Gold street is where South Africa’s mining history goes to die

By Bloomberg News

“The industry is in crisis,” said Chris Griffith, CEO of Anglo American Platinum Ltd., the world’s largest producer.

The death rattle of the industry that once symbolized South Africa can be heard in the town of Carletonville—on Gold Street.

That’s where Paseka Selemela has been guarding cars since 2010, when the scaffolding business he worked for closed. Prior to that, he was an assistant at a now-shuttered mine owned by AngloGold Ashanti Ltd. Nor has he found work in other gold mines around the town, home to the world’s deepest shafts. Many of his friends and family members also have joined the legions of the retrenched, including 8,500 people in the area last year alone.

“These people can’t find jobs, just like me,” Selemela, 34, said under the winter sun, wearing a torn, dirty Chelsea soccer club shirt and jeans that hung loosely on his thin frame. “They try at the retailers, but there is nothing available there. They are employing fewer people because people are buying less. There’s no money.”

In 1980, mining vied with manufacturing as the largest contributor to gross domestic product, with each at about 21 percent. Today, mines account for 7 percent of the economy.

Additional cuts are to come across mines and towns in South Africa, once the world’s biggest producer of gold. A volatile currency, uncertainty about regulations and demand, labor union tensions, harder-to-access ore, high operating costs and falling prices mean about half of gold and platinum operations are loss-making.

More than 6 million people are unemployed and looking for work, taking the jobless rate to about 28 percent, a 15-year high. This excludes 2.5 million discouraged job seekers.

It’s a gargantuan task for newly elected President Cyril Ramaphosa, who came to office in February promising to revive the sluggish economy and clamp down on corruption. He’s spearheading a drive to attract $100 billion in new investments that could absorb unemployed youth as well as former mine and factory workers and to provide opportunities for young citizens.

He has his work cut out for him: The economy shrank the most in nine years in the first quarter, led by declines in agriculture, mining and manufacturing, Statistics South Africa said June 5. Gold production fell for the seventh straight month in April, the agency said on June 14. Foreigners are dumping South African bonds at the fastest pace since September 2008.

After gold was discovered near what was to become the economic hub of Johannesburg in 1886, the country became the biggest producer. The metal spawned some of the world’s largest mining companies, such as Anglo American Plc. It transformed South Africa from a farming economy into the continent’s most industrialized. It provided opportunities for unskilled black males, who were restricted from many jobs because of their race under white-minority-rule, known as apartheid.

In 1980, mining vied with manufacturing as the largest contributor to gross domestic product, with each at about 21 percent. Today, mines account for 7 percent of the economy. In 1987, the sector employed 763,000 people; that’s down more than 40 percent to 447,000 now. The government, retailers and banks are now the country’s biggest employers.

“A lot of the future of the industry is going to be based on constraining costs and a need to improve safety, but most particularly a focus on innovation and technology,” said Roger Baxter, chief executive officer of the Minerals Council of South Africa, which represents most producers. “It will continue to shrink until those initiatives start bearing good fruits.”

More than 6 million people are unemployed and looking for work, taking the jobless rate to about 28 percent, a 15-year high.

The newer platinum industry has its own problems. Producers are closing shafts and cutting thousands of jobs because a stronger rand and stagnating prices are squeezing profit margins. At the same time, reduced demand for diesel engines and the rise of electric cars threatens to erode the need for the metal, which is used in converters that control emissions in diesel-fueled vehicles. About 41 percent of platinum used last year was for this purpose, according to research from Johnson Matthey Plc, one of its top refiners.

“The industry is in crisis,” said Chris Griffith, CEO of Anglo American Platinum Ltd., the world’s largest producer. “It’s a chicken-and-egg situation. You need to invest yourself out of this situation by investing in growing demand.”

South Africa continues to be an important gold-mining jurisdiction worth investing in, said Bernard Swanepoel, a former CEO of Harmony Gold Mining Co. and board member of Impala Platinum Holdings Ltd., the world’s second-biggest producer.

“I really think it’s the last chapter, but the last chapter could be a good chapter,” he said. “Thirty more years of gold mining in South Africa could be a good chapter.”

And the country’s huge mineral endowment means chrome, iron ore and manganese—of which the nation has the world’s biggest known reserves—are becoming more important for exports, said Ross Harvey, a mining analyst at the South African Institute of International Affairs.

“Minerals such as iron ore have good prospects,” he said. “It’s an irreplaceable product for the steel industry. But as mines bring in new technology, that will continue to drive down jobs absorption.”

Draft rules published June 15 by Mineral Resources Minister Gwede Mantashe could hurt new operations. The Mining Charter says nearby communities and employees’ groups should get a 5 percent interest in either the asset or the company that owns it. The Minerals Commission and its members are opposed.

Mark Bohlund, an Africa economist at Bloomberg Economics, said the government should be doing more for an industry that’s still among the country’s top export-revenue earners.

“The government could offer more tax incentives for the mining sector but the scope for this will be constrained by the need to reduce the budget deficit and stabilize public debt,” he said. “Beyond that, the government needs to improve its relationship with key mining-sector unions and persuade them to moderate their wage demands.”

South Africa has had success expanding its automotive industry, which now accounts for about 7 percent of GDP. Toyota Motor Corp., Ford Motor …read more

From:: Mining.com

Sean Brodrick – Wed 20 Jun, 2018

By Cory댊 There Are Some Sectors That Are Moving Up

Sean Brodrick joins me today to point to some of the stocks/sectors he is seeing move up. We look at the oil and gas stocks as well as uranium that have been performing fairly well. With the oil and gas stock even in the face of a pullback in the oil price an argument can be made that there is some catch up to do.

Download audio file (2018_06_20-Sean-Brodick.mp3)

Click here to visit the Wiess Ratings website.

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From:: The Korelin Economic Report

Enforcer Gold Intersects 0.73 g/t Gold Over 219.7 Meters on the MOP II Gold-Copper Deposit, Roger Project

By Pia Rivera

Enforcer Gold Corp (“Enforcer” or the “Company”) (TSXV: VEIN, FSE: N071) is pleased to announce the results from its 2018 Phase 1 diamond drilling program on the MOP II gold-copper deposit. The Roger Project is located 5 km north of Chibougamau, Quebec, has all-season road access and is crossed by a power line that serviced the past-producing Troilus Mine. Enforcer is earning a 50% interest in the project from project operator, SOQUEM.

The 2018 Phase 1 program was completed in April with the drilling of 11 holes totalling 3,068 m. The primary objectives of the program were the twinning of 8 historic holes on the Main zone, for which the core is no longer available, and deeper drilling (>300m vertical) to determine if mineralization continues at depth on the eastern portion of the deposit.

Highlights include:

  • Hole 1206-18-85: 0.83 g/t Au over 112 m
  • Hole 1206-18-87: 0.71 g/t Au over 147.8 m
    • including 1.07 g/t Au over 64.8 m
  • Hole 1206-18-88: 0.73 g/t Au over 219.7 m
    • including 1.32 g/t Au over 57.7 m
  • Hole 1206-18-89: 0.54 g/t Au over 230.1 m
  • Hole 1206-18-94: 0.29 g/t Au over 514.5 m
    • including 0.89 g/t Au over 81.0 m
    • including 0.50 g/t Au over 219.5 m

President and CEO, Steve Roebuck, comments:

“Results from the twinned holes have exceeded our expectations in that the mineralization is very consistent throughout each hole and in most cases the grades and widths exceed the historical results. This has significantly boosted our confidence on the potential for defining a bulk-tonnage deposit at Mop-II that is potentially amenable to lower-cost, open-pit mining techniques. With the historic data now validated, the Company has a robust database to work with and will proceed with updating the resource estimate, targeted for release later this summer. Planning for the next phase of exploration is underway with emphasis on targeting areas that have the best potential to increase the resource base.”

The 8 twinned holes have verified the results from the 8 historical holes (Table 2) with mineralization beginning at or near surface and continuing for significant lengths down hole. Holes 1206-18-93 and 94 were collared to the east of the lesser explored North zone and drilled to intersect the Main zone at depth. Both holes intersected mineralization on strike of the North zone, extending its potential strike extent to over 450 m. Hole 1206-18-94 demonstrated continuous lower-grade mineralization over an impressive 514.5 m of core length to a vertical depth of ~400 m. Hole 1206-08-25 was a deepening of historical hole 1206-08-25 from 375 to 521.5 m down hole, also confirming that a very broad halo of lower-grade mineralization extends at depth below the Main zone.

Detailed drill hole location plans and cross sections are available in the Roger Map Gallery.

Table 1. Significant Results from the 2018 Phase 1 Drill Program

Notes to Table 1:

All holes presented in Table 1 were completed by NQ diamond (core) drilling. Widths represent down hole core lengths; true widths are unknown at this time. *Hole 1206-18-91 intersected underground workings from 128.3 to 131.2m downhole; hence, 2.9 m of drill core is missing from the intersection where host rock with potential mineralization has been mined out. As such, the true grade of the intersection is unknown and a value of “0” was assigned to the interval.

The 8 holes presented in Table 1 were drilled to twin 8 holes drilled by Flanagan Inc. from 1986 to 1988. These historical holes were selected in order to achieve a representative sampling of the mineralized zone rather than targeting the best historical grades. The twinning program has successfully corroborated the results of the historic drilling and in all cases returned anomalous gold beginning at or near surface and extending over very significant widths.

Table 2. Comparison of Historic (1986-1988) and 2018 Twin Hole Results

Notes to Table 2:

All holes presented in Table 2 were completed by diamond (core) drilling. Widths represent down hole core lengths; true widths are unknown at this time. *Hole 1206-18-91 intersected underground workings from 128.3 to 131.2m downhole; hence, 2.9 m of drill core is missing from the intersection where host rock with potential mineralization has been mined out. As such, the true grade of the intersection is unknown and a value of “0” was assigned to the interval. All non-assayed intervals in the historical holes were assigned a value of “0”.

Gold mineralization at the MOP-II deposit correlates with broad alteration zones of sericitization and silicification that are largely contained within a 2.2 km long by 0.4 km wide quartz-feldspar porphyry intrusion. The mineralization is homogenous, generally low grade and occurs over broad intervals. In addition to the 58,000 m of diamond drilling now completed on the Roger property, underground exploration undertaken in 1988 included 1,177 m of development and over 1,000 m of chip sampling.

Historical Resource Estimate

As reported on January 22, 2018, a 2006 NI 43-101 compliant mineral resource estimate on the deposit by Scott Wilson Roscoe Postle Associates Inc. for SOQUEM, estimated using an average long-term gold price of US$500 per ounce, totalled 167,200 ounces of gold in the Inferred Resource category as follows:

Historical Inferred Resource Estimate – January 2006

N.B.: Enforcer considers the 2006 estimate as a historical resource estimate that has relevance to the project; however, a qualified person for the Company has not done sufficient work to classify the historical estimate as a current mineral resource and as such it should not be relied on.

QAQC

The 2018 Phase 1 drilling program was managed by project operator, SOQUEM, utilizing standard industry procedures and protocols and following a formal quality assurance and quality control (“QAQC”) program. Sample preparation and analysis were performed by ALS Minerals in Val-d’Or, Quebec, a CAN-P-1579, CAN-P-4E (ISO/IEC 17025:2005) accredited testing laboratory. Gold grades are determined using a standard fire assay with atomic absorption finish on a 30g pulverized fraction. Samples grading above 2 g/t are re-assayed using fire assay with gravimetric finish on a 30g fraction on both the pulps and rejects. SOQUEM routinely inserts …read more

From:: Investing News Network

BHP steps up efforts to sell Nickel West business in Australia — report

By Cecilia Jamasmie

World’s largest miner BHP (ASX, NYSE:BHP) (LON:BLT) is said to have hired Goldman Sachs to assist in the sale of the Western Australia-based Nickel West, four years after giving up on the plan to divest the asset because it could find a suitor to meet price expectations.

In 2017, the last time Nickel West was on the block, Glencore offered $200 million for the business, The Australian reports. (subs. needed). But according to Deutsche Bank AG the mine-to-market nickel asset could be worth about $690 million.

Nickel West will never be big enough to boost BHP earnings meaningfully, even when it produces raw materials for the booming electric vehicle (EV) industry.

Chief executive officer, Andrew Mackenzie, wants to sell Nickel West because it’ll never be big enough to boost earnings meaningfully, even when it’s producing raw materials for the booming electric vehicle (EV) industry.

The miner has said it prefers to focus on its key commodities, including copper, iron ore and oil, seeking a buyer for its assets that produce battery-grade nickel and steering clear of lithium and cobalt.

While the market to supply nickel for EVs may be worth about $4 billion by 2030, that’s still way off the $100 billion annual global trade in iron ore — BHP’s core business.

Recently, however, news emerged that BHP was planning expansions for Nickel West, aiming at producing nickel sulphate there beginning next year, targeting an output of 90,000 tonnes of the metal.

Global nickel demand could more than double by 2050, fueled in part by rising EVs sales, Bloomberg Intelligence said in report last year. That trend, paired with strong prices for the metal, should make Nickel West an attractive option for potential buyers.

Nickel climbed 1.2% to $14,835 a tonne in London Wednesday, after hitting a three-week low the previous day.

With files from Bloomberg.

The post BHP steps up efforts to sell Nickel West business in Australia — report appeared first on MINING.com.

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From:: Infomine

Buy This “Trade War-Proof” ETF

By Zach Scheidt

ALTTAG

This post Buy This “Trade War-Proof” ETF appeared first on Daily Reckoning.

Yesterday morning, I woke up to a handful of frenzied news alerts on my iPhone.

The headlines pointed to the “plummeting” markets, thanks to the latest round of trade war threats between the Trump administration and China.

“Oh brother, here we go again,” I mumbled as I turned on the news channel. The pre-market futures were pointing to a 400 point drop in the Dow to start the day.

You may have had a similar experience. It’s not exactly the way we like to start our days as investors.

But as bad as the media made the news sound, I knew that things weren’t going to be as dismal as they painted the situation out to be. Especially for a select group of investments that essentially “don’t care” about the trade disputes in the headlines right now.

Today, I want to show you how this specific group can help you sidestep the trade war risk, while at the same time adding valuable growth to your hard-earned nest egg…

Turbo-Charged Growth With Minimal Trade War Risk

In today’s market, it’s important to pay attention to what’s actually happening, instead of getting distracted by dozens of different opinions on what could happen.

For instance, take a look at the chart below. I clipped this chart from my trading platform midway through the carnage of yesterday’s “plummeting” market meltdown (sarcasm intended).

This chart is for the iShares Russell 2000 ETF (IWM), a fund that trades in-line with the Russell 2000 small cap index. You can buy shares of IWM in your brokerage account just like any other stock or ETF.

Let me ask you a quick question…

Does this look like a market that is concerned about a trade war with China?

Does it look like investors in this market are concerned about anything?

The fact is, despite all of the media attention given to Trump, new tariffs, and retaliatory measures from different countries, the stocks in this index just keep moving higher!

How could that be?

If You’re Doing Business in America, You’re Safe

The special thing about the Russell 2000 small cap index is that it is made up of smaller companies that are primarily doing business inside the United States.

That’s important in a time when investors are worried about uncertainty in international markets.

Here in the U.S., things are actually very good!

We’re creating hundreds of thousands of new jobs each month. Companies are growing profits, and passing some of those gains on to workers in the form of raises and bonuses.

Technology is improving our lives. It’s also helping to make manufacturing and even services cheaper. That means we can do more with the money we have. And it means Americans have more discretionary spending money to do with as they please.

It’s important to keep this strength in mind, because this is what’s actually happening in our country. And that’s a very different story from what you’ll hear on the nightly news.

Also, remember that small cap companies are the ones with the best growth potential. Because small companies haven’t come anywhere close to saturating the markets they do business in. Instead, they have room to grow, and typically have smaller teams that are highly motivated to make their company succeed.

So it makes sense that today the Russell 2000 small cap index is not only one of the safest places that you can invest (thanks to relative immunity to trade war tensions), but also one of the best places for you to grow your wealth.

That’s why today, I recommend investing some of your capital in shares of IWM.

And if you’re into picking out specific stocks for your portfolio, you can find a helpful list of all the companies that are included in the Russell 2000 index here.

Don’t let the fear of a trade war keep you from protecting and growing your wealth. Our domestic economy is just too strong for you to be on the sidelines missing out.

Here’s to growing and protecting your wealth!

Zach Scheidt

Zach Scheidt
Editor, The Daily Edge
TwitterFacebookEmail

The post Buy This “Trade War-Proof” ETF appeared first on Daily Reckoning.

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From:: Daily Reckoning

Australia’s Mineral Resources drops out of race for Atlas Iron

By Cecilia Jamasmie

Mining infrastructure supplier Mineral Resources (ASX: MIN) has bowed to Australia’s richest woman, Gina Rinehart, in the battle for junior iron ore miner Atlas Iron (ASX: AGO), by saying Wednesday it would not make an offer to counter her A$390 million ($288 million) cash bid.

Fortescue Metals still has a 19.9%-stake in Atlas and has not yet disclosed whether it plans to launch a rival bid or sell its holding into Hancock’s offer.

Mineral Resources’ withdrawal means Atlas’ board is likely to recommend Rinehart’s Hancock Prospecting offer in the absence of a superior proposal. It also means all eyes are now on Fortescue Metals Group (ASX: FMG), which still has a 19.9%-stake in the junior miner and has not yet disclosed whether it plans to launch a rival bid or sell its holding into Hancock’s.

The acquisition would give Hancock, which owns the Roy Hill iron ore mine, a chance to use Atlas’ output for blending and to potentially extend the life of the company’s existing mines.

Atlas’ operations are in the iron ore-rich Pilbara region of Western Australia, where it also has undeveloped tenements that could be brought into production with a larger partner.

The junior miner also has land with potential highly sought after port access, which major miners would welcome as they expand output in coming years.

Atlas Iron was one of the first victims of a collapse in iron ore prices three years ago, which forced the company to mothball its mines as it was costing it more to dig up the ore than what buyers were paying for it at the time.

The post Australia’s Mineral Resources drops out of race for Atlas Iron appeared first on MINING.com.

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From:: Infomine

Brixton Metals spins out cobalt assets

By Michael Allan McCrae

Canadian-gold junior Brixton Metals intends to create a standalone cobalt company from its Langis and Hudson projects.

Brixton intends to maintain exposure to the cobalt assets through a retained equity interest in the spin-out company.

The CEO of Brixton, Gary Thompson, hopes to unlock some of the company’s value.

“Given the recent activity in the Cobalt market with higher prices and strong demand from the electrical vehicle market, we think that Brixton and its shareholders would benefit from a spin-out of its wholly owned cobalt-silver asset,” says Thomson in a news release.

“Brixton will tighten its focus on its high quality precious metals projects, and we are confident that these projects will generate shareholder value. If the spin-out transaction is completed, the newly formed company would focus on all the battery metals and would look to gain market share in that sector by advancing its cobalt assets and adding new advanced stage projects in the battery metals space, including vanadium, which has seen a similar growth rate as cobalt.”

Langis and Hudson Bay are past producing mines located 500km north from Toronto, Ontario, Canada. The projects are brownfields exploration staged without defined resources. The high-grade cobalt-silver mineralization occurs as steeply-moderately and in some cases shallow dipping veins within any of the three main rock types: Archean volcanics, Coleman Member sediments and Nipissing diabase. In addition, broad low-grade Co-Ni-Ag mineralization occurs as disseminations within the Archean volcanics. The Langis mine produced 10.4Moz of silver and 358,340 pounds of cobalt and the Hudson Bay mine produced 6.4 Moz of silver and 185,570 pounds of cobalt. Historically, the Cobalt Camp produced 50M pounds of cobalt as a by-product of 500M ounces of silver production.

Brixton wholly owns four highly prospective exploration projects, the Thorn gold-silver and the Atlin gold projects located in NWBC, the Langis-Hudson Bay cobalt-silver projects in Ontario and the Hog Heaven silver-gold-copper project in NW Montana, USA.

Creative Commons image of Northern Ontario vintage postcard featuring Cobalt Street. Photo uploaded by pkdon50.

Written with material from Brixton Metals news release.

The post Brixton Metals spins out cobalt assets appeared first on MINING.com.

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From:: Mining.com

Royalty Company Acquires Silver Stream in Quebec

Source: Streetwise Reports 06/20/2018

A BMO Capital Markets report outlined the pending arrangement between the two entities.

In a June 18 research note, Andrew Kaip, an analyst with BMO Capital Markets, reported that Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) acquired a silver stream from Falco Resources on its Horne 5 project in Quebec for CA$180 million (CA$180M). “The silver stream has an internal rate of return of 14% at spot silver, which in our view is attractively priced relative to recent producing stream transactions in the range of 5–8%,” wrote Kaip.

Per the agreement, Osisko will pay CA$25M when the deal closes, followed by a series of amounts in stages as certain milestones are achieved. The company may increase the stream to 100% of Horne 5’s silver production with an optional CA$40M up front and a final CA$60M when Falco gets project financing.

BMO estimated that via the stream, 1.6 million ounces of silver would be delivered to Osisko annually for 18-plus years starting in 2021. “Osisko will pay a delivery charge of 20% of spot silver to a maximum of US$6 per ounce from a 5 kilometer area of interest,” Kaip indicated. At that rate, the stream has an NPV5% of US$90M.

The transaction going through is contingent upon whether or not Glencore wants to acquire the stream. Should it want to, it has 60 days to notify Falco of its intent.

Along with the silver stream, Osisko bought a CA$7M secured debenture from Falco that “will be converted into units of Falco (one share and a half warrant), contingent on approval of the conversion by disinterested shareholders,” Kaip explained.

Along with a “potential stream conversion at Falco,” Kaip noted that additional catalysts for Osisko include boosted metals deliveries from its Orion deal and further opportunities for streams, royalties and/or equity investments.

On Osisko, BMO has a Market Perform rating and a CA$15 per share target price. The latter reflects a greater than 20% return as the company is trading today at around CA$12.28 per share.

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Wheaton Precious Metals, a company mentioned in this article.

( Companies Mentioned: OR:TSX; OR:NYSE,
)

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From:: The Gold Report

Lithium Explorer Files Resource Estimate Report for Large Nevada Project

Source: Streetwise Reports 06/20/2018

An independent resource estimate report has been completed and filed on SEDAR; a PEA is expected within a few months for a project that has the potential to be a major supplier of lithium products.

Cypress Development Corp. (CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE) recently announced it has filed a National Instrument (NI) 43-101 Technical Report on SEDAR with the title “Resource Estimate Clayton Valley Lithium Project.” Clayton Valley is the company’s 100%-owned lithium project in Nevada, and the report describes the independent resource estimate conducted there by Global Resource Engineering (GRE), a Colorado-based firm. Included within the document is a recommendation for a Preliminary Economic Assessment (PEA), which GRE expects to complete in the next couple of months.

Some key report findings are:

  • The mineral resources are reported using a cut-off grade of 300 ppm Li and constrained to pit shell reflecting a $15/tonne operating cost, $10,000/tonne of LCE price and 80% net recovery to LCE.
  • Total Indicated Mineral Resource of 697 million tonnes at an average grade of 886 ppm Li, or 3.287 million tonnes of lithium carbonate equivalent (LCE).
  • Total Inferred Mineral Resource of 643 million tonnes at an average grade of 852 ppm Li, or 2.916 million tonnes of LCE.
  • Minor changes in the resource model occurred following the May 1, 2018 press release due to adjustments in model boundaries. The proportion of indicated to inferred tonnes increased somewhat while the net lithium tonnes in the model decreased slightly.

A database of 23 drill holes for 1,891 meters drilled by Cypress during 2017 and 2018 was employed by GRE to create the independent resource estimate. ALS Chemex or Bureau Veritas, which are ISO-9000 certified laboratories, assayed all the samples for the project.

Based on the results from laboratory testing and confirmation leach testing an overall lithium recovery of 80% was employed for the mineral resource. Early results have shown that lithium extractions of greater than 80% can be achieved.

The overarching finding from the work conducted by GRE is that the Cypress’ Clayton Valley Lithium Project has the potential to be a major supplier of lithium products in the world.

Cypress Development Corp. is a mining company headquartered in Vancouver with lithium and zinc/silver projects in the state of Nevada.

Read what other experts are saying about:

Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Cypress Development. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: CYP:TSX.V; CYDVF:OTCQB; C1Z1:FSE,
)

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From:: The Energy Report

Is It Time to Get Into Uranium?

Source: Maurice Jackson for Streetwise Reports 06/20/2018

Maurice Jackson of Proven and Probable explores the prospects for investment in uranium with Mickey Fulp, the Mercenary Geologist.

Maurice Jackson: Joining us for a conversation is Mickey Fulp, the Mercenary Geologist, as we will discuss Is it time to get into Uranium. Mickey, we have some interesting developments going on in uranium. You’re one of the most trusted names on the subject. I know a number of our speculators want to hear more about uranium. Beginning domestically, what do you see happening in the U.S. under the Trump administration that may impact uranium?

Mickey Fulp: Well, there’s a couple of things the Trump administration has done that are positive for uranium. First off would be the recent National Security Council resolution that would require utilities to buy their electricity from U.S. nuclear power plants and coal plants. This is an effort, once again, to put people back to work in the extractive industries, namely uranium, nuclear power plants, coal mining and coal fire power plants. In addition, not all of it has to do with Trump, but it’s a movement that includes the Congress and some uranium companies, etc.

The U.S. Department of Energy (DOE) under Secretary Rick Perry, who was the governor of Texas, a significant uranium producing state in the past, restricted the DOE sales and barters of U.S. stockpiles of U308. This year they’ve cut those back. During the Obama administration, five to seven million pounds a year were dumped on the market to support the cleanup of the Portsmouth enrichment facilities in Ohio, and that was basically a union operation, to keep 800 union jobs going. Now there is a House bill that is passed out of committee—it still has to be passed out of the Senate and the House and the 2019 budget—but they are funding for this out of the budget this year versus the DOE untimely dumping uranium on the spot market.

In addition, the DOE has recently killed the mixed oxide fuel project in South Carolina. Mixed oxide fuel is the waste leftover from nuclear power plants. It’s processed and can be reburned, so that’s certainly going to help uranium domestic miners. I’m not sure if it really helps the U.S. position with regards to our significant imports of foreign uranium.

Finally, in January, two of the largest uranium producers in the U.S., URZ Energy Corp. (URZ:TSX.V; URZZF:OTC) and Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.American), filed a Section 232 petition with the U.S. Department of Commerce, and that has to do with national security and the fact that last year we imported 98% of our uranium needs. This proposal would require U.S. federal utilities and agencies to buy all their uranium from domestic uranium miners and also limit imports of foreign uranium to 75% of our needs, with the remaining to come from domestic uranium miners. There’s a whole number of things in the U.S. that look positive for the uranium industry, and all those have happened in 2018.

Maurice: All of these sound like they can be great catalysts for uranium, but to add on to that we have more information here coming from the international standpoint out of Kazakhstan. For someone not familiar with Kazakhstan, how important is the country in this discussion?

Mickey: Well, it is quite important. They’ve become the world’s largest uranium producer over the last 15 years, by far the world’s largest. They now produce on the order of 40% of the world’s uranium, and they have really supplied the increasing demands over the last 15 years. We’re using more and more uranium every year because we have more and more reactors, so most countries—most mines—have either maintained their status quo or have dropped in uranium production, and that’s been made up by the Kazakhstan mines, the ISR [in situ recovery] mines in Kazakhstan, so they cut their production 5.5% in 2017, and they are going to cut it another 7.5% this year. I think the high was something on the order of 65 million pounds, and that will be down to about 56 million pounds for 2018. That basically has to do with the low price of uranium, which today is $23.50. No one can make money at those prices.

Maurice: Which leads to my next question here. Not holding you to a price, but the aforementioned indicates that you would see uranium prices eventually move up. Is this the right time to get some issuers?

Mickey: Well, I’ve been saying it’s the right time for quite some time. If you’re contrarian, we all know that uranium’s going to come back at some point, and it’s going to come roaring back. We see now that hedge fund speculators from Wall Street to the Silicon Valley are starting to position themselves. Kazakhstan has just sponsored a new physical uranium vehicle called Yellow Cake, and they’re going to devote 25% of their annual production to this storehouse of physical uranium, so that’s 14, 15 million pounds a year. It looks to me like the time is coming, and it could be eminent. This happened before, when the speculators came into the market and especially the hedge funds, from 2005 to 2007. That’s when uranium went from $10 a pound in 2004 to its peak of $135 a pound in the summer of 2007.

Maurice: It’s like Rick Rule once shared with me. Everyone is a contrarian when the price moves up. I agree with you. This is the time to be there.

Mickey: Well, it really is, and there’s one thing: Rick and I, we do share a lot in common. Number one, we share a birthday, but number two, we share an investing philosophy that we stick to, and that’s contrarianism. We talk about this on occasion, and if you’re contrarian, you’ve got to have patience. You get in …read more

From:: The Energy Report