Forum Energy Metals

  • CEO Rick Mazur outlines Forum Energy's strategy of diversifying into battery metals space (FMC)

    Article published with kind permission from ValuetheMarkets - Originally published on ValueTheMarkets.com on 4th April 2019

    In today’s podcast ValueTheMarkets talks with President and CEO of Canadian-listed Forum Energy Metals (TSX-V:FMC), Rick Mazur. Historically the company has been focused on uranium assets which it still holds, but last year Forum made two acquisitions, one copper project and one cobalt. Rick Mazur explains more about the company’s strategy of diversifying into the battery metals space while sentiment in the uranium market is still low. Most of the company’s assets are located in Saskatchewan, Canada’s number one rated mining jurisdiction. Forum has a majority interest in seven drill ready uranium projects in the prolific Athabasca Basin and recently completed a successful first pass drill program at its Janice Lake district scale sedimentary copper project located 55km southeast of the Key Lake processing facility. In September, Forum gained a strategic foothold in Idaho’s cobalt belt with the acquisition of the Quartz Gulch exploration property.  

    All opinions expressed are those of ValueTheMarkets and the respective guests unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. Listeners are advised to do their own extensive research before buying shares which, as with all small-cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate.

    Author: Stuart Langelaan

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

    The Author has been paid to produce this piece by the company or companies mentioned above.

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.

     

  • Forum Energy and Orano launch key Fir Island survey ahead of drilling programme (FMC)

    Forum Energy Metals (TSX.V-FMC) has launched a key survey on its Fir Island uranium project in Canada to generate targets for a drill programme early next year.

    The business has contracted Patterson Geophysics to complete a ground IP-resistivity survey at the asset, which is based on the north rim of Saskatchewan’s Athabasca Basin. This will consist of nine lines for approximately 32km targeting the East Channel structure- a major lineament parallel to and associated with the Snowbird Tectonic Zone. This area is a major structural corridor that hosts Cameco’s Centennial deposit near the Athabasca Basin’s southern rim.

    The latest survey is expected to complete by mid-December and aims to highlight areas of maximum alternation and tectonization associated with uranium mineralisation along the formation. It is expected to be followed by a diamond drill program next year and will be funded entirely by Orano Canada as part of its option agreement to earn up to a 70pc stake in Fir Island. As announced by Forum earlier this month, Orano can spend up to $6m in exploration by December 2023 to earn this position.

    The north end of the East Channel was previously investigation by Forum in 2015 when five holes provided several excellent indicators for the discovery of nearby uranium mineralisation. That year also saw Forum complete five holes on the Snowbird Tectonic Zone, with one returning up to 63.8m at 0.48pc cobalt.

    The image below shows the location of Forum’s claims, structural corridors and drill holes at Fir Island, as well as the area of its resistivity study.

    Forum’s deal with Orano – one of the world’s largest uranium miners – is its second with a major player in 2019. Earlier this year, the firm revealed that Rio Tinto Exploration had entered a seven-year, $30m option to earn 80pc of its Janice Lake project. 

    Janice Lake, which is based in Saskatchewan’s Wollaston Domain, boasts a 52km-strike length containing significant concentrations of sediment-hosted copper showings. Drill core logging and petrographic studies have suggested that copper is hosted by mafic-rich stratigraphy within more felsic units at the asset, suggesting multiple layers of copper mineralisation could be present.

    Rio Tinto Exploration is planning to spend $3m (CDN) on Janice Lake in 2019 and has already completed a 21-hole (5,209m) drill program as well as a detailed airborne magnetic survey. As well as developing targets for future drill programmes, the business hopes to determine the dip and attitude of copper mineralisation at Janice Lake while also locating its multiple strata-bound copper-bearing horizons.

    Rio Tinto has already delivered many highly promising assay results from its work, significantly building up the project’s strike length and width. A detailed description of the most up-to-date results from this work can be found here.

    To watch a recent video from Visual News Services, in which Forum’s director Burns Singh Tennent Bhohi discusses the Fir Island deal and providing an in-depth review of the project’s potential, please click here.

    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 been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for its 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.

  • Forum Energy launches Orano-funded uranium exploration work at Fir Island (FMC)

    Forum Energy Metals (TSX.VFMC) has launched an exploration project funded by Orano Canada at its major uranium opportunity in Saskatchewan, Canada.

    Eight to ten holes are planned at the Fir Island project, where a resistivity survey in Novemberlast year identified a number of attributes strongly indicative of nearby uranium mineralisation. The $1 million budget for the latest round of work will be covered by Orano as part of its option agreement to earn up to a 70% interest in Fir Island by spending up to $6 million on the property by December 2023.

    Last year's work at Fir Island outlined an area of low resistivity “potentially linked with alterations or structural disruption”towards the north end of the property. Forum identified a series of gravity lows, that it interpreted as alteration, with associated boron soil anomalies of up to 3,350 parts per million. Prior to this, five holes completed in 2015 demonstrated strong quartz dissolution and remobilisation, tectonisation, and sudoite clays in both sandstone and basement rocks.

    Forum's efforts at Fir Island complement the work being completed at its Janice Lake copper and silver project – also in Saskatchewan – alongside major miner Rio Tinto.

    Janice Lake, which is based in Saskatchewan’s Wollaston Domain, boasts a 52km-strike length containing significant concentrations of sediment-hosted copper showings. Drill core logging and petrographic studies have suggested that copper is hosted by mafic-rich stratigraphy within more felsic units at the asset. This suggests multiple layers of copper mineralisation could be present.

    Rio Tinto, which has entered a seven-year, $30 million option to earn 80% of Janice Lake, is currently building a winter access road to the project's camp site. Meanwhile, preparations are underway to mobilise an 80-person exploration camp, three core drill rigs, a rotary air blast drill, fueld, and supplies. The major miner plans to use this infrastructure to complete surface mapping, prospecting, geophysical & geochemical surveys, and drilling from June.

    As of the end of February, Rio Tinto and Forum were finalising details of the 2020 exploration programme and would “continue to provide updates as details are finalised” In an update, Forum added that Rio Tinto had met its initial $3 million exploration commitment within eight months, well in advance of the 18 months set out in the option agreement.

    To read our recent report on Janice Lake, which explores the project's upside potential in detail, PLEASE CLICK HERE.

    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 been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for its 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.

     

  • Forum Energy Metals reports encouraging Fir Island uranium, will expand Canada operation (FMC)

    Vancouver’s Forum Energy Metals (TSX.V:FMC) has reported encouraging drill results from its Fir Island project in Canada.

    Forum is exploring its 100%-owned property in the western state of Saskatchewan, on the northern border of the United States.

    Forum said it had confirmed signs of uranium mineralisation across six holes totalling 1,819m, just 1km south of five previous drilled holes at Fir Island.

    The exploration is within trucking distance of the McLean Lake uranium mill.

    These positive results mean Forum will now engage in a much larger drilling programme in winter 2021, supported by its funding partner Orano Canada.

    This year’s drilling scheme is the first to be funded by Orano, backed by an option agreement which allows Forum to earn a 70% interest in Fir Island. Under the terms of the deal Forum will spend $6m on exploration by 2023.

    Orano Canada is a leading uranium producer and has been operating in Canada for 55 years. It operates the McClean Lake uranium mill and is a major partner in the Cigar Lake, McArthur River and Key Lake operations.

    In 2018 it processed 18 million pounds of the element, which is used for fuel in nuclear power stations worldwide. It is a subsidiary of energy giant Orano Group, which is majority-owned by the French government.

    The world supply of uranium has been hammered by the Covid-19 pandemic, as we reported in detail here. These issues have given uranium producers a huge leg up as spot markets soar.

    Forum said its drilling programme at the East Channel Fault revealed potential for uranium mineralisation with similar rock structures to its 2015 drilling scheme.

    These include elevated geochemistry with uranium up to 283ppm, boron up to 2,160pp, copper at 314ppm and nickel at 2,140ppm in two drill holes that intersect the East Channel Fault.

    Regional magnetic and gravity surveys suggest that the structure continues for 8km to the southwest and 2km to the north, all on Forum’s property, the company said in a release.

    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

  • Forum Energy powers forward following $30m option agreement with Rio Tinto Exploration (FMC)

    Canadian exploration firm Forum Energy Metals (TSX-V:FMC) enjoyed a 75pc lift on Thursday after announcing that it had entered into a game-changing $30m agreement with Rio Tinto Exploration. The two businesses have entered an option to joint venture deal over Forum’s Janice Lake sedimentary copper project in Saskatchewan, a world-leading mining jurisdiction in Canada.

    The deal follows Forum’s successful first pass drilling program at the asset last year, in which four drill holes intersected shallow chalcocite, bornite and native copper mineralization above 80m in depth. Notably, this included Hole FEM-01, which intersected 18.5m (59.0 to 77.5m downhole depth) grading 0.94pc copper and 6.7 g/t silver including 5.2 metres grading 2.22% copper and 16.5 g/t silver.

    Under the proposed terms of this week’s agreement, Rio will commit to $3m worth of exploration at the project over the next year-and-a-half. The mining major is planning a high-resolution airborne magnetometer survey over the property and c.7,000m of drilling across 25-30 holes before the end of this year to meet this commitment.

    Meanwhile, Rio has also been granted a four-year option to acquire a 51pc in Janice Lake by spending $10m in exploration and making $490,000 in cash payments. It will also be required to service the remaining $200,000 in underlying cash payments to Transition Metals, which arose as part of Forum’s option agreement to earn a 100pc interest in Janice Lake last year. The business also has a second option to earn a further 29pc stake in the project - giving it a total interest of 80pc - by spending £20m in exploration over three years and making a further $150,000 worth of cash payments.

    Finally, Forum said on Thursday that it has staked a further 19,132 hectare to the southwest of Janice Lake, meaning the project will now cover the entire 52km of the Wollaston Copperbelt. This extension, which takes Janice Lake’s total size to 38,250 hectares, will be added to the option agreement.

    Logging of the drill core and petrographic studies from Forum’s 2018 drilling programme suggest that mineralisation at the project is hosted by mafic-rich stratigraphy within more felsic units. This opens the possibility for multiple layers of copper mineralisation, according to Forum.

    Limited historical drilling by Noranda and Phelps Dodge has intersected copper mineralisation for 6km on the Janice Trend at Janice Lake. Forum says a second mineralised area called the Genie trend parallels the Janice trend, significantly expanding the potential for copper mineralisation.

    Discussing the Rio deal, Forum’s president and chief executive Rick Mazur said: ‘We are pleased to partner with Rio Tinto, a Tier One metals and mining company which has long been recognized for its industry leading track record for exploration discoveries. Their expertise and proprietary technology will add significant value to potentially making an economic copper discovery at Janice Lake for our shareholders.’

    Alongside its copper interests, Forum is well positioned for when the uranium market rebounds with interests in seven drill ready projects in Canada’s Athabasca Basin. Keep an eye out for MiningMaven’s upcoming interview with Forum, in which the business discusses recent developments and the upside it believes to be on offer across its portfolio.

    Author: Daniel Flynn

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

    The Author has been paid to produce this piece by the company or companies mentioned above.

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.

  • Forum Energy raises $554k to fund vital work at Janice Lake copper/silver project in Canada (FMC)

    Canadian resources business Forum Energy Metals (TSX-V:FMC) announced that it had successfully raised more than $550,000 to progress its flagship Janice Lake copper/silver project on Wednesday.

    The company revealed that it had closed its non-brokered private placement, first announced in February, after raising $554,000 by issuing c.11m shares at $0.05 per unit. Each unit comprises one common share and one warrant that entitles the holder to buy a Forum share at $10p by 1 April 2024.

    The money raised in the financing will be used to begin initial preparations for a Summer drilling programme at Janice Lake. The asset is located in north-central Saskatchewan within the Wollaston Domain, a belt of metamorphosed lower Proterozoic supracrustal rocks deposited upon Archean granitoid basement.

    Forum has the option to earn a 100pc interest in Janice Lake from Transition Metals by making further staged cash payments over the next three years. The firm believes that it is highly prospective, with more than 20 copper occurrences.

    Drill results by Noranda in 1993 include 0.77pc copper over 33m, including 1.6pc copper over 6m within 35m of surface. Meanwhile, Phelps Dodge completed six diamond drill holes in 2003, applying geophysical methods to target mineralisation under cover.  This resulted in the discovery of a new zone that returned values including 0.72pc copper over 26m and 1.33pc copper over 5.83m.

    Elsewhere, grab samples collected by Transition Metals have returned values ranging from 0.34pc to 9.35pc copper and 0.7 to 61.7g/t silver.  This has confirmed previous reports of high-grade mineralisation at surface and highlights the potential for the discovery of multiple near-surface, sediment-hosted copper deposits.

    According to Forum, the age and depositional environment at Janice Lake are similar to the giant Udokan Deposits of the Lake Baikal region in Siberia, and the Revette deposits of Montana USA. Baikal Mining has reported JORC-compliant measured and indicated resources of 1.822bn tonnes, grading 1.01pc copper, 14.3 g/t silver at the Udokan deposits.

    In Wednesday’s update, Forums said the proceeds from its placing would also be put towards a media relations program and general working capital.

    Forum primarily explores for energy metals, including copper and uranium in Saskatchewan, which is Canada’s most significant mining province.  It also has exposure to cobalt in Idaho and Oregon. The company says it is well positioned for a rebound in the uranium market, with interests in seven drill-ready projects in the Athabasca Basin. These have all been assembled by a highly experienced team of exploration professionals with a track record of uranium mine discoveries in Canada.

    To listen to an interview with Forum’s recently appointed director Burns Singh Tennent-Bhohi on MiningMaven’s sister site ValueTheMarkets.com, please click here.

    Author: Daniel Flynn

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

    The Author has been paid to produce this piece by the company or companies mentioned above.

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.

     

  • Forum Energy’s Mazur and Wheatley discuss Janice Lake’s ‘huge’ potential following major Rio Tinto tie-up (FMC)

    Forum Energy Metals (TSX-V:FMC) surprised the Canadian markets earlier this month when it revealed that it had secured $30m deal with Rio Tinto Exploration over its Janice Lake sedimentary copper project in Canada. With the support of a major mining player, Forum has been granted the fire power needed to realise the true potential of its asset, which it believes to mirror the giant Udokan Deposits of the Lake Baikal region in Siberia. Here, CEO Rick Mazur and VP exploration Ken Wheatley talk through their decision to enter the copper sector, the value presenting itself at Janice Lake, and progress across the rest of Forum’s portfolio.

    Broader focus

    Forum was established in 2004 as a uranium exploration firm. However, following an extended bear-run in the uranium market in the wake of the 2012 Fukushima nuclear disaster, the company decided to extend its focus into the wider energy metals market last year. After changing its name from ‘Forum Uranium’, the business selected the copper market as its first foray into previously uncharted territory.

    Forum’s decision to get exposure to the red metal is favoured by the general outlook of the commodity analyst community. Many experts expect copper prices to experience a sharp swing upwards over the coming years following a recent, well-publicised downturn across most commodity markets in the face of weak global growth and US/China trade tensions.

    On the demand side, this shift is expected to come down primarily to two factors. First-of-all, China’s acceleration into a phase of infrastructure development is expected to require an unprecedented amount of copper. A good example is the country’s ‘belt and road’ initiative, which aims to create the world’s largest platform for economic cooperation covering policy coordination, trade, financing, and social partnerships. Most notably, the initiative is expected to include a continuous network of highways, railways, ocean routes and ports, with plans to expand over 68 countries and several continents at a cost of $4trn to $8trm.

    The second demand driver is expected to be an increased uptake of electric vehicles (EVs) over the coming decades. On average, EVs contain 183lbs of copper compared to just 18-49lbs in conventional cars. With the number of EVs on the road expect to hit 125m by 2030 - compared to c.3.1m in 2017 - Citigroup expects prices of the metal to pass $9,000 by 2028. In comparison, the metal current sits below $6,500/t.

    Meanwhile, on the supply side, many analysts believe that a sustained downturn has created an environment where too few copper projects are coming on stream to meet the predicted explosion in demand for the metal. Likewise, China’s plans to ban all scrap copper imports by 2020 as part of broader environmental reform is expected to provide international producers and processors with a significant opportunity.

    Copper is the mother of all base metals,’ adds Mazur. ‘When economies are growing, huge amounts of copper are required for areas like construction and power. These are the biggest drivers for the market. The EV sector is also crucial because it presents a huge amount of incremental growth that has caught suppliers completely off guard. Overall, the fundamentals for the copper market are very, very strong, so it seemed a great space for us to enter.’

    Janice Lake

    Forum’s copper exposure comes from a sedimentary copper project called Janice Lake found 55km from Cameco’s Key Lake processing facility in Saskatchewan, Canada’s number-one rated mining jurisdiction. The organisation optioned a 100pc interest in the asset last February from Transition Metals in exchange for 8m of its shares and $250,000 worth of staged cash payments over four years. Transition will also retain a 2pc net smelter royalty on metal produced from the site.

    Map showing location of Janice Lake project

    The deal covered 17,600 hectares of staked claims in an area called ‘the most significantconcentration of sediment-hosted copper showings yet known in the Wollaston Domain’ by the Saskatchewan Geological Survey. Limited drilling in the area before Forum’s entry appears to support this claim, with operators encountering mineralisation for 6km on the Janice trend.

    Specifically, Noranda drilled 0.77pc copper over 33m including 1.6pc copper over 6m, within 35m of the surface back in 1993 while Phelps Dodge discovered a new zone in 2003 including 0.72pc copper over 26m. Likewise, grab samples collected by Transition have returned values ranging from 0.34 to 9.35pc copper and 0.7 to 61.7 g/t silver.

    According to Mazur, these results highlight the potential for the discovery of multiple near-surface, sediment-hosted copper deposits. Sediment-hosted deposits are estimated to account for around a quarter of worldwide copper production and frequently contain higher concentrations of the metal, alongside accessory base and precious metals, than porphyry deposits.

    Specifically, Mazur says the age and depositional environment at Janice Lake are similar to the giant Udokan Deposits of the Lake Baikal region in Siberia and the Revette deposits of Montana, USA. With Udokan boasting JORC compliant measured and indicated resources of 1.822 billion tonnes grading 1.01pc copper and14.3 g/t silver, these parallels could be highly significant. As such, Mazur says Forum immediately was keen to take advantage of Janice Lake’s lack of development in spite of its early-stage prospectivity.

    Likewise, to take advantage of the broader potential for sediment-hosted copper deposits on offer in the more expansive Janice area, Forum has increased its presence significantly since last February’s deal. Firstly, the firm staked an additional 15,331 hectares of claims covering over 30km in the region alongside transition last year.

    Then, earlier this month, the business announced that it had staked a further 19,312 hectares to the southwest, doubling the size of the property to 38,250 hectares.

    ‘The attraction of this project when we acquired was that over a 6km trend there were only 40 drill holes ever drilled. Firms were hitting copper everywhere, but operators were never really able to put it together,’ says Mazur. ‘We think there is potential for a huge copper deposit in this sedimentary basin. The drilling that was done previously showed excellent economic grades and persistent copper over 6km, so that’s why we staked the 24km trend.’ 

    Initial drilling

    To make the most of its first-mover advantage, Forum completed a drilling programme of its own at Janice Lake several months after entering the area. This comprised four holes targeting the JS-2 area of historical drilling completed by Phelps Dodge to extend Janice Lake’s known strike of copper mineralisation.

    The programme was an immediate success, with all four holes encountering copper mineralisation within 80m of the surface. Highlights included a 19m intersection grading 1pc copper including 5.7m of 2.18pc copper within a 50.5m interval grading 0.45pc copper. Forum also encountered a 15m zone of mineralisation containing 1.09pc lead and 0.62pc zinc within a 5m intersection grading 0.39pc copper and 4.3 g/t silver. Wheatley says the results suggest mineralisation at Janice Lake is hosted by mafic-rich stratigraphy within more felsic units. In Layman’s terms, this opens up the possibility for multiple layers of copper mineralisation:

    ‘I think we have multiple horizons of copper mineralisation that were not necessarily recognised by previous operators. They drilled along strike, but I do not think they realised that that was just one of the layers of copper. We see a series of layers of mineralisation. So, the whole area is mineralised. If we can find some sweet spot areas, then it will help to understand the area better,’ he says. ‘The trick now is going to be getting some grade holes to show that it is economical. The next stage will be hundreds of thousands of metres of drilling to prove up an orebody. That is what it takes to get to pre-feasibility. We think the potential here is to develop an open pit mining resource and mine a lot of tonnes of copper.

    Major interest

    This drilling success did not go unnoticed, with both Forum and Janice Lake taking a major step forward earlier this month when Rio Tinto Exploration Canada entered into an option on the project. The mining major has entered a joint venture agreement with Forum that will see it commit to $3m in exploration at Janice Lake over the next year-and-a-half.

    Alongside this, Rio Tinto has also been granted two options. The first of these gives its four years to acquire a 51pc stake in Janice Lake by spending $10m on exploration, making $490,000 in cash payments.As a bonus, the business must also service Forum’s remaining $200,000 worth of underlying cash payments to Transition for acquiring Janice Lake in the first place.In other words, Forum has negotiated a multi-year deal with a world-leading mining company on a project that it is yet to acquire itself fully. The second option gives Rio Tinto the right to earn a further 29pc stake in Janice Lake by spending another $20m in exploration over three years while making additional cash payments of $150,000.

    Encouragingly, Rio Tinto is already planning a high-resolution airborne magnetometer survey over the entire extent of Janice Lake alongside c.7,000m of drilling in 25-30 holes to meet its 2019 exploration commitments. Mazur says this sort of support from a business like Rio Tinto is transformational for Forum because it will allow it to realise Janice Lake’s true potential: 

     ‘The Rio Tinto deal is exceptional at this stage of the project. The company obviously sees what we see- Janice Lake’s potential to become a mine. We are pleased to have the team on board- Rio Tinto is obviously one of the biggest copper producers in the world, so the technical team it can bring to this is tremendous. We are really excited to have the company come in to the project and build a mine for us.’

    Wider interests

    Forum also offers exposure to several additional assets beyond Janice Lake, which MiningMaven will cover in great detail in a future report.  One of the most significant of these is its 100pc-owned Quartz Gulch cobalt exploration project in America’s Idaho copper belt. Quartz Gulch is based around 5kms to the south-east of the past-producing Blackbird cobalt mine and the eCobalt Solutions Idaho cobalt project - currently, the only permitted cobalt mine under development in North America.

    Although Janice Lake remains Forum’s primary focus at present, Mazur says he believes that the business could benefit from having a significant strategic foothold in Idaho as conditions in the cobalt market develop: ‘We are locked-in at the best cobalt area in North America, adjacent to former production and a developing mine,’he says. ‘Cobalt is a vital element in the cathode of Li-ion batteries and will be for years to come. The primary source of cobalt is currently the DRC, which is very unstable. I think battery suppliers are increasingly seeking out a secure source of cobalt, so that is why we are getting into the metal in the US.’

    Forum also has a majority interest in seven drill-ready uranium exploration properties in Canada’s Athabasca Basin, where some of the richest deposits for the metal are found globally. The projects are under the direction of Wheatley, a professional geologist who boasts an exploration discovery record of eight uranium deposits. Four of these became producing mines.

    Mazur tells us the company will return to the projects when conditions in the uranium market begin to recover: ‘Although the market went soft on us, we believe things will come back into balance. The demand for uranium in China is huge and growing – the country is building nuclear power plants as part of its 20-year plans to replace all of its coal-fired power generation.’


    Map showing location of Athabasca Basin prospects

    Growing awareness

    The parallels being drawn between Janice Lake and hugely successful sedimentary copper projects alongside the asset’s ability to attract a major mining player at such an early stage are very encouraging. With guidance from Forum’s highly experienced management and technical team and financial firepower from Rio Tinto, the project really has been granted the best possible shot at realising its potential.

    Beyond Janice Lake, the assets present across the remainder of Forum’s portfolio both ensure diversification and give investors additional exposure to powerful global trends like increasing nuclear power and EV usage. Although positive, market reaction to the Rio Tinto deal was somewhat muted. With a work programme coming up and investors growing privy to Janice Lake’s prospectivity, it will be interesting to see where Forum’s shares go from here.

    Author: Daniel Flynn

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

    The Author has been paid to produce this piece by the company or companies mentioned above.

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.

  • MiningMaven Podcast 105 - Forum Energy Metals secures earn-in agreement with Rio Tinto (FMC)

    Today’s guest on the MiningMaven podcast is Burns Singh Tennent-Bhohi, director of Forum Energy Metals (TSX-V:FMC). Traditionally a uranium play, Forum has added copper and cobalt interests to its portfolio of assets. Last Thursday, the company announced very exciting news regarding its Janice Lake Copper project. Forum has secured an earn-in agreement with one of the largest Tier 1 mining companies in the world, Rio Tint -  a deal potentially worth $30m.

    This interview was recorded on 14th May 2019.

    All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small-cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate. MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG) #gold #mining #investing

    Author: Stuart Langelaan

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

    The Author has been paid to produce this piece by the company or companies mentioned above.

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

    Catalyst Information Systems 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 Catalyst Information Systems Ltd are not responsible for its content or accuracy. 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.

     

  • MiningMaven Podcast 95 - Forum Energy Metals Burns Singh Tennent-Bhohi talks battery metals, uranium, and the TSX venture exchange (TSX-V:FMC)

    In today’s podcast we talk with Burns Singh Tennent-Bhohi who has just been appointed a director of Canadian-listed Forum Energy Metals (TSX-V:FMC). Historically the company has been focused on its Uranium assets but last year Forum made two acquisitions, one copper project, the other cobalt. Tennent-Bhohi explains the company’s strategy of diversifying into the battery metals space while sentiment in the uranium market gradually turns favourable. Tennent-Bhohi also discusses the increasing awareness of the Canadian TSX venture exchange by UK investors.

    This interview was recorded on 21st February 2019.

    All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate. MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG)

    Author: Stuart Langelaan

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

    The Author has been paid to produce this piece by the company or companies mentioned above.

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.

     

  • REPORT: Forum Energy Metals- Hunting for Canada’s next major copper deposit with Rio Tinto (FMC)

    Since opting to extend its focus beyond uranium in 2018, Forum Energy Metals (TSX-V: FMC) has  come a long way. Following a successful drilling campaign at its Janice Lake sedimentary copper project– its first foray into the energy metals space – the firm attracted the attention of major miner Rio Tinto. A $30 million exploration deal signed between the two in May 2019 now provides the necessary firepower to support the discovery of a “very large corridor of near-surface copper mineralisation” at the Saskatchewan-based property.

    The firm subsequently staked another Saskatchewan property called Love Lake in June 2019, prospective not only for copper but also nickel, palladium, and platinum – three more critical energy metals.

    Alongside this, the company retains a portfolio of promising drill-ready uranium opportunities in Saskatchewan’s prolific Athabasca Basin, home to the richest uranium deposits in the world. One of these projects, Fir Island, was recently optioned to Orano Canada in a $6 million option deal and will be drilled in early 2020.

    In our exclusive report, we focus on the work undertaken at both Janice Lake and Love Lake in detail, highlighting the potential value that both could ultimately yield for Forum and its investors.

    To download and read our report, please click here

  • Rio Tinto kicks off airborne survey at Forum Energy's Janice Lake copper project

    Tuesday saw Canadian exploration business Forum Energy Metals (TSX.V:FMC) reveal that an airborne geophysical survey has kicked off over its highly prospective Janice Lake copper project.

    The work was initiated by Rio Tinto Exploration Canada (RTEC), Forum’s partner on the northern Saskatchewan-based asset, and it will be completed by geophysical contractor CGG. It also precedes the mobilisation of two rigs for a 7,000m drill program that is expected to start later this month.

    Copper at Janice Lake is hosted in multiple, shallow-dipping layers of stratabound chalcocite mineralisation with late-stage native copper mineralisation, as determined by earlier work undertaken by Forum. Also, mapping by the Saskatchewan Geological Survey has determined that the copper-bearing strata have been repeated by faulting, adding to the asset’s potential.  In Tuesday’s update, Forum reiterated that these geological attributes confirm the exploration potential for finding a large tonnage open pit deposit at Janice Lake.

    To build on this potential, CGG will cover 430km2at a 100m line spacing with a helicopter-borne magnetometer stringer survey. According to Forum, this technology can provide high-resolution information that will aid in locating drill targets in the sedimentary layers hosting copper at Janice Lake.

    Investigations completed by the company in a drilling programme last year suggested that the higher grades of copper are associated with magnetite and mafic-rich layers in the strata. Indeed, all four of the company’s drill holes intersected shallow chalcocite, bornite, and native copper mineralisation above 80m in depth.  Among the highlights was Hole FEM-01, which intersected 18.5m (59.0 to 77.5m downhole depth) grading 0.94pc copper and 6.7 g/t silver including 5.2m grading 2.22pc copper and 16.5 g/t silver

    RTEC is planning to spend around CDN$3m on Janice Lake in 2019 as part of a seven-year, $30m option to earn an 80pc position in the project, the terms of which Forum revealed to the market in May. At the time of announcing the major opportunity, Forum’s president and chief executive Rick Mazur said:

    ‘We are pleased to partner with Rio Tinto, a Tier One metals and mining company which has long been recognised for its industry-leading track record for exploration discoveries. Their expertise and proprietary technology will add significant value to potentially making an economic copper discovery at Janice Lake for our shareholders.”

    To read our feature interview with Mazur and Forum’s VP exploration Ken Wheatley, in which they discuss Janice Lake, their decision to enter the copper sector, and progress across the firm’s other assets, click here.

    Author: Daniel Flynn

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

    The Author has been paid to produce this piece by the company or companies mentioned above

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.

     

     

  • Rio Tinto launches drilling programme at Forum Energy’s Janice Lake project (FMC)

    Monday saw Canadian exploration business Forum Energy Metals (TSX.V:FMC) reveal that its partner Rio Tinto has kicked off a major drilling project on the Janice Lake copper project in northern Saskatchewan. Rio Tinto Exploration Canada, which is planning to spend c.$3m on Janice Lake in 2019 as part of a seven-year, $30m option to earn 80pc of the project, is looking to drill 20 to 30 holes as part of the 7,000m programme.

    The work, which is being assisted by a helicopter and completed using two rigs, is centred around areas of known copper mineralisation. Specifically, the project team has prioritised four project areas called Jansem, Janice, Kaz, and Genie North (Juno.

    One of four holes drilled by Forum’s initial programme last year intersected 18.5m grading 0.94pc copper and 6.7g/t silver at Jansem, including 5.2m grading 2.22pc copper and 16.5g/t silver. Meanwhile, mining company Noranda historically hit 33m grading 0.77pc copper and 15.1m grading 0.32pc copper at Janice and Kaz respectively. Finally, Genie North (Juno) is an interpreted structural target with nearby grab samples returning up to 1.9pc copper and 32g/t silver.

    Through its work, Rio Tinto hopes to determine the dip and attitude of copper mineralisation at Janice Lake as well as the possibility of multiple, strata-bound copper-bearing mineralised horizons. It will also work to find out the association of magnetics and copper in rocks at the asset and the potential for high-grade zones of mineralisation caused structure or mafic-rich layers.

    Alongside the results of a recently-completed airborne geophysical survey, the drilling results will be used to identify future drilling targets n Janice Lake’s 52km-long sedimentary basin.

    Upon announcing the beginning of the geophysical survey earlier this month, Forum said that Janice Lake’s geological attributes suggested the potential for finding a large tonnage open pit deposit on site. A helicopter-borne magnetometer stringer survey covered 430km2 at a 100m line spacing to explore this opportunity. According to Forum, this technology can provide high-resolution information that will aid in locating drill targets in the sedimentary layers hosting copper at Janice Lake.

    Investigations completed by the company in a drilling programme last year suggested that the higher grades of copper are associated with magnetite and mafic-rich layers in the strata. Indeed, all four of the company’s drill holes intersected shallow chalcocite, bornite, and native copper mineralisation above 80m in depth. 

    Author: Daniel Flynn

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

    The Author has been paid to produce this piece by the company or companies mentioned above

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

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.