Burlington, Ontario–(Newsfile Corp. – November 1, 2023) – Silver Bullet Mines Corp. (TSXV: SBMI) (OTCQB: SBMCF) (‘SBMI’ or ‘the Company’) announces a third potential revenue stream. This potential revenue stream flows from SBMI’s relationship with a lender announced earlier this year.
Earlier this year SBMI announced it had entered into an agreement with an arm’s length third party (the “Investor/Client”) for the amount of USD$350,000. This investment was structured as a loan having a five year term and a zero per cent interest rate. Following extensive due diligence of SBMI’s operations, the Investor/Client asked SBMI to work with it to advance other projects in which the Investor/Client is involved. The first two such projects under consideration were in Arizona and Colorado.
The Investor/Client and SBMI have entered into a verbal agreement whereby the Investor/Client will ship approximately 900 pounds of what it advises to be high grade gold concentrate to SBMI’s mill in Globe, Arizona from an Investor/Client mine in Colorado, to be processed through SBMI’s modular processing facility. SBMI expects to receive the material in early November, following which it intends to run the material through its system to determine recovery, develop a process flowsheet, and ultimately pour gold dore bars.
The design of SBMI’s 100% owned mill affords the flexibility to process many different types of material and optimize the resulting output with its state of the art gravity circuit. The Investor/Client has indicated the facility that produced the concentrate is not capable of processing the material to a purity desired by the Investor/Client. This concentrate may be well suited for SBMI’s circuit to yield a higher purity gold product than the other facility could provide.
Remuneration for this work being done for the Investor/Client will be determined after SBMI’s receipt of the material and initial evaluation.
The Investor/Client has advised it has a substantial stockpile of similar material to be processed by SBMI’s mill, assuming this test run is successful.
If this run is successful, processing material for the Investor/Client is a third potential near-term revenue stream for SBMI, with the other two being silver production out of the Buckeye Silver Mine and silver / gold production from the Washington Mine in Idaho. Production at Idaho will not commence until stable production is achieved in Arizona. The delivery of this material shows the Investor/Client strongly believes SBMI has the capacity and ability to provide the necessary services and achieve the Investor/Client’s desired results.
The Company will continue to update as this project moves forward.
SBMI is in discussions with other parties whereby SBMI will process third party material, and the Company will advise as such discussions progress.
At the Buckeye Mine, the team continues to drift in Zone1 towards what management believes is a volume of higher grade silver mineralization.
For further information, please contact:
John Carter Silver Bullet Mines Corp., CEO cartera@sympatico.ca +1 (905) 302-3843
Peter M. Clausi Silver Bullet Mines Corp., VP Capital Markets pclausi@brantcapital.ca +1 (416) 890-1232
Cautionary and Forward-Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions, and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, SBMI will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the impact of SARS CoV-2 or any other global virus; reliance on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain for materials for SBMI to use in the production and processing of ore; shareholder and regulatory approvals; activities and attitudes of communities local to the location of the SBMI’s properties; risks of future legal proceedings; income tax matters; fires, floods and other natural phenomena; the rate of inflation; availability and terms of financing; distribution of securities; commodities pricing; currency movements, especially as between the USD and CDN; effect of market interest rates on price of securities; and, potential dilution. SARS CoV-2 and other potential global pathogens create risks that at this time are immeasurable and impossible to define.
HALIFAX, Nova Scotia, Nov. 01, 2023 (GLOBE NEWSWIRE) — Morien Resources Corp. (“Morien” or the “Company“) (TSX-V:MOX), is pleased to announce that Vulcan Materials Company (“Vulcan”), owner of the Black Point Quarry Project (“BPQ Project” or the “Project”) in Guysborough County, Nova Scotia, is now advancing the Project. Vulcan has indicated a tentative, directional time goal of 18-months to complete various permit-related monitoring plans and commitments as outlined in the Project’s approved environmental assessment.
Morien owns an industry competitive production royalty (“Royalty”) payable on all material sold from the Project.
The BPQ Project hosts a large granite deposit along the southern shore of Chedabucto Bay in Guysborough County, Nova Scotia, with suitable characteristics for the development of a crushed stone marine export operation for supplying markets in the eastern United States. The expected mine life of the Project exceeds 50-years allowing for long-term, multi-generational economic prosperity in the Guysborough region. It is anticipated the operation will create 50-70 direct, full-time jobs in addition to creating multiple spin-off economic impacts in the region.
Since 2017, Morien has received an advanced minimum royalty payment of $25,000 per quarter from Vulcan, subjected to annual inflationary adjustments according to the Producer Price Index for crushed stone. All advanced payments are recorded by Morien as unearned revenue and will be credited against future production royalties from the Project. As at June 30, 2023, Morien’s total recorded unearned revenue amounted to $679,000. Morien is due a milestone payment from Vulcan in the amount of $400,000, to be paid upon the completion of related and pending permitting agreements for the Project.
About Vulcan
Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the United States largest producer of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete.
About Morien
Morien is a Nova Scotia based, mining development company created in 2012 to be a vehicle of direct prosperity for Nova Scotians, its largest shareholder group. Led by Nova Scotians, Morien’s primary assets are a royalty on the sale of coal from the producing Donkin Mine in Cape Breton, Nova Scotia, and a royalty on the sale of crushed stone from the permitted Black Point Quarry Project, in Guysborough County, Nova Scotia. Morien’s management team exercises ruthless discipline in managing both the assets and liabilities of the Company. The Company’s management and its Board of Directors consider shareholder returns to be paramount over corporate size, number or scale of assets and industry recognition. The Company has 51,292,000 issued and outstanding common shares and a fully diluted position of 54,192,000. Further information is available at www.MorienRes.com.
Forward-Looking Statements
Some of the statements in this news release may constitute “forward-looking information” as defined under applicable securities laws. These statements reflect Morien’s current expectations of future revenues and business prospects and opportunities and are based on information currently available to Morien. Morien cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what Morien currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include risks and uncertainties described in documents filed by Morien with the Canadian securities regulators on SEDAR (www.sedar.com) from time to time. Morien cautions that its royalty revenue will be based on production by third party property owners and operators who will be responsible for determining the manner and timing for the properties forming part of Morien’s royalty portfolio. These third party owners and operators are also subject to risk factors that could cause actual results to differ materially from those predicted herein including: volatility in financial markets or general economic conditions; capital requirements and the need for additional financing; fluctuations in the rates of exchange for the currencies of Canada and the United States; prices for commodities including coal and aggregate; unanticipated changes in production, mineral reserves and mineral resources, metallurgical recoveries and/or exploration results; changes in regulations and unpredictable political or economic developments; loss of key personnel; labour disputes; and ineffective title to mineral claims or property. There are other business risks and hazards associated with mineral exploration, development and mining. Although Morien believes that the forward-looking information contained herein is based on reasonable assumptions (including assumptions relating to economic, market and political conditions, the Company’s working capital requirements and the accuracy of information supplied by the operators of the properties in which the Company has a royalty interest), readers cannot be assured that actual results will be consistent with such statements. Morien expressly disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. All dollar values discussed herein are in Canadian dollars. Any financial outlook or future-oriented financial information in this news release, as defined by applicable securities laws, has been approved by management of Morien as of the date of this news release. Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such outlook or information should not be used for purposes other than for which it is disclosed in this news release.
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.
For more information, please contact:
Dawson Brisco, President & CEO Phone: (902) 403-3149 dbrisco@MorienRes.com or John P.A. Budreski, Executive Chairman Phone: (416) 930-0914 www.MorienRes.com
Vancouver, British Columbia–(Newsfile Corp. – October 30, 2023) – Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF) (the “Company” or “Dolly Varden“) is pleased to announce that the Company has today entered into an agreement (“Subscription Agreement“) for a further strategic investment by Hecla Canada Ltd. (“Hecla“) whereby Hecla has agreed to subscribe for 15,384,616 common shares of the Company (“Common Shares“) at a price of $0.65 per Common Share for gross proceeds of $10 million (“Offering“). Upon completion of the Offering, Hecla will increase its shareholding in the Company to 15.7% from 10.6%, calculated on an undiluted basis.
Closing of the Offering is anticipated to occur on or about November 1, 2023. Closing of the Offering remains subject to customary closing conditions, including the approval of the TSX Venture Exchange (the “TSXV“).
Shawn Khunkhun, Chief Executive Officer of Dolly Varden Silver remarked, “Hecla’s support for Dolly Varden Silver’s high-grade Kitsault Valley Project in BC’s prolific Golden Triangle is validated with today’s financing news. Hecla is the world’s fastest growing established silver producer, the largest in the US and soon to be in Canada. We celebrate Hecla agreeing to increase their stake in Dolly from 10% to 15% and want to extend our gratitude for their financial and technical support of the Company and the project.”
In connection with the Offering, Dolly Varden has agreed with Hecla that the Company will not complete any further debt or equity financings for the remainder of 2023. Additionally, Dolly Varden has agreed that between January 1, 2024 and September 1, 2024, without the prior consent of Hecla, it will not complete any debt or equity financings other than equity financings for net proceeds to the Company of up to $15 million and provided that the issue price under such financing is greater than $0.65 per security. These restrictions do not capture customary exceptions such as the issuances of securities related to the Company’s equity based incentive compensation, the exercise of existing convertible securities and strategic transactions for non-cash consideration.
$6 million of the net proceeds from the Offering will be used for exploration expenditures, mineral resource expansion and related costs in the Kitsault Valley project, located in northwestern British Columbia, Canada, with the balanced to be used for working capital and G&A costs.
No bonuses, finder’s fee or commissions were paid in connection with the Offering. The Common Shares issued pursuant to the Offering will be subject to a four-month hold period from the closing of the Offering in addition to any other restrictions under applicable law.
Hecla is considered a related party of the Company under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“) as a result of its ownership of more than 10% of the currently issued and outstanding Common Shares. As a result, the issuance of Common Shares to Hecla pursuant to the Offerings would be considered a related party transaction. The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the Offering by Hecla does not exceed 25% of the fair market value of the Company’s market capitalization. The Company did not file a material change report in respect of the related party transaction 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time. Further details will be provided in a material change report to be filed by the Company subsequent to the dissemination of this news release.
The Common Shares to be acquired by Hecla will be acquired for investment purposes by Hecla. Hecla does not have any present intention to acquire ownership of, or control over, additional securities of Dolly Varden. It is the intention of Hecla to evaluate its investment in Dolly Varden on a continuing basis and such holdings may be increased or decreased in the future.
On October 30, 2023, Hecla entered into the Subscription Agreement. The 15,384,616 Common Shares to be acquired by Hecla represent approximately 6.04% of the 254,681,283 Common Shares outstanding immediately prior to when the Subscription Agreement was entered into (calculated on an undiluted basis). Prior to entering into the Subscription Agreement, Hecla held 27,040,880 Common Shares representing 10.62% of the outstanding Common Shares. Hecla does not hold any securities convertible into Common Shares. After completion of the subscription, Hecla will hold 42,425,496 Common Shares, representing 15.71% of the then outstanding 270,065,899 Common Shares (calculated on an undiluted basis). The change in Hecla’s percentage ownership is therefore an increase of 5.09% on an undiluted basis.
Pursuant to the investor rights agreement between Fury Gold Mines Ltd. (“Fury“) and the Company dated February 25, 2022, Fury has waived its anti-dilution right in respect of the Offering.
About Dolly Varden Silver Corporation
Dolly Varden Silver Corporation is a mineral exploration company focused on advancing its 100% held Kitsault Valley Project (which combines the Dolly Varden Project and the Homestake Ridge Project) located in the Golden Triangle of British Columbia, Canada, 25kms by road to tide water. The 163 sq. km. project hosts the high-grade silver and gold resources of Dolly Varden and Homestake Ridge along with the past producing Dolly Varden and Torbrit silver mines. It is considered to be prospective for hosting further precious metal deposits, being on the same structural and stratigraphic belts that host numerous other, high-grade deposits, such as Eskay Creek and Brucejack. The Kitsault Valley Project also contains the Big Bulk property which is prospective for porphyry and skarn style copper and gold mineralization, similar to other such deposits in the region (Red Mountain, KSM, Red Chris).
Forward-Looking Statements
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 the Company’s actual results, performance or achievements, or developments 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.
Forward-looking statements in this news release include, among others, the intended use of proceeds from the Offering, the intended release of drilling information, the anticipated closing of the Offering and other statements that are not historical facts. These forward-looking statements are based on management’s current expectations and beliefs and assume, among other things, the receipt of approval of the Offering from the TSXV, use of proceeds of the Offering, the adequacy of the Company’s current financial position, the ability of the Company to successfully pursue its current development plans, that future sources of funding will be available to the Company on desirable and permitted terms, that relevant commodity prices will remain at levels that are economically viable for the Company and that the Company will receive relevant permits in a timely manner in order to enable its operations, but given the uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward-looking statements or information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the risk that the Company may not be able to complete the Offering on the terms described herein or at all; the Company may require additional financing from time to time in order to continue its operations which may not be available when needed or on acceptable terms and conditions acceptable; compliance with extensive government regulation; domestic and foreign laws and regulations could adversely affect the Company’s business and results of operations; and the stock markets have experienced volatility that often has been unrelated to the performance of companies and these fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance. The risk factors identified herein are not intended to represent a complete list of factors that could affect the Company. For additional information on risks and uncertainties, see the Company’s annual information form dated April 11, 2023 for the year ended December 31, 2022 and the Company’s base-shelf prospectus dated April 25, 2023, both available on SEDAR+ at www.sedarplus.ca.
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. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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 news release.
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two sets of high grade assay results from the Treasure Room
initial assay results from the targeted mineralized zone at the Buckeye Mine in Arizona (Zone1),
a financing, and
the re-pricing of warrants.
The Treasure Room is located roughly 310 feet from the portal, or roughly halfway to Zone1 along the vein structure. On March 1, 2022 SBMI reported assay results from grab samples from the Treasure Room as follows:
GRAB SAMPLES
SAMPLE I.D
Silver
Silver
[oz/ton]
[ppm]
1
14.0
480.2
2
15.2
521.4
3
12.2
418.5
4
13.6
466.5
5
13.8
473.3
6
35.2
1207.4
7
125.0
4287.5
8
20.2
692.9
9
21.2
727.2
Additional selected grab samples were recently taken from the Treasure Room area, whose assay results were 8.6, 90.3, 90.6, and 229.7 ounces per ton silver. Paper thin plates of native silver, analyzed with a hand held XRF, were also observed along certain fractures.
Historically mining was carried out in the Treasure Room, resulting in stopes and drifts. A third set of selected grab samples from various stopes in the Treasure Room were assayed on October 23, 2023 and returned as follows:
from stope 25 – 74.0 Ozs./Ton silver
from stope 32 – 11.6 Ozs./Ton silver
from stope 33 – 212.2 Ozs./Ton silver
from stope 34 – 101.8 Ozs./Ton silver
Readers are cautioned that such samples may not be representative of the Treasure Room or the Buckeye Mine as a whole.
SBMI intends to stabilize the Treasure Room and provide other safety measures to allow access to the higher grade material located within the Treasure Room’s continuation of the vein. This will provide an additional supply of mineralized material for the mill and will also assist in refining a plan to mine that section of vein material. The Company believes the Treasure Room likely hosts more higher grade material at depth.
Zone1 begins roughly 700 feet from the portal. Twelve samples were assayed from the body of Zone1, with assay results from these preliminary samples averaging 2 oz per ton silver. Earlier assay results from the contact right edge with Zone1 over an initial width of 4 feet averaged 1 oz silver/t. Both of these averages are in line with management’s expectations. From past observations and past assays, the Company anticipates the silver grade to increase with further penetration into Zone1. Mineralized material will be shipped from Zone1 to the Company’s mill in Globe, Arizona when the grade is high enough to justify the cost of transportation.
Historically gold and copper values were also reported in Zone1. Current visual inspection of the vein material shows materials other than silver, for which SBMI cannot assay at its own onsite assay facility. SBMI has sent multiple samples of such material to an independent ISO 9001 certified lab for multielement analysis including gold and PGM.
The Company suffered through aberrant extremely hot weather in Arizona throughout most of August, 2023. For example, the temperature on the concrete ball mill pad during this period on occasion exceeded 150 degrees Fahrenheit. A wildfire proximate to the Buckeye Mine during that period caused by lightning further impeded SBMI’s efforts. The Company was unable to carry out work at the mill or at the Buckeye Mine during that period, and as a result was not able to generate cash flow. The Company now intends to bolster its financial position as it continues with operations.
SBMI intends to carry out a non-brokered financing (the “Financing”) of $500,000.00 by way of a private placement of units (each, a “Unit”) priced at $0.12 cents per Unit, resulting in the issuance of 4,166,666 shares. Each Unit will consist of one common share and a full warrant exercisable into one common share at $0.17 for a term of 2 years. There is no acceleration clause on these $0.17 warrants.
The Company also announces its intention to re-price previously issued warrants. SBMI intends to re-price all previously issued $0.60 warrants to $0.24, all previously issued $.50 warrants to $0.20, and all previously issued $0.30 warrants to $0.13. Regulatory approval is required for the Financing and to re-price warrants.
The Financing and the re-pricing of warrants are subject to regulatory approval.
QA/QC
All samples above were analyzed by SBMI at its facility near Globe, Arizona. They were processed through the Lab Jaw Crusher, Lab Hammer Mill and Splitter Box into an aliquot. Most of the pulverized aliquot was mixed with a flux and flour combination and melted in a crucible at 1,850 degree Fahrenheit, with the remainder being logged and archived. Upon cooling, the poured melt was in the form of a metal button and slag, following which a bone ash cupel was utilized to eliminate the lead in the button to form a bead. The bead was then weighed, following which a solution of 6 to 1 distilled water to nitric acid was utilized to dissolve the silver in the bead at approximately 175 degrees Fahrenheit. A much more detailed description of the process and a picture of the assay lab can be found at https://www.silverbulletmines.com/qaqcassaylab.
The SBMI facilities have been designed for quick production grade control and are not ISO compliant; however, duplicate sampling with other ISO labs has been done on past samples with good correlation.
Mr. Robert G. Komarechka, P.Geo., an independent consultant, has reviewed and verified SBMI’s work referred to herein, and is the Qualified Person for this release.
For further information, please contact:
John Carter Silver Bullet Mines Corp., CEO cartera@sympatico.ca +1 (905) 302-3843
Peter M. Clausi Silver Bullet Mines Corp., VP Capital Markets pclausi@brantcapital.ca +1 (416) 890-1232
Cautionary and Forward-Looking Statements
This news release contains certain statements that constitute forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts but represent management’s current expectation of future events, and can be identified by words such as “believe”, “expects”, “will”, “intends”, “plans”, “projects”, “anticipates”, “estimates”, “continues” and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions, and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, SBMI will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the impact of SARS CoV-2 or any other global virus; reliance on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain for materials for SBMI to use in the production and processing of ore; shareholder and regulatory approvals; activities and attitudes of communities local to the location of the SBMI’s properties; risks of future legal proceedings; income tax matters; fires, floods and other natural phenomena; the rate of inflation; availability and terms of financing; distribution of securities; commodities pricing; currency movements, especially as between the USD and CDN; effect of market interest rates on price of securities; and, potential dilution. SARS CoV-2 and other potential global pathogens create risks that at this time are immeasurable and impossible to define.
VANCOUVER, BC / ACCESSWIRE / October 19, 2023 / Metallic Minerals Corp. (TSXV:MMG)(OTCQB:MMNGF) (“Metallic Minerals” or the “Company”) is pleased to announce the completion of field activities at the Company’s 100%-owned, 166 square kilometer Keno Silver project, adjacent to Hecla Mining in the high-grade Keno Hill silver district of Canada’s Yukon Territory. The 2023 exploration program included 1,112 meters in four diamond drill holes focused on resource expansion at the Formo target, the highest-grade and largest target area to be included in an inaugural NI 43-101 mineral resource estimate for the property expected in Q4 2023. The Company also conducted additional soil geochemical sampling on open-ended earlier-stage targets for future drill campaigns.
Metallic Minerals holds the second largest land position in the Keno district with claims covering the east, and parts of central and western Keno Hill, including eight high-grade, shallow past-producing deposits. Hecla Mining holds the western portion of the Keno district and has recently started production from its Keno Hill mining operations, with full production expected by year-end.
Metallic Minerals President, Scott Petsel, stated: “We were very pleased to return to our Keno Silver project and complete this important new phase of exploration which focused on drilling mineralized extensions of our “resource-ready” target at Formo. With the key milestone of an inaugural resource estimate for Keno Silver on the near-term horizon, the team is already looking ahead to working from those initial deposit models to continue to add additional ounces with this and subsequent future programs. One of the major advantages the upcoming resources will have are their shallow depth which makes them amenable to low-cost bulk tonnage mining methods. The blueprint for rapid and dramatic resource growth in the Keno district, as demonstrated by prior operators, is to first identify the dominant mineralized vein structures and their orientations, then vector along trend and depth with successive drill campaigns. This tried-and-true methodology is being employed by Metallic Minerals to expand the Keno Silver project which is located within one of the world’s highest grade silver producing districts.”
Mr. Petsel continued, “In addition to our work at the Keno Silver project, drilling continues at our La Plata copper-silver-gold-PGE project in Colorado, where we have just passed 3,000 meters of a targeted 5,000-meter drill program. The first two drill holes reached 909 meters and 1,350 meters depth, respectively, and intersected continuous porphyry style mineralization. Our target is to complete two to three more step-out, expansion drill holes from the discovery hole announced in February 2023. Core is being processed and sent to the lab for assaying with initial results expected to come in through the fall of this year. The results of this drilling will be used to calculate a new mineral resource estimate for La Plata in 2024.”
About the Keno Silver Project
Keno Hill is one of the world’s highest-grade silver districts, with nearly 300 million ounces (“Moz”) of silver in past production and current M&I resources1,2 and featuring excellent existing infrastructure, including grid power, road access and nearby community services. In July 2022, Hecla Mining announced the acquisition of Alexco Resource Corp, which held the western portion of the district. Hecla Mining has started production at Keno Hill, which is now their highest-grade silver operation, and is expecting to be at full production by year end with a stated goal of producing 4-5 Moz of silver per year3. Metallic Minerals’ Keno Silver project is adjacent and contiguous with Hecla Mining ground, covering the east, and parts of the central and western Keno silver district and includes eight high-grade, shallow past-producing mines. Prior to the Company’s consolidation of the land package, very little modern exploration had been completed in these parts of the district due to fragmented, private land ownership. Metallic Minerals has advanced four targets in the district from discovery to resource definition stage with several additional targets at drill-ready status along the known historically productive trends. In addition, recent exploration has defined and expanded 12 priority multi-kilometer-scale early-stage targets for reconnaissance drilling in the under-explored parts of the district where highly elevated silver, lead and zinc in soils and high-grade rock samples have been identified.
About Metallic Minerals
Metallic Minerals Corp. is a leading exploration and development stage company focused on copper, silver, gold, and other critical minerals in the La Plata mining district in Colorado, and silver and gold in the high-grade Keno Hill and Klondike districts of the Yukon. Our objective is to create shareholder value through a systematic, entrepreneurial approach to making exploration discoveries, growing resources, and advancing projects toward development.
The Company’s 100%-owned La Plata project in southwestern Colorado hosts a porphyry copper-silver resource consisting of 1.21 billion pounds of copper and 17.6 Moz of silver4. Drilling in 2022 provided the basis for the expanded 2023 resource estimate, including the longest and highest-grade interval ever encountered at La Plata and one of the top intersections for any North American copper project in the past several years. In May 2023, the Company announced a 9.5% strategic investment by Newcrest Mining Limited (acquired by Newmont Mining in Q4 2023) to fund the current 2023 drill campaign and accelerate the overall advancement of the project. Colorado ranked 5th globally for investment attractiveness and 2nd in the USA in the Fraser Institute’s 2023 Annual Survey of Mining Companies.
Metallic Minerals has consolidated a 176 square kilometer land position directly adjacent to Hecla Mining’s operations in the historic high-grade Keno Hill silver district of Canada’s Yukon Territory, a region which has more than 300 Moz of high-grade silver in past production and current M&I resources. Hecla Mining, the largest primary silver producer in the USA and third largest in the world, is anticipating full production at its Keno Hill operations by the end of 2023. Metallic Minerals is targeting release of an inaugural mineral resource estimate on the Keno Silver project in Q4 2023, with an expansion drill program completed in September.
The Company is also one of the largest holders of alluvial gold claims in the Yukon and is building a production royalty business by partnering with experienced mining operators, including Parker Schnabel of Little Flake Mining from the Discovery Channel television show, Gold Rush.
All of the districts in which Metallic Minerals operates have seen significant mineral production and have existing infrastructure, including power and road access. The Company is led by a team with a track record of discovery and exploration success on several major precious and base metal deposits in the region, as well as having large-scale development, permitting and project financing expertise. The Metallic Minerals team has been recognized for its environmental stewardship practices and is committed to responsible and sustainable resource development.
Cathro, R. J., Great Mining Camps of Canada 1. The History and Geology of the Keno Hill Silver Camp, Yukon Territory. Geoscience Canada, Sept. 2006. ISSN 1911-4850.
Alexco Resource Corp Technical Report, titled “NI 43-101 Technical Report on Updated Mineral Resource and Reserve Estimate of the Keno Hill Silver District” with an effective date of April 1, 2021 and issue date of May 26, 2021.
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, statements about expected results of operations, royalties, cash flows, financial position and future dividends as well as financial position, prospects, and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. Although Metallic 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, unsuccessful operations, 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 Company with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration, development of mines and mining operations is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic 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.
Vancouver, British Columbia–(Newsfile Corp. – October 24, 2023) – Riverside Resources Inc.(TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) (“Riverside” or the “Company”), Riverside is pleased to announce that it has acquired part of the Mount Grace Carbonatite known to host Rare Earth Elements (“REEs”). The Company continues to expand its presence in British Columbia adding this a prospective REE project to its critical metals’ portfolio. The Company has staked 2538 ha. (25 km²) of terrain that hosts carbonatites mapped by the British Columbia Geologic Survey and confirmed by subsequent explorers. The Project has been named “Revel” and is located 20 km from the community of Seymour Arm within a highly prospective carbonatite belt north of Revelstoke, BC. The Project is 100% owned by Riverside with no underlying royalties or encumbrances.
Rare Earth Elements, or REEs, have become important metals worldwide as countries race to usher in a green economy, with less reliance on fossil fuels and more reliance on electrical grids and EV’s. Most countries have begun protecting these elements and listing them as strategic or critical, acknowledging the importance of these metals to future economic growth and even sovereignty. Canada and particularly BC have geological environments that host several different types of rare earth element deposits. REE carbonatites are discrete layers of either of material being depositing on the surface during volcanic activity or intrusive layers of magma injected between layers of existing rock. At Revel the property has high values of niobium and light rare earth elements similar to those found and mined in the USA at Mountain Pass. Revel geology with carbonatite has both intrusive and volcanic styles of REE with the Company’s mapping and on-going sampling shown below and on the website site.
John-Mark Staude, President and CEO, commented on the recent acquisition: “we are excited to have acquired Revel, a quality REE project with no underlying royalties or encumbrances in a geologically prospective area within a stable political jurisdiction. The new Project compliments Riverside’s growing portfolio in British Columbia and positions the company well in this rapidly evolving space. Recent announcements by the Canadian government signal that Canada is serious about securing a steady and stable supply of critical elements within its borders and the Revel acquisition is part of the Company’s diversification expanding corporate strategy.”
Revel Project Geological Summary:
The claims are partly located on Mount Grace on the northeast margin of Frenchman Cap Gneiss Dome comprising part of the Shuswap Metamorphic Terrain. These core gneisses are overlain by allochthonous cover rocks which host both extrusive and intrusive carbonatites and are part of the Monashee cover sequence. The property is centred on the Mount Grace syncline which is a northwest trending isoclinal fold. The allochthonous rocks comprise a succession of pure quartzites, feldspathic quartzites and mica schists above this basal unit lies a series of pelitic schist, marble, calc-silicate paragneiss and the Mount Grace Carbonatite layer. This provides both intrusive and volcanic units that are targeted for REE concentrations and discovery potential making possible broad and easily traceable host units which could rapidly develop substantial tonnages.
The map and cross section below modified from the work of the BC Geological Survey, Hoy and others, for the carbonatite and Rare Earth Element target geologic units is shown below and more extensively on the Company website. The regional map shows the Revel claim areas in the regional context with other known REE locations as part of a north-south trending belt which where the Company has been working.
Figure 1. Regional location map of the Mount Grace Carbonatite and other REE locations superimposed on geologic quadrangle map from Hoy and Kwong (1986).
Figure 2. Map with the Revel mineral claims on the Mount Grace Carbonatite from Hoy and Kwong (1986) with location of target Carbonatite horizon shown in blue and Riverside claim areas marked in red.
Mount Grace and surrounding area was first mapped by government geologists where two types of carbonatites were identified. Type I intrusive carbonatites were noted to have a metasomatized contacts being conformable to the bedding within their metasedimentary host rocks, and commonly contacting either a syenite or nepheline syenite gneiss. Conversely Type II extrusive carbonatites, believed to be of volcanic origin and lacking any kind of metasomatic boundary, were linked with the occurrence of a prominent marble horizon that was stratigraphically above the carbonatite bodies and used as a regional marker (McMillan and Moore, 1974). Later mapping of the Mount Grace area by Hoy and McMillan (1979) revealed that the discontinuous extrusive carbonatites of the Perry River area were likely related to the extrusive Mount Grace Carbonatite, which has a lateral extent of over 60 km. A study by Hoy and Kwong (1986) revealed that the Mount Grace carbonatite is strongly enriched in the elements barium, manganese, and strontium, with high concentrations of niobium, lanthanum, neodymium and cerium relative to other carbonatites of its nature.
Figure 3. Cross sections for the Mount Grace Carbonatite from Hoy and Kwong (1986) with location of target Carbonatite horizon shown in blue and Riverside claim areas marked in black arrows. Refer to the legend in Figure 2 above for rock descriptions.
In 1983, Duval International Corporation conducted a geological and geochemical survey in the area that led to the discovery of the Ren carbonatite, south of Mount Grace; samples of the Ren carbonatite rendered anomalous values of niobium, cerium and lanthanum (Pilcher, 1983). Teck Exploration Ltd. carried out further work on carbonatites at Ratchford Creek in 1987, which included trenching and silt, rock, and soil sampling programs as well as radiometric and magnetic surveys (Betmanis and Lovang, 1988). Results from Teck’s program indicated anomalous values of niobium and light rare earth elements. At the present, these carbonatite exposures and associated alkaline rocks are contiguously staked by the Company along the western margin of the Frenchman Cap gneiss dome providing a guide for delineating the system so far.
In the early 2010’s field work in the project area found more well-defined carbonatite and in 2018 exploration work located zones of layered and also intrusive carbonatite which during the 2023 field season Riverside was able to work up and sample.
Qualified Person:
This news release was reviewed and approved by Freeman Smith, P.Geo., a non-independent qualified person to Riverside Resources, who is responsible for ensuring that the geologic information provided within this news release is accurate and who acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Riverside Resources Inc.:
Riverside is a well-funded exploration company driven by value generation and discovery. The Company has over $7M in cash, no debt and less than 75M shares outstanding with a strong portfolio of gold-silver and copper assets and royalties in North America. Riverside has extensive experience and knowledge operating in Mexico and Canada and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has properties available for option, with information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
“John-Mark Staude”
Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude President, CEO Riverside Resources Inc. info@rivres.com Phone: (778) 327-6671 Fax: (778) 327-6675 Web: www.rivres.com
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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.
Edmonton, Alberta–(Newsfile Corp. – October 23, 2023) – Grizzly Discoveries Inc. (TSXV: GZD) (FSE: G6H) (OTCQB: GZDIF) (“Grizzly” or the “Company”) is pleased to announce that it has engaged Matthews Investments Ltd. to provide capital market consulting services to the Company.
The Company has entered into an agreement (the “Agreement”) with Matthews Investments Ltd. (“Matthews”) whereby Matthews will provide capital market consulting services to the Company for consideration including the issuance of 250,000 stock options under the Company’s Stock Option Plan with a strike price of $0.09 per option and expiring no later than five years from the date of issuance. In addition, Matthews will be compensated for a) any completed merger or acquisition transaction with a party introduced by Matthews within 2 years from the commencement of the Agreement and b) for any successful financing transaction with parties introduced to the Company by Matthews, at a rate of 5% of the total transaction value. The stock options to be granted to Matthews and transaction referral fees are subject to approval or acceptance by the TSX Venture Exchange.
Matthews Investments Ltd. is a consulting firm with a history of advising private and public companies through their growth initiatives. With a focus on extractable commodities and energy, Matthews engages its’ vast network of industry professionals to help companies establish an effective blueprint for corporate success.
Rich Matthews, principal of Matthews Investments Ltd., is a highly experienced capital markets advisor with a strong background in the resource sector, serving at the executive and board levels. His experience includes business development and capital markets expertise across multiple countries. Rich has worked for public companies, including award-winning Fission Uranium Corp, advising CEO’s and Board of Director members, while liaising directly with investors and stakeholders. Mr. Matthews is currently Director of Matthews Investments Ltd, Vancouver, BC, and Managing Partner at Integrous Communications LLC, Austin, Texas.
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 72,000 ha (approximately 178,500 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
Suite 363-9768 170 Street NW Edmonton, Alberta T5T 5L4
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 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.
For the latest standardized performance and holdings of the Sprott Energy Transition ETFs, please visit the individual website pages: SETM, LITP, URNM, URNJ, COPJ and NIKL. Past performance is no guarantee of future results.
Key Takeaways
Solar panels have emerged as a critical player in transitioning to clean, sustainable and secure energy sources.
Among numerous advantages, solar has one of the lowest megawatt-per-hour (MWh) costs among energy sources, a small environmental impact and a long life expectancy.
Evolving solar panel technology is driving a surge in demand for silver, which has unique properties that play a vital role in improving solar cell efficiency and performance.
Solar panel needs could exert considerable pressure on the silver market in the next decade, dramatically causing demand to outpace primary supply.
The Nasdaq Sprott Energy Transition Materials Index rose modestly in September, boosted by surging uranium prices, which overrode weakness in other energy transition materials.
The Nasdaq Sprott Energy Transition Materials Index (NSETM) increased 2.42% in September to close the month at 983.45. For the nine months ending September 30, the Index returned 5.31%.Uranium’s performance helped the energy transition complex close higher in September.
September witnessed a wide dispersion of returns. For example, spot uranium surged 21%3 to a 12-year high, and uranium miners jumped 24%.9 Year to date, spot uranium and uranium miners have both returned over 50%. For most of the year, uranium had firming fundamental support from several sources, including utilities contracting U3O8, growing supply concerns, and long-term growth projections that were revised higher (see Uranium Rally Gains Power in September).
Despite market stresses, these uranium surges helped the energy transition complex close higher in September. Other metal groups in the energy transition complex came under further downward pressure from a combination of factors, including continuing weak China data, concurrent rapid rises in the U.S. dollar (USD) and real yields, and fears of slowing future demand.
The equity market faced increased challenges in September due to a stronger USD, worries about increased debt issuance and deficits, rising real yields and widening economic disparities between the U.S., China and the EU. Weakness in significant currencies such as the yen (due to the Bank of Japan’s yield curve control policy) and the yuan (due to China’s economic and credit problems) continue to boost the USD but create currency risk elsewhere. Countries with weak currencies that cannot afford further depreciation are straining under the higher rates needed to defend their currencies. The other option for currency support — selling foreign exchange reserves — becomes a de facto liquidity drain. The spike in crude oil prices adds to the risk by draining reserves and increasing growth concerns, particularly in the already fragile Chinese and EU economies.
Real yields have reached 15-year highs at an alarming pace, further tightening financial conditions. Historically, simultaneous increases in the USD, real yields and crude oil prices have detrimentally impacted risk assets. Yet, as seen in Figure 1, the Nasdaq Sprott Energy Transition Materials Index remains unfazed.
Figure 1. Nasdaq Sprott Energy Transition Materials Index Still Consolidating (2018-2023)
Source: Bloomberg. Nasdaq Sprott Energy Transition Materials Index (NSETM). Data as of 9/30/2023. Top Half of Chart: Red line indicates bottom level support; blue line indicates trend over time. Bottom Half of Chart: Moving average convergence/divergence is a trend-following momentum indicator that shows the relationship between two exponential moving averages (EMAs, red and black lines), calculated by subtracting the 26-period EMA from the 12-period EMA. Included for illustrative purposes only. Past performance is no guarantee of future results.
Updates on Critical Materials
Lithium: Soft Demand Undermines Prices
The lithium carbonate spot price continued its descent in September, falling 17.79% over the month to $10.35 per pound (see Figure 2). China dominates global demand for lithium and, in the past, has exhibited seasonality, with more demand in the fourth quarter and restocking ahead of this peak season. Restocking has not materialized this year, and short-term weakness in Chinese electric vehicle (EV) demand has weighed on prices. However, despite the steep decline in the lithium spot price since its November 2022 high, prices are still much higher than their historical levels (for example, in late 2020, the lithium spot price was below $3 per pound).The U.S. has recognized the need for massive investment in U.S. lithium production. The DOE’s loan program is another potential tailwind for lithium miners…
The transport sector accounted for 76% of lithium demand in 2022 (according to BloombergNEF), and China accounted for 58% of EV sales, with six million EVs sold. Because of this, the current weakness in China has had a significant impact on commodity prices. However, the U.S., which is the second largest seller of EVs with just under one million sold in 2022, has not experienced the same weakness in demand as China in 2023. U.S. EV sales data released in September show multiple positive developments. Based on preliminary Q3 reports, U.S. EV sales in 2023 have already passed the one million mark for the first time.16 U.S. EV battery sales are experiencing exponential growth. While it took a decade to achieve the first cumulative million in sales, it took just two years for the second million and a mere year for the third million.17
In September, stocks of lithium miners fell by 8.31% as the lithium spot price dropped. Other factors weighed on capital-intensive sectors, including hawkish U.S. monetary policy sentiment, the strong USD and weak Chinese economic data. Although the lithium spot price drop has reduced miners’ margins, they are still profitable at current prices. Lithium mining equities have been a more attractive investment than lithium itself because of the rise in announced offtake agreements, direct equity investments by original equipment manufacturers into lithium miners, merger and acquisition (M&A) activity and grants and loans provided to miners by the U.S. Department of Energy (DOE).
With regard to M&A activity in September, Sigma Lithium Corporation received proposals to sell the company, with details yet to be disclosed publicly.18 This followed the events of early September when Liontown Resources Limited’s share price jumped 11.50% as its board backed a refreshed A$6.6 billion takeover bid from Albemarle Corporation, the world’s largest lithium producer.19
The U.S. has recognized the need for massive investment in U.S. lithium production. The DOE’s loan program is another potential tailwind for lithium miners and is supporting several lithium development projects in the U.S. Lithium Americas Corp. reported in September that it was in talks with the U.S. Department of Energy (DOE) for a $1 billion loan for its Nevada project.20 If the DOE funding goes through, it will represent nearly half the project’s $2.27 billion budget and be the first of its kind. The DOE gave Ioneer Ltd (a lithium and boron miner) a $700 million loan in January 2023.21 Albemarle Corporation received a $90 million grant from the U.S. Department of Defense in September to raise domestic output at its Kings Mountain lithium mine (for which the DOE also gave a $150 million grant in 2022 to fund construction).22
Figure 2. Lithium Continues to Decline (2018-2023)
Source: Bloomberg. Lithium carbonate spot price, $/lb, 2018-2023. Data as of 9/30/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
Copper: Strong Dollar Weighs on Market
The copper spot price fell 2.28% to $3.73 per pound in September (see Figure 3), and shares of copper miners fell 3.31%. The U.S. Federal Reserve signaled that rates would stay higher for longer in September, which raised bond yields and took the USD to its highest level since November 2022. These developments challenged global markets, including copper.
Copper has a strong negative correlation with the USD (-0.58 correlation coefficient over the last five years). The copper spot price has been largely range-bound over the previous five months, falling on disappointing economic data from China and rising on the potential of Chinese stimulus. China accounts for approximately 50% of global refined copper demand, and China’s manufacturing and construction sectors have been weak. This directly contrasts expectations at the start of the year when markets believed China’s post-COVID reopening would boost these sectors.
Despite this activity, copper has managed to avert the larger year-to-date drawdowns in other metals markets. We believe this is due to favorable demand fundamentals and uncertain supply. Chilean state-owned copper miner Codelco recently reduced its guidance for copper production to the lowest in 25 years. Chile is the world’s largest copper producer, with 27% of the global market in 2022. In Peru — the second-largest copper producer with 11% of the global market — the head of the country’s National Society of Mining, Petroleum and Energy, Victor Gobitz, indicated that Peru’s copper production would likely flatten in the new year due to a slowdown in investment.
On a positive note, supportive tailwinds may be created by these negative developments and global supply impediments (like declining ore grades, fewer major copper discoveries and long lead times of 16.5 years from discovery to first production). Nearly 70% of all copper produced is used in electrical applications,23 making copper critical to the energy transition. Energy transition-related demand for copper is slated to increase nearly four fold by 2040 relative to 202224 to meet net-zero carbon emissions targets.
Source: Bloomberg. Copper spot price, $/lb, 2018-2023. Data as of 9/30/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
Nickel: Negative Macro Factors Weaken Price
The nickel spot price fell 8.20% in September (see Figure 4), and shares of nickel miners fell 4.08%. Over this year, rising supply from Indonesia — the world’s largest nickel producer at 48% of global production — has weighed on the nickel market.25 In September, there was some reprieve as Indonesia announced it would not approve any new mining quotas for the remainder of the year.26 (Indonesian miners are issued annual production and sales quotas, referred to as RKAB.) The announcement caused increased short-term nickel demand from the Indonesian midstream; however, the nickel price still fell on negative macroeconomic developments.
Figure 4. Nickel Soft on Economic Uncertainty (2018-2023)
Source: Bloomberg. Nickel spot price, $/lb. 2018-2023. Data as of 9/30/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
Solar and Silver: Twin Pillars of Energy Transition
1. Solar Leads the Drive to Clean Energy
As the world progresses along the energy transition curve, the rapid expansion of solar photovoltaic (PV) technology is a key constituent. Solar panels have emerged as a critical player in transitioning to clean, sustainable, secure energy sources.
Solar PV panels harness sunlight and convert it to electricity. The panels’ core component is the solar cell, typically made from crystalline silicon. When sunlight strikes the solar cell, it excites electrons, creating an electric current. Solar panels dominate in energy transition because of their numerous advantages. They produce clean energy at one of the lowest megawatt-per-hour costs compared to conventional energy sources (see Figure 5). Once installed, solar panels have a low environmental impact and a long life expectancy (25+ years) with minimal maintenance.
The International Energy Agency (IEA) forecasts that solar energy capacity will grow faster than any other energy source on a cumulative global basis (see Figure 6). With the cost of renewable electricity now lower than fossil fuels, solar is expected to account for 98% of the expansion in global electricity capacity over the IEA’s forecast period through 2030.
Figure 5. Solar and Wind Cost Less (2014-2023)
Figure 6. Solar Set to Dominate Installed Capacity (2010-2030)
Source: International Energy Agency, “Net Zero Roadmap, 2023 Update”. Forecasts made under the Net Zero Emissions by 2050 Scenario. Included for illustrative purposes only. Past performance is no guarantee of future results.
From 2020 to 2030, solar capacity additions are expected to grow at a robust annualized rate of approximately 17% globally, according to BloombergNEF (see Figure 7). Cumulative solar PV capacity is forecast to expand by over five fold with almost 5,000 GW in new additions, surpassing natural gas and coal by mid-decade. However, there are challenges ahead as the energy transition process evolves.
Figure 7. Global Trends in Solar Demand and Supply (2020-2030)
Source: BloombergNEF. Data as of 9/30/2023. Included for illustrative purposes only. Past performance is no guarantee of future results.
China Controls Solar Supply Chains
China currently plays a central role in global solar PV supply chains, with about 80%27 of market share across all stages of solar panel manufacturing. This dominance results from strategic government policies, massive investments exceeding $50 billion since 201128 and continuous innovation. The scale achieved has significantly lowered solar PV costs, making clean energy more affordable worldwide.
China’s solar PV products are an important export, contributing significantly to the country’s trade surplus. Furthermore, Chinese investments in neighboring countries have transformed them into major exporters of PV products. (At the same time, concerns persist about the environmental impact of solar PV manufacturing in China, as much of the energy used in the process comes from coal-fired power plants.)
Despite the growth of solar PV, challenges loom large, particularly regarding the concentration of supply chains. Manufacturing capacity for crucial components like polysilicon, ingots, wafers, cells and modules must double by 2030 to increase solar PV capacity. However, the high concentration of production in China, especially in Xinjiang province, raises concerns about resilience, affordability and sustainability.
Furthermore, the demand for critical minerals in solar PV production, primarily controlled by China, is expected to surge as the world moves toward net-zero emissions. Ensuring the long-term financial stability of the solar PV manufacturing sector is essential for a rapid and cost-effective clean energy transition. Trade restrictions, such as tariffs and import duties, pose additional challenges. These measures risk disrupting the supply chain and slowing down the deployment of solar PV in regions outside of China.
Diversifying Solar PV Supply
Diversification of supply chains is essential to reduce vulnerabilities and unlock economic and environmental opportunities. Recent global events, including COVID-related supply chain issues and geopolitical conflicts, have underscored the risks of relying heavily on imports for critical goods like energy components.
The solar PV industry presents an opportunity for diversification, with the potential for global investment exceeding $120 billion by 2030.29 This would require doubling current annual investment levels throughout the supply chain, especially in critical sectors like polysilicon, ingots and wafers. Additionally, diversification would create jobs, potentially doubling the number of direct manufacturing jobs to one million by 2030.30
2. Why Silver is Critical to Solar Panel Technology
As the solar industry continues its exponential growth, silver is experiencing a surge in demand, driven primarily by the evolving technology of solar panels. Silver’s unique properties, including its exceptional electrical conductivity, thermal efficiency and optical reflectivity, play a vital role in enhancing the efficiency and performance of solar cells. Solar panels rely on silver for several critical components, including the front contact fingers, busbars and soldering of solar cells. These components ensure the electricity generated by the solar cells flows efficiently and maximizes energy conversion efficiencies.
The Limits of Efficiency
Over the past decade, there has been a noticeable reduction in the silver intensity of solar panels, as measured by the amount of silver required per kilowatt of solar panel capacity. This reduction signifies a trend toward more efficient utilization of silver in solar cells, but it is starting to reach its limits.Overall demand for industrial silver continues to grow due to the relentless expansion of the renewable energy sector.
Silver’s unmatched conductive properties make substitution difficult without a drop in energy efficiency. It is becoming more challenging to increase efficiency while reducing silver loadings. Silver boasts the lowest electrical resistance among all metals at standard temperatures, meaning substitutes cannot match its energy output per panel. Any savings achieved through substitution might be offset by the increased number of panels needed to match capacity. Technological advancements, not substitution, are the most likely way to reduce the need for silver.
The solar industry’s demand for silver is tied to advancements in solar panel technology. In the past, silver paste served as a conductive layer on the front and back of silicon solar cells. However, evolving cell designs now use larger amounts of silver. Solar silver demand as a percent of total silver demand is forecast to rise from 5% in 2014 to approximately 14% in 2023 (see Figure 8). Using BloombergNEF’s estimate of 12 tonnes of silver demand per gigawatt of solar capacity, silver demand for solar panels could increase by almost 169% by 2030 to roughly 273 million ounces, or about one-fifth of total silver demand based on trend projections.
Source: Silver Institute (World Silver Survey 2023), BloombergNEF, IEA. Included for illustrative purposes only. Past performance is no guarantee of future results.
Seeking Silver Substitutes
Solar’s rapid growth and the near-inelastic demand for silver present a substantial challenge to silver supply. Primary silver production has stagnated over the past decade, exacerbating the issue. Moreover, around 80% of silver supply is a by-product of lead, zinc, copper and gold production. The scarcity of primary silver mines and the reluctance of miners to invest in new base metal projects mean that higher silver prices are an insufficient catalyst to boost mine output. Consequently, a supply strain is anticipated, and we expect to see sizeable negative market balances for the next several years.
Silver paste represents a substantial portion of production costs in solar cells, approximately 10%.31 Manufacturers actively seek solutions to reduce silver usage and alternatives such as multi-busbar/zero-busbar designs and other metals like copper. However, the adoption rate for these alternative metals remains limited due to their relatively high production costs, technical hurdles and the inevitable loss of efficiency, given silver’s unmatched conductivity. While these alternative metals hold promise, widespread adoption will likely occur after silver prices spike.
Expect Silver Demand to Keep Growing
Most forecasts of photovoltaic (PV) capacity point to significant growth in the solar market. Given silver’s critical role in solar cell production, this escalating demand may exert considerable pressure on the silver market, dramatically causing demand to outpace primary supply. It is true that while the solar industry dominates the discussion, demand for silver is not thriving in all industrial sectors. The uncertain global economic outlook has negatively impacted the electronics and home appliance sectors and reduced silver’s use in construction. However, overall demand for industrial silver continues to grow due to the relentless expansion of the renewable energy sector.
Despite the adverse market stresses, the energy transition complex closed higher due to a massive surge in spot uranium and uranium equities. For most of the year, uranium had firming fundamental support from the utilities contracting U3O8, building supply concerns, and LT growth projections being revised higher.
A complex mix of rising USD, yields, and oil prices have increased risk and drained systematic market liquidity. Concerns on debt issuance, deficits, fiscal policies, govt shutdowns, labor strife, etc. have all led to sharp spike in long-end yields.
Source: Bloomberg and Sprott Asset Management LP. Data as of 9/29/2023. Past performance is no guarantee of future results. Included for illustrative purposes only. You cannot invest directly in an index.
For the latest standardized performance of the Sprott Energy Transition ETFs, please visit the individual website pages: SETM, LITP, URNM, URNJ, COPJ and NIKL. Past performance is no guarantee of future results.
1
The Nasdaq Sprott Energy Transition Materials™ Index (NSETM™) is designed to track the performance of a selection of global securities in the energy transition materials industry, and was co-developed by Nasdaq® and Sprott Asset Management LP.
2
The Nasdaq Sprott Lithium Miners™ Index (NSLITP™) is designed to track the performance of a selection of global securities in the lithium industry, including lithium producers, developers and explorers; the Index was co-developed by Nasdaq® and Sprott Asset Management LP.
3
The North Shore Global Uranium Mining Index (URNMX) is designed to track the performance of companies that devote at least 50% of their assets to the uranium mining industry, which may include mining, exploration, development and production of uranium, or holding physical uranium, owning uranium royalties or engaging in other non-mining activities that support the uranium mining industry.
4
The Solactive Global Copper Miners Index includes international companies active in exploration, mining and/or refining of copper. The index includes a minimum of 20 and a maximum of 40 members. The calculation is done in USD as a total return index. Index adjustments are carried out semi-annually.
5
Nasdaq Sprott Nickel Miners™ Index (NSNIKL™) is designed to track the performance of a selection of global securities in the nickel industry.
6
Nasdaq Sprott Junior Copper Miners™ Index (NSCOPJ™) is designed to track the performance of mid-, small- and micro-cap companies in copper-mining related businesses.
7
Nasdaq Sprott Junior Uranium Miners™ Index (NSURNJ™) is designed to track the performance of mid-, small- and micro-cap companies in uranium-mining related businesses.
8
The lithium carbonate spot price is measured by the China Lithium Carbonate 99.5% DEL. Source Bloomberg and Asian Metal Inc. Ticker L4CNMJGO AMTL Index. Data converted to pounds and to USD with Bloomberg FX Rates.
9
The U3O8 uranium spot price is measured by a proprietary composite of U3O8 spot prices from UxC, S&P Platts and Numerco.
10
The copper spot price is measured by the LME Copper Cash ($). Source Bloomberg ticker LMCADY. Data converted to pounds.
11
The nickel spot price is measured by the LME Nickel Cash ($). Source Bloomberg ticker LMNIDY. Data converted to pounds.
12
The S&P 500 or Standard & Poor’s 500 Total Return Index is a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
13
The U.S. Dollar Index (USDX, DXY) is an index of the value of the U.S. dollar relative to a basket of foreign currencies.
14
The Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index that tracks prices of futures contracts on physical commodities, and is designed to minimize concentration in any one commodity or sector. It currently has 23 commodity futures in six sectors.
15
The S&P Metals & Mining Select Industry Index comprises stocks in the S&P Total Market Index that are classified in the GICS metals & mining sub-industry.
Please Note: The term “pure-play” relates directly to the exposure that the Funds have to the total universe of investable, publicly listed securities in the investment strategy.
Important Disclosures
The Sprott Funds Trust is made up of the following ETFs (“Funds”): Sprott Gold Miners ETF (SGDM), Sprott Junior Gold Miners ETF (SGDJ), Sprott Energy Transition Materials ETF (SETM), Sprott Lithium Miners ETF (LITP), Sprott Uranium Miners ETF (URNM), Sprott Junior Uranium Miners ETF (URNJ), Sprott Junior Copper Miners ETF (COPJ) and Sprott Nickel Miners ETF (NIKL). Before investing, you should consider each Fund’s investment objectives, risks, charges and expenses. Each Fund’s prospectus contains this and other information about the Fund and should be read carefully before investing.
Investors in these Funds should be willing to accept a high degree of volatility in the price of the Funds’ shares and the possibility of significant losses. An investment in the Funds involves a substantial degree of risk. The Funds are not suitable for all investors. The Funds are non-diversified and can invest a more significant portion of assets in securities of individual issuers than diversified funds. As a result, changes in a single investment’s market value could cause more significant share price fluctuation than in diversified funds.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV) and are not individually redeemed from the Fund.Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. “Authorized participants” may trade directly with the Fund, typically in blocks of 10,000 shares.
Funds that emphasize investments in small-/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of experiencing investment losses. ETFs are considered to have continuous liquidity because they allow for an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Nasdaq®, Nasdaq Sprott Energy Transition Materials™ Index, Nasdaq Sprott Lithium Miners™ Index, Nasdaq Sprott Junior Uranium Miners™ Index, Nasdaq Sprott Junior Copper Miners™ Index, Nasdaq Sprott Nickel Miners™ Index, NSETM™, NSLITP™ , NSURNJ™, NSCOPJ™ and NSNIKL™ are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Sprott Asset Management LP. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).
Sprott Asset Management USA, Inc. is the Adviser to the Sprott ETF. Sprott Asset Management LP is the Sponsor of the Fund. ALPS Distributors, Inc. is the Distributor for the Sprott Funds Trust and is a registered broker-dealer and FINRA Member.
ALPS Distributors, Inc. is not affiliated with Sprott Asset Management LP.
Paul Wong, CFA, Market Strategist Paul has held several roles at Sprott, including Senior Portfolio Manager. He has more than 30 years of investment experience, specializing in investment analysis for natural resources investments. He is a trained geologist and CFA holder.
Jacob White, CFA ETF Product Manager, Sprott Asset Management LP
ST. LOUIS, Oct. 12, 2023 /PRNewswire/ — On Thursday, October 26, 2023, Peabody (NYSE: BTU) will announce results for the quarter ended September 30, 2023. A conference call with management is scheduled for 10 a.m. CT on Thursday, October 26, 2023.
Instructions for the conference call participation and accessing a replay, as well as other investor data will be available at PeabodyEnergy.com prior to the call.
Participants may also access the call using the following phone numbers:
U.S. Toll Free 1 833 816 1387 Canada Toll Free 1 866 284 3684 International Toll 1 412 317 0480
Peabody (NYSE: BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com.
