Power Metal updates on Silver Peak drilling progress (POW)

Power Metal Resources (LSE:POW) has said that the drilling of its Silver Peak project in British Columbia, Canada, is on schedule to begin before the end of the week.

The firm plans to complete an initial 500m confirmatory diamond core drill programme at the historically-producing property to test the Victoria vein.

And in a Friday update, it announced that its drilling contractor has now mobilised the drilling rig, bulldozer and ancillary equipment from northern British Columbia to the local town of Hope where Silver Peak is based. The drilling rig and support equipment is from being moved from Hope up the valley to the first Silver Peak drill pad with a view to commencing diamond core drilling before Monday.

Paul Johnson Chief Executive Officer of Power Metal Resources added: "Following the logistics involved with shipping the drilling rig and equipment from northern British Columbia to the local town of Hope and finishing the final access from the road head to the drill pads, the team is mobilising up the valley and orientating the drill rig ready to commence the first hole during the course of today.

This is an exciting time for the Power Metal team and our partners as we launch our first silver focused drill programme. We are targeting the Victoria Vein where Power Metal due diligence sampling returned bonanza silver grades (up to 480 troy oz/tonne) with significant copper and lead grades. The information which will be secured from this drilling programme will be key to directing the next development steps for the project."

The Silver Peak Project consists of a portfolio of mineral claims over a system of high grade, intrusion related, polymetallic silver, lead, zince, and copper. The area also contains the historical Eureka-Victoria Silver Mine, the first Crown-granted mineral property in British Columbia.

Power Metal announced the exercise of an option agreement giving it the right to earn-in to a 30% interest in the Silver Peak project in September following a period of due diligence.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

 

Global Energy Metals in pole position for worldwide energy storage shift (GEMC)

Global Energy Metals (TSXV:GEMC) is the leading vanguard for investors to gain exposure to a ground-breaking shift towards electrification and battery storage, the company highlighted in a recent interview. 

The firm has been positioning for strength throughout the opportunities ahead in recent months. A 10-for-1 share consolidation to clean up its corporate structure completed in August 2020, while a “small but meaningful fully oversubscribed private placement” raised $659,000 in September 2020.

The proceeds were used to acquire an 85% interest in two strategically-important cobalt, copper and nickel projects, Lovelock and Treasure Box in Nevada. 

Speaking to Arne Gulstane, head of company services for the TSX stock exchange, CEO Mitchell Smith laid out the investment case for GEMC today. 

Climate neutrality and the supply exposure to the core minerals that are essential to it are very much key to Global Energy Metals,” he said.“And our assets are in some of the world’s safest jurisdictions. That includes Nevada in the USA, Queensland in Australia, and Ontario in Canada. These are really primed for development.”

This point is key: 60% of the world’s supply of cobalt, for example, is currently produced from the Democratic Republic of Congo, a politically unstable nation whose mining sector has repeatedly been accused of using child labour. Amnesty International is among the NGOs that have highlighted the state of affairs, and cobalt mining giants like China’s Huayou Cobalt have now exited the African nation after years of international pressure. 

Following a recent deal with Electric Royalties, GEMC also has equity stakes in other key battery metal resource companies to complement its main focus. “It really increases our exposure to the EV battery and energy storage markets,” said Smith.“This is a theme we’re going to explore as we broaden our exposure to this growing sector.” 

Near-term catalysts

The political will to protect and expand the US battery metals sector is now turning in GEMC’s favour. 

On 30 September President Trump signed an executive order to spur domestic production of critical battery and rare earth metals. According to the order, 35 minerals are now registered as “essential to the economic and national security of the United States”, have supply chains that are too focused on imports, and also serve “an essential function, the absence of which would have significant consequences for our economy [and] national security.”

This very public prioritization is key to the future of the sector and puts GEMC in prime position, Smith noted, saying: “This really provides new pathways for greater government support for critical mineral mining.”

It’s noteworthy in that there has been no other US administration since the Second World War that’s put forward such an aggressive set of policies aimed at providing financial and other assistance to the mining and processing of so many critical and strategic metals,” he added.

With the weight of the US government now at its back, GEMC’s Nevada expansion is looking like a very important move.

Global changes

As readers will no doubt be aware, the world is undergoing a wholesale shift away from fossil fuels and towards electromobility, whether that’s in electric cars, electric trucks or e-scooters. 

Sales to private citizens make up one portion of the market, but there is a potentially far more significant change underway in commercial freight, supply chain, government municipal projects, delivery and courier services, public transport, and industrial machinery. 

With this in mind, it’s clear that the electrification of the world is only just beginning. Regardless, the impact on companies producing non-renewable fuels for vehicles is already being seen.

British supermajors BP and Royal Dutch Shell are the canaries in the coalmine for the oil industry. Both made painful dividend cuts this summer, in the case of Shell, its first since the end of the Second World War. And BP in particular surprised markets over the summer with a gloomy forecast for its key commodities, writing down the value of its oil assets by £14 billion. Spending on oil and gas production would fall 40% over the next decade, the company said, while renewables investment would rise to a minimum of $5 billion a year. Market analysts called the transformation strategy major, positive, thoughtful and largely unexpected”.

But GEMC and its early investors are the ones who saw this shift coming. 

Supporting this wholesale change is the new development of mass, city-sized energy storage facilities across the globe. Tesla is the most obvious case, with its numerous Gigafactories. But there are far-less visible and customer-facing companies at work. 

For example, LS Power has just brought its 250MW Gateway project online in San Diego, California, with some 67% higher output than the world’ previous biggest battery storage project, Hornsdale Power’s 150MW capacity operation in Australia. 

Ever more and higher-rated plants are in construction now in a bid to provide the infrastructure for this new utility segment. 

That’s why the key metals needed to create these giant battery storage projects are in such high demand. 

As early adopters to the battery metal sector with proven track records we formed this company to provide our investors exposure to what is now becoming a mega-trend,” said Smith.

Author: Mark Sheridan

 

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

 




Power Metal Resources signs contract to kick off drilling at Silver Peak (POW)

Power Metal Resources (LSE:POW) has signed up with a Canadian specialist drill company for the next phase of its promising Silver Peak exploration. 

The programme for 500m of diamond core drilling of the Victoria Vein is expected to last for two weeks, in advance of winter conditions on site. 

The AIM-listed explorer confirmed bonanza-grade silver at the British Columbia project last month after it hit on a series of “exceptionally high” silver assay samples.

Grades from two 0.5m-long surface channel samples were reported to be as high as 10,718 g/t and 14,937 g/t.

Also contained in the same vein were samples of significant copper and lead grades reaching 2.14 % copper and 2.99 % lead, as well as 3.05 % copper and 11.95% lead. 

It’s here where Power Metal will conduct its first drilling operation. 

Drilling will start from two pads using an NQ size drilling bit for a 48mm core sample. Then half core samples will be sent to an accredited independent lab for analysis. 

Silver Peak marks a significant expansion into North America for Power Metal, at a time when silver spot prices are breaching seven-year highs. 

The silver price has climbed more than 100% since the March stock market crash, hitting $25/oz. And as a proportion of the gold price the precious metal still remains fundamentally undervalued.

Silver is a key component in the semiconductor chips that power almost all modern mobile and computing devices, as well as a critical element for building solar panels because of its exceptional thermal and electrical conductivity. 

CEO Paul Johnson praised his Canadian partners for putting the company in a position to undertake the work before winter weather closes in. 

He said: “The expeditious work undertaken has given us an opportunity to assess this unique high-grade silver project through drilling, far earlier than we initially thought possible."

The team in-country are now focused on mobilisation and commencement of drilling and we are naturally eager to see the outcome of this programme, given the results we achieved from the sampling programme recently announced.

On 14 September Johnson executed the option for a 30% earn-in of the Silver Peak project. 

Silver Peak consists of a wide portfolio of claims spread across 62km2 of a high-grade system of polymetallic silver-lead-zinc-copper veins, part of the historic Eureka-Victoria Silver Mine.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Ariana Resources announces Q3 preliminary production results (AAU)

Ariana Resources (LSE:AAU), the AIM-listed exploration and development company operating in Europe, disclosed better-than-expected preliminary production results for the quarter ended 30 September 2020 for its Kiziltepe project in Turkey. Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with Proccea Construction, in which Ariana owns 50% through its shareholding in Zenit Madencilik San. ve Tic. A.S.

Total gold production in the third-quarter of 2020 reached 5,125 ounces, which is an increase from 4,679 ounces in the previous quarter. The average metallurgical recovery of gold for the quarter remains high at 94.2%. The quarterly production increase reflects increased tons processed that more than offset the impacts of lower average grades.

As with the previous quarter, the Kiziltepe operation continued to demonstrate stable performance despite disruptions caused by the COVID-19 pandemic. “Material movements remain very high, while process plant throughput remains well above average, setting yet another record for the operation; the mill reached an annualised throughput rate of almost 230,000 tonnes per annum which represents an increase of over 53% above the feasibility designed rate.” Dr. Kerim Sener, Managing Director, said in a statement.

Notably, the company had to shift some of its operations in the second quarter owing to pandemic induced restrictions. Because production from the company’s highest-grade pit, Arzu South, came to a close during August, production had to shift entirely to the Arzu North and Derya pits. In the meantime, the Kiziltepe operation was able to maintain a stockpile of over 160,000 tonnes, sufficient to cover about ten months of mill feed at average throughput rates.

As a result of the consistent performance in the past two quarters, the present moment is opportune for a proposed mill expansion. The planned development will provide for an increase in throughput to 400,000 to 500,000 tonnes per annum.

There are additional plans for further development of the Arzu North area in the next quarter. This project is yielding substantially more ore tonnage than modelled previously. In fact, despite the expected reduction in grade, this increased tonnage coupled with continued high mill throughput will ensure output is maintained at the highest possible levels.

Ariana Resources’ Q3 production results were in part driven by the increase in demand for gold. Gold prices have gained 25% so far this year, primarily fueled by the global pandemic. Silver prices have also climbed 34% year to date.

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1.5 million ounces of gold.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

Author: Galina Mikova

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Global Energy Metals widens the net to maximise battery metals exposure for investors (GEMC)

Global Energy Metals (TSX.V) has widened its scope to maximise its exposure to the rapidly-growing battery metals sector.

Speaking exclusively to MiningMaven, the Canadian explorer and developer’s chief executive Mitchell Smith said that the trend toward green technology is accelerating at a faster pace than ever. And the biggest driver by far is the electric vehicle (“EV”) boom.

Pick any forecast, and it will paint a picture of a not-too-distant future where roads around the world are lined with these fossil-fuel-free automobiles. For example, Bloomberg New Energy Finance expects 500 million EVs to be in use by 2040. Even OPEC foresees a global fleet of roughly 320 million of the vehicles by this point.

But to get to this stage, a lot of money needs to be spent.

The UK’s RhoMotion recently suggested that global investment in the EV supply chain will be well more than USD$1 trillion. Meanwhile, Bloomberg expects automakers to invest some US$300 billion over the next five to ten years on EV development and production.

A major part of this expense will arise from the purchase of the raw materials that are needed to create these EVs. And digging even deeper, the most sought-after part of this will be metals like nickel, cobalt, and copper used to create the electric batteries that power these automobiles.

Currently, there is an over-reliance on unstable, third-world jurisdictions when it comes to sourcing these battery metals.

Take cobalt as an example.

This metal is critical to many EV batteries. However, its supply is often limited and disrupted as a result of a considerable over-reliance on mining in DRC – an African country rife with political instability and human rights violations.

The dire need for reliable sources of battery metals in safe, pro-mining jurisdictions as the EV revolution continues to increase is becoming increasingly apparent.

As Smith put it to us: “Supply chains need to be diversified into jurisdictionally safe parts of the world. Places like Australia, or like North America, or parts of Europe that have materials that can be produced. We cannot over-rely on one area, especially one that isn’t stable.”

Today, the companies and people in power are starting to take action.

Global carmakers from early-stage startups to automobile giants like Volkswagen, Ford, BYD, Toyota, and Tesla are all beginning to lock in supplies of raw materials needed to produce their lithium-ion batteries. Meanwhile, first-world countries are placing more and more strategic importance on controlling and building a shorter, localized supply chain of battery minerals.

Look at the U.S and Canada as examples.

The governments of both countries have placed several minerals deemed essential to the growth of the battery metals as critical and are working together to develop and implement a critical minerals strategy.

At the end of September, President Trump even put into effect an Executive Order requiring the Secretary of the Interior to identify critical minerals and making it policy to reduce US vulnerability around critical mineral supply disruptions.

“A strong America cannot be dependent on imports from foreign adversaries for the critical minerals that are increasingly necessary to maintain our economic and military strength in the 21st century,” he said at the time.

This, Smith tells us, is exactly where Global Energy is positioning itself.

“We are true believers in electrification, and we think that it's one of the biggest investment opportunities of the generation. We want to be here to be a part of that in the biggest way possible, and to be able to maximize that exposure. Our focus is on the supply chain for battery metals like cobalt, nickel, and copper because that is really the foundation upon which this path to electrification and new energy storage is based.”

In the past few months, the firm has taken two major steps to maximise its exposure to battery metals and the need for simple and safe supply chains in first-world jurisdiction.

First, in July, the company announced the sale of a portfolio of royalty interests on its Australian cobalt assets to Electric Royalties in exchange for a stake in the business.

In doing so, it retains exposure to the enormous potential on offer at its Millenium Cobalt Project and two neighbouring exploration-stage cobalt assets in Mt.Isa. However, the firm and its investors also gain exposure to Electric Royalties’ strong and diversified energy mineral asset royalty portfolio.

“Electric Royalties has a much wider, diverse portfolio of assets that we also get added benefit from including lithium, vanadium, manganese, and graphite. These will all benefit from the electrification trend, so I think that having that exposure is really important,” Smith tells us.

A map of Global Energy's portfolio of projects around the world

Second, earlier this week, Global Energy announced that it had established a new wholly-owned U.S subsidiary called U.S Battery Metals Corporation.

This gives the company a strong presence in the country at a time when the sourcing of a localized critical battery metals supply chain has become essential to the future of the EV industry and is on the forefront of national, political, and economic agendas.

Global Energy’s first port of call was to place its Lovelock Mine and Treasure Box projects into this new vehicle. The firm recently increased its interest in these two highly prospective, Nevada-based exploration properties to 85% after work confirmed their prospectivity for nickel, copper, and cobalt.

“This increased stake further establishes our very strong footprint in Nevada, which is one of the world's best jurisdictions in which to do mining. It really gives us a chance to build on historic work, and prospective work we have already one to unlock some value through exploration,” adds Smith.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance