quartzite from Forestville for Ferro Silicon production. Fairmont is also in the process of acquiring the assets of Granitos de Badajoz (GRABASA) in Spain which includes 23 quarries and a 40,000 square metre granite finishing facility that has produced finished granite installed across Europe.
Nouveau Monde (NOU:TSX-V) Updates and Invites Shareholders to Press Conference
Nouveau Monde (NOU:TSX-V) Updates and Invites Shareholders to Press Conference
– Momentum Public Relations – June 20th, 2016
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- Published in Blog, Mining, News Home, Nouveau Monde Mining
International Wastewater Systems’ order book hits $80 million for energy-saving technology
International Wastewater Systems’ order book hits $80 million for energy-saving technology
Have you ever thought about the wasted energy that literally goes down the drain every time you use warm/hot water? Well Lynn Mueller has. And now his recently public company, International Wastewater Systems Ltd. (CNSX:IWS) has in the neighbourhood of $80 million in orders from customers around the world for his innovative energy saving technology.
Mueller was previously a farmer who also ran one of the world’s leading manufacturers of thermal heat pumps called Water Furnace. As a result of the experience of moving heat from A to B, he conceived of and invented the two models of thermal heat capture systems that are the company’s products.
The Sharc and the Pirranah systems capture heat energy in sewage and wastewater and return it to any building’s hot water systems for significant savings. How significant?
According to Mueller, “we recover the energy at an efficiency of about 400 to 500 per cent, so for every dollar it costs to run a Shark or a Piranha unit, we recover $4 to $5 worth of energy, and it’s just in the same form.”
IWS’s systems are currently installed and running in everything from a University of British Columbia residential building to a Camden, N.J., wastewater treatment plant. Additional industrial-scale installations are planned for the city of Fier, Albania, and the Australian Wool Testing Authority. The largest Sharc installation is at Borders College in Scotland, serving a student population of 4,500.
The Fier installation will capture heat from the city’s sewage treatment facility and redistribute it to homes throughout the city in a model the company refers to as “district heating.” The plant will extract heat energy from an estimated 30 million litres of sewage per day. Albania currently loses an estimated 160 – 200 million euros per year on its energy program according to World Bank figures, so the motivation to expedite the project is somewhat acute.
That project represents a novel and lucrative business model for IWS with a recurring revenue source. In both Albania and the United Kingdom, subsidies and investment by government are expected to substantially improve the economic viability of installing Sharc systems in institutional and commercial buildings.
The installation at Borders College, for example, was financed with a 4-million pound investment from Equitix and the U.K. Green Investment Bank, an entity created by the U.K. government. The mandate of the U.K. Green Investment Bank is to spearhead the investment of 330 billion euros into the “greening” of the U.K. economy by 2020. Their stated focus is primarily on energy efficiency, waste and bio energy. With the Scottish project, other municipalities throughout the U.K. will have a running demonstration site to enhance understanding of the process.
The Camden, N.J., project was almost completely financed by a clean energy grant, leaving the county to come up with only US$100,000 of the US$1.1-million cost.
International Wastewater Systems constitutes an early development stage opportunity for investors seeking exposure to the developed world’s push to improve energy efficiency wherever possible.
CNN Coverage
Even CNN deemed the company newsworthy, and published coverage of IWS on the network’s financial channel at CNNMoney.com on May 24. “We quickly went from being a local, small company to a worldwide operation. We’ve seen markets around the world demanding the product,” Mueller told CNN reporter Jackie Wattles.
The company anticipates raising capital soon to finance production of more Sharc and Piranha systems to fulfill its backlog of orders.
James West is an investor and the author of the Midas Letter, an investing research report focused on Canadian markets. The views expressed here are his own and are presented for general informational purposes only — they should not be construed as advice to invest in any securities mentioned.
James West and/or associated funds do not own shares in any securities mentioned in this article. For the full Midas Letter disclosure policy, click here. Postmedia and Midas Letter have a revenue sharing arrangement.
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- Published in Blog, Green Technology, International Wastewater Systems, Technology
IWS Featured on Cable Television
IWS Featured on Cable Television
– Momentum Public Relations – June 14th, 2016
International Wastewater Systems Inc. (“IWS” or the “Company”) (CSE:IWS)(FRANKFURT:IWI) is pleased to announce that the Company was selected to be featured in a television commercial that will air on Canadian cable television channels and online properties.
The commercial will be broadcast in Canada on the Business News Network (BNN) and on CBC’s Documentary Channel, as well as online via Thomson Reuters, Stockhouse and Business TV (B-TV).
The commercial includes a 90-second IWS feature with CEO Lynn Mueller, as well as a 15-second clip that will air on Business News Network starting today and through the end of this month. A link to the condensed clip can be viewed here: http://www.b-tv.com/intl-wastewater-commercial/
ON BEHALF OF THE BOARD
Lynn Mueller, Chairman and Chief Executive Officer
About International Wastewater Systems Inc.
International Wastewater Systems Inc. (CSE:IWS)(FRANKFURT:IWI) is a world leader in wastewater heat recovery. IWS systems recycle thermal energy from wastewater, generating the most energy efficient and economical systems for heating, cooling & hot water for commercial, residential and industrial buildings.
- Published in Blog, Energy, Green Technology, International Wastewater Systems, News Home, Technology