Category: Energy

Categories
Base Metals Energy Junior Mining Rover Metals

Rover Critical Minerals Signs LOI to Acquire High Purity Silica Asset with Average 99.6% SiO2 In Golden, British Columbia

VANCOUVER, BC / ACCESSWIRE / July 24, 2024 / Rover Critical Minerals Corp. (TSXV:ROVR)(OTCQB:ROVMF)(FSE:4XO) (“Rover” or the “Company“) is pleased to announce that it has entered into a non-binding letter of intent to acquire a 100% interest in the Silicon Valley Silica Project, near Golden, British Columbia (the “Transaction“) Orichalcum Holdings Inc. (the “Vendor“).

The 1,760-hectare (4,349-acre) Silicon Valley Silica Project, located adjacent to the town of Golden, B.C. and the Sinova Quartz silica quarry, hosts approximately 12 kilometers of regionally mapped strike length of the high-purity quartzite beds of the Ordovician Mount Wilson Formation. Sampling in 2017 encountered up to 99.9% SiO2 and an average of 99.6% SiO2 along a traverse of approximately 190 metres, along strike with the adjacent Sinova Quartz silica quarry. Deleterious elements were found to be very low, with an average of 0.03% Fe2O3, 0.02% CaO, 0.02% MgO, 0.01% P2O5, and 0.10% Al2O3. Details of the Project are outlined below.

As the demand for renewable energy sources like solar power grows, driven by global initiatives to combat climate change, the market for high-purity silica (also known as high-purity quartz, or HPQ) is poised to expand significantly. With the acquisition of Silicon Valley Silica Project, Rover is poised to gain a strategic position in the rapidly expanding critical minerals market.

Judson Culter, CEO of Rover states, “On June 10th, the Government of Canada announced that silicon metal had been added to Canada’s Critical Minerals List, in addition to announcing additional funding for the semiconductor and chip manufacturing industry. The U.S. Government also has silicon on its critical minerals list, therefore making the project potentially eligible for DoD or DoE funding through the Defense Production Act Investment (DPAI) program. Through this Transaction, Rover is gaining a strategic and timely position in what is becoming one of the most sought-after high-purity silica districts in Canada with a project located adjacent to one of the largest high-purity silica producers in the country. Silica, despite being the second most abundant mineral in the Earth’s crust, is rare in its purest form, and is in increasingly high demand as a crucial element in the production of photovoltaics (PV) and semiconductors. Management closely follows industry trends, evident from companies like Intel, which is on track to build the world’s largest chip-making complex in Ohio, with $20 billion invested by the company to date. Factoring in macro-economic demand for chips in AI applications, along with the geopolitical risks of Taiwan holding current market share of the chip industry, this deal has a bright future.”

Paddy J. Moylan, Rover’s President and Director, comments, “Silicon Valley is a deal we have been working on for some time. Silicon Valley is special. It is transformational for our company and investors. This project has huge potential. We already have boots on the ground within a short walk to a world-class asset, which is exciting! I will be on site as work progresses. Importantly, from an ESG point of view, it ticks many boxes. I look forward to finalising the definitive agreement imminently. Rover has formed a terrific working relationship in the area, and I am thrilled that Case Lewis, will join us as our exploration manager. I have come to know Case well and he will be a strong advocate for Rover and Silicon Valley. We will keep investors informed of progress at all material times as we advance towards positive news flow.”

About High Purity Silica

Silicon, which is derived from high-purity silica, is the primary material in the majority of solar panels, also called photovoltaic (PV) cells. Silicon metal is essential to the manufacture of computer chips and semiconductors, used in almost any and everything electronic. It is also used in aluminum production for aerospace applications, as well as anodes in emergent next-generation lithium-ion batteries. Although silica is abundant in the Earth’s crust, silica deposits with a high degree of purity and volume – those which are in economic demand – particularly in excess of 99% SiO2, are a relatively rare occurrence, especially in Canada and the U.S.

About Canada’s Critical Minerals List June 10 Update

The Critical Minerals List was first released in 2021 and consisted of 31 minerals which were deemed essential to Canada’s green and digital economies. On June 10, 2024, the Government of Canada released an updated Critical Minerals List which increased the number of critical minerals to 34, now including silicon metal.

To be included in the Critical Minerals List, the Government of Canada must consider that: (1) the supply chain of the material is threatened; (2) there is a reasonable chance of the mineral being produced by Canada and; (3) the mineral is considered to be one of the following:

  • essential to Canada’s economic or national security; or
  • required for the national transition to a sustainable low-carbon and digital economy; or
  • positions Canada as a sustainable and strategic partner within global supply chains.
https://www.canada.ca/en/natural-resources-canada/news/2024/06/government-of-canada-releases-updated-critical-minerals-list.html

Project Highlights – Silicon Valley Project, Golden, B.C.

  • 1,760 hectares (4,349 acres) adjacent to the town of Golden, B.C., and less than 1km from the Canadian Pacific Railway Golden Rail Yard with easy year-round access. (Figure 1)
  • High-purity quartzite of the Ordovician Mount Wilson Formation with up to 12 km of regionally mapped strike length on the property and up to 300 metres apparent width at surface. Bedding strikes 120 to 140º and dips from 60 to 75º.
  • On the same lithological unit and close to both Sinova Global’s Sinova Quartz quarry pit (500m to south) and the Moberly Silica Mine (9.0 km to north). Sinova Quartz has been permitted for over 1,000,000 tonnes of annual silica production. (1)
  • The HCJ MINFILE occurrence on the Project was first reported in 1972 by Dr. L.B. Halferdahl, who characterized the quartzite unit as containing sequences with thicknesses of 30 metres or more of very white to grey high grade silica material, with no impurities being visible with examination even with a 20x hand lens and thus having the potential for ferrosilicon-grade material. The quartzite silica bed at the Silicon Valley Project was mapped to extend at least from the HCJ MINFILE occurrence at the north end of the current Property, to the Sinova Quartz quarry at the south end of the Property. (2)
  • 2018 sampling extending from 50 metres from the boundary of the adjacent Sinova Quartz quarry tenure encountered up to 99.9% SiO2 and an average of 99.6% SiO2 from 7 grab samples taken over a traverse of approximately 190 metres, along strike from the Sinova Quartz quarry. Deleterious elements were found to be very low, with an average of 0.03% Fe2O3, 0.02% CaO, 0.02% MgO, 0.01% P2O5, and 0.10% Al2O3. Grab samples in the northern area of the Property yielded grades up to 99.1% SiO2. (Figure 2) (3) *
  • Also in 2018, 92 Resources Corp (now Patriot Battery Metals Inc (TSX:PMET)), the former owner of the majority of the Silicon Valley Project area, encountered grades of 99.11, 98.56 and 98.28% SiO2 from grab samples in the northern area of the Property. (Figure 3) (4) *
  • According to Sinova Global’s website, regarding their expansion at Sinova Quartz:
    • Quartz from this deposit requires very limited processing relative to material from other quartz operations. With high-purity silica and correspondingly low levels of impurities such as boron, iron, phosphorus and aluminum, the Sinova Quartz operation creates minimal by-products and requires less energy to process.
    • A tailings management facility is not necessary to mitigate environmental impacts. Only primary crushing will be done on-site then it will be stockpiled and hauled offsite to be processed.
    • No wastewater will be treated at the Sinova Quartz project as minimal water will be used in processing for dust control, and no tailings facilities will be constructed. (1)

Figure 1. Silicon Valley Project Map

Figure 2. Silicon Valley Project Map – South Sampling Area

Figure 3. Silicon Valley Project Map – North Sampling Area and HCJ MINFILE Location

Transaction Terms

The Company has entered into the Transaction with Orichalcum Holdings Inc., dated July 19, 2024, an arm’s length party. The terms of the option agreement are set forth below:

In order to exercise the Option and acquire a 100% interest in the Property, the Company is required to:

  1. incur at least $1,020,000 in exploration expenditures over 24 months from the signing of a definitive agreement. A minimum of $20,000 is to be incurred in the first three months.
  2. issue common shares to the Vendor as follows:
    1. 2,000,000 common shares of the Company (“Common Shares“) on or before ninety (90) days after the date of execution of the Definitive Agreement;
    2. such number of Common Shares having an aggregate value of $50,000, on or before the 6-month anniversary of the execution date of the Definitive Agreement, calculated based on the 10-day VWAP;
    3. such number of Common Shares having an aggregate value of $100,000, on or before the 12-month anniversary of the execution date of the Definitive Agreement, calculated based on the 10-day VWAP;
    4. such number of Common Shares having an aggregate value of $200,000, on or before the 24-month anniversary of the execution date of the Definitive Agreement, calculated based on the 10-day VWAP;
    5. such number of Common Shares having an aggregate value of $200,000, on or before the earlier of the 36-month anniversary of the execution date of the Definitive Agreement or the issuance of a mining or quarry permit for the Property, calculated based on the 10-day VWAP;
    6. such number of Common Shares having an aggregate value of $250,000, on or before the earlier of the 48-month anniversary of the execution date of the Definitive Agreement or the commencement of commercial production on the Property, calculated based on the 10-day VWAP.
  3. make cash payments to the Vendor in the aggregate amount of $855,000 as follows:
    1. $10,000 on signing of the Definitive Agreement;
    2. $15,000 within 10 weeks of signing the Definitive Agreement;
    3. $80,000 on or before the 12-month anniversary of signing the Definitive Agreement;
    4. $200,000 on or before the 24-month anniversary of signing the Definitive Agreement;
    5. $200,000 on or before the earlier of the 36-month anniversary of signing the Definitive Agreement or the issuance of an extraction permit for the Property;
    6. $350,000 on or before the earlier of the 48-month anniversary of signing the Definitive Agreement or the commencement of commercial production on the Property.

If the Buyer fails to satisfy the payment terms and conditions of the Option, Buyer’s option to acquire the Property will terminate, and the Property shall automatically become the sole possession of the Vendor. Buyer must ensure the claims will be in good standing for at least 12 months following the date of termination.

The Vendor will retain a 2% Gross Overriding Royalty (“GORR“) on the Property. For so long as the Company holds an interest in the Property the Company shall have the right to purchase, at any time prior to production, 0.5% of the Vendor’s GORR (for cancellation) for purchase price of $500,000, and an additional 0.5% for an additional $500,000.

The Property shall be surrounded by a specified area of interest in which any claims staked within this area by the Vendor or the Buyer shall automatically be included in the Definitive Agreement.

Buyer to maintain all claims in good standing until the exercise of the Option.

Additional Technical Details on the Silicon Valley Project, B.C.

The property is underlain by thick sequences of extremely pure quartzite of the Ordovician Mount Wilson Formation, occurring as north-northwest striking, usually steeply east-dipping thrust panels.

Locally, quartzite of the Mount Wilson Formation occurs as friable sandstone, grading deeper to well cemented quartzite. Several faulted and displaced segments of the Mount Wilson quartzite unit occur on the Property, totaling approximately 12 kilometres of strike length at an average apparent width of 250-300 metres at surface. Structurally repeated segments of the same lithological unit host the Moberly Silica Mine (9.0 kilometres to the north), which previously produced up to 150,000 tonnes of silica sand annually, and the Sinova Quartz silica quarry (500 metres to the south), which produced up to 90,000 tonnes of silica annually, both of which exhibit economic grade silica greater than 99.6% SiO2 purity. (5)(6)

The quartzite can be described as frosty white, sedimentary quartzite with a clastic texture containing fine, well-rounded polished grains 1/8 – 1/4 mm in diameter. Very competent bonding allows breaking to occur through the quartz grains.

* Cautionary Note

The reader is cautioned that grab samples are selective by nature and may not represent the true grade or style of mineralization across the property.

Sources

  1. https://sinovaglobal.com/wp-content/uploads/2023/05/Sinova-Quartz-Brief-Final.pdf
  2. https://apps.nrs.gov.bc.ca/pub/aris/Report/03685.pdf/
  3. https://apps.nrs.gov.bc.ca/pub/aris/Report/37599.pdf/
  4. https://apps.nrs.gov.bc.ca/pub/aris/Report/38110.pdf/
  5. https://minfile.gov.bc.ca/Summary.aspx?minfilno=082N++001
  6. https://minfile.gov.bc.ca/Summary.aspx?minfilno=082N++043

$0.03 Unit Financing

Further to the Company’s release of July 3, 2024, the Company $0.03/unit financing (the “Private Placement“) is now closed. Rover received total orders of $327,344 resulting in the issuance of 10,911,467 common shares, and 10,911,467 common share purchase warrants. No finders’ commissions will be paid in connection with the Private Placement. The closing is subject to final acceptance and approval by the TSX Venture Exchange. It is expected that a new financing will be announced later this month as a result of the Transaction disclosed in this release.

Related Party Transaction

The Private Placement constitutes a “related party transaction” as such term is defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“) as an investment by a director of the Company has participated in the financing, acquiring aggregate of 10,000,000units for aggregate consideration of $300,000. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Private Placement as the Company is not listed on a specified market and neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related party, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101). A material change report was not filed in connection with the related party participation in the Private Placement less than 21 days in advance of closing of the Private Placement as approval of the Private Placement occurred less than 21 days prior to closing. The Private Placement was approved by the board of directors of the Company with the conflicted director abstaining.

Qualified Person (QP) Statement

Technical information in this news release has been reviewed and approved by Case Lewis, P.Geo., a “Qualified Person” as defined under NI 43-101 Standards of Disclosure for Mineral Projects and a director of the Silicon Valley Project vendor company, Orichalcum Holdings Inc.

About Rover Critical Minerals

Rover is a publicly traded junior mining company that trades on the TSXV under symbol ROVR, on the OTCQB under symbol ROVMF, and on the FSE under symbol 4XO.

ON BEHALF OF THE BOARD OF DIRECTORS,
“Judson Culter”
Chief Executive Officer and Director

For further information, please contact:

Email: info@rovermetals.com
Phone: +1 (778) 754-2617

Neither the TSX Venture Exchange nor its regulation provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

Statement Regarding Forward-Looking Information

This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause Rover’s actual results, performance, achievements, or developments in the industry to differ materially from the anticipated results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.

The forward-looking statements and information in this press release include information relating to the Transaction, the Company’s intention to complete a private placement and all other statements that are not historical in nature. Such statements and information reflect the current view of Rover. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

There can be no assurance that such statements prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Any factor could cause actual results to differ materially from Rover’s expectations. Rover undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates, opinions, or other factors, should change.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

SOURCE: Rover Critical Minerals Corp.



View the original press release on accesswire.com

Categories
Base Metals Energy Exclusive Interviews Junior Mining

“RIGHT NOW! ALL YOU NEED TO KNOW ABOUT URANIUM” | David Talbot

In this interview on Proven and Probable, Maurice Jackson speaks with David Talbot, Managing Director and Head of Equity Research at Red Cloud Securities, about the uranium sector’s value proposition and current state. Talbot, with over a decade of experience in the uranium industry, discusses the importance of uranium-fueled nuclear energy, which generates around 10% of global electricity, with the U.S. at 18.6% and Canada at just under 14%.

Talbot highlights the attractiveness of nuclear power: no greenhouse gas emissions during operations, mitigation of climate change impact, base load power provision, long reactor life, stable operating costs, energy security, and abundant uranium availability. The global demand for nuclear energy is growing at approximately 3.6% annually, with significant growth in China, India, Russia, and Turkey. China, in particular, is expanding its reactor fleet and aims to surpass the U.S. in nuclear capacity within the next decade.

Rumble

Despite the increasing demand, uranium supply faces challenges. The current supply-demand gap sees reactors needing 180 million pounds of uranium annually, while mines produce only 145 million pounds. Talbot notes that uranium prices have surged, influenced by factors such as production cuts, geopolitical concerns, and increased buying by entities like the Sprott Physical Uranium Trust.

Geopolitical factors, including the U.S. ban on Russian uranium imports and the Advanced Act Bill boosting nuclear reactor deployment, are significant drivers of uranium prices. The ban, effective in 2028, will force the U.S. to source uranium from friendly countries, while the Advanced Act aims to streamline nuclear project permitting and support the nuclear sector’s growth.

Talbot also touches on Kazakhstan’s mineral extraction tax increase, which could discourage production expansion. He believes that while some events are priced into the current uranium market, the U.S. uranium production could rise, benefiting from higher prices and supportive policies.

David A. Talbot is a mining analyst with Red Cloud Securities. He spent nearly a decade as a geologist in the gold industry, working with Placer Dome, Franco-Nevada, and Newmont Capital. Talbot joined Dundee’s (now Eight Capital) research department in May 2003, and in the summer of 2007, he took over the role of analyzing the fast-growing uranium sector. Since then, he has expanded his expertise to include lithium, graphite, cobalt, and iron ore. Talbot is a member of the Prospectors and Developers Association of Canada (PDAC) and serves on the PDAC Convention’s selection committee for the Corporate Presentation Forum for Investors. He has been featured on BNN, CNBC, and in The Economist, among various other media publications. He has also chaired several investment sessions. Talbot graduated with distinction from the University of Western Ontario, earning an Honours B.Sc. degree in geology.

Categories
Base Metals Energy Junior Mining

F3 and SKRR Commence Drilling to Test Conductors on Clearwater West

Kelowna, British Columbia–(Newsfile Corp. – July 22, 2024) – F3 Uranium Corp. (TSXV: FUU) (OTCQB: FUUFF) (“F3” or the “Company“) is pleased to announce that summer drilling has commenced to test conductors on the Clearwater West property which is located 13km to the south of Fission Uranium’s Triple R uranium deposit (see F3 news release dated June 18, 2024).

SKRR Exploration Inc. (TSXV: SKRR) has an option to acquire up to a 70% interest in the Clearwater West Property (see F3 news release dated May 26, 2023, and SKRR news release dated Jan 22, 2023) by making cash payments and issuing shares to F3 and funding exploration work, with F3 serving as the operator during the earn-in period.

Clearwater West is an early-stage exploration project prospective for uranium mineralization. The uranium mineralization model for the Clearwater West property is basement hosted and structurally controlled Athabasca Basin unconformity related deposits.

Summary of the Clearwater West Property:

The Clearwater West Project is located ~20 km outside the edge and in the south-west area of the Athabasca Basin, which is poised to become the next area for the development of major uranium mines in Saskatchewan. It is 13 km south of Fission Uranium’s Triple R deposit, located 7 km outside the basin edge on its PLS Property, where a Feasibility Study was recently completed, and 17 km south of NexGen’s Arrow deposit. The Clearwater West property is comprised of 3 contiguous mineral claims totaling 11,786 hectares which are immediately south and adjacent to Fission Uranium’s PLS property.

Basement hosted Athabasca unconformity related deposits often feature unique characteristics that can be identified by various geophysical surveys. A VTEM survey flown over the property in early 2014 defined electromagnetic (EM) conductors, some of which are interpreted to be possible extensions of the EM conductors identified on the PLS property immediately to the north.

F3’s experienced and successful management and technical team, with a track record of three major high-grade uranium discoveries in the Athabasca Basin region since 2010 (Waterbury Lake project J Zone, PLS Triple R deposit and most recently the PLN JR Zone) will operate and manage Clearwater West. F3 currently holds a 100% interest in Clearwater West.

Qualified Person:

The technical content of this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and approved on behalf of the company by Raymond Ashley, P.Geo., President & COO of F3 Uranium Corp., a Qualified Person. Mr. Ashley has verified the data disclosed. The information provides an indication of the exploration potential of the company’s properties but may not be representative of expected results.

About F3 Uranium Corp:

F3 is a uranium project generator and exploration company, focusing on projects in the Athabasca Basin, home of some of the world’s largest high grade uranium discoveries. F3 currently has 20 projects in the Athabasca Basin. Several of F3’s projects are located near large uranium discoveries including Triple R, Arrow and Hurricane.

Contact Information

F3 Uranium Corp.
750-1620 Dickson Avenue
Kelowna, BC V1Y9Y2

Investor Relations
Telephone: 778 484 8030
Email: ir@f3uranium.com


ON BEHALF OF THE BOARD

“Dev Randhawa”
Dev Randhawa, CEO

The TSX Venture Exchange has not reviewed, approved or disapproved the contents of this press release, and does not accept responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, including statements regarding the suitability of the Properties for mining exploration, future payments, issuance of shares and work commitment funds, entry into of a definitive option agreement respecting the Properties, are “forward-looking statements.” These forward-looking statements reflect the expectations or beliefs of management of the Company based on information currently available to it. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in the forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217291

Categories
Base Metals Energy Junior Mining Precious Metals

Grizzly Announces Extension to Private Placement

Edmonton, Alberta–(Newsfile Corp. – July 19, 2024) – Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) (“Grizzly” or the “Company”) announces an extension to the private placement (the “Offering”) of Units and Flow-Through Units originally announced on June 20, 2024. The Offering is for aggregate gross proceeds of $1,000,000 if fully subscribed. The Offering consists of up to 16,666,668 Units and up to an additional 16,666,668 in any combination of Units or Flow-Through Units, at a price of $0.03 per Unit and Flow-Through Unit (each as defined below).

Each Unit shall consist of one common share of the Company (“Common Share”) and one non-transferrable common share purchase warrant (“Warrant”) entitling the warrant holder to purchase an additional Common Share for $0.05 and expiring on the earlier of a) 30 days following written notice by the Company to the warrant holder that the volume-weighted average trading price of the Common Shares on the TSX Venture Exchange is at or greater than CA$0.10 per Common Share for 10 consecutive trading days; and (b) 24 months from the date of issuance. Each Flow-Through Unit shall consist of one Common Share and one half of one Warrant, each of which shall be issued as a “flow through share” for the purposes of the Income Tax Act (Canada). The Offering is being offered to qualified subscribers in the Provinces of Alberta, British Columbia and Ontario and in other jurisdictions as the Company may in its discretion determine, in reliance upon exemptions from the registration and prospectus requirements of applicable securities legislation.

The Company intends to use the proceeds of the Offering, if fully subscribed, as follows:

Mineral Property ExplorationDrill Exploration Program$ 500,000
Other$ 100,000$ 600,000
Mineral Rights and Permits$ 105,000
Corporate OverheadManagement fees to Officers$ 72,000
(6 months)Other Corporate Overhead$ 213,000$ 285,000
General working capital$ 10,000
$ 1,000,000

There is no minimum to the Offering. If the Company closes on less than the maximum proceeds, the use of proceeds will be adjusted. In the case that the Offering is over-subscribed, the Company may increase the size of the Offering by an additional 10%, with any remaining over-subscribed amount allocated pro-rata to all subscribers.

In connection with the Offering, the Company may pay finders fees payable in any combination of cash and warrants with terms equivalent to the Warrants, to registered broker dealers, limited market dealers or arm’s length persons in accordance with the policies of the TSX Venture Exchange (the “Exchange”) and applicable securities legislation and regulations. The Common Shares and any Common Shares issued on exercise of the Warrants are subject to restrictions on trading until four months and one day from the date of issuance in accordance with the policies of the Exchange. The Offering is subject to acceptance by the Exchange.

ABOUT GRIZZLY DISCOVERIES INC.

Grizzly is a diversified Canadian mineral exploration company with its primary listing on the TSX Venture Exchange focused on developing its approximately 72,700 ha (approximately 180,000 acres) of precious and base metals properties in southeastern British Columbia. Grizzly is run by a highly experienced junior resource sector management team, who have a track record of advancing exploration projects from early exploration stage through to feasibility stage.

On behalf of the Board,

GRIZZLY DISCOVERIES INC.
Brian Testo, CEO, President

For further information, please visit our website at www.grizzlydiscoveries.com or contact:

Nancy Massicotte
Corporate Development
Tel: 604-507-3377
Email: nancy@grizzlydiscoveries.com

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.

Caution concerning forward-looking information

This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may,” “will,” “should,” “anticipate,” “plan,” “expect,” “believe,” “estimate,” “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management of Grizzly in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Grizzly’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon.

Risks and uncertainties that may cause actual results to vary include but are not limited to the availability of financing; fluctuations in commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available under the Company’s SEDAR+ profile at www.sedarplus.ca. Grizzly disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217202

Categories
Base Metals Breaking Energy Precious Metals

The US debt is about to hit $35 trillion. It’s barely come up at the GOP convention.

Ben Werschkul·Washington Correspondent

Thu, Jul 18, 2024

The national debt is on the cusp of a grim milestone, but it’s one of the least discussed topics at the Republican National Convention this week.

President Joe Biden hasn’t mentioned it much either as he has campaigned across the country.

Outstanding government debt stood at $34.9 trillion ($34,940,154,000,000 to be somewhat more precise) as of Tuesday, according to the latest data from the Treasury Department.

That’s a debt load that now represents over 120% of GDP. Earlier this year, the cost of interest payments alone passed the cost of defense spending.

The psychologically important $35 trillion milestone will likely be crossed sometime between this week’s Republican National Convention and when the Democrats gather in a few weeks’ time in Chicago — if debt continues to grow by an average of about $8 billion a day.

All told, the debt could represent 166% of America’s GDP by 2054.

https://flo.uri.sh/visualisation/15552562/embed?auto=1

Yet a Yahoo Finance review of this week’s flood of political commentary — both Republicans in Milwaukee and Biden on the campaign trail — underlines a political reality of this election season: This historic debt is simply not a front-burner issue.

“We stand for fiscal sanity, for low taxes, and for reduced debt,” said Florida Gov. Ron DeSantis as he endorsed Republican nominee Donald Trump on Tuesday night.

What the line contained in snappiness it perhaps lacked in internal consistency. Lowering taxes is likely to increase deficits and debt.

“Our government sold us a false bill of goods with the Iraq war and the 2008 financial crisis loading up our national debt that falls on our generation’s shoulders,” added former presidential candidate Vivek Ramaswamy during his speech.

He overlooked how 2017 tax cuts and other policies enacted by Trump as president have contributed mightily to the current total.

The debt rose by nearly $8 trillion during Trump’s time in office. Biden is on pace to oversee a similar rise. In total, the national debt has ballooned by more than 70% over the last 7.5 years, fueled by a flood of new spending as well as these obligations stretching back decades.

TOPSHOT - Former US President and 2024 Republican presidential candidate Donald Trump is displayed on a screen as he arrives during the second day of the 2024 Republican National Convention at the Fiserv Forum in Milwaukee, Wisconsin, July 16, 2024. Days after he survived an assassination attempt Donald Trump won formal nomination as the Republican presidential candidate and picked right-wing loyalist J.D. Vance for running mate, kicking off a triumphalist party convention in the wake of last weekend's failed assassination attempt. (Photo by Pedro UGARTE / AFP) (Photo by PEDRO UGARTE/AFP via Getty Images)
Former President Donald Trump is displayed on a screen during the second day of the 2024 Republican National Convention in Milwaukee. (PEDRO UGARTE/AFP via Getty Images) (PEDRO UGARTE via Getty Images)

All told, the vast majority of the major convention speeches so far this week haven’t brought up debt or deficits at all, according to a review of transcripts and videos. The Republican platform offers promises to cut “wasteful government spending” but doesn’t discuss debt or deficits directly.

It’s a notable shift for the Republicans who in years past campaigned on ideas like a balanced budget amendment and fielded major candidates who rose through the ranks as members of the deficit hawk wing of the party.

That wing of the party still exists but was far from prominent this week.

“The fiscal warning signs are really just so bright, so loud, and it’s as though nobody who’s running for office is paying attention,” said Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, in a recent Yahoo Finance interview.

Few mentions from Biden as well

The same has been true to a certain extent on the other side of the aisle this week.

The debt didn’t come up when Biden sat down with NBC’s Lester Holt on Monday.

The president did talk about the issue Tuesday at an economic summit in North Las Vegas.

Before cutting his trip short after a positive COVID test, he said that his plan to make billionaires have to pay a minimum tax of 25% will generate $500 billion over the next decade, “allowing us to do more for childcare, eldercare, bring down the federal deficit, and so much more.”

But it’s a plan unlikely to pass Congress, even if Biden wins a second term.

Gallup recently found that federal spending and the budget deficit are collectively something 51% of respondents worry “a great deal” about, the sixth highest issue on the list.

But that issue hasn’t translated into a campaign focus for either side.

President Joe Biden walks from Air Force One as he arrives at Harry Reid International Airport in Las Vegas, Monday, July 15, 2024. (AP Photo/Susan Walsh)
President Joe Biden arrives at Harry Reid International Airport in Las Vegas for a campaign swing this week. (AP Photo/Susan Walsh) (ASSOCIATED PRESS)

Biden has overseen mounds of new red ink but has also overseen decreasing deficits, with the US running a $1.7 trillion deficit in fiscal year 2023 and on pace for a slightly better result this year.

Another positive trend is that debt as a percentage of GDP has stabilized and even declined slightly in recent years.

Tax cuts that could make it worse

The lack of focus on debt also comes as there is massive focus on another issue that could make the problem worse: taxes.

These rates will be a top-tier issue in 2025, with major individual provisions of the 2017 Trump tax cuts set to expire at the end of the year. That means taxpayers could face a significant effective tax hike if Washington doesn’t act.

The plans from both sides at the moment could add trillions more red ink in the years ahead.

Trump has repeatedly promised to extend the tax cuts across the board. That could add between $4 trillion and $5 trillion if not offset, estimates the Committee for a Responsible Federal Budget.

https://flo.uri.sh/visualisation/16706129/embed?auto=1

Some Republicans this week are even talking about a tax plan from the “Project 2025” effort led by Trump allies that could lead to even deeper cuts.

Biden’s plan is to extend the cuts for those making under $400,000 a year. That could still cost over $2 trillion.

Biden has offered detailed plans to offset at least some of these costs with tax increases elsewhere, like his effort to put a minimum tax of 25% on billionaires.

Trump has offered far less detail when confronted with questions about the national debt and said he could take care of it with drilling for oil — which he calls “liquid gold” — without elaborating on exactly how that would work.

“There is literally a pit in my stomach,” MacGuineas said, discussing the potential trillions of dollars in costs of these cuts. “There’s a pit in my stomach right now just talking about it with you.”

Ben Werschkul is Washington correspondent for Yahoo Finance. Akiko Fujita contributed reporting.

Original Source: https://finance.yahoo.com/news/the-us-debt-is-about-to-hit-35-trillion-its-barely-come-up-at-the-gop-convention-134447204.html?.tsrc=fin-notif

Categories
Energy Junior Mining Lion One Metals Precious Metals

Lion One Announces $7.5M Brokered Private Placement

Lion One Metals Ltd.
Lion One Metals Ltd.

NORTH VANCOUVER, British Columbia, July 18, 2024 (GLOBE NEWSWIRE) — Lion One Metals Limited (TSX-V: LIO) (OTCQX: LOMLF) (ASX: LLO) (“Lion One” or the “Company”) is pleased to announce that it has entered into an agreement with Eight Capital as lead agent (the “Agent”) and sole bookrunner in connection with a “best efforts” private placement of up to 20,271,000 units of the Company (the “Units”) at a price of $0.37 per Unit (the “Issue Price”) for aggregate gross proceeds of up to $7,500,270, pursuant to the listed issuer financing exemption available under National Instrument 45-106 – Prospectus Exemptions (the “Offering”), in each of the Provinces of Canada other than Quebec. Each Unit will consist of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one Share at an exercise price of $0.50 for a period of three years from the date of issuance.

The Company will make available an offering document relating to the Offering (the “Offering Document”) which will be accessible under the Company’s profile at www.sedarplus.ca and at https://liononemetals.com. Prospective investors in the Offering should read the Offering Document before making an investment decision.

The Offering is expected to close on or around July 26, 2024 (the “Closing Date”). Closing of the Offering is subject to certain customary conditions including receipt of all necessary approvals including satisfaction of listing conditions of the TSX Venture Exchange. The Company has granted the Agent an option to offer for sale up to an additional 15% of the Units, at the Issue Price, exercisable in whole or in part at any time for a period of up to 48 hours prior to the Closing Date. The Units issued pursuant to the Offering will not be subject to any hold periods pursuant to applicable Canadian securities laws.

The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any Shares in the United States. The securities to be sold in the Offering have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Lion One Metals Limited

Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with new operations established in late 2023 at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Company also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets.

On behalf of the Board of Directors of
Lion One Metals Limited
“Walter Berukoff”
Chairman and CEO

For further information
Contact Investor Relations
Toll Free (North America) Tel: 1-855-805-1250
Email: info@liononemetals.com
Website: www.liononemetals.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.

Forward-Looking Information

This news release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward‐looking statements or information. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. The forward‐looking statements and information are based on certain key expectations and assumptions made by management of the Company. Forward-looking statements made in this news release include statements regarding anticipated completion of the Offering and debt settlement, and the proposed use of proceeds of the Offering. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information since no assurance can be given that they will prove to be correct.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including, with respect to the Offering and debt settlement, the conditions of the financial markets, availability of financing, timeliness of completion of the Offering, and the timing of TSX Venture Exchange approval; and with respect to the use of proceeds, the sufficiency of the proceeds, the speculative nature of mineral exploration and development, fluctuating commodity prices, and competitive, as described in more detail in our recent securities filings available at www.sedarplus.ca, including the Offering Document. Accordingly, readers should not place undue reliance on the forward‐looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward‐looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.

Categories
Base Metals Energy Junior Mining Metallic Group Precious Metals Stillwater Critical Minerals

Stillwater Critical Minerals Launches Field Programs Including Property-Wide Geophysical Survey at its Stillwater West Project in Montana, USA

VANCOUVER, BC / ACCESSWIRE / July 18, 2024 / Stillwater Critical Minerals Corp. (TSXV:PGE)(OTCQB:PGEZF)(FSE:J0G) (the “Company” or “Stillwater”) announces it has commenced 2024 field activities including a property-wide airborne electro-magnetic geophysical survey at its flagship Stillwater West Ni-PGE-Cu-Co + Au project in Montana.

The Company has engaged Expert Geophysics Ltd. for a combined time-domain electromagnetic (“EM”) survey using their TargetEM26 system along with a magneto-telluric survey using their MobileMTm system. The survey will utilize the newest technological advancements in airborne EM, building on the success of the first generation DIGHEM airborne EM survey flown over the project in 2000. The total survey will cover approximately 1,069 line-kilometers and provide higher-resolution and improved depth of investigation from the DIGHEM airborne EM survey, as well as VLF coverage. The survey has been designed in collaboration with Glencore plc via the Stillwater West technical committee to fine-tune priority conductive drill targets across the 12-kilometer main resource area, as well as to assist with prioritization and ranking of additional untested conductive targets across the broader 61-square-kilometer property.

Stillwater’s President and CEO, Michael Rowley, said “We are very pleased to kick off our field activities for the season at Stillwater West. This large-scale geophysical survey is part of a larger program that is expected to include an updated mineral resource estimate that will support the commencement of various studies relating to potential production scenarios. These objectives will be important milestones in preparation for continued resource expansion drilling across the nine-kilometer deposit area as well as in developing target areas. In addition, the Company is pursuing a number of other studies and initiatives with strategic partners such as Cornell University and various US Government agencies.”

Vice-President of Exploration, Dr. Danie Grobler, said, “Work has been on-going at our core facility as we ramp up for the year. The technical committee, including Glencore, continues to be focused on the expansion potential of the lower Stillwater Igneous Complex. Detailed geological and structural interpretive work during the past two years added significantly to our understanding of the large Platreef-style mineralized system discovered within the footwall contact zone of the Stillwater Complex. Our geological models now display strong geological control and continuity on mineralized zones. The planned airborne surveys will provide important high-resolution datasets to refine targeting of high-grade nickel-copper-PGE sulphide-hosted mineralization within the multi-kilometer-scale geophysical anomalies that we see across the 32-kilometer-long mineralized system.”

Upcoming Events

Stillwater is pleased to announce that President and CEO Michael Rowley will be presenting at the following events:

  1. Precious Metals Summit, Beaver Creek, Colorado, September 10-13, 2024. For information and registration please click here.
  2. Precious Metals Summit, Zurich, Switzerland, November 11-12, 2024. For information and registration please click here.

About Stillwater Critical Minerals Corp.

Stillwater Critical Minerals (TSXV:PGE)(OTCQB:PGEZF)(FSE:J0G) is a mineral exploration company focused on its flagship Stillwater West Ni-PGE-Cu-Co + Au project in the iconic and famously productive Stillwater mining district in Montana, USA. With the addition of two renowned Bushveld and Platreef geologists to the team and strategic investments by Glencore plc, the Company is well positioned to advance the next phase of large-scale critical mineral supply from this world-class American district, building on past production of nickel, copper, and chromium, and the on-going production of platinum group, nickel, and other metals by neighboring Sibanye-Stillwater. An expanded NI 43-101 mineral resource estimate, released January 2023, positions Stillwater West with the largest nickel resource in an active US mining district as part of a compelling suite of nine minerals now listed as critical in the USA. To date, five Platreef-style nickel and copper sulphide deposits host a total of 1.6 billion pounds of nickel, copper and cobalt, and 3.8 million ounces of palladium, platinum, rhodium, and gold at Stillwater West. All of these deposits remain open for expansion along trend and at depth.

Stillwater also holds the high-grade Black Lake-Drayton Gold project adjacent to Nexgold Mining’s development-stage Goliath Gold Complex in northwest Ontario, currently under an earn-in agreement with Heritage Mining, and the Kluane PGE-Ni-Cu-Co critical minerals project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director – Stillwater Critical Minerals
Email: info@criticalminerals.com Phone: (604) 357 4790
Web: http://criticalminerals.com Toll Free: (888) 432 0075

Quality Control and Quality Assurance

Mr. Mike Ostenson, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and he has reviewed and approved the technical disclosure contained in this news release.

Forward-Looking Statements

This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Stillwater Critical Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Stillwater Critical Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.

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.

SOURCE: Stillwater Critical Minerals Corp.

Categories
Base Metals Energy Junior Mining

Copper: Humanity’s first and most important future metal

As the third most-consumed metal behind iron ore and aluminum, copper is all around us. Found naturally in the Earth’s crust, copper was the first metal used by humans, dating back to the 8th century BC. 

Three thousand years later, homo sapiens figured out how to smelt copper from its ore, and to alloy it with tin to create bronze. Bronze was useful for tools and weapons, making it one of the most important inventions in the history of civilization.

SIGN UP FOR THE COPPER DIGEST

SIGN UP

The Copper Age

Nothing happens without copper; as it turns out, not even civilization itself. Beginning around 5,000 BC, the “Chalcolithic”  (from the Greek “khalkos” for copper and “lithos” for stone) or Copper Age was a transitionary period between the Stone Age and the Bronze Age.

It was during this time that copper was introduced as a material that could be worked into metal, paving the way towards the use of bronze later on.

The archeological site of Belovode in present-day Serbia holds the distinction as the world’s oldest copper-smelting location, circa 5,000 BC. Copper was also found in the Near East beginning in the late 5th millennium BC. Later, pockets of copper technology began appearing in northern Italy and along the Mediterranean coast.

Copper was used to shape tools, weaponry, coins and jewelry.

The arrival of metal catapulted early Britain and other societies, including China, which has a long history of using metal objects, into a whole new chapter of civilization.

Copper minerals

According to the Commonwealth Scientific and Industrial Research Organisation (CSIRO), an Australian government agency, there are around 160 naturally occurring copper-bearing minerals. Chalcopyrite, bornite, chalcocite, and native copper (an uncombined form of copper) are four minerals often mined for their copper content.

Chalcopyrite is the most abundant copper-rich mineral.

Azurite is a copper carbonate mineral that forms in the upper oxidized zones of copper ore deposits. It has a deep azure-blue color. When exposed to air and water, it often shows a rainbow-like iridescence. Since ancient times, it has been used as an ore of copper, a gemstone, and a pigment. Michelangelo and Leonardo DaVinci even used it to create blue hues in their paintings. 

Malachite was one of the first ores used to produce copper metal. Often found with azurite, malachite is a mixture of copper, iron and oxygen. It has a deep green color that does not fade over time or when exposed to light. This made malachite a popular pigment for painting. Ancient Egyptians used it for tomb paintings. European painters, especially in the 15th and 16th centuries, loved the palette of greens it gave. Artists in India, Tibet, China, and Japan used it in murals, manuscripts, ceramics and lacquerware. 

~ ‘Conducting change: Why copper is key to a renewable future’ by CSIRO, Oct. 27, 2023.

Uses

Sometimes referred to as “Dr. Copper” for its ability to diagnose the health of the global economy, copper is just as essential to modern society as to ancient civilizations — if not more so.

The Copper Development Association divides its uses into four categories: electrical, construction, transport and other. By far the largest sector for copper usage is electrical, at 65%, followed by construction at 25%.

Source: Natural Resources Canada

Copper is useful for electrical applications because it is an excellent conductor of electricity. The only metal that has higher conductivity is silver, but silver is expensive by comparison. 

Conductivity, combined with durability, malleability and dependability, make it ideal for wiring. Sprott notes that copper’s journey took a historic turn in the 1800s when its exceptional electrical conductivity sparked the revolutionary age of telegraphy and incandescent electric lamps to light homes.

Among electrical devices that use copper, are computers, televisions, circuit boards, semiconductors, microwaves, and fire prevention sprinkler systems.

In telecommunications, copper is used in wiring for local area networks (LAN), modems and routers. The construction industry would not exist without copper; it is essential for wiring in residential and commercial construction. The red metal is also used for potable water and heating systems due to its ability to resist the growth of water-borne organisms, as well as its resistance to heat corrosion.

The transportation industry is reliant on copper for core components of airplanes, trains, cars, trucks and boats. A commercial airliner has up to 190 kilometers of copper wiring, while high-speed trains use up to 10 tonnes of copper per kilometer of track.

Automobiles have used copper and brass radiators and oil coolers since the 1970s. More recent applications include on-board navigation, anti-lock braking systems, heated seats, defrosting wires embedded in windows, hydraulic lines, and wiring for window and mirror controls.

Copper is a critical mineral for our infrastructure, including over 11 million km of electrical wires powering homes, businesses and industry in the United States alone. 

The average home contains more than 90 kg of copper.  

In 2022, the copper market was worth USD$183 billion, making it the third most valuable metals market behind only iron ore and gold.

Copper and electrification

Copper is the heartbeat of the global energy economy.

Millions of feet of copper wiring will be required for strengthening the world’s power grids, and hundreds of thousands of tonnes more are needed to build wind and solar farms. Electric vehicles use triple the amount of copper as gasoline-powered cars. Renewable energies need five times more copper than non-renewables.

According to Bloomberg New Energy Finance (NEF), clean energy currently consumes a quarter of copper demand, a figure that is projected to reach 61% by 2040, given our growing reliance on wind, solar and electric vehicles. (‘Copper: Wired for the Future’ by Sprott, Feb. 27, 2024)

Copper has been designated a critical mineral by several developed countries/ regions including Canada, the US, the European Union, China, Japan and India. Last year at the United Nations’ COP28 climate summit, 118 governments pledged to triple global renewable energy capacity by 2030.

Copper’s role as a critical mineral led to its inclusion in over $30 billion of funding from the Biden administration’s Inflation Reduction Act.

The Sprott report says that, while copper is likely to take center stage as the leading electrification metal, existing copper supplies are dwindling and new mines take up to two decades to develop, which is creating a race to meet increasing copper demand.

Global investment in the energy transition reached $1.8 trillion in 2023; it now exceeds investments in fossil fuels. To reach “net zero” emissions targets by 2050, investments must average $4.8 trillion from 2024 to 2030 (that’s almost $5T every year for the next six years!). In the 2030s, the average annual investment would need to approach $7T.

Sprott makes the following points about copper demanded by electrification and decarbonization:

  • By 2050, it’s projected that the global electric grid will need to double in capacity to meet the 86% increase in electricity demand.
  • Shifting production to greener energy sources is expected to necessitate 427 million tonnes of copper by 2050. Last year, the mining industry only produced 22Mt.
  • The shift toward underground wiring, which requires twice as much metal as overhead lines, is intensifying the demand for copper.
  • Copper is essential in EVs, finding use in electric motors, batteries, inverters, wiring and charging stations. An EV requires 53 kilograms of copper in electric motors, batteries, inverters, wiring and charging stations, about 2.4 times more than a conventional combustion vehicle uses. This volume of wire can extend up to a mile in length. Although efforts are underway to reduce copper in EVs, demand is still projected to hit 2.8 million tonnes by 2030.
  • Renewable energy infrastructure, including solar and wind power, needs 2.5 to 7 times more copper than fossil fuel-based technologies, depending on whether the wind installations are onshore or offshore.
The role of critical minerals in energy transition. Source: IEA, May 2021

A new study suggests that electrifying the global vehicle fleet by 2050 will require an unrealistic ramp-up in copper production.

Researchers at the University of Michigan and Cornell University found that copper can’t be mined fast enough to keep up with current US policy guidelines to make the transition from fossil-fueled power and transportation to electric vehicles and renewable energies.

For example the Inflation Reduction Act calls for 100% of new cars to be electric vehicles by 2035.

“We show in the paper that the amount of copper needed is essentially impossible for mining companies to produce,” said Adam Simon, co-author of the paper, published by the International Energy Forum (IEF).

How impossible? The researchers found between 2018 and 2050, the world will need to mine 115% more copper than has been mined in all human history to 2018. This would meet our current copper needs and support the developing world without considering the green energy transition.

To electrify the global vehicle fleet requires bringing into production 55% more new mines. Between 35 and 195 large new copper mines would have to be built by 2050, at a rate of up to six mines per year. In heavily regulated environments like the United States and Canada, it can take up to 20 years to build one mine from scratch.

The baseline (no green energy transition) scenario supposes a more realistic, but still challenging 35 new copper mines, or one per year from 2018.

Source: International Energy Forum
Source: International Energy Forum

Instead of fully electrifying the US fleet of vehicles, Simon suggests focusing on manufacturing hybrid vehicles, which require far less copper than electric vehicles — 29 kg vs 60 kg.

Going this route would not require major grid improvements and would have almost as large an impact on reducing CO2 emissions, the study found. Also, the likelihood of finding the copper needed to make hybrids is much greater than for electric vehicles.

A final takeaway from the report? There are enough copper resources on planet Earth; the concern is whether these resources can be mined fast enough to support baseline global development, then go beyond towards vehicle electrification and green energy.

The baseline scenario envisions about 1.69 billion tonnes of copper will be mined by 2050, which represents about a quarter (26%) of the total copper resource of 6.6 billion tonnes.

Going deeper underground would grow the resource to 89Bt, and 241BT may be recoverable from the sea floor.

New copper mines that came online between 2019 and 2022 took an average of 23 years to get from discovery to production, the study says.

Copper market

Demand

On the demand side, electrical grids need to be updated, and governments are embarking on large-scale infrastructure investments that are copper-intensive.

Along with the usual applications in construction wiring and plumbing, transportation, power transmission and communications, there is now added demand for copper in electric vehicles, solar panels, wind turbines, and energy storage.

Additional copper is being demanded by the electrification of public transportation systems, 5G and AI.

According to Nikkei Asia, prices are being buoyed by the need for more data centers to support the development of artificial intelligence, all of which will require copper.

The latest copper demand driver comes from the Ukraine, where the war with Russia is consuming tonnes of bullet cartridge casings made of brass, an alloy of copper and zinc.

The European Defense Agency says a NATO 155-mm artillery shell contains half a kilogram of copper, with Ukrainian forces firing up to 7,000 per day.

Supply

Copper may have come off the boil recently due to problems in China but the structural supply deficit is real and keeping prices elevated.

World reserves by country, 2022. Source: Natural Resources Canada

Benchmark Mineral Intelligence (BMI) forecasts global copper consumption to grow 3.5% to 28 million tonnes in 2024, and for demand to increase from 27 million tonnes in 2023 to 38 million tonnes in 2032, averaging 3.9% yearly growth.

Yet the US Geological Survey reports supply from copper mines in 2023 amounted to only 22 million tonnes. If the copper supply doesn’t grow this year, we are looking at a 6Mt deficit.

Mining companies are seeing their reserves dwindle as they run out of ore. Commodities investment firm Goehring & Rozencwajg says the industry is “approaching the lower limits of cut-off grades and brownfield expansions are no longer a viable solution. If this is correct, then we are rapidly approaching the point where reserves cannot be grown at all.”

Effectively, lower grades mean millions of tonnes more rock needs to be moved and processed to get the same amount of copper.

Last week, the vice president of US investment bank Stifel Financial Cole McGill presented data that corroborates Goehring & Rozencwajg, stating “If you look at grades at the top 20 copper mines since 2000, they’ve trended down about 15-20%, and if you take out some of the higher-grade African projects, that’s even lower.”

Sprott agrees that, Chile and Peru, the top copper-producing countries, are grappling with labor strikes and protests, compounded by declining ore grades. Russia, ranked seventh in copper production, faces an expected decline due to the ongoing war in Ukraine. Despite efforts by miners to ramp up production, many analysts anticipate a widening supply imbalance.

Major copper miners aren’t doing much to alleviate the problem. High-quality projects are increasingly rare and major new discoveries are lacking. The time from discovery to production averages 16.5 years.

To meet the increase in copper demand, copper majors are focused on extending the life spans and productivity of existing mines rather than carrying out more expensive, and risky, exploration and development of new (greenfield) projects.

E&MJ Engineering stated in its outlook for copper production to 2050, “The trend toward declining orebody grades and continued development of the pursuit of existing operations to exploit lower grade deposits is likely to continue, in the absence of high-grade project discovery.

A decline in ore grade results in higher operating costs due primarily to the amount and depth of material required to be mined and processed to produce the same amount of copper product. It is no surprise that both GHG emission intensity and energy intensity increase as ore grade decreases. There is a point of inflection, where below an ore grade of around 0.5% copper, the intensity of both metrics rises sharply.”

Given that many mines are fast approaching, if not already tackling, similar grades, this is a pressing problem. In its fiscal year 2020 commodity outlook, BHP, the world’s third largest copper producer, estimated that grade decline could remove about 2 million metric tons per year (mt/y) of refined copper supply by 2030, with resource depletion potentially removing an additional 1.5 million to 2.25 million mt/y by this date.”

Along with technical issues such as falling grades/ deteriorating ore quality, there is also supply pressure from growing resource nationalism.

According to Sprott, capital for the exploration and development of copper mines peaked at $26.13 billion in 2013. Since then, it has almost halved and remains low, with only $14.42 billion spent in 2022.

McGill told Bloomberg that between 2009 and 2016, copper supply grew at a CAGR of 3.5-4%. Since 2016, when copper priced bottomed at around $2-2.20/lb, the CAGR is around 1%.

Without new capital investments, Commodities Research Unit (CRU) predicts global copper mine production will drop to below 12Mt by 2034, leading to a supply shortfall of more than 15Mt. Over 200 copper mines are expected to run out of ore before 2035, with not enough new mines in the pipeline to take their place.

Last year, the government of Panama ordered First Quantum Minerals (TSX:FM) to shut down its Cobre Panama operation, removing nearly 350,000 tonnes from global supply.

A strike at another large copper mine, Las Bambas in Peru, temporarily halted shipments.

Copper specialist Anglo American says it is scaling back output by about 200,000 tons, owing to head grade declines and logistical issues at its Los Bronces mine. Los Bronces production is expected to fall by nearly a third from average historical levels next year as the miner pauses a processing plant for maintenance, Reuters said.

Chile’s copper output has been dented by a long-running drought in the country’s arid north. State miner Codelco’s 2023 production was the lowest in 25 years.

All four of Codelco’s megaprojects have been delayed by years, faced cost overruns totaling billions, and suffered accidents and operational problems while failing to deliver the promised boost in production, according to the company’s own projections.

There are also concerns about Zambia, Africa’s second largest copper producer, where drought conditions have lowered dam levels, creating a power crisis that threatens the country’s planned copper expansion.

Ivanhoe Mines (TSX:IVN) reported a 6.5% Q1 drop in production at the world’s newest major copper mine, Kamoa-Kakula in the DRC.

The Congo last year overtook Peru as the world’s second-largest copper producer, but supply is threatened by ongoing armed conflict.

According to Voice of America

At least 70 people, including nine soldiers and a soldier’s wife, were killed when armed men attacked a village in western Democratic Republic of Congo, local authorities said, as violence intensifies between two rival communities…

The army is also struggling to contain the violence in the eastern part of the country, which has been torn by decadelong fighting between government forces and more than 120 armed groups seeking a share of the region’s gold and other resources.

Violence in the eastern part of the country has worsened in recent months as security forces battle the militias. Earlier this month, a militia attack on a gold mine in northeastern Congo killed six Chinese miners and two Congolese soldiers.

The World Health Organization warns that millions of people in the DRC are facing a health and humanitarian crisis (VOA, July 13, 2024)

As the government collects billions in revenues from new mining operations, like Ivanhoe’s Kamoa-Kakula, we predict the fight over resource rents could lead to internal struggles over who controls the government. How long before Congolese copper, cobalt, diamonds and gold are labeled “blood minerals”?

The forecasted copper supply gap — more than 15Mt by 2034 — was front and center at the Rule Symposium in Florida earlier this month. Mining magnate and Ivanhoe Mines’ founder Robert Friedland said current copper prices “fall woefully short” of supporting the development of new projects.

“We see a crisis coming in physical markets and a requirement for much higher prices to enable most of the copper projects that are in development to have a prayer coming in,” Friedland said via The Northern Miner. . The incentive price to build new mines is $11,000/t.

Higher prices are needed to counteract soaring cost inflation in building new mines, even in cheaper jurisdictions like Chile and Peru.

Friedland produced a surprising statistic, that humanity must mine more copper in the next 20 years than we have in human history to meet surging global demand on the back of the energy transition.

He estimated the global economy needs to find five or six new Kamoa-Kakula-sized projects yearly to maintain a 3% gross domestic product growth rate over the next two decades.

Over the past 10 years, greenfield additions to copper reserves have slowed dramatically. S&P Global estimates that new discoveries averaged nearly 50Mt annually between 1990 and 2010. Since then, new discoveries have fallen by 80% to only 8Mt per year.

There are really only three ways for the industry to get this additional metal. First, they can increase production from existing mines; this often involves “going underground”, digging beneath the existing open pit to access more ore. An expansion to the existing concentrator or building a new one, is sometimes needed.

Second, they can expand their mines laterally, going after resources that weren’t part of the initial mine plan because they were less accessible, or un-economic.

Third, they can explore for new mineral deposits, either internally, or working with junior mining companies, which have the exploration expertise to bring a deposit forward to the point when it can be sold to a major.

Obviously option three, known as greenfield exploration, is more difficult, costly, and carries higher risk than options one and two, called brownfield exploration.

Prices

Crux Investor noted that copper prices have risen significantly, with majors like BHP acquiring copper assets through M&A rather than building new mines. Examples include BHP’s purchase of Oz Minerals and Newmont’s acquisition of Newcrest.

Despite the market’s recognition of copper’s role in the future economy and increasing supply tightness, Crux Investor says analysis shows copper prices still remain below their long-term inflation-adjusted average, suggesting room for further appreciation.

While BMO Capital Markets and Citigroup analysts believe current copper prices may rise past $4.54/lb due to a Chinese smelter supply shortage, and grid investments in China, they say a sustained price gain is needed by copper miners to make investment decisions.

Copper mining is an extremely capital-intensive business for two reasons.

First, mining has a large up-front layout of construction capital called capex – the costs associated with the development and construction of open-pit and underground mines. There is often other company-built infrastructure like roads, railways, bridges, power-generating stations and seaports to facilitate extraction and shipping of ore and concentrate. Second, there is a continuously rising opex, or operational expenditures. These are the day-to-day costs of operation: rubber tires, wages, fuel, camp costs for employees, etc.

The average capital intensity for a new copper mine in 2000 was between US$4,000-5,000 to build the capacity, the infrastructure, to produce a tonne of copper. In 2012 capital intensity was $10,000/t, on average, for new projects. Today, building a new copper mine can cost up to $44,000 per tonne of production.

Capex costs are escalating because:

Declining copper ore grades means a much larger relative scale of required mining and milling operations.

A growing proportion of mining projects are in remote areas of developing economies where there’s little to no existing infrastructure.

Many inputs necessary for mine-building are getting more expensive, as cross-the-board inflation, the highest in 40 years, infiltrates the industry. This includes two of the largest costs, wages and diesel fuel, used to run mining equipment.

The bottom line? It is becoming increasingly costly to bring new copper mines online and run them.

Investors are also demanding a higher return on investment than previously, when there was a greater appetite for risk.

Citigroup is bullish on copper, with the bank’s analysts predicting that prices could surpass $10,000 a tonne ($4.53/lb) this year due to policy support in China.

Mining.com reports Beijing is expected to introduce further stimulus to upgrade its renewable energy infrastructure at the Third Plenum meeting in mid-July:

These additional measures, specifically targeting domestic property and grid investments, are expected to support copper prices in the near term, Citi analysts said in a note.

Conclusion

Copper presents a compelling opportunity for investors. The Sprott report notes that copper prices and miners are likely to benefit from the growing supply-demand gap. It also says that copper’s strategic importance has driven significant M&A in 2023, with BHP and Rio Tinto acquiring copper producers at significant premiums. Automakers concerned about securing future supplies are investing directly in mining companies.

But copper miners buying other copper miners does nothing to alleviate the supply shortage. It only transfers one copper reserve to another. Majors have underinvested in copper exploration and development, preferring M&A to the expense and risk of finding new copper deposits. 

Junior copper explorers provide investors exposure to potential new discoveries that could help narrow the supply gap. These discoveries offer the chance for outsized returns, though obviously with higher risk.

Copper equities have underperformed the copper price, presenting a potential catch-up opportunity.

Extraordinary demand growth, set against a backdrop of constrained supply, is expected to deepen the structural deficit through the end of the decade. Higher copper prices will be needed to incentive new supply. (Crux Investor)

(By Richard Mills)

Ahead of the Herd newsletter, aheadoftheherd.com, hereafter known as AOTH.

Please read the entire Disclaimer carefully before you use this website or read the newsletter. If you do not agree to all the AOTH/Richard Mills Disclaimer, do not access/read this website/newsletter/article, or any of its pages. By reading/using this AOTH/Richard Mills website/newsletter/article, and whether you actually read this Disclaimer, you are deemed to have accepted it.

Any AOTH/Richard Mills document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.

AOTH/Richard Mills has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified.

AOTH/Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness.

Expressions of opinion are those of AOTH/Richard Mills only and are subject to change without notice.

AOTH/Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.

Furthermore, AOTH/Richard Mills assumes no liability for any direct or indirect loss or damage for lost profit, which you may incur as a result of the use and existence of the information provided within this AOTH/Richard Mills Report.

You agree that by reading AOTH/Richard Mills articles, you are acting at your OWN RISK. In no event should AOTH/Richard Mills liable for any direct or indirect trading losses caused by any information contained in AOTH/Richard Mills articles. Information in AOTH/Richard Mills articles is not an offer to sell or a solicitation of an offer to buy any security. AOTH/Richard Mills is not suggesting the transacting of any financial instruments.

Our publications are not a recommendation to buy or sell a security – no information posted on this site is to be considered investment advice or a recommendation to do anything involving finance or money aside from performing your own due diligence and consulting with your personal registered broker/financial advisor.

AOTH/Richard Mills recommends that before investing in any securities, you consult with a professional financial planner or advisor, and that you should conduct a complete and independent investigation before investing in any security after prudent consideration of all pertinent risks.  Ahead of the Herd is not a registered broker, dealer, analyst, or advisor. We hold no investment licenses and may not sell, offer to sell, or offer to buy any security.

Original Source: https://www.mining.com/copper-humanitys-first-and-most-important-future-metal/

Categories
Base Metals Emx Royalty Energy Junior Mining Precious Metals Project Generators

| EMX Royalty Shareholders | Arizona Sonoran Updates Cactus Project Mineral Resource Estimate to 7.3 B lbs of Copper in M&I and 3.8 B lbs of Copper in Inferred – Updated Parks/Salyer Deposit Amenable as an Open Pit

Casa Grande, AZ and Toronto, ON, July 16, 2024 – Arizona Sonoran Copper Company Inc. (TSX:ASCU) (“ASCU” or the “Company”), releases its updated Mineral Resource Estimate (“MRE”) for the Cactus brownfield copper project, located 45 miles south of Phoenix, Arizona (see FIGURES 1-3). The updated and expanded MRE is inclusive of a seven-month drilling program targeting the MainSpring property, which was completed in April 2024. The Cactus Project is wholly owned and located on private land in Arizona with direct road and rail access, infrastructure onsite, is at an advanced permitting stage, and has permitted access to onsite water wells. Highlights and key changes from the updated MRE are listed below.

Highlights:

  • Updated total Cactus Project Mineral Resource Estimate (“MRE”) including Primary Mineral Resources:
    • Measured and Indicated (“M&I”) 632.6 million short tons @ 0.58% Total Copper (“CuT”) for 7.3 billion pounds (“lbs”) of copper
    • Inferred 474.0 million short tons @ 0.41% CuT for 3.8 billion lbs of copper
  • Key Changes:
    • Confirms Parks/Salyer and MainSpring as one deposit, renamed to “Parks/Salyer”
      • Parks/Salyer mineral resource contains 339.0 million short tons @ 0.71% CuT for 4.8 billion lbs of copper in the M&I category and 299.3 million short tons @ 0.43% CuT for 2.6 billion lbs of copper in the Inferred category
    • Parks/Salyer amenable as an open pit within the pending Preliminary Economic Assessment
      • New Parks/Salyer mineral resource dimensions are 6,400 feet (“ft”)(1,950 meters (“m”) by 3,000 ft (915 m) to a maximum depth of 2,350 ft (716 m) below surface
    • 1,904% increase to the Measured Category with inclusion of initial Measured mineral resources at Parks/Salyer, 26% increase to the total M&I and a 60% increase in total Inferred resource, with no change to cut-off grade criteria or underlying price and cost assumptions
      • 42% increase of M&I mineral resources at Parks/Salyer attributed to success of measured infill drilling program, reporting of open pit resources, and reporting based on total copper pounds
      • Parks/Salyer infill drilling (56,907 ft | 17,345 m) converted 55.9 M short tons @ 1.03% CuT for 1.2 billion lbs of copper reported to the measured category
      • 60% increase to the Inferred mineral resources attributed to expansion of Parks/Salyer mineral resource onto the MainSpring property and reporting based on total copper pounds
      • 7-month drilling program at MainSpring (49,193 ft | 14,994 m) delivered 244.9 M short tons @ 0.39% CuT for 1.9 Billion lbs of copper reported to the Inferred mineral resource

Table 1 below reports the July 11, 2024, Cactus Project MRE, containing the combined Parks/Salyer, Cactus West, Cactus East, and Stockpile mineral resource areas. Each mineral resource area is broken out individually in Table 4. Mineral resources defined within this July 11, 2024, the Cactus Project MRE will be used to form the basis of the ASCU Preliminary Economic Assessment (“PEA”), on track for release in early Q3 2024.

TABLE 1: Cactus Project MRE, Contained Copper Separated into Total Copper and Soluble Copper

Material
Type		Tons
kt		Grade
CuT %		Grade
Cu Tsol %		Contained
Total Cu (k lbs)		Contained
Cu Tsol (k lbs)
Measured
Total Leachable55,2000.940.791,032,200873,800
Total Primary12,3000.510.05124,40013,400
Total Measured67,5000.860.661,156,500887,200
Indicated
Total Leachable414,8000.600.534,965,0004,365,700
Total Primary150,4000.390.041,173,300126,000
Total Indicated565,2000.540.406,138,2004,491,700
M&I
Total Leachable470,0000.640.565.997,2005,239,500
Total Primary162,7000.400.041,297,600139,400
Total M&I632,6000.580.437,294,8005,378,900
Inferred
Total Leachable299,6000.430.382,572,4002,262,800
Total Primary174,5000.360.041,267,500124,700
Total Inferred474,0000.410.253,839,9002,387,500

NOTES:
1. Total soluble copper grades (Cu TSol) are reported using sequential assaying to calculate the soluble copper grade. Tons are reported as short tons.
2. Stockpile resource estimates have an effective date of 1st March, 2022, Cactus mineral resource estimates have an effective date of 29th April, 2022, Parks/Salyer-MainSpring mineral resource estimates have an effective date of 11th July, 2024. All mineral resources use a copper price of US$3.75/lb.
3. Technical and economic parameters defining mineral resource pit shells: mining cost US$2.43/t; G&A US$0.55/t, 10% dilution, and 44°-46° pit slope angle.
4. Technical and economic parameters defining underground mineral resource: mining cost US$27.62/t, G&A US$0.55/t, and 5% dilution. Underground mineral resources are only reported for material located outside of the open pit mineral resource shells. Designation as open pit or underground mineral resources are not confirmatory of the mining method that may be employed at the mine design stage.
5. Technical and economic parameters defining processing: Oxide heap leach (HL) processing cost of US$2.24/t assuming 86.3% recoveries, enriched HL processing cost of US$2.13/t assuming 90.5% recoveries, sulphide mill processing cost of US$8.50/t assuming 92% recoveries. HL selling cost of US$0.27/lb; Mill selling cost of US$0.62/lb.
6. Royalties of 3.18% and 2.5% apply to the ASCU properties and state land respectively. No royalties apply to the MainSpring property.
7. Variable cut-off grades were reported depending on material type, potential mining method, potential processing method, and applicable royalties. For ASCU properties – Oxide open pit or underground material = 0.099% or 0.549% TSol respectively; enriched open pit or underground material = 0.092% or 0.522% TSol respectively; primary open pit or underground material = 0.226% or 0.691% CuT respectively.For state land property – Oxide open pit or underground material = 0.098 % or 0.545% TSol respectively; enriched open pit or underground material = 0.092% or 0.518% TSol respectively; primary openpit or underground material = 0.225% or 0.686% CuT respectively.For MainSpring properties – Oxide openpit or underground material = 0.096% or 0.532% TSol respectively; enriched open pit or underground material = 0.089% or 0.505% TSol respectively; primary open pit or underground material = 0.219% or 0.669% CuT respectively. Stockpile cutoff = 0.095% TSol.
8. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, sociopolitical, marketing, or other relevant factors.
9. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource; it is uncertain if further exploration will result in upgrading them to an indicated or measured classification.
10. Totals may not add up due to rounding.

George Ogilvie, Arizona Sonoran Copper Company President and CEO commented, “The new Parks/Salyer deposit, inclusive of MainSpring could be transformational for the Company as we foresee the opportunity to right size a larger operation and rescope Parks/Salyer to an open pit mine. The pending result would lead to reduced mining execution risks and lowered operating costs which could manifest themselves in improved Project economics.  The key difference in the larger mineral resource used for the pending PEA, relates to the MainSpring property acquisition and subsequent inferred drilling program identifying the continuation of near surface mineralization south of Parks/Salyer.”

Doug Bowden, Arizona Sonoran Copper Company VP Exploration stated, “Our Cactus Project is a successful copper porphyry growth story resulting from an aggressive exploration program. Our mineral resource journey began with our initial PEA in 2021, and continuously expanded outward from the Cactus Pit area to include Parks/Salyer and most recently MainSpring within the 5.5 km mine trend. The Parks/Salyer discovery includes significant quantities of high-grade (+1.00% CuT) copper, similar to the grades in Cactus East (as shown in FIGURES  2 and 3). Through systematic step out and infill drilling following our first mineral resource in 2021 to today’s update, our Cactus Project MRE indicates an increase to the M&I by an impressive 353%, from 1.61 Billion lbs to 7.29 Billion lbs of copper, while the inferred mineral resources increased 94%, from 1.98 Billion lbs to 3.84 Billion lbs. Lastly, these mineral resource areas have responded favorably and impressively to infill drilling with a consistently high conversion rate into higher resource classifications and will look forward to future infill programs as we move through the technical studies.”

Cactus Mineral Resources Estimate
The Parks/Salyer mineral resources as shown in FIGURE 3, inclusive of MainSpring, indicate 339.0 M short tons @ 0.71% CuT in the M&I category and 299.2 M short tons @ 0.43% CuT in the Inferred Category. Notably, Parks/Salyer is mostly contained within an optimized resource open pit shell indicating the rescoped potential of open pit mining of the deposit with the inclusion of shallower mineralization located on the MainSpring property. Parks/Salyer mineral resources were calculated with a cutoff date of March 31, 2024. There are no material changes to the Cactus East, West and Stockpile deposits as reported within the FEB 21, 2024 PFS.

For the purposes of the MRE, Cactus East reports as open pit mineral resources in compliance with Reasonable Prospects for Eventual Economic Extraction (“RPEEE”). For the purposes of the pending PEA, Cactus East is expected to be exploited as an underground operation.

Table 2 below reports a direct like–for-like comparison of the updated July 11, 2024, MRE, to the MRE comprising the Prefeasibility Study (“PFS”) MRE and illustrates a significant change to the Measured (+1,900%) and Inferred (+60%) categories, as it relates to successful expansion and infill programs at Parks/Salyer, including the MainSpring Property. The Table below calculates a combination of the Soluble Copper grades and Total Copper grades based on the leachable (oxides and enriched) zones, and the primary sulphides, respectively, going forward, mineral resources will calculate both the contained Total Copper and Soluble Copper inventory. Table 2 uses the same notes and assumptions as Table 1.

Table 2: The Cactus Project Mineral Resource Estimate, as of July 11, 2024, as Compared to August 31, 2023

 PREVIOUS MINERAL RESOURCE
(As of August 31, 2023)		UPDATED MINERAL RESOURCE
(As of July 11, 2024)		VARIANCE
Material TypeTons
kt		Grade
Cu%¹		Contained
Cu k lbs		Tons
kt		Grade
Cu%¹		Contained
Cu k lbs		Cu Content
%
Leachable9,1000.23¹41,90055,2000.79¹873,8001,985%
Primary1,3000.328,00012,3000.51124,4001,455%
Total Measured10,4000.2449,80067,5000.74998,2001,904%
Leachable348,5000.63¹4,387,200414,8000.53¹4,365,7000%
Primary86,8000.43737,000150,4000.391,173,30059%
Total Indicated435,3000.595,124,200565,2000.495,539,0008%
Leachable357,6000.62¹4,429,000470,0000.56¹5,239,50018%
Primary88,0000.42745,000162,7000.401,297,60074%
Total M&I445,7000.585,174,000632,6000.526,537,10026%
Leachable107,7000.61¹1,307,900299,6000.38¹2,262,80073%
Primary126,2000.36900,000174,5000.361,267,50041%
Total Inferred233,8000.472,207,900474,0000.373,530,30060%

NOTES: refer to TABLE 1
1 Grade shown is Soluble Copper (Cu TSol)

Drilling programs
The updated Cactus Project MRE is supported by a systematic drilling program targeting MainSpring, the near surface southern extension of the Parks/Salyer deposit, and infill to measured drilling at Parks/Salyer, within the 5.5 kilometre (“km”) (~3.5 mile (“mi”)) mine trend. Mineral resources were classified using data of 125 ft (38 m) drill spacing for Measured, 250 ft (76 m) drill spacing for Indicated and 500 ft (~152 m) drill spacing for Inferred. The in-ground mineral resources were calculated using 435 total drillholes including 161 new holes drilled into the Cactus West and East deposits since 2019 and 159 new holes drilled into the Parks/Salyer deposits since 2020. The Stockpile mineral resource was calculated using 514 new holes drilled into the stockpile on a regular grid since 2021. The isolated MainSpring mineral resource estimate containing 244.9 M short tons @ 0.39% CuT, is shown in TABLE 3 below, while each deposit is broken out separately within TABLE 4.

TABLE 3: MainSpring Property Resource contained within New Parks/Salyer Mineral Resource

Material
Type		Tons
kt		Grade
CuT %		Grade
Cu Tsol %		Contained
Total Cu (k lbs)		Contained
Cu Tsol (k lbs)
Inferred
Total Leachable200,1000.390.341,562,7001,370,300
Total Primary44,8000.380.04344,00033,100
Total Inferred244,9000.390.291,906,7001,403,500

NOTES: refer to TABLE 1

TABLE 4: Cactus Project Mineral Resources by Resource Area

Material
Type		Tons
kt		Grade
CuT %		Grade
Cu Tsol %		Contained
Total Cu (k lbs)		Contained
Cu Tsol (k lbs)
Measured
LeachableParks Salyer O/P45,0001.090.92981,200828,700
Parks Salyer U/G51.300.92100100
Cactus O/P10,2000.250.2250,80045,000
Cactus U/Gn/a
Stockpilen/a
Total Leachable         55,2000.930.79     1,032,100      873,800
 
PrimaryParks Salyer O/P10,9000.530.06115,50012,200
Parks Salyer U/G400.770.07700100
Cactus O/P1,3000.320.048,2001,100
Cactus U/Gn/a
Stockpilen/a
Total Primary12,3000.510.05124,40013,400
Total Measured67,5000.860.661,156,500887,200
Indicated
 LeachableParks Salyer O/P201,3000.750.663,027,0002,671,100
Parks Salyer U/G1,1000.960.8521,40018,900
Cactus O/P131,0000.550.491,446,1001,277,000
Cactus U/G10,2001.040.89213,100181,100
Stockpile71,1000.180.15257,400217,600
Total Leachable414,8000.600.534,965,0004,365,700
 
 PrimaryParks Salyer O/P80,4000.420.04680,60069,200
Parks Salyer U/G1000.770.121,200200
Cactus O/P68,3000.340.03465,80045,100
Cactus U/G1,6000.810.3625,70011,500
Stockpilen/a
Total Primary150,4000.390.041,173,300126,000
Total Indicated565,2000.540.406,138,2004,491,700
Measured & Indicated
 LeachableParks Salyer O/P246,3000.810.714,008,2003,499,800
Parks Salyer U/G1,1000.980.8621,50019,000
Cactus O/P141,2000.530.471,496,9001,322,000
Cactus U/G10,2001.040.89213,100181,100
Stockpile71,1000.180.15257,400217,600
Total Leachable470,0000.640.565,997,2005,239,500
 
 PrimaryParks Salyer O/P91,3000.440.04796,10081,400
Parks Salyer U/G1000.950.151,900300
Cactus O/P69,6000.340.03474,00046,200
Cactus U/G1,6000.800.3625,70011,500
Stockpilen/a
Total Primary162,7000.400.041,297,600139,400
Total M&I632,6000.580.437,294,8005,378,900
Inferred
 LeachableParks Salyer O/P234,5000.420.381,990,2001,767,500
Parks Salyer U/G9,6000.840.76161,200146,300
Cactus O/P50,4000.340.28344,600286,900
Cactus U/G3,9000.940.7772,80059,100
Stockpile1,2000.150.133,6003,000
Total Leachable299,6000.430.382,572,4002,262,800
 
 PrimaryParks Salyer O/P54,1000.390.04427,30041,000
Parks Salyer U/G1,0000.820.2616,7005,300
Cactus O/P117,8000.340.03798,70068,300
Cactus U/G1,5000.820.3324,90010,200
Stockpilen/a
Total Primary174,5000.360.041,267,600124,800
Total Inferred474,0000.410.253,839,9002,387,500

NOTES: refer to TABLE 1

Cactus Project Mineral Resource Modelling
The geological modelling, statistical analysis, and resource estimation in respect of the Cactus Project MRE were prepared by the ASCU resource team and by Allan Schappert – CPG #11758, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure for Mineral Projects (“NI 43-101”).

The Cactus Project MRE updates are based upon updated drilling data and interpretations. The Cactus Mineral Resource model was developed in Vulcan. Drilling data is supported by industry standard quality assurance and quality control programs, with quality control sampling comprising preparation blanks, certified reference materials, and field and pulp duplicate analyses. Review of the QA/QC data indicates it is of a quality suitable for use in resource estimation.

The mineralized domains are consistent with domaining for porphyry copper systems. Mineralized domains represent combinations of rock type and copper mineral zonation associated with secondary copper enrichment weathering processes. The main mineral zones are leached, oxide, enriched, and primary. Mineral zones are determined by logging and the assay attributes of sequential copper analyses.

Physical density measurements have been undertaken across the deposits, both historically by ASARCO, and more recently by ASCU. Density measurements on inground deposits use the wet / dry weight method and comprise 3,372 samples for Cactus and 143 samples for Parks/Salyer. Due to the unconsolidated nature of the stockpile material, physical bulk density measurements were attained by weight and volume calculations. Four test holes were excavated from which the material removed was dried and weight and the volume of each hole calculated.

Copper grades were estimated using Ordinary Kriging, using 20 ft (6.1 m) composites and top cutting determined by log normal probability plots on a per domain basis. Grade estimates were validated using visual and statistical methods including statistical distribution comparisons, visual comparison against the drilling data on sections, swath plots comparing block grades trends against de-clustered composites, and by smoothing checks using change of support. The effective date of the Cactus Project MRE is July 11, 2024. The Cactus Project MRE will form the basis of a PEA technical report prepared in accordance with NI 43-101, and prepared by M3 Engineering, which will be filed on SEDAR+ under the Company’s issuer profile within 45 days of this news release and will also be available at such time on the Company’s website. The PFS will be superseded in all respects once the Company has publicly disclosed the PEA.

Quality Assurance / Quality Control
Drilling completed on the project between 2020 and 2024 was supervised by on-site ASCU personnel who prepared core samples for assay and implemented a full QA/QC program using blanks, standards, and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Skyline Laboratories in Tucson AZ for analysis. Skyline’s quality control system complies with global certifications for Quality ISO9001:2008.

Scientific and technical information contained in this news release have been reviewed and verified by Allan Schappert – CPG #11758, who is a qualified person as defined by NI 43-101.

Links from the Press Release
Figures: https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
February 21, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-announces-a-positive-pre-feasibility-study-for-the-cactus-mine-project-with-a-us-509m-post-tax-npv-and-55-kstpa/

Neither the TSX nor the regulating authority has approved or disproved the information contained in this news release.

About Arizona Sonoran Copper Company (www.arizonasonoran.com | www.cactusmine.com)
ASCU’s objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus Project that could generate robust returns for investors and provide a long term sustainable and responsible operation for the community and all stakeholders. The Company’s principal asset is a 100% interest in the brownfield Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise.

For more information:

Alison Dwoskin, Director, Investor Relations
647-233-4348
adwoskin@arizonasonoran.com

George Ogilvie, President, CEO and Director
416-723-0458
gogilvie@arizonasonoran.com

Forward-Looking Statements
This news release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All information, other than historical fact, are forward-looking information. Generally, statements containing forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or the negative connotation thereof. Forward looking information includes, but is not limited to, the Company’s future operations, future exploration and development activities or other development plans, the potential of the Cactus Project (including the Parks/Salyer deposit), timing of economic studies and mineral resource estimates including the filing of the technical report in respect of the Cactus Project MRE, the results (if any) of further exploration work to define and or upgrade mineral resources and reserves at the Company’s properties; the anticipated exploration, drilling, development, construction and other activities of ASCU and the result of such activities; the mineral resources and mineral reserves estimates of the Cactus Project including the Cactus Project MRE (and the assumptions underlying such estimates); the ability of exploration work (including drilling) to accurately predict mineralization; the ability of management to understand the geology and potential of the Cactus Project; the completion and timing for the filing of the technical report in respect of the Cactus Project MRE; the timing and ability of the Company to produce a preliminary economic assessment (if at all); the scope of any future technical reports and studies conducted by ASCU; the ability to realize upon mineralization in a manner that is economic; the impact of bringing the Parks/Salyer deposit including the MainSpring property into the mine plan; , and corporate and technical objectives. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties that could affect the outcome include, among others: future prices and the supply of metals; risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; the results of drilling; the ability to access capital on terms acceptable to the Company necessary to incur the expenditures required to retain and advance the properties; changes in exploration, development or mining plans due to exploration results and changing budget priorities of the Company or its joint venture partners; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs or further exploration work; the ability to continue exploration and development of the ASCU properties; changes in any of the assumptions underlying the Cactus Project MRE; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain any required consents, permits or approvals; and the additional risks described in ASCU’s most recently filed Annual Information Form, annual and interim management’s discussion and analysis, copies of which are available on SEDAR+ (www.sedarplus.ca) under ASCU’s issuer profile.

Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The Company considers its assumptions to be reasonable based on information currently available but cautions the reader that their assumptions regarding future events, many of which may be beyond the control of the Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affects the Company and its operations. Accordingly, readers should not place undue reliance on forward-looking information and are urged to carefully consider the foregoing factors as well as other uncertainties and risks outlined in the Company’s public disclosure record. Forward-looking statements contained herein are made as of the date of this news release and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

Categories
Energy Junior Mining Project Generators

What Rome’s Currency Debasement Tells us About the Future of the US Dollar…

By David Stockman

July 13, 2024

Well, here’s an interesting historical repeat. Apparently, it took the Roman Empire about 200 years to reduce the value of its currency, the silver Denarius, by 95%. As shown in the chart below, the silver content of the Roman currency had been nearly 100% at the peak of the Empire in 65 AD, but by 268 AD the coin had been clipped and debased so thoroughly that it was comprised of less than 5% silver.

Needless to say, inflation became rampant, causing the financial foundation of the Roman Empire to eventually collapse. In the process, future generations and nations got an unmistakable lesson: Debauching the money is absolutely not the road to sustainable prosperity.

Unfortunately, that has not prevented governments from attempting the currency depreciation route again and again. In our own era, the 111 year history of the Federal Reserve provides a striking case in point. In roughly half the time it took the Romans, the Fed has managed to accomplish the same 95% depreciation of the US dollar.

That’s right. The purchasing power of the consumer dollar as measured by the CPI has dropped from 100 cents when the Fed opened for business in 1914 to barely 3 cents today.

Index of Dollar’s Purchasing Power Since 1914 As Measured By The CPI

And yet and yet. After the most recent surge of inflation, the Fed is at it again. In today’s Congressional testimony, Chairman Powell as much as claimed victory and implied that the next round of rate cuts would soon commence, perhaps as early as September.

Reducing policy restraint too late or too little could unduly weaken economic activity and employment,” Powell said as part of his semiannual update on monetary policy. “More good data would strengthen our confidence that inflation is moving sustainably toward 2 percent.”

Let’s not mince words. What in the hell is he talking about?Schweizer, PeterBest Price: $10.54Buy New $18.15(as of 06:37 UTC – Details)

The implication is that the Fed never has to make amends. If the inflation genie gets out of the bottle and pushes the general price level sharply higher, why the thing to do is to just brake the surge and advise the people to lick their wounds with respect to the depleted value of their savings and the waning purchasing power of their paycheck.

In fact, current Fed policy is simply a one-way ratchet. If inflation exceeds its utterly arbitrary 2.00% target, there is no off-setting correction and restoration of purchasing power. Effectively cumulative inflation is written off as a bad debt.

Unfortunately for main street households and businesses, this embedded inflation-ratchet policy assumes inflation is an equal opportunity cipher. That is to say, even at the Fed’s sacrosanct 2.00% target, the cost of goods and services goes up 2.00% and so, purportedly, wages, rents, profits, interest and all other forms of income rise in lockstep. No one is worse for the inflationary wear—households and businesses just need to keep adjusting both sides of their income statements and balance sheets by the Fed’s preferred PCE deflator and all will be copacetic.

That’s absurd on its face, of course. Right from the get go its obvious that borrowers would get a windfall of depreciated debts and savers would suffer severe confiscation of wealth over even a quarter century—to say nothing of the one and two century debauch of the silver Denarius and dollar shown above. In fact, after 25-years at the Fed’s precise 2.00% target, borrowers would be 40% richer and savers 40% poorer than under a regime of true price stability.

Why in the world today’s central bankers insist upon punishing savers and rewarding borrowers is no mystery. They embrace lock, stock and barrel—whether they acknowledge it or not—the horrid Keynesian fallacy that capitalism is inherently defective because humankind is wont to excessively save and hoard when they should be spending freely and living high on the hog.

It’s really that simple. Even a decent regard for the truism that economic growth and wealth gains are a function of savings and investment would negate the Fed’s pro-inflation policy on its face. Yet as it has happened, the drastic bias of central bank policy in favor of borrowers in all sectors—government, business, households and finance—has essentially extinguished America’s generation of net national savings.

As shown below, the latter measures the entirety of savings in the household and business sectors minus government borrowings. Yet since the Fed began de facto inflation-targeting in the late 1980s, the net national savings rate has headed steadily toward the zero bound. In fact, during Q1 2024 it was actually -0.5% of GDP— a figure on the opposite side of the universe compared to the +7-10% of GDP levels that prevailed during the heyday of middle class prosperity prior to the era of Bubbles Alan Greenspan and his heirs and assigns.

Needless to say, when there is nothing left in the savings till after governments gorge themselves at the borrowing window, where is the investment for productivity and growth supposed to come from?

In truth, the Fed never troubles itself with the question of savings. If the word is even mentioned at all in its post-meeting communiques it’s in the context of a short-run downward blip in household spending levels owing mathematically to what usually amounts to a tiny and transient increase in the savings rate.

Still, seven decades of data do not lie. Systematically and relentlessly, the Fed’s baleful bias against savers and for borrowers has literally dried-up the US economy’s supply of growth oxygen.

Net National Savings Rate. 1955 to 2024

For want of doubt, here is the inflation-adjusted interest rate on a two-years savings instrument, proxied here by the risk-free yield on the two-year UST minus the Y/Y change in the 16% trimmed mean CPI. The chart obviously speaks for itself, but it needs be noted that during the entire 15-year period between July 2008 on the eve of the Great Financial Crisis and July 2023, the geniuses in the Eccles Building had pegged the real yield at negative levels!

Check Amazon for Pricing.Even now after what the acolytes at the Wall Street Journal call the most rapid rise in interest rates in two decades, the real yield in May was just +1.4%. So why in the world is that considered onerous—a threat to the Fed’s alleged twin goal of maximum employment?

Stated differently, if the US economy can’t stand real rates peeking above the zero bound at just 1.4% on two-year instruments and is therefore in dire need of a new round of rate cuts, how in the world can the net national savings rate be lifted out of the economic gutter where it now resides?

Of course, the Fed never mentions real interest rates, either, except for the squirrely extractions it derives by comparing yields on inflation-protected treasuries (TIPS) versus their fixed coupon counterparts. But that has absolutely nothing to do with real yields, and merely reflects trading games played by technicians down in the bond pits.

Inflation-Adjusted Yield On 2-Year USTs, 1984 to 2024

Then again, the Fed subscribes to what amounts to bathtub economics. It thinks growth happens when demand is stimulated up to the brim of potential GDP, and that left to its own devices free market capitalism always whiffs by saving too much and spending too little. So cheap interest rates become the instrument of macro-economic stimulus, purportedly goosing demand until the bathtub of spending is full to the brim and economic growth and employment are maximized.

Alas, in a fully integrated and seamless $110 trillion global economy, the bathtub model of domestic economics is just plain hideous nonsense. Yet here were are again with the Keynesian fools in the Eccles Building itching to restart the printing presses and drive real interest rates and the net national savings rate back into the economic dungeon below the zero bound.

They never learn. Ever.

Reprinted with permission from David Stockman’s Contra Corner.

The Best of David Stockman

Former Congressman David A. Stockman was Reagan’s OMB director, which he wrote about in his best-selling book, . His latest books are The Great Deformation: The Corruption of Capitalism in America and . He’s the editor and publisher of the new David Stockman’s Contra Corner. He was an original partner in the Blackstone Group, and reads LRC the first thing every morning.

Copyright © David Stockman