|Stock of the week: First Cobalt
First Cobalt doubles strike length at Kerr target
US Cobalt votes for acquisition by First Cobalt
A short time ago, First Cobalt announced, that results of recent drilling have further extended the strike length of the mineralized zone in the Kerr area to over 350 meters. Results to date from this recently-identified mineralized zone located south of Kerr Lake in the Cobalt North area of the Canadian Cobalt Camp confirm the area hosts a near-surface network of cobalt veins and disseminated mineralization associated with silver and nickel, as well as copper, zinc and lead.
Highlights of the recent drill campaign were 0.11% Co, 28.1 g/t Ag and 0.99% Cu over 3.3m and 0.21% Co, 89.2 g/t Ag and 0.96% Pb over 1.8m.
The Kerr area results support the company’s thesis for the Camp that there is considerable potential for near-surface cobalt mineralization.
News: First Cobalt Further Extends Kerr Target to 350 Metres
In addition to this, First Cobalt announced, that US Cobalt securityholders have overwhelmingly approved the previously announced acquisition by First Cobalt. US Cobalt shareholders, warrant holders and option holders voted 98.87% in favor of the transaction, with 35.8% of eligible votes cast.
In addition to this First Cobalt also announced, that US Cobalt has received a final order from the Supreme Court of British Columbia approving the previously announced acquisition by First Cobalt.
The acquisition of US Cobalt will enhance First Cobalt’s position as a vertically integrated pure-play cobalt company with three significant North American assets: 50 past producing mines in the Canadian Cobalt Camp, the Iron Creek Project in Idaho, USA, and the only permitted cobalt refinery in North America capable of producing battery materials.
The Iron Creek Project has a historic mineral resource estimate (non-compliant with NI 43-101) of 1.3M tons grading 0.59% cobalt. A new resource estimate is anticipated by October 2018.
News: US Cobalt Securityholders Overwhelmingly Approve Acquisition by First Cobalt
News: US Cobalt Receives Final Order Approving Acquisition by First Cobalt
Uranium: the puzzle is getting put together
Yes, we are repeating ourselves, but there is a perfect storm coming up the uranium sector, which components are getting put together, like a puzzle. We already reported about production reductions at the two big producers Cameco and Kazatomprom and also from smaller companies. Last week, Paladin Energy announced, that it will put its Langer Heinrich mine in Namibia (the lowest cost open pit uranium mine in the world) on care and maintenance.
Another important point is the petition for strengthening of the U.S. uranium production, which we also reported about. In January 2018 the only two remaining U.S. uranium producers Ur-Energy and Energy Fuels filed a petition with the U.S. Department of Commerce to point out the relevance of the U.S. uranium production regarding possible security-related concerns as well as the increasing dependence of the energy sector from uranium imports. Both companies argued that by now 40% of the U.S. uranium demand is satisfied by imports from successor states of the former Soviet Union (namely Russia, Kazakhstan and Uzbekistan). Only 5% of the demanded uranium is mined in the United States of America. The dependence of the U.S. energy sector (20% of the electricity in the USA is generated by nuclear energy) as well as the military from these nations has reached an alarming level. The two producers advise to produce a minimum of 25% of US uranium consumption in the US itself. The latest U.S. Energy Information Association report shows US Uranium production in the first quarter of 2018 at 226,780 lbs., close to a 70-year low. This amount of US production is less than what is required for one reactor. The two producers want to achieve, with their petition, that the U.S. Department of Commerce as well as President Trump will develop a clear assessment of the dependence on imports of the USA from Russia, Kazakhstan and Uzbekistan as well as promote the uranium industry in the USA. The US government has 360 days to come to a decision whereupon one can count on a similar action like Trump did with aluminum and steel.
Matching to this, the Duma, the Russian House of Commons passed "an amended version of a bill authorizing the president to impose sanctions in response to economic restrictions adopted by the United States and its allies." While prior language specific to nuclear cooperation was dropped, new language appeared that has a broad scope and included: "exports of Russian products and raw materials, the list of which may be compiled by the government" and the "bill authorizes the president to impose other sanctions not mentioned in its text." In effect, the threat of Russian sanctions remains a possibility and could still result in a uranium supply shock to the US and its allies.
All in all it will become exciting for the uranium sector, whereupon especially US uranium stocks like Energy Fuels, Ur-Energy, Uranium Energy, Anfield Resources and Laramide Resources would profit most.
News: Paladin to halt Langer Heinrich, expects uranium rebound in coming years
News: Russia to ban trade with US nuclear companies
Video: Uranium Energy: "Supply Demand Gap Will Increase In 2018"
Copper Mountain Mining invests 5 Million CA$ in Cloncurry development
Treasury Metals: PFS nearly completed!
Copper Mountain Mining recently announced, that the Board has approved a CA$5 million budget for its Cloncurry project located in Queensland, Australia. Planned work programs will include follow-up drilling on discoveries made in 2017, testing of new targets and supporting works for the active Full Feasibility Study on the proposed Eva Copper Mine, which is compliant with NI 43-101.
Copper Mountain’s acquisition of Altona Mining Ltd (Australia) was completed in April 2018. This transaction resulted in the acquisition of 100% of Altona’s assets including $30 million in cash, a permitted development project (Eva Copper Project) and a substantial exploration tenement portfolio (397,000 hectares) located in the highly prospective Mount Isa area in Queensland. This province is one of the world’s premier base metal camps with mining continuing uninterrupted since discovery of copper and gold near Cloncurry in the 1860’s.
News: COPPER MOUNTAIN ANNOUNCES 2018 EXPLORATION PLANS FOR AUSTRALIA
Aurania Resources now listed in Frankfurt
Treasury Metals recently reported an update to its Prefeasibility Study (PFS), which remains on track, with completion expected in July 2018. Sedgman is overseeing the overall preparation of the PFS. The PFS will incorporate a new mineral resource/reserve estimate (excluding drilling from 2018), a revised mine plan for both the underground and open pit, and updated cost and revenue parameters based on these new inputs. The initial work on the PFS analyzed several trade-off studies focused on identifying the optimal mining rate for both underground and open pit operations, evaluating the use of new, industry-leading mining technologies such as battery powered mobile equipment and tailings storage currently being implemented in newer operations in northern Ontario and updated design work.
News: Treasury Metals Achieves Key Federal Permitting Milestone and Provides PFS Update
Maple Gold Mines: waiting for drill results
Aurania Resources recently announced its listing on the Frankfurt Stock Exchange under the trading symbol "20Q". The Frankfurt Exchange ranks third globally in terms of trading volume behind New York (NYSE) and NASDAQ.
The Frankfurt listing will provide European and other international investors broader access to Aurania Resources and should also lead to a better awareness of the company by investors.
News: AURANIA LISTS ON FRANKFURT STOCK EXCHANGE
Panoro Minerals receives another payment by Wheaton Precious Metals
Maple Gold Mines recently concluded its 2018 winter drilling campaign after drilling 21,122 meters of diamond drilling from 52 holes and 1,484 meters from 57 short top-of-bedrock holes for a total of 22,606 meters.
Core sawing and sampling is continuing at the Douay Project site and the Company expects to continue releasing drill results through May, June and July.
News: Maple Gold Completes 22,606 metres of drilling at the Douay Gold Project
Zinc One Resources
Panoro Minerals recently announced, that it has received the sixth Early Deposit payment of US$750,000 as part of the Precious Metals Purchase Agreement with Wheaton Precious Metals International Ltd. in respect of the Cotabambas project located in Peru.
The principal terms of the Cotabambas Early Deposit Agreement are as described in the Company’s press release on March 21, 2016, whereby WPMI will pay Panoro upfront cash payments totaling US$140 million for 25% of the payable gold production and 100% of the payable silver production from the Company’s Cotabambas Project in Peru.
Panoro Minerals Announces Receipt of Early Deposit Payment from Wheaton Precious Metals for the Cotabambas Project, Peru
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