Toronto, Ontario–(November 3, 2015) – Toronto, Ontario — Avalon Rare Metals Inc. (TSX: AVL) (NYSE MKT: AVL) (“Avalon” or the “Company”) is pleased to provide the following update on the $1.3 million 2015 work program on the East Kemptville Tin-Indium project, Yarmouth Co., Nova Scotia. This program includes diamond drilling on the three known mineralized zones, metallurgical process testwork and preliminary environmental assessment studies. The environmental and metallurgical work will be incorporated (along with the October, 2014 resource estimate) in a Preliminary Economic Assessment (“PEA”) scheduled for completion before November 30, 2015.
The current drilling program is designed to collect additional metallurgical sample material from the previously-mined Main and Baby Zones and test other known mineralized zones including the Duck Pond deposit to delineate additional economic resources for a feasibility study. An updated resource estimate will be prepared in early 2016 once all the results from the 2015 drilling have been received and compiled.
The site access agreement with the surface rights holder has been further extended until November 30, 2015 to provide sufficient time to complete the 2015 work program. In the meantime, discussions continue towards reaching an agreement to transition full title to the property to Avalon. The parties expect to be able to conclude an agreement by year-end 2015.
2015 Drill Program
The 2015 drill program commenced on July 13th and to date seventeen drill holes have been completed for a total of 3,301 metres. This includes 8 holes on the Baby Zone, 4 holes on the Main Zone and 5 holes on the Duck Pond Zone. Costs are coming in under budget which will allow for at least 4 more drill holes in the program, focused on the northeast extension of the Main Zone, before the program is concluded later this month. Proposed drilling on the South Grid Zone has been deferred until 2016.
The assays for the eight holes drilled on the Baby Zone have been received and compiled. Results are in line with expectations and confirm continuity of the mineralized zone to depth. Highlights include intersections of 0.46% tin (Sn), 25.2 ppm indium (In) and 0.63% zinc (Zn) over 82.3 metres (EKAV-15-10), 0.23% Sn, 15.6 ppm In and 0.33% Zn over 36.25 metres (EKAV-15-09) and 0.25% Sn, 29.4 ppm In and 0.64% Zn over 18.67 metres (EKAV-15-11).1
A summary of significant intercepts is presented in Table 1 and the detailed drill hole locations are provided in Table 2. The drilling on the Baby Zone has successfully recovered about one tonne of sample for metallurgical testwork purposes and increased the confidence level of the Baby Zone resources.
In addition, certain sections of 2014 drill core that were not sampled last year due to apparent low levels of visible mineralization were sampled and submitted for assay this summer. These produced some surprising results indicating significant widths of mineralization adjacent to existing known mineralized intervals (Table 3). The intercepts given in Table 3 are examples located outside the boundaries of the existing October, 2014 resource estimate that, in effect, have potential to increase the total near surface resource estimate in the Baby Zone.
Metallurgical Testwork Program
The comprehensive bench scale metallurgical test work currently being undertaken in the UK is nearing completion. This extensive test program is evaluating the metallurgical flowsheet from grinding, through copper and zinc sulphide flotation, to tin recovery by both gravity and flotation methods. The recovery of indium to the zinc concentrate is also being measured as microprobe data of the zinc ore mineral sphalerite shows very high levels of contained indium (up to 0.25%) . Some metallurgical test results are still outstanding but preliminary analysis of the data suggests that the recoveries and grades for all three concentrates are in line with expectations.
PEA Report Preparation
Avalon has retained the services of Micon International Limited Toronto, Ontario to prepare a NI 43-101 compliant PEA for the East Kemptville project. The PEA will be based upon the existing NI 43-101 resource estimate (disclosed in the Company’s news release dated October 31, 2014), together with the final results from the metallurgical testwork program and environmental input provided by Stantec Consulting Limited Halifax, Nova Scotia (“Stantec”). Work on the PEA is progressing well and is on schedule for completion by the end of November 2015.
Environmental Assessment Work
Stantec’s Halifax office has considerable experience with the East Kemptville site and is conducting the key studies required as part of the Environmental and Social Impact Assessment for the permitting process and a planned feasibility study. Through the innovative use of low permeability tailings disposal technology, processing of the low grade ore stockpiles and engineered oxygen barriers (water covers), a cost effective tailing and waste rock management strategy has been developed. This strategy has the potential to greatly reduce the risk from existing acid-generating waste rock and tailings at the site and could result in a site closure plan that will eliminate the need for expensive perpetual water treatment.
Update on Tin Markets
Avalon recently joined the UK-based International Tin Research Institute (“ITRI”), which is dedicated to supporting the global tin industry and expanding tin use while providing its members with frequent updates on new developments in global tin markets. For further information, please visit the ITRI website at https://www.itri.co.uk/. Recent ITRI market commentary highlights the need for new tin mines to be developed to replace steadily declining production capacity from existing mines in Peru, Indonesia and China. This is creating opportunities for emerging new tin producers.
Unlike the major base metals, little new tin production capacity has come on-stream over the past 10 years during the commodities super-cycle. While LME tin prices have come down to the US$15,000/tonne level in 2015 from over $20,000/tonne in 2014, LME tin inventories remain low and many industry analysts believe that tin prices will rise in the absence of significant new supply. Also, some tin supplies originating in Central Africa are now designated as conflict minerals which preclude their use by consumers in the US and EU under legislation restricting the use of minerals produced to finance armed conflict. The overall conclusion is that new supplies from non-conflict sources, such as Nova Scotia, will be needed over the next five years just to meet continuing demand from the electronics sector.
Avalon will be presenting during the upcoming ITRI London Tin Seminar on November 26 at 11:30am GMT at the Brewery, Chiswell Street, London, England. For further information on this event or to register, please contact [email protected].
The technical information included in this news release has been reviewed and approved by the Company’s Vice President Exploration, Dr. Bill Mercer, P. Geo, who is a Qualified Person under NI 43-101. For questions or feedback, please email the Company at [email protected], or phone Don Bubar, President & CEO, at
1 All widths are drilled widths. True Widths are not known.
Cautionary Statement
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the commencement and completion of its work programs, that environmental and metallurgical work will be incorporated in a PEA scheduled for completion before November 30, 2015, that an updated resource estimate will be prepared in early 2016, that Avalon and the surface rights holder expect to be able to conclude an agreement by year-end 2015, that the Company’s strategy has the potential to greatly reduce the risk from existing acid-generating waste rock and tailings at the site and may result in a site closure plan that will eliminate the need for expensive perpetual water treatment, that many industry analysts believe that tin prices will rise in the absence of significant new supply and that new supplies from non-conflict sources such as Nova Scotia will be needed over the next five years just to meet continuing demand from the electronics sector . Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “potential”, “scheduled”, “anticipates”, “continues”, “expects” or “does not expect”, “is expected”, “scheduled”, “targeted”, “planned”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be” or “will not be” taken, reached or result, “will occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avalon to be materially different from those expressed or implied by such forward-looking statements. Forward-looking statements are based on assumptions management believes to be reasonable at the time such statements are made. Although Avalon has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to market conditions, the possibility of cost overruns or unanticipated costs and expenses, and unanticipated results from the work programs, as well as those risk factors set out in the Company’s current Annual Information Form, Management’s Discussion and Analysis and other disclosure documents available under the Company’s profile at www.SEDAR.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements have been provided for the purpose of assisting investors in understanding the Company’s plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking statements. Avalon does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
Cautionary Note to U.S. Investors Concerning Estimates of Reserves and Resources
Unless otherwise indicated, all reserve and resource estimates and other technical information included in this press release have been prepared in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.
Canadian standards for disclosure of information, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information contained in this press release may not be comparable to similar information disclosed by United States companies. In particular, and without limiting the generality of the foregoing, the term “resource” does not equate to the term “reserve”. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineral in mineral deposits that do not constitute “reserves” by United States standards in documents filed with the SEC. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves reported by Avalon in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with United States standards.
TABLE 1: Mineralized intercepts, 2015 drilling, Baby Zone, East Kemptville
| Drill Hole | From (metres) |
To (metres) |
Width (metres) |
Tin % | Zinc % | Copper % | Indium ppm |
| EKAV-15-08 | 10.00 | 23.50 | 13.50 | 0.10 | 0.06 | 0.05 | 3.5 |
| EKAV-15-08 | 77.50 | 86.50 | 9.00 | 0.16 | 0.09 | 0.06 | 5.7 |
| EKAV-15-09 | 56.50 | 65.50 | 9.00 | 0.11 | 0.05 | 0.09 | 3.1 |
| EKAV-15-09 | 74.25 | 110.50 | 36.25 | 0.26 | 0.33 | 0.14 | 15.6 |
| EKAV-15-09 | 137.50 | 149.50 | 12.00 | 0.05 | 0.33 | 0.05 | 14.1 |
| including | 137.50 | 140.50 | 3.00 | 0.14 | 0.57 | 0.08 | 28.2 |
| EKAV-15-10 | 28.00 | 37.00 | 9.00 | 0.13 | 0.11 | 0.06 | 6.0 |
| EKAV-15-10 | 46.00 | 61.00 | 15.00 | 0.10 | 0.08 | 0.03 | 2.7 |
| EKAV-15-10 | 76.00 | 158.30 | 82.30 | 0.46 | 0.63 | 0.07 | 25.2 |
| including | 76.00 | 140.30 | 64.30 | 0.54 | 0.71 | 0.08 | 28.9 |
| EKAV-15-11 | 38.00 | 57.50 | 19.50 | 0.20 | 0.20 | 0.06 | 6.8 |
| EKAV-15-11 | 68.40 | 71.25 | 2.85 | 0.56 | 0.69 | 0.05 | 24.8 |
| EKAV-15-11 | 85.33 | 122.00 | 36.67 | 0.16 | 0.69 | 0.06 | 26.5 |
| including | 85.33 | 104.00 | 18.67 | 0.25 | 0.64 | 0.08 | 29.4 |
| EKAV-15-12 | 48.50 | 71.00 | 22.50 | 0.11 | 0.16 | 0.03 | 3.8 |
| EKAV-15-12 | 84.50 | 114.80 | 30.30 | 0.04 | 0.21 | 0.03 | 7.8 |
| EKAV-15-12 | 103.50 | 159.70 | 56.20 | 0.06 | 0.30 | 0.03 | 13.1 |
| including | 125.50 | 133.10 | 7.60 | 0.13 | 0.42 | 0.03 | 20.3 |
| EKAV-15-13 | 27.50 | 50.00 | 22.50 | 0.11 | 0.23 | 0.06 | 5.9 |
| EKAV-15-13 | 86.00 | 156.50 | 70.50 | 0.09 | 0.38 | 0.03 | 13.5 |
| including | 86.00 | 99.50 | 13.50 | 0.14 | 0.57 | 0.05 | 16.3 |
| EKAV-15-14 | No significant values | ||||||
| EKAV-15-15 | 71.30 | 86.00 | 14.70 | 0.17 | 0.51 | 0.03 | 18.3 |
| EKAV-15-15* | 174.00 | 194.50 | 20.50 | 0.09 | 0.19 | 0.06 | 16.1 |
| EKAV-15-15* | 238.60 | 248.00 | 9.40 | 0.48 | 0.35 | 0.04 | 19.5 |
*Indicates preliminary results subject to further QA/QC verification
| Footnotes: | |
| 1. | Drilling utilized an HQ drill rig. |
| 2. | Widths are drilled widths and not considered true widths. True widths are not known. |
| 3. | All drill core from the program was normally sawn in half top provide 1.5 metre samples at the core logging facility in Yarmouth, Nova Scotia and submitted to Activation Laboratories Ltd. (Actlabs), Ancaster, Ontario for sample preparation and primary analysis. |
| 4. | Core considered unmineralized or low grade was sampled at 1.5 metre intervals, but composited to 4.5 metres for analytical purposes. |
| 5. | In-house Avalon standards and blanks were utilized for QA/QC purposes, along with core duplicates. |
| 6. | Results are monitored for key elements, and in cases of QA/QC issues, re-analysis is requested. |
| 7. | Zn, Cu and In were analyzed by sodium peroxide fusion followed by ICP-MS (method Ultratrace 7) whilst Sn, W and Cu were analysed by fusion followed by XRF (method Whole Rock 4C plus Sn and W). Any overlimits Zn is rerun by peroxide fusion –ICP (method 8-peroxide). |
| 8. | A cutoff grade of 0.08% Sn was used guidance for estimating intercepts. |
TABLE 2: Drill Hole locations
| Collar Location | ||||||
| Zone | DDH | Easting (NAD83) | Northing (NAD83) | Dip | Azimuth | Hole depth (metres) |
| Baby Zone | EKAV-15-08 | 284851 | 4886317 | -70 | 300 | 174 |
| Baby Zone | EKAV-15-09 | 284851 | 4886317 | -60 | 300 | 165 |
| Baby Zone | EKAV-15-10 | 284803 | 4886255 | -70 | 300 | 192 |
| Baby Zone | EKAV-15-11 | 284803 | 4886255 | -55 | 300 | 122 |
| Baby Zone | EKAV-15-12 | 284769 | 4886221 | -60 | 300 | 185 |
| Baby Zone | EKAV-15-13 | 284769 | 4886221 | -45 | 300 | 161 |
| Baby Zone | EKAV-15-14 | 284704 | 4886190 | -45 | 300 | 155 |
| Baby Zone | EKAV-15-15 | 284665 | 4886366 | -45 | 120 | 251 |
| Main Zone | EKAV-15-16 | 284987 | 4886583 | -50 | 122 | 161 |
| Main Zone | EKAV-15-17 | 284987 | 4886583 | -40 | 122 | 144 |
| Main Zone | EKAV-15-18 | 285328 | 4887080 | -40 | 122 | 182 |
| Main Zone | EKAV-15-19 | 282295 | 4887054 | -45 | 143 | 257 |
| Duck Pond Zone | DPAV-15-20 | 282734 | 4887146 | -90 | 0 | 260 |
| Duck Pond Zone | DPAV-15-21 | 282640 | 4887194 | -45 | 120 | 275 |
| Duck Pond Zone | DPAV-15-22 | 282849 | 4887054 | -45 | 300 | 224 |
| Duck Pond Zone | DPAV-15-23 | 282811 | 4887152 | -45 | 120 | 167 |
| Duck Pond Zone | DPAV-15-24 | 282811 | 4887152 | -70 | 120 | 227 |
TABLE 3: New significant mineralized intercepts from 2014 drill core sampled and assayed in 2015
| From (m) | To (m) | Width (m) | Sn % | Zn % | Cu % | |
| EKAV-14-03 | 16.50 | 75.00 | 58.50 | 0.17 | 0.15 | 0.05 |
| EKAV-14-03 previously released (for comparison) |
49.00 | 65.75 | 16.75 | 0.39 | 0.29 | 0.08 |
| EKAV-14-05 | 15.50 | 35.50 | 20.00 | 0.07 | 0.71 | 0.06 |
By Andy Home
Oct 28 (Reuters) – Industrial metals are caught in a bear vortex of slowing demand growth, first and foremost in China, and oversupply, as producers pay the price for the exuberance of the boom years.
If prices are to recover from their current bombed-out levels, everyone agrees more production will have to be taken off line, whether through voluntary restraint or forcible cash-burn attrition.
Glencore’s well-flagged cuts to its copper, zinc and lead production portfolio have at least halted the price declines in those markets, although they have not reversed long-running downtrends.
Significant cuts in either aluminium or nickel supply remain conspicuous by their absence, which is one reason both metals are particularly out of favour even in the context of the general doom and gloom pervading the complex.
And then there is tin.
Often the contrarian of the metals traded on the London Metal Exchange (LME), tin is once again defying the broader bear narrative.
If there’s a problem with supply in the tin market, it is that there’s not enough of it right now.
Visible stocks are low by just about any historic yardstick. Those registered with the LME total just 5,010 tonnes, of which 540 tonnes are earmarked for physical load-out.
Moreover, exchange stocks have remained low despite a persistent premium for cash metal, which might reasonably have been expected to incentivise the delivery of more metal into LME sheds.
The LME’s benchmark cash-to-three-months spread CMSN0-3 traded out to $510 backwardation at one stage in August, the tightest the period’s been since 2009. It’s still tight, valued at $67 backwardation as of Tuesday’s close.
So how come tin is not overstocked and oversupplied like just about every other industrial metal? And is it a temporary problem or something more structural?
******************************************************
Graphic on Indonesian tin exports:
Graphic on LME tin stocks and spreads:
******************************************************
A TALE OF TWO EXPORTERS
As ever with this small market, supply and availability is largely a function of two key countries, one highly visible, one bathed in statistical shadow.
Indonesia, the world’s largest exporter of the soldering metal, is going through one of its periodic shipment spasms.
And although some of the country’s smaller producers will undoubtedly be struggling to remain in operation at current price levels, this, as ever with Indonesia, is more about government policy.
The authorities have been waging a long-running campaign to try and control the free-wheeling tin miners and smelters clustered on the islands of Bangka and Belitung.
Export rules have been steadily tightened to prevent smuggling and now the authorities are targeting illegal mines with a requirement that exporters hold “clean and clear” certification, proving the metal has come from government-registered operations.
Delays in processing such applications meant no tin exports at all in August and although shipments resumed in September, there is considerable doubt as to whether many smaller operators can meet the new government requirements.
Cumulative exports fell by 10 percent to 52,079 tonnes in the first nine months of this year, which is shaping up to be the third consecutive year of falling shipments.
China is the world’s largest producer and user of tin. It is a net importer of refined metal.
Well, it is, if you believe the official customs figures, which show imports running at 7,400 tonnes and exports at just 65 tonnes in the first nine months of 2015.
The problem is that official appearances can be misleading. Tin industry body ITRI, for example, calculates that receipts of refined tin from China by importing countries amounted to over 2,200 tonnes “based on incomplete data up to August”.
Such shadow exports from China have been sleuthed down by ITRI in the past and have often confounded analysts’ price-positive supply-demand expectations.
Right now, though, they have stopped, ITRI citing a customs department investigation into local operators suspected of bypassing China’s 10 percent export tax.
“Some of the owners have been arrested,” according to ITRI, and “local sources reported that no-one would like to take the risk to export tin” in whatever form.
This clampdown on unofficial Chinese exports has coincided with the more visible interruption to shipments from Indonesia, draining the international market of units.
PEAK TIN?
Such are the short-term constraints on tin availability.
But there is an underlying story of structural supply challenges. Simply put, the supercycle largely passed tiny tin by in terms of investment in new mines.
Production from older mines in countries such as Peru and Brazil, meanwhile, is steadily falling, as it has been for some time.
Indeed, the only reason tin has avoided a more serious supply crunch is the emergence of a totally new producing country in the form of Myanmar.
It burst onto the radar in 2013 as a major supplier of raw materials to Chinese smelters. China’s imports from Myanmar grew from virtually zero in 2012 to 89,000 tonnes (bulk weight, not metal contained) in 2013 and further to 173,000 tonnes in 2014.
This year’s imports are up again at 178,000 tonnes in the first nine months alone.
But, according to ITRI, local operators are having to work ever harder to maintain such output levels. Actual production may have been declining this year but “the considerable expansion of processing capacity” has allowed the “treatment of previously stockpiled or discarded low-grade ore.”
ITRI forecasts Myanmar to produce around 38,000 tonnes of contained tin this year and “a further small increase may be possible next year”.
Note the conditionality in that forecast.
The sustainability of production in Myanmar is a known unknown in the tin market. It may be close to a peak. It may, indeed, have already peaked.
If it has, tin’s structural supply problems will come back to bite the market, even allowing for the same Chinese demand headwinds that are hitting every industrial commodity.
In a metallic landscape where supply is the differentiator, tin’s prospects don’t look nearly as dire as markets such as nickel, where producers have seriously mistimed the new wave of production capacity.
Within the current broader narrative of too much supply and too much inventory, tin has neither, hence that persistent backwardation on the LME.
Indeed, the supply strain may get worse.
After all, if new mines weren’t incentivised at prices above $20,000 per tonne, they are certainly not going to be so at current prices trading around $15,000 per tonne.
Source: http://uk.reuters.com/article/2015/10/28/tin-market-ahome-idUKL8N12S3VZ20151028
Welcome to Q&A a production of AGORACOM in which we invite shareholders to pose questions which are answered directly by management.
Vancouver, BC / October 29, 2015 – Durango Resources Inc. (the “Company” or “Durango”) reports that TransCanada Corp. has received final permits from the British Columbia Oil and Gas Commission (BCOGC), giving regulatory approval for the construction and operation of the Prince Rupert gas transmission (PRGT) pipeline project.
The Globe and Mail reported in its Wednesday, Oct. 28, edition that “TransCanada announced that it cleared one of the final regulatory hurdles necessary to begin construction of a $5-billion pipeline project serving a proposed natural gas export facility in British Columbia. Developers are racing to build export terminals to sell the power-plant fuel on international markets amid a glut of supplies and low domestic prices.”
Marcy Kiesman stated, “This is good news for Durango as these permits will link the northeastern British Columbia natural gas production with the proposed Pacific Northwest (PNW) liquefied natural gas station on Lelu Island near Prince Rupert. Durango’s Smith Island limestone property is located approximately six kilometres away from Lelu Island and with the permitting milestone now achieved, Durango plans to begin the advance of the north coast BC limestone properties.”
About Smith Island
The Smith Island property is a past producing limestone property located approximately 6 kilometres southwest of Lelu Island near Prince Rupert, BC where the proposed $36 billion LNG facility is expected to be built by Petronas LNG Consortium (Pacific Northwest LNG).
About Mayner’s Fortune
The Mayner’s Fortune limestone property is located in the Skeena Mining Division approximately 7.5 kilometres south west of Terrace, BC and 4 kilometres west of Lakelse Lake on Lakelse River. The property is located adjacent to the CNR railway line running between Terrace and Kitimat, less than 50 kilometres away from the proposed LNG (liquefied natural gas) site at Kitimat, BC.
The Shell Consortium LNG project partners received full Environmental Approvals in June, 2015, for the proposed $40 billion LNG project in Kitimat. Public information on the LNG Canada consortium can be viewed at www.lngcanada.ca.
About Durango
Durango is a natural resources company engaged in the acquisition and exploration of mineral properties. The Company has a 100% interest in the Mayner’s Fortune and Smith Island limestone properties in northwest British Columbia, the Decouverte and Trove gold properties in the Abitibi Region of Quebec, and the Buckshot graphite property near the Miller Graphite mine in Quebec and three sets of claims in the Labrador nickel corridor.
For further information on Durango, please refer to its SEDAR profile at www.sedar.com.
Marcy Kiesman, Chief Executive Officer
Telephone:
Facsimile: 888.266.3983
Email: [email protected]
Website: www.durangoresourcesinc.com
Forward-Looking Statements
This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs, execution of a definitive agreement, raising of funds, obtaining regulatory approvals and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties relating to Durango, please refer to the Company’s prospectus filed on its SEDAR profile at www.sedar.com.
Neither 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.
With gold and silver prices still under pressure, more and more investors are starting to look at the critical metals space, and at lithium in particular.
Lithium-ion batteries power everything from cellphones to laptops to electric vehicles, and demand for the metal is certainly on the rise. Many companies and investors have been drawn in by news of Elon Musk and Tesla Motors’ (NASDAQ:TSLA) lithium-ion battery gigafactory.
However, Tesla’s isn’t the only lithium-ion battery megafactory out there, and there’s more to lithium and the lithium market than electric vehicle batteries.
Here’s a look at five basic lithium facts investors should know.
Lithium is the lightest, or least dense, elemental metal. It is about half as dense as water.
The metal also has a high specific heat, making it useful in the production of heat-resistant glass, while its electrochemical potential makes it useful in batteries.
Lithium is found all over the world, in both hard-rock deposits and evaporated brines.
The world’s largest hard-rock mine is the Greenbushes mine in Australia. Most of the world’s lithium brine production comes from salars in Chile and Argentina. Bolivia is thought to hold the world’s largest lithium reserves, and the prolific lithium triangle spans all three South American countries.
Several companies are also looking to develop clay-based lithium deposits. For example, Western Lithium (TSX:WLC) holds the King’s Valley lithium deposit in Nevada, while Bacanora Minerals (TSXV:BCN,LSE:BCN) and joint venture partner Rare Earth Minerals (LSE:REM) are advancing the Sonora lithium project in Mexico.
While batteries have been getting most of the attention in the lithium space lately — and while demand for lithium from the battery sector is certainly on the rise — it’s worth noting that other sectors continue to account for a healthy proportion of lithium demand.
Citing data from Roskill, a report from Stormcrow Capital notes that in 2013, rechargeable batteries made up 29 percent of lithium demand, while the remainder of the market was mostly made up by various industrial end uses. That includes ceramics (14 percent), glass-ceramics (12 percent), greases (8 percent) and metallurgical powders (6 percent).
Lithium is also used in pharmaceuticals, lubricants and heat-resistant glass.
After lithium is extracted from a deposit, it is often processed into lithium carbonate, lithium hydroxide or lithium metal. Battery-grade lithium carbonate and lithium hydroxide can be used to make cathode material for lithium-ion batteries. Most contaminants must be removed in order for either material to be considered battery grade.
Hydroxide tends to be more expensive, but can produce cathode material more efficiently and is actually necessary for some types of cathodes, such as nickel–cobalt–aluminum oxide (NCA) and nickel-manganese-cobalt oxide (NMC).
In addition to battery-grade materials, there is also a market for technical-grade lithium. Technical-grade lithium products, such as technical-grade lithium concentrate, sell for a cheaper price than battery-grade products, and are used in applications such as glass and ceramics. Technical-grade lithium products must have very low concentrations of iron.
Like most critical metals, lithium is not traded on any public exchange, and major lithium producers don’t often give out stats. For a long time, most of the world’s lithium was produced by an oligopoly of producers often referred to as the “Big 3,†which included Rockwood Lithium (now owned by Albemarle (NYSE:ALB)), Sociedad Quimica y Minera de Chile (NYSE:SQM) and FMC (NYSE:FMC).
Producers in China have grabbed a larger share of the lithium market in recent years, but the lack of information on pricing has continued.
However, interested investors can look to experts in the lithium space for market reports and price forecasts. For example, the report from Stormcrow Capital mentioned above includes a detailed forecast for lithium prices.
The company recently acquired two limestone properties in north western British Columbia which have been strategically chosen in an effort to coincide with the LNG projects near Kitimat and Prince Rupert.
Liberty Star Uranium & Metals Corp. (“Liberty Star†or the “Companyâ€) (OTCQB: LBSR) is pleased to announce that very high grade copper oxide outcrops near the geochemical high derived from vegetation sampling have been discovered. These show up to 22% copper.
Recent detailed mapping found pervasively brecciated limestone, which led to the conclusion that the area called the Chrysocolla Block (where the first discovery of oxide copper in outcrop was made) was misidentified as the Colina limestone. Further evaluation led to the conclusion that the zone was of the lower Earp formation, which is the layer directly below the Colina. A red clay marker bed at the base of the exposed Earp limestone breccia clearly identifies it, but had been inexplicably missed by previous geologists. Current understanding indicates that the latest targets may bloom into major mineral zones 200 to 400 feet in depth at their intersection with the Horquilla limestone, the major mineral host in the region.
After ID of the lower part of the Earp, the Company’s skarn consultant (recently working on another Arizona project in the same sedimentary rocks, containing high grade copper) felt that there was a strong possibility that the two high grade copper oxide outcrops could be positioned right above high grade copper mineralization. This opinion correlates with Liberty Star’s geophysical–geochemical cross sections: see graphics.
Company CEO/Chief Geologist James A. Briscoe notes: “This is the specific target we have been searching for before kicking off a drill program. This development of discovery by use of the Niton and lots of boots on the ground carefully observing rocks gave us this completely unexpected outcrop; we have made the breakthrough we needed. This find is exciting and meaningful because it is the largest exposure so far located at Hay Mountain, and is similar to outcrops in the Bisbee mining district 15 miles south.â€
Briscoe continues: “This outcropping oxidized mineral occurrence, taken with our recent work, confirms increasing mineral intensity over the previous geochemical and geophysical anomalies, and is confirmation of the type of mineralization we wanted to find. We have much technical work, including drilling, to complete prior to declaring an ore body present at Hay Mountain, but until now we were working with indirect geochemical, geophysical and geologic interpretation; this is direct evidence.â€
Drilling Planned-Permitting Underway
Two drill holes 600’ apart have been spotted over the two sites of the gossan outcrops. Work on nine other targets across the heart of the geochemical-geophysical anomaly is underway. The flexible drill plan calls for vertical diamond core holes to as deep as 2,000 feet. If horizontal bedded ore grade copper or other metals are intercepted, 45 degree angle holes will be drilled to determine width, thickness and shape of the mineralization. Contorted, broken and brecciated beds are nearby and along the line of holes, which is characteristic of the porphyry copper geologic environment. “This is a good environment for defining out an important ore body,†comments Briscoe.
Plans call for holes up to 2,000 feet deep but could be shallower. Each hole would take about 20 days to drill and cost about $200,000 if drilled to total depth: estimated start time of about January 2016.
“James A. Briscoe†James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.
View Presentation on Libertystaruranium.com
Forward-Looking Statements
Statements in this news release that are not historical are forward-looking statements. Forward-looking statements include: findings led to the conclusion that the Chrysocolla Block was misidentified and the conclusion that the zone was of the lower Earp formation that the discovery constitutes the specific target we have been searching for before kicking off a drill program. Factors which may delay or prevent these forward-looking statements from being realized include: our inability to raise sufficient funds to complete our intended exploration or carry on operations; an inability to continue exploration due to weather, logistical problems or hazards even if funds are available. 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 SEC.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151014006432/en/
Liberty Star Uranium & Metals Corp.
Tracy Myers, 520-425-1433
Investor Relations
[email protected]
or
Jim Briscoe, 520-907-9492
CEO/President/Chief Geologist
[email protected]
