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Lithium demand from Electric Vehicles, “EVs,” alone could grow 30% annually for years to come

Posted by AGORACOM-JC at 12:38 PM on Thursday, July 23rd, 2015

Lithium demand from Electric Vehicles, “EVs,” alone could grow 30% annually for years to come

Jul 17, 2015 | Posted by: Peter Epstein

 

  • Conventional wisdom seems to say that overall lithium demand will grow by 8%-12% annually
  • Everything’s going electric, lithium-ion batteries large & small will reign supreme

A short time ago, manufactures released hybrid gasoline-electric cars so that they could claim to be green companies. That has completely changed, now the race is on for market share, volumes and profits.

I’m on record as stating that demand for lithium will grow faster than most believe. Conventional wisdom seems to say that overall lithium demand will grow by 8%-12% annually. I understand why that range has been adopted, it’s already a fast growth rate by historical standards. Commodity and natural resource demand is frequently said to increase at, “the rate of GDP growth.” I wonder which country’s GDP rate is being referred to, hopefully not the U.S. A prime reason for my bullishness on lithium demand, with overall growth closer to 20% a year, is that Tesla is attracting A LOT of attention and competition. I will spare readers the obligatory rattling off a list of Tesla’s growing competition. But there’s much more to the story than Tesla.

I believe that hybrid and plug-in hybrid vehicles will be phased out sooner rather than later. Any manufacturer that can’t deliver a full EV within the next 2-4 years might as well start working on flying cars, previously known as airplanes. This paradigm shift to EVs is not 5-10 years away, it’s right around the corner. Hundreds of millions or even billions of dollars are deployed on new car platforms, why would it be any different for the builders of EVs? A short time ago, manufactures released hybrid gasoline-electric cars so that they could claim to be, “green” companies. That’s completely changed, now the race is on for market share, volumes and profits.

RANGE ANXIETY!!

“Range anxiety.” That’s the cool way of saying that prospective buyers of EVs are on the fence, until they’re confident that a massive infrastructure of electric charging stations is in place. Guess what? That’s nonsense. According to the U.S. Department of Transportation, average daily driving per capita is about 40 miles. Commuters that drive 100-150 miles or more round trip are the exception, not the rule. Does 40 miles per day sound too low? That’s the U.S. average, the range around that average is probably fairly large. Take for example city dwellers that don’t drive daily.

If one were talking about natural gas stations, “range anxiety” would be a serious concern. Recall that T. Boone Pickens has been calling for the replacement of gasoline and diesel fueled cars with cleaner burning natural gas. In that highly unlikely scenario there would have to be a huge build out of natural gas stations. Not so with EVs. Electric Vehicles won’t require an epic rollout of thousands upon thousands of charging stations. As EVs evolve, there will be dozens of models with driving ranges in excess of 100 miles. By then, range anxiety will disappear. Instead of searching for a charging station, one’s garage electricity outlet will do the trick.

Everything’s going electric, lithium-ion batteries large & small will reign supreme

Admittedly there are occasions when long distances are called for. In this circumstance, let’s assume that a gasoline powered vehicle remains the best alternative. That still allows for EVs to potentially become 1 of the 2 vehicles in a suburban family. That equates to a staggering amount of lithium demand without the need of ubiquitous charging stations. The same will be the case for bikes, motorcycles, mail delivery vehicles and buses, (among others). That’s why I believe that the annual growth rate of lithium demand for EVs alone could be as high as 30%, a tripling in 5 years. If the fastest growing segment were to triple (30% growth annually from 2016-2020), that suggests 20% overall demand growth for lithium is not a crazy assumption.

Without range anxiety, EVs will become ubiquitous, not charging stations! This is especially true given that Nissan, Ford, GM and Toyota, (among others) will be coming out with a number of inexpensive EVs with price tags in the $20k-$25k range sooner rather than later. That’s before considering favorable State and/or Federal tax treatment. Importantly, the lower price point EVs will not necessarily use less lithium. Not if they want to achieve high milage per charge. Miles per charge will be a key determinate of customer preference. Note that inexpensive EVs will benefit as much as high end EVs, from lower annual operating expenses by plugging in instead of filling up.

Dajin Resources Corp. (DJI.V) / (DJIFF) a high risk / high return opportunity

While the available supply of lithium is difficult to forecast, and will come on-stream unevenly, demand growth for EVs alone could be two or three times that of today’s consensus. Clearly, the demand for lithium will be lower or higher than expected. Readers probably know which side of the coin I’m betting on. That’s why I like a small cap, pure-play lithium company named Dajin Resources Corp. (DJI.V) (DJIFF). Combined U.S. and Canadian trading volume is averaging roughly 625,000 shares per day. The company has no debt and a solid balance sheet. Warrant exercises have been helping to maintain adequate cash balances.

Taking a contrarian view by being substantially more bullish on lithium demand from EVs, calls for an investment approach that differs from those who follow the crowd. Following the crowd is prudent if conventional wisdom prevails. However, for those like me who believe overall demand for lithium could grow by 20% annually, (30% for EVs alone), a way to articulate a bullish position is through juniors such as Dajin Resources. Taking a contrarian view entails both higher risk and higher reward. Unlike following the crowd though, an investment in Dajin Resources could play off quite handsomely. With properties in both Nevada’s Lithium Hub, located approximately 12 km northeast of Rockwood’s decades long Nevada operations and a very large land position in Argentina’s, Lithium Triangle. This company’s tock is strongly positioned to move considerably higher upon an increase in lithium prices and/or a rebound in the morbid TSX Venture Exchange.

Disclosure:

Dajin Resources (ticker DJI.V) (DJIFF) – Mr. Epstein owns shares of this company. Investors should consult with their own advisors before making investment decisions. Mr. Epstein is not an investment advisor. The article on this company on EpsteinResearch.com should be viewed in this context. This company is highly speculative and not suitable for all investors. As of [5/1/15] Dajin Resources is a Sponsor of EpsteinResearch.com on a month-to-month basis.

Read more at: http://www.miningfeeds.com/2015/07/17/lithium-demand-from-electric-vehicles-evs-alone-could-grow-30-annually-for-years-to-come/#sthash.qvlZyaHW.dpuf

The Molycorp Bankruptcy – Doom or Dawn for Rare Earth Elements?

Posted by AGORACOM-JC at 4:29 PM on Wednesday, July 22nd, 2015

  • Recent bankruptcy (chapter 11) filing by Molycorp prompted many comments about the future of this market sector.
  • Rare earth elements are key components in almost all technology products these days, ranging from smartphones and flat screen TVs to all sorts of electric motors, high performance metal alloys and even automotive catalysts.
  • “If anything, Molycorp’s troubles are a good thing for prices”, commented Matthias Rueth, president of Tradium GmbH, a large REE trader. In fact, because there is so little substitution, the market for REEs is not elastic at all in terms of demand.

By Kitco News
Tuesday July 21, 2015 10:19

The recent bankruptcy (chapter 11) filing by Molycorp, the U.S.’ only producer of rare earth elements, prompted many comments about the future of this market sector. Once an icon for independence from China for these crucial materials the company now appears to have fallen victim to a sustained period of low prices.

Rare earth elements are key components in almost all technology products these days, ranging from smartphones and flat screen TVs to all sorts of electric motors, high performance metal alloys and even automotive catalysts.

Image courtsey of Molycorp

Analyst comments that Molycorp’s demise was in part due to substitution of rare earth elements are lacking substance, though. Despite statements by Tesla published a while ago saying the electric motors used for propulsion of their Model S are free from REEs, there are plenty of REEs in many other places of the car (power windows, power tailgate, electric seat adjustment, power mirrors, speakers, cameras, sensors,… ect.).

Even comments talking about “the end of the line” for Molycorp seem inaccurate. Only the company’s North American operation is affected by the chapter 11 filing; plants in other parts of the world remain untouched, at least for the time being. The company also reports on its website that short-term financing has been obtained, making a debt restructuring plan and return to normal operation a possibility.

“If anything, Molycorp’s troubles are a good thing for prices”, commented Matthias Rueth, president of Tradium GmbH, a large REE trader. In fact, because there is so little substitution, the market for REEs is not elastic at all in terms of demand. After the price explosion in 2010, more new operations were encouraged to add capacity than was healthy for the market. As a result, prices plummeted in subsequent years to all-time lows.

Recent months did, however, see a much improved conscience in China with respect to environmental and safety issues leading to higher production costs that are now more in line with international levels. On top, China restructured its taxes and tariffs to comply with WTO rulings. The country also shut down some illegal mines, leading to increased legal export volumes. All signs indicate that China is regaining control over this market, which – if successful – would have a positive impact on prices.

Markets will continue to be cyclical but growing. The premise remains: in the absence of non-physical markets for REEs, investing in this exciting group of metals will remain a matter of long term strateiges.

Bodo Albrecht
President – BASIQ Corp.
www.basiq.com
www.bodoalbrecht.com

Source: http://www.kitco.com/news/2015-07-21/The-Molycorp-Bankruptcy-Doom-or-Dawn-for-Rare-Earth-Elements.html

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Brazilian and North American fertilizer demand to rally

Posted by AGORACOM-JC at 12:56 PM on Monday, July 20th, 2015

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  • Global fertilizer demand set to recover in the second half of 2015
  • PotashCorp reported that it expects the recent rise of global planted acreages to slow
  • Brazilian fertilizer purchases “are expected to accelerate in the third quarter and could lead to a more condensed delivery period”

Global fertilizer demand is set to recover in the second half of 2015, as farmer demand from North America and Brazil recovers, Canadian producer PotashCorp has said.

PotashCorp also reported that it expects the recent rise of global planted acreages to slow, as agricultural commodity markets cool.

North American potash demand is expected to rise as farmers address a mounting deficit in application.

Brazilian potash demand is expected to accelerate ahead of the country’s main planting season, helped by a recent improvement in crop prices, and a recently announced farm credit programme.

Improved demand

“Following a slower start in Brazil, we anticipate potash imports will accelerate during the third quarter,” PotashCorp said.

Brazilian fertilizer purchases “are expected to accelerate in the third quarter and could lead to a more condensed delivery period,” PotashCorp Said.

“Potash demand in Brazil slowed in first-half 2015 as farmers were concerned about weaker crop prices, the lower purchasing power of the Real and delayed credit availability from the government,” the report said.

The same dynamics will be seen in urea, with imports improving in the third quarter of 2015, in line with the same time last year, when imports reached a record 4m tonnes over the year. Brazilian phosphate imports are also seen rising next quarter.

Tentative buyers

North American demand is also expected to rise against the first half of the year, leaving full year sales down from the record 63m tonnes achieved in 2014 but remaining “at historically strong levels”.

“In North America, demand was lower in the first half of 2015 but is expected to be similar to historical levels in the second half”, the report said.

“Buyers were tentative in the first half as the spring application window was shortened and farmers weighed the impact of lower crop prices,” the report said, also noting record offshore imports pressuring North American producer sales.

“We expect healthy demand in the second half as crop prices have improved and farmers look to replenish soil nutrients after recent large harvests,” said PotashCorp.

Mounting deficit

The increased North American demand is driven by a mounting potash deficit.

PotashCorp notes that application rates have held steady in North America over the past 30 years, while yields per acre have increased significantly thanks to the use of higher-yield cultivars.

As a result of this, PotashCorp estimates that since 2010, the depletion of potash in US farmland soil has exceeded application by more than 7m short tons per year.

“Closing this gap would require farmers to nearly double application rates compared to current levels,” PotashCorp said.

The group notes application deficits across US growing regions, with the largest in the Central Plains.

“Relatively large potash application deficits were found in most major crop producing regions of the US,” the report said.

Farmland growth to ease

PotashCorp also noted that expects the rate of increase in global planted acreages to slow.

By breaking new ground, and by double and triple cropping existing ground, PotashCorp reports that farmers have added over 160 million planted acres to agricultural production in the past ten years, “an area similar to that of the US corn and soybean crop”.

“In response to rising global demand and higher crop prices, farmers have increased planted acreage over the past decade,” PotashCorp said.

As global commodity prices slow, PotashCorp expects that the rate of increase in planted area could slow, and “some marginal acreage could be removed from production”.

Chinese demand

In China, PotashCorp expects “strong farmer affordability and agronomic need will continue to have a positive impact on potash demand in 2015″.

Supply contracts to China have already been negotiated by the North American potash cartel Canpotex, of with PotashCorp is a member.

Canpotex has also signed supply deals to Indian groups, where PotashCorp expects “continued growth in 2015″.

PotashCorp estimates Indian imports at 5m tonnes over the whole 2015.

Kharif planting

The group reports that India’s monsoon “got off to a strong start in June, which supported Kharif crop planting and fertilizer demand”.

Kharif crops, usually grains and pulses, are planted with the start of the monsoon rains.

PotashCorp expects Indian urea imports to slow from the recent rapid pace, but leaving 2015 purchases well above last year.

India is expected to import over 5m tonnes of diammonium phosphate in 2015, compared to 3.6m in 2014.

Source: http://www.agrimoney.com/news/brazilian-and-north-american-fertilizer-demand-to-rally–8586.html

Liberty Star Announces Voting Results for Its Annual & Special Meeting of Shareholders

Posted by AGORACOM-JC at 5:22 PM on Thursday, July 16th, 2015

  • Total of 882,574,397 shares representing 75.97% of the issued and outstanding shares as of the Record Date (June 9, 2015) were voted at the Meeting
  • All nominated directors were elected, shareholders voted for the ratification of the appointment of MaloneBailey LLP as the Company’s independent registered accounting firm (auditors)

Liberty Star Uranium & Metals Corp. (“Liberty Star” or the “Company”) (OTCQB: LBSR) is pleased to announce the voting results from its 2015 Annual & Special Meeting of Shareholders (the “Meeting”).

A total of 882,574,397 shares representing 75.97% of the issued and outstanding shares as of the Record Date (June 9, 2015) were voted at the Meeting.

All nominated directors were elected, shareholders voted for the ratification of the appointment of MaloneBailey LLP as the Company’s independent registered accounting firm (auditors), and shareholders voted for amending the Company’s articles of incorporation to increase the number of authorized shares from 1,250,000,000 to 6,250,000,000. Two advisory votes were considered: shareholders voted for the approval of a non-binding advisory vote on the compensation of our named executive officer, and voted for a non-binding advisory vote that the compensation of our named executive officers should be held every three years.

Voting totals and Minutes of the Meeting will be posted to http://www.libertystaruranium.com/ soon.

“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150716006458/en/

 

UBR Closes Additional Financing for Work Program to Evaluate Potential of its High Purity Quartz Deposits

Posted by AGORACOM-JC at 12:10 PM on Thursday, July 16th, 2015

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  • Announced that it has closed on July 16, 2015 an additional non-brokered private placement comprised of 1,238,012 Flow-Though Units at $0.055 per Unit for gross proceeds of $68,090.66.
  • Net proceeds from the Private Placement will be used to finance the implementation of the Corporation’s go forward plan for Q1/Q2 2015 and was predicated by our press release on March 2, 2015 in which we announced “Major Producer Confirms Interest in Purchasing Significant Tonnage of High Purity Quartz From Uragold Quartz Property in Quebec”

Montreal, Quebec / July 16 2015 – Uragold Bay Resources Inc. (“Uragold”) (TSX Venture: UBR) is pleased to announce that it has closed on July 16, 2015 an additional non-brokered private placement comprised of 1,238,012 Flow-Though Units (“Unit”) at $0.055 per Unit for gross proceeds of $68,090.66. The net proceeds from the Private Placement will be used to finance the implementation of the Corporation’s go forward plan for Q1/Q2 2015 and was predicated by our press release on March 2, 2015 in which we announced “Major Producer Confirms Interest in Purchasing Significant Tonnage of High Purity Quartz From Uragold Quartz Property in Quebec” and our press release on April 13, 2015 in which announced “Uragold subsidiary, Quebec Quartz, signs MOU with Dorfner Anzaplan to evaluate potential of its high purity quartz deposit.”

Each Unit is comprised of one (1) common share and a half (1/2) common share purchase warrant (“Warrant”) of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month holding period until November 17, 2015.

The Company paid a cash finder’s fee of $6,809.06 and issued 123,801 warrants to Dundee Capital Market. Each warrants will give the right to purchase one (1) common share at 5.5 cents for 24 months.

Patrick Levasseur, President and COO of UBR stated, “We are extremely please that the developments of Quebec Quartz’s high purity quartz projects continue attracting investors interest. Our recent announcement regarding interest from a major producer in purchasing significant tonnage of our high purity quartz and our collaboration with Anzaplan are major milestones in our quartz strategy. We have started the field work required to start determining the full potential of our industry leading quartz properties.”

About UBR- Quebec Quartz

UBR- Quebec Quartz is the largest holder of distinct High Purity Quartz properties in Quebec, with over 3,500 Ha under claims. Despite the abundance of quartz, very few deposits are suitable for high purity applications. High Purity Quartz supplies are tightening, Prices are rising, Exponential growth forecasted;

Quartz from the Roncevaux property successfully passed rigorous testing protocols of a major silicon metal producer confirming that our material is highly suited for their silicon metal production.

In addition to becoming a supplier of lump quartz for silicon metal production, Quebec Quartz’s objective is to transform its High Purity Quartz into Ultra High Purity Quartz Sands to generate significantly greater profits and become a leading supplier of Ultra High Purity Quartz.

About Uragold Bay Resources Inc.

Uragold Bay Resources is a TSX-V listed Gold and High Purity Quartz exploration junior focused on generating free cash flow from mining operations. Our business model is centered on developing mining projects suited for smaller-scale start-up and that could potentially generate high yield returns. Uragold will reach these goals by developing Quebec’s first paleoplacer mine in 50 years, the Beauce Placer Project and, in partnership with Golden Hope Mines, the Bellechasse-Timmins Gold Deposit.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States and may not be offered or sold within the United States or to, or for the account or the benefit of, U.S. persons (as defined in Regulation S un der the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.

For further information contact

Bernard J. Tourillon, Chairman and CEO
Patrick Levasseur, President and COO

Tel: (514) 846-3271(514) 846-3271(514) 846-3271(514) 846-3271
www.uragold.com

V-Love(tm) Available for Canada wide Distribution through Amazon

Posted by AGORACOM-JC at 8:47 AM on Tuesday, July 7th, 2015

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  • Signed with Amazon.ca to sell V-LoveTM across Canada
  • Company’s first shipment to the Amazon.ca main distribution facility in Mississauga, Ontario has been received and V-LoveTM is ready for online consumer purchase throughout Canada

VANCOUVER, BC / July 7, 2015 – Enertopia Corporation (ENRT-OTCBB) (TOP-CSE) (the “Company” or “Enertopia”) is pleased to announce it has signed with Amazon.ca to sell V-LoveTM across Canada.

The Company’s first shipment to the Amazon.ca main distribution facility in Mississauga, Ontario has been received and V-LoveTM is ready for online consumer purchase throughout Canada. One can simply go to amazon.ca and enter vlove in the search field to locate and purchase V-LoveTM

V-LoveTM is pH balanced specifically for women and provides lubrication and a moisturizing feeling to sooth vaginal dryness.


Click Image To View Full Size

“We are very pleased to now have two major channels for online distribution in Canada as we move forward with our consumer outreach programs,” stated President Robert McAllister.

About Enertopia

The Company’s mission is to empower people with a better way of living through healthy lifestyle choices in helping you live your life your way. Our core values of honesty, integrity, and commitment help to define our corporate practices and demonstrate our dedication in helping individuals whether they are encountering health issues based on age, diet or have suffered a traumatic physical, mental or an emotional event.

Enertopia’s shares are quoted in Canada with symbol TOP and in the United States with symbol ENRT. For additional information, please visit www.enertopia.com or call Robert McAllister, the President: (250) 765-6412

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, potential and financing of its medical marihuana projects, evaluation and sale of sexual creams and other items, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions that are forward-looking statements. Such forward-looking statements are estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements., foreign exchange and other financial markets; changes of the interest rates on borrowings; hedging activities; changes in commodity prices; changes in the investments and exploration expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Enertopia Corporation operates. The User should refer to the risk disclosures set out in the periodic reports and other disclosure documents filed by Enertopia Corporation from time to time with regulatory authorities. There is no assurance that V-Love TM will have any meaningful impact on the Company or the Company will be able to obtain future financings.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

East Kemptville tin mine could resume production in a few years

Posted by AGORACOM-JC at 12:28 PM on Monday, July 6th, 2015

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  • Company granted a special licence by the province in March of this year for the East Kemptville Mine formerly owned by Rio Algom.
  • If all goes as planned, the mine could resume operation within 3 to 4 years

By Yvonne Colbert, CBC News Posted: Jul 06, 2015 6:00 AM AT Last Updated: Jul 06, 2015 6:00 AM AT

Avalon Rare Metals Inc. plans to invest $1.3 million into preliminary work to determine the feasibility of re-starting the East Kemptville Mine.Avalon Rare Metals Inc. plans to invest $1.3 million into preliminary work to determine the feasibility of re-starting the East Kemptville Mine. (Adrian Wyld/Canadian Press)

 

A Canadian mining company and politicians in southwest Nova Scotia are hoping an idle tin mine in the area will help the economy rebound.

Toronto-based Avalon Rare Metals Inc. was granted a special licence by the province in March of this year for the East Kemptville Mine formerly owned by Rio Algom.

Avalon plans to invest $1.3 million into preliminary work to determine the feasibility of re-starting the mine.

The site is located about 45 kilometres northeast of Yarmouth.

Rio Algom closed the mine in 1992 because of falling tin prices, but Avalon president and CEO Don Bubar says a lot has changed since then, including a recovery in the price of tin and potentially higher prices in the future.

“There’s [also] lots of new demand for tin from its new application in the use of lead-free solders and electronics,” says Bubar.

He says the mine also contains the rare metal indium which was not previously mined at the site. Mining it could make the mine even more viable.

“In the past it had limited commercial use, but now it’s got growing application in electronics, is in demand,” said Bubar.

He expects a dozen people to be employed at the remote site this summer, the majority of them Nova Scotians.

If the project moves forward, he said as many as 200 people could be employed there.

“We know that part of the province suffers from high unemployment,” he said. “There’s a good skilled labour force there that would love the opportunity to work in an operation like that close to home, so we think we can fill most of our employment needs in Nova Scotia,” said Bubar.

An economic boon for the area

All of this is music to the ears of politicians in the nearby town of Shelburne. Mayor Karen Harris-Matattall says the prospect of that many jobs is exciting in an area that has been struggling.

“Like most rural communities, we’re losing people because they need employment and it’s a struggle to get employment in rural Nova Scotia, so this may well be something that’s going to work out very well and be very positive for this community,” she said.

The mayor said the town is also hoping to convince the company to use the port of Shelburne to ship its product.

Bubar says if all goes as planned, it will be three or four years before the mine is operating.

Source: http://www.cbc.ca/news/canada/nova-scotia/east-kemptville-tin-mine-could-resume-production-in-a-few-years-1.3137873

Avalon banks on new ‘blood metals’ rule for Canada’s tin mine success

Posted by AGORACOM-JC at 11:34 AM on Tuesday, June 30th, 2015

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  • Proceeding with a $1.3 million work program in South-western Nova Scotia to reopen a historic tin-indium mine.
  • Working on completing a Preliminary Economic Assessment for the project by November this year, is betting on recently approved legislation in Europe, which bans all products containing conflict minerals from war zones in Africa.

Canada’s Avalon Rare Metals (TSX:AVL), until now mostly known for its incursion in the rare earths market, is proceeding with a $1.3 million work program in South-western Nova Scotia to reopen a historic tin-indium mine.

The company, working on completing a Preliminary Economic Assessment (“PEA”) for the project by November this year, is betting on recently approved legislation in Europe, which bans all products containing conflict minerals from war zones in Africa.

Speaking at the 128th Annual Meeting of The Nova Scotia Mining Society late in June, Avalon’s President and CEO Don Bubar said the European Union anti “blood metals” rules, together with the U.S. Dodd-Frank Act, which forces US stock exchange-listed companies to disclose the use of minerals from a conflict zone in their supply chains, gives Avalon’s tin project huge advantages.

The miner was granted a special exploration licence to search 22 claims totalling 356.12 hectares. It also received a $40,000 project grant from the province earlier this year to assist with test drilling.

“We’re hopeful, at this point,” Natural Resources Minister Zach Churchill told MINING.com in an interview mid-June, adding that since market prices for tin have improved, the Nova Scotia government is optimistic about the prospects at the location.

“Any activity on that site is encouraging, but we need to wait and see what the results of the ongoing exploration drilling are before we rise our hopes too much,” Churchill said. He also noted there would have to be an environmental assessment done before any work can resume at the site.

Victim of falling prices

Avalon banks on new ‘blood metals’ rule for Canada’s tin mine success

Avalon’s President and CEO, Don Bubar, in March 2014. (Image courtesy of Avalon)

The Rio Algom tin mine in East Kemptville operated in the area from the mid-1980s to 1992, employing 200 people from Yarmouth and Shelburne counties. At the time, it was North America’s only open-pit tin mine, but it had to close after prices for the metal dropped to levels reaching well below US$3 per pound.

And while the metal used in electronics and packaging is now trading at more than double that price, it is down 23% so far this year, which makes it the worst-performing industrial metal on the London Metal Exchange.

No wonder analysts are not optimistic about the short-term outlook for it. Steve Hardcastle, head of client services for industrial commodities at Sucden Financial Ltd. in London, is one of them. He told Bloomberg last week that tin prices were set for the biggest first-half decline in 25 years because of abundant supplies and weak demand.

“The long-term future for tin is not brilliant, and it’s been reflected in the price,” Hardcastle said. “The big unknown 18 months ago was Myanmar, which is now filling the gap.”

In addition to East Kemtpville, Avalon Rare Metals has projects underway in Separation Rapids near Kenora, Ontario and Nechalacho, Thor Lake, in the North West Territories.

Source: http://www.mining.com/avalon-banks-on-new-blood-metals-rule-for-canadas-tin-mine-success/

Tin price bulls coming out of hibernation

Posted by AGORACOM-JC at 11:29 AM on Tuesday, June 30th, 2015

 

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  • Shrinking tin stocks, dwindling supplies from Myanmar and new Indonesian rules to curb exports are at last creating conditions for bulls who for some time have expected to see higher prices. 

A labourer takes down tin boxes inside a tin container recycling factory in a slum area in Mumbai January 12, 2015. REUTERS/Danish Siddiqui

A labourer takes down tin boxes inside a tin container recycling factory in a slum area in Mumbai January 12, 2015.
Reuters/Danish Siddiqui

LONDON Shrinking tin stocks, dwindling supplies from Myanmar and new Indonesian rules to curb exports are at last creating conditions for bulls who for some time have expected to see higher prices.

But the optimism is tinged with caution as much depends on whether top exporter Indonesia can limit its shipments abroad, something it has failed to do in recent months.

That’s one reason why benchmark tin prices on the London Metal Exchange (LME), at around $15,000 a tonne, are down about 25 percent since early January this year.

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Stocks of tin at 6,810 tonnes in LME-approved warehouses are about half the levels seen in December, the lowest in more than six years and only a fraction of global consumption estimated at 350,000 tonnes this year.

“There is a clear trend toward a depletion of stocks,” said Nicholas Snowdon, metals analyst at Standard Chartered.

“Indonesian exports will be increasingly constrained in the second half of the year. Chinese refined production has become more constrained with less Myanmar concentrate and altogether that points to a tightening trend in the market.”

Stronger growth in top consumer China in the second half of this year and the feed-through into demand for semiconductors and tin are also expected to be a plus for prices.

Solder used in electronics is the most important consumer of tin, accounting for about half of global use of the metal.

To halt illegal exports, Indonesian producers from Aug. 1 will need to prove that their tin comes from government-certified mines before it can be shipped.

One factor that has weighed on global prices is a surprising surge in supply as China’s imports of tin ore from Myanmar spiked, with shipments up over 80 percent so far this year.

But May imports at 21,456 tonnes are down 35 percent from April, which suggests the peak may already have been seen. Additionally, the concentrate from Myanmar is said to contain little tin.

“Some of it can be as low as 10 percent, most internationally traded concentrate has 55 to 75 percent tin,” said Peter Kettle, manager of markets at industry group ITRI.

“To some extent, people (in Indonesia) are exporting while they can … volumes will probably fall after August 1 when there will be more scrutiny of export licenses.”

However, there are doubts the new rules will be applied rigorously, and if they are, traders expect metal to be smuggled out of the country.

The country’s tin smelters in March agreed to limit monthly exports at 4,500 tonnes, which was subsequently lowered to 4,000 tonnes. But exports in April, May and June exceeded that number.

“The market needs to see exports much lower before it believes the curbs will work,” said Stephen Briggs, metals analyst at BNP Paribas. “The bullish side is low stocks.”

(Editing by Veronica Brown and Dale Hudson)

Source: http://www.reuters.com/article/2015/06/29/us-tin-supply-prices-idUSKCN0P902C20150629

Liberty Star Announces Annual and Special Meeting of Shareholders and Outlines Management Presentation at Meeting

Posted by AGORACOM-JC at 9:58 AM on Tuesday, June 23rd, 2015

Liberty Star Uranium & Metals Corp. (“Liberty Star” or the “Company”) (OTCQB: LBSR) will hold a combined Annual and Special Meeting of Shareholders (the “Meeting”) on Wednesday, July 15, 2015 at San Miguel Club House, 5565 N. Binghampton, Tucson, AZ 85712 for the following purposes:

  1. To ratify the appointment of our independent registered public accounting firm
  2. To elect James Briscoe, Gary Musil, John Guilbert, Keith Brill, Peter O’Heeron and Brett Gross as directors
  3. To approve an amendment to our articles of incorporation to increase the number of authorized shares of our common stock from 1,250,000,000 to 6,250,000,000
  4. To hold a non-binding advisory vote on the compensation of our named executive officer as disclosed in the proxy statement
  5. To hold a non-binding advisory vote on whether a non-binding advisory vote on the compensation of our named executive officers should be held every one, two or three years
  6. To transact such other business, if any, as may properly come before the Meeting

Doors will open at 1:00 PM (PDT) for a meet & greet. Brief management presentations and the formal Meeting will commence at 1:30 PM, followed by a question & answer session.

Liberty Star cordially invites you to attend this event. If you plan to attend, or have a question for the question & answer session, please respond by Friday, July 10:

Call 520-425-1433
mailto:Info@libertystaruranium.com

For additional information visit the Annual/Special Meeting FYE 1.31.2015 page on our website.

During the last quarter, a variety of positive events have occurred. CEO/Chief Geologist will discuss recent events at the Meeting in a short presentation, including the following:

1.

Increasing accuracy of the analysis of our ZTEM is going forward. It appears there may be a horizontal shallow zone that could contain copper oxides that would be leachable. We will work on a more shallow drill program during this very difficult fund raising period. Later, we will extend the depth of holes to test the sulfide zone indicated by the ZTEM geophysics.

2.

On June 19th Geotech delivered three dimensional (3D) plots of the magnetics and electromagnetics (EM) with our geochem data superimposed on the geophysics so that the relationship is even more clearly depicted than it was in the 2D treatment. This 3D treatment is very computer intensive and was not easily possible until recently. These data are posted in our web page in the Hay Mountain Image Gallery: take a look.

3.

Also sent to our website is a report about the Balboa discovery (Cobre, Panama) presented at the PDAC in 2014, and just released after the recent Geological Society of Nevada meeting, this Spring. The Balboa discovery is a recent blind discovery in Panama and now is part a cluster of six porphyry copper deposits previously discovered in close proximity to one another by more traditional exploration techniques. Balboa was discovered completely by use of the ZTEM geophysical method. This is very similar to what we believe we have at Hay Mountain – a cluster of porphyry copper deposits indicated by ZTEM and corroborated by geochemical analysis of clippings of twigs of desert vegetation collected over several square miles. This is called biogeochemistry or veggie geochemistry, and has been verified by Liberty Star and predecessors over the last 20 years and by other geochemists.

4.

We and every other exploration company have had a very tough time in the financial climate over the last several years; this includes raising sufficient capital to execute our very carefully planned exploration program at Hay Mountain which we believe will result in a world class cluster of porphyry copper deposit, similar to Balboa and others.

5.

We have been in discussions with a funder that suggests we should invest in near surface, high grade, quickly minable projects that will begin to generate production cash quickly. We find this strategy very compelling and we are in discussions with this funder to assist us in this strategy. We will continue to work methodically with low expenditure of funds to advance Hay Mountain. When base and precious metal projects of large scale can attract funding we will use these funds to bring the large Hay Mountain Project forward.

a.

In the last three weeks we have taken a look at about 10 targets that would fit the above suggested approach.

b.

We have chosen two projects that we think are promising:

i.

One that we have extensive data on is for high grade silver and gold near surface mineralization right here in Arizona, that with recently available mining equipment and exploration technology we can move forward relatively quickly and believe we can be mining within a year or less.

ii.

The second site in Utah is for near surface, high grade uranium mineralization which has been compiled and become available during the most recent downturn in the uranium price. Again this would be from high grade, near surface bodies that could be mined at low cost, with the same mining and technological equipment, mentioned in i. above.

6.

Mining Engineer-Lawyer, Liberty Star Director Brett Gross has been participating with me and will continue to participate in the above and future activities of project and corporate development.

 

“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.

Forward-Looking Statements

Statements in this news release that are not historical are forward-looking statements. Forward-looking statements in this news release include all our planned drilling programs; our belief that the exploration program at Hay Mountain will result in a world class cluster of porphyry copper deposits, similar to Balboa and others; our funding strategy; our belief that we can be mining within a year or less for a promising project; and the statement that Brett Gross will continue to participate in future activities of project and corporate development. Factors which may delay or prevent these forward-looking statements from being realized include: we may not attract any partners or funding sources; we may not be able to raise sufficient funds to complete our intended exploration, keep our properties or carry on operations; mineral prices may not rebound in time for us to keep our properties; and we may encounter an inability to continue exploration due to weather, logistical problems, labor or equipment problems or hazards even if funds are available. Even if we find a partner, we may not be able to reach agreement or carry out the development program as contemplated. Despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures in the Company’s recent 10-K and the Company’s other periodic reports filed from time to time with the Securities and Exchange Commission.

Follow Liberty Star on Agoracom, Facebook , LinkedIn & Twitter@LibertyStarLBSR

Contact:
Agoracom Investor Relations
lbsr@agoracom.com
http://agoracom.com/ir/libertystar
or
Liberty Star Uranium & Metals Corp.
Tracy Myers, Investor Relations
520-425-1433
info@LibertyStarUranium.com